THE NEW ZEALAND OFFICIAL YEAR-BOOK, 1986-87

Acknowledgements

This publication was produced in the Information Services Division of the Department of Statistics.

Assistant Government Statistician: G. E. Dickinson.

Director: K. W. Eddy.

Senior Section Officer: L. J. Collins.

Editors: K. M. Carson, J. H. Macdonald.

Graphic Designer: P. J. McGrath.

Photograph Editor: J. R. Hames.

NEW ZEALAND OFFICIAL YEARBOOK

CAT. NO. 01.001

ISSN 0078-0170


Table of Contents

List of Tables

Preface

This 91st edition of the New Zealand Official Yearbook has been re-formatted and improved so as to increase its usefulness to readers. Several chapters have been rewritten and the layout has been altered to make items of information easier to find.

As a general reference work in the form of a printed book the Yearbook complements the other components in the integrated information service provided by the Department of Statistics. Ninety three years after the Yearbook was first published in 1893 the main objective is still the traditional one. The Yearbook still aims at giving an authoritative overview of New Zealand. It introduces general readers, both in New Zealand and overseas, to the social, economic, and cultural life, and the institutions, of New Zealand. For specialist users it contains relevant basic statistics and reference material, and also gives guidance to sources of further information. In preparing the latest edition there has been a concentration on enhancing the Yearbook's quality and effectiveness in reaching these objectives.

A great deal of detailed information about many aspects of New Zealand life is available today in addition to that in the New Zealand Official Yearbook. Information users in business, education, central and local government, special interest groups, and the public at large are now more sophisticated in their requirements. Changes in technology mean that up-to-date information is often available more quickly, and in more depth, through media other than the printed page. The Department of Statistics operates INFOS, an on-line computerised statistical information service, and produces information on microfiche and computer readable media, as well as producing a wide range of conventional printed publications which deal with specific topics in detail.

The New Zealand Official Yearbook is prepared and edited in the Department of Statistics mainly from contributions provided by other Government departments and official organisations. I would like to thank all copy contributors, departmental editorial staff, and the Government Printing Office for their excellent work in the preparation and production of the 91st edition.

S. Kuzmicich,GOVERNMENT STATISTICIAN

Wellington,September 1986.

Department of Statistics

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Further information

Table of Contents

This edition of the New Zealand Official Yearbook gives the latest information available on 1 January 1986, although some items may be more recent. When the sources of data on topics outside the Department of Statistics, the Yearbook identifies them. Enquiries for more details, or later information about those topics should go to the sources mentioned.

Every chapter in the Yearbook finishes with a section which lists titles containing further information. At the back of the book there is a reading list “Books about New Zealand”. There is also a list of some publications issued by the Department of Statistics at the back of the book and the Department will send you its full Publications Catalogue free on request.

Symbols

The following symbols are used throughout:

xrevised figure or figures.
-nil or zero.
. .figures not available.
  not yet available—space left blank.
not applicable.
..amount too small to be expressed.
Pprovisional

Rounding

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

The 1981 Census of Population and Dwellings statistics contained in this publication have been subject to a process of random rounding, whereby all cell values, including row and column totals, have been rounded. Individual figures will therefore not necessarily sum to give the stated totals.

Weights and measures, and a Glossary of statistical terms used, are given at the back of the book.

Chapter 1. 1 Geography

1.1 The physical setting

New Zealand lies in the south-west Pacific Ocean and consists of 2 main, and a number of smaller islands, whose combined area of 268 000 square kilometres is similar to the size of Japan or the British Isles.

The main North and South Islands are separated by Cook Strait, which is relatively narrow. They lie on an axis running from north-east to south-west, except for the low-lying Northland peninsula. The administrative boundaries of New Zealand extend from 33 degrees to 53 degrees south latitude, and from 162 degrees east to 173 degrees west longitude. In addition to the main and nearby islands, New Zealand also includes the following small inhabited outlying islands: the Chatham Islands, 850 kilometres east of Christchurch; Raoul Island in the Kermadec Group, 930 kilometres north east of the Bay of Islands; and Campbell Island, 590 kilometres south of Stewart Island. New Zealand also has jurisdiction over the territories of Tokelau and the Ross Dependency, which are described in chapter 4.

Table 1.1. LAND AREA OF NEW ZEALAND*

 SquareKilometres

* As at 11 March 1986.

Includes the islands comprising Great Barrier Island County and Waiheke County.

Source: Department of Lands and Survey.

North Island114,669
Nearby islands69
South Island149,883
Nearby islands4
Stewart Island1,746
Chatham Islands963
Outlying islands778
                    Total268 112

New Zealand is more than 1600 kilometres long and 450 kilometres wide at its widest part, and has a long coastline for its area. The coast is very indented in places, providing natural harbours.

New Zealand is also very mountainous, with less than a quarter of the land below 200 metres. In the North Island the main ranges run generally south-west, parallel to the coast, from East Cape to Cook Strait, with further ranges and 4 volcanic peaks to the north-west. The South Island is much more mountainous than the North Island. A massive mountain chain, the Southern Alps, runs almost the length of the island. There are many outlying ranges to the Southern Alps in the north, and the south-west of the South Island. There are at least 223 named peaks higher than 2300 metres. There are also 360 glaciers in the Southern Alps. The largest are, on the east, the Tasman (length 29 kilometres), Murchison (17 kilometres), Mueller (13 kilometres), Godley (13 kilometres) and the Hooker (11 kilometres), and, on the west, the Fox (15 kilometres) and the Franz Josef (13 kilometres).

Table 1.2. PRINCIPAL MOUNTAINS

Mountain or PeakHeight (metres)

* Since 1985 both the Maori and European names of this mountain have had official recognition.

† Peaks over 3000 metres.

Source: Department of Lands and Survey.

North Island—
     Ruapehu2,797
     Taranaki, or Egmont*2,518
     Ngauruhoe2,290
     Tongariro1968
South Island†—
Southern Alps
     Cook3,764
     Tasman3,497
     Dampier3,440
     Silberhorn3,279
     Lendenfeldt3,201
     Mt Hicks (St David's Dome)3,183
     Torres3,163
     Teicheimann3,160
     Sefton3,157
     Malte Brun3,155
     Haast3,138
     Elie de Beaumont3,117
     Douglas Peak3,085
     La Perouse3,079
     Heidinger3,066
     Minarets3,055
     Aspiring3,027
     Glacier Peak3,007

New Zealand's rivers are mainly swift and difficult to navigate. They are important as sources of hydro-electric power and many artificial lakes have been created as part of major hydro-electric schemes. New Zealand also has numerous natural lakes of great scenic beauty.

Table 1.3. PRINCIPAL RIVERS*

RiverLength (kilometres)

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

Source: Department of Lands and Survey.

North Island—
Flowing into the Pacific Ocean
     Waihou175
     Rangitaiki193
     Mohaka172
     Ngaruroro154
Flowing into the Tasman Sea
     Manawatu182
     Rangitikei241
     Whangaehu161
     Wanganui290
     Mokau158
     Waikato425
South Island—
Flowing into Cook Strait
     Wairau169
Flowing into the Pacific Ocean
     Clarence209
     Waiau-uha169
     Waimakariri161
     Waitaki209
     Taieri288
     Clutha322
Flowing into Foveaux Strait
     Mataura240
     Oreti203
     Waiau217
Flowing into the Tasman Sea
     Buller177

Table 1.4. PRINCIPAL LAKES*

LakeArea Square Kilometres

* Over 20 square kilometres in area.

Source: Department of Lands and Survey.

North Island—
     Taupo606
     Rotorua80
     Rotoiti34
     Tarawera36
     Waikaremoana54
     Wairarapa80
South Island—
     Rotoroa23
     Brunner39
     Coleridge36
     Tekapo88
     Pukaki169
     Ohau61
     Hawea141
     Wanaka193
     Wakatipu293
     Te Anau344
     Manapouri142
     Monowai31
     Hauroko71
     Poteriteri47
     Ellesmere181
     Aviemore (artificial)29
     Mahinerangi (artificial)21
     Benmore (artificial)75

1.2 Geology

New Zealand lies in an area of the world that is characterised by active volcanoes and frequent earthquakes. The ring of fire, as this area is known, forms a belt that surrounds the Pacific Ocean and is the surface expression of a series of boundaries between the plates that make up the surface of the earth. Plate tectonics is a theory that is used to explain the fundamental geological features of the earth. According to the theory the crust of the earth is made up of a series of plates, rather like a jigsaw puzzle. Although these surface plates are rigid, the rocks of the underlying layer of the earth, its upper mantle, are partially molten. This provides the convection mechanism for movement of the overlying plates. Over millions of years these plates have moved in relation to each other, colliding together, pulling apart, or sometimes sliding past each other. Because the boundary between the Indian-Australian plate and the Pacific plate runs through New Zealand, the processes resulting from their collision have had a profound effect on New Zealand's geology. When 2 plates collide, one is pushed beneath the other in a process known as subduction. The zones of subduction are defined by 2 deep sea trenches to the north and south of New Zealand, which are connected by the Alpine Fault. The size, shape and geology of New Zealand reflects the long process of construction and deformation along this plate boundary.

Rock types. The interplay of earth movements and erosion has created the sedimentary rocks that cover almost three-quarters of New Zealand. With erosion of the land, sand, mud, gravel and other debris was carried out to sea, where it accumulated in great thicknesses to form rocks such as sandstone, mudstone, greywacke and conglomerate. The shells and skeletons of sea creatures also accumulated and formed thick layers of limestone. Most sedimentary rocks are formed in near horizontal layers called strata. Earth movements later raised the rocks above the sea to form land, and the strata were in many places tilted and folded by pressure. Seas advanced and retreated over the New Zealand area many times and the sedimentary rocks represent almost every geological period since the Cambrian (see time scale). Their age is revealed by the fossils they contain as well as by various radioactive techniques.

As well as the sedimentary rocks of various ages, New Zealand incorporates in its complex structure metamorphic rocks, (schist, gneiss and marble) and intrusive igneous rocks, (granite, gabbro, diorite and serpentine). Many of these metamorphic and intrusive igneous rocks are hundreds of millions of years old. The metamorphic rocks were developed by the action of heat and pressure on the thick sediments (up to tens of thousands of metres) deposited in huge elongated sea basins (geoclines), which continued to sink as the deposits accumulated. When these sediments were slowly compressed during major mountain-building episodes the deeper sediments were subjected to great pressures and shearing stress, which caused new minerals and structures to develop, changing the sediments into metamorphic rocks. The granites and other intrusive rocks are characterised by large crystals, and have a course grained texture. They are usually considered to have intruded into the outer crust in a molten state during mountain-building; some, however, may result from intense metamorphism of sediments.

Volcanic rocks, (basalt, andesite, rhyolite and ignimbrite) are the products of many volcanic eruptions that have characterised New Zealand's geological history. The most recognisable volcanoes in New Zealand now occur in the North Island, where a number are active. They include those in Tongariro National Park, White Island and Mount Tarawera. Others such as Mount Taranaki (or Egmont), and Rangitoto may be considered dormant at present although they are still regarded as significant hazards. Sporadic episodes of volcanic activity have also occurred in the South Island with Timaru, Lyttelton, Oamaru and Dunedin ail having basaltic volcanoes less than 13 million years old.

Geological history. The oldest rocks in New Zealand are found in Nelson, Westland and Fiordland. They were formed in the Paleozoic era, most perhaps as long as 570 million years ago, but some in Westland may be older. They include thick, geoclinal sedimentary rocks which suggests that to yield the great volume of sediments a large landmass existed nearby at that time, 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 expensive geocline occupied the New Zealand region. At first, during much of the late Paleozoic, huge quantities of submarine lava and volcanic ash were included in the materials that accumulated in the geocline. In the later Permian and Mesozoic times the sediments were mainly sand and mud, probably derived from some landmass west of present New Zealand. These rocks have been compacted into hard greywacke (a type of sandstone), and argillite (hard, dark mudstone).

Table 1.5. GEOLOGICAL TIMESCALE

ErasPeriods Approximate Time Since Periods Began (Years)
Source: DSIR.
CenozoicHolocene (Recent)Quanternary10 thousand
Pleistocene2 million
PlioceneTertiary6 million
Miocene24 million
Oligocene38 million
Eocene53 million
Paleocene65 million
MesozoicCretaceous 135 million
Jurassic 190 million
Triassic 238 million
PaleozoicPermian 300 million
Carboniferous 350 million
Devonian 405 million
Silurian 435 million
Ordovician 500 million
Cambrian 570 million

In the early Cretaceous period one of the main mountain-building episodes in New Zealand's history took place. Although geoclinal sedimentation continued through the Cretaceous period in eastern New Zealand, elsewhere the geocline was compressed, and the sediments were intensely crumpled, broken and raised above the sea, probably forming a large, mountainous landmass. Some of the geoclinal sediments, now exposed over much of Otago, alpine Westland, and parts of the Marlborough Sounds, were metamorphosed into schist and gneiss by high temperatures and the tremendous deforming pressures to which the geocline was subjected. This intense folding of the strata occurred approximately 100 million years ago in the mid-Cretaceous period. Slowly the mountains were eroded and gradually a land of low relief was produced. The sea gradually advanced over the worn down stumps of the Mesozoic mountains, beginning its transgression earlier in some areas than in others. In the early Cretaceous period it began to submerge the 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 of these areas. At the close of the Mesozoic era, and in the very early Tertiary era, the land became so reduced in size that little sediment was formed, and only comparatively thin deposits of bentonitic and sulphurous muds, and fine, white foraminiferal limestone accumulated. During this time, 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 remnants of this Oligocene limestone are used for 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 were rapidly filled with sediments. New Zealand's late Tertiary environment has been described by Sir Charles Fleming (Tuatara, June 1962) as follows: “The pattern of folds, belts 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 margin seems to have gone on.” The thick deposits of soft grey sandstone and mudstone that now make up large areas of the North Island and some parts of the South Island, are the deposits that accumulated in the many sea basins that developed in the later Tertiary.

Recent geological history. Late in the Cenozoic era, in the Pliocene and Pleistocene periods, another great episode of mountain-building took place. Earth movements became intense, and slowly pushed up the Southern Alps and New Zealand's other main mountain chains. It was during this period that the general size and shape of the present islands of New Zealand was determined. 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 movement 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 both vertically and 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). From Milford Sound to Cook Strait, an almost unbroken depression, formed by river valleys, and low saddles on the intervening ridges marks the site of New Zealand's Alpine Fault. Contrasting rock types occur on either side of the fault. This is exemplified by the separation by 480 kilometres of a Permian ophiolite, an association of igneous rocks, which occurs in Nelson and Western Otago. 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 or offset ridges, or streams, show where the movement has been occurring over recent centuries.

Erosion has eaten into the landscape forms during this time, carving detailed pattern's of peaks, ridges, valleys and gorges. The deposition of the debris 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 late Pleistocene glaciers carved the fiords of Fiordland and the valleys occupied by most of the South Island lakes; there were small glaciers also on Ruaphehu, where remnants survive, on Mount Taranaki and the Tararua Range. Sea-level changes accompanied the formation and later melting of the glacial ice, affecting the erosion and deposition of the rivers and thus being responsible for the formation of many prominent river terraces.

Volcanic activity of the past few million years has played an important part in shaping the landscape. “Banks Peninsula, a twin volcanic dome in Canterbury, also achieved much of its growth then. The largest volcanic outpourings of late geological times in New Zealand has 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 volcanoes, Ruapehu, Tongariro, and Ngauruhoe. More than 8000 cubic kilometres of molten rhyolitic magma was erupted in the form of ignimbrite pumice and rhyolite lava, building up the Volcanic Plateau, which is one of the largest and youngest accumulations of acid volcanic rocks in the world. Mount Taranaki is an andesitic stratovolcano, with the remnants of 3 other volcanic cones nearby; all are of Pleistocene age. In the Waikato there are eroded Pleistocene cones of andesitic composition associated with a number of alkaline eruptive centres. The largest is Pirongia, a basaltic andesite cone some 900 metres high. Auckland city and the area just south has been the scene of many eruptions of basalt lava and scoria in Pleistocene and Holocene times, and many small scoria cones can be seen there. Late Tertiary and Quaternary basaltic eruptions in North Auckland have built lava plateaus and many young cones. From these volcanic outpourings some valuable mineral resources have been derived. The ironsands mined on the west coast of the North Island are concentrations of magnetite and ilmenite, which have been eroded out of the volcanic rocks.

1.3 Earthquakes

Compared with some other parts of the almost continuous belt of earthquake activity around the rim of the Pacific such as Japan, Chile, and the Philippines, the level of seismic activity in New Zealand is moderate, although earthquakes are common. 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, a shock of magnitude 7 or above once in 10 years, and a shock of about magnitude 8 perhaps once a century, but in historic times only 1 shock (the south-west Wairarapa earthquake in 1855) is known to have reached 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 256 deaths occurred, and the Buller earthquake of 1929 in which there were 17 deaths. The total resulting from all other shocks since 1840 is less than 15 deaths. The last earthquake to cause deaths occurred at Inangahua in 1968, when 3 people died.

The process of earthquake occurrence is understood in terms of a large volume of the Earth's crust being subjected to strain by the relentless movement of the great plates of the Earth's surface against each other. The strain eventually exceeds the strength of the rock, which ruptures. Energy is radiated outwards in the form of elastic waves, which can be felt at places near the origin, and detected by sensitive instruments at greater distances. In large shallow earthquakes the 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 of deeper activity, such as New Zealand, this is not so. There is little activity near the Alpine Fault, which stretches for some 500 kilometres from Milford Sound to Lake Rotoiti, and is considered one of the world's largest and most active faults.

Within New Zealand at least 2 separate systems of seismic activity can be distinguished. The Main Seismic Region covers the whole of the North Island except the Northland peninsula, and the part of 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 2 main islands, and extends eastwards from Banks Peninsula to include the Chatham Islands.

Shallow earthquakes, which are the most numerous, originate within the Earth's crust, which in New Zealand has an average thickness of some 35 kilometres. These shocks are responsible for almost all damage to property, and are widely scattered throughout the country. 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, which lies between them nor the Northern 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 geographical setting, and because of the distance to which the effects of a large earthquake extend, it would be highly imprudent to treat any part of New Zealand as completely 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 kilometres 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 is about 400 kilometres at the northern end, and decreases evenly to a depth of about 200 kilometres before the southern boundary of the region is reached. Along the whole of the system, there is also a regular decrease in 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 kilometres has also been recorded. In the Central Seismic Region only shallow shocks are known. The maximum depth of earthquakes appears to be less than 150 kilometres in the Fiordland Region where the deep activity is more concentrated than in the north, lying close to Lakes Te Anau and Manapouri.

Both earthquakes and volcanoes are found in geophysically disturbed regions, but large earthquakes are rare, although small earthquakes usually accompany volcanic eruptions. Regions of active volcanism are also subject to periodic outbreaks of small earthquakes, all of similar magnitude, and very numerous, 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 are rare in non-volcanic regions. In New Zealand they have occurred in the volcanic zone that includes Mount Ruapehu and White Island, the Coromandel Peninsula, parts of Northland, and Taranaki.

Earthquakes are recorded by more than 30 seismographs in New Zealand, and others throughout the south-west Pacific as far north as Western Samoa and south as the Antarctic. The network records small earthquakes in New Zealand and large earthquakes anywhere in the world. After analysing the records obtained, seismologists can not only determine the epicentres and focal depths of local earthquakes, but also, in supplying data to international data centres, make a valuable contribution to worldwide studies of earthquake occurrence, earthquake mechanism, and the structure of the Earth. The passage of earthquake waves through the Earth is the prime means of sounding its deep interior.

Seismological research in New Zealand falls into the following areas: Studies of the earthquake source and the process of earthquake occurrence (Details of the records produced by seismographs are used to infer the character of the rupture process at the earthquake source. These studies use not only locally recorded seismograms but also others from greater distances. The possibility of earthquake prediction is also being investigated.); The use of earthquakes as a tool to determine the structure of the Earth (Detailed maps of earthquake epicentres and vertical cross-sections of earthquake regions are used to infer the structure of the New Zealand area. Accurate measurements of the velocity of seismic waves provide constraints on this structure.); Estimation of the severity of the hazard presented by earthquake activity (The history of earthquake occurrence provides estimates of likely future activity, when analysed together with geological evidence of faulting. This estimate of hazard is done on both a national scale and for specific sites.); The use of earthquake recording equipment to detect underground nuclear explosions (The seismograph station in Rarotonga is well placed to record underground explosions at Mururoa in the Tuamotu Archipelago. Larger tests are also recorded in New Zealand. Yields are estimated on the basis of experience with previous tests.).

1.4 Climate

New Zealand lies in the mid-latitude zone of westerly winds, in the path of an irregular succession of anticyclones, which migrate eastwards every 6 to 7 days. The centres of these anticyclones generally track across the North Island, more northerly paths being followed in spring, and southerly paths in autumn and winter. Anticyclones are areas of descending air, and settled weather, with little or no rain, which may bring clear skies, or low cloud and fog. Between the anticyclones are troughs of low pressure, which extend northwards from low pressure depressions moving eastwards far to the south of New Zealand. Within these troughs there are often cold fronts, oriented northwest to south-east, which produce one of the commonest types of weather sequence over the country: as the front approaches from the west, north-westerly winds become stronger and cloud increases, followed by a period of rain for several hours as the front passes over, and then a change to cold showery south-westerly winds.

The presence of an axial mountain chain extending the length of the country has a major effect on the climate of its various regions, and produces much sharper climatic contrasts from west to east, than from north to south. In some inland areas of the South Island, just east of the mountains, the climate is distinctly 'continental' in character, with large daily and seasonal temperature extremes, despite the fact that no part of the country is more than 130 kilometres from the sea. Ophir in Central Otago has the greatest temperature range of 55°C.

Winds. The prevailing wind direction is westerly, although in individual months easterlies may predominate, and north of Taranaki the general flow is south-westerly. In the North Island winds generally decrease for a period in the summer or early autumn, but in many parts of the South Island July and August are the least windy months. The blocking effect of the mountain ranges modifies the westerly wind pattern. Wind strength decreases on the western side, but increases through Cook Strait. Foveaux Strait, and about the Manawatu Gorge. Air is also forced upwards over the ranges, which results in a warm drying (föhn) wind in the lee areas to the east of both islands. Wellington averages 173 days a year with wind gusts greater than about 60 kilometres per hour, compared with 30 for Rotorua, 31 for Timaru, and 35 for Nelson. Sea breezes are the predominant winds in summer in many coastal places, such as Canterbury, where the north-easterlies are almost as frequent as the predominant south-westerlies.

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 ranges from as little as 300 millimetres in a small area of Central Otago to over 8000 millimetres in the Southern Alps. The average for the whole country is high, but for the greater part lies between 600 and 1500 millimetres. The only areas with average rainfalls under 600 millimetres are found in the South Island to the east of the main ranges, and 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 millimetres a year. Of the remainder, much valuable farm land, chiefly in northern Taranaki and Northland, has upwards of 1500 millimetres. Over a considerable area of both islands rainfall exceeds 2500 millimetres a year. 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. However, 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. Rainfall is also influenced by seasonal variations in the strength of the westerly winds. Spring rainfall is increased west of, and in, the ranges as the westerlies rise to their maximum about October, with a complementary decrease of rainfall 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 130 rain days a year (days with at least 1.0 millimetre of rain)—except to the east of the ranges where in places there are fewer than 110 rain days. Those areas of the South Island with annual rainfall under 600 millimetres generally have about 80 rain days a year. In the far south the frequency of rain increases sharply, rain days exceeding 200 a year in Stewart Island and Fiordland. On the whole the seasonal rainfall does not vary greatly from year to year, its reliability in spring being particularly advantageous for agriculture. 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 millimetres, which occurred at Rapid Creek (Hokitika), where the mean annual rainfall exceeds 6000 millimetres.

Areas with a marked lower annual rainfall can be subject to very heavy daily falls: such areas are found in northern Hawke's Bay and north-eastern districts in the Auckland province. By contrast, in the Manawatu district, Otago, and Southland, daily falls reaching 80 millimetres are very rare.

Temperature. Mean temperatures at sea level decrease steadily southwards from 15°C in the far north to 12°C in the south of the South Island. Temperatures also drop, by about 2°C per 300 metres, with altitude. January and February, with approximately the same mean temperature, are the warmest months of the year, and July is the coldest. Highest temperatures are recorded east of the main ranges, where they exceed 30°C on a few afternoons in most summers. The extremes for New Zealand are 42°C. which has been recorded in 3 places, at Awatere Valley (Marlborough), Christchurch, and Rangiora (Canterbury); and —19°C at Ophir (Central Otago). The annual range of mean temperature (the difference between the mean temperature of the warmest and coldest months) is small. In Northland and in western districts of both islands it is about 8°C and for the remainder of the North Island and east coast districts of the South Island it is 9° to 10°C. Further inland the annual range 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.

Sunshine. The sunniest places are near Blenheim, the Nelson-Motueka area, and Whakatane, where the average duration of bright sunshine exceeds 2350 hours a year. The rest of the Bay of Plenty and Napier are only slightly less sunny. A large portion of the country has at least 2000 hours, and even Westland, despite its high rainfall, has 1800 hours. Southland and coastal Otago, where sunshine drops sharply to about 1700 hours a year, lie on the northern fringe of a broad zone of increasing cloudiness. A pleasant feature of the New Zealand climate is the high proportion of sunshine during the winter months, although there is a marked increase in cloudiness in the North Island in winter, but little seasonal change in the South Island, except in Southland.

Hail, thunderstorms, and tornadoes. The number of severe hailstorms reported annually over the whole country averages 9, but this figure varies yearly from 4 to 20. Severe hailstorms occur widely throughout the country, but the areas most affected are Canterbury, the low country of central Hawke's Bay, and a small area south and west of Nelson. Most of the hailstones are small, but occasionally larger stones cause local damage to glasshouses and orchards. Thunderstorms are not numerous. Their frequency is greatest in the north and western side of the country where thunder is heard on 15 to 20 days a year. On the east coast of the South Island the average is commonly less than 5. Tornadoes show a similar pattern to thunderstorms except maximum frequency occurs in the Waikato and Bay of Plenty. An average of about 20 tornadoes and waterspouts is reported each year, but most of these are small.

Frost and snow. Local variations in frostiness are considerable, even within quite small areas. For example, at Albert Park, Auckland, the screen minimum thermometer has registered below 0°C only once in 65 years, while further up the harbour at Whenuapai aerodrome there are on average 8 screen frosts per annum. Favourable sites in coastal areas of Northland are free of frost, although further inland light frosts occur frequently in the winter months. Excluding the uninhabited mountainous areas, the coldest winter conditions are experienced in Central Otago, the Mackenzie Plains of inland Canterbury, and on the central plateau of the North Island, but 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 in both Islands sheep and cattle remain in the open all year round.

The North Island has a small permanent snow field above 2500 metres on the central plateau, but the snow line rarely descends below 600 metres even for brief periods in winter. In the South Island snow falls on a few days a year in eastern coastal districts, where in some years it may lie for a day or two even at sea level, but in Westland it does not lie at sea level. The snow line on the Southern Alps is about 2000 metres in summer, being slightly lower on the western side where the Franz Josef and Fox Glaciers descend through heavy bush to within 300 metres of sea level. In inland Canterbury and Otago, where there are considerable areas of grazing lands above 300 metres, snowfalls are heavier and more persistent, and have caused serious sheep losses during severe winters. In that area, however, it is rare for the winter snow line to remain below 1000 metres for extended periods.

Relative humidity. Humidity is commonly between 70 and 80 percent in coastal areas and about 10 percent lower inland. The daily variation is greater than the difference between summer and winter. Very low humidity (from 30 percent down to 5 percent) occurs at times in the lee of the Southern Alps, where the föhn wind (the Canterbury nor-wester) is often very marked. 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 oppressive, although temperatures rarely reach 30°C. Dull, humid spells are generally not prolonged anywhere, but their frequency shows a marked increase in the south.

Table 1.6. SUMMARY OF CLIMATE OBSERVATIONS TO 1980, RAINFALL, FROST AND SUNSHINE

StationHeightRainfallScreen FrostGround FrostBright Sunshine
AnnualRain Days*

* A rain day is one when 1.0 mm or more of rain was recorded in the screen (at 1.3 metres above ground) falls below 0°C. thermometer (25 mm above short grass) reads −1.0°C or lower.

† A screen (or air) frost occurs when the temperature

‡ A ground frost occurs when the grass minimum

Source: New Zealand Meteorological Service.

 (metres)(mm) (no. days)(no. days)(hours)
Kaitaia Airport801,41813801.72,113
Kerikeri731,6821351.024.92,004
Dargaville201,2481495.016.81,956
Auckland (Albert Park)491,18514004.22,102
Tauranga Airport41,3491185.356.92,277
Hamilton (Ruakura)401,20113125.571.82,006
Rotorua Airport2871,49112321.256.9..
Gisborne Airport41,0581136.840.72,204
Taupo3761,17812237.171.42,021
Taumarunui1711,44314034.764.71,704
New Plymouth Airport271,5291442.012.82,165
Waiouru8231,04813765.1100.6..
Napier2824958.838.62,245
Wanganui229061153.510.72,087
Palmerston North (DSIR)3499512613.554.41,794
Masterton (Waingawa)11497112431.489.12,004
Wellington (Kelburn)1261,240125015.02,019
Nelson Airport29869937.789.72,397
Blenheim46428138.586.12,447
Westport Airport22,1921681.039.31,925
Hanmer Forest3871,16311481.7139.51,898
Christchurch76668735.788.71,974
Hokitika Airport392,78316816.056.41,846
Lake Tekapo68359772100.1175.82,217
Timaru175878137.987.81,869
Queenstown3298059250.3140.71,921
Alexandra1413436586.2154.02,064
Dunedin (Musselburgh)27841209.777.71,676
Gore7283613643.7100.21,698
Invercargill Airport0103715746.3111.11,621
Milford Sound36,26718228.556.1..

Table 1.7. SUMMARY OF CLIMATE OBSERVATIONS TO 1980, AIR TEMPERATURE

 Mean Daily*Daily MaximumDaily MinimumExtremes (annual)
JanuaryJulyJanuaryJulyJanuaryJulymax.min.

* The mean daily temperature is the average of the maximum and minimum temperature for a given day.

Source: New Zealand Meteorological Service.

 Degrees Celsius
Kaitaia Airport19.311.723.815.214.88.130.5-0.5
Kerikeri18.910.824.515.513.36.134.3-2.0
Dargaville18.610.723.414.913.76.532.1-5.0
Auckland (Albert Park)19.410.923.114.115.77.832.4-0.1
Tauranga Airport18.59.323.614.113.34.533.3-5.3
Hamilton (Ruakura)17.88.323.913.511.63.134.7-9.9
Rotorua Airport17.67.522.811.912.43.029.8-5.7
Gisborne Airport18.79.124.413.813.04.438.1-3.4
Taupo17.36,523.511.011.01.933.0-6.3
Taumarunui18.37.324.812.511.82.133.9-6.4
New Plymouth Airport17.19.121.413.012.75.330.3-2.4
Waiouru13.84.019.27.68.20.328.5-9.0
Napier18.99.023.813.414.14.635.8-3.9
Wanganui17.88.721.912.513.74.931.2-2.3
Palmerston North (DSIR)17.38.021.911.912.84.031,7-6.0
Masterton (Waingawa)17.37.123.711.810.82.435.2-6.9
Wellington (Kelburn)16.48.220.010.912.85.531.1-1.9
Nelson Airport17.26.521.911.912.51.136.3-6.6
Blenheim17.87.023.612.412.01.536.0-8.8
Westport Airport15.88.219.512.012.04.328.6−3.5
Hanmer Forest13.210.522.29.29.0−1.337.1-13.2
Christchurch16.65.921.510.311.61.441.6-7.1
Hokitika Airport15.37.219.211.711.42.727.5-3.2
Lake Tekapo14.81.621.36.08.3-2.833.3-15.6
Timaru16.25.321.49.811.00.737.2-6.8
Queenstown15.83.721.77.79.9-0.434.1-7.8
Alexandra17.02.623.27.310.7-2.237.2-11.7
Dunedin (Musselburgh)15.06.419.09.911.12.934.5-8.0
Gore15.04.620.99.19.20.235.0-8.9
Invercargill Airport13.75.118.49.48.90.832.2-7.4
Milford Sound14.45.418.59.310.31.528.3-4.9

1.5 Vegetation and wildlife

The vegetation and wildlife of New Zealand are the product of not only natural factors during tens of millions of years, but also human factors over the last 1000 years. The New Zealand landmass is a fragment of the ancient southern continent of Gondwanaland, which has been isolated for over 100 million years, allowing many ancient plants and animals to survive. Although New Zealand has undergone many physical and climatic changes, such as mountain building, volcanic activity, and glaciation, parts of the landmass have remained in continuous existence with part of their original complement of plants and animals.

New Zealand is now a very diverse land and changes from being almost subtropical (“winterless”) in the north, to cool temperate, even subantarctic in the south, with a very wet, mild climate in the west, and a much drier, sometimes almost continental climate, in the east. A long exceptionally diverse coastline with many islands, produces habitats for coastal and lowland plants and animals, and there are extensive montane and alpine habitats as well. Geological variation has allowed species to adapt to soils derived from limestone, volcanic rock, serpentine, alluvial gravels, and peat. Such diversity has led to New Zealand being classified into over 260 ecological districts, each with a distinct blend of topography, climate, vegetation, and wildlife. Superimposed on natural diversity has been 1000 years of human activity; harvesting of naturally occurring species, introduction of species from elsewhere, and transformation of natural vegetation into farmland by fire, logging, and drainage. While 80 percent was forested before humans arrived, only 23 percent of the land remains forested, mainly in the mountainous hinterland.

Bio-geographicelements. The vegetation and wildlife is made up of different bio-geographic elements. The Gondwanaland element, consists of ancient plants and animals: conifers such as kauri (Agathis australis), frogs (Leiopelma), reptiles like tuatara (Sphenodon punctatus), large ground snails (Powelliphanta), and birds such as the kiwi and the now extinct moa. A tropical element includes the nikau palm, kie kie (Freycenetia), tree ferns, many northern forest trees, tropical snails (Placostylis), and earthworms. An Australian element includes many ferns, orchids, small seeded tree species like manuka (Leptospermum scoparium), insects, and birds (such as the nectar-feeding tui, parakeets, and many wetland birds). A Pacific element includes trees like pohutukawa (Metrosideros excelsa), numerous ferns, and migratory birds like the shining cuckoo. A subantarctic or circumpolar element includes beech (Nothofagus), which occurs also in South America and Southern Australia and was once present on Antarctica, and several characteristically southern bird groups such as penguins, albatrosses, and petrels. A South American element includes Fuchsia. A cosmopolitan mountain element entered New Zealand along the mountain and island chain from South East Asia and includes plants such as buttercups, daisies, veronicas and gentians. A cultural element of recent human origin comes from all parts of the world particularly Europe, North America and Australia, and consists of trees, horticultural plants, weeds, mammals, birds, and many other groups.

Northern (subtropical), central (temperate), and southern (subantarctic) marine areas can also be recognised, each with characteristic species; for instance rock oyster, blue mussel and dredge oyster, respectively. Bull kelp is a notable southern species. Some very unusual marine animals occur, including black coral and ancient brachiopods in the southern fiords, and recently discovered sea daisies—starfish relatives which live on sunken wood at 1000 metres depth. The complex sea floor means that shore, continental shelf, and deep water species occur close together, resulting in diverse marine life.

Characteristics of vegetation and wildlife. Uniqueness is a feature of the natural life of New Zealand. Foremost is the absence, apart from 2 species of bat, of land mammals, which had not evolved at the time New Zealand became separate. Many flightless birds and insects have evolved. The most remarkable birds were some 12 species of moa, forest and shrub browsers, that took the place of large herbivores in other parts of the world. Moa became extinct during Maori times, but other flightless birds remain including kiwi, kakapo (a nocturnal parrot—the largest in the world), and weka (a scavenging rail). Flightless insects are numerous, including many large beetles and cricket-like weta. The absence of mammals also meant that birds became important as seed-dispersing agents, so that most forest plants bear small berries, including the giant conifers (Podocarps), the smaller canopy trees, and even some forest-floor herbs. Some alpine plants produce berries, dispersed by the New Zealand pipit and the kea (mountain parrot). As a consequence of the great physical and climatic upheavals which New Zealand has undergone the forest has been influenced by extinction. Coconut palms once occurred in New Zealand, and fossil remains of kauri, now limited to the northern North Island, have been found south to Canterbury. Some tropical plant groups are represented by a single species, surviving only on protected islands, or in the far north. Some, like Tecomanthe are known from only a single plant. Similarly, the range of bird species is very limited in comparison with other temperate land masses of similar size. The unique family of wattle birds contains only 4 species, one of these, the huia, is now extinct and considerable natural extinction seems likely. On the other hand, there has been great diversification among smaller life-forms, such as tiny forest-floor snails, spiders, aquatic caddis flies, lichens, mosses and liverworts. Of note is the diversity of alpine plants such as daisies (Celmisia, Senecio), veronica (Hebe), native carrot (Aciphylla) and buttercups. Many of these plants produce rosettes of large leaves, which seem to adapt the plants to cold, windy, subantarctic conditions in the relatively recently-formed high mountains. A second group of plants adapted to cold, windy conditions are cushion plants, some of which form remarkable mounds called “vegetable sheep”.

In the forest and along its margins divaricating shrubs occur with tangled and criss-crossed branches bearing tiny leaves. They sometimes represent the juvenile form of a typical adult tree, but more often are the adult itself. Nowhere else in the world is this peculiar growth form so abundant. It may be an adaptation to browsing by the now extinct moa, or it may help plants to adapt to cold or dry conditions.

Although many New Zealand plants and animals occupy very specialised habitats, frequent droughts, high winds, floods, and erosion mean that many species need to be highly adaptable. Many insects, such as native bees, gather food from a wide variety of sources, and some forest species, like beech, regenerate best after the parent forest has been destroyed. However, the overwhelming character of the wildlife is its dependence on forest, and its vulnerability to introduced predators such as rats. The forests and natural grasslands have been severely modified by introduced browsers such as possums, deer and goats. Some introduced plants, like marram grass, have taken over the places where native species would normally grow.

A vast proportion of the native animals and plant species are endemic and found only in New Zealand. Virtually all insects, spiders, snails and all earthworms are restricted to New Zealand, as are most birds and plants, most freshwater fish (27 species), and all reptiles (38 species).

Table 1.8. SELECTED GROUPS OF NATIVE AND INTRODUCED SPECIES

GroupNumber of speciesPercentage Endemic*
IntroducedNative

* Native species not found anywhere else.

† Estimated.

Source: Commission for the Environment.

Marine Algae (Seaweeds)390043
Bryophytes—
     Mosses1548528
     Liverworts..500..
Ferns and Allies2016341
Conifers3020100
Flowering Plants1 7001 81384
Earthworms40178100
Landsnails/Slugs1252099
Spiders/Harvestmen602 50090
Insects1 1009 46090
Freshwater Fish232785
Amphibia23100
Reptiles138100
Birds—
     Land/Freshwater336557
Mammals—
     Marine0346
     Land332100

Many figures in Table 1.8 are approximate and may change after future scientific investigation.

Forests. Apart from mountains above bush-line, swamps, coastal dunes, and some dry inland basins, 80 percent of New Zealand was orginally forest-covered. The forests were reduced by a third by Maori clearance before European settlement, and a further third by European clearance over the last 150 years, so that now only 23 percent of New Zealand remains in forest. Much occurs in mountainous areas, and most is now protected.

There is a wide range of natural forest types. Around the coast is a fragmented narrow band of salt tolerant plants including mangroves, nikau palm and mostly tropical pacific species, such as karaka and pohutukawa. Coastal forests are particularly important wildlife habitats for marine birds (for example various petrels and penguins), and offshore islands form refuges for tuatara, flightless insects and snails. The characteristic New Zealand forest type is warm temperate evergreen rain forest, in the far north this is dominated by kauri (Agathis australis) and various hardwoods though little forest remains. Swamp forest dominated by the podocarp kahikatea (Dacrycarpus dacrydioides) was once extensive, and remains prominent in western South Island. Elsewhere the podocarps (rimu, totara, matai, and miro) are associated with a diverse range of broad-leaved evergreen hardwoods, ferns, vines and epiphytes, forming dense and complex multi-storied communities. The species diversity gradually diminishes both with increasing altitude and increasing latitude. Evergreen beech forest is characteristic of the South Island generally above 300 metres altitude. These montane forests have fewer species than lowland forests, and extensive areas may be dominated by a single tree species. Bushline, usually of beech, is located generally between 1350 and 1500 metres.

A wide range of secondary forest types have developed since human arrival, notably kanuka forests east of the main divide, manuka and kanuka forests in northern New Zealand, and a range of broad-leaved hardwood and tree fern forest types on abandoned farmland.

Cool moist climates produce an abundance of ferns in New Zealand forests, not only giant tree ferns, but also filmy ferns which clothe tree trunks, and ground ferns.

Shrublands. Natural shrublands are rare and usually occur where soil or water factors restrict forest development, such as the margins of coastal estuaries and other wetlands, and rocky bluffs. Immediately above the bushline, a narrow band of diverse shrubland often occurs dominated by the heath Dracophyllum, shrub daisies, hebes, and alpine podocarps. The most extensive shrublands occur in once forested dryland of eastern New Zealand, where small-leaved sometimes spiny shrubs occur, notably matagouri (Discaria), tauhinu (Cassinia), and divaricating coprosmas. These shrublands are stages in the re-establishment of forest. Fernland, particularly bracken fern (Pteridium esculentum), once a staple Maori food, is very widespread throughout deforested New Zealand hill country. Like shrubland it serves as a nurse-bed for forest.

Wetlands. A rise in sea-level inundated coastal valleys formed during the ice-age. This created extensive estuaries, rich in worms, molluscs and eelgrass, which are important habitats for marine birds such as oyster-catchers. In the north the estuaries support dense groves of low mangroves, while elsewhere there are extensive rush, jointed-rush and sedge wetlands which are spawning grounds for whitebait or inanga (Galaxias species). The numerous rivers of New Zealand created extensive freshwater wetlands dominated by harakeke or flax (Phormium), raupo (Typha) and sedges. These have mostly been drained but are extensive in western South Island. Numerous small swamps and lakes have been formed to the lee of sand dunes deposited along western coasts by prevailing westerly winds. Lakes, swamps and bogs made by glaciers are features of the South Island high country.

Dune lands. Active erosion of the land has created extensive coastal sand deposits, which have mainly been stabilised by marram grass, pines and lupins, and few remain in their natural state. One threatened dune species is pingao, a sedge used for traditional Maori weaving.

Grasslands. When Europeans arrived in the nineteenth century much of the eastern South Island was covered by short tussock grassland or silver tussock and fescue, which had become established after Maori fires removed forests. Before the Maori the only naturally occurring lowland tussock was in the dry interior of Central Otago. Pastoral farming and introduced grasses have now largely destroyed short tussock grassland. However at higher altitudes, especially above the bushline, extensive areas of tall snow tussock (Chionochloa) occur.

Alpine vegetation. Large-leaved herbs, mat plants, and cushion plants occur throughout the tall tussocks, and in places dominate and form herb fields of great beauty in flower. Scree supports a range of specialised, often fleshy, drought-resistant plants. Alpine bluffs support a scattered cover of shrubs, herbs and cushion plants, adapted to extreme climate and sometimes possessing very strange form such as the coral shrub (Helichrysum) and the vegetable sheep (Raoulia).

Introduced vegetation and wildlife. The New Zealand landscape is now dominated by introduced animals and plants. Over 1500 exotic plants grow wild, some (like rye-grass, browntop, gorse and sweet briar), over large areas. Although introduced plants have seldom colonised extensive areas of native vegetation, wild animals (deer, pigs, goats, possums, stoats and rats) are widespread, and some introduced birds, such as blackbirds, occur everywhere. Urban vegetation is largely exotic and domestic stock dominate agricultural areas throughout the lowlands.

Introduced plants and animals have greatly increased the diversity of species in New Zealand. However their increase has been associated with a decrease in the area dominated by native species. Today a large number of native species are very rare and seldom seen. Some of these are ancient and stamp uniqueness on New Zealand as a living museum. Urgent measures are needed to ensure the healthy survival of this unique heritage of international importance.

1.6 Time

One uniform time is kept throughout New Zealand. This is the time 12 hours ahead of Co-ordinated Universal Time, and is named New Zealand Standard Time (N.Z.S.T.). It is an atomic standard, and is maintained by the New Zealand Time Service, DSIR. One hour of daylight saving, named New Zealand Daylight Time, which is 13 hours ahead of Universal Time, is generally introduced from 2 a.m. (N.Z.S.T.) on the last Sunday in October, until 2 a.m. (N.Z.S.T.) on the first Sunday in March next year. Time kept in the Chatham Islands is 45 minutes ahead of that kept in New Zealand.

Further information

Geography

New Zealand Atlas, ed. I. Ward. Government Printer 1976.

The Department of Lands and Survey produces and publishes a wide range of maps and charts, which are listed in its Catalogue of maps.

Geology

Searle, E. J. City of Volcanoes. 2nd edition Longman Paul, 1981.

Smith, I. E. M. (ed.) Late Cenozoic Volcanism In New Zealand. Bulletin 23, Royal Society of New Zealand. 1986.

Soons. J.; Selby. M. (eds.) Landforms of New Zealand. Longman Paul, 1982.

Speden, I. G.; Keyes, I. W. Illustrations of New Zealand Fossils. DSIR Information Series 150.

Stevens, G. R. Lands in Collision—Discovering New Zealand's Geography. DSIR Information Series 161.

Stevens, G. R. New Zealand Adrift: the theory of continental drift in a New Zealand setting. A. H. and A. W. Reed, 1980.

Stevens, G. R. Rugged Landscape. A. H. and A. W. Reed, 1974.

Suggate, R. P.; Stevens, G. R.; Te Punga, M. T.; (eds.) The Geology of New Zealand 2 vols. Government Printer, 1978.

Thornton, J. Field Guide to New Zealand Geology. Reed Methuen, 1985.

Volcanoes and the Earth's Interior—Readings from Scientific American. W. H. Freeman and Company, 1982.

Williams, G. J. Economic Geology of New Zealand. AusIMM Monograph Series 4, 1974.

Williams, K. Volcanoes of the South Wind—a field guide to the volcanoes and landscape of Tongariro National Park. Tongariro Natural History Society, 1985.

Climate

New Zealand Atlas, ed. I. Ward. Government Printer 1976.

An Encyclopedia of New Zealand, vol. 1, ed. A. H. McLintock, Government Printer 1966.

The New Zealand Gazette, Government Printer. (These list current monthly summaries of temperature, rainfall and sunshine for all climate stations, as the data comes to hand.)

Bibliography of New Zealand Meteorological Service Publications 1892-1985. Kathleen F. Johnson. N.Z. Met. Serv., 1986.

The Meteorological Service publishes monthly summaries of:

Climate Observations (Misc. Pub. 109) and Rainfall Observations (Misc. Pub. 110) annually; Climate Observations which are updated every 10 years, e.g. 1980 (Misc. Pub. 177); Rainfall Normals (averages) for 30-year periods, e.g. 1951-1980 (Misc. Pub. 185); Sunshine Normals (averages) for 30-year periods, e.g. 1951-1980 (Misc. Pub. 186); and Temperature Normals (averages) for 30-year periods, e.g. 1951-1980 (Misc. Pub. 183). The service also produces regional climatologies (Misc. Pub. 115), maps and many other publications.

Vegetation and wildlife

Enting, Brian and. Molloy, Les. The Ancient Islands. Port Nicholson Press 1982.

Kuschel, G. (ed.): Biogeography and ecology in New Zealand. W. Junk. 1975.

Salmon, J. J. 1980: The Native Trees of New Zealand. Reed Methuen. 1980.

Stevens, Graeme. Lands in collision—discovering New Zealand's past geography. DSIR. 1985.

Chapter 2. 2 History

The early history of the people of New Zealand and the coming of the Maoris is shrouded in myth and based on orally-transmitted traditions. It is difficult to establish the period when the voyages of the Polynesian people to New Zealand began. Tradition has it that the first voyager to visit New Zealand was Kupe in about 950 A.D., and according to some Maori tribes it was he who named the land Aotearoa (“land of the long white cloud”). Finding no other inhabitants Kupe returned to Hawaiki, the legendary homeland of the Maori. Following his return there were various waves of migration to New Zealand, and the names of the canoes and of their captains and crews are still remembered by the Maoris and are important features of their history and genealogy.

Linguistic and other evidence indicates that Hawaiki was situated in Eastern Polynesia, which makes their voyages impressive and bears testimony to the sophistication of their vessels and navigation.

From the people of each canoe arose tribal groupings claiming common descent and symbolic unity. About 10 major tribes evolved, divided into many subtribes. All tribes can claim their ancestry back to members of one or more of the canoes, and many of the more familiar canoes such as Aotea, Te Arawa, Tainui, and Takitimu have become synonymous today with tribal groupings and territories.

The Maoris mainly confined themselves to the warmer North Island and the population was organised into descent groups of different scale—iwi (tribes), hapu (subtribes), and whanau (extended families). The main themes in this society were mana (prestige), tapu (sacredness) and utu (the principle of equal return, often expressed in revenge).

The bases of Maori society have changed profoundly from the original subsistence economy in pre-European contact times.

The introduction of European disease 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, from the beginning of the twentieth century the Maori population has been rapidly increasing, and now forms 9 percent of the New Zealand population.

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 came 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 (then Lieutenant) James Cook sighted land on 7 October 1769 near Gisborne. Cook and a party of men from HMS 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.

First European settlements. Whaling stations sprang up along the New Zealand 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.

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 the pacification of warring tribes.

Early constitutional developments. On 29 January 1840 Captain William Hobson 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. 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 over the North Island by virtue of the Treaty of Waitangi, and over the South Island and Stewart Island by right of discovery.

The history of the present constitution dates back to the declaration of British sovereignty in 1840. The constitution is wholly Anglo-Saxon in its origin and takes no account of Maori custom and usage.

Since its signing the Treaty has remained a contentious issue. Maori grievances focus on the following points: the full implications of the Treaty were not explained at the time; the Maori translation of the Treaty was in parts misleading; and its promises have not been honoured.

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.

From 1840 until the grant of responsible government in 1856 the colony was subject to rule by the Governor. 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.

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 system of government was unitary however—the General Assembly could legislate in areas in which the provinces had jurisdiction and could amend or annul provincial ordinances. (The provincial system was abolished in 1875 and the Legislative Council in 1950.)

The 1852 Act constituted the governor as part of the General Assembly with the power to summon, prorogue, and dissolve it and to assent or refuse the assent to legislation passed by it. But the actual form of the executive government was omitted from the Act and left to the will of the governors and the Colonial Office.

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 advisers 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 growing hostilities between Pakeha and Maori. 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.

The appointment and tenure of the judges, and matters normally contained in a constitutional document were left in 1852 to be decided by ordinary legislation.

Colonisation. The first body of European 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 resourceful people seeking a better future than was offering in nineteenth century industrial England.

Founder 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 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 3801 in Wellington, 2895 in Auckland, 2500 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 people from Australia joining in the gold rush to Otago. Migration then dropped away until 1872 when there was a high inflow for several years from Britain under the Vogel policy of assisted immigration and public works development.

War over land. In 1845 warfare broke out between the races in the far north (and in 1846 in the southern North Island). The Colonial Office appointed Captain George Grey as Governor and provided 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 of Population 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 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. The war had died down by 1870 and during the term of Donald McLean as Native Minister some measure of reconciliation began. However, although a substantial portion of the confiscated land was subsequently purchased or returned, land transactions remained a source of bitterness and potential hostility between Maori and settler.

Public works and farm development. The absence of hostilities and the discovery of gold 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 and 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.

With the introduction of refrigeration in 1882 and steam navigation in the late nineteenth 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 the degree of specialisation to meet the needs of the British markets, which shaped the entire New Zealand economy during its first 100 years.

The depression of the 1880s, a consequence of a fall in world price levels, resulted in unemployment and substantial 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 on social justice.

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 introduced measures to strengthen the primary producer, of which the extension of rural credit was typical.

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 hydroelectric schemes and highways.

Land values rose steeply, accelerated by Government efforts to settle returned servicemen on the land, and between 1915 and 1925, 40 percent of the occupied land had changed hands. New Zealand was extremely vulnerable to the overseas price fluctuations of pastoral products. With the advent of the depression by 1930, farmers, despite greatly increased production, were faced with a serious decline in income (over 40 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 was formed in 1931 to meet the crisis. Partly as a result of measures taken by this government and partly as a result of a rise in overseas price levels a general economic revival was taking place by 1935. The election of a Labour Government, under the leadership of Michael Savage, in 1935 led to change in administrative policy and a renewed emphasis on social justice.

Agriculture. 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 Merino crosses 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 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 1397, 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.

War and post-war. 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 December 1935. It was succeeded by a National Government, under the leadership of Sidney Holland.

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. At the 1972 election the Labour Party swept back into power under Norman Kirk. Following Kirk's untimely death in 1974, W. E. (Bill) 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. The new Government faced growing economic difficulties and rising unemployment as a result of economic recession overseas, steep rises in oil prices, and the loss or shrinkage of traditional markets for agricultural products. At the 1978 election and again in 1981 the National Party retained power with greatly reduced majorities. In 1984 following a snap election the Labour Party gained power under the leadership of David Lange.

Manufacturing. 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 more opportunities developed 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 1840s followed by breweries, brick kilns, and 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 1870s, 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 a wider imposition of tariffs in 1888 when the home market was shrinking and capital and labour were beginning to leave the colony. Footwear and clothing factories, the manufacture of machinery, and metal industries were protected by this tariff. A wider protective Customs tariff was imposed in 1895. During the depressed years of the 1880s 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 dairy industries. Ten years after this first shipment, 21 meat-freezing works and 104 dairy 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 established itself as the predominant manufacturing province in New Zealand at an early stage, but in the general prosperity following the gold boom of the 1860s, there was a spectacular increase in manufacturing activity in Otago, which led Auckland until the 1890s. 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 expert 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-working, sheet-metal, and motor-vehicle industries had their beginnings.

Developments in the 1920s 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 dominant in value of production and employment compared with other types of industry.

During the depression of the 1930s the total volume of factory output declined with the contraction of New Zealand's export income and the drop in internal demand. While prices fell, the output of factories processing farm products rose, but not sufficiently to offset the loss in volume from other manufacturing industries. The rapid fall in purchasing power caused the farmer to produce more, but the impact of the depression on the factories processing “non-farm” materials meant a heavy reduction in the output of consumer goods, building materials, and agricultural and dairy machinery and implements. By 1934-35, however, the volume of factory production had been restored to the 1929-30 level.

Apart from metalworking and vehicle factories, which had improved their position significantly, industry emerged from the depression in much the same pattern as before.

The recovery of manufacturing after the depression was primarily the result of better export prices, more public development, and an expansionist monetary policy, all of which resulted in the re-engagement of most of the unemployed.

There had been little time for any protective effect of exchange control and import selection to stimulate industrial expansion between the date these measures were introduced (December 1938) and the outbreak of war in September 1939. It was the war and its shortages which changed the manufacturing pattern and gave great encouragement to industrial development. The engineering and apparel industries, which contributed so much to war needs, made the greatest progress.

Production expanded in response to the need to replace imports which 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.

In the period immediately after the war, development in the manufacturing sector continued steadily. Factory expansion was sustained by a high level of internal demand, by the production of new products, and by the continued restriction on the importation of a wide range of goods. In the years following, the volume of production in the food, footwear, 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 rubber industries. However the major contribution to the growth in manufacturing in this period came from the engineering sector. The expansion in this field was stimulated by increasing mechanisation on farms, high levels of investment, the rising demand for consumer durables, and the increased importation of motor vehicle components for assembly in New Zealand.

Later constitutional developments. Amendments to the 1852 Act stemming from political development reflect New Zealand's transition from colonial to fully-independent status within the period 1840-1973. In 1907, in recognition of an emerging sense of nationality and an increasing desire for self-reliance in political matters, New Zealand had been given the title of Dominion in lieu of Colony.

A further step in the evolution of New Zealand into full nationhood came in 1947, when New Zealand belatedly adopted the Statute of Westminster, which had been passed by the United Kingdom Parliament in 1931. The draft of this statute had been 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. Its operation in the latter self-governing members of the Commonwealth was declared to require specific adoption by the legislatures of those countries.

Some surviving doubts concerning the authority of the New Zealand Parliament over the Constitution were resolved when, at the request of the New Zealand Parliament, the United Kingdom Parliament passed a Constitution Amendment Act authorising the New Zealand Parliament to amend any of the provisions of the Constitution Act of 1852.

In 1950 the Prime Minister, Sidney Holland, initiated a constitutional change when the Legislative Council, the “second house” of the General Assembly, was abolished on the grounds that it no longer possessed any effective function.

2.1 Chronology of main events in New Zealand history

1350 (about) Traditional date of “Great Migration”, the arrival of 7 canoes bearing Maori settlers from the Pacific.

1642 European discovery of New Zealand by Tasman.

1769 James Cook's first visit to New Zealand.

1791 Discovery of Snares and Chatham Islands.

1792 First sealing gang left on New Zealand coast.

1814 Arrival of Rev. Samuel Marsden, and introduction of Christianity. Horses, cattle, sheep, and poultry first brought to New Zealand.

1820 Hongi's visit to England.

1823-28 Jurisdiction of Courts of Justice in New South Wales extended to British subjects in New Zealand.

1825 First attempt at colonisation, by an expedition under Captain Herd.

1827 Hongi's forces destroyed mission station at Whangaroa.

1831 Tory Channel whaling station established. Application of 13 chiefs for the protection of King William IV.

1833 James Busby appointed British Resident at Bay of Islands.

1834 Waimate Pa, near Opunake, shelled and captured by British—first occasion on which HM troops employed in New Zealand.

1835 Declaration of independence of the whole of New Zealand as one nation, with title of “United Tribes of New Zealand”. Ngati-Awa tribes migrated to and conquered Chatham Islands.

1838 Pelorus Sound discovered.

1839 Governor of New South Wales authorised to include within the limits of that colony any territory that might be acquired in sovereignty by Her Majesty in New Zealand. Preliminary expedition of New Zealand Company under Colonel Wakefield arrived at Port Nicholson.

1840 Arrival of New Zealand Company's settlers at Port Nicholson. Treaty of Waitangi signed. British sovereignty proclaimed. Captain Hobson appointed Lieutenant-Governor, with residence at Auckland. Settlements formed at Petre (Wanganui) and Akaroa.

1841 Issue of charter of incorporation of New Zealand Company. New Zealand proclaimed independent of New South Wales. Arrival of New Plymouth settlers.

1842 Settlement founded at Nelson.

1843 Affray with Maoris at Wairau.

1844 Royal flagstaff at Kororareka cut down by Heke.

1845 Destruction of Kororareka by Heke.

1846 Arrival of first steam vessel, HMS Driver, in New Zealand waters. Capture of pa at Ruapekapeka and termination of Heke's war. Maori hostilities near Wellington. Te Rauparaha captured and detained as a prisoner. New Zealand divided into 2 provinces, New Munster and New Ulster, and representative institutions conferred.

1847 Attack by Maoris on Wanganui.

1848 Suspension of that part of New Zealand Government Act which had conferred representative institutions. Otago founded.

1850 Surrender of New Zealand Company's charter, all its interests reverting to the Imperial Government. Canterbury founded.

1852 Discovery of gold at Coromandel. Constitution Act passed, granting representative institutions to New Zealand, and dividing country into 6 provinces.

1854 Opening at Auckland of first session of the General Assembly.

1855 First members elected to the House of Representatives under system of responsible Government. Very severe earthquake on both sides of Cook Strait.

1856 Appointment of first Ministry under system of responsible Government.

1857 Goldfield opened at Collingwood.

1858 New Provinces Act passed.

1860 Hostilities in Waitara district.

1861 Truce arranged with Waitara Maoris. Bank of New Zealand incorporated. Southland Province established. Gold discovery at Gabriel's Gully, Otago.

1862 Coromandel proclaimed a goldfield. Wreck of s.s. White Swan, with loss of many public records. First electric-telegraph line opened—Christchurch to Lyttelton.

1863 Wreck of HMS Orpheus on Manukau Bar, with loss of 181 lives. Control of Maori affairs transferred to Colonial Government. Commencement of Waikato War. Defeat of Maoris at Rangiriri, and occupation of Ngaruawahia. First railway in New Zealand, portion of Christchurch-Lyttelton line, opened.

1864 Severe fighting in Waikato and elsewhere, including battles of Rangiaowhia, Orakau, Gate Pa, and Te Ranga. First major discovery of gold on West Coast of South island.

1865 Seat of Government transferred to Wellington. Further fighting, followed by proclamation of peace. Activities of Hauhau, including murders of Europeans. Rebel Maoris defeated at Wairoa.

1866 Cook Strait submarine telegraph cable laid.

1867 Opening of Thames Goldfield. Lyttelton Tunnel completed. Admission of 4 Maori members to House of Representatives as direct representatives of Maori people.

1868 Maori prisoners, under leadership of Te Kooti, seized schooner Rifleman and escaped from Chatham Islands to mainland where they killed Europeans. Considerable fighting with these and other rebel Maoris.

1869 Continuation of fighting with rebels and pursuit of Te Kooti. Visit of H.R.H. the Duke of Edinburgh. Government Life Insurance Office established.

1870 Further fighting with Te Kooti. Last of Imperial troops left New Zealand. Commencement of San Francisco mail service. Possession taken of Bounty Island. Inauguration of Vogel public works policy. Act passed to establish the New Zealand University.

1871 Commencement of railway construction under public works policy.

1872 Resumption of friendly relations with Waitara Maoris. Appointment of Maori chiefs (2) to Legislative Council. Public Trust Office created.

1873 Establishment of New Zealand Shipping Co.

1874 In pursuance of immigration and public works policy, 31 774 assisted immigrants arrived.

1875 Resumption of amicable relations with Maori King. Establishment of Union Steam Ship Company.

1876 New Zealand connected by cable with Australia. Abolition of Provinces Act came into operation, provincial institutions being abolished and the country divided into counties and boroughs.

1877 Education Act passed, providing for free compulsory education.

1878 Completion of the Christchurch-Invercargill railway.

1879 Triennial Parliaments Act passed. Adult male suffrage introduced. Kaitangata coal mine explosion, with loss of 34 lives.

1881 Wreck of s.s. Tararua, with loss of 130 lives.

1882 First shipment of frozen meat from New Zealand.

1883 Direct steamer communication inaugurated between New Zealand and England. Te Kooti pardoned.

1886 Tarawera eruption, involving loss of 101 lives and destruction of Pink and White Terraces.

1887 Annexation of Kermadec Islands.

1888 British protectorate over Cook Islands proclaimed.

1890 Great maritime strike. First election of House of Representatives under one-man-one-vote principle.

1892 Introduction of lease-in-perpetuity system of land tenure.

1893 Franchise extended to women. Special liquor licensing poll introduced.

1894 Industrial Conciliation and Arbitration Act passed. Government Advances to Settlers Act passed. Wreck of s.s. Wairarapa, with loss of 135 lives.

1896 Brunner Mine explosion, causing 67 deaths. Abolition of non-residential or property qualification to vote. Government Valuation of Land Act passed.

1898 Old-age Pensions Act passed.

1899 Labour Day instituted. New Zealand army contingent (the first of 10) sent to Boer War in South Africa.

1901 Penny postage adopted by New Zealand. Cook and other Pacific islands annexed.

1902 Pacific cable opened. Wreck of s.s. Elingamite, with loss of 43 lives.

1903 Empire Day proclaimed. State Fire Insurance Act passed.

1905 Workers' Dwellings Act passed. Title of New Zealand's representative in London altered to “High Commissioner”.

1906 Death of Right Hon. R. J. Seddon, Premier. Advances to Workers Act passed.

1907 New Zealand constituted a Dominion. Lease-in-perpetuity system of land tenure abolished. Parliament Buildings destroyed by fire.

1908 Through railway communications established between Wellington and Auckland.

1909 S.s. Penguin wrecked in Cook Strait, with loss of 75 lives. Battle cruiser presented by New Zealand to Imperial Government. System of compulsory military training introduced.

1910 Public Debt Extinction Act and National Provident Fund Act passed.

1911 Wireless telegraphy installed in New Zealand. Widows' Pensions Act passed. First poll on national prohibition taken.

1912 Public Service placed under Commissioner Control.

1913 Extensive strikes.

1914 Western Samoa occupied by New Zealand Advance Expeditionary Force. Main Expeditionary Force left for Egypt. Huntly coal mine disaster, with loss of 43 lives.

1915 New Zealand Expeditionary Force engaged in operation on Gallipoli Peninsula. National Cabinet formed. Pensions for miners introduced.

1916 New Zealand Division transferred to Western Front, Mounted Brigade being retained in Egypt. Compulsory enrolment of men for war service introduced. Lake Coleridge electric-supply scheme opened.

1918 S.s. Wimmera sunk by enemy mine off New Zealand coast, with loss of 26 lives. Otira Tunnel pierced. End of First World War. Great influenza epidemic, causing nearly 7000 deaths.

1919 Women made eligible for seats in Parliament. New Zealand represented at Peace Conference by Right Hon. W. F. Massey, Prime Minister.

1920 Visit of H.R.H. the Prince of Wales. Railway strike. First aeroplane flight over Cook Strait. League of Nations gave New Zealand mandate to administer Western Samoa. Anzac Day constituted.

1921 Samoa Act passed, making provision for government in terms of mandate.

1922 Meat-export trade placed under control of a board.

1923 Opening of Otira Tunnel. Ross Dependency proclaimed, and placed under jurisdiction of Governor-General. Dairy Produce Export Control Act passed.

1924 Railway strike. Direct 2-way radio communication effected with England. Motor Vehicles Act provided for registration and annual licensing of motor vehicles. Pensions for blind persons introduced. S.s. Ripple foundered off Cape Palliser with loss of 16 lives.

1925 Administration of Tokelau (Union) Islands transferred to New Zealand.

1926 Family Allowances Act passed.

1928 Kingsford Smith and party made first successful flight across Tasman Sea.

1929 Severe earthquake in Murchison-Karamea district caused 17 deaths.

1930 Legislation providing for relief of unemployment first passed.

1931 Worst earthquake in history of New Zealand occurred in Hawke's Bay, resulting in the loss of 256 lives. General reduction of 10 percent in wages and salaries. Parliament approved draft Statute of Westminster. Mortgagors' relief legislation passed.

1932 Industrial Conciliation and Arbitration Amendment Act made important changes in industrial legislation. National Expenditure Adjustment Act made reductions in old-age and other pensions, in salaries of State employees, and in rentals, interest rates and other fixed charges. The historic Waitangi Estate presented to the nation by Their Excellencies Lord and Lady Bledisloe. New Zealand represented at Ottawa Conference.

1933 Exchange rate raised to £125 N.Z. for £100 London (Telegraphic transfers). Sales tax instituted. Conversion of internal public debt with reduction in interest rates, and provision made for local authorities interest reduction and loans conversion. Successful experimental shipments of chilled beef to England.

1934 First official trans-Tasman airmail. Reserve Bank incorporated and commenced business. First licensed air transport service commenced operations.

1935 Rural Mortgagors' Final Adjustment Act passed, and Court of Review established. Labour Government assumed office for first of 4 successive terms.

1936 Inauguration of inter-Island trunk air services. Reserve Bank nationalised. System of basic prices for butter and cheese introduced. Forty-hour week became operative. Powers of Court of Arbitration restored.

1938 Social Security Act passed. Introduction of import selection and control.

1939 Declaration of war with Germany. Recruitment for 2nd New Zealand Expeditionary Force. Arrangements for purchase of farm products by Britain.

1940 Departure of First Echelon of 2nd New Zealand Expeditionary Force. Death of the Prime Minister, the Right Hon. M. J. Savage; succeeded in office by Hon. P. Fraser. Declaration of war with Italy, RMS Niagara sunk off New Zealand coast by enemy mine.

1941 Declaration of war with Japan. Territorial Forces mobilised.

1942 Complete mobilisation of Military Forces ordered. Introduction of control of industrial manpower. Compulsory enrolment of all male British subjects between ages of 18 and 65 inclusive, in Emergency Reserve Corps. Lend-lease reciprocal aid extended to include Australia and New Zealand. Rationing introduced. Mobilisation of women for essential work.

1943 North African campaign brought to a successful conclusion. 2nd NZEF (3rd Division) took part in action against Japanese in the Pacific Area.

1944 Australia - New Zealand Agreement 1944, providing for collaboration on matters of mutual interest.

1945 War in Europe ended (8 May). War Cabinet dissolved. War in Pacific ended. Japan formally surrendered (15 August). South Island Main Trunk Railway opened, through rail connection from Picton to Bluff established.

1946 Family benefit of £1 per week made universal as from 1 April.

1947 Local Government Commission appointed. First woman Cabinet Minister in New Zealand appointed. Marketing of dairy produce taken over by Dairy Commission. Statute of Westminster adopted by New Zealand Parliament.

1948 Licensing Control Commission appointed. Adjustments of exchange rate to parity with sterling as from 20 August.

1949 Referendum agrees to compulsory military training.

1950 Control of land sales, except of farm land, lifted. Control of sterling funds and securities relaxed. Abolition of petrol and butter rationing. Legislative Council Abolition Act passed. K-force sailed from Wellington for Korea.

1951 Prolonged waterfront dispute. United States, Australia, and New Zealand signed Pacific Security Treaty.

1952 Accession of Queen Elizabeth II.

1953 Armistice agreement signed in Korea. New Zealand's worst railway disaster occurred at Tangiwai on Christmas Eve, with a death roll of 154 persons. Arrival of Her Majesty Queen Elizabeth the Second and His Royal Highness the Duke of Edinburgh, on 23 December, the first occasion on which a reigning monarch had visited New Zealand.

1954 The Executive Council and Cabinet held meetings at Auckland on 25 May to mark the centenary of parliamentary government in New Zealand. New Zealand signed the South East Asia Treaty at Manila.

1955 Pulp and paper mill at Kawerau began operation. Rimutaka rail tunnel opened for traffic in November.

1956 Roxburgh and Whakamaru power stations in operation. Colombo Plan Conference held in Wellington.

1957 New Zealand Antarctic Expedition established Scott Base at Pram Point, McMurdo Sound. Separate Court of Appeal constituted.

1958 Import selection and exchange allocation brought into force to conserve overseas exchange. PAYE taxation on incomes introduced. Power generated from geothermal steam at Wairakei and from coal station at Mercer.

1959 Auckland Harbour Bridge opened (May). Reconstructed Wellington Airport opened for traffic (July). Twelve nations, including New Zealand, signed treaty to preserve Antarctica for peaceful scientific research for all time.

1960 Government signed agreement for company to use power from Te Anau-Manapouri Lakes system for large aluminium smelting industry. Regular television programmes began in Auckland.

1961 Tasman Empire Airways became wholly owned by New Zealand (later renamed Air New Zealand). New Zealand joined International Monetary Fund, International Bank For Reconstruction and Development, and International Finance Corporation.

1962 Cook Strait rail-ferry service commenced with Aramoana. New Tasman cable link completed as part of Commonwealth Pacific cable.

1964 Three Cook Strait cables, each of 25 miles, laid as part of inter-Island transmission project. Oil refinery opened at Whangarei.

1965 Limited free trade agreement negotiated with Australia. Cook Islands became self-governing. Auckland International Airport came into use.

1966 Labour force reached 1 000 000. Licensed television sets reached 500 000. Collier Kaitawa sank off Cape Reinga with loss of 29 lives.

1967 Matahina electric power station brought into operation. Explosion at Strongman mine caused 19 deaths. Decimal currency introduced on 10 July ($2 equal to former unit of £).

1968 T.e.v. Wahine foundered in Wellington Harbour in severe storm with loss of 51 lives. Jet aircraft introduced in internal air services.

1969 Electric power generated from giant Manapouri project. Construction of aluminium smelter at Bluff commenced. First output from steel mill at Glenbrook. Oil strike offshore at Taranaki. Voting rights extended to 20-year-old persons.

1970 Natural gas from Kapuni supplied to Auckland.

1971 Negotiations by Britain with members of European Economic Community secure New Zealand's position by special arrangement for her butter and cheese exports to the United Kingdom; Britain decides to join EEC in 1973 and later signs Treaty of Accession. Major shipments of ironsand to Japan from Taranaki coast. Bluff aluminium smelter in commercial operation and first exports made. All 7 generators installed at Manapouri hydro-electric station. Natural gas reticulation to Wellington completed. Introduction of first steps of metric conversion for weights and measures.

1972 Containerised shipping service in operation from Auckland and Wellington to United Kingdom and Europe. Labour Government assumed office under Right Hon. N. E. Kirk.

1973 Britain joined European Economic Community. Wool Marketing Corporation established. Farm income equalisation scheme extended. Trade negotiations with China; embassy opened in Peking. New Zealand became member of Organisation for Economic Co-operation and Development (OECD). Agreement reached for development of Maui field of natural gas offshore from Taranaki. Timber and pulp mill opened at Whirinaki, Napier. New Zealand currency placed on “near float arrangement” of relationships with major trading partners. Colour television introduced. First step of Equal Pay Act in effect. New Zealand Shipping Corporation established. Construction of 100-megawatt Rangipo hydro-power station and 550-megawatt Huntly coal-fired power station approved.

1974 Tenth British Commonwealth Games held in Christchurch. New Plymouth thermal power station in operation. Fourth Cook Strait rail-ferry brought into service. Death of the Prime Minister, Right Hon. N. E. Kirk; succeeded in office by Right Hon. W. E. Rowling.

1975 Further Government participation in off-shore oil exploration announced. New trade deals established with Middle-East countries, Japan, and U.S.S.R. (Oct) Permanent stabilisation scheme for meat prices announced. Conversion of New Plymouth power station from oil to natural gas under way. National Government, under Right Hon. R. D. Muldoon, assumed office.

1976 In February, cuts in subsidies on electricity, rail charges, and Post Office charges. (Apr) Subsidies on bread, eggs, butter, and flour abolished. (Jul) Wool Income Stabilisation Scheme introduced. (Aug) Price and rent freeze until end of year introduced. New Zealand - Australia Free Trade Agreement extended for further 10 years. Controversy over New Zealand's sporting links with South Africa resulted in African nations walk-out at Olympic Games in Montreal. Storm caused severe flooding in Hutt Valley.

1977 The Queen and the Duke of Edinburgh visited New Zealand in February as part of the Silver Jubilee celebrations. New national superannuation scheme came into operation. New Zealand Planning Council formed. (Jun) Commonwealth Heads of Government Conference sponsored Gleneagles agreement on sporting contacts with South Africa. (Sep) Territorial Sea and Exclusive Economic Zone Act passed, establishing 200-mile-wide economic zone around New Zealand coast. (Oct) Act passed establishing Ministry of Energy, combining functions of Mines Department, Electricity Department, and Ministry of Energy Resources.

1978 Merger of New Zealand Wool Board and New Zealand Wool Marketing Corporation came into effect on 7 February. National Airways Corporation merged with Air New Zealand. Government approved programme for large-scale production of methanol from Maui gas by 1985-86 to cut oil imports. (Oct) Widespread floods in Southland. (Nov) National Party retains power at General Election with greatly reduced majority.

1979 (Apr) First stage of Maui gasfield development completed. Price control phased out over a wide range of commodities and services; replaced by price surveillance scheme. Severe landslip at Abbotsford. (Sep) Plans for Maui gas, including building of methanol plant, announced by Government. (Nov) Air New Zealand D.C. 10 crash on Mount Erebus in Antarctica, killing 257 passengers and crew. Twenty-fifth Commonwealth Conference held in Wellington.

1980 (Jan) Widespread flooding in Southland. New Zealand troops included in Zimbabwe peacekeeping force. (Mar) $500 million Eurodollar loan raised to finance a hydrocracker for expansion of Marsden Point oil refinery. Petrocorp given approval to build New Zealand's first methanol plant. (Apr) $600 million expansion of New Zealand Steel Ltd plant announced. (Oct) Remuneration Act repealed as part of 3-pronged wage policy agreement with Federation of Labour and Employers' Federation. Act passed legalising Saturday trading.

1981 (Apr) Butter deal concluded with EEC. Britain to import 94 000 tonnes of New Zealand butter in 1981, and 92 000 tonnes in 1982. (Jun) Government approved construction of oil pipeline between Marsden Point refinery and Auckland. Cost-of-living increase of 5 percent granted by Arbitration Court. (Jul-Aug) Controversial tour of New Zealand by South African rugby team. (Aug) N.Z. Dairy Board purchased 100 000 tonnes of surplus U.S. butter to prevent swamping of international butter market with surplus supplies. Crash of Silver Fern railcar resulted in 4 deaths and many injuries. (Oct) Major expansion of N.Z. Steel's plant approved. (Nov) General Election resulting in narrow victory for National Party. (Dec) Four-year trade deal on dairy products signed with U.S.S.R.

1982 (Jan) Government departments ordered to prune 3 percent from their budgets for 1982-83 financial year. (Feb) Contract for Motunui synthetic fuel plant signed. (Apr) Increased charges for postage, telephone rentals, state coal, electricity, and road user charges. Railway Department became New Zealand Railways Corporation. (Jun) Increases in motor vehicle fees and rail charges. Twelve-month wage, price, and rent freeze imposed from midnight 22 June. (Jun-Sep) Clyde dam controversy over water rights. Continued severe drought in Canterbury and North Otago. (Oct) EEC ministers agreed in principle to import quota of 87 000 tonnes of butter from New Zealand. Because of continuing market uncertainties, N.Z. Meat Producers Board announced it would buy all export lamb and mutton for expected period of 2 years. Plans for Aramoana aluminium smelter shelved indefinitely because of world glut of aluminium. (Nov) Australia and New Zealand reached final agreement on closer economic relations (CER), scheduled to be inaugurated on 1 January 1983. (Dec) Ammonia-urea plant at Kapuni commenced production.

1983 (Jan) First airfreight consignment of chilled New Zealand lamb sent to Britain. (Mar) Final signing

of Closer Economic Relations Agreement. New Zealand dollar devalued by 6 percent against all currencies. Introduction of Kiwi Savings Stock attracting 15 percent interest per annum. (Apr) New Zealand's triple A international credit rating reduced by Standard and Poor's Corporation. (May) Wage-Price Freeze extended until 29 February 1984. (Jun) Kiwi Savings Stock closed. (Jul) Official Information Act came into force. (Aug) Lending institutions slash interest rates on overdrafts, term loans and home mortgages. Second issue of Kiwi Savings Stock with interest rate of 10 percent per annum. (Nov) Regulations limiting interest rates on first mortgages on property to 11 percent, and subsequent mortgages to 14 percent imposed. Transport Amendment Act No. 2 introduced phased deregulation of land transport, and abolition of restrictions against competition with Railways Corporation. (Dec) Agreement to supply Iran with 140 000 tonnes of New Zealand lamb finalised. EEC ministers agree to import 13 833 tonnes of New Zealand butter for January and February 1984 until a decision is reached on a longer term arrangement. Industrial Relations Amendment Act abolished unqualified preference clause and introduced voluntary unionism from February 1984.

1984 (Jan) New Zealand Forest Products unsuccessfully renews its takeover bid for Wattie Industries, the biggest takeover bid in New Zealand's history. (Mar) Price freeze is lifted and the Government announces an $8 general wage increase. Bomb in Wellington's Trades Hall kills the caretaker. (Apr) The annual inflation rate drops to 3.5 percent, the lowest in 18 years. (Jun) Prime Minister Sir Robert Muldoon calls a snap election for 14 July. (Jul) The Labour Party wins the General Election. New Government devalues the New Zealand dollar by 20 percent and re-imposes the Price Freeze. Interest rate restrictions are lifted. (Aug) New Zealand Meat Board makes a $200-million-a-year lamb marketing agreement with a British company. (Sep) Economic Summit Conference held, including representatives from many sectors of the community. (Oct) Two-day Maori Summit Conference held. (Nov) Budget presented, including the introduction of the Family Care Scheme; an increase in taxation on additional income of those receiving National Superannuation; and lifting of the Price Freeze. Government lays down wage guidelines. (Dec) Riot erupts during a free rock concert in Queen Street, Auckland causing almost $1 million damage. New Zealand ratifies the United National Convention on the Elimination of All Forms of Discrimination Against Women.

1985 (Feb) A United States request for a port visit by a warship, USS Buchanan, was declined by the New Zealand Government because of uncertainty that it was nuclear armed. (Mar) On 4 March the New Zealand dollar was floated. It reached its lowest value of $US0.4365 on the same day and peaked at $US0.5928 on 14 August. (Apr) University Entrance examinations abolished as from 1987. (Jun) All Black rugby tour of South Africa cancelled. (Jul) The Greenpeace protest vessel Rainbow Warrior bombed and sunk. (Sep) Adult Information Adoption Bill passed.

Further information

See under historical works in the bibliography, “Books about New Zealand”, at the end of this volume.

Chapter 3. 3 Government and law

3.1 Constitution

New Zealand is a monarchy with a parliamentary government. Its constitutional history dates back to its status as a British colony. By the Treaty of Waitangi of 1840 the Maori people exchanged their sovereignty for the guarantees in the Treaty. New Zealand is now an independent state. Queen Elizabeth II has the title Queen of New Zealand, and the Crown is vested in the same person as the British Crown.

A constitution provides for the composition of the legislative, executive, and judicial organs of Government, their powers and duties, and the relationship between these organs. In New Zealand the constitution is not contained in a single document that can be referred to as “the Constitution”. Instead it is found in various New Zealand and United Kingdom statutes, constitutional conventions, and case law. A feature of constitutional documents in some countries is that the provisions in them are safeguarded by requiring a special procedure to amend them. Only one of the New Zealand constitutional Acts has a requirement of this nature (that is the Electoral Act 1956). Our constitutional provisions can therefore be amended or repealed by the same procedures as the ordinary law. Some sections of the Electoral Act 1956 require a 75 percent majority in Parliament to change them, or a majority of votes cast at a referendum. However, the 75 percent requirement could itself be abolished by a simple majority. In this sense, the protection is political rather than legal.

Important sources of constitutional law include: the Constitution Act 1852, which initiated parliamentary government; the U.K. Habeus Corpus Act 1679 and Bill of Rights 1688, which respectively protect the individual against arbitrary detention, and define some of the relative powers of the Crown and Parliament; the Electoral Act 1956, which provides procedures for parliamentary elections; the Letters Patent 1983, which set out the Governor-General's powers; the Public Safety Conservation Act 1932, which provides the executive government with wide powers, should an emergency be declared; the Economic Stabilisation Act 1948, which confers extensive powers on the Government to affect socioeconomic activity; and the Civil List Act 1979, which embodies the principle of responsible government, i.e., by persons responsible to the electorate.

Crown and Governor-General. The Governor-General is the representative of the Sovereign in New Zealand and exercises the royal powers derived from statute and the general law. Almost all of the Governor-General's powers are now statutory, and this has the effect of abridging any of the prerogative powers that cover the same ground. The Governor-General possesses only those prerogative powers delegated in the Letters Patent, and the courts may decide on the limits of the prerogative powers. Their role in New Zealand is residual. The Sovereign appoints the Governor-General on the Prime Minister's recommendation, normally for a term of 5 years. The Governor-General's main constitutional function is to arrange for the leader of the majority party in Parliament to form a government. By constitutional convention and the Letters Patent the Governor-General is required to follow the advice of ministers. By convention the Governor-General can in extraordinary circumstances reject advice if he believes that a Government is intending to act unconstitutionally. The Governor-General's powers to do this are known as the reserve powers. The extent of these powers in New Zealand is unclear. Events in Australia in 1975 demonstrated how controversial the use of the reserve powers can be.

Parliamentary tradition. A feature of New Zealand's constitution is that, although it is a monarchy in form, it operates democratically because of a long political tradition of parliamentary government and a network of constitutional principles. They developed during the course of British history, and were transferred to New Zealand. Some have legal status and some exist as constitutional conventions. The Crown is still the formal legal repository of much power. The Crown is part of Parliament, and the Governor-General's assent is required before bills can become law. Government administration is formally carried out by the Crown through its ministers and State servants. However the Crown must act according to its ministers wishes, and they must retain parliamentary support. The Government cannot act effectively without Parliament, because it cannot raise or spend money without parliamentary approval, and for most categories of expenditure this approval takes the form of an annual vote of funds to the Government. Parliament therefore has to be assembled regularly, and has the opportunity to hold the Government to account. Under the modern 2-party system however, the Government effectively controls proceedings in Parliament and cases of Government members voting with the Opposition are very uncommon. Judges are appointed by the Crown. There is a strong tradition of independence for judges and various mechanisms to protect it.

3.2 Parliament

House of Representatives

At the heart of the parliamentary system lies the power to make laws that is vested by the Constitution Act 1852 in the General Assembly of New Zealand, which consists of the Governor-General (or the Queen when she is in New Zealand) and an elected House of Representatives. The Governor-General's role is formal and the term Parliament effectively means the 95 member House of Representatives.

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

The Constitution Act 1852 forbids the House to allocate public funds for any purpose unless first recommended by the Governor-General. Although the reasons for this provision are historic, it is also used by governments to defeat legislation brought forward by individual members which ministers are unwilling to support or adopt. On the other hand, the law forbids the Crown to tax citizens without express parliamentary approval.

Constitutional law includes the law and custom of Parliament, itself derived from a variety of sources. The Bill of Rights 1688 saves any proceeding in Parliament from being questioned in any forum, other than the House itself, and the Legislature Act 1908 provides that the powers, privileges, rights and immunities of the House (and its committees and members) are those possessed by the British House of Commons on 1 January 1865. One aspect of the powers of the House is the ability to make rules for the conduct of its business. Most of these are contained in the Standing Orders, although some are made on a sessional, and others on an ad hoc basis. The traditional three readings given to a bill are part of Standing Orders, but it is open to the House to alter or suspend its rules at any time. The House has retained the right to punish breaches of its privileges, whether by members or citizens, from which there is no appeal (although the courts could be asked to decide whether the privilege claimed is one recognised by law).

Perhaps the most important privilege of the House is that of freedom of speech, guaranteed by the Bill of Rights 1688, and claimed by the Speaker upon confirmation in his office by the Governor-General.

The House meets, as Parliament, in answer to a summons from the Governor-General. Sessions of Parliament are marked by a formal opening, when the Government's legislative programme is described in the Speech from the Throne read by the Governor-General, and a closing prorogation by proclamation. Unless the House, by resolution made under the authority of the Legislature Amendment Act 1977, carries forward business to the next session, all business before the House on prorogation lapses. Parliament is either dissolved by the Governor-General or expires after 3 years and another General Election is held.

Because control of the House's business lies with the Government, many of the rules and customs of the House are designed to ensure that members are given a full opportunity to debate any aspect of a government's proposals. A central figure in Parliament is the Speaker, who is elected to act as an impartial chairman when the House is in session. The Speaker controls debates and the conduct of members and ensures standing orders are complied with. The Speaker is assisted by permanent officials, headed by the Clerk of the House, who is charged with the administration of the House and the provision of advice on parliamentary law and custom.

Parliamentary opposition. As the name suggests it is the job of the opposition party with the highest number of seats to oppose the government. Its role is to present itself to the people as an alternative government. It will attack government policy and attempt to demonstrate inefficiency, and government or department mismanagement.

In the context of the party system, it is unlikely that the Opposition would be in a position to bring down a government by means of a no-confidence vote—there is no instance of a successful no-confidence vote in the history of the New Zealand Parliament since 1928. In modern times Parliament has been characterised by having 2 large, dominant parties, with the majority party forming the Government and the minority party forming the Opposition. In recent years, however, members of a third party have secured election to Parliament, and from time to time members have left one of the parties and have continued to sit as independent members. Because of the growth of a largely 2-party system and the importance that the parties have assumed within the political framework, the party caucus (a meeting of each party's members of Parliament in closed session at regular intervals, once a week when Parliament is in session) is a primary means of developing policies and tactics. Caucus committees of the parties travel around the country frequently, investigating issues of interest or concern to them. Although the existence of the caucuses and their committees is not recognised by the law, indirect recognition has been given, for example travelling allowances are payable to members when travelling as members of a caucus committee.

Process of legislation. Proposed laws are placed before the House in the form of draft laws known as “bills”. There are 3 types of bills: public bills, dealing with the most important subjects of a public and general nature (most public bills are introduced by the Government); local bills, which are promoted by local authorities to give themselves special powers or validate unlawful action they may take; and private bills, which are promoted by private individuals or companies also to give themselves special powers.

The procedure for passing a public bill in Parliament is to receive a first reading, which is a formal introductory stage. This will have a maximum debating time of 2 hours, although often no debate occurs. Almost all bills are then sent to a select committee. Detailed scrutiny of legislation and facets of executive activity, e.g. expenditure of public money, is carried out by select committees consisting of a small number of members, which report their findings and recommendations to the House. Since 1980, all Government bills stand referred to a select committee unless certified by the Speaker as “money bills” (or are particularly urgent). This is intended to enable the public and interested bodies to make submissions, in the expectation that better laws will result. Following its deliberations the select committee will report the bill back with any proposed amendments. On the second reading the formal debate will occur on the substance of the bill. Following this the bill is considered by the whole House “in committee”, when the Committee of the whole House considers the bill clause by clause. This may involve considerable debating time. The entire bill is considered in this way and formally reported back to the House for its third reading with any amendments that have been agreed. Debate may also take place on the bill's third reading, after which it is forwarded to the Governor-General for his approval. On receiving the Royal Assent the bill becomes an Act and part of the law of New Zealand.

The various stages of the bill do not always follow any set time pattern. Weeks or even months can elapse between readings. Bills will normally have explanatory notes on the front, which detail the contents. These do not appear on the Act. Local and private bills pass through similar stages to those for a public bill, however in these two types of bills the person or body promoting the bill must in addition advertise the bill publicly before it can be introduced.

Table 3.1. PARLIAMENTARY AND MINISTERIAL SALARIES AND ALLOWANCES

OfficeYearly Rate of Salary Payable On and After 1 April 1985
Source: Clerk of the House of Representatives.
Members of the Executive$
Prime Minister117,500
Deputy Prime Minister92,000
Each Minister of the Crown holding a portfolio or portfolios (other than the Prime Minister or the Deputy Prime Minister)82,000
Each Minister of the Crown without portfolio66,500
Each Parliamentary Under-Secretary64,000
Officers of the House of Representatives 
Speaker of the House of Representatives76,000
Chairman of Committees of the House of Representatives65,500
Leader and Deputy of the Official Opposition 
Leader of the Official Opposition82,000
Deputy Leader of the Official Opposition64,000
Whips 
Chief Government Whip56,500
Chief Opposition Whip56,500
Junior Government Whip53,000
Junior Opposition Whip53,000
Members of the House of Representatives 
Each member of the House of Representatives to whom the foregoing provisions do not apply45,000
Prime Minister19,500
Deputy Prime Minister8,500
Each Minister of the Crown holding a portfolio or portfolios (other than the Prime Minister or the Deputy Prime Minister)8,000
Each Minister of the Crown without portfolio6,250
Each Parliamentary Under-Secretary6,250
Minister of Foreign Affairs (Additional)5,000
Speaker4,000
     (Additional allowance as Speaker; plus electorate allowance abated by one-third of the appropriate rate, and day allowance)6,500
Chairman of Committees4,000
     (Additional allowance as Chairman plus electorate allowance abated by one-third of the appropriate rate, and day allowance)3,750
Leader of the Opposition8,000
     (Plus house and travelling allowances) 
Deputy Leader of the Opposition4,000
     (Plus additional allowance as Deputy and electorate, night, and day allowances at appropriate rates)3,125
Members (Plus electorate, day, and night allowances at appropriate rates)4,000

The rate at which an electorate allowance is paid depends on the nature of each member's electorate, e.g., urban, rural, or semi-rural, and ranges from $6,500 to $14,000. A day allowance of $27 is payable where indicated for each day on which a member attends a sitting of Parliament or a committee, and a night allowance of $40 for each night a member requires overnight accommodation away from home by reason of such attendance. In addition to the foregoing allowances, a once-only setting up allowance is paid to members elected for the first time. The current rate is $350.

Table 3.2. PARLIAMENTARY SESSIONS

ParliamentPeriod of session
Source: Clerk of the House of Representatives.
Thirty-seventh15 February 1973-16 March 1973
5 June 1973-23 November 1973
4 February 1974-29 March 1974
28 May 1974-8 November 1974
25 March 1975-10 October 1975
Thirty-eighth23 June 1976-14 December 1976
28 February 1977-4 March 1977
19 May 1977-16 December 1977
11 May 1978-6 October 1978
Thirty-ninth17 May 1979-14 December 1979
15 May 1980-12 December 1980
20 May 1981-23 October 1981
Fortieth7 April 1982-17 December 1982
7 April 1983-16 December 1983
31 May 1984-14 June 1984
Forty-first15 August 1984-12 December 1985

The Forty-first session was called on 15 August 1984, following the Parliamentary elections of 14 July 1984, and, in line with the policy of the Government, will sit continuously, with short breaks, until the next election is called.

Table 3.3. SUMMARY OF PARLIAMENTARY PROCEEDINGS

 198219831984-*1985

*Third session, Fortieth Parliament.

†In hours and minutes.

Source: Clerk of the House of Representatives.

Sitting days110999157
Hours of sitting after midnight27:4331:17-58:28
Public Bills introduced by Government1079612139
Public Bills referred to Select Committees868010101

Table 3.4. PARLIAMENTARY REPRESENTATION
Percentage of women, and ages of members compared to voting population

 Percentage of Total Members of ParliamentPercentage of Total Voting Age Population*

*As at 30 September 1984.

Source: Clerk of the House of Representatives.

Women12.651.0*
Age groups—
   18-29 years1.130.0*
   30-3928.421.1*
   40-4940.015.2*
   50-5922.113.0*
   60 years and over8.420.7*

Legislation 1984-85. During the parliamentary session of 1984-85, 221 Public Acts were passed, compared with 2 passed in the first session of the Forty-first Parliament 1984.

Table 3.5. HOUSE OF REPRESENTATIVES

                                                                                                Prime Minister—Rt. Hon. D. R. Lange.
                                                                                                Leader of the Opposition—Hon. J. B. Bolger*
                                                                                                Speaker—Dr. G. A. Wall.
                                                                                                Chairman of Committees—J. J. Terris.
                                                                                                Clerk of the House—D. G. McGee. B.A. (Hons).
Member of ParliamentYear of BirthPrevious OccupationElectoral District

*Hon. J. B. Bolger replaced Hon. J. R. McLay as Leader of the Opposition on 26 March 1986.

†Names are given in the form in which individual Members prefer to be addressed.

‡Government Member.

§Following by-election 15 June 1985.

Source: Clerk of the House of Representatives.

Anderton, J. P.‡1938Company directorSydenham
Angus, D. A.1938Freezing company stock buyerWallace
Austin, H. N.1925FarmerBay of Islands
Austin, Margaret‡1933TeacherYaldhurst
Austin, W. R.1931FarmerAwarua
Banks, J. A.1946RestauranteurWhangarei
Bassett, Hon. Dr M. E. R.‡1938LecturerTe Atatu
Batchelor, Mrs M. D.‡1927Trade union organiserAvon
Birch, Hon. W. F.1934Consultant surveyor-engineerFranklin
Bolger, Hon. J. B.1935FarmerKing Country
Boorman, R. G.‡1935Superannuation consultantWairarapa
Braybrooke, G. B.‡1935Sales managerNapier
Burdon, P. R.1939Company directorFendalton
Burke; Hon. T. K.‡1942TeacherWest Coast
Butcher, D. J.‡1948Research officerHastings
Caygill, Hon. D. F.‡1948Barrister and solicitorSt. Albans
Clark, Helen‡1950LecturerMt. Albert
Colman, Hon. F. MacD.‡1925Secretary of Labour Party HeadquartersPencarrow
Cooper, Hon. W. E.1933MotelierOtago
Cox, M. E. C.1939AccountantManawatu
Cullen, Dr M.‡1945LecturerSt. Kilda
de Cleene, T. A.‡1933Barrister and solicitorPalmerston North
Dillon, R.‡1933Barrister and solicitorHamilton East
Douglas, Hon. R. O.‡1937Company secretaryManurewa
Dunne, P. F.‡1954Deputy chief executive officerOhariu
East, Paul1946Barrister and solicitorRotorua
Elder, Jack‡1949TeacherWest Auckland
Falloon, Hon. J. H.1942Farm management consultantPahiatua
Fraser, Mrs Anne.‡1954TeacherEast Cape
Friedlander, Hon. A. P. D.1944Farm appraiserNew Plymouth
Gair, Hon. G. F.1926Personal Assistant to General Manager, Air New ZealandNorth Shore
Gerbic, F. M.‡1932industrial conciliatorOnehunga
Gerard, R. J.1936FarmerRangiora
Goff, Hon. P.‡1953LecturerRoskill
Graham, D. A. M.1942Barrister and solicitorRemuera
Gray, R. M.1931FarmerClutha
Gregory, Dr B.‡1937Doctor of MedicineNorthern Maori
Hercus, Hon. Ann‡1942Member of Commerce CommissionLyttelton
Hunt, Hon. Jonathan‡1938TeacherNew Lynn
Isbey, E. E.‡1917WatersiderPapatoetoe
Jeffries, W. P.‡1945Barrister and solicitorHeretaunga
Jones, N. P. H., Q.S.M.1923TeacherInvercargill
Keall, Mrs J. M.‡1942TeacherGlenfield
Kidd, D. L.1941Barrister and solicitorMarlborough
King, Mrs Annette‡1947Dental tutorHorowhenua
Knapp, G. T.1947BusinessmanEast Coast Bays
Lange, Rt. Hon. D. R.‡1942Barrister and solicitorMangere
Lee, G. E.1935Company directorHauraki
Luxton, J. F.1923FarmerMatamata
McClay, R. N.1945TeacherWaikaremoana
McKinnon, D. C.1939Real estate agentRodney
McLay, Hon. J. K.1945BarristerBirkenhead
McLean, I.1935FarmerTarawera
McTigue, M. P.§1940FarmerTimaru
Mallard, Trevor‡1954TeacherHamilton
Marshall, Hon. C. R.‡1936Minister and teacherWanganui
Marshall, Denis1943Farmer and company directorRangitikei
Matthewson, Dr Clive‡1944Civil engineerDunedin West
Maxwell, Ralph‡1934TeacherWaitakere
Maxwell, Roger1941FarmerTaranaki
Moore, Hon. M. K.‡1949Freezing workerChristchurch North
Morrison, N. J.1938ManufacturerPakuranga
Moyle, Hon. C. J.‡1929Teacher/FarmerOtara
Muldoon, Rt. Hon. Sir Robert, G.C.M.G., C.H.1921AccountantTamaki
Neilson, Peter‡1954Civil servantMiramar
Northey, Richard‡1945Advisory officerEden
O'Flynn, Hon. F. D., Q.C.1918Barrister and Queen's CounselIsland Bay
O'Regan, Mrs Katherine1946FarmerWaipa
Palmer, Hon. Geoffrey‡1942LecturerChristchurch Central
Peters, W. R.1945Barrister and solicitorTauranga
Prebble, Hon. R. W.‡1948Barrister and solicitorAuckland Central
Richardson, Ruth1950Legal adviser/FarmerSelwyn
Rodger, Hon. S. J.‡1940M.O.W.D. employeeDunedin North
Scott, Noel‡1929Education administratorTongariro
Shields, Hon. Margaret‡1941Research workerKapiti
Shirley, K. L.‡1950ScientistTasman
Smith, Dr Lockwood1948Managing DirectorKaipara
Storey, W. R.1936President of Federated FarmersWaikato
Sutton, J. R‡1941FarmerWaitaki
Sutton, Dr Bill‡1944ScientistHawke's Bay
Talbot, Hon. R. L. G.1923FarmerAshburton
Tapsell, Hon. Dr Peter M.B.E.‡1930Doctor of MedicineEastern Maori
Terris, J. J.‡1939BroadcasterWestern Hutt
Tirikatene-Sullivan, Hon. Mrs T. W. M.‡1932Political scientistSouthern Maori
Tizard, Hon. R. J.‡1924TeacherPanmure
Townshend, C. B.1931FarmerKaimai
Upton, S. D.1958Student/TeacherRaglan
Wall, Dr G. A.‡1920Doctor of MedicinePorirua
Wallbank, A. R.‡1937FarmerGisborne
Wellington, Hon. M. L.1940TeacherPapakura
Wetere, Hon. K. T.‡1935FarmerWestern Maori
Wilde, Fran‡1948JournalistWellington Central
Woollaston, P. T. E.‡1944TeacherNelson
Young, T. J.‡1925General Superintendent of New Zealand AllianceEastern Hutt
Young, Hon. V. S.1929FarmerWaitotara

Parliamentary elections Since 1974 persons 18 years and over have had the right to vote in parliamentary elections. Men and women 21 and over have had the right to vote since 1893, and the voting age was lowered to 20 in 1969. Enrolment as an elector is compulsory, but voting is not. To qualify for enrolment persons must (i) be at least 18 years old; (ii) be New Zealand citizens or permanent residents; (iii) have lived continuously in New Zealand for at least a year at some time; and (iv) have last lived continuously for 1 month in the electorate they are to be enrolled in. Maoris, including persons of Maori descent, may choose to enrol for either a Maori or general electorate, but may make the choice only at certain times. The electoral rolls are kept by the Post Office.

Voting. The conduct of polls is the responsibility of the Department of Justice, and is controlled by a returning officer in each electorate, who arranges voting facilities and staff, conducts the election, supervises counting of votes, and declares the result. Generally only persons whose names are validly enrolled before an election are qualified to vote. General elections and by-elections are held on Saturdays, and polling booths are open from 9 a.m. to 7 p.m. Electors normally cast their votes at polling booths in their electorates, but they may vote as special voters at booths outside their electorate, or by post because of sickness, travel, or similar reasons. Provision is also made for voting overseas. Voting is by secret ballot. Voting papers list the surnames of candidates for the electorate concerned, and electors indicate their choice by striking out the names of every other candidate. A preliminary count of ordinary votes is available for each electorate on election night, and final results are normally available a fortnight later, once special and overseas votes have been received and counted. The candidate with the most votes is elected member of Parliament for the electorate concerned.

Electoral boundaries. The boundaries of electorates are revised every 5 years after the population census, and the new boundaries come into effect at the expiry of the parliamentary term during which the revision is finalised. The Department of Statistics supplies figures for revision purposes on the general electoral population. This is defined as the total electoral population except: (a) the Maori electoral population (This is the number of adult Maoris enrolled in the 4 Maori electorates, adjusted to include children. Maoris have been defined since 1980 as persons of the Maori race of New Zealand including any of their descendants.); (b) temporary residents of various kinds (travellers, armed forces, and hospital patients); and (c) prisoners. The Representation Commission is responsible for defining the boundaries of electorates based on the population census. The commission has 8 members. Five are officials, the Surveyor General, the Government Statistician, the Chief Electoral Officer, and the Director-General of the Post Office, who can vote on the commission, and the Chairman of the Local Government Commission, who cannot vote. Two are nominated by the House of Representatives to represent the Government and Opposition respectively, and the final member is appointed to chair the Commission on the nomination of the other members. The appointments of the unofficial members lapse at the next census. The number of general electorates is based on a formula that allocates 25 electorates to the South Island. The general electoral population of the South Island is divided by 25, and the population quota for each South Island electorate is divided into the general electoral population of the North Island to give the number of electorates required in the North Island. In addition there is a fixed number of 4 Maori electorates. Once the provisional electoral boundaries have been settled, maps of the proposals are drawn, and boundary details published in the New Zealand Gazette. Objections may be lodged within 1 month of publication. They are then published, and there are a further 2 weeks for lodging counter-objections. The objections and counter-objections are considered by the Representation Commission, which makes a final decision on the boundaries that define the new electoral districts.

General election results. The last general election of members of Parliament was held on 14 July 1984. The total number of electors on the master roll for the 1984 election was 2 111 651. A total of 1 978 798 votes were cast; this represents 93.71 percent of electors on the master roll.

Table 3.6. GENERAL ELECTION RESULTS

Political PartyNumber of MP's
19631966196919721975197819811984

*A by-election was held at Timaru on 15 June 1985, after the death of the sitting Labour member. The National Party candidate was elected making the relative strengths of the parties in Parliament: Labour 55; National 38.

Source: Department of Justice.

Labour3535395532404356
National4544453255514737*
Social Credit-1---122
     Total8080848787929295

Table 3.7. GENERAL ELECTIONS—VOTES FOR POLITICAL PARTIES

Political PartyValid votesPercentage of Total Valid Votes
19751978198119841975197819811984
Source: Department of Justice.
Labour636,319691,076702,630829,15439.7040.4139.0142.98
National760,365680,991698,508692,49447.4439.8238.7835.89
N.Z. Party236,38512.25
Social Credit119,123274,756372,056147,1627.4316.0720.657.63
Mana Motuhake8,3325,9890.460.31
Values83,21341,2203,4603,8265.192.410.190.20
Others3,75722,13016,31714,1910.231.290.910.74
    Total valid votes1 602 7771 710 1731801 3031 929 201100.00100.00100.00100.00
Informal votes8,24311,2708,9987,565….
    Totals1 611 0201 721 4431810 3011 936 766

National licensing poll. The licensing poll of 14 July 1984, held in conjunction with the parliamentary elections, was the twentieth at which the three issues—national continuance, State purchase and control, and national prohibition (without compensation)—were submitted to the electors.

Table 3.8. RESULTS OF NATIONAL LICENSING POLLS

Voting Issue196919721975197819811984
Source: Department of Justice.
For national continuance903,962931,7781 094 4451 053 2681 124 2581319 518
For State purchase and control242,499244,003235,374252,154247,217222,049
For national prohibition176,055203,791250,640374,194384,780352,949

Controller and Auditor-General The Controller and Auditor-General is an officer of the Crown appointed by the Governor-General under the Public Finance Act 1977. Much like the judiciary, he or she is independent of the Executive and can only be removed from office by the Governor-General upon an address from the House of Representatives. There is also a Deputy Controller and Auditor-General whose mode of appointment and tenure of office are the same. The Controller and Auditor-General and persons acting under delegation from him or her are collectively called the “Audit Office”. No Minister is in any way responsible for the carrying out or exercise by the Audit Office of its functions, duties, and powers.

The Audit Office audits the financial statements of government departments, local authorities and most government controlled corporations, boards and companies. These organisations are also subject from time to time to reviews which ascertain whether their resources have been applied effectively and efficiently in a manner consistent with the policies of their governing bodies.

The constitutionally important role of the Audit Office is to act as a monitor on behalf of Parliament, and take part in the procedures laid down in the Public Finance Act 1977 to control issues of money out of the Public Account. The Audit Office has to be satisfied that all issues from the Public Account to meet the Government's expenditure requirements are within the appropriations and other authorities granted by Parliament. This role is crucial to the ability of Parliament to control the supply of funds to the Crown, and in certain circumstances the Audit Office may prevent the issue of money from the Public Account.

To enable it to carry out its functions, the Audit Office has a number of powers. These include rights of access to the books, accounts, and property of its clients, and the right to require persons to supply information or deliver up books and accounts in their possession, or under their control.

The Controller and Auditor-General has no general power of sanction to remedy shortcomings discovered during an audit. The principal recourse is to report to the management of the organisation either by letter or in the formal audit opinion on financial statements, to a Minister, or to Parliament and its Select Committees. If there is a deficiency or loss of public money or stores, the Controller and Auditor-General has the power to surcharge the persons responsible to recover the amount involved. This power is rarely used.

Royal Commissions and Commissions of Inquiry The Commissions of Inquiry Act 1908, provides that the Governor-General may by Order in Council, appoint any person or persons to be a commission to inquire into and report upon any question arising out of, or concerning: (a) the administration of the Government; (b) the working of any existing law; (c) the necessity or expediency of any legislation; (d) the conduct of any officer in the service of the Crown; (e) any disaster or accident (whether due to natural causes or otherwise) in which members of the public were killed, injured, or were or might have been exposed to risk of death or injury; and (f) any other matter of public importance.

A Royal Commission is appointed by the Governor-General pursuant to the Letters Patent, but in other respects derives its powers from the Commissions of Inquiry Act 1908. Royal Commissions, are generally regarded as having a greater prestige and standing. A committee of inquiry may be set up by a Minister to investigate some matter but such a committee has no statutory basis in the normal course of events, although there are ancillary powers in some instances.

Amendments to the legislation in 1979 and 1980 confer new rights upon any person if he or she is a party to the inquiry or satisfies the commission that he or she has an interest in the inquiry apart from any interest in common with the public.

Usually the terms of reference for a commission are quite specific. While there is frequently a final term of reference which appears to include everything else, this term of reference must be considered in context. It does not confer the right on almost anyone to become a party or participant in the inquiry.

The Department of Internal Affairs administers the Commissions of Inquiry legislation and provides basic services to the various commissions. These inquiries are not part of the justice system, nor are they part of the conventional administrative bureaucracy. The department retains important constitutional responsibilities, and is held responsible to ensure that complete independence and impartiality of the investigations is maintained.

Commissions of Inquiry must report to the Governor-General, who in turn refers the findings and report to his or her Ministers. It is frequently the custom for the report to be published.

3.3 Executive government

The executive government of New Zealand is carried out on behalf of the Sovereign by the Ministers of the Crown, who make up the members of the Cabinet and the Executive Council, and control the State Services. Ministers are responsible to Parliament for their official actions by constitutional convention, and are required to be members of Parliament by the Civil List Act 1979.

After a general election the Governor-General invites the leader of the majority party in the House of Representatives to accept office as Prime Minister, and form a government. On the new Prime Minister's advice the Governor-General appoints a number of MPs as ministers, generally with responsibilities for various areas of government administration (portfolios), and may also appoint parliamentary under-secretaries, who are not ministers and not members of the Executive Council, to assist ministers.

Cabinet and the Executive Council

The Cabinet and the Executive Council are two bodies, which, in normal circumstances, have the same membership but different functions. The Executive Council is a formal body with formal functions, whereas the Cabinet is an informal body with deliberative functions; the Executive Council tenders advice to the Governor-General on the basis of policy formulated in the Cabinet. The Council is established under the Constitution-Act 1852 and is the main legal vehicle for promulgating government decisions that will form part of the law, such as statutory regulations, which are made by Order-in-Council.

The Cabinet is in effect the highest council of government, although it is an informal body, which exists by constitutional convention. In Cabinet the government of the day decides on the administrative and legislative proposals and policies, and co-ordinates the work of ministers. The Cabinet has a system of subcommittees with authority to make decisions on various subjects, whose members are the ministers concerned. There are Cabinet committees at present on the following subjects: policy; social equity; development and marketing; transport, communications and state enterprises; external relations and security; management and state employment; legislation; honours and appointments; and terrorism.

The proceedings of the Cabinet are informal and confidential, which encourages consensus decisions. By constitutional convention the Cabinet accepts collective responsibility for its decisions, which ensures that ministers will have the support of the Government as a whole in Parliament for their legislative and other proposals. The Cabinet Office provides services for the Cabinet and its committees. The Secretary is also the Clerk of the Executive Council.

Table 3.9. NEW ZEALAND GOVERNMENT

Governor-General of New Zealand—His Excellency the Governor-General Most Reverend Sir Paul Reeves, G.C.M.G., Hon. D.C.L. (OXON).
    Official Secretary—Paul Canham.
The Ministry
    Rt. Hon. D. R. LANGE, Prime Minister, Minister of Foreign Affairs, Minister in Charge of the New Zealand Security Intelligence Service.
    Rt. Hon. G. W. R. PALMER, Deputy Prime Minister, Leader of the House, Attorney-General, Minister of Justice, Minister in Charge of the Legislative Department, Minister in Charge of the Government Printing Office.
    Hon. M. K. MOORE, Minister of Overseas Trade and Marketing, Minister of Tourism, Minister in Charge of Publicity, Minister of Recreation and Sport.
    Hon. R. O. DOUGLAS, Minister of Finance, Minister in Charge of the Inland Revenue Department, Minister in Charge of Friendly Societies.
Hon. R. W. PREBBLE, Minister of Transport, Minister of Civil Aviation and Meteorological Services, Minister of Railways, Minister of Pacific Island Affairs, Associate Minister of Finance.
Hon. K. T. WETERE, Minister of Maori Affairs, Minister of Lands, Minister of Forests, Minister in Charge of the Valuation Department.
Hon. D. F. CAYGILL, Minister of Trade and Industry, Minister of National Development, Associate Minister of Finance.
Hon. C. R. MARSHALL, Minister of Education, Minister for the Environment.
Hon. F. D. O'FLYNN, Q.C., Minister of State, Minister of Defence, Minister in Charge of War Pensions, Minister in Charge of Rehabilitation, Deputy Minister of Foreign Affairs, Associate Minister of Overseas Trade and Marketing.
Hon. Dr M. E. R. BASSETT, Minister of Health, Minister of Local Government.
Hon. A. HERCUS, Minister of Social Welfare, Minister of Police, Minister of Women's Affairs.
Rt. Hon. R. J. TIZARD, Minister of Energy, Minister of Statistics, Minister of Science and Technology, Minister in Charge of the Audit Department.
Hon. C. J. MOYLE, Minister of Agriculture, Minister of Fisheries, Minister in Charge of the Rural Banking and Finance Corporation.
Hon. S. J. RODGER, Minister of Labour, Minister of State Services.
Hon. J. L. HUNT, Minister of Broadcasting, Postmaster-General.
Rt. Hon. F. M. COLMAN, Minister of Works and Development, Minister in Charge of the Earthquake and War Damage Commission, Associate Minister of Energy.
Hon. T. K. BURKE, Minister of Regional Development, Minister of Employment, Minister of Immigration.
Hon. M. SHIELDS, Minister of Customs, Minister of Consumer Affairs.
Hon. Dr P. TAPSELL, M.B.E., Minister of Internal Affairs, Minister of Civil Defence, Minister for the Arts, Associate Minister of Local Government, Associate Minister of Tourism.
Hon. P. B. GOFF, Minister of Housing, Minister in Charge of the Government Life Insurance Corporation, Minister in Charge of the State Insurance Office, Minister in Charge of the Public Trust Office.
Executive Council—Membership of the Executive Council comprises the Cabinet and the Governor-General. The Clerk of the Executive Council is P. G. MILLEN, M.A. (OXON).
Parliamentary Under-Secretaries
    D. J. BUTCHER, Parliamentary Under-Secretary for Agriculture and Fisheries, Lands, and Forests.
T. A. DE CLEENE, Parliamentary Under-Secretary for Finance, with special responsibility for the Inland Revenue Department.
    E. E. ISBEY, Parliamentary Under-Secretary for Labour. Employment, and Immigration.
    W. P. JEFFRIES, Parliamentary Under-Secretary for Transport, and Works and Development.
    P. NEILSON, Parliamentary Under-Secretary for Trade and Industry.
    P. T. E. WOOLLASTON, Parliamentary Under-Secretary for Local Government and Environment.

State Services and the State Services Commission

This section gives an overview of what organisations comprise the State Services; how many staff are employed; the structure of the organisations; functions and objectives; and how the conditions of employment for staff are set. It also sets out a brief description of the role of the State Services Commission.

The State Services consists of organisations covered by the State Services Conditions of Employment Act 1977, and includes all the servants of the Crown other than those holding political or judicial office. The Act establishes that common conditions of employment shall apply between these bodies. The following organisations are covered: Public Service, Railways, Post Office, Education, Hospital Services, Armed Forces, Police, and some other bodies. Each has a coordinating role in the management of its section of the State Services, and also a role in negotating conditions of employment for their staff e.g., the Ministry of Defence manages the business of the Royal New Zealand Air Force, Navy and Army and also has a role in establishing conditions of employment for these personnel as well as the civilian staff working in these units.

Table 3.10. STAFF OF THE STATE SERVICES

OrganisationStaff Numbers at 31 March
19811982198319841985

*Drawn from Annual Reports and calculated on head count basis.

†Includes Cook Strait ferry staff.

‡Comprises teaching, non-teaching, and ancillary staff. Calculation of the teaching staff figure is based on entitlement in full-time equivalents while non-teaching and ancillary staff are calculated on a head count basis. Figures for 1981-83 have been revised. Source; Department of Education.

§Source; National Health Statistics Centre; calculated as average full-time equivalents.

|| Effective strength of uniformed police plus cadets, matrons, staff on retiring leave, etc.

¶Includes Parliamentary Service Commission, Parliamentary Counsel Office, Queen Elizabeth II Arts Council, NZ Council for Education Research, Ombudsmen's Office, Privacy Commissioner's Office, Vocational Training Council, and other bodies financed by Government funds.

**Intercensal Labour Force Estimates.

Source: State Services Commission.

Public Service*85,66686,04585,22985,73885,423
Railways21,24121,61020,86519,14818,213
Post Office*39,63939,27937,97937,95740,433
Education62,93965,05466,48367,66868,583
Hospital Services§49,27149,02448,54348,50148,312
Armed Forces*12,86612,80812,85612,60412,445
Police ||5,0605,0855,0625,1365,129
Other (estimated)704710710710712
         Total277 386279 615277 727277 462279 250
Percentage of total estimated labour force20.9920.8720.5020.2419.80
Estimated labour force as at February**1 321 6001 340 1001 354 7001 371 1001 410 300

Organisational structures. A department is normally headed by a Permanent Head, or in some cases (such as the New Zealand Railways and Government Life Insurance Corporations) by a board of control. The Permanent Head or board is responsible to the Minister in charge of that department for ensuring that it is operating efficiently and effectively. The Permanent Head or board has considerable independence to organise the staff into various units to perform the functions and objectives that are required by Parliament, However, as a general rule, departmental structures are usually based on units with centralised reporting systems. State Service organisations are usually established by an Act of Parliament and are required to carry out specified tasks. However, in addition to these tasks, departments also have responsibility for other statutory functions, e.g., the Department of Labour established under the Labour Department Act 1954 has responsibilities under the Immigration Act 1964.

Government departments are the main instruments for giving effect to government policy when Parliament has passed the necessary legislation. They may, and often do, work with and through local authorities, statutory boards and government-sponsored organisations operating under various degrees of government control.

A change of government does not necessarily affect the number or general functions of government departments, although a radical change in policy may be accompanied by some organisational change.

Generally, departments receive their funds from Parliament. However, this has begun to change and a few Government organisations are now self funding: e.g., the New Zealand Railways Corportion and the New Zealand Post Office.

Each year departments are required to produce an Annual Report for parliamentary scrutiny, and the format of these reports will, in future, contain details of whether they meet the objectives set.

State Services Commission. The State Services Commission is responsible to the government of the day for efficiency and economy in the administration of Government policies.

In its role as the central personnel authority for the Public Service, the Commission is independent of the government of the day in making appointments and promotions and in taking disciplinary action and other personnel decisions. This independence is protected by law. The functions of government departments are described in the next section. The “Public Service” consists of the departments listed there except the Police (uniform staff), Post Office and Railways Corporation.

The State Services Act 1962 provides for a State Services Commission of up to four persons appointed by the Governor-General in Council on the recommendation of the Prime Minister. The statutory functions of the Commission are (a) reviewing the machinery of Government, including the allocation of functions to and between departments, the desirability of (or need for) the creation of new departments and the amalgamation or abolition of existing departments, the co-ordination of the activities of departments, and the extent and nature of controls exercised by any one department over the operations of another department; (b) reviewing the efficiency and economy of each department; (c) the provision of suitable office accommodation and the prescription and supervision of physical working conditions of all employees in the Public Service; (d) approving and reviewing establishments of staff; (e) acting as the central personnel authority for the Public Service; (f) prescribing basic training programmes, furnishing advice on and assisting with the training of staff, and making recommendations to the Minister on the facilities necessary for the proper training of staff; (g) providing management consultation services, including advice as to efficient work and control methods and techniques, data processing equipment, and problems of organisation.

The Commission has additional functions under the State Services Conditions of Employment Act 1977. That legislation provides that the Commmission is responsible for determining the salaries and conditions of employment for all employees of the Public Service and for co-ordinating the determination of pay rates and conditions of employment in all branches of the State Services (the Post Office, Railways, teaching service, hospital service, Broadcasting, Fire Service, the armed forces and the Public Service).

Conditions of employment. The common element in the State Services is that the conditions of employment of their staff are based on a single system. To ensure that one organisation does not become out of step with the others, none of the individual heads of the services have the authority to establish increased rates of pay without consulting the others. The main difference between the conditions covering the employment of state servants and private sector personnel is that some classes of state servants enjoy limited security of tenure.

The Permanent Head or board is under the control of a Minister in all respects except the internal appointment and promotion of staff of the department. Appointment to the State Services depends on the availability of a vacancy and the experience and educational qualifications of applicants. Certain classes of employees are always in demand (such as qualified accountants and computer personnel). Most departments recruit junior staff annually.

Promotion of staff within the State Services depends either on seniority (for a few services) or on merit which is taken to be the relative experience, educational qualifications and personal qualities of each applicant.

Table 3.11. HEADS OF GOVERNMENT DEPARTMENTS*

DepartmentTitleName
* As at 5 June 1986.
Agriculture and Fisheries, Ministry ofDirector-GeneralM. L. Cameron, B.AGR.SC.
AuditController and Auditor-GeneralB. H. C. Tyler, A.C.A., B.C.A.
Crown LawSolicitor-GeneralD. P. Neazor, LL.M. Q.C
CustomsComptrollerM. J. Belgrave
Defence, Ministry ofSecretaryD. B. G. McLean, M.SC., B.A. (OXON.)
 Chief of Defence StaffAir Marshal Sir Ewan Jamieson, C.B., K.B.E.
 Chief of Air StaffAir Vice-Marshal D. M. Crooks C.B., O.B.E.
 Chief of General StaffMajor-General J. Mace, C.B., O.B.E.
 Chief of Naval Staff..Rear-Admiral L. J. Tempero
EducationDirector-GeneralW. L. Renwick, M.A.
Energy, Ministry ofSecretaryB. V. Walker, PH.D., M.I.C.H.E.M.E., M.I.P.E.N.Z.
Environment,  
Commisssion for theCommissionerK. Piddington, M.A.
Foreign Affairs, Ministry ofSecretaryM. Norrish, M.A.
Government Computing ServiceGeneral ManagerM. G. Foden
Government Life Insurance OfficeManaging DirectorH. D. Peacock, F.I.A.
Government Printing OfficeGovernment PrinterV. R. Ward
HealthDirector-GeneralG. C. Salmond, M.B., PH.D., S.R.A.C.P., M.C.C.M.
Housing CorporationDirector-GeneralR. A. Kelly, B.A., D.P.A.
Inland RevenueCommissionerJ. Simcock, A.C.A.
Internal AffairsSecretary and Clerk of WritsE. J. Babe, C.V.O., B.COM., A.C.A., D.P.A.. DIP. R.V.
JusticeSecretary for JusticeD. Oughton, ACCTS PROF.
LabourSecretary of LabourC. J. McKenzie, M.AGR.SC.
Lands and SurveyDirector-GeneralP. H. C. Lucas, ACCTS PROF.
Maori AffairsSecretary and Maori TrusteeT. M. Reedy, PH.D.
New Zealand Forest ServiceDirector-GeneralA. Kirkland, B.SC., DIP. FOR. (C.B.A.), M.SC. (CALIF.)
New Zealand Security Intelligence ServiceDirector of SecurityBrigadier J. L. Smith, C.B.E., B.A.
Parliamentary ServiceClerk of House of RepresentativesD. G. McGee, B.A. (HONS)
PoliceCommissionerK. O. Thompson
Post OfficeDirector-GeneralF. K. McInerney
Prime Minister'sPermanent HeadG. C. P. Hensley, MA.
Public Trust OfficePublic TrusteeW. B. R. Hawkins, A.C.A.
RailwaysGeneral ManagerH. G. Purdy, A N.Z.I.M.. F.C.I.T.
Rural Banking and Finance CorporationGeneral ManagerR. J. Chappell, DIP.V.F.M., R.V.
Scientific and Industrial ResearchDirector-GeneralA. J. Ellis, M.SC., PH.D., F.N.Z.I.C., F.R.S.N.Z.
Social WelfareDirector-GeneralJ. W. Grant
State Insurance OfficeGeneral ManagerJ. F. Stirton, F.I.D.
State Services CommissionChairmanR. S. Deane, PH.D., B. COM. (HONS), A.C.A.. A.C.I.S.
StatisticsGovernment StatisticianS. S. R. Kuzmicich, B.SC.
Tourist and PublicityGeneral ManagerW. N. Plimmer, M.A.
Trade and IndustrySecretaryJ. W. H. Clark, B.A., ADMIN.PROF., D.P.A.
Transport, Ministry ofSecretaryD. E. Homewood, M.A.
TreasurySecretaryB. V. J. Galvin, B.A., M.P.A. (HVD.)
ValuationValuer-GeneralS. W. A. Ralston, DIP. U.V., R.V., F.N.Z.I.V.
Women's Affairs, Ministry ofSecretaryM. C. O'Regan, B.A.
Works and Development, Ministry ofCommissionerT. G. Shadwell, M.E., M.ENG.SC.(N.S.W). F.I.P.E.N.Z.

Functions of government departments

Agriculture and Fisheries, Ministry of. The purpose of the ministry is to assist the farming, horticulture, and fishing industries to identify and realise their potentials; to maintain and where possible improve New Zealand's animal, fish, and plant health status; and to provide our overseas customers with an assurance of the purity and safety of the food products we produce. The ministry also advises the Government on policies which will promote the growth and development of farming, horticulture, and fishing, maintain renewable resources, and enhance the New Zealand environment.

Audit Office. The Audit Office has a brief to operate in all three segments of the public sector—central government; government-owned corporations, companies, and quangos; and local government. As auditor of organisations in the public sector the Audit Office plays a key part in the process of accountability by those organisations, and accordingly it has a range of responsibilities much more extensive than that accepted by auditors whose role is confined to the traditional financial audit. In addition to carrying out audits leading to the expression of an opinion on financial statements, the Audit Office conducts periodic reviews of financial control systems and of selected programmes or operations to ascertain their effectiveness and efficiency. The Audit Office also places considerable emphasis on reporting the results of its work. The most visible result of that emphasis is the reports tabled in Parliament each year, which deal with issues ranging from those arising from particular audits to matters concerning financial management and administration generally in the public sector.

Crown Law Office. The Crown Law Office is the legal adviser of, and provides counsel in Court for the Government and Ministers in matters affecting the Crown and government departments. The Solicitor-General, who heads the office, performs most of the statutory and ex-officio duties of the Attorney-General's office and is entrusted by statute with various specific rights, duties, and functions. The range of the Crown Law Office's legal work corresponds with the activities of the Government itself.

Customs Department. The principal functions of the Customs Department are: the detection and investigation of offences against the Customs Acts; administration of Customs prohibitions and restrictions; advising the Government on matters of tariff and other means of protection for local industry collection of indirect taxation (Customs Duty, excise duty, sales tax, beer duty, motor spirits duty, international departure tax, and domestic air travel tax); investigations into values and origins of goods; participation in the negotiation of international and bilateral trade agreements and administration of the import licence issue procedures in conjunction with the Department of Trade and Industry.

Customs responsibilities involve the entry and clearance of ships and aircraft; passenger processing; liaison with New Zealand and overseas agencies in the control of international traffic; ensuring staff are trained to a satisfactory standard; protection and assistance to domestic industry, thus allowing growth in productivity, exports and employment; collecting the optimum level of indirect taxation as set out in the relevant legislation; the facilitation of international trade to the benefit of New Zealand in accordance with the Government's policies; and the issue of import licences and control of exports from New Zealand.

Defence, Ministry of. Functions include providing the resources required to enable Defence Headquarters to undertake the central command, control, management, and administration of the defence forces and the Ministry of Defence, and also maintaining and operating the defence communications network and computer information services.

Education, Department of. The primary objective of the department is to ensure that suitable education facilities and services are readily available for all children of compulsory school age (from 6 to 15 years); for children who by choice start school at the age of 5 years; for those pupils over the age of 15 who stay on at school; for suitably qualified school leavers who seek (or are required to undertake) education and training on leaving school, in secondary schools, teachers colleges, or technical institutes; and for adults wishing to continue their education, whether for vocational or non-vocational purposes. Associated with this objective is the responsibility for administering government policy in the maintenance and development of preschool education.

In carrying out these objectives the department's main activities are the provision of professional and administrative services for the support of the education system, the administration of primary and secondary education, special education, the training of teachers, technical and continuing education, and the National Library.

Energy, Ministry of. The Ministry of Energy was established to advise the Government on the formulation, implementation, co-ordination, and continuing review of effective and efficient energy policies for New Zealand. In carrying out this function the ministry must take into account energy sources and resources; exploration, assessment, research and development; production, supply, and distribution; consumption and conservation; needs of industry, commerce, transport, and domestic users; needs of regions; international responsibilities; environmental and social issues; organisational and administrative methods; and future patterns, changes, problems, and the need for planning.

As from 1 April 1986 the Ministry was reorganised to separate its trading and non-trading activities. The new structure will comprise two head office divisions (the Commercial and Support Division and the Policy and Regulation Division), and three commercial arms (Electricity, State Coal Mines and the Gas and Geothermal Trading Group). All are responsible to the Secretary of Energy.

Environment, Commission for the. The commission provides advice and administrative support to the Minister for the Environment, promotes the co-ordination of government policies in the environmental field, and initiates new policy proposals for the consideration of the Minister and others. It also audits environmental impact reports prepared by government departments and other organisations on proposed new major works with significant environmental consequences. The commission was dis-established in this form during 1986 as part of the re-organisation of environmental administration.

Ministry of Foreign Affairs. The Ministry of Foreign Affairs assists the Government in the conduct of all its foreign relations and administers the network of official representation overseas.

Forest Service, New Zealand. The main functions of the Forest Service are to obtain the maximum long-term benefit to the community for the balanced use and conservation of State forest resources, to promote the development of forestry and forest industry, and to maintain and, where possible, improve the health of New Zealand's forests.

Forests, both natural and man-made, are managed so as to provide for a multiplicity of uses, such as wood production, soil and water conservation, recreation, scientific and biological preservation and education. In managing the forest resource the Forest Service attempts to strike a balance between these often conflicting uses. The Forest Service was dis-established in this form during 1986 as part of the re-organistion of environmental administration.

Government Computing Service. From October 1985 the Computer Services Division of the State Services Commission became the Government Computing Service, whose function is to provide high quality information processing services primarily to the public sector, to the wider state and local authority sectors where cost-effective, and to the private sector where there is a market. These services include: data processing bureau services; systems design and development; data preparation; data communication network services; consultancy and advisory services; word processing and office automation services; and education and training. The service maintains 4 computer centres and 3 Data Preparation Centres.

Government Life Insurance Corporation. The corporation provides all types of life insurance, superannuation schemes and unit trusts. It is a mutual office, which actively competes in the financial market, and has assets worth $1,180 million.

Government Printing Office. The Government Printing Office provides printing, publishing, stationery, forms supply including storage, and other related services to Parliament, the Government, and its departments and agencies.

Health, Department of. The principal functions of the Department of Health are: (a) to administer all public Acts relating to the promotion or conservation of human health; (b) to advise local authorities in matters relating to environmental health; (c) to prevent, limit, and suppress communicable and other diseases; (d) to promote or carry out research and investigation in public health fields and the prevention and treatment of disease; (e) to carry out inspections of factories in relation to matters concerning the public health and the prevention or treatment of disease, and to carry out all such inspections as may be required or authorised by any Act; (f) to publish reports, information, and advice concerning public health; (g) to organise and control medical, dental, and nursing services, so far as such services are paid for out of public moneys; (h) generally to take all such steps as may be desirable to secure the preparation, effective carrying out, and co-ordination of measures conducive to public health; and (i) to provide advisory information and processing services to hospital boards and various health agencies.

Housing Corporation. The Housing Corporation is the chief government agency for providing finance for home ownership. It also provides home improvement loans, mortgage guarantees, and some refinance assistance.

Its other main function is the provision of publicly-owned housing. Activities include land acquisition and development, land sales, house construction, the management of its rental houses, sale of houses, loans and subsidy for pensioner accommodation, and urban development and redevelopment.

The corporation in its own right, or as agent, provides industrial loans and agency services including: administration of the Home Ownership Savings Act 1974; advances under the Family Benefit Capitalisation scheme; rehabilitation concessions to ex-servicemen; subsidies for hostel accommodation for young people; loans for hotel/motel/motor inn accommodation, private schools, medical centres.

Inland Revenue Department. The main function of the Inland Revenue Department is to assess and collect various taxes and duties. The principal of these is income tax which is collected in part by PAYE deductions from salaries and wages, in part by the payment of provisional tax during the year of

derivation of income, and in part by an end of the year assessment. Of the other revenues collected the most significant comprise stamp duty, estate and gift duties, land tax, fringe benefit tax, and totalisator duty. The department also collects accident compensation levies on behalf of the Accident Compensation Corporation.

Internal Affairs, Department of. The department carries out a broad range of functions, encompassing constitutional matters, and including local government, community development, aspects of social regulation, conservation activities, common services to government departments, and other responsibilities. The department attends to formal constitutional procedures in relation to Parliament and the Governor-General. As Clerk of the Writs the Secretary for Internal Affairs performs functions concerning the issue and return of writs for parliamentary general elections and by-elections. Associated functions include publication of the New Zealand Gazette, protection of flags, emblems, and names, and responsibilities for war graves, award schemes, and daylight saving. The department administers legislation relating to New Zealand citizenship and passports, horse and greyhound racing, gaming and lotteries, and film censorship. Through the Distinguished Visitors Branch, the department attends to the reception of guests of the Government and arrangement of State functions.

The Local Government Division is responsible for administrating legislation relating to regional and territorial local government and services Local Government Commission schemes. It also has responsibility for administering government policies and legislation in relation to the New Zealand Fire Service, for co- ordination of Government activities for the Chatham Islands, and for the general administration of Lake Taupo.

The Ministry of Civil Defence, in addition to its operational responsibilities, implements government policy for assistance to local territorial authorities in carrying out their civil defence obligations and for co-ordinating the planning and use of government resources in civil defence emergencies.

The Recreation, Arts, and Youth Division, incorporating the Ministry of Recreation and Sport, is responsible for administering government policies and legislation relating to cultural matters, the recreation and sport programme, and youth activities. It administers a large number of community funding programmes. The work of the Commonwealth Youth Programme within New Zealand is co-ordinated by the department. The New Zealand Lottery Board, the New Zealand Council for Recreation and Sport, the National Museum, the National Art Gallery, and the New Zealand Historic Places Trust are all serviced by the department. The National Archives and the Historical Publications Branch form part of the department.

The Wildlife Service, in addition to managing the wildlife resources of two acclimatisation districts, is responsible nationally for the protection of New-Zealand fauna. It administers legislation on recreational fishing, game hunting, and the conservation of native birds, terrestrial and freshwater invertebrates, and other wildlife species.

The department provides a translation service for government departments which is also available to exporters, and administers the cleaning of government offices. It attends to administrative matters relating to the office of the Governor-General and his staff, and to offices of Ministers of the Crown and Parliamentary Under-Secretaries. Meeting the costs of commissions of inquiry and carrying out administrative functions in respect to them are other responsibilities of the department.

Justice, Department of. The department's functions may be classified broadly under the headings: administration of Courts; registration of patents, land transactions, births, deaths and marriages; control of prisoners, probationers and parolees; law reform; commercial affairs (including administration of the Companies Act); electoral work; and administrative work for the many authorities and tribunals. The tribunals, authorities and committees serviced by the department help administer acts, or advise the government. The Department of Justice is responsible for the administration of 160 Acts of Parliament.

Labour, Department of. The principal responsibilities of the Department of Labour are to promote and maintain full employment through the provision of a complete employment and vocational guidance service, to ensure through the work of its field staff that workers are employed under safe and healthy working conditions, to assist and promote good industrial relations, and to collect and publish relevant information. In addition, it administers a complex variety of statutes; among the most important are the Industrial Relations Act, the Factories and Commercial Premises Act, the Construction Act, and those dealing with weights and measures, apprenticeship, training, immigration, dangerous goods, and explosives.

Lands and Survey, Department of. As the Government's major land administering agency, the department manages, controls, or is involved with the administration of about 10.3 million hectares of land, approximately 38 percent of New Zealand's land area. About 5.6 million hectares of this area

are Crown leasehold, 2.8 million hectares are national parks and reserves, 640 123 hectares are being developed for farming purposes, and the balance falls into a variety of categories (mountain tops, vacant Crown land, lake and riverbeds, etc.).

The department is also the national survey and mapping organisation, thus providing economic and effective co-ordination of all activities. This work includes control surveys as the basis for cadastral surveys and basic topographic mapping, land title surveys, large scale topographical surveys for engineering and management purposes, land development servicing, fixing of marine and air navigation aids, aerodrome obstruction surveys, earth deformation studies, and environmental planning of land.

The department was dis-established in this form during 1986 as part of the re-organisation of environmental administration.

Maori Affairs, Department of. The functions of the Department of Maori Affairs are to assist the Maori and Pacific Island peoples, particularly in social, economic, and cultural matters. For example, Maori land owners are assisted by the way of title reform and capital advances to make full use of their resources, and through its Community Services Division, the department gives encouragement in the fields of education, employment, housing, and health.

Police, New Zealand. The mission of the Police is protecting life and property; preventing crime; maintaining the peace; and detecting offenders by assisting and working together with the community and other agencies; and by maintaining a police organisation capable of providing a high quality of service.

Post Office. The Post Office is charged with the operation and development of postal and telecommunications systems, both internal and overseas; the Post Office Savings Bank is charged with carrying out banking and banking related services with particular emphasis on the encouragement of savings. As a result of an expenditure review by the Government in 1986, a major restructuring of the Post Office is to be undertaken.

Prime Minister's Department. The Prime Minister's Department was established as a separate department in 1975. Within the department, the Cabinet Office is responsible for servicing Cabinet, its committees, and the Executive Council. The Press Office is responsible for news media and public information relating to the Prime Minister and the general co-ordination of ministerial publicity. The staff of the Office of the Prime Minister provides the normal ministerial services. The Advisory Group advises the Prime Minister on policy matters referred to it. The External Intelligence Bureau functions as a research organisation in the general field of international affairs, and receives direction and policy guidance from the New Zealand Intelligence Council.

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

Railways Corporation, New Zealand. In 1982 the New Zealand Government Railways Department became the New Zealand Railways Corporation. The objectives of the corporation are: (a) to establish, maintain, and operate, or otherwise arrange for, safe and efficient rail freight and passenger transport services within New Zealand; (b) to establish, maintain, and operate, or otherwise arrange for, safe and efficient road passenger and freight transport services within New Zealand; (c) to establish, maintain, and operate, or otherwise arrange for, a safe and efficient ferry service for freight including the carriage of passengers and vehicles between the North and South Islands; (d) to provide or otherwise arrange for those ancillary services which, in the opinion of the corporation, are necessary for it to efficiently carry out its functions; and (e) to endeavour to carry on the operations of the corporation in such a way that revenue exceeds costs, including interest and depreciation; and to provide for a return on capital that may be specified from time to time by the Minister of Finance.

Rural Banking and Finance Corporation. The Rural Banking and Finance Corporation was established in 1974 with the principal function of making loans and providing other assistance for farming and other primary industries and for related service industries.

Scientific and Industrial Research, Department of. The department's role is to contribute to the economic, social, and cultural development of New Zealand through the application of science and technology. Several major areas of DSIR research are described below.

Agriculture—Agriculture and horticulture are high priority areas, as they are the mainstay of the country's economy. Increasing emphasis is placed on: (a) new crops, including those suitable for irrigated land and mechanical harvesting, to meet the demands of the rapidly expanding food processing industry; (b) the breeding of new and better varieties of pasture, particularly for hill country farming; (c) pests and disease control; and (d) the storage, processing, and packaging of agricultural and horticultural products.

Manufacturing—Particular emphasis is given to improved industrial liaison and advisory services, electronic and electrical work, metal cutting and forming, industrial vibration and acoustic problems, and new product development.

Minerals—Continuing emphasis is given to prospecting, finding new uses for, and testing the processing of, local raw materials with a view to substantially increasing the “added value” component before export.

Energy—Aspects of prospecting for, and storage and processing of, energy resources are investigated. Advice is given on building and maintenance of energy-generating installations and on efficiency of use and conversion of energy in building and appliances. Processes for production of motor fuels from crops, coal, and wastes are being developed and tested, including economic aspects. Emphasis is being given to investigating the extent and possible additional utilisation of indigenous energy resources such as coal, natural gas, oil, and geothermal steam.

Natural Environment—Surveys arc made of geology, soils, oceanography, freshwaters, flora, and fauna. Studies involve the environmental impact of major development proposals, including pollution problems.

Other Scientific Services—There are increasing demands for scientific services from the Department of Health (food and drug analysis), the Ministry of Transport (blood alcohol analysis), and the Police (forensic). Publications include 7 research journals for New Zealand scientists and technologists, and a variety of books, booklets, and leaflets for scientists, technologists, industrial users, students, and the general public.

Social Welfare, Department of. The principal functions of the Department of Social Welfare are: (a) to administer the Department of Social Welfare Act 1971; the Children and Young Persons Act 1974; Part I and Part III 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; the Rehabilitation Act 1941; and the Disabled Persons Community Welfare Act 1975; (b) advise the Minister on the development of social welfare policies; (c) provide such social welfare services as the Minister may from time to time direct; (d) provide for the training of persons to undertake social welfare activities; (e) maintain close liaison with and encourage co-operation and co-ordination among any organisations and individuals engaged in social welfare activities; and (f) undertake and promote research into aspects of social welfare.

State Insurance Office. The State Insurance Office transacts all classes of fire, accident, and marine insurance in New Zealand. Its function is to maintain a competitive insurance service.

It also administers the Export Guarantee Office, which provides credit insurance for exporters.

Statistics, Department of. The main functions of the department are: (a) to provide an on-going statistical service relevant to the needs of governmental and community users, covering economic, demographic and social activity; (b) to advise the Minister of Statistics on statistical policy matters; (c) to define and promote standard concepts, procedures, definitions and classifications for use in official statistics; (d) to examine proposals by government departments for commencing or commissioning new statistical surveys, and to prepare submissions to the Minister of Statistics for approval or otherwise; (e) to review the collection, compilation, analyses, abstraction, and publication of official statistics produced in both the department and other government departments; and (f) to maintain liaison with international organisations or agencies requiring or making use of New Zealand official statistics.

Pay Research—The Pay Research Unit conducts statistical surveys of the remuneration and conditions of employment of appropriate sections of the labour force in the private and public sectors for legally defined purposes associated with State Services pay-fixing procedures.

Tourist and Publicity Department. The main functions of the Tourist and Publicity Department are to promote travel to, within, and beyond New Zealand; to develop domestic tourism and to stimulate off-season travel; to promote New Zealand overseas in the interests of tourist industry development; to administer schemes for financial assistance for the provision of accommodation and other tourist facilities and for expanding private sector marketing overseas; to undertake research into overseas tourism markets and into domestic tourism; to operate and sell tours and to provide a complete travel service to assist overseas travel agents; and to provide, within New Zealand, information and publicly services for Ministers and government departments. In order to provide these services, the department includes the National Film Unit, the National Publicity Studios, and the Information and Publicity Services Division. It also provides research services for the New Zealand Tourism Council, an advisory body established in 1982 to report and make recommendations to the Minister of Tourism on all aspects of tourism.

Trade and Industry, Department of. The principal statutory functions of the Department of Trade and Industry are to promote and encourage the improvement and development of industry and commerce within New Zealand and to promote and encourage its export trade with a view to fostering the economic welfare of the country.

Transport, Ministry of. The Ministry is responsible for providing the Government with the information and advice necessary for the development of an efficient and economic transport policy. The principal objective of the Road Transport Division is to develop, implement, and manage a range of programmes that will achieve a safe, efficient, and economic system of road transport. The main objective of the Marine Division is to promote the safety of shipping in and beyond New Zealand waters, to ensure the safe handling of cargo at New Zealand ports, and the safe operation of boilers, pressure vessels, cranes and lifts throughout New Zealand. The objective of the Civil Aviation Division is maintenance of the existing high standards of civil aircraft operation. The Ministry will continue its programme of providing improved facilities associated with the safe operation of aircraft, particularly in regard to navigation aids, surveillance radars, aircraft and airport security, and supervision of flying activities. The Meteorological Service is responsible for providing information and advice to all sections of the community on the atmosphere, environment, weather, climate conditions, and pollution of the air. It also promotes meteorological research and atmospheric science, and advises the Government on meteorological matters.

In addition to these operating divisions the Ministry has an Economics Division which provides advice on the efficient used of resources in the transport sector; a Policy Division to formulate, evaluate, and implement co-ordinated transport policies; and a Corporate Services Division, which provides the corporate and support services necessary to the whole Ministry.

Treasury. The principal functions of the Treasury are to provide information and policy advice to the Government on economic and financial issues, and to control the receipt and payment of the Government's finances. Specialist functions are also carried out by the Treasury. The Superannuation Division administers the Government Superannuation Fund and the National Provident Fund. The Government Actuary's Office provides services for the management of the Government Superannuation Fund, registered Friendly Societies, and government departments as required. The Government Actuary is also the Registrar of Building Societies. The Government Stores Board is the central controlling agency for the purchase, custody, and disposal of government stores.

Valuation Department. The major activity of the department is to prepare valuation rolls for all districts in New Zealand, to keep these rolls up to date with changes in property holdings, ownership, occupancy, and development, and to revise the values at not more than 5-yearly intervals. Between the 5-yearly general revaluations current market values of individual properties are assessed as required. Values set by the department are used by other authorities to levy rates, land tax, estate, stamp and gift duties, and also by most Government departments and agencies involved in land transactions. The department does research work on real estate markets and compiles section and house price indexes. It provides an advisory service to local authorites on all matters relating to rating. The department's extensive property record system is used to furnish data for land use, town planning and similar surveys to both local authorities and other public sector organisations.

Women's Affairs, Ministry of. The Ministry has the functions of: (i) advising the Minister of Women's Affairs on the implications of the Government's policies and public sector plans and expenditure programmes in terms of their differential impact on women; (ii) monitoring and initiating legislation and regulations in order to promote equality of opportunity for women; (iii) advising the Minister of Women's Affairs of suitable nominees for the appointment of women to statutory bodies and other quasi-governmental bodies; and (iv) advising the Minister of Women's Affairs on any matter relevant to the implementation of the Government's Manifesto where this has implications for or explicitly refers to women.

Works and Development, Ministry of. In addition to the carrying out of Government works, the ministry has responsibility under the Minister's direction for executing projects and undertakings of national significance. Its objectives include the investigation, design, construction, operation, and maintenance of these works, having due regard to standards and costs, and the best practical means whereby environmental conditions can be conserved, restored, or enhanced. In most cases, completed works are taken over for operation and maintenance by operating departments such as the Electricity Division of the Ministry of Energy, and New Zealand Railways.

Further roles of the department include the development of natural resources and the encouragement, investigation, and co-ordination of proposals for regional planning, as well as the task of assembling information on the building and construction industries, and the programming of national capital formation including government works.

Specific statutes administered by the department include the Public Works Act 1981 (which, inter alia, provides the Crown and local authorities with land acquisition powers), the Town and Country Planning Act 1977, the National Development Act 1979, the National Roads Act 1953 (the department services the National Roads Board), the Soil Conservation and Rivers Control Act 1941, the Water and Soil Conservation Act 1967 (which involves the department in water allocation and quality control activities), and some local Acts.

Re-organisation of environmental administration. The Government is undertaking a re-organisation of environmental administration.

In brief the changes, which will be operative by 1 January 1987, include: the establishment of a Ministry for the Environment, a Parliamentary Commissioner for the Environment, a Department of Conservation, a Land Development and Management Corporation, a Forestry Corporation, a Ministry of Forestry, and a Department of Survey and Land Information; the dis-establishment of the Commission for the Environment, the Department of Lands and Survey and the New Zealand Forest Service as they currently exist; and a transfer of functions and staff in a number of other government departments, particularly the Department of Internal Affairs, which will transfer the Wildlife Service and the Historic Places Trust to the Department of Conservation.

Non-departmental public bodies (Quangos) In addition to the State Service organisations there is a multitude of corporations, companies, committees, tribunals and other organisations loosely connected to Government.

They are popularly known as quangos (quasi-autonomous non-government organisations) and include: (a) public corporations and companies in which the Government has a major shareholding, e.g., the New Zealand Steel Refining Company; (b) agricultural marketing boards; and (c) other non-departmental public bodies such as: (i) bodies with executive, administrative, regulatory or commercial-type functions; (ii) bodies whose role is to advise ministers or departments; and (iii) tribunals and other judicial bodies.

These types of organisation have been established for various reasons such as: independence from political control and direct ministerial responsibility; freedom from departmental procedures and controls; impartiality in carrying out regulatory functions; participation of non-departmental personnel in advisory and decision-making functions; and representation of special interests in administration. The Government conducted a review of quangos in 1986, and identified a number to be terminated.

Table 3.12. STATUTORY BODIES, BOARDS, AND COMMITTEES

Grouped according to the government department responsible for the administration of the legislation or the servicing of the boards.
Agriculture and Fisheries, Ministry of
Agricultural Pests Destruction Council.
Animal Ethical Committees (6).
Animal Health Advisory Committee.
Animal Remedies Board.
Apiaries Advisory Committee.
Apple and Pear Marketing Board.
Apple and Pear Prices Authority.
Berryfruit and Marketing Licensing Authority.
British Phosphate Commissioners.
Christmas Island Phosphate Commission.
Committee of Enquiry into Sheep Teeth Diseases.
Dairy Factory Managers' Registration Board.
Dairy Industry Bursary Selection Committee.
Dairy Industry Loans Council.
Dairy Products Prices Authority.
Fisheries Authority.
Fishing Industry Board.
Freshwater Fisheries Advisory Council.
Fruit Distributors' Ltd.
Game Industry Board.
Hop Marketing Committee.
Horticultural Export Development Committee.
Interdepartmental Committee on Nassella Tussock Control.
Marine Reserves Boards (2).
Market Development Committee (Lamb).
Marlborough Nasella Tussock Board.
Maximum Security Quarantine Advisory Committee.
Meat Export Prices Committee.
Meat Hygiene Advisory Committee.
Milk Appeal Authority.
National Animal Ethics Advisory Committee.
National Fisheries Management Advisory Committee.
National Hydatids Council.
New Zealand Dairy Board.
New Zealand Kiwifruit Authority.
New Zealand Meat Producers Board.
New Zealand Milk Board.
New Zealand Pork Industry Board.
New Zealand Potato Board.
New Zealand Poultry Board.
New Zealand Sheepplan Council.
New Zealand Wool Board.
New Zealand Wool Testing Authority.
North Canterbury Nassella Tussock Board.
Noxious Plants Council.
Nursery Stock Research Extension Advisory Committee.
Pesticides Board.
Phosphate Commission of New Zealand.
Plant Variety Rights (Roses) Advisory Committee.
Poultry Research Committee.
Raspberry District Committees (4).
Raspberry Marketing Council.
Seed Potato Certification Advisory Committee.
Taratahi Cadet Training Centre (Wairarapa) Trust Board.
Taratahi Cadet Training Farm Trust Board.
Vegetable Research Extension Advisory Committee.
Veterinary Services Council.
Veterinary Surgeons' Board.
Winchmore Advisory Committee.
  Broadcasting Corporation of New Zealand
Broadcasting Complaints Committee.
Broadcasting Tribunal.
          Customs Department
New Zealand Distillery Co. Ltd.
          Defence, Ministry of
Armed Forces Canteen Council.
       Education, Department of
Advisory Committee on the Teaching of the Maori Language.
Auckland Teachers' College Council.
Authority for Advanced Vocational Awards.
Central Advisory Committee.
Christchurch Teachers' College Council.
Council of University of Auckland.
Council of University of Canterbury.
Council of Lincoln College.
Council of Massey University.
Council of University of Otago.
Council of Victoria University of Wellington.
Council of University of Waikato.
Dunedin Teachers' College Council.
Education Authorities Employment Grading Committee.
Education Authority Appeal Authority.
Hamilton Teachers' College Council.
Integration Standing Committee.
Kindergarten Teachers' Appeal Board.
Maori Education Foundation.
Music Teachers' Registration Board.
National Advisory Committee on Maori Education.
National Council of Adult Education.
New Zealand Council for Educational Research.
New Zealand National Commission for UNESCO.
New Zealand Technical Correspondence Institute Council.
New Zealand Trades Certification Board.
Ngarimu V.C. and 28th (Maori) Battalion Memorial Scholarship Fund Board.
Otaki and Porirua Trusts Board.
Pacific Islands Polynesian Education Foundation.
Palmerston North Teachers' College Council.
Papawai and Kaikokirikiri Trust Board.
Primary Teachers' Appointment Appeal Board.
Protected Teachers' Appeal Board.
Royal New Zealand Foundation for the Blind.
School Certificate Examination Board.
Standing Committee on Relationships in Tertiary Education.
Teachers' Assessment and Classification Appeal Board.
Teachers' Court of Appeal.
Teachers' Disciplinary Board.
Technical Institute and Community College
Boards Employment Review Committee.
Tertiary Assistance Grants Appeal Authority.
Trustees of National Library.
Universities Entrance Board.
University Grants Committee.
Wellington Teachers' College Council.
          Energy, Ministry of
Boards of Examiners (2).
Coal Mines Council.
Coal Mining Industries Welfare Council.
Coal Supplies (Wholesale) Ltd.
Electrical Lineman Training Committee.
Electrical Registration Board.
Electrical Wiring Regulations Committee.
Energy Advisory Committee.
Greymouth Coal Ltd.
Guardians of Lakes (3).
Liquid Fuels Trust Board.
Maramarua Coal Fields Ltd.
New Zealand Energy Research and Development Committee.
Oil Stocks and Supply Advisory Committee.
55
Petroleum Corporation of New Zealand and Subsidiary Companies.
Roose Packaging Ltd.
Roosepak Distributors Ltd.
Rural Electrical Reticulation Council.
Waikato Carbonisation Ltd.
       Foreign Affairs, Ministry of
Advisory Committee on External Aid and Development.
       Government Printing Office
Government Printing Office Advisory Board.
         Health, Department of
Advisory Board on Health Services Computing.
Advisory Committee on Health Services Executive Manpower.
Advisory Committee on Hospital Board Funding.
Advisory Committee on Medical Manpower.
Advisory Committee on Smoking and Health.
Ambulance Transport Advisory Board.
Anaesthetic Mortality Assessment Committee.
Anaesthetic Technicians Training Committee.
Breast Milk Substitutes Committee.
Board of Health.
Central Standing Committee on Health Centres.
Children's Health Camps Board.
Civil Defence Medical Planning Committee.
Clean Air Council.
Committee on Drainage and Sanitary Plumbing.
Congenital Anomalies Advisory Committee.
Consultant Advisers in Pathology Committee.
Council of the Pharmaceutical Society,
Dental Benefits Central Advisory Committee.
Dental Council.
Dental Technicians' Board.
Dietitians' Board.
Drug Assessment Advisory Committee.
Drugs Advisory Committee.
Fluoridation Advisory Committee.
Food Standards Committee.
Hospital Medical Officers' Advisory Committee.
Hospital Services Committee.
Hospital Works Committee.
Hospitals Advisory Council.
Laboratory Officers Salaries Grading Committee.
Laboratory Services Advisory Committee.
Laboratory Services Fees Negotiating Committee.
Maternal Deaths Assessment Committee.
Maternity Benefits Negotiating Committee.
Medical Council of New Zealand.
Medical Laboratory Technologists' Board.
Medical Officers Salaries Grading Committee.
Medical Practitioners' Disciplinary Committee.
Medical Radiation Technologists' Board.
Medical Services Advisory Committee.
Medicines Adverse Drug Reactions Committee.
National Advisory Committee on Cancer Treatment Services.
National Technical Committee on Standards and Quality Control in Medical Clinical Laboratories.
New Zealand Council for Post-Graduate Medical Education.
Non-Treatment Services Staff Grading Advisory Committee.
Nosocomial Infections Advisory Committee.
Nursing Council of New Zealand.
Nursing Education Review Advisory Committee.
Nursing Manpower Planning Committee.
Nutrition Advisory Committee.
Occupational Health Advisory Committee.
Occupational Therapy Board.
Opticians Board.
Pharmaceutical Advisory Committee.
Pharmaceutical Benefits Negotiating Committee.
Pharmaceutical and Therapeutics Advisory Committee.
Physiotherapy Board.
Plumbers, Gasfitters, and Drainlayers Board.
Podiatrists' Board.
Psychologists Board.
Radiation Protection Advisory Council.
Radiographers' Salaries Grading Committee.
Radiological Services Advisory Committee.
Registrars' Review Panel.
Resident Medical Officers Establishment Committee.
Restricted Drugs Committee.
Review Committee.
Secretarial and Clerical Grading Officers' Grading Committee.
Senior Medical Officers' Overseas
Study Grants Selection Committee.
South Auckland Plunket Child Health Committee.
Special Dentist Manpower Advisory Committee.
Supervising Committee, Rotorua Island.
Supervising Committees: the Bridge (3).
Technical Standing Committee on Renal Dialysis.
Technicians Grading Advisory Committee.
Toxic Substances Board.
Transfusion Advisory Committee.
Treatment and Diagnostic Staff Grading Advisory Committee.
    Housing Corporation of New Zealand
Building Performance Guarantee Corporation of New Zealand.
Housing Allocation Committees (34).
National Housing Commission.
Rent Appeal Boards (4).
Rural Banking and Finance Corporation.
      Internal Affairs, Department of
ANZAC Fellowship Selection Committee.
Architects Education and Registration Board.
Architects Investigation Committee.
Fauna Protection Advisory Council.
New Zealand Historic Places Trust.
New Zealand Lottery Board and Distribution Committees (6).
New Zealand Fire Service Commission.
New Zealand Canteen Fund Board.
New Zealand Patriotic Fund Board.
New Zealand Racing Authority.
Norman Kirk Memorial Trust.
Totalisator Agency Board.
University of Hawke's Bay Trust.
War Memorial Board of Trustees.
Winston Churchill Memorial Trust Board.
Arts
Council for Maori and South Pacific Arts.
Cultural Facilities Advisory Committee.
Film Trade Board.
Films Censorship Board of Review.
Interim Committee for Conservation of Cultural Property.
Literary Fund Advisory Committee.
National Art Gallery, Museum and War Memorial Board of Trustees.
Queen Elizabeth the Second Arts Council of New Zealand.
Regional Arts Councils (3).
Civil Defence
National Civil Defence Committee.
National Civil Defence Planning Committees (11).
Local Government
Joint Council for Local Authority Services.
Local Government Commission.
Recreation and Sport
New Zealand Council for Recreation and Sport.
          Justice, Department of
Abortion Supervisory Committee.
Accident Compensation Appeal Authority.
Alcoholic Liquor Advisory Committee.
Contracts and Commercial Law Reform Committee.
Co-operative Dairy Companies Tribunal.
Copyright Tribunal.
Criminal Law Reform Committee.
Deportation Review Tribunal.
District Courts Rules Committee.
Equal Opportunities Tribunal.
Fire Service Appeal Authority.
Hotel Association of New Zealand Disciplinary Committee.
Hotel Investment Account Advisory Committee.
Human Rights Commission.
Indecent Publications Tribunal.
Inspectors of Licensed Premises.
Land Valuation Tribunals (20).
Law Reform Council.
Lay Members and Lay Observers.
Legal Aid Appeal Authority.
Legal Aid Board.
Licensing Control Commission.
Milk Appeal Authority.
Motor Vehicle Disputes Tribunals (3).
Pharmacy Authority.
Planning Tribunals.
Plant Varieties Appeal Authority.
Prisons Parole Board.
Property Law and Equity Reform Committee.
Public and Administrative Law Reform Committee.
Public Service Appeal Boards.
Race Relations Conciliator.
Real Estate Agents Licensing Board.
Registrar of Private Investigators and Security Guards.
Release to Work Committees.
Representation Commission.
Rules Committee.
Securities Commission.
Small Claims Tribunals (21).
Social Security Appeal Authority.
Taxation Review Authorities.
Tertiary Assistance Grants Appeal Authority.
Waitangi Tribunal.
Wild Animal Recovery Services Licensing Authority.
          Labour, Department of
Accident Compensation Corporation.
Agricultural Tribunal.
Aircrew Industrial Tribunal.
Arbitration Court.
Building Industry Technicians' Training Council.
Conscientious Objection Committee.
Construction Act Advisory Committee.
Dental Technician Training Council.
District Employment and Training Advisory Committees (19).
Forklift Safety Advisory Committee.
Higher Salaries Commission.
industrial Conciliation Service.
Industrial Mediation Service.
National Advisory Council on the Employment of Women.
Shop Trading Hours Commission.
Vocational Training Council.
Waterfront Industry Commission.
Waterfront Industry Tribunal.
    Lands and Survey, Department of
Bay of Islands Maritime and Historic Park Board.
Hauraki Gulf Maritime Park Board.
Hunter Soldiers Assistance Trust Board.
Land Settlement Board.
Marlborough Sounds Maritime Park Board.
National Parks and Reserves Authority.
National Parks and Reserves Boards.
Nature Conservation Council.
New Zealand Geographic Board.
New Zealand Survey Board.
New Zealand Walkway Commission.
Queen Elizabeth the Second National Trust.
       Maori Affairs, Department of
Board of Maori Affairs.
Maori Land Advisory Committees (10).
Maori Purposes Fund Board.
Maori Soldiers Trust Committee.
Maori Trust Boards (13).
Maori Land Court Rules Committee.
       New Zealand Forest Service
Indigenous Forest Timber Advisory Committee.
National Recreational Hunting Advisory Committee.
New Zealand Forestry Council.
Protected Areas Scientific Advisory Committee.
State Forest Parks Advisory Committees (18).
Timber Industry Training Centre Advisory Committee.
National Recreational Hunting Advisory Committee.
     New Zealand Security Intelligence Service
Commissioner of Security Appeals.
        Police Department
Police Appeal Board.
Police Promotion Board.
          Post Office
Post Office Appeal Board.
Post Office Classification and Grading Committee.
Post Office Promotion Board.
Post Office Sick Benefit Fund.
Post Office Staff Tribunal.
Radio Interference Advisory Committee.
         Railways Corporation
Government Railways Industrial Tribunal.
Grading Committee.
New Zealand Railways Corporation Appeal Board.
    Scientific and Industrial Research, Department of
Atomic Energy Committee.
Building Research Association of New Zealand Inc.
Carter Observatory Board.
Cawthron Institute Trust Board.
Coal Research Association of New Zealand Inc.
Fruit Research Advisory Council.
Hop Research Committee.
Meat Industry Research Institute of New Zealand (Inc.).
National Research Advisory Council.
New Zealand Dairy Research Institute.
New Zealand Fertiliser Manufacturers Research Association (Inc.).
New Zealand Heavy Engineering Research Association (Inc.).
New Zealand Leather and Shoe Research Association (Inc.).
New Zealand Logging Industry Research Association.
Potato Research Advisory Committee.
Research Institute of Textile Services.
Ross Dependency Research Committee,
Testing Laboratory Registration Council.
Tobacco Research Advisory Committee.
Wheat Research Committee.
Wool Research Organisation of New Zealand (Inc.).
      Social Welfare, Department of
Advisory Council for the Community Welfare of Disabled Persons.
Home Budgeting Advisory Committee.
National Advisory Committee on the Prevention of Child Abuse.
Social Advisory Council.
Social Science Research Fund Committee.
Social Security Appeal Authority.
Social Work Training Council.
War Pensions Board.
War Pensions Appeal Board.
War Pensions Medical Research Trust.
Rehabilitation Board.
Rehabilitation League New Zealand (Inc.)—Board of Management.
New Zealand Artificial Limb Board.
         State Insurance
State Insurance Investment Board.
       State Services Commission
Classification and Grading Committee.
Government Service Tribunal.
Health Service Committee.
Hospital Service Tribunal.
Public Sector Tribunal.
Public Service Appeal Board.
Security Review Authority.
Special Public Service Appeal Board.
State Services Co-ordinating Committee.
Wanganui Computer Centre Management Committee.
Wanganui Computer Centre Policy Committee.
    Tourist and Publicity Department
New Zealand Maori Arts and Crafts Institute.
New Zealand Tourism Council.
Tourist Hotel Corporation of New Zealand
     Trade and Industry, Department of
Commerce Commission.
Consumer Council.
Development Finance Corporation.
Emergency Protection Authority.
Export Guarantee Advisory Committee.
Industries Development Commission.
Motor Spirits Licensing Appeal Authority.
Motor Spirits Licensing Authority.
New Zealand Export-Import Corporation.
New Zealand Industrial Design Council.
New Zealand Wheat Board.
Regional Development Councils (15).
Standards Association of New Zealand
Standards Council.
Tobacco Board.
         Transport, Ministry of
Marine Council.
Maritime Appeal Authority.
New Zealand Committee on Pollution of the Sea by Oil.
New Zealand Ports Authority.
New Zealand Search and Rescue Committee.
Regional Transport Licensing Authority.
Road Traffic Safety Research Council.
Safe Driving Award Scheme Committee.
Small Boat Safety Committee.
Shipping Corporation of New Zealand.
Shipping Industry Tribunal.
Transport Advisory Council.
Transport Charges Appeal Authority.
Transport Licensing Appeal Authority.
Transport Licensing Authorities (3).
Urban Transport Council.
             Treasury
Bank of New Zealand Board of Directors.
Earthquake and War Damage Commission.
Government Stores Board.
Government Superannuation Board.
Income Tax Appeal Authorities (3).
Local Authorities Loans Board.
National Provident Fund Board.
New Zealand Planning Council.
Overseas Investment Commission.
Overtime and Shift Work Recognition Authority
Reserve Bank of New Zealand.
Trustee Savings Banks (12).
Taxation Review Authority.
Visiting Experts Advisory Committee.
       Valuation Department
Valuers Registration Board.
    Works and Development, Ministry of
Building Industry Advisory Council.
Clerks of Works Registration Board.
Engineering Associates Registration Board.
Engineers Registration Board.
National Roads Board.
National Water and Soil Conservation Authority.
Quantity Surveyors' Registration Board.

Official information

The Official Information Act 1982 gives effect to the principle that information shall be made available unless there is good reason for withholding it. It establishes a flexible mechanism, capable of contributing to and being responsive to changing attitudes and circumstances, and leading to increased availability of information. The purposes of the Act are: (a) to increase progressively the availability of official information to the people of New Zealand in order—to enable their more effective participation in the making and administration of laws and policies; and to promote the accountability of Ministers of the Crown and officials—and thereby to enhance respect for the law and to promote the good government of New Zealand; (b) to provide for proper access by each person to official information relating to that person; and (c) to protect official information to the extent consistent with the public interest and the preservation of personal privacy.

The Act covers ail government departments, with the exception of the Parliamentary Service, and some 140 organisations, but it does not include a Court; a Tribunal, in relation to its judicial functions, and some other judicial bodies.

The Act provides special rights of access to personal information, which means any official information held about an identifiable person. A “person” is defined as including a corporation sole and also a body of persons, whether corporate or unincorporate. Where it is necessary to make a distinction between an identifiable individual human being, and those other entities legally described as “persons”, the former is referred to as a “natural person”.

Access to personal and official information. A request for personal information is a particular form of request for official information and a legally enforceable right of access to it is conferred by the Act. It gives the right to know what information is held by an agency about an individual, the right to be able to correct that information and to know the reasons for a decision made by an agency about the individual, and the rules under which decisions are made.

Access to official information is available to a New Zealand citizen, a permanent resident of New Zealand, or a body corporate which is incorporated in New Zealand. Right of access to personal information is available to a New Zealand citizen, a permanent resident or a person who is in New Zealand, or a body corporate incorporated or carrying on business in New Zealand. The Act places an onus of responsibility on the suppliers of personal information to satisfy themselves concerning the identity of the applicant, and to ensure that it is only received by the person concerned or their authorised agent.

Withholding information. In legislating for increased openness in the release and dissemination of information, Parliament recognised that there may be good reasons for withholding some information. The criteria which may justify not releasing information are set down in Sections 6 to 9 of the Act and cover information the release of which would be likely to prejudice: (a) the security, defence or international relations of New Zealand; (b) the entrusting of information to the Government of New Zealand on a basis of confidence by the government or a government agency of another country, or any international organisation; (c) the maintenance of law and order; (d) the economic interests of New Zealand; the Cook Islands, Tokelau, Niue, or the Ross Dependency; and (e) competitive commercial activities. Section 9 sets out other good reasons for withholding official information unless in the circumstances of the particular case the withholding of that information is outweighed by other considerations which render it desirable in the public interest to make that information available.

Applications for access. Every request for access to information must be dealt with on its merits, and there is clearly scope for review of decisions as circumstances change. An important point to note is that political sensitivity, embarrassment or shame are not listed as possible reasons for withholding information.

Requests for information do not have to be made in any prescribed form; they may be made by telephone, in person or in writing. Requests should however provide sufficient detail to allow the relevant material or documents to be identified. Sometimes applicants will need assistance with this task and the Act makes the provision of reasonable assistance a duty. Information guides concerning access to personal and official information are available.

To assist the lodging of requests, reference can be made to the Directory of Official Information, published annually, available at all public libraries and Citizen's Advice Bureaus. This gives a full list of all the organisations covered by the Act, their structure and function, a general description of all kinds of documents held; a list of all manuals, and similar types of documents which contain policies, principles, rules or guidelines, in accordance with which decisions are made; and how to obtain access to information including details of contact officers.

When a request for information is received a decision must be made as soon as possible. The general aim is to furnish either the information or indicate the likely response time within 7 days of a request.

Review by an Ombudsman. There is provision for the Ombudsman to review a decision to refuse information. There is no charge for the service and the investigation is conducted in private. The Ombudsman's formal recommendations are binding unless overridden by a Minister in accordance with a formal procedure. That procedure requires that where a Minister declines to accept an Ombudsman's recommendation, the decision, the grounds for it, and (except on the grounds of national security), the source and purport of any advice on which it was based are to be published in the Gazette. If an Ombudsman concludes that any complaint made under the Act cannot be sustained, he will explain his reasons to the complainant.

The Information Authority. The Information Authority is responsible for undertaking a continuing inquiry into and definition of categories of information which should be made available. The specific functions and responsibilities of the Authority give it 3 broad roles: regulatory, monitoring and a particular role in the field of personal information. The authority has a life of only 5 years, until 30 June 1988, in which to carry out its task.

Ombudsmen

The position of Parliamentary Commissioner for Investigations (Ombudsman) was created in 1962. Until 1968 the principal function of the Ombudsman was to enquire into complaints relating to administrative decisions of Government departments and related organisations. In 1968 the jurisdiction was extended to hospital boards and education boards and, under the Ombudsmen Act 1975, the jurisdiction was further extended to all local authorities. Under the 1975 Act, provision was made for the appointment of a Chief Ombudsman and one or more other Ombudsmen, whose appointments could be permanent or temporary.

Complaints to the Ombudsmen must be made in writing and investigations are conducted in private. An Ombudsman may decide not to investigate a complaint where there appears to be an alternative administrative avenue of redress available to the complainant; where the complaint relates to a matter which has been within the complainant's knowledge for more than 12 months; where the complaint is trivial or where the complainant has not a sufficient personal interest in the subject matter of the complaint. The Ombudsman has no authority to investigate certain complaints, for example, complaints against private companies and individuals, decisions of judges, complaints directed at decisions of Ministers of the Crown or at the full council or board of a local organisation. However, an Ombudsman may investigate recommendations made to a Minister by any government department, organisation or employee thereof or to a full council by any committee, sub-committee, officer, employee or member. An Ombudsman may not investigate a complaint where the complainant has a statutory right of appeal on the merits of the case to a Court or statutory tribunal unless there are special circumstances why it would not be reasonable to expect that person to have exercised that right of appeal.

Where an Ombudsman forms the opinion that a complaint can be sustained, he reports his opinion to the government department or government organisation concerned and any recommendation that he may make for remedial action. A copy of the report is also made available to the responsible Minister. In the case of a local organisation, the Ombudsman reports the opinion to that organisation and makes a copy of his report available to the Mayor or Chairman. Each Ombudsman reports annually to Parliament on the work of the office.

The Ombudsmen have also assumed certain responsibilities under the Official Information Act 1982. Under the Act, individuals and companies may request access to either official or personal (i.e., about the requestor) information from certain central government departments and organisations and Ministers of the Crown. On receipt of a written complaint an Ombudsman has a responsibility to investigate any decision made on a request for information: for example, a refusal of the whole or part of the request; or a decision on what charge is to be made for providing the information. An Ombudsman may also investigate undue delays in responding to requests.

Table 3.13. ANALYSIS OF COMPLAINTS TO THE OMBUDSMEN

Action on ComplaintYear Ended March 1985
Source: Office of the Ombudsmen.
Ombudsmen Act 1975
Declined, no jurisdiction189
Declined or discontinued s. 17519
Discontinued because complaint remedied207
Sustained, recommendation made29
Sustained, no recommendation made79
Not sustained487
Not pursued by complainant after explanation given192
Still under investigation as at 31 March437
              Total2,139
Official Information Act 1982
Declined, no jurisdiction13
Declined or discontinued s. 1797
Discontinued because complaint remedied165
Sustained, recommendation made59
Sustained, no recommendation made5
Not sustained82
Not pursued by complainant after explanation given18
Still under investigation as at 31 March136
              Total575

3.4 Judiciary and law

New Zealand has inherited a tradition of an independent judiciary, seen as a protection against unnecessary intrusion by the state in the lives of citizens. The Judicature Act 1908 contains a number of constitutionally significant provisions, designed to ensure the independence of the Judiciary. High Court Judges (including those who sit in the Court of Appeal) are appointed by the Governor-General. They have security of tenure and may not be removed from office except by Her Majesty the Queen upon an address of the House of Representatives. The Governor-General in Council may suspend a Judge upon such an address. He may also suspend a Judge while Parliament is not sitting but the suspension may continue in force only until the end of the next session.

The salaries of the Judges are determined by the Higher Salaries Commission under the Higher Salaries Commission Act 1977. Salaries may not be diminished during the continuance of the Judges' commission. No person may be appointed a Judge unless he or she has held a practising certificate as a barrister or solicitor for at least 7 years. The retirement age is 68, although former Judges may be re- appointed as acting Judges for 2 years, or 1 year if the Judge is 72.

The District Courts Act 1947 provides for the appointment and tenure of District Court Judges. They are appointed by the Governor-General, who may, if he or she thinks fit, remove a Judge for inability or misbehaviour. The convention against arbitrary removal ensures the independence of District Court Judges in the exercise of their judicial functions. The salaries of District Court Judges are also determined by the Higher Salaries Commission. Qualifications for appointment are similar to those for High Court Judges. The retirement age is 68. Retired Judges may be appointed from time to time by the Governor- General as acting Judges for a term not exceeding 2 years, or 1 year if the person has attained the age of 72.

The appointments, salaries, tenures, and retirement of judicial officers of specialist courts are those of High Court or District Court Judges depending on the ranking of the court in the hierarchy.

Hierarchy of courts

The hierarchy of courts of New Zealand consists of: Her Majesty the Queen in Council (the Judicial Committee of the Privy Council); the Court of Appeal; the High Court; and the District Courts. All courts exercise both criminal and civil jurisdiction.

Judicial Committee of the Privy Council. The Judicial Committee of the Privy Council is the final appeal tribunal for New Zealand. The Judicial Committee advises the Sovereign in the same way as it did when New Zealand was still a British colony. Most Commonwealth countries have abolished the right to appeal to the Judicial Committee. The right still exists in certain dependent territories (like Gibraltar and Hong Kong) and in the Bahamas, Barbados, Belize, Fiji, The Gambia, Jamaica, Mauritius, the Seychelles, Singapore, Trinidad and Tobago. The Judicial Committee is not an English court although its members are primarily eminent British judges. New Zealand Judges have sat on the Judicial Committee in recent years. The Judicial Committee acts like a court but it does not deliver a judgment. It submits its opinion on a case it has heard to the Sovereign. This is given effect to by an Order in Council. By constitutional convention the Sovereign is required to make the necessary order.

Appeals to the Privy Council may be brought by leave of the court appealed from, or by special leave of the Privy Council itself. Leave is granted as of right from any final judgment of the Court of Appeal, where the matter in dispute amounts to the value of $5,000 or more, or involves directly or indirectly some claim to property, or some civil right exceeding that value. The Privy Council has a discretionary power to grant special leave to appeal in criminal cases. Such leave is not commonly granted in criminal appeals from New Zealand.

Court of Appeal. The Court of Appeal is the highest appeal court in New Zealand. A Court of Appeal has existed since 1846. It is now constituted by the Judicature Amendment Act 1957.

The Court consists of the Chief Justice of New Zealand, who is a member by virtue of his office as the head of the Judiciary; a Judge of the High Court appointed by the Governor-General as a Judge of the Court of Appeal and as its President, and 4 other Judges of the High Court appointed by the Governor-General as Judges of the Court of Appeal. An additional Judge or Judges of the High Court may be nominated by the Chief Justice to sit on the Court of Appeal. The Judges of the Court of Appeal are also Judges of the High Court. They have seniority over all other Judges of that Court except the Chief Justice or the acting Chief Justice.

The Court of Appeal exercises an appeal jurisdiction only. Its primary function is to settle the law of New Zealand and to reconcile conflicting decisions of the Courts below. It hears and determines ordinary appeals from the High Court. Certain other proceedings in inferior courts may, by order of the High Court, be removed to the Court of Appeal.

The Court of Appeal may remit any proceedings pending before it to the High Court. All judgments, decrees, and orders of the Court of Appeal may be enforced by the High Court.

Criminal jurisdiction—The Court hears appeals against convictions and sentences imposed in the High Court or District Court. All appeals, except on a question of law, are by leave only. If it allows an appeal, the Court may quash the conviction, vary the sentence, or order the case to be retried.

The decisions of the Court of Appeal are final except where an appeal lies to the Judicial Committee of the Privy Council.

High Court. The High Court (then the Supreme Court) was first created in 1841. Its jurisdiction is very wide. The Judicature Act 1908 provides that it has all the judicial jurisdiction which may be necessary to administer the laws of New Zealand.

The High Court exercises jurisdiction in cases of major crimes, Admiralty rem proceedings, the more important civil claims, appeals from inferior courts and tribunals, and reviews of administrative actions. The High Court also has inherent jurisdiction to punish for contempt of court.

The High Court is now constituted under the Judicature Act 1908. It consists of the Chief Justice and 29 other Judges. The number of permanent Judges is prescribed by the Act. An additional Judge or Judges may be appointed, whenever the Governor-General deems it necessary by reason of the absence, or anticipated absence, of any of the Judges on leave preliminary to retirement. The Governor-General may also, at any time during the illness or absence of any Judge, or for any other temporary purpose, appoint any person (including a former Judge) to be a temporary judge for a period of no more than 2 years in the aggregate.

Administrative Division. The Judicature Amendment Act 1968 established the Administrative Division of the High Court. The division consists of no more than 6 Judges of the High Court who are assigned to the division by the Chief Justice. Lay persons may be appointed to sit as members of, or assessors with, the Administrative Division if any other Act makes provision for such appointments.

The Administrative Division has jurisdiction to deal with: (a) appeals which are to be heard and determined by it under any enactment (These are appeals from the decisions of a large number of administrative tribunals.); (b) proceedings other than appeals which are referred to it by any other enactment (More than 30 Acts confer jurisdiction on the Administrative Division); and (c) applications for orders of certiorari, prohibition or mandamus, declaratory judgments, orders or injunctions and applications for review under Part I of the Judicature Amendment Act 1972 which are referred to it from time to time by the Chief Justice.

Applications for review may be made where any person has exercised, refused or purported to exercise a statutory power or a statutory power of decision. The terms “statutory power” and “statutory power of decision” are defined in the Judicature Amendment Act 1972.

There is no appeal on fact or law from the decision of the Administrative Division, unless the statute conferring the right to appeal itself so provides.

Administration of the High Court. All the Judges are stationed in Wellington, Auckland, or Christchurch. The High Court travels on circuit to Whangarei, Hamilton, Rotorua, Gisborne, Napier, New Plymouth, Wanganui, Palmerston North, Blenheim, Nelson, Greymouth, Timaru, Dunedin and Invercargill. There is a High Court Office at Masterton, but the Court does not sit there. The Administrative Division of the High Court sits in Wellington only.

Table 3.14. JUDICIARY*

* As at 4 June 1986.

Judges of the Court of Appeal and High Court
    Chief Justice: Rt. Hon. Sir Ronald Davison, G.B.E., C.M.G.
    Court of Appeal: Rt. Hon. Sir Ronald Davison, G.B.E.. C.M.G. (ex officio); Rt. Hon. Sir Robin Cooke, President; Rt. Hon. I. L. M. Richardson; Rt. Hon. D. W. McMullin; Rt. Hon. E. J. Somers; Rt. Hon. M. E. Casey
High Court: Rt. Hon. Sir Ronald Davison, G.B.E., C.M.G.; Hon. J. P. Quilliam; Hon. M. F. Chilwell; Hon. J. A. Ongley; Hon. R. I. Barker; Hon. J. F. Jeffries; Hon. J. B. Sinclair; Hon. G. E. Bisson; Hon. A. D. Holland; Hon. T. M. Thorp; Hon. L. M. Greig; Hon. J. P. Cook, O.B.E., E.D.; Hon. R. C. Savage; Hon. M. Hardie Boys; Hon. J. H. Wallace; Hon. J. T. Eichelbaum; Hon. D. L. Tompkins; Hon. P. G. Hillyer; Hon. R. G. Gallen; Hon. J. S. Henry; Hon. R. A. Heron; Hon. A. A. T. Ellis; Hon. N. W. Williamson; Hon. R. P. Smellie; Hon. R. E. Wylie.

District courts. Unlike the High Court, which is one court for New Zealand, District Courts are established as separate entities in various localities.

The District Courts are constituted under the District Courts Act 1947, which limits the number of District Court Judges to 72. Judges are appointed by the Governor-General, who also appoints a Chief District Court Judge, who oversees the administration of the Courts and also sits in Court. District Courts have extensive civil and criminal jurisdiction. A number of District Court Judges are specially warranted to preside over jury trials in a number of criminal cases.

Justices of the Peace can sit as a District Court to hear a limited number of minor criminal charges. They deal with many prosecutions under the minor offences scheme. This is limited to offences which attract a maximum fine of $500.

Family Court Division. The Family Courts Act 1980 established Family Courts as divisions of the District Courts. The Governor-General appoints the Family Court Judges, who are also Judges of the District Court, and a Principal Family Court Judge.

The Family Court has jurisdiction to deal with dissolution of marriages, adoption, guardianship applications, domestic actions, matrimonial property, and similar matters.

The Family Court may state a case on a point of law to the High Court or transfer complex proceedings to that Court.

Specialist courts

In New Zealand there are a number of courts with specialist functions.

Report of the Inland Revenue Department (Parl. paper B. 23).

Arbitration Court. The Arbitration Court is constituted under the Industrial Relations Act 1973. It consists of the Chief Judge and not less than 2 other Judges, 2 or more members appointed on the nomination of the central organisation of employers, and 2 or more members appointed on the nomination of the central organisation of workers. The Judges of the Court are appointed from time to time by the Governor-General. Qualifications for appointment, tenure, retirement age, and determination of salary are the same as those applying to High Court Judges.

The Court has jurisdiction to settle disputes of interests, make awards, settle and determine disputes of right or any award or collective agreement referred to it, and deal with a number of other matters. The Court may state a case for the Court of Appeal on any question of law (other than any question as to the construction of an award or collective agreement). Any person dissatisfied with any decision of the Court (other than a decision on the construction of an award or collective agreement) as being erroneous in point of law, may appeal to the Court of Appeal by way of case stated for the opinion of that court on a point of law only.

Children and Young Persons Court. Under the Children and Young Persons Act 1974 the Governor-General may establish Children and Young Persons Courts. The jurisdiction of the Courts is exercised by specially warranted District Court Judges.

The Courts deal with every complaint under the Children and Young Persons Act relating to the care, protection, or control of a child or young person. The Courts have criminal jurisdiction to deal with offences committed by children and young persons except in cases of murder, manslaughter, and traffic offences not punishable by imprisonment.

Appeals from decisions of the Children and Young Persons Court and applications for review of guardianship and supervision orders may be brought to the High Court.

The Children and Young Persons Act is currently under review.

Maori Land Court and Maori Appellate Court. The Maori Land Court and the Maori Appellate Court are constituted under the Maori Affairs Act 1953. The Governor-General may from time to time appoint a Chief Judge and other Judges of the Court as may be required. The Judges of the Maori Land Court are also Judges of the Appellate Court. Three or more of the Judges have power to act as the Appellate Court. All Judges hold office during the pleasure of the Governor-General and retire at age 68. A retired Judge may be appointed as a temporary Judge for a period not exceeding 12 months. The Court has jurisdiction to deal with matters relating to Maori land. The Maori Land Court or the Appellate Court may state a case for the opinion of the High Court on any point of law arising in proceedings before it. The decision of the High Court is subject to an appeal to the Court of Appeal. A case stated for the opinion of the High Court may be removed to the Court of Appeal for rehearing. The decision of the High Court or Court of Appeal, as the case may be, on any case stated is binding on the Maori Land Court and the Maori Appellate Court.

Planning Tribunal. The Planning Tribunal is constituted by the Town and Country Planning Act 1977. It is a Court of Record and has all the powers of a District Court in the exercise of its civil jurisdiction in respect of adding and substituting parties, summoning witnesses, administering oaths, hearing evidence conducting proceedings, and maintaining order. The Tribunal consists of not more than 5 District Court Judges, each of whom must be a Planning Judge, and not more than 10 other persons. Every member is appointed by the Governor-General on the recommendation of the Minister of Justice, after consultation with the Minister of Works and Development, for a period not exceeding 5 years. From time to time the Governor-General appoints 1 of the Planning Judges to be the Principal Planning Judge of the Planning Tribunal. The Tribunal has jurisdiction to make decisions relating to the preparation, implementation and administration of regional and district planning, maritime planning and other matters. The Tribunal may state a case on a point of law for the opinion of the High Court. A party to proceedings before the Tribunal who is dissatisfied with any determination as being erroneous in point of law may appeal to the High Court by way of case stated for the opinion of the Court on a point of law only. All cases stated are heard by the Administrative Division of the High Court.

Table 3.15. HIGH COURT CIVIL JURISDICTION STATISTICS

YearNumber of Actions CommencedCases triedJudgment Recorded (Entered or in Cases Tried)Amount of Judgments
With JuryWithout JuryNumberAmount Claimed
     $(000)$(000)
19803,0691748170111,36410,030
19812,902838060421,95818,457
19823,292343370935,79916,816
19833,5251242166819,77811,383
19843,627336871217,40614,050

Court of Appeal—During 1983, 109 civil appeals were heard, of which 41 were allowed.

Table 3.16. DISTRICT COURTS CIVIL JURISDICTION STATISTICS

YearPlaints EnteredCases Disposed ofTotal Amount for Which Judgment Entered
NumberTotal Amount Sued forNumberTotal Amount Claimed
  $(000) $(000)$(000)
1980127,90473,78870,19929,88526,435
1981125,06179,62270,65935,23530,795
1982117,95398,66261,10329,42734.978
1983125,565107,14363,48049,55742,520
1984130,188110,34368,97054,33246,732

Sources of law The law of New Zealand consists of the common law, statute law enacted by the New Zealand Parliament, a small number of United Kingdom statutes and regulations, by-laws, and other forms of subordinate legislation.

The common law. The common law is sometimes referred to as case law or judge-made law. It is based on general rules developed by the courts in England over the centuries. It became part of the law of New Zealand in 1840. Like any living law the common law continues to develop. When applying the common law New Zealand courts take into account common law principles developed in New Zealand and in other parts of the Commonwealth, notably the United Kingdom, Australia and Canada. The common law can be abrogated or amended by statute law.

New Zealand statutes. Section 53 of the Constitution Act 1852 contains the basic grant and recognition of the New Zealand Parliament's law-making power. Over the years the power has increased. Parliament now has full power to make laws having effect in, or in respect of, New Zealand or any part thereof, and laws having effect outside New Zealand. The extra-territorial law-making power is rarely exercised except in relation to crimes committed aboard Commonwealth ships or aeroplanes or any ship or aircraft that arrives in New Zealand. There are no constitutional restrictions on the laws Parliament can enact.

United Kingdom statutes. A small number of United Kingdom statutes are still in force in New Zealand. They are those passed before 1840 (when New Zealand first became a British colony) which were applicable to the circumstances of the colony at that date, and statutes passed between 1840 and 1947 which extended to New Zealand expressly or by necessary implication.

In 1947 New Zealand adopted the Statute of Westminster of 1931. As a result the power of the United Kingdom Parliament to make laws for New Zealand can now be exercised only at the request, and with the consent of the New Zealand Parliament. This has not happened since 1947. Many United Kingdom statutes have been repealed or replaced by enactments of the New Zealand Parliament. A few of particular constitutional significance remain, the Magna Carta of 1297, the Petition of Right 1627, the Bill of Rights 1688, and the Act of Settlement 1700.

Subordinate legislation. A number of statutes empower the Governor-General in Council to make regulations. Local authorities and a number of other bodies may make by-laws in accordance with the relevant statutes. The Courts may examine regulations and by-laws and declare them invalid if they go beyond the limits prescribed by statute.

Civil jurisdiction

High Court. The High Court has original jurisdiction to hear and determine civil proceedings including: (a) proceedings in contract and tort; and (b) equity; (c) supervisory powers over inferior courts and tribunals; (d) wills and administration of the estates of deceased persons: (e) dissolution of partnerships and the taking of partnership accounts; (f) the sale and distribution of the proceeds of any property subject to a lien or charge; (g) proceedings relating to mortgages, leases, sale or partition of land, including specific performance of contract; (h) execution of trusts, charitable or private; (i) rectification, or setting aside, or cancellation of deeds or contracts; (j) proceedings relating to the insolvency of persons and companies; (k) family law (matrimonial property, and proceedings under the Family Protection Act and Aged and Infirm Persons Protection Act); (l) electoral petitions; (m) Admiralty; and (n) absconding debtors. The court was given power to issue declaratory judgments by the Declaratory Judgments Act 1908. In the exercise of its appellate jurisdiction the High Court hears appeals from the District Courts and from a number of Administrative Tribunals.

District Courts. The District Courts have jurisdiction to hear proceedings founded on contract or tort and other civil claims (including equitable claims) where the amount of the debt, demand, or damage or the value of the chattels claimed is no more than $12,000.

In proceedings for the recovery of land the courts have jurisdiction if the rent payable (if any) does not exceed $6,000 a year or where the value of the land does not exceed $50,000. The District Courts may hear proceeding involving a claim exceeding $12,000 if the parties agree in writing that the Court shall have jurisdiction to hear and determine the proceedings.

3.5 Human rights

Human Rights Commission. An Act to establish a Human Rights Commission and to promote the advancement of human rights in New Zealand in general accordance with the United Nations International Covenant on Human Rights was passed by Parliament in 1977. The Human Rights Commission, has the general functions of promoting, encouraging, and co-ordinating programmes and activities in the field of human rights, and the specific functions of investigating alleged breaches of the wide-ranging provisions against discrimination on grounds of sex, marital status, or religious or ethical beliefs set out in Part II of the Act. Part II also makes unlawful any discrimination on grounds of colour, race, or ethnic or national origin in a number of areas of activity not already covered by the Race Relations Act 1971. The membership of the commission consists of the Chief Human Rights Commissioner (the chairperson), the Chief Ombudsman, the Race Relations Conciliator, the Proceedings Commissioner, and up to 3 others appointed by the Governor-General on the recommendation of the Minister of Justice.

An Equal Opportunities Tribunal was constituted under the same Act. The Tribunal consists of a chairperson, who must be a barrister or solicitor of the High Court, and 2 other persons appointed by the chairperson for the purposes of each hearing from a panel maintained by the Minister of Justice. The principal function of the Equal Opportunities Tribunal is to adjudicate in civil proceedings brought by the commission alleging discriminatory practice under Part II of the Act.

Race Relations Conciliator. The Race Relations Act 1971 was designed to affirm and promote racial equality in New Zealand and implements the International Convention on the Elimination of All Forms of Racial Discrimination. Discrimination is unlawful on the grounds of colour, race, or ethnic or national origins in: (a) access by the public to places, vehicles, and facilities; (b) provision of goods and services; (c) employment (including employment of independent contractors); and (d) land, housing, and other accommodation. It is also unlawful to publish or display any advertisement or notice which indicates an intention to commit a breach of any of these provisions. The Act also makes it an offence to incite racial disharmony. A breach of any of the provisions may be the subject of an investigation by the office of the Race Relations Conciliator.

The role for the office of the Conciliator is in the field of education and in resolving situations where misunderstanding due to different racial backgrounds or concepts on the part of the parties has occurred. Potential racial incidents can often by avoided by education and conciliation. This extension of the conciliator's duties from an area confined to complaints and investigation of racial discrimination to one where discrimination may not have occurred, but where racial misunderstanding exists, is in keeping with the aims of the Act of affirming and promoting racial equality in New Zealand.

There are offices for receiving human rights and race relations complaints in Auckland, Wellington, and Christchurch.

Women

The 1985 edition of the Yearbook contained a special article: “New Zealand women: their changing situation, 1970-1984”.

Legislation establishing a Ministry of Women's Affairs was passed by Parliament in March 1985. The purpose of the Ministry is mainly advisory. A Secretary of Women's Affairs was appointed in June, and a Deputy Secretary in September 1985. The remaining 18 staff members were appointed by the end of April 1986.

At a series of forums held throughout the country at the end of 1984, women had the opportunity to discuss their priorities within the Government's Women's Policy and to put forward ideas regarding the Ministry of Women's Affairs. Some priority areas to emerge from these forums, and Government action in these areas, are outlined below.

Childcare. Support for a range and diversity of early childhood care and education facilities emerged as one of the top priorities at the forums. Quality childcare was seen as fundamental to women's aspirations, on the grounds that without adequate childcare women would never have equal access to employment nor equal opportunity to fulfil their potential. Statutory responsibility for childcare is being transferred from the Department of Social Welfare to the Department of Education in order to bring all early childcare and education services together in the same department. A Ministerial Forum on Early Childhood Care and Education took place in December 1985. Also in 1985 the Cabinet agreed in principle to the provision of childcare for public servants.

Employment. Flexible working hours, availability of part-time work, and job-sharing, was the overall top priority at the forums. The Cabinet has agreed in principle to permanent status being accorded to part-time positions in the public sector, and negotiations are underway to bring this into effect.

Violence against women. Concern about violence against women, and legislation relating to rape emerged as a top priority at the forums. While the number of women who have been victims of rape or sexual abuse in the family cannot be stated exactly, it has been estimated from research (conducted by Diana E. H. Russell overseas and Miriam Saphira in New Zealand) that approximately 1 in 4 women have been victims of rape or sexual abuse.

As a result of an extensive review of rape legislation, three Acts were passed in December 1985 which amended existing provisions relating to rape: the Crimes Amendment Act No. 3 1985; the Evidence Amendment Act No. 2 1985; and the Summary Proceedings Amendment Act No. 4 1985. These Acts broadened the definition of the offence of rape to include other forms of serious sexual violation, removed the immunity of spouses, and introduced measures to alleviate the stress of court proceedings for victims.

Growing concern about violence against women resulted in a national Conference on Family Violence in September 1985, which involved a range of relevant Government departments and organisations. It resulted in alterations to police procedures in domestic disputes, and proposed amendments to the Domestic Protection Act. Suggestions for co-ordinated work on family violence in the future were another outcome of the Conference.

A Ministerial Review of Women's Refuges was carried out during 1985-86, with the Secretary of Women's Affairs as one of the Review team.

Pornography. Another strong concern to emerge from the forums was pornography. There was concern about the proliferation of material which is demeaning and degrading to women, and which is likely to incite violence against both women and children. In 1986 the Government introduced a Video Recordings Bill, aimed at dealing with the availability of indecent or pornographic videos.

Other activities. Apart from the task of actually setting up a new government department, the Ministry of Women's Affairs has been active on a number of working parties covering topics as diverse as domestic violence, tertiary education assistance, parental leave, and breast prosthesis benefits. The Ministry has written submissions on issues such as the school curriculum, women's sport, nursing workforce planning, broadcasting, new birth technologies, public health nursing, and a national cervical screening programme.

The Ministry administers a Project Fund for women's projects, with a budget for the year 1986-87 of $50,000. Allocations for the fund are decided by an independent 8-woman committee.

Another Ministry function is the servicing of the Women's Appointment File, a computerised file of curricula vitae of women who are interested in being nominated for appointment to statutory boards. The file if operated by an independent committee of women's organisations, with administrative support from the Ministry.

3.6 Local government

Local government in New Zealand is characterised by 6 principles:

  1. Each local authority is established by Act of Parliament (either by its own special or local Act or, more commonly, by a public Act);

  2. Each local authority has its powers defined in the Act of Parliament under which it is established, and under other statutes that apply to local authorities generally;

  3. Each local authority has a specific district within which it operates;

  4. Each local authority is controlled by its own council;

  5. All local authorities, except for hospital boards and area health boards, rely on 1 or more of the following sources of funding—local taxes on land (rates), levies on other local authorities, and/or charges derived from trading utilities under their control. Hospital boards and area health boards are totally funded by central government;

  6. All local authorities are able to determine their own expenditure priorities and, except for hospital boards and area health boards, all local authorities are free to set their own overall levels of expenditure.

Local government in New Zealand does not involve itself in the funding, administration or management of education, social welfare, police, or urban fire services, and, except for a small number of specified urban areas, it does not involve itself in traffic control and enforcement. These services are either the responsibility of central government, or of specialised agencies closely associated with central government. For example urban fire services are provided for by the New Zealand Fire Service Commission, and education services are provided for through a variety of education boards and councils funded by central government. Neither the New Zealand Fire Service Commission nor the various education boards and councils are local authorities.

The emphasis in local government is on local accountability to electors. This precludes central government from becoming directly involved in local government decision-making, (although in the case of catchment authorities there is some central government involvement through representation on each catchment authority). It also means that the decisions of local authorities cannot be reviewed or overturned by central government. Although hospital boards and area health boards are funded from central government, they have always been locally responsible for the services they provide to meet the health needs of the population of their districts. With a population-based system of funding hospital boards and area health boards, greater emphasis has been placed on local decision-making and accountability, in which central government does not have a role to play.

Although central government is unable to review decisions made by local authorities, local government decisions are subject to other types of review. There is, for example, provision for the Ombudsmen to investigate complaints regarding specific instances of maladministration in local government. There is also provision for the Controller and Auditor-General to carry out investigations regarding any financial misconduct or conflict of financial interest that may occur either on the part of local government officers or elected members. Such investigations can, in certain circumstances, result in automatic forfeiture of office and/or prosecution in terms of the Local Authorities (Members Interests) Act 1968 or the Local Government Act 1974. There is further scope for review of local government decisions in a limited number of areas by means of appeal to various judicial tribunals or to the District Court. The Planning Tribunal acts as the appropriate appeal body on issues which concern land-use planning and related issues. Under the Local Government Act 1974 and related legislation, the District Court acts as an appeal body on some more minor issues relating to local government and property. Local authorities are subject to the general power of judicial review of the High Court. The Administrative Division of the High Court has jurisdiction to consider appeals from the District Court and from judicial bodies, such as the Planning Tribunal. In the case of the Planning Tribunal, appeals are only on points of law. In addition, the Administrative Division has general jurisdiction to consider applications for review arising from the exercise of any statutory power by any organisation, including any local authority. Under the Bylaws Act 1910 the Administrative Division of the High Court can quash or amend any bylaws of a local authority on the grounds that they are ultra vires of the local authority, or repugnant to the laws of New Zealand, or unreasonable.

The ability of a local authority to incur debts is also subject to control. All local authorities have been subject to loan-raising controls which are exercised by the Local Authorities Loans Board (a statutory board composed of 4 local government and 3 central government members). Since 1983, some local authorities and some categories of loans have been exempted by central government on the recommendation of the Local Authorities Loans Board. In addition, hospital, area health, and harbour boards are subject to capital expenditure controls. (In the case of hospital, and area health boards, these controls are exercised by central government, and, in the case of harbour boards, by the National Ports Authority.) However apart from hospital, area health, and harbour boards, local authorities in New Zealand are not subject to any capital expenditure controls other than the loan-raising controls already referred to. In practice, where central government wishes to influence the policies of local government, its only effective means of doing so is through appropriate subsidy and grant schemes, because local authorities finance most of their expenditure from rates, and trading charges.

Local government in New Zealand falls into 4 broad categories: (i) territorial local government; (ii) special purpose local government; (iii) regional local government; and (iv) community local government.

Territorial local government

Territorial authorities in New Zealand are directly elected general purpose authorities with responsibilities for roading, water supply, sewage disposal, rubbish disposal, parks and reserves, libraries, community development, land subdivision, land-use planning, pensioner housing, health and building inspection, urban passenger transport, parking meter enforcement and civil defence. The present system of territorial local government in New Zealand has evolved since the abolition of provincial government in 1876, when Parliament passed legislation which established a system of locally-elected general purpose territorial local authorities funded from local taxes on land (rates). Municipalities were provided for in urban areas, including 36 municipalities already in existence which had been incorporated under earlier legislation. The remainder of the North and South Islands, and Stewart Island, was divided into counties, although in the more sparsely settled counties it was intended that county councils would not be established immediately. The last of these designated counties to come under the control of a county council was Fiord County in 1981 when it was included in Wallace County. County councils have since been established for the Chatham Islands, Great Barrier Island, and Waihekee and nearby islands. Apart from some small usually uninhabited offshore islands, all of New Zealand is now covered by directly elected territorial local government—231 territorial authorities in total.

Territorial local government now comprises counties, district councils and municipalities. There are 3 classes of municipalities (boroughs, town districts and cities). All territorial authorities are now constituted under the Local Government Act 1974.

Counties. Counties are concerned with the needs of rural areas, and at 1 April 1986 there were 90 counties. The members of each county council are responsible for electing once every 3 years one of their number to be the chairperson.

Municipalities. Boroughs provide for the needs of concentrated populations and, until 1978, there had to be a population of at least 1500, with an average density of population of at least 1 person per 4000 square metres, before they could be constituted. In 1955, there were 146 boroughs in existence, but by 1 April 1986 there were 128 boroughs—this reduction having resulted from some boroughs being incorporated into adjoining boroughs or counties.

The town district represents a form of municipality for areas that had a certain concentration of urban population but not sufficient to justify the formation of a borough. Since 1978, no new town districts can be constituted, and there are now only 3 town districts in existence.

A city is in legal terms merely a borough which has a population of more than 20 000 and has been designated as a city by the Governor-General by Proclamation. In 1955 there were 15 cities (these being included in the figure of 146 boroughs already mentioned above) and in 1986 there were 27 cities (these being included in the figure of 128 boroughs already mentioned above).

Every borough and city has a mayor who is directly elected by the electors of the borough or city, while a town district has a chairman elected by the council of the town district. Apart from acting as the chairman at all meetings of the council, the legal powers of a mayor, which directly relate to the function of the borough or city are no greater than the powers of any other member of the council of a borough or city.

District councils. This form of territorial local authority was introduced by the Local Government Act 1974 in recognition that nowadays many territorial authorities are neither wholly urban nor wholly rural. District councils may now be constituted either by Local Government Commission schemes resulting in a merger of a county and a borough, or a county and a city, or by a borough council or county council deciding to become a district council. The Governor-General may by Proclamation designate a district under a district council to be a city if, in his opinion, it is predominantly urban and it has a population of not less than 20 000. As at 1 April 1986, there were 10 district councils. Eight of these districts comprise areas which have resulted in a merger of a separate county and borough, or a separate county and city. Some districts have a chairperson who is appointed in the same way as the chairperson of a county council. Other districts have a mayor who is directly elected by the electors of the district in the same way as the mayor of a borough or city.

Special purpose local government

Various special purpose local authorities have been established to carry out specific tasks thought to be beyond the capacity of territorial local authorities. Special purpose local authorities differ from territorial local authorities in that a special purpose local authority is charged with only one major function. In the majority of cases the boundaries of special purpose local authorities bear little relationship to the boundaries of the districts of territorial authorities in the same geographical area. Most special purpose local authorities include all or part of a number of territorial authority districts within their own district. Sometimes territorial authorities themselves are also constituted as, and perform the functions of, special purpose local authorities. The more important special purpose local authorities are those administering harbours, hospital services, the retail distribution of electricity, and soil conservation and rivers control (including management and allocation of water resources). Other special purpose local authorities are involved in water supply, urban drainage and transport, pest destruction, nassella tussock control, land drainage, and in some areas the liquor and hotel trade. (Territorial authorities also function as harbour boards in 8 cases, as pest destruction boards in 37 cases, and as electric power supply authorities in 23 cases.) Most special purpose local authorities are directly elected by the electors of the local authority's district, although a minority of special purpose local authorities are indirectly elected in that their membership involves representation from other local authorities that are themselves directly elected. Apart from catchment authorities, pest destruction and nassella tussock boards, there are no government representatives on any special purpose local authorities, or indeed on any other type of local authority.

The major categories of special purpose local authorities and the number involved in each category are: hospital boards and area health boards (29); electric power boards including 1 energy (electric power and gas) board (38); harbour boards (15); and catchment authorities (including the Waikato Valley Authority) (18). These categories of special purpose local authorities are found throughout New Zealand. Electric power boards and harbour boards are all directly elected local authorities. Of the 18 catchment authorities, 13 are directly elected catchment boards (although with some government representation not exceeding one-third of the membership of any catchment board), 4 are indirectly elected catchment commissions with the majority of their members appointed to represent constituent territorial authorities, and a minority of their members appointed to represent central government, and the remaining one is the Waikato Valley Authority, which is also indirectly elected in the same way. Catchment authorities are responsible for soil conservation and rivers control (including management and allocation of water resources).

In addition to the special purpose local authorities already mentioned, there are various minor categories of special purpose local authorities which are found only in some parts of New Zealand. These include 30 directly elected liquor licensing trusts (which are community controlled liquor and hotel businesses), 60 directly elected pest destruction boards, 2 directly elected and 2 indirectly elected urban drainage boards, 23 directly elected land (rural) drainage boards, 6 directly elected river boards (2 of which are also land drainage boards), 2 directly elected charitable lands trusts, 1 directly elected transport board, and 1 directly elected rural water supply board.

Regional local government. In 1963, the Auckland Regional Authority was established as a directly elected regional council to carry out a range of regional functions within the Auckland metropolitan area and its immediately adjoining rural hinterland. The functions carried out by the Authority include the operation of the Auckland International Airport, urban public passenger transport, regional planning, regional parks and reserves, regional urban water supply, regional drainage, regional refuse collection and disposal, regional roads, community development, regional civil defence, and assistance to beach patrol rescue services and the regional orchestra. The Auckland Regional Authority also carries out catchment authority responsibilities in its region.

The only other regional council is the Wellington Regional Council, established in 1980. The Regional Council carries out catchment authority responsibilities in its region. It is also responsible for regional planning, regional civil defence, regional parks and reserves, regional urban water supply, forestry and urban public passenger transport planning.

In the period 1977 to 1983, united councils were established under the Local Government Act 1974 in 20 regions. They were seen as providing a form of regional government for regions not warranting the expense of a regional council. Particular features of united councils, which distinguish them from regional councils are: (a) the membership of the united council is appointed directly by the territorial authorities of the region, not elected; (b) the finance of the united council is by way of levy on the territorial authorities of the region, rather than by rates; and (c) in addition, a united council must have the prior consent of the majority of territorial authorities in its region (having sufficient weighting in capital value, population and area) before it can take on any new function.

Most united councils also have their staff seconded to them by one of the territorial authorities of the region, which is known as “the administering authority”. Regional councils employ their own staff and resources.

Every united or regional council has 2 mandatory functions—regional planning (under the Town and Country Planning Act 1977) and regional civil defence (under the Civil Defence Act 1983). Besides the Local Government Act 1974 provides, with qualifications in some cases, that a united or regional council may undertake functions relating to regional reserves, forestry, regional roading, and community services. A united or regional council may, in certain circumstances, undertake the functions of any territorial authority or (where a special purpose local authority or the appropriate Minister of the Crown concurs) the functions of that special purpose local authority. A united or regional council is empowered to undertake exclusively any new regional function which is not undertaken by any other local authority in the region. A united or regional council may also 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.

The regions of the 20 united councils and the 2 regional councils (Auckland and Wellington) cover all of the country, except for Great Barrier Island County, which is not yet included in any region, and the Chatham Islands County, which, because of its isolation, is specifically excluded from the requirement to be part of a region.

Community local government

This form of participation in local government is subordinate to territorial local government. The Local Government Act 1974 provides for the establishment of “communities” within the districts of territorial local authorities. Since 1976, a community may be constituted only in an urban area within the rural part of a territorial authority district that is predominantly urban in character, or in an urban area within a territorial authority district that is predominantly rural in character, or in the whole of the area of one or more offshore islands forming part of a territorial authority district. These provisions are broadly in line with earlier provisions for county towns and county boroughs, and most communities are former county towns or county boroughs. However a number of towns in rural areas do not have community status, usually because they feel large enough for their interests not to be overlooked by their territorial authority.

Every community has either a district community council or a community council of not less than 5, nor more than 12 members, elected by residents and ratepayers for a 3-year term. The district community councils or community councils are legally committees of their parent territorial authority.

District community councils. The district community has direct representation on its parent territorial authority. By statute, 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. A district community council may be established only for a community with a population of not less than 1500. As at 1 April 1986 there were 15 district community councils.

Community councils. A community council does not have direct representation on its parent territorial authority. Community councils derive their powers by delegation from their territorial authority, at its discretion, but powers dealing with finance, staff and planning cannot be delegated. In addition to exercising such powers as may be delegated to it, the general purpose of a community council is to coordinate and express to the parent territorial authority the views of the community on any matter of concern to it, and to undertake, encourage and co-ordinate activities for the general well-being of the residents of the community. Although a community council does not have direct representation on its parent territorial authority, it is entitled to have one of its members present at meetings of the council of the territorial authority with speaking rights on issues relating to the community. As at 1 April 1985, there were 118 community councils.

Powers of local authorities

Local authorities derive their powers from the Act under which they are constituted. The Local Government Act 1974 is the main legislation for territorial authorities, as it is for united, regional, district community and community councils. Special purpose local authorities are constituted under other statutes.

There are also several statutes which are applicable to all local authorities, such as the Public Bodies Meetings Act 1962, the Local Authorities (Members Interests) Act 1968 and the Local Authorities Loans Act 1956. Other legislation applicable to territorial, regional and various other types of local authority includes the Rating Act 1967, the Local Elections and Polls Act 1976, the Public Bodies Leases Act 1969, the Town and Country Planning Act 1977, the Public Works Act 1981, the Reserves Act 1977, the Health Act 1956, the Local Authorities (Employment Protection) Act 1963 and the Joint Council for Local Authorities Services Act 1977.

A local authority's powers to levy local taxes on land (rates) are dealt with in chapter 27. A local authority can make bylaws within limits defined in its constituting Act. A special purpose local authority's bylaws are subject to approval by a Minister of the Crown. The bylaws of territorial authorities and regional councils (apart from fire bylaws) do not require the prior approval of central government if they have been made solely under the Local Government Act 1974. A local authority can promote Parliamentary legislation on matters which affect the government of the area under its jurisdiction, and it is not already empowered to deal with. If the subject is transient, not contentious, and approved by Government, it is usually dealt with by the inclusion of a section in the annual Local Legislation Act. If the local authority seeks permanent or major additional powers it must promote a local Bill. If approved by Parliament, the proposal then is enacted as a local Act. Twelve local Acts were passed in the 1984-85 Parliamentary session.

Local government elections

Under the Local Elections and Polls Act 1976, local government general elections are held on the second Saturday in October every third year, which falls again in 1986. All territorial authorities are responsible for conducting their own elections, as well as the elections of the special purpose local authorities, and regional, community, and district community councils for their districts.

Each territorial authority is required to use its electoral roll for regional council elections and community and district community council elections where applicable, and for the elections of all special purpose local authorities, other than land drainage boards, river boards, and pest destruction boards.

Where a territorial authority has a population of less than 70 000, it is required to choose once every 3 years, whether its council is to be elected with the whole district as one electorate; or, whether the district should be separate electorates (known as “wards” in cities and boroughs, and “ridings” in counties); or, if the elections could be held with some members of the council elected from the district as a whole, and others from separate wards or ridings. In this situation, if a territorial authority decides to divide its district into wards or ridings, the council has sole responsibility for determining the number of wards or ridings, and the area, population and representation of each. But where a territorial authority has a population of 70 000 or more, it is required to hold its elections on a ward basis as determined by the Local Government Commission. In the 1986 local government general elections, where a territorial authority had wards in 1983, it was able to use the same wards without a Local Government Commission determination.

The districts of 2 regional councils and most of the elected special purpose local authorities are divided into separate electorates, which usually coincide with territorial authority district boundaries. The electorates of regional councils and special purpose local authorities are determined on the basis specified in the various Acts of Parliament under which these authorities are constituted.

Voting procedures. Under the Local Elections and Polls Act 1976, any territorial authority may decide whether an election or poll is to be conducted by attendance at a polling booth or by post. If the election is by attendance at a polling booth, the authority may decide to conduct the election over a period of not more than 11 consecutive days instead of voting on a single day

The method of casting a vote is similar to parliamentary elections. The names of candidates are printed on the ballot paper and the elector must indicate on the paper the name of the candidate or candidates for whom he or she wishes to vote. The number of candidates chosen by the elector must not exceed the number of positions shown on the ballot paper. In addition an elector may not allocate more than 1 vote for any candidate, nor is there any provision for an elector to indicate a preference for any candidate.

Local authority franchise. With the passing of the Local Authorities (Elections, Polls and Voting Rights) Act 1986 the franchise for local government electors differs significantly from that described in the 1985 edition of the New Zealand Official Yearbook.

To be a local government elector a person must be a Parliamentary elector with an address within the relevant territorial authority district. Territorial authorities are still responsible for compiling their own district electoral rolls, but the data for these rolls now must be taken from the computerised parliamentary electoral data base. To enable this to be done, the Local Authorities (Elections, Polls and Voting Rights) Act 1986 has provided that any person who is a parliamentary elector in respect of a given address is now automatically a local government elector in respect of that same address. The effect of this has been to do away with ratepayer voting qualifications, with the exceptions mentioned below, and the requirement that people often had to enrol separately for local government as well as parliamentary elections.

The franchise provisions outlined above apply to territorial authorities, community and district community councils, regional councils, and all special purpose local authorities, other than pest destruction, and land drainage and river boards. For pest destruction, and land drainage and river boards the ratepayer franchise still remains.

Membership of local authorities. Since the passing of the Local Authorities (Elections, Polls and Voting Rights) Act 1986 any person who is a parliamentary elector anywhere in New Zealand may stand for election for the council of any local authority, although he or she cannot stand for election in more than one constituency of the same local authority district. The only exceptions are pest destruction, land drainage and river boards and licensing trusts where eligibility is still restricted to electors of the authority's district. Depending on the Act of Parliament under which the local authority is constituted, vacancies in the elected membership of the council of the local authority may be filled by either election or appointment. In the case of a territorial authority or a regional council, a petition by 5 percent of the electors of the district is sufficient to require the territorial authority to hold a by-election. In the case of most special purpose local authorities any vacancy in membership is filled by appointment by the territorial authority or territorial authorities whose districts comprise the special purpose local authority electorate in respect of which the vacancy exists.

In recent years there has been an increase in the number of women who are mayors, chairpersons and members of councils of local authorities. With the holding of the 1983 local government elections women held 22 percent of the total membership of municipalities, and 9 percent of the total membership of counties and districts.

Remuneration of members. The remuneration of members of councils of local authorities is governed by the Acts of Parliament constituting the various types of local authorities. Most local authorities pay their chairperson an annual allowance with a maximum fixed for each type of authority, while their other members are paid an allowance on a 'per meeting' basis. The Local Government Amendment Act 1985 provides for the chairperson of all major united and regional councils and the chairpersons and mayors of all major territorial authorities to have their maximum or actual annual allowances determined by the Higher Salaries Commission. This provision also requires the Higher Salaries Commission to determine the maximum or actual annual allowance of the chairperson of 1 harbour board, 1 hospital board, 1 electric power board and 1 catchment board. These determinations will become the basis for separate determinations which will set the maximum or actual allowances and meeting allowances of the chairpersons and members of each category and size of local authority.

Local government reform

To promote reform of the structure of local government, a Local Government Commission was first established in 1946. The present Local Government Commission, established under the Local Government Amendment Act 1985, comprises a chairman and between 3 and 5 other members appointed by the Minister of Local Government. Provision has also been made for appointment of temporary members by the Minister at the request of the commission.

The Local Government Commission undertakes investigations, prepares schemes, and makes recommendations and reports for the purpose of ensuring that:

  1. The system of local government in any local authority district best provides for the needs and well-being of its residents and the continued development of the district;

  2. Local authorities have such district boundaries and such functions and powers as enable them to provide most effectively and economically, essential or desirable local government services and facilities;

  3. Local authorities have such resources as enable them to engage adequate services and to obtain and operate adequate technical facilities, plant and equipment; and

  4. Districts are of such a size and nature as will promote efficient local government and avoid the necessity of uneconomic expenditure.

The legislation sets out procedures to guide the Local Government Commission, with emphasis being placed on consultation on proposals at an early stage, prior to formulating a provisional scheme. After the hearing of objections to a provisional scheme, the commission may draw up a final scheme. A commission scheme may provide for the union of local authority districts, the constitution or abolition of any district, the adjustment of boundaries, or a transfer of functions from one local authority to another. A particular feature is provision for the appointment of conciliators by the commission to inquire into and negotiate on a proposal for a scheme, prior to any provisional scheme procedures being initiated.

The Local Government Act 1974, as originally enacted, brought all special purpose local authorities (other than hospital boards, licensing trusts and charitable lands trusts) within the jurisdiction of the Local Government Commission. An amendment in 1976, however, removed the automatic jurisdiction of the commission in relation to special purpose local authorities, so that it may now include these local authorities in a provisional scheme only where the appropriate Minister of the Crown or the special purpose local authorities concerned are agreed.

All Local Government Commission final schemes are implemented either by Order-in-Council, or Act of Parliament to amend or repeal a special or local Act where necessary.

3.7 National emblems and anthems

New Zealand flag. Under the Flags, Emblems, and Names Protection Act 1981 the flag hitherto known as the New Zealand Ensign was declared to be the New Zealand Flag, the national flag of New Zealand. It is the symbol of the Realm, Government and people of New Zealand. The basis of the New Zealand Flag is the Union Rag (Jack) in the upper left quarter, and on a blue ground to the right the Southern Cross is represented by 4 five-pointed red stars with white borders.

New Zealand Coat of Arms. The New Zealand Coat of Arms was pictured and described as a frontispiece in the 1969 and earlier issues of the Official Yearbook. It appears on the title page and the spine of the present volume. The Coat of Arms is protected under the Flags. Emblems, and Names Protection Act 1981, and its lawful use is confined to official purposes.

National anthems.God Defend New Zealand, the words written by Thomas Bracken and the music composed by John J. Woods, was written in the early 1870s and formally adopted as the New Zealand national hymn in 1940. In 1977 it was announced that, with the consent of Her Majesty the Queen, the Government had decided that the national anthems of New Zealand be the traditional anthem. God Save the Queen, and God Defend New Zealand, both being of equal status as national anthems appropriate to the occasion.

In 1979 the Minister of Internal Affairs published a new specially-commissioned arrangement of the New Zealand anthem more suited to general or massed singing than the original score, which lent itself best to solo or choral singing. The new arrangement was published as a supplement to the New Zealand Gazette dated 31 May 1979.

Table 3.17. ENGLISH AND MAORI TEXTS OF THE NEW ZEALAND ANTHEM

GOD DEFEND NEW ZEALANDAOTEAROA
1. God of nations at Thy feet In the bonds of love we meet. Hear our voices, we entreat, God defend our Free Land. Guard Pacific's triple star From the shafts of strife and war, Make her praises heard afar, God defend New Zealand.1. E Ihoa Atua, O nga Iwi! Matoura, Ata whaka rongona; Me aroha noa. Kia hua ko te pai; Kia tau to atawhai; Manaakitia mai Aotearoa.
2. Men of ev'ry creed and race Gather here before Thy face, Asking Thee to bless this place, God defend our Free Land. From dissension, envy, hate, And corruption guard our State, Make our country good and great, God defend New Zealand.2. Ona mano tangata Kiri whero, kiri ma, Iwi Maori Pakeha, Repeke katoa, Nei ka tono ko nga he Mau e whakaahu ke, Kia ora marire Aotearoa.
3. Peace, not war, shall be our boast. But, should foes assail our coast, Make us then a mighty host, God defend our Free Land. Lord of battles in Thy might, Put our enemies to flight, Let our cause be just and right, God defend New Zealand.3. Tona mana kia tu! Tona kaha kia u: Tona rongo hei paku Ki te ao katoa Aua rawa nga whawhai, Nga tutu a tata mai; Kia tupu nui ai Aotearoa.
4. Let our love for Thee increase, May Thy blessings never cease, Give us plenty, give us peace, God defend our Free Land. From dishonour and from shame Guard our country's spotless, name, Crown her with immortal fame, God defend New Zealand.4. Waiho tona takiwa Ko te ao marama; Kia whiti tona ra Taiawhio noa. Ko te hae me te ngangau Meinga kia kore kau; Waiho i te rongo mau Aotearoa.
5. May our mountains ever be Freedom's ramparts on the sea. Make us faithful unto Thee, God defend our Free Land. Guide her in the nations' van. Preaching love and truth to man, Working out Thy glorious plan. God defend New Zealand.5. Tona pai me toitu; Tika rawa, pono pu; Tona noho, tana tu; Iwi no Ihoa. Kaua mona whakama; Kia hau te ingoa; Kia tu hei tauira; Aotearoa.

Further information

Constitution

Constitutional Reform: Reports of an Officials Committee—Department of Justice 1986.

Mulholland, R. D., Introduction to New Zealand Legal System, 1985.

Robson, J. L. and others, New Zealand: The Development of its Laws and Constitution. 1954.

Scott. K. J., The New Zealand Constitution, 1962.

Parliament

A Checklist: New Zealand Royal Commissions, Commissions and Committees of Inquiry, 1864-1981—New Zealand Library Association, 1982.

McGee, D. G., Parliamentary Practice in New Zealand, 1985.

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

Report of the General Election 1984 (Parl. paper E. 9. 1984).

Report of the Licensing Polls 1984 (Parl. paper E. 9B, 1984).

Royal Commissions and Commissions of Inquiry—Government Printer, 1974.

Executive government

Directory of Official Information—State Services Commission.

Register of Statutory and Allied Organisations—Cabinet Office.

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

Judiciary and law

Report of the Department of Justice (Parl. paper E. 5).

Royal Commission on the Courts (1978).

Tables of New Zealand Acts and Ordinances and Statutory Regulations in Force 1985—Government Printer.

Human rights

Report of the Human Rights Commission (Parl. paper E. 6).

Report of the Race Relations Conciliator (Parl. paper E. 17).

Local government

Local Authority Election Statistics—Department of Internal Affairs.

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

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

Chapter 4. 4 International relations and defence

4.1 Relations with other countries

The emergence of an independent New Zealand foreign policy is usually regarded as dating from 1935. Despite differences of opinion on some issues in the League of Nations, where New Zealand supported collective security, New Zealand did not depart from its historically close association with Britain. New Zealand fought on the side of the Allies in the Second World War, which changed the pattern of power in the world. In 1943 the New Zealand Government established 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 principles of collective security and international justice, to which the United Nations had pledged 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.

There have been several periods of expansion in the establishment of New Zealand posts overseas. Aside from the three posts set up during the Second World War (Washington, Ottawa, Canberra) to maintain consultations with our closest allies, the first main period of expansion came in the 1950s as a consequence of the recognition that our security was closely bound up with that of South East Asia. Following the signature of the ANZUS Treaty, which came into force in 1952, and the Manila Treaty in 1954, diplomatic relations were established with five Asian countries.

A second period of expansion in the 1960s led to the setting up of a number of diplomatic posts in Western Europe in response to the need to defend New Zealand's essential economic and political interests as Britain negotiated its terms of entry into the European Community. At the same time a more gradual expansion was under way in the Pacific. As island states became independent and as the extent of New Zealand's economic and political relations in the South Pacific increased, a number of posts were opened. Another phase in the 1970s and early 1980s was closely related to New Zealand's search for new trading opportunities as the degree of dependence on traditional markets gradually declined. The diversification both in the range of goods exported and in markets led to the strengthening of posts in Asia and the Pacific, and the opening of embassies in the Middle East, Latin America and China, in addition to the reopening of posts in the Soviet Union and India. Finally, soon after taking office in 1984, the Rt Hon. David Lange announced the Government's intention of opening a post in Zimbabwe, a decision implemented in early 1986. In addition to the 50 diplomatic and consular posts, there is an extensive network of multiple accreditations allowing New Zealand's overseas representatives to cover several countries from the one base.

South Pacific. New Zealand has a long history of interest and involvement in the South Pacific, and its close links to South Pacific countries have, in more recent years, been based on a shared interest in the development and security of a region geographically and culturally close to it.

During the 1960s there was a dramatic emergence of new nations in the South Pacific. New Zealand led this development with moves in its own territories.

In Western Samoa, which had become a U.N. 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. The Cook Islands voted under United Nations supervision in 1965 to become a self-governing state in free association with New Zealand. Niue achieved a similar status in an act of self-determination in 1974. Under their respective constitutions the Cook Islands and Niue governments have full legislative and executive competence over all their affairs. The constitutional relationship provides for the exercise by New Zealand of certain responsibilities for the defence and external relations of the Cook Islands and Niue (in the former case, in consultation with the Cook Islands Prime Minister). This does not confer upon the New Zealand Government any rights of control: the Cook Islands and Niue governments retain legislative and executive powers in these fields as in all other matters. Cook Islanders and Niueans are New Zealand citizens.

The relationship between the Cook Islands and New Zealand was elaborated in the 1973 Exchange of Letters between the then New Zealand Prime Minister, the Rt Hon. Norman Kirk, and the Premier of the Cook Islands, Sir Albert Henry. The Prime Minister's letter described the relationship as “one of partnership, freely entered into and freely maintained”, the central features being common citizenship and the same head of state. The Cook Islands can at any time amend its constitution to end the “free association” status in favour of complete independence. These points apply equally to the relationship with Niue (though the Cook Islands now has its own Queen's Representative).

The Cook Islands and Niue not only have full constitutional capacity to conduct their own external relations and to enter directly into international arrangements and agreements, but they also in fact directly conduct certain aspects of their external relations. Their capacity to do so is limited only by the extent to which the governments of other states will accord them recognition and deal with them. In practice, the Cook Islands and Niue have participated on an equal basis with sovereign states in the South Pacific. They are members of the South Pacific Forum (see below), the South Pacific Bureau for Economic Co-operation (SPEC), the South Pacific Commission, and the Forum Fisheries Agency. They have associate membership of ESCAP, and the Cook Islands has joined the Asian Development Bank WHO and FAO. The Cook Islands has signed a bilateral maritime boundary delimitation treaty with the United States.

Tokelau is still included within the boundaries of New Zealand and is administered under the authority of the Tokelau Act 1948 and its amendments. Tokelauans are New Zealand citizens. In accordance with United Nations resolutions on non-self-governing territories, New Zealand has committed itself to assisting Tokelau towards a greater degree of self-government and economic self-sufficiency. New Zealand has stated that it will be guided by the wishes of the Tokelauan people regarding political developments in the territory and the pace at which greater self-determination is introduced.

The 1970s and 1980s have seen the development of New Zealand's relations beyond the circle of South Pacific countries with which it has historical ties. There are now diplomatic missions in most of the independent countries of the region and regular contacts with those countries on a range of bilateral and regional issues. Over 80 percent of New Zealand's bilateral development assistance is directed to the South Pacific.

The region is of growing commercial importance to New Zealand with exports amounting to just over $420 million in 1984-85. Fiji and Papua New Guinea are the most important markets. Imports, amounting to about $150 million, come principally from Christmas Island, Nauru, Fiji and Papua New Guinea. New Zealand has taken special measures to foster Pacific Island exports to this country and New Zealand investment in the region. A regional trade agreement, SPARTECA, provides duty-free and unrestricted access to New Zealand (and Australia) on a non-reciprocal basis for most of the products exported by Island countries. The Pacific Islands Industrial Development Scheme (PIIDS) provides financial assistance and incentives for New Zealand companies developing approved manufacturing operations in selected Pacific countries. Its objective is to foster economic development and employment opportunites in those countries.

There is close co-operation with the South Pacific on defence matters. New Zealand has mutual assistance programmes with the 3 South Pacific countries which have armed forces, Papua New Guinea, Tonga and Fiji. Our forces undertake joint exercises with local groups in various parts of the region. They also assist with maritime surveillance in the region, a task of great importance to countries with vast exclusive economic zones.

Cook Islanders, Niueans and Tokelauans, as New Zealand citizens, all move freely to and from New Zealand. This country'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 have resulted in a flow of immigrants and vistors from both countries.

New Zealand has also helped build up regional co-operation in the South Pacific. A major step in this direction was the creation of the South Pacific Forum, which now comprises the independent and self-governing countries of the South Pacific: Fiji, Nauru, Tonga, Western Samoa, the Cook Islands, Niue, Papua New Guinea, the Solomon Islands, Tuvalu, Kiribati, and Vanuatu, together with Australia, and New Zealand. The Federated States of Micronesia has observer status. The first session comprising 5 of the present Island members as well as Australia and New Zealand, met at the invitation of New Zealand at Wellington in 1971, Since then meetings have been held annually in different locations, the most recent forum, in August 1985, having been at Rarotonga.

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

At the 1972 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 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. Its headquarters are in Suva.

In 1978 members agreed to set up the South Pacific Forum Fisheries Agency, an organisation designed to facilitate the rational utilisation and conservation of the region's marine resources. Its headquarters are in Honiara.

Recognising that the development of the Island countries was largely dependent on the existence of regular and reliable shipping services, the governments of the Cook Islands, Fiji, Kiribati, Nauru, New Zealand, Papua New Guinea, Tonga and Western Samoa established the Pacific Forum Line (PFL) in 1977. Subsequently the Solomon Islands and Tuvalu joined the line, while both Australia and Niue, although not shareholders, have made financial contributions to it.

The PFL, which is based at Apia, charters 3 vessels, the Forum New Zealand, the Forum Samoa and the Fua Kavenga, owned respectively by New Zealand, Western Samoa, and Tonga. It has incurred substantial financial losses since it began operations in 1978. Together with other governments in the region, New Zealand has made additional contributions, and in 1985 for the first time the line achieved a profit.

The South Pacific Commisson, created in 1947 by the Canberra Agreement of which New Zealand is a signatory, is the other major regional body. Representatives from 27 governments and territorial administrations from within the South Pacific Commission comprise the South Pacific Conference. The conference which meets annually decides the work programme of the commission. Since its establishment the commission, primarily a technical assistance organisation, has accomplished much in promoting the economic and social welfare of the South Pacific peoples as well as in helping to build a sense of regional identity. Its annual budget (which in 1986 will total approximately $6.6 million) is financed for the most part from proportional contributions by member governments.

The United Nations and its specialised agencies are also an important source of technical assistance in the South Pacific. A number are represented in the region.

Australia. New Zealand's most extensive and important bilateral relationship is with Australia. Geographical proximity and shared foreign policy and defence interests reinforced the important historical, cultural, and Commonwealth ties between the two nations that have given rise to this special and mutually beneficial relationship. New Zealand established a diplomatic office in Australia in 1943, very early in its diplomatic history, and in 1944 the Australia-New Zealand Agreement (known also as the ANZAC Pact or the Canberra Pact) was signed. This paved the way for a tradition of joint consultation and co-operation that reflects the interdependence of the two nations' interests and the goodwill and friendship of their peoples. In 1983, the two countries concluded the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA or CER for short). This, the most comprehensive trade treaty ever concluded by either country, will bring about a full free trade area by 1995. The agreement also contains provision for co-operation in a range of activities, such as investment, trade practices and standards.

In matters of foreign policy, in defence and in the economic field, the degree of co-operation also reflects the importance of each country to the other and a need for continuing close working contacts. Regular and increasingly frequent bilateral meetings have taken place, with a minimum of formality, to cover almost the entire range of government activity. New Zealand ministers participate in a wide range of regular meetings between Australian federal and state ministers. The two countries are also bound together by innumerable personal contacts, widespread family ties, and by institutionalised links in business, finance, education, the professions, and in sport. These contacts are facilitated by the free movement of people between the two countries under the trans-Tasman Travel Arrangement.

New Zealand and Australia share a common foreign policy objective, to promote stability and development in the South Pacific and South-East Asian regions in their immediate vicinity. They have a more general interest in co-ordinating their positions on major international political and economic questions of current concern in the United Nations, the Commonwealth, GATT and elsewhere. In the economic context, Australia is a major trading partner for New Zealand, which is in turn Australia's largest single market for manufactured exports. The trade liberalisation provisions of ANZCERTA, or the CER treaty, have given added impetus to the significant expansion of trade achieved under the 1966 New Zealand-Australia Free Trade Agreement (NAFTA) which CER has replaced. In the defence field, the former ANZAC partners continue to co-operate closely, both in relation to training programmes and exercises and the provision of equipment and other supplies, and in terms of the broader issues of defence policy, including their common membership of ANZUS.

The Australia-New Zealand Foundation, set up in 1978, has sponsored research projects and publications, as well as cultural exchanges between Australia and New Zealand.

Asia. During the last 30 years there has been a considerable expansion in relations with countries in Asia. New Zealand has a direct interest in the maintenance of peace and the growth of prosperity in the area.

Trade with Asia is becoming more and more important. 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 the main Asian trading partners has been developed; bilateral economic agreements have been concluded. About a third of this country's export receipts come from Asia.

New Zealand's growing interests and involvement in Asia are reflected in the changing pattern of its diplomatic representation. Prior to 1955, when New Zealand opened a post in Singapore, it had only one diplomatic mission in the region, in Tokyo. Representation has now been established in 5 of the ASEAN, (Association of South East Asian Nations), countries, and in Peking, Hong Kong, Seoul, Osaka and New Delhi. Several of these missions are accredited to other Asian capitals. The network thus created enables external events to be assessed in the light of this country's own interests and needs. New Zealand has also developed political contacts with countries of the area in other important ways including high-level exchanges of visits and regular bilateral consultations.

New Zealand is one of a group of nations closely associated with ASEAN, which it sees as a force for stability and economic development. It has initiated a number of joint projects with ASEAN for development and trade co-operation. The massive outflow of refugees from Vietnam and Kampuchea, and the political uncertainties stemming from the continued presence in Kampuchea of Vietnamese forces have posed difficult problems for the countries of the region. New Zealand has consulted closely with the ASEAN countries over these developments.

Cultural interchange between New Zealand and the countries of Asia has increased steadily. Where once New Zealanders looked largely to Britain for cultural inspiration and experience, now their horizons have broadened. Professional bodies, sporting associations, cultural groups and universities today have links with similar organisations in Asia, as well as with more traditional partners such as Britain and Australia. The development of civil air links and the concurrent growth of tourism have also helped to bring a wider range of contacts.

Nowhere within the Pacific Basin has this country's adaptation to changed circumstances been more complete than in its relationship with Japan. Today that association is one of the most important and beneficial that New Zealand has. Its elements are varied—trade, fishing and a growing range of cultural, educational, sporting and personal ties. In many ways, the conditions for a developing trading relationship are ideal, for the 2 countries are located in different hemispheres, their economies are complementary, and each has in abundance some things that the other needs. New Zealand continues to seek improved conditions of access for certain important commodities, including dairy products. Meanwhile, the steady growth in the extent and cordiality of relations with the People's Republic of China further illustrate New Zealanders' changing perceptions of Asia. China is both an important export market and a major power with a leading role in Asia.

Americas:United States—Continuing and close contact with the United States is an essential part of New Zealand's foreign policy. The 2 countries share a common English-speaking heritage and a friendship of long standing, both in peace and war. The United States has an important influence on the New Zealand way of life.

Since the opening in Washington in 1941 of New Zealand's second diplomatic mission, close consultations have been held with the United States on many bilateral questions and international issues of common interest. Basic similarities in political philosophy and social and economic processes have encouraged the development of close governmental relations, which have been supported by increasing contacts, both official and non-official, across a broad range of activities.

This comprehensive bilateral relationship finds expression in political, strategic, economic and cultural fields. New Zealand is allied to the United States and Australia through the ANZUS Treaty. On the economic side, the United States is one of our major trading partners. For some products, notably beef and casein, it is our largest export market. Regular intergovernmental consultations are held to review the trading relationship. Programmes for scientific and technical co-operation, and academic and cultural exchanges, serve to maintain an awareness of New Zealand in the United States and to promote a vigorous and beneficial interchange of ideas and experience.

Canada—With a common British heritage and long association through the Commonwealth, New Zealand and Canada have traditionally enjoyed a close and easy relationship. Since New Zealand established diplomatic representation in Canada in 1942, there have been ministerial and official exchanges in many fields in which the 2 countries' shared democratic traditions and similar attitudes have provided a strong basis for bilateral consultation and co-operation. Similarly, in the international field, and particularly in Commonwealth and United Nations contexts, New Zealand and Canada have a sound record of co-operation. Our involvement in the South Pacific and Canada's in the Caribbean have provided a basis for the exchange of experience, and both countries take a close interest in developments within the Pacific Basin.

The Trade and Economic Co-operation Agreement, which came into effect in 1982, is intended to encourage economic co-operation in every sense. In addition to consultations on trade and economic issues, the agreement calls for increased co-operation in investment, joint ventures and technology transfer.

Canada is an important tourist market for New Zealand. The resumption of direct air services between New Zealand and Canada in 1985 is assisting with the development of the tourist industry.

Latin America and the Caribbean—Latin America is a region of increasing importance for New Zealand. Relations with the region, limited in the past by geographical orientation and linguistic and cultural differences, developed rapidly in the 1970s. In 1972 the Government opened diplomatic missions in Chile and Peru, primarily to support an expanding trade in dairy products with these countries. By cross-accreditation, diplomatic relations have since been established with Brazil, Ecuador, Colombia and Venezuela. An embassy was opened in Mexico City in 1983,

Trade in dairy products, meat and agricultural technology from New Zealand to Latin America has increased steadily, the principal trading partners in these commodities being Mexico, Venezuela and Peru. Agriculture is the main field of co-operation. Other interests shared with Latin American countries include Antarctica, the law of the sea, and alternative and renewable sources of energy.

Relations with the Caribbean centre on mutual Commonwealth interests and a useful export trade, largely in dairy products and meat. Since 1974 the New Zealand High Commissioner in Ottawa has been cross-accredited to Trinidad and Tobago, Jamaica, Barbados and Guyana. Resident representation, a trade commission in Trinidad and Tobago, was established in 1958, but closed in 1982 because of the decline in the proportion of New Zealand's exports going to the Caribbean.

Western Europe. History has linked New Zealand closely to Western Europe, and subsequent developments including trade and involvement with the Europeans in 2 World Wars, have confirmed the relationship. The majority of New Zealand's settlers came from European countries, notably Britain, and subsequent migration flows have continued these ties. New Zealand's democratic political system, and many of its cultural, religious and social values, derive from a shared European tradition. Although more recently New Zealanders have become increasingly aware of their identity as a Pacific country, developments in Western Europe still exert a strong influence on contemporary New Zealand life.

The importance of the European Community as a market for New Zealand's agricultural exports has focused particular attention on the economic aspects of the relationship. The EC is New Zealand's largest export market and trading partner. Although New Zealand exports have diversified considerably since Britain joined the EC, the Community remains a key market for sheepmeat and butter. At the same time, New Zealand exports in a range of non-traditional products show encouraging growth. Community imports into New Zealand are substantial and also growing.

Trade is just one aspect of the relationship, however, and the range of other contacts between New Zealand and the individual countries of Western Europe is steadily expanding. New Zealand has consultative links with the Community on a range of political and economic issues. New Zealand and Western Europe co-operate closely on international issues and exchange information in multilateral organisations such as the United Nations and the OECD.

Soviet Union and Eastern Europe. New Zealand has in recent years developed stable working relationships with the Soviet Union and the countries of Eastern Europe. Trading and economic concerns dominate. While the Soviet market has assumed considerable significance for exports of New Zealand's primary commodities, particularly meat and dairy products, since the late 1970s, trade with Eastern Europe has not fulfilled earlier hopes and remains small. For the Soviet Union the fisheries resources of New Zealand's 200-mile zone are an additional source of economic interest. (A fisheries agreement was signed in 1978.)

On the political side, relations with the Soviet Union were normalised with the return of ambassadorial level representation in Wellington and Moscow in 1984. The Embassy in Vienna is accredited to 5 East European countries—Poland, Hungary. Romania, Czechoslovakia and the German Democratic Republic—and the Embassy in Rome to Yugoslavia.

Middle East. Involvement in the Middle East has increased markedly within the past decade. For more than 30 years New Zealand has watched the Arab-Israeli conflict with concern, if from a distance. Recognising the implications for world peace, this country has contributed personnel to United Nations truce observation teams. Early in 1982 it also supplied a small contingent to the Sinai peace-keeping force. New Zealand has consistently upheld Israel's right to exist and, equally consistently, the rights of the Palestinian people to self-determination.

Since 1973, when Middle East members of the Organisation of Petroleum Exporting Countries (OPEC) emerged as a major economic force in the world, the area has increasingly assumed a direct and immediate importance for this country. The wealth of the Gulf region has created new markets for New Zealand exports. These include manufactured goods and agricultural products. In recent years the region has absorbed a high proportion of New Zealand's total sheepmeat exports.

New Zealand is continuing to broaden its range of contacts with Middle Eastern countries. At the same time, those countries have themselves taken a closer interest in New Zealand and the South Pacific and have expanded their diplomatic representation in the area. Egypt and Israel have embassies in Wellington, while Iran, Iraq, Lebanon, Libya and Saudi Arabia have cross-accreditation from Canberra. Formal relations have also been established with Qatar, with the Ambassador based in Tokyo. New Zealand opened resident missions in Iran and Iraq in 1975, and in 1977 established a Consulate-General in Bahrain, with commercial responsibilities in Saudi Arabia, the Gulf Emirates and the Yemens. The Consulate-General was upgraded to an Embassy in 1984 when an Embassy in Riyadh was also established. The first resident Ambassador to Saudi Arabia took up his post in 1985. Cross-accreditations to other states in the region are being sought. The pattern of representation is rounded out by the cross-accreditation of the Ambassador in Riyadh to Egypt.

Closer relations between New Zealand and the Middle East have been marked by a growing appreciation of each other's concerns. This has been fostered by visits in both directions by ministers, officials and businessmen. Also, a growing number of tourists, students and sports teams are coming to New Zealand.

Africa. Relations with Africa have been given new emphasis and new dimensions since the General Election in July 1984. The South African Consulate-General in Wellington was closed; the Government announced a policy which barred South African teams and individual representatives from New Zealand and sought to discourage contacts in South Africa or third countries. At the United Nations New Zealand co-sponsored for the first time in 1984 and again in 1985, a wide-ranging resolution on international action against apartheid. In conformity with the Accord on Southern Africa agreed to at Nassau by Commonwealth Heads of Government, the Government in November 1985 introduced certain economic measures against South Africa and announced its intention to adopt additional sanctions if the South African Government did not, within a reasonable period, begin to dismantle apartheid.

The new Government undertook also to establish New Zealand's first resident diplomatic mission in Africa. In the meantime the Ambassador in Athens is cross-accredited as High Commissioner to Tanzania, Kenya and Zimbabwe. The High Commissioner in London is accredited to Nigeria. In April 1985, the Prime Minister made the first official visit to Africa by a New Zealand Head of Government (apart from attendance at Commonwealth meetings). In October 1985, he announced that a High Commission would be opened in Zimbabwe early in 1986 and that this post would also be accredited to Botswana, Kenya, Tanzania and Zambia.

New Zealand joined in 1984 the international response to the emergency needs of many countries in Africa. The Government made available contributions amounting to $3.1 million through international and voluntary agencies. The New Zealand community made its own substantial contributions. In January 1985, New Zealand moved to establish a relationship with the Southern Africa Development Coordination Conference.

New Zealand has contributed to technical co-operation projects in African countries through bilateral assistance and by contributions to Commonwealth and other multilateral programmes.

This country's total trade with African countries amounts to only a modest percentage of its global trade, but there has been growth in the volume of both exports and imports. Trade surveys have been undertaken in East, North and West Africa to identify commercial opportunities. The major New Zealand exports are milk powder, tallow, butter, fish and wool. The main imports from Africa are cocoa, coffee, sisal, vegetable oil, tanner extract and tobacco.

Assistance to developing countries

In 1984-85 Official Development Assistance (ODA) disbursed under Vote Foreign Affairs amounted to $85,637 million, summarised in Table 4.1.

Table 4.1. OFFICIAL DEVELOPMENT ASSISTANCE 1984-85

Source: Ministry of Foreign Affairs.
Bilateral—$(000)
    Country programmes61,440
    Other1,290
Multilateral12,496
South Pacific Shipping10,411
          Total85,637

Almost all of New Zealand's ODA is administered by the External Aid Division of the Ministry of Foreign Affairs. Geographic distribution of the 1984-85 assistance to developing countries followed the trend of previous years, with over 80 percent going to bilateral and regional programmes in the South Pacific. The ASEAN group of countries (Indonesia, Singapore, Malaysia, Thailand and the Philippines) was the second region of concentration. The total programme involves the skills and experience of hundreds of New Zealanders, together with capital and technical back-up.

Government assistance to voluntary agencies in 1984-85 amounted to $1,237 million. This comprised the annual grant to Volunteer Service Abroad and disbursements under the Voluntary Agency Support Scheme (VASS). Under VASS the Government provides a subsidy for approved projects undertaken by New Zealand non-governmental agencies in developing countries.

The total transfer of resources from New Zealand to developing countries in the calendar year 1984, as reported to the Development Assistance Committee of the OECD in Paris, was estimated at $141,661 million. This figure included private export credits and direct investment by New Zealand interests ($33.2 million) and transfers by New Zealand voluntary agencies ($13.4 million).

Bilateral ODA in 1984-85. Under its bilateral (government-to-government) programmes, New Zealand responds to the development priorities established by the developing countries themselves, mainly in the South Pacific and South East Asia. Development projects comprise the main form of assistance. Hundreds of projects are involved, and New Zealand inputs of expertise and/or material and capital resources are often committed for several years ahead.

The main purpose of New Zealand's bilateral assistance is to help promote the economic and social development of the partner countries by expanding their capabilities to raise the living standards of their peoples. Emphasis is placed on the development of productivity through livestock and pasture improvement programmes, assistance with crops, and the development of forestry, fisheries and energy resources. Advisors' assignments vary from a few weeks to several years. In 1984-85 the bilateral programme had about 60 long-term advisors in the field, and several hundred on short-term assignments.

The transfer of New Zealand expertise to developing countries is supplemented by the provision of study and training awards. In 1984-85 there were about 600 students in New Zealand and about 180 at “third country” institutions. The training is linked to specific requirements in the recipient countries. Bilateral assistance is complemented in the South Pacific and South East Asia by programmes promoting regional development co-operation, particularly in the fields of forestry, education, livestock improvement, transport, communications and trade promotion. Bilateral assistance includes emergency and distress relief.

The following country breakdown shows the direction and scope of New Zealand assistance:

Table 4.2. BILATERAL OFFICIAL DEVELOPMENT ASSISTANCE 1984-85

Source: Ministry of Foreign Affairs.

South Pacific$(000)
    Cook Islands12,516
    Fiji6,212
    Kiribati948
    Niue6,145
    Papua New Guinea3,503
    Solomon Islands1,330
    Tokelau2,841
    Tonga4,486
    Tuvalu821
    Vanuatu1,888
    Western Samoa6,269
    Regional3,088
            Total Pacific50,047
South and South East Asia—
    ASEAN—
      Indonesia3,629
      Malaysia259
      Philippines1,737
      Singapore150
      Thailand1,520
      Regional591
            Subtotal7,886
Other Asian$(000)
      Bangladesh74
      Burma20
      India28
      Korea (South)61
      Laos17
      Maldives8
      Nepal17
      Pakistan24
      Sri Lanka50
      Regional493
            Subtotal792
            Total Asia8,678
Africa
    Botswana11
    Kenya18
    Malawi6
    Tanzania104
    Uganda14
    Zambia14
    Zimbabwe44
    Regional546
            Total Africa779
Latin America
    Colombia23
    Chile19
    Peru78
    Ecuador11
            Total Latin America131
Middle East
    Egypt5
    Regional30
            Total Middle East35
Caribbean
    Barbados3
    Dominica4
    Jamaica7
    Mexico6
    Regional10
            Total Caribbean30
Other Bilateral—
    Voluntary agencies1,237
    Information61
    Miscellaneous12
    Study and Training Institutes430
            Total Other1,740
            Total Bilateral Aid61,440

Multilateral ODA in 1984-85. The multilateral programme enables New Zealand to make a contribution to development work which would usually be beyond the scope of the bilateral programme, either in terms of the scale of the projects or in their ability to help countries beyond the regions of concentration of the bilateral effort

Multilateral disbursements in 1984-85 amounted to $12,496 million. To a large extent the pattern of disbursement to United Nations, Commonwealth, South Pacific, and international development finance institutions and agencies followed that of the previous year.

Table 4.3. MULTILATERAL ODA 1984-85

Source: Ministry of Foreign Affairs.
United Nations InstitutionsNZ$(000)
   UN Development Programme2,000
   UN Disaster Relief Office10
   World Food Programme1,041
   UN Children's Fund1,200
   UN Fund for Population Activities350
   UN Relief and Works Agency120
   UN High Commission for Refugees600
   UN Educational and Training Programme for Southern Africa16
   UN Trust Fund for Southern Africa8
   UN Trust Fund for Namibia5
   UN Voluntary Fund for Decade of Women12
          Total United Nations5,362
South Pacific Institutions—
   South Pacific Commission633
   South Pacific Bureau for Economic Co-operation388
   Forum Fisheries Agency212
          Total South Pacific1,233
Development Finance Institutions—
   International Development Association (IDA)1,780
   Asian Development Bank (ADB)—Asian Development Fund1,100
   Asian Development Bank—Technical Assistance Special Fund (TASF)75
          Total Development Finance2,955
Commonwealth Programmes—
   Commonwealth Fund for Technical Co-operation1,000
   Commonwealth Youth Programme70
   Commonwealth Agricultural Bureau61
          Total Commonwealth1,131
Other Contributions 
   International Rice Research Institute25
   International Planned Parenthood Fund250
   International Committee of the Red Cross58
   Refugee Relief1,482
          Total Other1,815
          Total Multilateral Aid12,496

4.2 International organisations

United Nations

The United Nations was formed 41 years ago on 24 October 1945. New Zealand was a founding member and, since then, successive governments of this country have strongly supported the UN as a major instrument for maintaining peace and security, for developing friendly relations among countries, for promoting international co-operation aimed at solving economic and social problems, and for ensuring respect for human rights. As a consequence, New Zealand continues to play an active and prominent role in the UN system.

With the expanding work within the UN's main organs, the increase in UN related bodies, and the growth in the range and complexity of functions undertaken by the specialised agencies, New Zealand has had to adopt a more selective approach. Efforts are now concentrated on areas where this country can play a useful and productive role and where matters of particular relevance are involved.

During 1985 New Zealand participated in the celebrations on the 40th anniversary of the United Nations. The Minister of Education, Hon. Russell Marshall attended a ceremony in San Francisco on 26 June to mark the anniversary of the signing in that city of the UN Charter. On 24 October in New York, the Prime Minister, the Rt. Hon. David Lange, addressed the largest gathering of Heads of State and Government in UN history. Mr Lange emphasised the role of small countries in the organisation and the importance of upholding the principles of the charter.

While welcoming the recent resumption of bilateral discussions between the U.S.S.R. and the U.S.A., New Zealand has continued to press actively within the United Nations system for early progress on a wide range of arms control and disarmament measures. Highlights during 1985 included a speech to the Conference on Disarmament in Geneva in March by the Prime Minister, and the adoption by the South Pacific Forum in Rarotonga in August of the South Pacific Nuclear Free Zone Treaty. New Zealand participated in the Nuclear Non-Proliferation Conference which concluded favourably in Geneva in September, and co-sponsored a number of resolutions on arms control and disarmament at the 40th session of the UN General Assembly, including one calling for the early negotiation of a comprehensive nuclear test ban treaty. We have also continued to contribute to the peacekeeping operations. Four New Zealand officers served with UNTSO in 1985, and financial contributions of almost $1,200,000 were made to the various peacekeeping operations.

New Zealand has also continued to participate in the humanitarian relief work of the United Nations and its agencies, for example working closely with the UN High Commissioner for Refugees (UNHCR), particularly to resettle Indo-chinese refugees. The Government made an annual contribution of $100,000 to UNHCR in 1985-86, and another $200,000 for the UNHCR's General Programme Appeal to assist refugees in Africa, Asia and Central America. In 1985 a special payment of $1,000,000 was made to the United Nations Office for Emergency Operations in Africa, while $120,000 was made as a voluntary contribution to the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), and $200,000 was given to the World Food Programme. There has been an annual grant of $700,000 to the United Nations Children's Fund (UNICEF), plus a special grant in 1985 of $200,000 for UNICEF's emergency operations in Africa.

Among major human rights issues, the eradication of all forms of racism and racial discrimination preoccupies New Zealand. This country fulfils its national reporting obligations under the international human rights instruments to which it is party, such as the International Covenant on Civil and Political Rights, the International Convention on the Elimination of All Forms of Racial Discrimination, and the Convention on the Elimination of Discrimination Against Women. A significant advance in 1985 was the adoption by the United Nations General Assembly of the International Convention Against Torture. New Zealand's decision to sign this convention was announced on Human Rights Day, 10 December 1985. In July 1985 the Minister of Women's Affairs, the Hon. Ann Hercus, led a strong New Zealand delegation to the conference in Nairobi to mark the end of the UN Decade for Women. This meeting considered strategies to help improve the status of women and involve them in all aspects of development from 1986 to 2000. In 1985 New Zealand made a voluntary contribution of $24,000 to the UN Development Fund for Women.

New Zealand participates fully in all aspects of international economic and development activity, not only in the UN agencies but also in the annual meetings of the IBRD (World Bank) and the IMF, and in Commonwealth and regional groupings that have sought to increase stability in international trade and finance. New Zealand again in 1985 emphasised the special requirements of the South Pacific Island countries, many not represented at the United Nations, and contributed substantially ($2 million) to the United Nations Development Programme (UNDP). New Zealand was elected to serve on the Governing Council of UNDP from January 1986 to December 1988.

United Nations General Assembly (UNGA)— The New Zealand delegation to the 40th session of UNGA, from 17 September to 18 December 1985, was led by the Deputy Prime Minister, the Hon G. Palmer. In his speech to the assembly Mr Palmer placed particular emphasis on arms control issues, including the South Pacific Nuclear Free Zone, the consequences of the Rainbow Warrior incident and recent political and economic developments in our South Pacific region. Subsequent discussion in UNGA centred on recent events concerning the Middle East, Central America, global economic issues, torture, racism and apartheid, Southern Africa, refugees, arms control and disarmament, and human rights and humanitarian relief for Africa. In these areas New Zealand sought to make constructive contributions by co-sponsoring, supporting or speaking in favour of resolutions intended to help remove international tension, establish economic and political justice for the deprived, and provide humanitarian relief or development assistance to the needy.

The Specialised Agencies—The UN system encompasses 16 autonomous organisations known as the specialised agencies and a large number of additional bodies with their own secretariats, budgets and operations. Among the largest of these, the Food and Agricultural Organisation (FAO) aims to raise levels of nutrition and global living standards, to promote agriculture and food security, and to expand the world economy. Similarly the World Health Organisation (WHO) seeks “the attainment by all peoples of the highest possible level of health”, and the International Labour Organisation (ILO) seeks to improve working and living conditions through the adoption of international labour conventions and recommendations that set minimum standards in areas such as wages, hours of work, conditions of employment, safety and social security.

The UN Educational, Scientific and Cultural Organisation (UNESCO) seeks to increase international co-operation through education, science and culture in order to further universal respect for justice, for the rule of law and for human rights and fundamental freedoms affirmed in the UN Charter.

Four agencies participate in efforts to increase the stability of international trade and to promote the economic development of less developed countries. These are the International Bank for Reconstruction and Development (IBRD, also referred to as the World Bank), the International Monetary Fund (IMF), the International Finance Corporation (IFC) and the International Development Association (IDA).

Other UN special agencies of which New Zealand is a member, are concerned with civil aviation (ICAO), agricultural development (IFAD), maritime safety (IMO), telecommunications (ITU), postal services (UPU), patents and trademarks (WIPO), and climate and weather (WMO). During 1985 the UN Industrial Development Organisation (UNIDO) became the 16th independent specialised agency.

Contributions to United Nations—Contributions to the budgets are based on members' capacity to pay. New Zealand's assessed contribution rate to the budget for 1983, 1984 and 1985 of 0.26 percent set its dues at $3,621,000 for 1985.

Contributions to various other bodies established by the United Nations are on a voluntary basis. New Zealand's voluntary contributions for the year 1983-84 are shown in the subsection dealing with the multilateral ODA in the next section. Along with many other countries New Zealand has been concerned about the rapidly rising operating and programme costs of the United Nations, its bodies, and the specialised and intergovernmental agencies. Accordingly, our delegates have sought to promote trim and efficient financial management through supporting or proposing the introduction of better budgeting techniques, through the elimination of defunct programmes, by applying savings made elsewhere to more effective programmes, and by holding the growth of new institutions to an absolute minimum.

Other UN Bodies—In addition to the specialised agencies, many UN organisations help to seek solutions to international problems through diverse economic, development, humanitarian and technical activities. For example, the General Agreement on Tariffs and Trade (GATT), the multilateral instrument that lays down agreed rules for international trade, is a cornerstone in New Zealand's trade policy. The International Atomic Energy Agency (IAEA) established “under the aegis of the United Nations”, supports peaceful uses of nuclear energy, while several bodies encourage economic development (UNDP, UNCTAD, IFAD), and others address issues as diverse and necessary as environmental protection, tourist promotion, drug abuse and population planning. Humanitarian concerns include the health and welfare of children (UNICEF), assistance to refugees (UNHCR and UNRWA) and the elimination of racism and of discrimination against women.

Commonwealth

As a member of the Commonwealth, New Zealand is able to consult and co-operate with the governments of roughly a quarter of the world's population in a wide variety of activities, both governmental and non-governmental. The value to New Zealand of its Commonwealth links derives not only from the practical benefits of Commonwealth activities and programmes, but also from the heterogeneous composition of the association. Its 49 members and 2 “special members” encompass the 6 continents and the 5 oceans of the world. The Pacific region is now well represented: Fiji, Tonga, Western Samoa, Papua New Guinea, Solomon Islands, Kiribati and Vanuatu are full members, along with Australia and New Zealand. Nauru and Tuvalu have special membership status. The Cook Islands and Niue are not eligible for full membership because of their continuing constitutional association with New Zealand. In consequence they do not attend Commonwealth Heads of Government meetings, but they are entitled to participate in Commonwealth meetings dealing with those subjects for which their governments are responsible.

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 co-ordinates a wide range of Commonwealth activities.

Heads of Government meet every second year. A number of historic decisions have been taken at these meetings. These include the 1971 Commonwealth Declaration of Principles, the 1979 Lusaka Accord which preceded the settlement of the Zimbabwe (Rhodesia) problem, and the 1977 Gleneagles Agreement discouraging sporting contacts with South Africa. The most recent Heads of Government meeting, held in Nassua, Bahamas, in October 1985 reached agreement on the Commonwealth Accord on Southern Africa. Heads of Government of the Asia-Pacific region have also met on a two-yearly basis since 1978, most recently in Port Moresby in 1984. Commonwealth Finance Ministers meet annually, and Ministers of Health, Education and other disciplines also meet regularly.

The Commonwealth's principal official development assistance programmes are financed by the Commonwealth Fund for Technical Co-operation, to which New Zealand contributed $1 million in the last financial year. Contributions are made to a range of other intergovernmental Commonwealth cooperative programmes, and agencies including the Commonwealth Youth Programme, the Commonwealth Science Council, the Commonwealth Agricultural Bureaus and the Asia-Pacific regional working groups. In the non-governmental area, New Zealand's main contribution is to the Commonwealth Foundation, established at the same time as the Secretariat to promote close links in the professions throughout the Commonwealth.

Organisation for Economic Co-operation and Development

The Organisation for Economic Co-oporation and Development (OECD), based in Paris, aims to foster intergovernmental co-operation amongst its 24 members on matters relating to economic and social policy. The OECD was formed in 1961, and currently the majority of its members are the large industrialised countries of the world. New Zealand joined it in 1973 with the intention of voicing its opinions in OECD forums which were taking on increasing importance in international decision-making.

New Zealand has concentrated its efforts on economic, agricultural, trade and energy consultations in the OECD, but has also been involved in education, labour affairs and environment work. The OECD exchanges, analyses and disseminates a wide variety of information, much of which is useful for New Zealand. These include the OECD forecasts (the biennial “Economic Outlook”) and “Country Reports”. As part of the evaluation and reporting process, the New Zealand economy is each year subjected to a thorough review within the OECD system. Our aid policy is reviewed annually by the OECD's Development Assistance Committee.

An example of the benefits of OECD membership is current work on protectionism in agricultural trade, largely initiated by New Zealand, with the aim of quantifying levels of agricultural protectionism and finding ways of reducing it.

New Zealand is also a member of the International Energy Agency (IEA) an autonomous body set up in 1974 within the OECD framework. The IEA carries out a comprehensive programme of energy co-operation among 19 countries and works to promote co-operation between energy producing and consuming countries.

International Whaling Commission

Since New Zealand rejoined this commission in 1976, it has played an active role among the conservationist member nations. In June 1985 the New Zealand Whaling Commissioner, Mr I. L. G. Stewart, was elected Chairman of the IWC for a 3-year term.

4.3 Ministry of Foreign Affairs and overseas posts

The Ministry of Foreign Affairs has the primary responsibility for advising and assisting the Government on the whole range of its relations with the outside world. This includes advising foreign governments of New Zealand's polcies and keeping the Government informed of overseas developments affecting New Zealand's interests. Policy formulation is undertaken in relation to the country's economic, trade, political and security needs, with the preparation of recommendations to the Government being carried out in close association with a number of other government departments.

Other functions include the administration of New Zealand's official programme of aid to developing countries and responsibility for all official New Zealand information and publicity activities overseas other than those relating specifically to trade promotion or tourism.

The Ministry is the agency through which other governments and their representatives in New Zealand communicate with the Government. It also undertakes foreign affairs and defence functions for the Cook Islands and Niue after consulation with their respective heads of government. It administers Tokelau.

In addition, the Ministry is responsible for operating and administering New Zealand's official representation overseas, which comprises the network of diplomatic and consular posts listed below. These posts represent and pursue New Zealand's interests overseas through a variety of ways, including participation in international negotiations, the gathering of information, and the promotion of a favourable New Zealand image. The posts perform services overseas on behalf of all government departments and give assistance to New Zealanders overseas, whether travelling in official or private capacities. On behalf of other Government departments, posts are responsible for the overseas issue of passports and visas.

Overseas posts

For further information on the overseas posts listed below refer to the publication New Zealand Representatives Overseas, on sale in Government Bookshops.

Australia—High Commission, Commonwealth Avenue, Canberra, ACT. 2600.

                     Consulate-General, 60 Park Street, Sydney, (G.P.O. Box 365, Sydney, N.S.W. 2001).

                     New Zealand Tourist and Publicity Department Office, 115 Pitt Street, Sydney, (G.P.O. Box 614, Sydney N.S.W. 2000).

                     Consulate-General, 330 Collins Street, Melbourne, (G.P.O. Box 2136 T, Melbourne, Vic. 3001).

                     New Zealand Tourist and Publicity Department Office, 332 Collins Street, Melbourne, (G.P.O. Box 2136 T, Melbourne, Vict. 3001).

                     Consulate-General, Watkins Place Building, 288 Edward Street, Brisbane, (G.P.O. Box 62, Brisbane, Qld. 4001).

                     New Zealand Tourist and Publicity Office, Brisbane, (as for Consulate-General).

                     Consulate, 16 St. George's Terrace (10th floor), Perth, (G.P.O. Box X2227, Perth, W.A. 6001).

Austria—Embassy, Lugeck 1, Viennal (Postal address: Postfach .1471, A-1011 Vienna).

Bahrain—Embassy, Manama Centre Building, Government Road, Manama (Postal address: P.O. Box 5881, Manama, Bahrain).

Bangladesh—High Commissioner resident in New Delhi (see under India).

Barbados—High Commissioner resident in Ottawa (see under Canada).

Belgium—Embassy, Boulevard du Regent 47-48, 1000 Brussels.

Brazil—Ambassador resident in Santiago (see under Chile). Consulate, Rua Hungria 888-6°, CEP 01455, Sao Paulo.

Britain—High Commission, New Zealand House. Haymarket, London SW 1Y 4TQ.

Brunei—High Commissioner resident in Kuala Lumpur (see under Malaysia).

Burma—Ambassador resident in Bangkok (see under Thailand).

Canada—High Commission, Metropolitan House, 99 Bank Street, Ottawa, Ontario K1P 6G3.

                   Consulate, Suite 1260-701, West Georgia Street, I.B.M. Tower, Vancouver, B.C. (P.O. Box 10071, Pacific Centre, Vancouver, B. C. V7Y 1B6).

Chile—Embassy, Avenida Isidora Goyenechea 3516, Las Condes, Santiago (Casilla 112, Correo Las Condes, Santiago).

China—Embassy, Ritan Dongerjie No. 1, Chaoyang District, Peking.

Colombia—Ambassador resident in Lima (see under Peru).

Cook Islands—New Zealand Representative, 1st Floor, Philatelic Bureau Building, Takuvaine Road, Avarua, Rarotonga (P.O. Box 21, Rarotonga).

Cyprus—High Commissioner resident in Athens (see under Greece).

Czechoslovakia—Ambassador resident in Vienna (see under Austria).

Denmark—Ambassador resident in Brussels (see under Belgium).

Ecuador—Ambassador resident in Lima (see under Peru).

Egypt—Ambassador resident in Riyadh (see under Saudi Arabia).

European Communities—Ambassador resident in Brussels (see under Belgium).

Fiji—High Commission, Reserve Bank of Fiji Building, Pratt Street (P.O. Box 1378), Suva.

Finland—Ambassador resident in Moscow (see under U.S.S.R.).

Food and Agriculture Organisation (FAO)—See under United Nations.

France—Embassy, 7 ter, rue Léonard de Vinci, 75116 Paris.

                   Consulate-General, 4 Boulevard Vauban, Noumea, New Caledonia (Postal address: Boîte Postale 2219, Noumea).

                   New Zealand Consulate, Air New Zealand Ltd., Vaima Centre, (B.P. 73), Papeete, Tahiti, French Polynesia.

German Democratic Republic—Ambassador resident in Vienna (see under Austria).

Germany, Federal Republic of—Embassy, Bonn-Center, H1 902, Bundeskanzlerplatz, 5300 Bonn.

                                                           New Zealand Tourist and Publicity Department Office, Kaiserhofstrasse 7, 6000 Frankfurt/ Main.

Greece—Embassy, An. Tsoha 15-17, Ambelokipi, 11521 Athens.

Guyana—High Commissioner resident in Ottawa (see under Canada).

Holy See—Ambassador resident in Paris (see under France).

Hong Kong—Commission, 3414 Connaught Centre, Connaught Road (G.P.O. Box 2790), Hong Kong.

Hungary—Ambassador resident in Vienna (see under Austria).

India—High Commission, 25 Golf Links, New Delhi, 110003.

Indonesia—Embassy, Jalan Diponegoro No. 41, Menteng, Jakarta. (Postal address: P.O. Box 2439 JKT) Jakarta.

Iran—Embassy, Avenue Mirza-ye-Shirazi, Shahid Ali-ye-Mirza Hassani St., No. 29 (P.O. Box 11365-436), Tehran.

Iraq—Embassy, 2D/19 Zuwiya Jadriyah, (near Baghdad University), Baghdad. (Postal address: P.O. Box 2350, Alwiyah, Baghdad.)

Ireland—Ambassador resident in London (see under Britain).

Italy—Embassy, Via Zara 28, Rome 00198.

Jamaica—High Commissioner resident in Ottawa (see under Canada).

Japan—Embassy, 20-40 Kamiyama-cho, Shibuya-ku, Tokyo 150.

                Consulate-General, Osaka Kokusai Building, 30, 2-Chome Azuchimachi, 1 'igashi-ku, Osaka 541.

Kenya—High Commissioner resident in Athens (see under Greece).*

Kiribati—High Commissioner resident in Suva (see under Fiji).

Korea, Republic of—Embassy, Publishers' Association Building, No. 105-2 Sagan-dong, Chongro-ku (G.P.O. Box 1059), Seoul.

Laos—Ambassador resident in Bangkok (see under Thailand).

Luxembourg—Ambassador resident in Brussels (see under Belgium).

Macau—Consul-General resident in Hong Kong.

Malaysia—High Commission, 193 Jalan Tun Razak, Kuala Lumpur, 50400. (Postal address: P.O. Box 12003, Kuala Lumpur 50764.)

Maldives—High Commissioner resident in Singapore.

Mexico—Embassy, Homero 229 Piso 8, 11570 Mexico D.F.

Nauru—High Commissioner resident in Suva (see under Fiji).

Nepal—High Commissioner resident in New Delhi (see under India).

Netherlands—Embassy, Mauritskade 25, 2514 HD The Hague.

New Caledonia—See under France.

Nigeria—High Commissioner resident in London (see under Britain).

Niue—New Zealand Representative, Tapeu, Alofi (P.O. Box 78), Niue.

Norway—Ambassador resident in The Hague (see under Netherlands).

OECD—N.Z. Permanent Delegation is located at the Embassy in Paris (see under France).

Pakistan—Ambassador resident in Tehran (see under Iran).

Papua New Guinea—High Commission, Waigani (P.O. Box 1144, Boroko) Port Moresby.

Peru—Embassy, Avenida Salaverry 3006, San Isidro, Lima 27 (Postal address: Casilla 5587, Lima 100).

Philippines—Embassy, 10th Floor, Bankmer Building, 6756 Ayala Avenue, Makati, Metro Manila (Box 2208, Makati Central P.O.).

Poland—Ambassador resident in Vienna (see under Austria).

Portugal—Ambassador resident in Paris (see under France).

Romania—Ambassador resident in Vienna (see under Austria).

Saudi Arabia—Embassy, Airport Street, (P.O. Box 94397), Riyadh 11693.

Singapore—High Commission, 13 Nassim Road, Singapore 1025.

Solomon Islands—High Commission, Soltel House, Mendana Avenue (P.O. Box 697), Honiara.

Spain—Ambassador resident in Paris (see under France).

Sri Lanka—High Commissioner resident in Singapore.

Sweden—Ambassador resident in The Hague (see under Netherlands).

Switzerland—Ambassador resident in Bonn (see under Germany, Federal Republic of).

                          Consulate-General, 28A Chemin du Petit-Saconnex, CH-1209 Geneva (Postal address: Case Postale 334, CH-1211 Geneva 19).

Tahiti—See under France.

Tanzania—High Commissioner resident in Athens (see under Greece).*

Thailand—Embassy, 93 Wireless Road (P.O. Box 2719), Bangkok 5.

Tokelau—Office for Tokelau Affairs, Savalalo Street, Apia, Western Samoa (P.O. Box 865, Apia).

Tonga—High Commmission, Corner Taufa'ahau and Salote Roads, Nuku'alofa (P.O. Box 830).

Trinidad and Tobago—High Commission resident in Ottawa (see under Canada).

                                          Consulate, 69 Independence Square, Port of Spain, Trinidad W. 1 (P.O. Box 118).

Tuvalu—High Commissioner resident in Suva (see under Fiji).

Union of Soviet Socialist Republics—Embassy, 44 Ulitsa Vorovskovo, Moscow 121069.

United Kingdom—see Britain.

United Nations—Permanent Mission to the U.N. One U.N. Plaza, 25th Floor, New York, N.Y. 10017, U.S.A.

                                Permanent Mission, Geneva, located at Consulate-General in Geneva (see under Switzerland).

                                Permanent Mission, Vienna, located at Embassy in Vienna (see under Austria).

                                Permanent Delegation FAO, located at Embassy in Rome (see under Italy).

                                Permanent Delegation to UNESCO located at the Embassy in Paris (see under France).

                                Permanent Delegation to U.N. Environment Programme (U.N.E.P.) located at the Embassy in Athens.

United States—Embassy, 37 Observatory Circle N.W., Washington, D.C. 20008.

                             Consulate-General, Suite 530, 630 Fifth Avenue, New York, N.Y. 10111.

                             Consulate-General, Alcoa Building, Suite 970, Maritime Plaza, San Francisco, Ca. 94111.

                             Consulate-General, Suite 1530, Tishman Building, 10960 Wilshire Boulevard, Los Angeles, Ca. 90024.

                             Trade Correspondent, Air New Zealand Ltd., Suite 1707, Waikiki Business Plaza, 2270 Kalakaua Avenue, Waikiki, Honolulu, Hawaii, 96815.

Vanuatu—High Commissioner resident in Honiara (see under Solomon Islands).

Vatican—see Holy See

Venezuela—Ambassador resident in Lima (see under Peru).

Vietnam—Ambassador resident in Bangkok (see under Thailand).

Western Samoa—High Commission, Beach Road (P.O. Box 208), Apia.

Yugoslavia—Ambassador resident in Rome (see under Italy).

Zimbabwe*—High Commission, 6th floor, Harvest House, Baker Avenue, Harare (until October 1986).

Diplomatic, consular, and other representation in New Zealand—

For further information on the official overseas representation in New Zealand listed below refer to the publication Diplomatic Corps and Consular and Other Representatives on sale in Government Bookshops.

Australia—Australian High Commission, 72-78 Hobson Street, Wellington.

                       Consulate-General, 8th Floor, Union House, 32-38 Quay Street, Auckland.

Austria—Ambassador resident in Canberra.

                   Hon. Consul, Pastoral House, 23 The Terrace, Wellington.

                   Hon. Consul, 1 McColl Street, Auckland.

Bangladesh—High Commissioner resident in Canberra.

Belgium—Embassy of Belgium, Robert Jones House, 1-3 Willeston Street, Wellington.

                   Hon. Consul, 13th Floor, Southern Cross Building, Victoria Street East, Auckland.

                   Hon. Consul, 10th Floor, AMP Building, 47 Cathedral Square, Christchurch.

Brazil—Ambassador resident in Canberra.

                 Hon. Consul, 8 Commerce Street, Auckland.

Britain—British High Commission, Reserve Bank Building, 2 The Terrace, Wellington.

                  Consulate-General, Norwich Union Building, Queen Street, Auckland 1.

                  Hon. Consul, 44B Glandovey Road, Fendalton, Christchurch.

Burma—Ambassador resident in Canberra.

Canada—Canadian High Commission, ICI House, Molesworth Street, Wellington.

                  Hon. Consul, 61 Wakefield Street, Auckland.

Chile—Embassy of the Republic of Chile, Robert Jones House, 1-3 Willeston Street, Wellington.

               Hon. Consul, 21 Jellicoe Road, Panmure, Auckland.

China—Embassy of the People's Republic of China, 2-6 Glenmore Street, Wellington.

Colombia—Ambassador resident in Jakarta.

                     Hon. Consul, Charter House, 20 Northcroft Street, Takapuna, Auckland.

Cook Islands—Office of the Cook Islands Representative, 61 Kanpur Road, Broadmeadows, Wellington. Consular Office of the Cook Islands, 330 Parnell Rd, Parnell, Auckland.

Costa Rica—Hon. Consul-General, 2-12 Parnell Road, Auckland.

Cyprus—High Commissioner resident in Canberra.

Czechoslovakia—Embassy of the Czechoslovak Socialist Republic, 12 Anne Street, Wellington.

Denmark—Ambassador resident in Canberra.

                     Hon. Consul-General, 105-109, The Terrace, Wellington.

                     Hon. Consul-General, Equiticorp Building, 73 Symonds Street, Auckland.

                     Hon. Consul, 124 Marshall Street, Woolston, Christchurch.

                     Hon. Consul, 12-20 St. Andrew Street, Dunedin.

Ecuador—Ambassador resident in Tokyo.

                   Hon. Consul, National Mutual Building, Featherston Street, Wellington.

Egypt—Embassy of the Arab Republic of Egypt, Dalmuir House, The Terrace, Wellington.

Fiji—Fiji High Commission, Robert Jones House, 1-3 Willeston Street, Wellington.

           Consul, Tower Block, 47 High Street, Auckland.

Finland—Ambassador resident in Canberra.

                   Hon. Consul-General, 25 Victoria Street, Wellington.

                   Hon. Consul, 20 Dilworth Avenue, Remuera, Auckland.

                   Hon. Consul, Durham Courts, 16 Wordsworth Street, Sydenham, Christchurch.

                   Hon. Consul, Mutual Fund Building, 11 Bond Street, Dunedin.

France—Embassy of France, 14th Floor, Robert Jones House, 1-3 Willeston Street, Wellington.

                 Hon. Consul, corner of Princes Street and Eden Crescent, Auckland 1.

                 Office of the Trade Representative for France, Wyndham Street, Auckland.

                 Hon. Consul, c/o Teachers College, Christchurch.

                 Hon. Consul, c/o University of Otago, Dunedin.

German Democratic Republic—Ambassador resident in Canberra.

Germany (F.R.)—Embassy of the Federal Republic of Germany, 90-92 Hobson Street, Wellington.

                                 Hon. Consul, 17 Albert Street, Auckland 1.

                                 Hon. Consul, 71 Cambridge Terrace, Christchurch.

Greece—Ambassador resident in Canberra.

                  Hon. Consul-General. 37 Courtenay Place, Wellington.

Holy See—Apostolic Nuncature, 112 Queen's Drive, Lyall Bay, Wellington 3.

Hungary—Ambassador resident in Canberra.

Iceland—Hon. Consul-General, 88 Oriental Parade, Wellington.

India—Office of the High Commissioner for India, Princess Towers, 180 Molesworth Street, Wellington.

Indonesia—Embassy of the Republic of Indonesia, 70 Glen Road, Kelburn, Wellington 1.

Iran—Ambassador resident in Canberra.

Iraq—Ambassador resident in Canberra.

Ireland—Ambassador resident in Canberra.

                  Hon. Consul, Dingwall Building, 87 Queen Street, Auckland.

Israel—Embassy of Israel, Williams City Centre, Plimmer Steps, Wellington.

Italy—Embassy of Italy, 34 Grant Road, Wellington.

             Hon. Consular Agent, Dingwall Building, 87 Queen Street, Auckland.

             Hon. Consular Agent, 48 Seven Oaks Drive, Bryndewr, Chistchurch 5.

             Hon. Consular Agent, 161A Eglinton Road, Mornington, Dunedin.

Japan—Embassy of Japan, Norwich Insurance House, 3-11 Hunter Street, Wellington.

                Consulate-General of Japan, National Mutual Building, 37-45 Shortland Street, Auckland.

                Consular Office of Japan, General Building, 77 Hereford Street, Christchurch.

Kiribati—High Commissioner resident in Tarawa.

                   Hon. Consul, 33 Great South Road, Otahuhu, Auckland.

Korea—Embassy of the Republic of Korea, Williams City Centre, Plimmer Steps, Wellington.

                Hon. Consul, A.N.Z. House, cnr Queen and Victoria Streets, Auckland.

                Hon. Consul, 126 Cashel Street, Christchurch.

Laos—Chargé d'Affaires resident in Canberra.

Lebanon—Chargé d'Affaires resident in Canberra.

Libya—Secretary of the People's Committee resident in Canberra.

Malaysia—High Commission of Malaysia, Chase-NBA House, 163-165 The Terrace, Wellington.

                     Hon. Consul, 14 Hazeldean Road, Christchurch.

Mali—Ambassador resident in Beijing.

Mexico—Ambassador resident in Canberra.

                  Hon. Consul, Tatra House, 96 Tory Street, Wellington.

Mongolia—Ambassador resident in Tokyo.

Nauru—Consulate-General, Samoa House, 283 Karangahape Road, Auckland.

Nepal—Ambassador resident in Tokyo.

Netherlands—Royal Netherlands Embassy, 10th Floor, Investment Centre, corner Ballance and Featherston Streets, Wellington.

                            Hon. Consul-General, National Mutual Centre, 41 Shortland Street, Auckland.

                            Hon. Consul, Amsterdam House, 161-163 Kilmore Street, Christchurch.

Nigeria—High Commissioner resident in Canberra.

Niue—Consular Office, 4th Floor, Samoa House, 283 Karangahape Road, Auckland.

Norway—Ambassador resident in Canberra.

                   Hon. Consul-General, 10 Myrtle Street, Lower Hutt.

                   Hon. Consul, 13 Brighton Terrace, Mairangi Bay, Auckland.

                   Hon. Consul, Scales House, 75 Kilmore Street, Christchurch.

                   Hon. Consul, 365 Princes Street, Dunedin.

Pakistan—Ambassador resident in Canberra.

                     Hon. Consul, Commerce Bldg., 14 Emily Place, Auckland.

Papua New Guinea—Papua New Guinea High Commission, 11th Floor, Princess Towers, 180 Molesworth Street, Wellington.

Peru—Embassy of Peru, 3rd Floor, 35-37 Victoria Street, Wellington.

               Hon. Consul, 305 Remuera Road, Auckland.

Philippines—Embassy of the Philippines, 50 Hobson Street, Wellington.

                          Hon. Consul-General, 93-97 Dominion Road, Mount Eden, Auckland 1.

Poland—Ambassador resident in Canberra.

Portugal—Ambassador resident in Canberra.

                     Hon. Consul, Southpac House, 1 Victoria Street, Wellington.

                     Hon. Consul, 117 Arney Road, Remuera, Auckland 5.

                     Hon. Consul, 330 Moray Place, Dunedin.

Qatar—Ambassador resident in Tokyo.

Romania—Embassy, 31 Doris Gordon Crescent, Crofton Downs, Wellington.

Saudi Arabia—Ambassador resident in Canberra.

Singapore—High Commission, 17 Kabul Street, Khandallah, Wellington.

Solomon Islands—High Commissioner resident in Honiara.

Spain—Ambassador resident in Canberra.

               Hon. Vice-Consul, c/o Lees Industries Ltd., Papakura, Auckland.

               Hon. Vice-Consul, 148 Lichfield Street, Christchurch

Sri Lanka—High Commissioner resident in Canberra.

                        Consular of the Democratic Socialist Republic of Sri Lanka, Norwich Insurance House, 117/1 Queen Street, Auckland.

Sweden—Royal Swedish Embassy, Greenock House, 39 The Terrace, Wellington.

                  Hon. Consul, Emcom House, 75 Queen Street, Auckland. Hon. Consul, 178 Cashel Street, Christchurch.

                  Hon. Consul, 40 Jetty Street, Dunedin.

                  Hon. Vice-Consul, The Crescent, Invercargill.

Switzerland—Embassy of Switzerland, Panama House, 22-24 Panama Street, Wellington.

                          Hon. Consul, 48 Carr Road, Mount Roskill, Auckland.

Thailand—Royal Thai Embassy, 2 Cook Street, Karori, Wellington.

Tonga—Agents for Tonga, 41 Captain Springs Road, Onehunga, Auckland 6.

Turkey—Ambassador resident in Canberra.

                  Hon. Consul-General, P.O. Box 22594, Otahuhu, Auckland.

Tuvalu—Hon. Consul, 33 Great South Road, Otahuhu, Auckland.

Uruguay—Chargé d'Affaires resident in Canberra

U.S.A.—Embassy of the United States of America, 29 Fitzherbert Terrace, Wellington 1.

                Consulate-General, General Building, cnr Shortland and O'Connell Streets, Auckland.

                Consular Agent, C/- Lawrence Anderson Buddie, P.O. Box 13250, Christchurch.

U.S.S.R.—Embassy of the Union of Soviet Socialist Republics, 57 Messines Road, Karori, Wellington.

Vanuatu—High Commissioner resident in Port Vila.

Venezuela—Ambassador resident in Canberra.

Vietnam—Ambassador resident in Canberra.

Western Samoa—High Commission for Western Samoa, 1A Wesley Road, Kelburn Wellington.

                                  Consulate-General, Samoa House, 283 Karangahape Road, Auckland.

Yugoslavia—Embassy of the Socialist Federal Republic of Yugoslavia, 24 Hatton Street, Wellington.

                        Hon. Consul, A.M.P. Building, corner of Queen and Victoria Streets, Auckland.

Zambia—High Commissioner resident in Canberra.

European Communities—Head of Delegation resident in Canberra.

4.4 New Zealand Territories

Tokelau

A territory under New Zealand's administration, Tokelau is a scattered group of three small atolls in the South Pacific with a total land area of about 12 square kilometres and an estimated population of 1700 in 1985 Sovereignty was transferred from Britain, and Tokelau included within the boundaries of New Zealand in 1948. Tokelau lies in a border zone between Micronesia and Polynesia, but its inhabitants are Polynesian. They retain linguistic, family and cultural links with Western Samoa although the culture of Tokelau is distinctively shaped by its atoll environment. Tokelauan is spoken with English as a second language.

Administrative responsibility for Tokelau lies with the Administrator, Mr H. H. Francis, Deputy Secretary of Foreign Affairs, who lives in Wellington. Many of his powers are delegated to the Official Secretary who heads the Office for Tokelau Affairs based in Apia by agreement with Western Samoa. The Administrator reports annually to the New Zealand Parliament.

New Zealand is committed to helping Tokelau towards greater self-government and economic self-sufficiency. In 1976 and 1981 invited missions from the UN Special Committee on Decolonisation visited Tokelau and were advised by the people that they did not, for the time being, wish to review the existing ties between New Zealand and the territory. A third mission visited in mid-1986. New Zealand takes steps to ensure that the Tokelau Public Service meets Tokelau's administrative, social, economic and development requirements. The Public Service numbered 174 at 31 March 1985. Almost all public servants are Tokelauans.

New Zealand provided $3.1 million budgetary aid in the year ended 31 March 1986. Tokelau also receives considerable assistance from various international agencies, the UN Development Programme being the largest donor. Western Samoa gives much practical assistance, particularly in the medical field.

Tokelau has a separate legal system, and local government is conducted through representative institutions. The faipule and pulenuku are elected every 3 years by adult suffrage.

Tokelau's economy, largely subsistence, is based on fishing, crops and livestock. The soil is barren and resists fertilisation. Its size, isolation and lack of land-based resources give little scope for economic development. Measures have been taken to re-distribute available cash income. Each atoll has a small general hospital and a primary school.

Ross Dependency

The Ross Dependency consists of the land, permanent ice-shelf and islands in Antarctica between 160 degrees east and 150 degrees west. The land is almost all covered by ice, and is uninhabited except for people working on scientific research programmes. New Zealand has exercised jurisdiction over the territory since 1923 and has maintained an Antarctic Scientific Research Programme since 1957 and operates Scott Base on Ross Island as a permanent base, with a seasonal base at Lake Vanda in the Dry Valleys region. New Zealand is an original party to the Antarctic Treaty, which requires Antarctica to be used for peaceful purposes only, and promotes international co-operation, freedom of scientific investigation, and exchange of information and scientific personnel. The 32 parties to the treaty meet regularly to consider questions within its framework.

4.5 Defence

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 Conditions of Employment Act 1977, 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.

Defence Council. 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 assists the Minister in formulating defence policy or recommendations thereon.

Defence policy

The New Zealand Government is currently undertaking a comprehensive review of defence policies and has established a Defence Committee of Enquiry to assess public attitudes on defence and national security.

International defence relationships

ANZUS—This tripartite security treaty involving Australia, New Zealand and the United States came into force on 29 April 1952. Under this treaty each party recognises that an armed attack in the Pacific area on any of the parties would be dangerous to its own peace and safety and declares that it would act to meet the common danger in accordance with its constitutional processes.

The Five Power Defence Arrangements—The basis of the Five Power Defence Arrangements is not a formal treaty but a statement incorporated in the communique of the meeting of ministers of the 5 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”.

Under these arrangements the Australian Government maintains an RAAF presence in Malaysia, while the New Zealand Government maintains a contingent in Singapore (known as New Zealand Force South East Asia).

Manila Treaty—Australia, Britain, France, New Zealand, Pakistan, the Philippines, Thailand, and the United States signed the South East Asia Collective Defence Treaty, or the Manila Treaty, on 8 September 1954. Although the South East Asia Treaty Organisation (SEATO) established under the treaty was phased out in 1977, the treaty was not abrogated.

Missions of the New Zealand Armed Forces. To achieve current defence policy objectives, the armed forces have the following missions:

  1. To provide forces capable of quick response to any threat to New Zealand itself, of controlling the Exclusive Economic Zone, and at the same time of upholding New Zealand's wider national interests in the area of prime concern—the New Zealand region and the South Pacific.

  2. To maintain trained, mobile, and self-sufficient forces to provide, on request, military assistance, technical aid, surveillance of outside activities, search and rescue, and disaster relief services in the South Pacific.

  3. To achieve the greatest possible degree of interaction with the Australian Defence Force.

  4. To participate effectively alongside allied units in military exercises.

  5. To maintain a capability for limited support of national research and other interests in Antarctica.

  6. To undertake limited joint training and exercises by invitation in South-East Asia, as a demonstration of continuing interest in stability and security in that region, and to continue to respond to requests from the ASEAN and South Pacific countries for limited military training in New Zealand.

  7. To provide a capability to contribute to international peacekeeping operations.

  8. To provide assistance to the New Zealand community.

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, Jakarta, and Bangkok. In addition, some members of these staffs are also 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 French, Indonesian, and United States Embassies in Wellington. Several other countries have service attaches accredited to, but not resident in, New Zealand.

Defence science. Co-ordination of defence science policy is carried out by the Ministry of Defence in conjunction with 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 at Devonport is the main research centre in the Ministry of Defence; its work relates mainly to the operation of defence equipment in New Zealand conditions. It specialises in the fields of metallurgy, underwater acoustics, electronics and computer science. The research ship HMNZS Tui is operated by the RNZN to meet the requirements of the Defence Science programme.

Armed forces overseas

Five Power Defence Arrangements (FPDA)—New Zealand Force South East Asia is an independent national formation commanded by a senior New Zealand officer, and currently comprises a light infantry battalion, a utility helicopter support unit comprising 3 helicopters, a headquarters, and technical workshops, supply and administration supporting units. Current personnel strength is 747 and there are 504 locally employed civilians. One officer is also attached to the staff of the FPDA's Integrated Air Defence System Headquarters at Butterworth in Malaysia.

United Nations observers—New Zealand currently has 4 observers stationed in the Middle East with the United Nations Truce Supervisory Organisation (UNTSO).

Sinai Multinational Force and Observers—New Zealand is a contributor to the Multinational Force and Observers (MFO) in Sinai which was set up to verify compliance with the terms of the Peace Treaty between Egypt and Israel. Australia and New Zealand are jointly providing the helicopter element of the MFO Aviation Support Group. New Zealand's contribution is 36 military personnel and 2 Iroquois helicopters. In September 1985, the Government announced that New Zealand's contribution to the helicopter unit would be withdrawn by 31 March 1986, and replaced initially by a 12-man Army training and advisory team, and subsequently by periodic short-term training teams in a variety of specialisations.

Mutual Assistance Programme (MAP)—All 6 members of ASEAN—Singapore, Malaysia, Indonesia, Thailand, Philippines and Brunei—and 4 South Pacific countries—Fiji, Tonga, Papua New Guinea and Western Samoa—participate in New Zealand's Defence Mutual Assistance Programme. The programme is a practical demonstration of New Zealand's commitment to regional security by contributing to the effectiveness of the Armed Forces in New Zealand's South Pacific neighbourhood and in South East Asia through training and advisory assistance; and by assisting in development projects utilising the Armed Forces engineering and trade skills. As such, it supplements broad foreign policy goals in pursuit of stability and peaceful development. It is “mutual” in the sense that the New Zealand Armed Forces are able to gain operational and practical training experience in regional countries. The range and scope of MAP activities is essentially determined by New Zealand's partners who have widely different needs. The most common forms of assistance are the provision of formal courses or on-the-job training attachments in New Zealand, the deployment of training and technical teams overseas, the attachment of military instructors to other armed forces for periods of up to 2 years; and civic action projects in the engineering and medical fields.

Antarctica support—During October to December 1985 RNZAF C130 Hercules made 17 return trips to McMurdo Sound, transporting 264 626 kg of freight and 615 passengers. One RNZAF U1H Iroquois helicopter was deployed to Antarctica during November-December 1985 to support the New Zealand and United States National Science Foundation's Antarctic research programmes. All 3 services provided ship and air cargo handlers at Harewood and McMurdo Sound during the summer season. Additionally 13 Royal New Zealand Army Engineers assisted in rebuilding Scott Base accommodation and work facilities.

Community assistance

Hydrographic survey—The RNZN is the sole authority for the production of nautical charts in New Zealand and operates 1 survey ship, HMNZS Monowai and 2 inshore survey craft, HMNZ ships Takapu and Tarapunga. The Hydrographic Office also provides tidal analysis data and predictions. During 1985 Monowai was primarily engaged in a survey of the sub-Antarctic islands but also deployed to the Cook Islands and Fiji where surveys were conducted in inshore waters. Takapu and Tarapunga conducted surveys of Doubtful Sound and Wellington Harbour.

Fishery protection—The Navy's frigates are employed part-time and the 4 patrol craft are employed full-time on fishery protection patrols within New Zealand's 200-mile Exclusive Economic Zone. Surveillance flights of the zone are undertaken by RNZAF Orion, Andover and Friendship aircraft.

Search and Rescue (SAR)—Both the RNZAF and the RNZN maintain a search and rescue capability, and both services have taken part in extensive sea and land searches in the past 12 months. During this period the RNZAF rescued 31 people.

Miscellaneous—Other assistance provided to the community included co-operative tasks with Police (helicopter support for searches for marijuana plantations and assisting the Police with their enquiries into the sinking of the Greenpeace vessel, Rainbow Warrior, in Auckland Harbour), Lands and Survey, Meteorological Service, Maori Affairs, Internal Affairs and Civil Defence; explosive ordnance disposal; and the carriage of supplies and personnel to New Zealand offshore islands on behalf of other government departments.

New Zealand Cadet Forces. The Cadet Forces were established under the Defence Act 1971 and comprise the Sea Cadets, Air Training Corps, and Cadet Corps (the last-mentioned Corps was previously known as the School Cadet Corps).

The Cadet Forces are primarily community-based youth training groups aimed at teaching leadership, comradeship, self-confidence, and good citizenship to young people between the ages of 13 and 18 years. The Cadet Forces are a community-based organisation supported by the Navy League, Air Cadet League, RSA, Army Association and schools. The Ministry of Defence assists only to the extent necessary to preserve the special military character of the organisation.

As at 31 December 1985, there were a total of 81 Cadet units (17 Sea Cadet, 49 Air Training Corps and 15 Cadet Corps units). Cadet Forces strength at the same date was 378 officers and 4029 cadets.

Defence expenditure

About 70 percent of the Defence Vote was spent within New Zealand, mainly on salaries, capital works, servicing, and general operating costs in 1984-85. There is a deliberate policy to encourage greater logistic self-sufficiency both within New Zealand and in conjunction with Australia.

Table 4.4. DEFENCE EXPENDITURE

ItemYear Ended 31 March
1982198319841985
Source: Ministry of Defence.
 $(million)
Personnel306.65333.64332.75355.97
Travel, transport, and communications20.3621.3926.3128.78
Maintenance, operation, upkeep, and rental38.6841.6148.3054.28
Materials and supplies116.09124.32139.15150.60
Services10.9313.4417.3216.23
Other operating expenditure6.544.894.936.19
Grants, contributions, subsidies0.620.480.330.36
Capital works15.5518.9418.4716.67
Capital equipment78.2393.4285.42127.33
                    Total593.65652.13672.98756.41

Table 4.5. DEFENCE EXPENDITURE RELATED TO GOVERNMENT EXPENDITURE

Year Ended 31 MarchDefence ExpenditurePercentage of Government Expenditure*Percentage of Gross Domestic Product
*Excludes repayment of public debt.
 $(m)percentpercent
1981455.944.61.9
1982593.654.82.0
1983652.134.82.0
1984672.984.72.0
1985756.414.71.9
Source: Ministry of Defence.

Table 4.6. NUMBER OF DEFENCE PERSONNEL

As at 31 MarchNavyArmyAir ForceTotalCivilians
Source: Ministry of Defence.
19812,8115,7234,33412,8683,149
19822,8615,6764,27112,8083,315
19832,8575,5904,40912,8563,284
19842,7455,5634,29612,6043,219
19852,6875,4314,30612,4243,097

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. Seagoing ships:

*On loan from U.S. Navy.
Frigates (Leander class)Wellington11th Frigate Squadron.
Southland
Waikato
Canterbury
Survey shipMonowai 
Research shipTui* 
Patrol craftHaweaFirst New Zealand Patrol Craft Squadron.
Taupo
Rotoiti
Pukaki
Inshore survey craftTakapu 
Tarapunga 
RNZNVR Inshore Patrol CraftMoa 
Kiwi 
Wakakura 
Hinau 
Diving tenderManawanui 
Dockyard service craftArataki 

Shore establishments. The naval base at Devonport, Auckland, consists of the office of the Commodore Auckland (the operational authority of the RNZN), HMNZS Philomel (the naval barracks and base support establishment), the Royal New Zealand Naval Hospital, the Naval Supply Depot, and the Dockyard.

HMNZS Tamaki is the training establishment for the Navy and is located at Narrow Neck, Devonport, Auckland.

The Dockyard is under the charge of a Captain Superintendent and is capable of refitting all units of the RNZN. The RNZN Armament Depot is situated at Kauri Point and the RNZN Hydrographic Office is at Takapuna.

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.

Table 4.7. STRENGTH OF THE NAVY

CategoryAt 31 March
1982198319841985
Source: Ministry of Defence.
Regular Forces
   Officers (male and female)347405404396
   Ratings (male and female)2,5142,4522,3412,291
         Total2 8612 8572 7452 687
Non-regular Forces
   Royal New Zealand Naval Reserve (Officers)4544
   Royal New Zealand Naval Volunteer Reserve (all ranks)452407439462
   Royal New Zealand Navy Emergency List (officers)46393552
   Royal New Zealand Naval Fleet Reserve (ratings)785780772712

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.

New Zealand Army

The Army is raised, maintained, and organised under the authority of the Defence Act 1971, and the policy outlined in the 1983 Defence Review. It comprises Regular Force, Territorial Force, and Reserve elements.

The army is structured to provide operational forces as follows:

  1. A Ready Reaction Force based on an infantry battalion group consisting of Regular Force personnel.

  2. An Integrated Expansion Force of brigade group size, made up of Regular and Territorial Force personnel.

  3. A deployable Force Maintenance Group, comprised of Regular and Territorial Force personnel.

  4. A capability based on additional existing units to be expanded when required.

Command and administration. The Chief of General Staff commands the Army, supported by the General Staff and the staffs of Defence Headquarters.

As a result of restructuring carried out in early 1984, command is now exercised as follows:

  1. A Headquarters Land Force Command is responsible for operational Forces, Territorial Force manpower management, collective training and Army input into any deployed national headquarters.

  2. A Headquarters Support Command is responsible for individual training, force logistic support and base (home) support.

State of the Army—

Major Regular Force Units—

2 infantry battalions (1 in Singapore); 1 light tank squadron.

Major Integrated Regular Force/Territorial Force Units—

6 infantry battalions; 2 artillery regiments; 3 armoured squadrons (1 reconnaissance, 1 armoured personnel carrier, 1 antiarmoured); 4 engineer squadrons; 4 signals squadrons; 1 SAS group; 3 transport squadrons; 2 field workshops; 3 supply companies; 2 medical battalions; 1 field hospital.

Major Weapons and Armoured Fighting Vehicles—

26 combat reconnaissance vehicles (tracked); 72 M113 armoured personnel carrier-family of vehicles; 10 5.5 inch medium guns; 44 105 mm guns/howitzers; 19 106 mm recoiless rifles.

Table 4.8. STRENGTH OF THE ARMY

CategoryAt 31 March
1982198319841985
*Class A and Class B Reserves.
Regular Forces
   Officers (male and female)712786802778
   Other ranks (male and female)4,9644,8044,7614,653
                Total5 6765 5905 5635 431
Non-regular Forces
   Territorial Force (all ranks)6,2896,1016,2995,963
   Officers Reserve636568613626
   Other ranks*1389125711301263
Source: Ministry of Defence.

Royal New Zealand Air Force

Command and administration. The RNZAF is structured to provide forces for maritime surveillance and reconnaissance, offensive air support and air transport in New Zealand's area of interest.

The Chief of Air Staff commands the Royal New Zealand Air Force and is supported by the Air Staff and the staff of Defence Headquarters.

Organisation. The RNZAF in New Zealand is organised into 2 functional groups. Operations Group, with its headquarters at RNZAF Base Auckland, is responsible for all operational functions and operational flying training. Support Group, with its headquarters at RNZAF Base Wigram, is responsible for all formal individual training (except advanced pilot training) and certain support functions such as supply and depot level maintenance. RNZAF Base Shelly Bay acts as the administrative and domestic base for all RNZAF personnel assigned to Wellington for duty in Air Staff and Defence Headquarters. Operational flying units of the RNZAF are based at RNZAF Base Auckland and RNZAF Base Ohakea. Flying training is conducted at RNZAF Base Wigram while ground training is carried out at RNZAF Bases Auckland, Woodbourne and Wigram. RNZAF Base Te Rapa is the RNZAF's stores depot. The RNZAF Museum and historical centre is located at Wigram.

The RNZAF also has personnel and helicopters serving with New Zealand Force South East Asia and personnel attached to the Sinai Multinational Force as observers.

Engineering. Direction of RNZAF aircraft technical services is co-ordinated by Air Staff. Specific levels of aircraft maintenance are assigned to the bases and squadrons. The overhaul, repair and some manufacturing of aeronautical equipment is carried out at No. 1 Repair Depot, RNZAF Base Woodbourne. A proportion of RNZAF repair and overhaul work is contracted to civil industry in New Zealand and overseas.

Table 4.9. STRENGTH OF THE AIR FORCE

CategoryAt 31 March
1982198319841985
Source: Ministry of Defence.
Regular Forces
   Officers (male and female)711754744730
   Airmen and airwomen3,5603,6553,5523,576
               Total4 2714 4094 2964 306
Non-regular Forces
   Territorial Air Force205208204213
   Active Reserve947903734685
   General Reserve23826695105
               Total1 3901 3771 0031 003

State of RNZAF—Operational Units

RoleAircraftLocation
Maritime6 OrionsRNZAF Base Auckland
Air transport2 Boeing 727sRNZAF Base Auckland
 5 Hercules 
Helicopters11 IroquoisRNZAF Base Auckland
3 SiouxRNZAF Base Auckland
7 Wasp (operated by RNZN)
3 IroquoisSingapore
Offensive air support22 SkyhawksRNZAF Base Ohakea
Advanced flying training15 StrikemastersRNZAF Base Ohakea
VIP transport3 Cessna 421CRNZAF Base Woodbourne
Flying training4 Air tourersRNZAF Base Wigram
15 Air trainersRNZAF Base Wigram
3 Sioux helicoptersRNZAF Base Wigram
3 FriendshipsRNZAF Base Wigram

Security Intelligence Service

The New Zealand Security Intelligence Service Act 1969 gave statutory recognition to the New Zealand Security Service, which was established on 28 November 1956.

Subject to the control of the Minister in Charge of the Security Intelligence Service, the functions of the service are to obtain, correlate, and evaluate intelligence relevant to security; to advise ministers on security matters; to co-operate as far as practicable and necessary with State Services and other public authorities in New Zealand and abroad in the performance of its functions; and to inform the New Zealand Intelligence Council on any new area of potential espionage, sabotage, terrorism, or subversion in respect of which the Director has considered it necessary to institute surveillance.

It is not a function of the Security Intelligence Service to enforce measures for security nor to institute surveillance of any person or class of persons by reason only of his, her, or their involvement in lawful protest or dissent in respect of any matter affecting the Constitution, laws, or the Government of New Zealand.

There is a Commissioner of Security Appeals, to whom complaints may be made in writing at the office of the High Court in Wellington.

During the year ended 31 March 1985, 3 interception warrants were issued for the “detection of activities prejudicial to security” (section 4A(1)(a)(i) of the New Zealand Security Intelligence Service Act 1969). The average length of time for which these warrants were in force was 2 months and 26 days. The method of interception used in respect of each warrant involved the use of a listening device.

Table 4.10. EXPENDITURE ON SECURITY INTELLIGENCE SERVICE

Year Ended 31 MarchGross ExpenditureIncrease Over Previous Year
Source: Security Intelligence Service.
$(000)percent
19813,34151
19823,87916
19834,42614
19844,377−1
19854,5895

Further information

Diplomatic Corps and Consular and other Representatives—Ministry of Foreign Affairs.

New Zealand Representatives Overseas—Ministry of Foreign Affairs.

Report of the Ministry of Foreign Affairs (Parl. paper A. 1).

*It is intended that during 1986 the High Commissioner in Harare should be accredited to Kenya and Tanzania, and also to Botswana and Zambia.

Chapter 5. 5 Population

5.1 Population totals

Sources of data. Population statistics are based primarily on the 5-yearly Census of Population and Dwellings. Post-censal population estimates are based on final counts from the latest census, adjusted in accordance with later figures of births, deaths and migration. Population estimates for sub-national areas, for example boroughs, cities and counties, also take into account local economic developments, building activity, the numbers on school rolls, changes in boundaries and other factors leading to, or indicating, changes in population.

The population census, and other population statistics in New Zealand generally are on a “de facto” basis, that is, they refer to the population physically present at the place of enumeration on census night.

The most recent Census of Population and Dwellings in New Zealand was taken on 4 March 1986, and the provisional counts for sub-national areas have been released regularly since early April, as they became available.

In population data all references to New Zealand relate solely to geographic New Zealand. Though Tokelau is constitutionally part of New Zealand, for geographical reasons it is administered separately. The Cook Islands and Niue are self-governing but the inhabitants are New Zealand citizens.

Population change. By world standards New Zealand's population is small, 3.3 million at the end of 1985. New Zealand's first million of population was recorded in 1908, 68 years after signing the Treaty of Waitangi. In 1952, 44 years later, the second million was reached, and the third million late in 1973. Recent population projections indicate that the fourth million will not be reached until the twenty-first century.

Population growth has 2 components—natural increase (excess of births over deaths) and net migration (excess of arrivals over departures). In its early years in New Zealand, the bulk of the population increase was through migration. From the late 1870s natural increase displaced immigration as the chief contributor to population growth. At the 1881 Census the percentages of the total population born in New Zealand and born overseas were approximately equal. Each succeeding census until 1951 recorded an increased proportion of the population being New Zealand-born. At the time of the 1951 census New Zealand-born made up 86 percent of the population. Since 1951, the proportion of New Zealand-born has fallen slightly. Indications are however, that this is largely a result of increasing numbers of overseas tourists and travellers being enumerated in the population census. At the 1981 Census, data based on the usually resident population (that is, the population excluding tourists and other visitors) showed that 85 percent had been born in New Zealand.

Natural increase has accounted for over three-quarters of the growth in New Zealand's population during the present century. However, the rate of natural increase has dropped substantially over the last quarter of a century, from 1.8 percent in 1960-61 to 1.4 percent in 1969-70 and further to 0.8 percent in 1983-85. The fall has resulted largely from the steep decline in the birth rates recorded since the early 1960s.

Compared with some European countries New Zealand's rate of natural increase is still relatively high. In 1984 Austria, England and Wales. Norway, Scotland and Sweden all recorded natural increase rates of less than 0.2 percent, while in Denmark and the Federal Republic of Germany deaths exceeded births.

The growth of the population in the intercensal period 1976-81 was unusually low. It represents a period that experienced substantial net migration losses and low birth rates. Previously, the lowest rates recorded were those of 1926-36 (which included the economic depression), 1936-45 (which included World War II), and 1966-71 (which experienced a marked change in migration patterns). The low rate of intercensal population growth recorded between 1976 and 1981 (46 354), is made more significant because the increase of 266 752 during the previous intercensal period was the highest ever recorded in New Zealand.

Table 5.2 gives final population counts for the 1961-81 Census of Population and annual population estimates at 31 December 1981-85. These figures exclude members of New Zealand armed forces who were overseas and also members of the armed forces of other countries who were in New Zealand.

The 1981 Census of Population was held on 24 March 1981 and it produced a de facto count of 3 175 737 people. This represented an increase since the 1976 Census of 46 354 (or 1.5 percent) which is the smallest intercensal increase ever recorded in New Zealand. It compares with a record increase of 266 752 (or 9.3 percent) for the intercensal period 1971-76. These variations in rate of population growth are attributable mainly to the dramatic fluctuations in external migration balance, from a total net immigration of 103 826 during March years 1967-71 to a total net emigration of 102 493 during 1972-76. Fluctuations in external migration balance have continued almost unabated, with pronounced repercussions for the annual growth rate in the population.

During the year ended 31 December 1985, the New Zealand population increased by only 11 800 or 0.36 percent, and this was the smallest annual increase since 1980.

The downturn in population growth rate is largely due to a significant turn around in the balance of external migration, from a net gain (3700 in 1984) to a net loss (12 600 in 1980). A further factor was the small drop in the natural increase of population (excess of births over deaths), from 26 258 1984 to 24 327 in 1985. However, judging by the annual figures in Table 5.2, the 1981-86 intercensal population growth is expected to exceed the 1976-81 intercensal growth.

Table 5.1. POPULATION CHANGE

December YearBirthsDeathsArrivalsDeparturesPopulation change due toTotal Population Change
Natural Increase*Net Migration

* Excess of births over deaths.

† Excess of arrivals over departures. A minus sign indicates an excess of departures over arrivals. Excludes armed forces and through passengers.

197754,17925,961883,040908,55128,218−25 5112,707
197851,02924,669954,906981,19126,360−26 28575
197952,27925,3401 079 8831 107 30826,939−27 425−486
198050,54226,6761 155 8861 166 77523,866−10 88912,977
198150,79425,1501 125 4621 131 70225,644−6 24019,404
198249,93825,5321 077 1411 067 17924,4069,96234,368
198350,47425,9911 082 4161 067 17324,48315,24339,726
198451,63625,3781 144 2911 140 40626,2583,88530,143
1985P51,80827,4811 238 9221 251 81224,327−12 89011,437

Table 5.2. POPULATION ESTIMATES AND FINAL COUNTS

PeriodTotal Population*Intercensal/Annual Increase
MalesFemalesTotalNumericalPercent

* *Numbers of persons in New Zealand armed forces overseas are excluded.

 At Census Date
18 April 19611 213 3761 201 6082 414 984240,92211.08
22 March 19661 343 7431 333 1762 676 919261,93510.85
23 March 19711 430 8561 431 7752 862 631185,7126.94
23 March 19761 562 0421 567 3413 129 383266,7529.32
24 March 19811 578 9271 596 8103 175 73746,3541.48
 At 31 December
19801 581 5001 594 9003 176 40012,5000.40
19811 588 2001 607 6003 195 80019,4000.61
19821 604 8001 625 0003 229 80034,0001.06
19831 625 2001 644 3003 269 50039,7001.23
19841 638 3001 661 2003 299 50030,0000.92
1985P3 311 30011,800 

Males and females. New Zealand's population sex structure, which had always contained slightly more males, has also changed. In 1971, for the first time in the history of census taking in this country, a Census of New Zealand population recorded a slight excess of females—1 430 836 males and 1 431 775 females, a ”sex ratio” of 999 males per 1000 females. By 31 December 1985, this ratio had dropped to 985 males per 1000 females. There are marked differences in the sex composition of the population of different parts of New Zealand. Females tend to outnumber males in urban areas and to be outnumbered in rural areas. One important reason is doubtless the generally better employment and educational opportunities for women and girls in the larger industrial and commercial centres.

Age structure. The age structure of a population is the composite result of the past trends in fertility, mortality and migration. In New Zealand, as in most Western nations, the peaks and troughs in births have had major bearings on the age structure of population this century. The main changes in the age structure of New Zealand population during 1961-85 are summarised in Table 5.3. The age-sex pyramid illustrates the changes between 1971 and 1985.

The effect of the fertility decline and the drop in the number of births during the 1970s is clearly evident in the narrowing base of the pyramid. Whereas 33.1 percent of the population was under 15 years of age in 1961, the figure had dropped to 24.7 percent in 1985. Moreover, in 1961, children under 5 and the retirement-age population (aged 60 years and over) constituted approximately the same percentage (12 percent) of New Zealand population. In 1985, there were nearly twice as many people aged 60 years and over (482 000) as children under 5 years of age (253 000), and they accounted for 14.6 percent of total New Zealand population.

Another trend which has major socio-economic significance is the steady rise in the proportion of total population in the younger working ages, 20-44 years, from less than 32 percent in 1961 to over 37 percent in 1985—a consequence of the post-World War II high birth numbers. In the last quarter of a century, the median age—the age at which half the population is younger and half is older—has risen by 3.8 years, from 25.6 years in 1961 to 29.4 years in 1985. The continued ageing of population has manifold implications for policy development and planning.

Table 5.3. POPULATION AGE GROUPS

Age Group (Years)196119761985*196119761985*
numberpercent

* Estimated as at 31 March 1985.

Under 5292,073296,105252,96012.19.57.7
5-14506,869632,100558,52021.020.217.0
15-19186,219300,737304,1407.79.69.2
20-591 134 9191 493 7061 693 65047.047.751.5
60-6486,255127,228142,7603.64.14.3
65 and over208,649279,507339,3108.68.910.3
              Total2 414 9843 129 3833 291 300100.0100.0100.0

5.2 Distribution of population

Detailed population statistics are compiled for each census and are published in 3 parts as Volume 1, Location and Increase of Population, Part A. Population Size and Distribution, Part B. Population Density and Part C. Usually Resident Population of the Census of Population and Dwellings. In the case of the 1981 Census, prior to the publication of the subject-matter volumes a series of 10 Regional Statistics bulletins has been published, each giving final population, dwelling, and household statistics by population centre and subdivision for a major area of New Zealand. Similar publications will be produced for the 1986 population census results.

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.

Table 5.4 gives the population of the North and South Islands since 1901.

Post-Population Census estimates reveal that the population of the North Island continues to increase at a greater rate than that of the South Island. At 31 March 1985 the North Island population was 2 439 100, an increase of 5.0 percent on the 1981 Population Census figure of 2 322 989. The corresponding South Island population was 852 200, a decrease of 0.1 percent on the 1981 Population Census figure of 852 748. However, between the 1981 Population Census and 31 March 1984, births in the South Island totalled over 36 400 and deaths over 22 400, giving a natural increase of approximately 14 000. The fact that the total population decrease was 1600 indicates a net migration outflow during the period of approximately 15 600 but the relative movements to and from overseas and the North Island are not available. During the year ended 31 March 1985 the South Island is estimated to have increased its population by 1100 as against a decrease of about 1600 during the 3-year period 1981 to 1984, and a decrease of 8326 during the 1976 to 1981 intercensal period.

Table 5.4. POPULATION IN NORTH AND SOUTH ISLANDS

Census YearTotal PopulationPercentages
North IslandSouth IslandTotalNorth IslandSouth Island

* Estimated population as at 31 March.

1901431,471384,391815,86252.947.1
1911610,599447,7131 058 31257.742.3
1921791,918479,7501 271 66862.337.7
19361 018 038555,7741 573 81264.735.3
19561 497 364676,6982 174 06268.931.1
19661 893 326783,5932 676 91970.729.3
19762 268 393860,9903 129 38372.527.5
19812 322 989852,7483 175 73773.126.9
1985*2 439 100852,2003 291 30074.125.9

Table 5.5. POPULATION OF STATISTICAL AREAS

Statistical Area*Area (Square Kilometres)Population Census 1981Estimated Population as at 31 March 1985

* Includes adjacent islands and land reclamations where appropriate.

† Areas refer to 1 April 1985.

‡ Includes Chatham Islands County.

§ Includes Stewart Island County.

Northland12,646114,295124,400
Central Auckland5,578829,519894,000
South Auckland - Bay of Plenty36,881491,304522,500
East Coast10,90848,57349,500
Hawke's Bay11,283147,722152,800
Taranaki9,724105,153108,200
Wellington27,751586,423587,700
                Total, North Island114 7712 322 9892 439 100
Marlborough10,98936,02737,200
Nelson17,53077,22379,400
Westland15,28923,489-23 100
Canterbury43,230424,280422,200
Otago36,801183,559182,100
Southland§28,905108,170108,200
                Total, South Island152 744852 748852 200
                Total, New Zealand267 5153 175 7373 291 300

Urban areas are statistical concepts embracing 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. Minor adjustments of main urban area boundaries have been made because of the peripheral growth of population in some of the urban areas between 1976 and 1981.

A change of definition of 'main urban areas' applicable to the Greater Auckland and Greater Wellington areas has been made and became effective on 1 April 1984. The Auckland and Wellington Main Urban Areas now comprise what were formerly defined as the respective Combined Urban Areas and the former so-called Main Urban Areas are now 'zones'.

For the 1981 Census, a new group of 14 secondary urban areas, with populations of over 10 000 but below 30 000 was created.

Table 5.6. POPULATION IN MAIN URBAN AREAS

Main Urban AreaPopulation Census 1981Estimated Population at 31 March 1985

* The Auckland and Wellington Main Urban Areas each comprise four “zones”.

Main Urban Area—
    Whangarei40,21243,500
    Auckland*769,558825,200
       Northern Auckland Zone149,321169,400
       Western Auckland Zone116,407129,600
       Central Auckland Zone275,914273,100
       Southern Auckland Zone227,916253,100
    Hamilton97,907103,800
    Tauranga53,09760,300
    Rotorua48,31452,100
    Gisborne32,06232,600
    Napier51,33053,100
    Hastings52,56355,400
    New Plymouth44,09546,400
    Wanganui39,59539,800
    Palmerston North66,69169,700
    Wellington*321,004318,100
       Upper Hutt Valley Zone36,52537,300
       Lower Hutt Valley Zone94,73293,700
       Porirua Basin Zone54,65354,400
       Wellington City Zone135,094132,700
    Nelson43,12144,400
    Christchurch289,959289,400
    Timaru29,22528,700
    Dunedin107,445104,600
    Invercargill53,86854,100
Total, 17 Main Urban Areas2 140 0462 221 200

Local government regions. The Local Government Act of 1974 provides for the constitution of these regions, the mandatory function of such being regional planning and civil defence. At the time of preparing this publication, 22 regions had been determined by the Local Government Commission. These cover every territorial local authority in New Zealand with the exception of Great Barrier Island and Chatham Islands Counties. Extra-county islands and shipboard populations are also excluded.

The populations in Table 5.7 are those enumerated at the 1981 Population Census and estimated for the local government regions as they existed at 31 March 1985; they may be subject to modification as a result of objections lodged by various Local Authorities.

Table 5.7. POPULATION IN LOCAL GOVERNMENT REGIONS

Local Government RegionPopulation Census 1981Estimated Population as at 31 March 1985

* Includes the populations of extra-county islands (islands not within county or city or borough boundaries) and populations on board vessels in New Zealand waters.

† Includes the population of Great Barrier Island County.

‡ Includes the population of Chatham Islands County.

Northland113,994124,100
Auckland827 408x891,700
Thames Valley54,34357,300
Bay of Plenty172,480189,800
Waikato221,850232,300
Tongariro40,08940,100
East Cape53,29554,500
Hawke's Bay137,840142,900
Taranaki103,798106,700
Wanganui68,70268,400
Manawatu113,238117,100
Horowhenua49,29650,900
Wellington323,162320,300
Wairarapa39,68939,000
Remainder North Island 3 805x4,000
        Total, North Island2 322 9892 439 100
Nelson Bays65,93468,100
Marlborough37,55737,400
West Coast34,17833,800
Canterbury336,846339,300
Aorangi84,77281,600
Clutha-Central Otago45,40247,300
Coastal-North Otago138,164134,800
Southland107,905107,900
Remainder South Island 1,9902,000
        Total, South Island852 748852 200
        Total, New Zealand3 175 7373 291 300

Table 5.8. POPULATION OF 50 LARGER CITIES AND BOROUGHS

CitiesPopulation Census 1981Estimated Population as at 31 March 1985
Manukau159,363182,800
Christchurch164,680161,700
Auckland144,963143,600
Wellington135,688133,200
Waitemata87,45299,000
Hamilton91,10996,700
Dunedin77,17674,500
Takapuna65,40772,500
Lower Hutt63,24562,900
Palmerston North60,10562,700
Napier48,77050,500
Invercargill49,44649,700
Tauranga37,09942,100
Porirua41,10440,600
Whangarei36,55039,400
Hastings36,08338,200
Wanganui37,01237,100
New Plymouth36,04837,000
East Coast Bays28,30335,100
Nelson33,30434,300
Upper Hutt31,40532,000
Gisborne29,98630,500
Timaru28,41227,900
Mount Albert26,46226,100
Papakura22,48224,100
Birkenhead21,32423,300
Papatoetoe21,70022,000

Table 5.8. POPULATION OF 50 LARGER CITIES AND BOROUGHS

BoroughsPopulation Census 1981Estimated Population as at 31 March 1985

NOTE: Because of rounding, individual figures in this table do not always add to give the stated total.

Mount Roskill33,57733,500
Mount Wellington19,52819,250
Tokoroa18,71318,850
Blenheim17,84918,750
Masterton18,78518,400
Mount Eden18,30518,000
Kapiti15,42316,200
Taupo13,93615,150
Onehunga15,38615,100
Levin14,65214,850
Ashburton14,15114,200
Howick13,86613,900
Oamaru13,04312,850
Mount Maunganui11,39112,700
Feilding11,52212,100
Tawa12,21611,900
One Tree Hill11,07811,000
New Lynn10,44510,450
Devonport10,41010,400
Otahuhu10,29810,300
Northcote10,06110,300
Glen Eden9,40610,050

Urban concentration of population. The bulk of New Zealand's population is located in urban areas, where until 1976 the most rapid growth rates occurred. This was due largely to the development of both manufacturing and tertiary industries in urban areas, which provided employment for a growing labour force. Other factors, including better social, cultural, educational, and economic opportunities, served to attract persons to these areas, and the majority of immigrants tended 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), had combined to produce a noticeable rural-urban drift. Urban concentration features are common to “developed” countries at advanced stages of economic development.

The 1981 Census of Population and Dwellings figures show that many rural areas and a number of small and intermediate sized towns located outside urban areas are continuing to decline in population, although there are indications that the rate of urbanisation is stabilising. Horticultural and forestry developments in recent years have undoubtedly contributed to this situation. Thirty-eight counties recorded smaller populations than at the previous census in 1976, compared with 40 between 1971 and 1976. Of 54 small self-administrative towns (1000 to 4999 population) 25 had declined in population between 1976 and 1981 compared with 12 during the previous intercensal period. Ten intermediate towns (5000 to 9999 population) showed decreases in population compared with 2 at the previous census.

Of the 9500 rural gain recorded on 1981 boundaries between 1976 and 1981, over 5000 was within rural areas lying outside urban areas, but within the 7 major population centres forming the statistical divisions, so indicating a continuation of the urban expansion that occurred between the 1971 and 1976 Censuses. The major population increases in the rural components of statistical divisions between the 1976 and 1981 Censuses were in the Auckland and Christchurch Statistical Divisions, which recorded gains of 3965 (12.06 percent) and 1350 (6.88 percent) respectively. With the exception of the Napier Hastings Statistical Division, the rate of population increase in the rural components of all other statistical divisions slowed during the latest intercensal period (for example, the rural component of Hamilton Statistical Division recorded a growth rate of 4.60 percent for 1971-76 but of only 0.39 percent for 1976-81). Palmerston North and Dunedin Statistical Divisions, in fact, both recorded decreases during the latest intercensal period.

Table 5.9 shows intercensal population changes in the rural components of the 7 statistical divisions. The rural component within each statistical division is made up of county territory outside main and secondary urban areas, towns with populations of under 1000, and (where applicable) extra-county islands.

Table 5.9. STATISTICAL DIVISIONS: POPULATION CHANGES IN RURAL COMPONENT

Statistical DivisionPopulation of Rural ComponentIncrease or Decrease
197119761981NumberPercent
1971-761976-811971-761976-81
Auckland28,04032,87636,8414,8363,96517.2512.06
Hamilton25,78226,96727,0711,1851044.600.39
Napier - Hastings7,4957,6927,9981973062.633.98
Palmerston North11,14911,24111,08892-1530.83-1.36
Wellington2,0002,4692,5684699923.454.01
Christchurch17,19219,61220,9622,4201,35014.086.88
Dunedin6,4847,0066,474522-5328.05-7.59
        Total, all statistical divisions98 142107 863113 0029 7215 1399.914.76

Statistical divisions. Statistical divisions are statistical concepts and have no general administrative purpose. They were introduced in 1971 and provide stable, and comparable boundaries for the larger centres of population which may cover several territorial local authorities. 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.

Internal migration. At the 1981 Census of Population and Dwellings the questions on internal migration related to place of usual residence at the 1981 Census, and usual residence 1 year and 5 years prior to the census.

Between the censuses of 1976 and 1981, 1 203 435 persons of the usually resident New Zealand population aged 5 and over changed their place of residence within New Zealand at least once. They represented 43.3 percent of the population resident in New Zealand at both censuses. In 1981 the remaining 56.7 percent (1 574 319 persons) were still living in the same dwelling they occupied in 1976.

The regional patterns of migration show that between 1976 and 1981 there were only 2 areas of New Zealand in which incoming migrants exceeded outgoing migrants. These were the upper half of the North Island and the northern tip of the South Island.

Table 5.10 shows the movements of persons arriving and leaving each statistical area (the 13 broad geographic regions into which New Zealand is divided for statistical purposes):

Table 5.10. REGIONAL PATTERNS OF MIGRATION, 1976-81*

Statistical AreaNorth IslandStatistical AreaSouth Island
Persons Arriving in AreaPersons Leaving AreaPersons Arriving in AreaPersons Leaving Area

*Excludes children under 5 years and other persons who are not resident in New Zealand or arc without a specified address at both census dates.

†To ensure anonymity within small groups of figures, all cell values have been rounded using simple random rounding to base 3. As a result, a total will not necessarily be the exact sum of its component parts.

Northland17,42414,880Marlborough6,3335,931
Central Auckland66,23149,746Nelson10,8759,417
South Auckland-  Westland3,3574,173
   Bay of Plenty55,48249,311Canterbury34,41636,336
East Coast6,3397,722Otago17,75721,543
Hawke's Bay17,63717,904Southland9 51613 113
Taranaki10,80013,347
Wellington51,17163,900        Total307 326307 326

External migration

After recording gains of 3180 and 6558 in permanent and long-term migration for the years 1983 and 1984 respectively, there was a loss of 8084 migrants in the year ended March 1985. The major factor in this loss was an increase of 10 180 or 29.8 percent in departures, while permanent and long-term arrivals decreased by 4426 or 11.0 percent.

Total migration figures (excluding only movements of armed forces) are shown in Tables 5.11 and 5.12. “Long-term”, as used here, indicates arrivals or departures for an intended stay of 12 months or more. Conversely, “short-term” refers to less than 12 months.

Through passengers, not included in the “All Passengers” totals, are persons who arrive in New Zealand but do not pass through immigration controls and do not complete arrival declarations. Also described as transit passengers, they normally depart on the same flight or vessel within a few hours of arriving in New Zealand.

The following graph illustrates all passenger migration, excluding through passengers and crews. The excess of departures over arrivals recorded during the March years 1967-68 to 1969-70 was a migration feature which has not occurred since the depression of the 1930s. Although this period was followed by 6 years of migration gains, the March years 1976-77 to 1981-82 recorded substantial annual losses, totalling an excess of 107 236 departures over arrivals. In 1983 and 1984 there was a reversal of this trend recording an excess of arrivals over departures of 15 442 and 10 557 respectively. There was a small gain of 217 in the 1985 March year.

Table 5.11. ARRIVALS IN NEW ZEALAND

Year Ended 31 MarchLong-term (Including Permanent) ArrivalsShort-term MovementsAll Passenger ArrivalsThrough PassengersCrewsTotal Arrivals
N.Z. Residents ReturningTemporary Visitors Arriving
198144,965462,006463,456970,427138,378170,9611 279 766
198245,292428,414472,581946,287129,866164,0471 240 200
198345,854381,951487,658915,463161,416167,0741 243 953
198440,705363,722518,441922,868161,170166,0291 250 067
198536,243383,974596,9951 017 212156,038156,6441 329 894

Table 5.12. DEPARTURES FROM NEW ZEALAND

Year Ended 31 MarchLong-term (Including Permanent) DeparturesShort-term MovementsAll Passenger DeparturesThrough PassengersCrewsTotal Departures
N.Z. Residents DepartingTemporary Visitors Departing
198169,790451,300465,546986,636138,378170,0801 295 094
198256,774419,458474,798951,030129,866164,4861 245 382
198342,674373,193484,154900,021161,416166,6641 228 101
198434,147361,662516,502912,311161,170166,0951 239 576
198544,327382,316590,3521 016 995156,038156,6441 329 677

Table 5.13. SEX OF PERSONS ARRIVING AND DEPARTING

Year Ended 31 MarchArrivalsDeparturesExcess of Arrivals Over Departures*
MalesFemalesTotalMalesFemalesTotal

*A minus sign denotes an excess of departures over arrivals.

1981513,469456,958970,427520,370466,266986,636-16 209
1982500,946445,341946,287502,856448,174951,030-4 743
1983486,896428,567915,463478,186421,835900,02115,442
1984488,066434,802922,868483,292429,019912,31110,557
1985538,749478,4631 017 212539,201477,7941 016 995217

Long-term migration.Table 5.14 gives an analysis of long-term (including permanent) arrivals and departures for March years. In the year ended March 1985 there was a net loss of 8084 from permanent and long-term migration. The main area of change was in the number of departures, which increased by 10 180 or 29.8 percent over the corresponding figures for the previous year.

Table 5.14. LONG-TERM ARRIVALS AND DEPARTURES

Year Ended 31 MarchLong-term (Including Permanent) ArrivalsLong-term (Including Permanent) Departures
Permanent ArrivalsLong-termPermanent and Long-term ArrivalsPermanent Departures of New Zealand ResidentsLong-termPermanent and Long-term Departures (Immigrants)
N.Z. Residents Returning*Long-term Visitors*N.Z. Residents Depart'g*Long-term Visitors Depart'g*

* Arrivals: after absence of, or intending to stay, 12 months or more. Departures: persons intending to stay away for, or after stay in New Zealand of, 12 months or more.

198112,52825,7746,66344,96525,53639,1985,05669,790
198212,31226,8306,15045,29219,71933,0504,00556,774
198312,59527,1056,15445,85412,31426,1974,16342,674
198410,02924,3206,35640,7059,18220,9164,04934,147
19859,70720,2226,31436,24312,12028,0034,20444,327

Table 5.15. AGE AND SEX OF LONG-TERM MIGRANTS

Age, in YearsPermanent and Long-term ArrivalsPermanent and Long-term DeparturesExcess of Arrivals Over Departures*
MalesFemalesTotalMalesFemalesTotal

*A minus sign denotes an excess of departures over arrivals.

Under 154,3454,0008,3453,7063,5837,2891,056
15-191,5661,6863,2521,6952,3114,006-754
20-242,4963,2375,7336,6136,95913,572-7 839
25-448,0897,22715,3168,6926,90815,600-284
45 and over1,8791,7183,5971,9321,9283,860-263
   Total18 37517 86836 24322 63821 68944 327-8 084

5.4 Births

Registration. The law regarding the 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.

Birth 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 stillbirths, except where multiple births are discussed. A special classification of stillbirths 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 later date in a special register kept by the Registrar-General. Such cases include elderly people requiring evidence of age for social welfare purposes.

Numbers and rates.Table 5.16 shows the numbers of births and selected fertility indexes. Late registrations (see above) have been excluded from the figures. The crude birth rate fell in the early 1960s, and in the later 1960s appeared to stabilise at 22 to 23 births per 1000 of mean population. During the 1970s the crude birth rate continued to decline, and following a period of stability in the late 1970s, has fallen again.

A more refined cross-sectional measure called the total fertility rate is also shown in the table. In New Zealand, the total fertility rate has fallen below the intrinsic replacement level since 1979 and now seems to be stabilising at a rate which is just above 1.9 births per woman. The total fertility rate at which any population replaces itself, under certain conditions, is approximately 2.10 births per woman. In New Zealand this situation is unlikely to arise until early next century because of the existing population age-structure.

Table 5.16. BIRTHS

Calendar YearLive BirthsCrude Birth Rate*Total Fertility RateReproduction Rates
Gross RateNet Rate

* Per 1000 of mean population.

† Average number of births a woman would have during her reproductive life if she was exposed to the fertility rates characteristic of various child bearing age-groups.

‡ For definition see text.

198050,54216.082.030.9900.967
198150,79416.092.010.9780.956x
198249,93815.691.950.9440.922
198350,47415.651.920.9340.912
198451,63615.851.930.9410.919
1985P51,79815.801.930.9380.916

Reproduction index. The reproduction indexes are based on the fact that the future size of a population is related to the number of female children born to women in the reproductive age groups at any given time. The gross reproduction rate is based on the average number of girls that will be born to a woman during her reproductive period given the prevailing age-specific fertility rates. The net rate takes into account prevailing mortality rates. A net reproduction rate of 1.0 indicates zero population growth if the population is closed to migration, and its age-sex structure has long-term stability.

Sex of children born. The numbers of boys and girls born during the latest 5 years are given in Table 5.17. In each year more boys than girls are born, a disparity in births that is outweighed by the higher death rates of males at every age level. The death rate per 1000 live births for babies under 12 months of age in 1984 was 13.29 for boys and 9.74 for girls. Per 1000 mean population the death rate for children of from 1 to 4 years of age was 0.81 for boys and 0.37 for girls; for children aged 5 to 14 years it was 0.34 for boys and 0.22 for girls; and the pattern repeated itself for each age group through adolescence and adult life.

Table 5.17. SEX OF CHILDREN BORN

YearNumber of Births ofMale Births per 1000 Female Births
MalesFemales
198025,93824,6041,054
198126,12624,6681,059
198225,69824,2401,060
198325,87624,5981,052
198426,49525,1411,054

Multiple births. In 1984 there were 580 confinements resulting in all live multiple births, including 12 cases of triplets. There were also 11 cases where one of the twins was stillborn and 4 cases where both twins were stillborn.

Ages of parents. Information on the relative ages of parents of nuptial living children whose births were registered in 1984 is shown in Table 5.18. Registrations of births under section 14 of the Births and Deaths Registration Act 1951 are excluded.

Table 5.18. BIRTHS: AGES OF PARENTS

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

* Including 1 case of quadruplets all live-born and 11 cases of triplets all live-born.

Total Births Registered in 1984
Under 2011454415930821---858
20-24543,7025,0791,1032414516103210,255
25-2927268,2286,1111,200237572714416,606
30-34-719234,4782,289432130411658,385
35-39114784021,073452111282212,182
40-44--1129601146622111314
45 and over--21-6635-23
        Total1715 05714 48012 1544 8711 288387131711338 623*

Table 5.19. BIRTHS 1984: PREVIOUS ISSUE OF PARENTS*

Age of Mother, in YearsAverage IssueNumber of Previous IssueTotal Nuptial Cases
0123456-910-1415 and Over

*Children born alive.

 Number of Mothers
Under 201.27653192112-----858
20-241.645,3363,6411,041201306---10,255
25-292.025,9996,1883,1049902585116--16,606
30-342.481,9792,7042,270920338111621-8,385
35-393.0044052351335518489726-2,182
40-443.84566652442622408-314
45 and over5.0431523333-23
        Total2.0814 46613 3156 9962 51483928219318-38 623

First birth. Statistics of nuptial first confinements show that, during the last 5 years, the percentages of first confinements during the first year and first 2 years after marriage have stabilised at a lower level than that prevailing in earlier periods.

The average ages of women at the birth of their first child were as follows: 1964, 23.65; 1974, 23.29; 1980, 24.76; 1981, 24.88; 1982, 25.13; 1983, 25.44 and 1984, 25.74 years. These figures refer to nuptial births only.

Table 5.20. BIRTHS: FIRST CONFINEMENTS

YearTotal Nuptial CasesTotal Nuptial First CasesPercentage of First Cases to Total CasesFirst Cases Within 1 Year After MarriageFirst Cases Within 2 Years After Marriage
NumberPercentage to Total First CasesNumberPercentage to Total First Cases
198039,27414,98938.173,78325.246,75045.03
198138,92114,66237.67'3 71525.346,73945.96
198238,14714,37037.673,51224.446,53245.46
198338,07114,53838.193,52524.256,59945.39
198438,62314,46637.453,35023.166 4.2544.41

Table 5.21. FIRST CONFINEMENTS: AGE OF MOTHER

Age of Woman, in YearsPercentage of Total First Confinements
19341954197419831984
Under 208.909.0817.965.294.51
20-2440.3947.7148.1440.0836.89
25-2932.7927.7926.7438.8041.47
30-3413.1010.395.5112.6213.68
35-393.793.921.342.833.04
40-440.991.020.300.360.39
45 and over0.040.090.010.020.02
                  Total100.00100.00100.00100.00100.00

Ex-nuptial live births. The numbers of ex-nuptial births registered during each of the last 6 years are given in Table 5.22. The ex-nuptial birth rate relates ex-nuptial births to the number of women not married aged 15-49 years and is a more relevant measure than the previously published percentage of ex-nuptial births to total births. Ex-nuptial births include children born to women living in de facto relationships.

In 1984 the total number of ex-nuptial confinements resulting in live births was 12 419. Of these 12 282 cases were single births, 136 cases of twins, and 1 case of triplets. There was 1 case of twins where 1 child was stillborn. The total number of ex-nuptial live births was 12 556.

From Table 5.23, it can be seen that of the 12 419 mothers, 3618 or 29.13 percent were under 20 years of age.

Table 5.22. EX-NUPTIAL BIRTHS

YearNumberRate*

* Per 1000 mean number of women not married aged 15-49 years.

197910,94238.67
198010,85737.53
198111,44138.78
198211,38636.87
198311,97936.88
198412,55637.08

Table 5.23. EX-NUPTIAL BIRTHS 1984: AGE OF MOTHER

AgeNumber of Mothers
11-
12-
132
1436
15156
16419
17798
181,066
191,141
201,192
211,133
221,003
23902
24-293,183
30-341,003
35-39310
40-4472
45 and over3
          Total12 419

Reregistration of ex-nuptial children. An ex-nuptial child whose parents have later married may be reregistered from birth. Applications for registration must be made within 3 months after the date of the marriage.

The number of reregistrations in each of the latest 6 years were as follows: 1979, 1075; 1980, 1328; 1981, 1473; 1982, 1430; 1983, 1520; and 1984, 1397.

Under the former provisions of Section 10 of the Children and Young Persons' Act 1974 social workers were required to make enquiries into all ex-nuptial births. The purpose of these enquiries was to establish the circumstances of both mother and child and offer help and advice where necessary. This provision was repealed in the Children and Young Persons' Amendment Act 1982 which became effective from 1 January 1983. In cases where the mother is under the age of 18, the social workers continue, by administrative arrangement, to offer help and advice.

The last year for which statistics on the outcome of ex-nuptial birth enquiries conducted by social workers is available is, therefore, the 1982 calendar year.

Adoptions.Table 5.24, which relates to cases handled by the Department of Social Welfare, shows the number and status of children adopted over the last 5 years ended 31 March.

In 1984, 60 percent of the children adopted were ex-nuptial births. Of these children born out of wedlock, 59 percent were aged less than 1 year at the time of placement for adoption.

Table 5.24. ADOPTIONS

Status of Children Adopted19801981198219831984

* 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-nuptial1,2321,014909946869
Nuptial408336345356340
Not known*317297328242251
               Total1 9571 6471 5821 5441 460

Stillbirths. Although it is compulsory to effect a birth-registration entry for a stillborn child, no entry is made in the register of deaths. A stillborn child is defined as one “which has issued from its mother after the expiration of the twenty-eighth week of pregnancy and which was not alive at the time of such issue”. Stillbirths are not included either as births or as deaths in the various numbers and rates shown in this subsection nor in that relating to deaths.

Table 5.25. STILLBIRTHS

YearNumberRate*YearNumberRate*

* Per 1000 total births.

19793486.6119822975.91
19803496.8619832695.30
19813326.4919842615.03

5.5 Deaths

The death rate (by which is usually meant the crude death rate, i.e., the number of deaths per 1000 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 8.74 in 1935 and 50 years later, in 1985, it was 8.38. In between, it had reached a peak of 11.05 in 1942, during the Second World War, and a low point of 7.79 in 1984. In contrast, the birth rate (17.38 in 1935 and 15.80 in 1985) had been as high as 27.64 in 1947 and is now below even the level of the 1930s depression years. Depressions, wars, peace, prosperity, changing social attitudes, 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 ageing population will tend to have a high death rate, while a young one (provided that infant mortaliy is not abnormally high) will have a low one.

Table 5.28 gives a time series for rates of death per 1000 of mean population by age groups. Health measures in New Zealand have achieved an immense saving of young life and a prolongation of life, especially among elderly women.

Table 5.26. DEATHS AND NATURAL INCREASE OF POPULATION

YearTotal PopulationRates per 1000 Mean Population
BirthsDeathsNatural IncreaseCrude Death RateNatural Increase
198050,54226,67623,8668.487.59
198150,79425,15025,6447.978.12
198249,93825,53224,4068.027.67
198350,47425,99124,4838.067.59
198451,63625,37826,2587.798.06
1985P51,79827,48024,3188.387.42

Table 5.27. AGES AT DEATH REGISTERED IN 1984

Age, in YearsMalesFemalesTotal

* Excludes adjustments by the National Health Statistics Centre as a result of analysis and collation of registration forms and death certificates.

Under 1*352245597
1-48436120
5-9462874
10-14523284
15-1920272274
20-2423390323
25-2916174235
30-3418494278
35-3918399282
40-44247157404
45-49324201525
50-54557351908
55-599415211,462
60-641,3267622,088
65-691,6371,0602,697
70-742,1671,4943,661
75-792,1341,8193,953
80-841,6111,7943,405
85-898791,4852,364
90-943378601,197
95-99101292393
100 and over163854
       Total13 77411 60425 378

Table 5.28. DEATH RATES

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

* Per 1000 live births in this case.

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

(Rates per 1000 of mean population in each age group)
Males
190178.606.811.893.523.976.1611.9423.1250.59141.67
192153.104.781.852.443.565.559.6119.9646.17128.60
194143.654.391.362.532.933.959.2021.1347.44140.27
196125.861.340.491.281.472.687.3919.6547.33126.31
198113.010.950.351.531.352.266.5717.3043.38114.08
198313.640.620.351.581.282.015.8617.0342.21116.34
198413.290.810.341.421.372.055.7216.1641.05111.43
Females
1901†63.875.501.643.584.726.7010.6219.4443.32127.98
192142.314.491.312.343.384.468.0014.8836.81120.23
194137.753.841.201.942.443.506.9015.0438.60118.92
196119.501.160.350.530.871.954.5911.2229.89104.74
198110.220.640.230.670.641.513.949.1923.7384.67
198311.380.480.240.630.661.443.799.1923.9084.51
19849.740.370.220550.661.233.708.9322.6779.76
Both Sexes
190171.406.171.773.554.336.4011.3721.6347.87135.71
192147.824.641.582.393.475.108.8517.5941.90124.84
194139.814.121.282.222.673.728.0218.1643.04129.15
196122.761.250.420.911.182.316.0015.4137.67114.01
198111.650.800.291.110.991.895.2913.1432.6795.40
198312.540.550.301.110.971.724.8513.0532.2096.12
198411.360.600.281.001.011.644.7312.5030.9691.36

Table 5.29. AVERAGE* AGE AT DEATH

YearMalesFemalesYearMalesFemales

* Arithmetic mean.

 Age (years) Age (years)
190141.6437.68198065.6971.01
192148.4546.97198165.0271.26
194158.6559.60198265.4671.42
196163.8067.32198365.6671.69
197164.7570.04198465.6872.05

Registration of death. 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 1974. 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.

Expectation of life. The life table is a statistical device for depicting the pattern of mortality of a given population group over a particular reference period. Life tables for the total New Zealand population have been constructed at regular intervals since the calendar period 1950-52. The most recent series

prepared by the Department of Statistics are based on mean populations together with mortality statistics for the calendar years 1980-82. The department has also derived annual abridged life tables for the calendar years 1981 to 1984.

Details concerning life table methodology and construction and trends in New Zealand life expectancies can be found in New Zealand Life Tables 1980-82, obtainable from Government bookshops.

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 for the given reference period.

The trend since 1950-52 in the life expectancy of New Zealand's population has varied somewhat according to age and sex. Whereas females have experienced steady improvements, these being considerable for the younger ages and less significant for the oldest ages, males showed little improvement between 1950-52 and 1970-72. Between 1975-77 and 1980-82 there have been sharp increases in life expectancy for both males and females at all ages. In 1980-82 the life expectancy at birth was 70.4 years for males and 76.4 years for females, that is women are expected to outlive men by 6 years on average.

In 1982, at least 14 countries (including Australia, Canada, Japan, Netherlands and Sweden, listed in Table 5.31) had a higher male life expectancy than New Zealand and at least 16 countries had a higher female life expectancy. These rankings compare poorly with the favourable position New Zealand enjoyed at the international level in the first half of this century and suggest that the New Zealand experience in mortality reductions has been less successful than that of its counterparts.

Table 5.30. LIFE EXPECTANCY

Life TableLife Expectancy (Years)
Males Aged ExactlyFemales Aged Exactly
0206002060
1950-5267.1950.7516.1071.2954.1818.44
1955-5768.2051.2916.1173.0055.4019.07
1960-6268.4451.1716.0073.7555.8719.27
1965-6768.1950.6215.7474.3056.0919.58
1970-7268.5550.7715.7474.6056.3419.78
1975-7769.0151.1716.0975.4557.0120.42
1980-8270.3652.0916.6276.4357.8121.03

Table 5.31. LIFE EXPECTANCY COMPARISON WITH OTHER COUNTRIES

CountryPeriodLife Expectancy at Birth (Years)
MalesFemales

* Abridged life tables (total population).

Japan198274.279.7
Sweden198273.479.4
Netherlands198272.779.4
Canada1980-198271.978.9
Australia198372.178.1
New Zealand198471.2*77.7*
England and Wales1980-198271.177.7
Northern Ireland1979-198169.575.1
German Democratic Republic198269.175.1
Singapore198068.774.0

5.6 Population projections

As an indication of the likely future population in New Zealand, a series of the 1982-base projections is presented in the following graph to show projected changes in total population and age distribution, together with the historical populations for comparison. The projection variant adopted here assumes; medium fertility and low migration in the short term, with a net gain of 5000 annually in the long term.

According to these projections, the total population of New Zealand is expected to increase from 3.2 million in 1982 to nearly 4 million by 2016 at an average annual growth rate of 0.6 percent. Natural increase constitutes the majority of the growth, although its effect becomes smaller in the later years. Births will increase in the short term from 50 000 in 1982 to 54 000 by 1993 before declining gradually to 46 000 by 2016, while deaths will increase steadily from 25 100 in 1982 to 42 000 by 2016.

The population age distribution is expected to undergo significant changes in the future. In summary, there will be progressively fewer young persons, but more people in total, in the main working and retiring ages as illustrated by the shaded areas in the diagram. Over the period 1982-2016, the population in the 0-14 years age group will decrease from 836 000 (26.2% of total population) to 691 000 (17.5%); the main working population aged 15-59 years will increase from 1 903 000 (59.6%) to 2 470 000 (62.4%); and the remaining population aged 60 years and over will increase from 452 000 (14.2%) to 798 000 (20.1%). The population as a whole will become older. By 2016 half of the population will be over the age of 40 years compared to the median of 28.5 years in 1982.

These projections are not predictions but measures based on specified assumptions about future fertility, mortality, and migration. Because of future uncertainty surrounding these variables, projections should be treated only as an approximate guideline to future population change.

Further information on national population projects by age and sex, assumptions and methodology can by found in “New Zealand Population Projects 1983-2016 (1982-Base)”. Also, subnational population projections for the North and South Islands, Local Government Regions, Main Urban Areas and Local Authority Areas can be found in “New Zealand Subnational Population Projections 1986-2006 (1981-Base)”.

Further information

Cancer Data—National Health Statics Centre, Department of Health (annual).

Census of Population and Dwellings 1981—Department of Statistics.

Regional Statistics Series.

Bulletin 1-10 (Each bulletin gives final population, dwelling, and household statistics on a major area of New Zealand).

Vol. 1—Location and Increase of Population.

Pt. A—Population Size and Distribution

Pt. B—Population Density.

Pt. C—Usually Resident Population.

Vol. 2—Ages, Marital Status, and Fertility.

Vol. 3—Religious Professions.

Vol. 4—Labour Force.

Vol. 5—Incomes.

Vol. 6—Education and Training.

Vol. 7—Birthplaces and Ethnic Origin.

Vol. 8AMaori Population and Dwellings.

8BPacific Island Polynesian Population.

Vol. 9—Dwellings.

Vol. 10—Households, and Families.

Vol. 11—Internal Migration.

Demographic Bulletin—Department of Statistics.

1983 Electorate Profiles.

Fetal and Infant Deaths—National Health Statistics Centre, Department of Health (annual):

Hospital and Selected Morbidity Data—National Health Statistics Centre, Department of Health (annual).

Justice Statistics 1978: Divorce and Domestic Proceedings (Bulletin No. 1, 1979)— Department of Statistics.

Life Tables 1975-77— Department of Statistics (1979)

Report of the Department of Maori Affairs (Parl. paper E. 13).

Maps of Statistical Boundaries—Department of Statistics.

Miscellaneous Bulletin Series—Department of Statistics.

No. 1—New Zealand Males and Females—A Statistical Comparison.

No. 7—New Zealand Maori and Non-Maori Populations—Time Series.

No. 10—Family Statistics in New Zealand 1978.

No. 12—New Zealand Children 1979.

No. 20—New Zealand Males and Females: A Statistical Comparison 1945-78.

Monthly Abstract of Statistics—Department of Statistics.

New Zealand Population Projections 1983-2016—Department of Statistics.

Occasional Paper Series—Department of Statistics.

No. 4—New Zealand Rural Profile.

No. 5—An Investigation of Official Ethnic Statistics.

Population and Migration—Department of Statistics (annual).

Pt A—Population.

Pt B—External Migration.

Profile of Women—Department of Statistics (1985).

Social Trends in New Zealand—Department of Statistics (1977).

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

Tu Tangata—Department of Maori Affairs (two-monthly).

Vital Statistics—Department of Statistics (annual).

Chapter 6. 6 Social framework

6.1 Households and dwellings

Composition of households

Statistics from the 1981 Census of Population and Dwellings on the family composition of New Zealand households, compared to the 1976 Census, show fewer children per family; an increasing percentage of childless couples; a decline in two-parent family numbers; and a sharp rise in families with one parent. Overall the proportion of households made up of one or two persons only, has increased to form 48 percent of all households, a rise of 76 325 (19 percent) since 1976. There was a total of 1 003 113 private households living in permanent dwellings at the Census in 1981. Table 6.1 analyses the type of household by the number of occupants. A complete one-family-only household consists of a husband and wife with or without unmarried children of any age who are living at home.

Figures in census tables have been rounded using simple random rounding to base three. Individual figures therefore will not necessarily sum to give the stated totals.

Table 6.1. HOUSEHOLD COMPOSITION 1981

Type of HouseholdTotal HouseholdsNumber of Members Per Household
1234567 or More

* Parent absent permanently (3660 households) or temporarily (2097 households).

Source: Census of Population and Dwellings.

One-family-only—Number of Households
One-family-only (complete)555,561-207,15096,339136,98976,62926,96711,484
One-family-only (incomplete)—
    Family with one parent absent (permanently)59,451-29,91017,8057,5812,796894462
    Family with one parent absent (temporarily)11,154-2,9584,4852,55682523490
    Family with children absent29,499-6,6819,1987,4343,7951419'972
    Family with children and one parent* absent5,757-2,673177980432410875
            Total, one-family-only661 422-249 372129,606155 36484 36929 62213 083
Other family—
    One family with other (non-family) persons78,534--23,60718 735.16,70410,4918,994
    Two or more families (with or without other persons)16,986---3,4323,5043,5046,540
            Total, other family95 514--23 60722 17020 20813 99815 534
Non-family—
    Two or more persons61,188-43,63511,4274,1821,371399174
    One person184,992184,992------
            Total, non-family246 180184 99243 63511 4274 1821 371399174
            Total households1003 113184 992293 007164 640181 707105 94544 01928 791

Table 6.2. ONE COMPLETE FAMILY ONLY HOUSEHOLDS BY EMPLOYMENT STATUS OF HEAD OF HOUSEHOLD 1981

Employment Status of HeadTotal HouseholdsHusband and Wife with
Husband and Wife Only1 Child2 Children3 Children4 Children5 or More Children

* Includes heads of households working part-time (1 to 19 hours weekly).

† Child/short-term visitors.

Source: Census of Population and Dwellings.

In full-time labour force—  Number of Households  
   Self-employed—has employees40,9268,5657,35612,4118,4813,0181,095
   Self-employed—no employees48,08712,2888,44214,1188,9073,3061,029
   Salary or wage earner357,954101,53867,563104,36156,54119,4348,514
   Unemployed, seeking work6,3151,7311,4101,455873465378
   Relative assisting—unpaid5583271057227159
   Not specified (working 20 hrs or more)1,1254022372341446648
            Total454 962124 85485 110132 65174 97326 30411 073
Not in full-time labour force*       
   Retired90,25277,7309,2822,331621174117
   Student97862114413848246
   Household duties4,5541,97486194247719899
   Other4,6051,845918891495264192
            Total100 39282 17011 2024 3021 641660411
Not defined20412924331563
            Grand total555 561207 15096 339136 98976 62926 96711 484

Table 6.3. ONE COMPLETE FAMILY ONLY HOUSEHOLDS BY AGE OF HEAD OF HOUSEHOLD 1981

Age Group of Head (Years)Husband and Wife OnlyHusband and Wife withTotal Households
1 Child2 Children3 Children4 Children5 or More Children
Number of Households
Source: Census of Population and Dwellings.
Under 201,21555210527931,908
20-2417,8717,6174,1708461444230,690
25-4441,35839,88598,34058,26619,8607,566265,278
45-6477,59241,21432,88017,1156,8583,819179,478
65 and over69,1207,0681,491372995478,210
                 Total207 15096 339136 98976 62926 96711 484555 561
Percentage of Age Group
Under 2063.728.95.51.40.50.2100.0
20-2458.224.813.62.80.50.1100.0
25-4415.615.037.122.07.52.9100.0
45-6443.223.018.39.53.82.1100.0
65 and over88.49.01.90.50.10.1100.0
All ages37.317.324.713.84.92.1100.0

Table 6.4. PEOPLE LIVING ALONE 1981

Age Group (in Years)Marital Status
Never MarriedMarriedSeparated*DivorcedWidowedTotal

* Includes persons who are still married but permanently separated.

† Includes children, short-term visitors, and these of unspecified marital status.

Source: Census of Population and Dwellings.

 Males Living Alone
Under 201,56693--1,614
20-245,81432121324126,519
25-4412,1802,3104,4282,47812321,951
45-648,4122,4933,8164,1163,12622,182
65 and over3,9122,0791,2091,64111,35520,301
                 Total31 8847 2219 6698 25914 61072 567
 Females Living Alone
Under 201,368279-61,473
20-243,70247124948124,605
25-446,8941,0891,7341,47330311,661
45-645,9012,2622,7604,48514,52930,054
65 and over7,5452,0161,1312,52951,28264,635
                 Total25 4135 8655 8838 53866 132112 425

Group-living quarters.Table 6.5 shows the number of inmates and total occupants of various types of group-living quarters at the time of the 1981 Census of Population and Dwellings. In comparing the numbers of inmates with the total number of occupants (especially in the case of prisons and penal institutions) it should be borne in mind that only those staff who actually live in the group-living quarters are included in the table. Those occupying separate residences outside the group-living quarters will have been enumerated in their own homes, even though they may have been on duty in the boarding school, hospital, prison, or other group-living quarters on the night of the Census.

Table 6.5. OCCUPANTS OF GROUP LIVING QUARTERS 1981

Type of Group-living QuartersNumberNumber of Group-living Quarters By Number of InmatesTotal InmatesTotal Occupants Including Staff
Below 2020-99100 and Over

Source: Census of Population and Dwellings.

Hotels, motels, hostels, boardinghouses, and motor camps3,1622,4696335451,58556,151
Educational institutions3871561597522,65023,433
Welfare institutions (children's homes, etc.)7805671981213,74315,522
Medical institutions (hospitals, etc.)4562191716327,30327,960
Religious institutions2972702432,6433,186
Armed forces (including naval base and naval vessels)843930125,4606,747
Works and construction camps and police camps, etc.4382701501810,70411,199
Prisons and penal institutions512412122,8922,913
Seasonal workers' quarters195198--9961,245
Vessels (excluding naval vessels)1381359-4983,258
Other institutions39933054155,9466,660
                 Total6 3934 6711 452264144 414158 280

Dwellings

Between the 1976 and 1981 Censuses of Population and Dwellings the total number of dwellings occupied on the night of the census increased from 933 260 in 1976 to 1 011 882 in 1981, a rise of 78 622, or 8.4 percent. This rate of increase was considerably in excess of that for population. In addition, unoccupied dwellings increased from 84 606 to 97 111.

In 1981 the average number of occupants per permanent private dwelling was 3.00, compared with 3.22, 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.

Table 6.6. TYPES OF DWELLINGS

Type of DwellingNumber of Dwellings1981 Number of Occupants
19761981AggregateAverage

* This was included as a separate category at the 1981 Census and will include “Flat (in house)” at the 1976 Census. Also includes house/flat with shared cooking.

† Flats attached to shops, etc., were not classified separately for 1981 and will therefore be included in the figure shown for houses with shops.

Source: Census of Population and Dwellings.

Occupied dwellings—
    Permanent private dwellings—
        Detached house742,768792,2852 578 7403.25
        Row, cluster, terrace, or town houses linked together34 945*23,94652,1312.18
        House with other private dwelling14,37074 724*175,6502.35
        House and shop/business premises4,6737 83323,2292.97
                 Total houses796 756898 7882 829 7503.15
        Flat (in single or multi-storey block)98,736100,536175,0711.74
        Flat (in house)19,234   
        Fiat and shop/business premises3,605......
                 Total flats121 575100 536175 0711.74
        Bach, crib, hut4,9263,7897,2511.91
                 Total permanent private dwellings923 2571 003 1103 012 0723.00
    Temporary private dwellings—
        Mobile residence (caravan, etc.)2,8691,8784,0952.18
        Other (tent, shed, etc.)3585011,2872.57
                 Total temporary private dwellings3 2272 3765 3822.27
    Non-private dwellings—
        Hotel, motel, guesthouse2,4162,30741,43017.96
        Boarding/rooming house7784685,09410.88
        Private or public hospital45445627,96061.32
        Education institution35038723,43360.55
        Other2,7782,77560,36321.75
                 Total non-private dwellings6 7766 393158 28024.76
                 Total occupied dwellings933 2601 011 8823 175 7373.14
Unoccupied dwellings—
    Occupants temporarily away23,94530,224......
    Empty habitable dwellings (to let, for sale, etc.)27,51828,695......
    Holiday residence33,14338,192......
                 Total unoccupied dwellings84 60697 111......
Dwellings in course of erection14,2846,836......

Table 6.7. TENURE OF DWELLINGS

Tenure19761981
Permanent Private DwellingsPercent of Total SpecifiedPermanent Private DwellingsPercent of Total Specified

Source: Census of Population and Dwellings.

Owned without mortgage253,56727.6287,34328.8
Owned with mortgage387,07842.1423,45942.4
Rented or leased248,35627.0253,38625.4
Free with job22,6782.521,2132.1
Free not with job8,6490.912,3211.2
Not specified2,929...5,388...
                 Total923 257100.01 003 110100.0

Table 6.8. HOUSEHOLD AMENITIES 1984-1985

Amenity In DwellingPercent of All Surveyed Households

Source: Household Expenditure and Income Survey.

Electric range or wall oven94.1
Gas, coal or oil fired range10.1
Microwave oven11.6
Telephone94.2
Clothes-washing machine96.0
Clothes dryer52.1
Separate refrigerator36.4
Refrigerator/freezer combination68.0
Separate deep-freeze unit58.9
Dish-washing machine13.9
Colour television (owned)72.9
Monochrome television (owned)22.8
Colour television (rented)17.7
No owned, hired or rented television4.2
Video recorder (owned)11.9
Radiogram or stereo equipment75.0
Electric blanket or electric mattress80.0
Portable electric heater89.3
Fixed electric heater32.0
Portable gas heater2.2
Fixed gas heater6.4
Open fire42.7
Slow-combustion fire27.8
Portable kerosene heater9.5
Wet-back fire of any kind20.8
Central heating of any kind6.5
Solar water heating1.0

Table 6.9. MEANS OF COOKING IN PERMANENT PRIVATE DWELLINGS

Means of Cooking19761981
HouseholdsPercentHouseholdsPercent

Source: Census of Population and Dwellings.

Electricity829,94089.9925,40492.3
Gas, including rock gas61,7376.756,7605.7
Wood, coke, coal23,5622.616,7731.7
Other1,2400.1285..
No means162..186..
Not specified6,6160.73,7020.4
                 Total923 257100.01 003 110100.0

Table 6.10. MEANS OF HEATING IN PERMANENT PRIVATE DWELLINGS

Means of Heating19761981
HouseholdsPercentHouseholdsPercent

Source: Census of Population and Dwellings.

Electricity only288,47631.2319,45531.8
Electricity and coal, coke, or wood334,94636.3314,76931.4
Electricity and gas17,9901.919,8692.0
Electricity and oil and/or kerosene46,7665.131,0563.1
Electricity and other combinations61,4286.738,7513.9
Gas only, including rock gas14,5201.627,7262.8
Oil or kerosene only24,8872.719,6292.0
Wood, coke, coal only100,16610.8174,23717.4
Other21,4732.326,3852.6
Not specified and no means12,6051.431,2363.1
                 Total923 257100.01 003 113100.0

Table 6.11. WATER HEATING IN PERMANENT PRIVATE DWELLINGS

Hot Water Service*19761981
HouseholdsPercentHouseholdsPercent

* Principal means.

Source: Census of Population and Dwellings.

Electric848,94492.0919,39891.7
Gas25,8622.834,0233.4
Wood, coke, or coal range24,9622.731,9053.2
Wet-back8,1870.9......
Other7,4010.811,7751.2
No hot water service1,7200.21,3290.1
Not specified6,1810.74,6860.5
                 Total923 257100.01 003 113100.0

Household transport. New questions asked at the 1981 Census revealed that 79.9 percent of households (801 030) had 1 or more private cars, and 13.3 percent (133 488) had the use of a business car.

Households with 1 or more motor vehicles available for use by household members (that is vehicles owned privately or by a company or business firm) numbered 832 857, or 83.0 percent of households compared with 79.1 percent of households at the 1971 Census when the question was last asked.

Boats were present in 12.5 percent of households in 1981.

6.2 Household income and expenditure

Household Expenditure and Income Survey The New Zealand Household Expenditure and Income Survey is conducted continuously and the results are presented on a March year basis. The survey's objectives are to provide statistics on the expenditure patterns and income levels of private households in New Zealand and to collect information on the social and demographic characteristics of such households.

A sample of approximately 4500 private households is randomly selected for the survey every third year, to provide data for the revision of the Consumers Price Index, and a smaller sample of approximately 3500 private households is selected in other years. In the 1984-85 year, 3567 private households (comprising 10 264 persons) participated in the survey, each household containing an average of 2.88 persons.

Questionnaires administered to each household include; household questionnaires, expenditure questionnaires and income questionnaires.

In all cases, information as reported or recorded by household members is processed without adjustment for under-reporting of income and expenditure. Overseas experience suggests that expenditure on tobacco and alcohol, on meals away from home, and on food items such as ice cream and confectionery, tends to be under-reported in household surveys. Other data sources indicate that a similar situation occurs in the New Zealand survey.

In Tables 6.12, 6.14 and 6.15 the aggregate survey income/expenditure has been averaged over all households in the survey, rather than over only those households which reported income/expenditure. This averaging procedure has the effect of reducing some average income/expenditure statistics to a level below that which would normally be expected (e.g., expenditure on rent).

Table 6.12. INCOME-DISTRIBUTION OF HOUSEHOLDS 1984-85

Annual IncomeApproximate Equivalent Weekly IncomeNumber of HouseholdsAverage Weekly Income Per Household

* Including nil and loss.

Source: Household Expenditure and Income Survey.

$$               $
Under 7,000*Under 13434479.27
7,000- 9,999134 and under 192284163.48
10,000-12,999192 and under 249413219.64
13,000-15,999249 and under 307296277.81
16,000-19,999307 and under 384369341.36
20,000-23,999384 and under 460394420.97
24,000-27,999460 and under 537341497.55
28,000-31,999537 and under 614289575.13
32,000-39,999614 and under 767400682.42
40,000 or over767 or over4371,070.05
  3,567452.74

Income earners in each household. An analysis of income earners in each household was made from the information collected at the Census of Population in 1981. For this analysis an income earner was defined as one who received $1000 or more a year, excluding social welfare benefits and war pensions.

Table 6.13. INCOME EARNERS IN EACH HOUSEHOLD: 1981 CENSUS OF POPULATION

Number of Household MembersNumber of Private Households WithTotal Households*
No Income Earners1 Income Earner2 Income Earners3 Income Earners4 Income Earners5 or More Income Earners

* Includes a number of households where income of members was not specified.

161,494106,692----184,992
256,02889,010137,298---293,004
316,47958,93855,08630,141--164,640
410,83670,51566,77120,28310,464-181,707
55,47839,80437,79412,8016,3632,181105,945
62,61915,30014,3616,4173,1951,50344,019
71,1465,0614,7282,6971,39281916,119
85461,9591,8631,1406454446,711
9 or more5821,4791,5001,0746456035,970
                Total155 208388 758319 40174 55622 7075 5501 003 113

Table 6.14. EXPENDITURE STATISTICS FOR SELECTED FAMILY TYPES 1984-85

Expenditure CroupCoupleCouple With 1 ChildCouple With 2 ChildrenCouple With 3 or More ChildrenSolo Parent With Children)Non-family HouseholdsExtended Family HouseholdsAll Households

Source: Household Expenditure and Income Survey.

Average Weekly Expenditure ($)
Food51.8772.8281.5492.6256.5138.4697.0363.04
Housing68.3068.19107.5792.2055.5960.1169.9374.70
Household operation52.9162.5761.9363.0741.6935.4567.3652.22
Apparel17.4226.9430.2732.5220.8612.6833.7622.20
Transportation76.0492.5980.2786.0548.9550.2799.5072.52
Other goods33.7253.9055.3460.5935.8128.7665.0043.03
Other services36.6247.8756.5858.2427.1426.0653.1441.19
          Total expenditure336.87424.89473.50485.28286.56251.78485.72368.90
          Total households8843725694482598711643 567

Table 6.15. AVERAGE WEEKLY HOUSEHOLD EXPENDITURE ON EXPENDITURE SUBGROUPS 1984-85

Expenditure Group and SubgroupAverage Weekly Household Expenditure*Percentage of Total Expenditure

* Averages have been rounded to the nearest 5 cents.

Source: Household Expenditure and Income Survey.

Food—$%
      Fruit5.201.4
      Vegetables4.851.3
      Meat10.102.7
      Poultry1.850.5
      Fish1.400.4
      Farm products, fats, oils8.202.2
      Cereals, cereal products8.602.3
      Sweet products, spreads, beverages7.752.1
      Other foodstuffs3.300.9
      Food consumed in eating places; take-away foods11.753.2
                  Total, Food63.0517.1
Housing—  
      Rent11.853.2
      Net capital outlay and related expenses5.001.4
      Mortgage payments21.505.8
      Payments to local authorities7.001.9
      Property insurance2.750.7
      Property maintenance goods10.903.0
      Property maintenance services15.704.3
      Housing expenses not elsewhere classified0.050.0
                  Total, Housing74.7020.3
Household Operation—
      Domestic fuel and power8.452.3
      Home appliances14.103.8
      Household equipment and utensils2.700.7
      Furniture6.551.8
      Furnishings1.300.4
      Floor coverings2.550.7
      Household textiles3.200.9
      Household supplies3.751.0
      Household services9.602.6
                  Total, Household Operation52.2014.2
Apparel—
      Mens clothing4.451.2
      Womens clothing7.902.1
      Childrens clothing2.600.7
      Clothing not otherwise classifiable0.700.2
      Clothing supplies and services2.200.6
      Mens footwear1.050.3
      Womens footwear1.850.5
      Childrens footwear0.850.2
      Footwear not otherwise classifiable0.450.1
      Footwear supplies and services0.150.0
                  Total, Apparel22.206.0
Transportation—
      Public transport in N.Z.3.701.0
      Overseas travel12.303.3
      Purchase of road vehicles24.006.5
      Vehicle running and maintenance expenses30.458.2
      Private transport costs n.e.c.2.050.6
                  Total, Transportation72.5019.7
Other Goods—  
      Tobacco products4.751.3
      Alcohol11.053.0
      Medical goods1.150.3
      Toiletries and cosmetics2.900.8
      Personal goods3.050.8
      Pets, racehorses and livestock4.001.1
      Publications, stationery and office equipment for home use5.951.6
      Leisure and recreational goods6.801.8
      Recreational vehicles2.350.6
      Goods n.e.c.1.100.3
                  Total, Other Goods43.0511.7
Other Services—
      Health services4.401.2
      Personal services2.450.7
      Educational and tuitional services2.250.6
      Accommodation services1.900.5
      Legal and financial services1.300.4
      Vocational services0.800.2
      Leisure services5.051.4
      Services n.e.c.0.950.3
      Expenditure n.e.c.9.402.6
      Contributions to savings12.603.4
                  Total, Other Services41.2011.2
                  Total Net Expenditure368.90100.0
         Number of households3,567 

International indicators of standards of living

Relative standards of living cannot be compared by taking per-head incomes or expenditure alone. Environmental and other factors are being increasingly recognised as components of the quality of life, a much less easily measured concept. In assessing standards of living, consideration is now given to the development of social indicators parallel with purely economic terms of measurement. These include health and personal safety; equality of educational opportunity; employment and quality of working life; leisure satisfaction, social welfare provisions; social opportunity and quality; social, cultural, and communication capabilities; housing and community facilities; and the physical environment.

Methods of measurement of these factors are being recommended on an international basis. In these wider terms of reference New Zealand's position is appreciably improved.

Some comparative indicators related to standards of living are set out in Table 6.16.

Table 6.16. INDICATORS OF STANDARDS OF LIVING

ItemNew ZealandUnited StatesCanadaAustraliaUnited KingdomSwedenJapan

* 1981

† 1982

‡ 1978

§ EEC countries as a whole

|| 1979.

Sources: United Nations Statistical Yearbook (1982); UNESCO Statistical Yearbook (1985); The World's Telephones (AT & T) (1982); World Statistics in Brief (UN) (1985).

Motor vehicles in use—
    Passenger vehicles per 000 of population (1983)442537*419*482282*353216
    Commercial vehicles 000 (1981)29934,9953,19217081,89220716 147
Number per 000 of population—
    Radios (1983)8902,0437611,301993858713
    Television sets (1983)288790463423479390556
    Telephones (1981)588787647506507828510
Consumption per head—
    Coffee (1982) kg1.964.774.362.632.4611.731.85
    Tea (1980-82) gm2,0673667791,4953,189342955
    Sugar(1982) kg50.936.238.251.638.9§43.826.1
    Steel (1982) kg306263371367254423538
Industrial consumption—
    Wool (1982) thousand metric tonnes19.952.94.128.685.51.6111.7
    Cotton (1982-83) thousand metric tonnes 1 198.255.117.245.16.1713.0
    Tin (1982) metric tonnes25038,7003,4002,7006,9799428,707
Consumption per 000 of population—
    Newsprint (1982) kg51,80544,05142,19340,82923,90435,08623,961
Public education expenditure as a percentage of GNP (1983)5.26.8*8.05.9*5.58.55.7
Peculation per doctor (No.) (1980)638549550 ||559626||454761*

6.3 Marriages

Marriage may be solemnised in New Zealand either by a celebrant included in the list of marriage celebrants 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 a marriage celebrant can be solemnised. Marriage by a marriage celebrant may be solemnised at any time between 6 o'clock in the morning and 10 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.

The Marriage Amendment Act 1976 extended the right of solemnising marriages to nominated members of approved organisations of a non-religious character. Justices of the Peace may also be nominated to act as marriage celebrants.

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 District Court judge 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 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.

Table 6.17. MARRIAGE RATES

YearNumber of MarriagesMarriage Rate
Crude*General

* Per 1000 mean population.

†Per 1000 mean not-married population aged 16 years and over.

197922,3267.1228.71
198022,9817.3128.84
198123,6607.4928.93
198225,5378.0230.08
198324,6787.6527.79
198425,2727.7627.47

Table 6.18. MARITAL STATUS 1981

Age Group (Years)Never MarriedMarriedSeparated*WidowedDivorcedTotalDe Facto Relationship

* Includes persons who arc still married but permanently separated.

† Including persons not specifying status.

‡ Persons in this column are also included in one of the preceding formal marital status columns.

Source: Census of Population and Dwellings.

Males
15-19153,70888536618156,8162,517
20-2498,70629,0101,67166240137,42411,514
25-3450,445161,56811,5893305,391237,29716,404
35-4414,265146,6529,5078016,699180,9607,803
45-5411,331126,1416,6872,4936,021154,1583,873
55-649,462108,6903,8705,4904,656132,8671455
65-745,91070,6051,8099,2852,41890,339369
75 and over2,64025,14056711,33160940,48584
     Total, 1981346 470668 68835 74529 79626 0551 130 34044 016
     Total, 1976313 875700 24417 02427 35515 0051 075 175...
Females
15-19139,8335,028252339149,8176,765
20-2465,01054,1564,320198696132,21613,377
25-3428,710178,90215,7531,3178,124238,72214,079
35-448,571145,64110,7133,2348,946179,4426,276
45-546,501118,1526,1238,9136,705147,2822,403
55-647,69599,3213,36023,8805,199139,917786
65-748,31054,3331,52441,0553,036108,543201
75 and over7,24214,69136046,83398770,42551
     Total, 1981271 875670 22142 405125 46033 7081 166 36443 941
     Total, 1976240 781703 26421 842114 16420 1491 101 303...

Table 6.19. PERCENTAGE DISTRIBUTION ACCORDING TO MARITAL STATUS*

Marital Status19761981
MalesFemale*MalesFemales

* Population aged 15 years and over.

† Percentages are calculated only on cases specifying marital status.

‡ Legally separated only.

§ All permanent separations of married persons.

Source: Census of Population and Dwellings.

Never married29.221.931.323.8
Married65.263.960.458.6
Separated1.62.03.2§3.7§
Widowed2.510.42.711.0
Divorced1.41.82.42.9
                Total100.0100.0100.0100.0

Ages of persons married. Until recently, the proportion of minors among persons marrying had been increasing over a fairly long period of years but it is now declining slightly. In 1971 the age of majority was lowered from 21 to 20 years of age. In 1984, 1 bride in every 11 was under 20 years of age. Bridegrooms were usually older than their brides; only 1 in every 62 was under 20 years of age.

Of the persons married in 1984, 2775 or 5.49 percent were under 20 years of age; 20 648 or 40.85 percent were returned as 20-24 years; 12 534 or 24.80 percent as 25-29 years; 8724 or 17.26 percent as 30-39 years; and 5863 or 11.60 percent as 40 years of age and over.

Table 6.20. AGES OF PERSONS MARRIED 1984

Age of Bridegroom, in YearsAge of Bride, in YearsTotal Bridegrooms
Under 2020-2425-2930-3435-3940-4445 and Over
Under 2024815083---409
20-2416516,33685812631549,011
25-293733,8872,4014411042757,238
30-34648941,26275023457223,283
35-3921254510499394128271,833
40-44659170237318203801,073
45 and over357871623093961,4112,425
     Total brides2 36611 6375 2962 2181 3908161 54925 272

Table 6.21 gives the average age (arithmetic mean) at marriage, but these do not correspond with the modal or most popular age, if the age at which the most marriages are celebrated may be so termed. The modal age for brides in 1984 was 21 years. In the case of bridegrooms the most popular age has varied, and for recent years it has been 21 to 24; in 1984 it was 23 years.

Table 6.21. MEAN AGE OF PERSONS MARRIED

YearBridegroomsBrides
BachelorsDivorcedWidowersSpinstersDivorcedWidows
Age in Years
198025.2239.2357.8722.7135.8051.87
198125.4139.6858.1522.9835.8951.88
198225.6939.7058.7623.2336.0952.31
198326.0139.6958.6423.5936.1252.32
198426.1239.9558.8023.7936.0552.76

Dissolution of marriage

The Family Proceedings Act 1980, which replaced the Matrimonial Proceedings Act 1963, came into force on 1 October 1981. It lays down only one ground on which an order dissolving a marriage can be made—that is, that the marriage has broken down irreconcilably. The Act also makes provision for orders declaring a marriage void and for declarations of presumption of death. To establish that the marriage has broken down irreconcilably, the parties must be living apart, and have been doing so for the previous 2 years.

After 1 October 1981 applications for dissolution of marriage must be made to Family Courts.

Matrimonial Property Act 1976. This Act reforms the law of matrimonial property. It recognises the equal contribution of husband and wife to the marriage partnership and provides for a just division of the matrimonial property between the spouses when their marriage ends by separation or dissolution.

Domestic Protection Act 1982. This Act aims to mitigate the effects of domestic violence by providing for non-molestation orders, non-violence orders, and emergency occupation and tenancy orders.

Guardianship Amendment Act 1980. This Act requires custody applications to be heard in a Family Court and requires the judge to appoint a lawyer to represent children's interests. The concept is emphasised that the more suitable parent is to be given custody of a child or children irrespective of the sex of the parent or age of the children. An offence of wilfully hindering access to children is created by the Act and the court is given power to require medical, psychiatric, or psychological reports on children. The Act also gives to Family Courts a power to call witnesses.

Family Court Act 1980. This Act provides for the establishment of Family Courts. The courtrooms are less formal; the usual court procedures and ritual are simplified; and the judges do not wear wigs and gowns. In addition, the sittings are in private and are confidential.

Social Security Amendment Act 1980. This Act introduces a scheme known as the Liable Parent Contribution Scheme which aims to provide a fair and uniform method of deciding the contributions a liable parent must make to support his or her children if the other parent is receiving a Domestic Purposes Benefit.

Counselling and mediation provisions of the Family Proceedings Act have already affected the numbers of separation, maintenance and custody orders made by the courts. Maintenance orders, particularly for ex-nuptial children, have also been affected by the liable parent contribution legislation operative from 1 April 1981.

Table 6.22. DECREES ABSOLUTE AND DISSOLUTION ORDERS GRANTED

Ground*198219831984

* Irreconcilable breakdown is the only ground for dissolution.

Application filed9,8289,6449,381
Decrees absolute and dissolution orders granted—
      Adultery317429
      Desertion5341
      Separation by agreement1,3079619
      Separation by Court Order4524111
      Having lived apart for 4 years or more2783012
      Non-consummation1011
      Other and irreconcilable breakdown9,9789,5369,121
                  Total12 3959 7509,174

Table 6.23. DURATION OF MARRIAGE AT TIME OF DISSOLUTIONS GRANTED IN 1984*

Duration of Marriage (in Years)Age (in Years) at Marriage
Under 2020-2425-2930-3435-3940-4445 and Over (including Not Stated)Total

* Excludes 53 divorce proceedings carried over from previous legislation.

Husbands (All Petitions and Applications)
Under 55544018782432584916
5-92261,25148317490691012,394
10-143081,1753361006642712,098
15-19200914282843618291,563
20 and over1451,215549158581692,150
                  Total9344 99518375982931702949 121
Wives (All Petitions and Applications)
Under 522841811653322940916
5-98659822591256539592,394
10-14914843159892422472,098
15-1964174211228149171,563
20 and over7731,06621061218112,150
                  Total3 4214 0518563561561071749 121

Table 6.24. ORDERS MADE UNDER FAMILY PROCEEDINGS, GUARDIANSHIP AND DOMESTIC PROTECTION ACTS IN 1984

Nature of OrderOrders Made

* Custody in favour of mother 965, of father 188, of other party 28, joint and divided 147.

† Custody in favour of mother 545, of father 60, of other party 39, joint and divided 24.

Separation582
Maintenance (married parties)509
Custody (married parties)*1,328
Non-violence399
Non-molestation533
Occupancy484
Maintenance (non-married parties)282
Custody (non-married parties)668
Paternity789

Table 6.25. SEPARATION ORDERS 1984: AGES OF PARTIES

Age of Husband (in Years)Age of Wife (in Years)Total
16-1920-2425-2930-3435-3940 and OverNot Known
16-1941-----5
20-2443491---48
25-291425542--104
30-34-165050102-128
35-39-31034403393
40 and over1441253771152
Not known-622613552
                  Total101061301031118339582

Table 6.26. CUSTODY ORDERS 1984

Type of PartyNumber of Children InvolvedTotal
1234567
Married
    Numbers of orders4705172239120521,328
    Total children4701,03466936410030142,681
Non-married
    Numbers of orders5408631551-668
    Total children5401729320256-856

Table 6.27. APPEALS TO HIGH COURT AGAINST DECISIONS IN DOMESTIC PROCEEDINGS AND FAMILY COURTS

YearHeardAllowed
197923491
198016576
198119870
198211339
198311647
198410337

Marriage guidance

The aim of the National Marriage Guidance Council of New Zealand is to enhance people's ability to establish and maintain close personal relationships, particularly in the field of marriage and family life.

Education service—The council has trained 165 tutors in human relationships. These tutors help individuals and couples to identify their feelings, values and needs, and to practise new ways of behaving, either working in groups or through the use of public media. In 1985, tutors led 640 courses involving 12 500 people, including couples, people recently separated or widowed, school children and their parents, and various community or professional groups, from prisoners to police and plunket nurses.

Counselling services—During 1985, 8500 cases involving 31 000 people were handled by the council's counselling services. Interviews totalled 26 500, and cases included community referral and Family Court and Social Welfare benefit referral.

The National Marriage Guidance Council operates in over 50 centres within 25 local councils, with 260 volunteer counsellors and 270 supervisors. Local councils have an executive, and education and counselling committees to oversee their services, and a secretary to co-ordinate the daily activities. Large councils have a director. The national office based in Wellington provides a range of support services and co-ordinates all the training of volunteers.

6.4 Religious professions

In Table 6.28 the category “All other religious professions” includes also cases of facetious answers and those which were not specified in sufficient detail to allow precise classification. Figures under “Object to state” represent those persons availing themselves of the special statutory right of objecting to answer a question on this subject.

Table 6.28. RELIGIOUS PROFESSIONS

Religious Profession*Number of AdherentsPercentage
197119761981197119761981

* This is the only census question carrying a statutory right to object to providing the information sought.

† Associated Pentecostal Churches of New Zealand.

Source: Census of Population and Dwellings.

Anglican (Church of England)895,839915,202814,74031.329.225.7
Presbyterian583,701566,569523,22120.418.116.5
Roman Catholic (including Catholic undefined)449,974478,530456,85815.715.314.4
Methodist182,727173,526148,5126.45.54.7
Christian n.o.d.33,18752,478101,9011.21.73.2
Baptist47,35049,44250,0431.71.61.6
Latter Day Saints (Mormon)29,78536,13037,6861.01.21.2
Ratana30,15635,08235,7811.11.11.1
Brethren25,76824,41424,3240.90.80.8
Agnostic9,48114,13624,2010.30.50.8
Atheist9,29114,28321,5280.30.50.7
Salvation Army19,37122,01920,4900.70.70.6
Protestant n.o.d.37,47533,30916,9891.31.10.5
Jehovah's Witness10,31813,39213,7400.40,40.4
Assemblies of God3,5995,58112,5250.10.20.4
Seventh Day Adventist10,47711,95811,5200.40.40.4
Pentecostal1,8594,8466,4080.10.20.2
Church of Christ8,9308,0876,3720.30.30.2
Ringatu5,6356,2306,1170.20.20.2
Hindu3,8455,2036,0780.10.20.2
Lutheran5,9306,2975,6760.20.20.2
Indigenous Pentecostal128245,295....0.2
Apostolic2,3612,6934,5030.10.10.1
Congregational7,7046,6003,8250.30.20.1
Eastern Orthodox Catholic4,3194,1533,8130.20.10.1
Undenominational3,7094,2223,7200.10.10.1
Buddhist1,3702,3823,693..0.10.1
Union Church1,1543,0453,399..0.10.1
Hebrew Congregational3,8033,9213,3600.10.10.1
Spiritualist1,0151,7312,418..0.10.1
Samoan Congregational85662,310....0.1
Uncertain3531,0292,253....0.1
Islam7791,4152,004....0.1
Reformed Church of N.Z.1,6281,3581,9230.1..0.1
Christadelphian1,6671,6861,6980.10.10.1
Bahai3509811,452......
All other religious professions19,66436,96136,4140.71.21.1
No religion (so returned) and not specified161,018140,591275,8325.64.58.7
Object to state247,019438,511473,1158.614.014.9
                  Total2 862 6313 129 3833 175 737100.0100.0100.0

6.5 Ethnic origins and citizenship

Table 6.29. ETHNIC ORIGINS OF USUALLY RESIDENT NEW ZEALAND POPULATION

Ethnic Group*1976 Census1981 Census

* Half or more of given descent group.

† Covers persons who specified themselves as half or more New Zealand Maori, plus those who indicated they were persons of the Maori race of New Zealand, but did not specify the degree of Maori origin.

Source: Census of Population and Dwellings.

European2 672 9192 696 568
Maori269,954279,084
Other origins—
    Pacific Island Polynesian—
        Samoan27,74742,078
        Cook Island Maori18,54723,880
        Niuean5,6718,079
        Tongan3,8736,900
        Tokelauan1,7092,274
        Other3,4245,613
                  Subtotal, Pacific Island Polynesian60,97188,824
        Chinese14,23618,480
        Indian8,86111,244
        Fijian1,3241,833
        Syrian, Lebanese, and Arab740900
        Other ethnic groups5,5509,762
                  Subtotal, others30,71142,219
Not specified68,71036,609
                Total3 103 2653 143 307

Country of birth. Since 1945 the New Zealand-born population has remained in the range 84 to 86 percent of the total population including short-stay visitors to the country.

For 1976 and 1981, of the population usually resident in New Zealand who specified country of birth, the percentages born in New Zealand were 84.3 and 85.6 respectively.

Table 6.30. PERSONS BORN OVERSEAS USUALLY RESIDENT IN NEW ZEALAND

Years of Residence1976 Census1981 Census*
Number Born OverseasPercentage of Specified CasesNumber Born OverseasPercentage of Specified Cases

* Specified overseas birthplaces totalled 450 939. An additional 13 314 cases of not specified birthplaces are included in the analysis by duration.

† RN.Z. residents.

Source: Census of Population and Dwellings.

0-4133,51828.157,35413.3
5-959,05212.488,11920.4
10-1464,46713.651,83112.0
15-1948,69110.253,61912.4
20 and over169,79235.7180,56141.8
Not specified10,040...32,766...
                Total485 560100.0464 253100.0

Table 6.31. ORIGIN AND DESTINATION OF LONG-TERM AND PERMANENT MIGRANTS

Year Ended 31 MarchAustralia*United KingdomUnited StatesWestern Samoa*Cook Islands and Niue*CanadaOceaniaEuropeAsiaAll Other CountriesTotal

* Included in Oceania.

† Included in Europe.

‡ Includes unspecified.

Permanent and Long-term Migrants Arriving by Country of Last Residence
198214,12012,2902,1381,0388181,00219,96315,3703,7393,08045,292
198316,07810,5992,4071,0697311,04821,32213,6413,5823,85445,854
198415,7717,6172,1231,06255997221,0349,8823,9232,77140,705
198512,5376,6112,0111,51460284818,2228,4844,1562,52236,243
Permanent and Long-term Migrants Departing by Country of Next Residence
198234,9346,6882,0858644991,08139,9707,9032,8012,93456,774
198323,0966,3112,00768558367127,0107,6132,6092,76442,674
198414,0977,8121,84258453355017,6709,1172,3142,65434,147
198521,9649,2161,85965847660326,09810,5322,2203,01544,327

Immigration policy

New Zealand's immigration policy is designed to encourage the entry of people whose skills are in demand in New Zealand, while protecting domestic employment opportunities for New Zealand citizens and permanent residents. At the same time, considerable emphasis is placed on humanitarian considerations such as the reunification of families, and the provision of settlement opportunities for refugees.

Further information may be obtained from the nearest New Zealand overseas representative, from district offices of the Department of Labour, or by writing to the Secretary of Labour, Department of Labour, Private Bag, Wellington.

Migration on occupational grounds. Applications to migrate on occupational grounds are considered in the light of the current demand for particular skills. A 6-monthly survey of the labour market is conducted by the Department of Labour from which is compiled and published the Occupational Priority List (OPL) which details skills which may be freely recruited overseas, in addition employers may be authorised to recruit for particular skills or personnel not on the OPL by making a special case to the department.

In general, applicants for permanent entry on occupational grounds must be between the ages of 18 and 45 years, of sound mental and physical health and of good character, and, if married, have no more than 4 dependent children. Accommodation and employment are usually required to be prearranged.

An exception to the job guarantee requirement may be made in the case of suitable applicants who are qualified and experienced in a range of computer-related occupations. This applies to suitable applicants from selected countries, who are single or married couples without children. There is also provision for the entry of business people and entrepreneurs who can bring both skills and capital which the Government considers will benefit New Zealand, for example, by creating additional employment opportunities or by generating new exports.

Applications are occasionally received from persons who have distinguished themselves in the arts or sciences, or in public or cultural life overseas, and who wish to settle in New Zealand. Although they could make a major contribution to New Zealand life, most of them do not qualify in terms of normal occupational criteria. In the same way, applications are sometimes received from persons who, although outside normal criteria, have been actively involved in promoting or protecting New Zealand's interests overseas. The Minister of Immigration may approve such applications in appropriate cases.

Family reunification. The policy on family reunification provides for the entry of relatives who are spouses and/or dependent children of New Zealand citizens or permanent residents; parents of New Zealand citizens or permanent residents if they have no children living in their own country; brothers, sisters, and children of New Zealand citizens or permanent residents if they are single without dependants, and alone in their country of residence. Other cases where there are special circumstances such as a high degree of financial or emotional dependence on the New Zealand citizen or permanent resident may also be considered.

Western Samoa. Within the South Pacific region, immigrants from Western Samoa constitute by far the largest group entering New Zealand for permanent settlement, under a special quota arrangement instituted in 1962. Up to 1100 Western Samoan citizens may be accepted for permanent entry each year, over and above those who qualify under the family reunification provisions of the immigration policy. Applicants who seek entry under the quota are required to meet normal requirements in relation to age, family size, health, character, and accommodation, and to be in possession of a guarantee of employment in any occupation, prior to entry.

The Netherlands. Under the terms of a migration agreement between the Netherlands and New Zealand, an annual quota of immigrants from the Netherlands is accepted. Migrants accepted under this arrangement are required to meet normal criteria with respect to age, family size, health and character, and the Netherlands Emigration Service guarantees to place such migrants in employment and accommodation after arrival.

Refugees. The admission and resettlement of refugees who come within the mandate of the United Nations High Commissioner for Refugees (UNHCR) continues to be an important priority of the New Zealand Government. When selecting refugees emphasis is placed on the humanitarian circumstances of each case. The selection criteria may vary for different refugee situations but it is considered in the best interests of the refugees themselves that those selected can be expected to adapt quickly to New Zealand conditions. Account is also taken of any previous association with New Zealand, and of links with friends or relatives living in New Zealand.

Where refugees arrive in large groups (e.g., as in the Indo-Chinese Refugee Programme) the Government provides special assistance in the form of group orientation programmes for up to 6 weeks after arrival. During that period the refugees are accommodated in the Mangere Reception Centre and costs are met by various government departments including the Department of Social Welfare, which pays a special emergency benefit to meet living expenses until the breadwinner begins working. Medical and dental checks are provided by the Department of Health, and the Department of Education organises general orientation and familiarisation courses (covering aspects of daily living in New Zealand) and instruction in the English language. After completing the orientation programme the refugee settlers are moved to their final destinations where they are helped by their sponsors and, where possible, by other persons from their country of origin, to overcome their early resettlement problems in a local community.

Resettlement committees at each of the district offices of the Department of Labour assist refugee sponsors at the local level with employment and any other problems that the refugees may face, as well as following up each local group's progress.

Current policy establishes quotas of refugees who may be accepted for entry, and the quotas are kept under review. Quotas approved in the continuing programme of acceptance of East European and handicapped refugees provided for the entry of 40 families. The New Zealand Government agreed to the entry of up to 720 Indo-Chinese refugees for resettlement in New Zealand between 1 July 1985 and 30 June 1986. Priority was given to those refugees with immediate family already resident in New Zealand but a quota of 100 places was reserved for Lao refugees with or without relatives in New Zealand to assist in increasing the small Lao community in New Zealand; 50 places were reserved for the UNHCR programmes DISERO (Disembarkation Resettlement Offers) and RASRO (Rescue at Sea Resettlement Offers); and a further 70 places were reserved for those refugees who have no relatives in any third country; and have been in camps for 4 years or more; and family groups with children born in the camps. Once established in New Zealand, refugee settlers may sponsor the entry of relatives to New Zealand for family reunification under normal family reunification policy. During 1985, 665 Indo-Chinese refugees arrived for resettlement bringing the total number of Indo-Chinese refugee settlers accepted by New Zealand to 6669 at the end of 1985.

Interdepartmental Committee on Resettlement. The Interdepartmental Committee on Resettlement (SCR), in consultation with other government agencies and non-government bodies, reviews the facilities available to assist new migrants, and as appropriate develops proposals for assistance to new migrants.

Resettlement Unit. As a part of the Immigration Division of the Department of Labour, the Resettlement Unit's role is to assess the range of settlement services available to new settlers and working visitors, and to make recommendations to government agencies, the ICR and other interested bodies. The Resettlement Unit has continued to focus its attention on the information needs of migrants, and ways in which they can be better informed about New Zealand and the services available to them in New Zealand. Work undertaken by the unit has also been aimed at fostering a better understanding in New Zealand of the difficulties faced by migrants and working visitors, encouraging recognition of the value of the contribution that new settlers make to New Zealand society, and suggesting ways in which these settlers may be assisted to take their place in the community.

Temporary entry. Entry permits for people wishing to visit New Zealand on a temporary basis are generally issued for varying periods of up to 6 months, though further extensions may be granted to bona fide tourists and other visitors to allow a total stay of up to 12 months. Visitors who wish to work while in New Zealand, whether for a New Zealand employer or on behalf of an overseas company, must apply for a temporary work permit; otherwise visitors are prohibited from working here. This requirement does not, however, affect Australian citizens who wish to work while in New Zealand, nor does it affect persons born in the Cook Islands, Niue, or Tokelau, who are New Zealand citizens and therefore have unrestricted right of entry into this country.

South Pacific work permit schemes. New Zealand has special work permit schemes in operation for citizens of Tonga, Fiji, and Western Samoa. Under these schemes, agreed upon after negotiations with the respective governments, workers may undertake employment in response to specific job offers from New Zealand employers. Employers are required to make financial and other commitments to ensure the welfare of Island workers while they are in New Zealand, and the Department of Labour checks that the conditions of employment offered are acceptable and that the accommodation provided is of a suitable standard. The maximum period of employment is 11 months.

From time to time New Zealand makes special arrangements on an ad hoc basis with other Pacific countries to provide employment opportunities as local conditions permit.

Student entry. Entry may be granted to overseas students to undertake approved courses of study, provided they make prior application and meet a number of requirements (including producing evidence of the availability of the necessary funds). The primary aim in permitting students from other countries to study in New Zealand is to train them to a stage where they can be of value in the development programmes of their own countries. For this reason, students from developing nations have preference.

Entry permits. Except for New Zealand citizens and certain other categories of travellers listed below under “Special Arrangements” and “Trans-Tasman Travellers”, all persons entering New Zealand are required to obtain entry permits under the Immigration Act 1964. All persons intending permanent residence in New Zealand should seek prior approval before setting out on their journey. This may be done by writing to the nearest overseas representative of the New Zealand Government or to the Secretary of Labour, Private Bag, Wellington, New Zealand for the necessary application forms. Visitors to New Zealand from a number of countries may not require visas or prior entry authority, provided the purpose of entry is for tourism, for business or to visit family and friends. Further details are available from the nearest overseas representative of New Zealand.

Special arrangements for Australian citizens. Australian citizens are exempt from New Zealand entry permit requirements (but not from other provisions of the Immigration Act). They are not required to produce a passport on arrival in New Zealand if they have travelled direct from Australia.

Trans-Tasman travellers. British Commonwealth citizens and citizens of the Republic of Ireland who have been granted permission to reside indefinitely without restriction in Australia, providing they have travelled direct from Australia to New Zealand, are not required to obtain a prior entry authority or to produce a passport on arrival. They may, however, be asked to produce some evidence of their entitlement to the exemption. These travellers are not exempted from other provisions of the Immigration Act.

Prohibited immigrants. The following categories of persons are prohibited from entry to New Zealand whether for permanent or temporary entry:

  1. Mentally disordered persons, or people suffering from tuberculosis, leprosy, or syphilis;

  2. Persons who have been convicted of an offence and sentenced to a term of imprisonment or other form of detention for 1 year or more or to any form of indeterminate detention for which they may be detained for a period of 1 year or more;

  3. Persons who have been deported from New Zealand (except for a certain class of ship deserter), or deported from any other country.

Those within any of the above categories who enter New Zealand without first obtaining special permission to do so commit an offence under the Immigration Act 1964.

Re-entry. Persons who have the status of permanent residents lose their residential status when they travel out of the country, unless they have first obtained a re-entry authority. Multiple re-entry authorities are valid for a period of up to 4 years and entitle the holder to leave and return to New Zealand on any number of occasions while the authority remains valid. Application for a re-entry authority may be lodged at any district office of the Department of Labour before departure.

Remaining in New Zealand without a permit. Persons who remain in New Zealand beyond the validity of a temporary permit are committing an offence against the Immigration Act and, if convicted, are liable to be deported.

Deportation. The Immigration Act 1964 makes provision for the deportation of persons in 4 main categories: persons convicted of certain offences against the Immigration Act; permanent residents who are convicted within specified periods of their arrival in New Zealand of an offence for which the Court has the power to impose imprisonment; those who have engaged in, or who belong to organisations which have engaged in, acts of terrorism; and any person who the Minister of Immigration has certified constitutes a threat to national security.

Appeals against deportation—Persons who have been convicted of offences against the Immigration Act may appeal in writing to the Minister of Immigration against deportation on the grounds that it would be unduly harsh or unjust to deport them. In addition, a Deportation Review Tribunal is empowered to hear appeals on humanitarian grounds from permanent residents against deportation orders following convictions for criminal offences.

Travel documents. All persons leaving New Zealand must have a valid travel document (except for short visits by New Zealand citizens to Rarotonga and direct return). As from 1 July 1981 New Zealand citizens were required to have a passport to enter Australia. This greatly affected the number of passports issued as noted below. New Zealand citizens do not require a visa to enter Australia.

Passports—All persons who arrive in New Zealand, except New Zealand citizens travelling direct from Australia and certain other trans-Tasman travellers listed below, may be required to produce a valid passport or some other acceptable and recognised travel document. Authority for the issue of passports in New Zealand and by New Zealand representatives overseas is contained in the Passports Act 1980.

New Zealand passports are issued and renewed within New Zealand by the Department of Internal Affairs at Wellington, Auckland, Rotorua, Christchurch, and Dunedin, at Rarotonga and Niue by the New Zealand Representatives, and overseas by the representatives of New Zealand at Apia, Athens, Baghdad, Bahrain, Bangkok, Bonn, Brisbane, Brussels, Canberra, Geneva, The Hague, Hong Kong, Honiara, Jakarta, Kuala Lumpur, Lima, London, Los Angeles, Manila, Melbourne, Mexico City, Moscow, New Delhi, New York, Noumea, Nuku'alofa, Ottawa, Paris, Peking, Port Moresby, Rome, San Francisco, Santiago (Chile), Seoul, Singapore, Suva, Sydney, Tehran, Tokyo, Vancouver, Vienna, and Washington. Harare (Zimbabwe) is to open in 1986.

During the year ended 31 March 1985 there were 138 107 New Zealand passports issued, compared with 139 640 during the previous year.

Citizenship

The current basic legislation of New Zealand citizenship is the Citizenship Act 1977, and the Citizenship (Western Samoa) Act 1982 together with the Citizenship Regulations 1978, which are administered by the Department of Internal Affairs. Prior to the 1977 Act, the relevant legislation was the British Nationality and New Zealand Citizenship Act 1948, the Citizenship Regulations 1977 and the Registration of Births and Deaths Citizenship Regulations 1960.

Citizenship Act 1977. Under the Citizenship Act 1977, New Zealand citizenship may be acquired in the following ways:

  1. by birth in New Zealand;

  2. by descent (i.e., birth outside New Zealand);

  3. by grant of citizenship.

Those persons who were citizens under the 1948 Act (whether by birth, descent, naturalisation, registration or under transitional provisions) at 31 December 1977, retain their status under the 1977 Act. The 1977 Act also introduced citizenship by descent through the female line, and citizenship by recognition of adoption and paternity.

To be eligible for a grant of New Zealand citizenship, a person (other than the spouse of a New Zealand citizen; or a person under 18 years of age) must:

  1. have resided in New Zealand for the 3 years immediately preceding the date of application;

  2. be entitled in the terms of the Immigration Act 1964 to reside in New Zealand permanently;

  3. be of full capacity;

  4. be of good character;

  5. have sufficient knowledge of the English language and of the responsibilities and privileges attaching to New Zealand citizenship;

  6. intend to continue to reside in New Zealand or to enter or continue Crown service under the New Zealand Government, or service in the employment of a person, company, society, or other body of persons resident or established in New Zealand.

There are also provisions for the grant of citizenship on the grounds of marriage to a New Zealand citizen and to minors, under the age of 18. In addition, the Act contains certain limited provisions for exemption from the standard requirements for the grant of citizenship in cases of hardship, statelessness or where the relevant parent was a New Zealand citizen by descent only.

Citizenship (Western Samoa) Act 1982. This Act provides primarily for the grant of citizenship to any person who—

  1. can establish that he/she is a Western Samoan citizen or that he/she comes within the specified degrees of association with Western Samoa; and who either

  2. was in New Zealand at any time on 14 September 1982; or

  3. lawfully entered New Zealand on or after 15 September 1982 and is entitled to reside in New Zealand permanently in terms of the Immigration Act 1964.

Under the 1977 and 1982 Acts, adults who acquired New Zealand citizenship by grant may be asked to swear allegiance to the Queen of New Zealand. Commonwealth citizens (British subjects) whose country recognises Queen Elizabeth II as Head of State are asked to take the oath on the application form. Other persons holding citizenship of a country which does not give this recognition are conditionally approved as New Zealand citizens, and are required to swear allegiance at a private or public ceremony to make the grant effective. Apart from this one differentiation, the 1977 Act treats aliens (citizens of countries other than Commonwealth) on exactly the same basis as citizens of Commonwealth countries. The requirement that aliens be registered was abolished on the introduction of this Act.

New Zealand citizens may be deprived of New Zealand citizenship if they voluntarily acquire a foreign nationality by any formal act other than by marriage, and have acted in a manner that is contrary to the interests of New Zealand, or voluntarily exercise any of the privileges or perform any of the duties of another nationality or citizenship in a manner that is contrary to the interests of New Zealand. Deprivation provisions can also be applied to cases where citizenship was obtained by fraud, false representation, mistake, or wilful concealment of relevant information. Under certain conditions New Zealand citizenship may also be validly renounced.

Applications received for the year ended 31 March 1986, totalled 11 572 compared with 11 226 during the previous year, and 10 203 persons were granted citizenship.

6.6 Maori population

For statistical purposes, all persons of half or more Maori origin have, in the past, been defined as Maoris. This differs from the wider definition introduced in the Maori Affairs Amendment Act 1974. That Act states that “Maori” means a person of the Maori race of New Zealand; and includes any descendant of such a person.

A total of 279 255 persons stated at the 1981 Census of Population and Dwellings that they were of half or more Maori origin. This compares with 227 414 in 1971 and 270 035 in 1976. However, the 1976 figure included 65 582 persons who indicated that they were of Maori origin but did not specify degree of descent.

Members of the Armed Forces overseas are excluded from the graph showing the New Zealand Maori population. In the graph and following tables the 1976 and 1981 figures show persons who indicated that they were of the Maori race of New Zealand but did not specify the degree of Maori origin whereas prior to 1976 only persons who specified themselves as half or more New Zealand Maori are included.

Table 6.32. MAORI POPULATION BY CATEGORY OF ORIGIN

Census YearHalf or More Maori OriginMaori Descendants
Total PopulationAverage Annual IncreaseProportion of Total PopulationTotal PopulationAverage Annual IncreaseProportion of Total Population
Source: Census of Population and Dwellings.
  Percent Percent
1951 (17 April)115,6762.96.0134,8422.77.0
1961 (18 April)167,0863.76.9202,5354.28.4
1971 (23 March)227,4143.17.9290,5013.710.1
1981 (24 March)279,2522.18.8385,5242.912.1

Maori age distribution. At the 1981 Census, 40 percent of the Maori population were under the age of 15 years, compared with 26.7 percent of the total population. The youthfulness of the Maori population is further demonstrated by the fact that at the 1981 Census, over half (53 percent) of the Maori population were under 20 years of age, compared to 36.4 percent of the total population.

Only 3.9 percent of Maoris are over 60 years of age. This compares with 14.0 percent of the total population.

Table 6.33. MAORI POPULATION AND TOTAL POPULATION BY AGE GROUP

Age Croup (Years)Total Population*Maori Population*
MalesFemalesTotalMalesFemalesTotal
NumberPercentageNumberPercentage

* Includes temporary visitors from overseas who were in New Zealand on Census night 1981.

† Persons of half or more N.Z. Maori orign.

Source: Census of Population and Dwellings.

Under 15433,206415,368848,57426.756,73354,921111,65140.0
Under 18526,293504,1261 030 42232.468,03165,709133,73747.9
Under 20590,691565,8061 156 49736.475,31272,828148,13753.0
18 and over1 052 6281 092 6872 145 31567.671,87473,632145,50052.1
20 and over988,2301 031 0072 019 24063.664,59366,513131,10046.9
60 and over194,586251,211445,79414.05,2445,52610,7613.9
65 and over133,566182,628316,19110.03,1893,3156,4982.3
80 and over17,15436,73553,8891.73003696660.2
            Total1578 9271596 8103 175 737100.0139 911139 344279 255100.0

Maori sex ratio. The earliest reliable statistics on the Maori population show a high predominance of males. In 1881 there were 81.1 females per 100 males and the gap has progressively closed until in 1976, there were 98.9 females to every 100 males. At the 1981 Census there were 139 911 males and 139 344 females in the total Maori population, a difference of only 567, representing a sex ratio of 99.6 females to every 100 males.

Table 6.34. MAORI POPULATION AND REPRODUCTION RATES

YearNew Zealand Maori Population as at 31 DecemberIncrease During YearMean Population for Year
MalesFemalesTotalNumberPercent
1980139,800139,000278,8003,1001.1277,200
1981141,200140,500281,7002,9001.0279,800
1982143,300142,400285,7004,0001.4283,300
1983145,100144,200289,3003,6001.3287,000
1984147,200146,100293,3004,0001.4290,800
1985148,800147,600296,4003,1001.1294,400
YearLive BirthsDeathsRate % Natural Increase*Reproduction Rates
NumberCrude Birth Rate*Total Fertility RateNumberCrude Death Rate*GrossNet

* Per 1000 of mean population.

† Average number of births a woman would have during her reproductive life if she was exposed to the fertility rates characteristic of various childbearing age-groups.

‡ Excess of births over deaths.

19806,42023.162.431,3394.8318.331.191.15
19816,60523.612.471,2904.6119.001.191.15
19826,21621.942.271,3184.6517.291.091.05
19836,27121.852.231,3264.6217.231.071.03
19846,74523.192.341,2634.3418.851.141.10
19856,47021.982.201,2724.3217.66  

Maori population increase and fertility. Between 1980 and 1985 the Maori population is estimated to have grown by 6.3 percent compared with an estimated growth of 4.2 percent in total New Zealand population. The Maoris have a substantially higher rate of natural increase than their non-Maori counterparts. This is due largely to their higher birth rate, which in turn is due mainly to their more youthful age structure.

The Maori fertility has undergone a rapid and significant decline in the last 25 years, with the total fertility rate falling from an estimated 6.18 births per woman in 1962 to 2.20 births per woman in 1985. As a consequence, the gap between Maori and non-Maori average family size, as implied by total fertility rate, has narrowed over the years. In 1962 the difference between the Maori and non-Maori total fertility rates was 2.0 births per woman; by 1985 this had narrowed to 0.5 births per woman. However, unlike their non-Maori counterparts, Maori women are still reproducing above the 'replacement level' and have an earlier childbearing pattern. In 1984 the median age at childbearing was 24.5 years for Maori women and 27.2 years for non-Maori women.

Maori mortality. There were 1272 Maori deaths registered in 1985, compared with 1263 for 1984, and 1326 for 1983. (Maori ethnicity is defined as persons with half or more Maori ancestry.) The crude death rate was 4.32 per 1000 mean population in 1985, compared with 4.34 in 1984, and 4.62 in 1983. The average age of death of Maoris in 1984 was 49.95 years and 52.52 years for males and females respectively.

As Table 6.35 clearly indicates, ethnic differences in mortality are also quite pronounced. The crude death rate for Maori population (4.32 per 1000 in 1985) is barely one-half of the death rate (8.78 per 1000) for the non-Maori population. However, any comparison based on crude mortality measures provides a misleading picture of the existing differentials, because the two populations have significantly different age structures. 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.

To facilitate a more accurate assessment of the Maori—non-Maori differential in mortality, the age-specific mortality rates for the two racial groups are compared in Table 6.36. Age-specific rates give the number of deaths per 10 000 of the mean population in the specified age groups. In each age group (except 5-14 years) the risk of death for Maoris significantly exceeds that for non-Maoris. The disadvantage is especially pronounced at ages 25-64 years, where the Maori rates are at least 70 percent higher.

Maori expectation of life. The expectations of life at various ages for the two racial groups are shown in Table 6.37, which is based on the mortality experience for the years 1980-82. Because of their low initial levels, Maoris have recorded greater gains in life expectancy at birth in recent years. Life expectancy at birth for Maori males increased by 4.8 years between 1960-62 and 1980-82, while that for Maori females increased by 7.1 years. By comparison, non-Maori male life expectancy at birth rose by 1.7 years between these periods and non-Maori female life expectancy by 2.4 years. Yet, in 1980-82 the expectation of life at birth for Maori males (63.8 years) was still 6.0 years less than that for non-Maori males (70.8 years). The expectation of life at birth for Maori females was 68.5 years—8.5 years less than for non-Maori females. Two decades ago, in 1960-62, the corresponding differences were 10.1 years for males and 13.9 years for females.

Table 6.35. COMPARISON: MAORI AND NON-MAORI DEATHS

YearNumbersCrude Rate per 1000 of Mean Population
Non-MaoriMaoriNon-MaoriMaori
198025,3371,3398.844.83
198123,8601,2908.294.61
198224,2141,3188.354.65
198324,6651,3268.394.62
198424,1151,2638.134.34
198526,2081,2728.784.32

Table 6.36. COMPARISON: MAORI AND NON-MAORI DEATH RATES, 1984

Ethnic GroupAge-specific Death Rates per 10 000 of Population at Ages
Under 5 Years5-14 Years15-24 Years25-44 Years45-64 Years65 Years and Over
Males
Maori49.13.513.026.8164.7676.2
Non-Maori31.33.414.415.9103.6641.7
Females
Maori34.43.04.916.0111.7472.2
Non-Maori21.22.05.68.659.7461.5
Both Sexes
Maori42.03.38.921.3137.9567.8
Non-Maori26.42.710.112.281.7536.8

Table 6.37. COMPARISON: MAORI AND NON-MAORI LIFE EXPECTANCY*

Exact Age (Years)Life Expectancy (Years)
Maori MalesMaori FemalesNon-Maori MalesNon-Maori Females

* Based on mortality experience in years 1980-82.

063.8468.4970.8276.95
2046.2250.6652.4458.18
4028.1231.9333.7438.87
6013.3916.3616.7421.17
805.367.005.907.71

Geographical distribution of Maoris. The increasing urbanisation of the Maori population is a significant population trend. At the 1926 Census of Population and Dwellings the urban New Zealand Maori population totalled 9905 (15.6 percent). By the 1981 Census the comparable figure for usually resident Maoris was 219 174 (78.5 percent), the largest concentration being in the Central and Southern Auckland Urban Areas where a total of 49 821 were enumerated.

Urban population is defined as that of main, secondary, and minor urban areas.

Between 1971 and 1976 the proportion of Maori population in the North Island dropped from 93.9 percent to 92.8 percent, but the proportion rose again to 93.0 percent (259 590) in 1981.

Table 6.38. MAORI POPULATION BY STATISTICAL AREA, 1981

Statistical AreaN.Z. Maoris*
NumberPercent

* New Zealand residents of half or more Maori descent.

Source: Census of Population and Dwellings.

North Island—
    Northland22,3538.01
    Central Auckland68,63124.59
    South Auckland - Bay of Plenty79,71028.56
    East Coast14,8805.33
    Hawke's Bay21,1747.59
    Taranaki7,9922.86
    Wellington44,85316.07
                Total North Island259 59093.02
South Island—
    Marlborough1,0350.37
    Nelson1,5930.57
    Westland5220.19
    Canterbury9,2523.32
    Otago2,7540.99
    Southland4,3411.56
                Total South Island19 4916.98
                Total, New Zealand279 084100.00

Maori households. The 1981 Census data on Maori housing shows, though, that significant disparities in terms of home ownership attainment between Maori and non-Maori continue to exist. Whilst 72.9 percent of permanent, private non-Maori dwellings were owned (with or without a mortgage), less than half (45.3 percent) of Maori dwellings were owned. Table 6.39 gives 1981 Census data on tenure of permanent private dwellings of Maoris and non-Maoris.

The average number of occupants per Maori dwelling at the 1981 Census was 4.2 (4.6 at 1976 Census) which compares with 2.9 for non-Maori dwellings (3.1 at 1976 Census). A total of 4686 Maori dwellings (7.8 percent) had 8 or more occupants (0.8 percent for non-Maori dwellings).

Table 6.39. MAORI HOUSEHOLDS 1981: TENURE OF DWELLINGS

TenurePermanent Private Dwellings
MaoriNon-Maori
 NumberPercentPercent
Owned—without mortgage7,71612.929.8
Owned—with mortgage19,38332.443.1
Rented—not from employer23,16638.820.0
Rented—from employer6,24310.43.5
Rented—undefined513090.2
Provided free—not with job1,2962.21.2
Provided free—with job1,4612.42.1
Not specified555....
                Total60 330100.0100.0

Maori society

Changes occurring in the Maori community over the last 10 years have paved the way for the major developments planned at the Hui Taumata in 1984 and carried out during 1985 and 1986.

The apparent divisions between younger and older people, rural and urban, conservative and radical, have largely been resolved. The Maori community has achieved a unity of purpose and a high level of commitment to pursue objectives on which a consensus has gradually emerged.

The Treaty of Waitangi, which Maori people have long maintained sets out the basis for a harmonious bicultural society, has been brought to the forefront of debate on race relations. New strategies have emerged for maintaining a Maori lifestyle and values in a comtemporary urban situation, and greater attention has been given to economic development as a necessary aspect of Maori cultural resurgence.

The Waitangi Tribunal helped to focus public attention on Maori grievances in relation to the Treaty of Waitangi. Their findings on Maori claims concerning the Waitara fisheries, the Kaituna river and the Manukau harbour raised fundamental questions about Maori rights and the recognition of Maori values in government and public administration. Maori people have been actively considering the status of the treaty for many years and the tribunal's recognition of past and ongoing injustices has now involved New Zealanders as a nation in the debate.

As a result of the tribunal's recommendations to Government, the Waitara claims have been met; alternatives to the Kaituna discharge are being studied in depth; and the Manukau claims are still under active consideration. In 1985 the Treaty of Waitangi Amendment Bill increased the membership of the tribunal from 3 to 7, and empowered it to investigate disputes which arose any time after 1840. The tribunal is due to report on a claim over the status of Maori language during 1986.

Maori language. Largely as a result of the Te Kohanga Reo movement, Maori language has also received much public attention. In accordance with the Government's election policy, a bill is to be introduced to Parliament during 1986 which confers “official recognition” on Maori language. Increased staffing and funding were allocated to bilingual education and taha Maori at school in the 1985 budget. Over the last few years Maori groups all around the country have operated short-term Maori radio stations. The role of broadcasting in the promotion of Maori language prompted an application by Aotearoa Broadcasting Systems for the warrant to operate the third television channel, broadcasting one-third of all programmes in Maori language.

As well, the Maori Economic Development Commission established a sub-committee on broadcasting.

Maori Economic Development Commission

The Maori Economic Development Commission was established by Cabinet in December 1984 following the Maori Economic Development Summit Conference.

The commission has strived to follow up all issues raised at this conference, and to act as a catalyst to retarget government resources which presently aggravate negative Maori outcomes.

The issues covered by the commission include Maori broadcasting, a Maori development bank, Maori involvement in the fishing industry and Maori underdevelopment.

Other objectives addressed by the commission have been:

  1. to indentify and quantify the size of government resources which presently aggravate negative Maori outcome.

  2. to indentify and cost proposals for positive Maori development.

  3. to indentify and collate characteristics of Maori development models.

  4. to consider options for government agencies after the commission has completed its work programme.

Underdevelopment—This report outlines how poorly Maori people are doing in all socio-economic areas when compared with non-Maori people.

Broadcasting—The contention at Hui Taumata was that current broadcasting trends retard the development of Maori people. The report looks at establishing a nationwide Maori radio network which will be responsive to Maori issues, aspirations and concerns. The report also looks at television and the potential of broadcasting to provide jobs.

Development Bank—A Maori development bank would be in the business of directing resources into activities which are capable of fostering economic growth of Maori land and people. The development bank could be based on the amalgamation of the activities of the Maori Trustee and the land development and rural lending activities of the Department of Maori Affairs. Additional funding by the Government would need to be applied for there to be a significant impact on Maori resource development.

Maori involvement in the fishing industry—A report has been compiled by Southpac Fisheries Consultants (Dr G. Habib) that indentifies numerous possibilities in fishing and related areas which could enhance Maori economic development.

Negative funding and proposals for change—The commision sees that a state of dependency has been created amongst both Maori and non-Maori people through a number of Government policies which require extensive financial support. To reduce this 'negative funding' it is necessary to redeploy resources from these programmes to proposals that enable positive Maori development. There are an infinite number of these proposals. The determining factors are priorities and finance availability. The overall aim is for the Maori to attain socio-economic parity with the non-Maori within 10 years. Raising Maori income must therefore be of highest priority.

Department of Maori Affairs

Community development policies. The legislative basis for all programmes is the Maori Community Development Act 1962 and amendments, which superseded the Maori Social and Economic Advancement Act 1945.

All programmes are designed to give effect to the department's philosophy of 'Tu Tangata'—to stand tall, to stand up for oneself. By meeting Maori needs on Maori terms the department promotes the development of the Maori community and the mobilisation of the people's own resources—the human talent, traditional institutions and cultural values.

“Kokiri” is the administrative style which has been developed to achieve these goals. Instead of following the conventional relationship between a bureaucracy and its client group, Maori Affairs has made a commitment to let the community take the lead in deciding policy and priorities. The department's job is to use its resources to support community initiatives.

A Kokiri Unit is a team of community workers employed by the department whose job is to assist with projects undertaken by the Maori community, e.g., establishment of Kohanga Reo, accommodation and employment schemes for young runaways, urban Marae projects.

Monthly public meetings are held in the district where the Kokiri Unit operates; community representatives discuss their plans for the coming months, and the meeting itself sets the work priorities for the Kokiri Unit.

'Tu Tangata' and 'Kokiri' are explained more fully in the paper “Reform from Within” by the then Secretary of Maori Affairs, I. P. Puketapu, January 1982.

Kohanga Reo. A Kohanga Reo is a whanau/family group where a deliberate effort is made to create a Maori cultural environment, in which Maori language values and customs are naturally acquired by pre-school children from their kaumatua (elders). Through the example of the whanau, the children learn aroha (love, compassion), manaakitanga (caring, hospitality), whanaungatanga (family responsibilities) and are taught traditional knowledge, crafts and customs, all through the medium of Maori language. Successful Kohanga Reo naturally become centres of community interest and activity, and provide a forum for the revival of traditions and the sharing of information and knowledge throughout the Maori community.

The Kohanga Reo movement has demonstrated how Maori culture could be maintained and developed in modern society and has been the springboard for other community education and development programmes.

Maatua Whangai. Is a scheme whereby young Maori people at risk of offending are directed to the care of members of their whanau, hapu or iwi. In return for the commitment of the Maori community, the Government provides some assistance with boarding costs and housing loans if necessary. Funds have also been allocated to help reinforce family networks which underpin this programme.

Rapu Mahi/Hanga Mahi is a scheme to increase employment of young Maori people by matching individuals who are known to be unemployed with organisations which are found to have jobs or training opportunities and creating employment opportunities in areas of Maori investment or economic growth.

Waiora is a community-based programme to promote recognition for Maori concepts of health, and to secure support, services and resources for Maori community health programmes.

Wananga. A wananga is a traditional approach to teaching and learning which is used in conjunction with most other programmes.

Kokiri centres are community centres set up with seeding grants from Maori Affairs, and run by independent executive management committees. Employment and training schemes subsidised by the Labour Department are established and administered by the Maori community around the Kokiri Centre. Other community development programmes can also operate out of Kokiri Centres, such as Kohanga Reo and Rapu Mahi.

Marae subsidies. Marae are traditional centres of Maori tribal life, the venue for major social, political and ceremonial activity. Maori Affairs subsidises money raised by marae committees to renovate and maintain Marae, and to provide necessary facilities so they can serve their communities effectively.

Employment and training. Maori input to Government employment and training policies has been co-ordinated by the Employment Project Team in Maori Affairs. The department's view is that Maori people will have more control over policies affecting young Maori if the programmes are administered through established tribal networks. Maori groups are administering 3 out of 11 pilot schemes to test the new Access transition education and training programmes.

The Maori Enterprise Development Scheme aims to create permanent employment opportunities through financial assistance for Maori enterprises. One million dollars has been transferred from Vote: Labour to the Board of Maori Affairs for pilot projects. Tribal organisations in 7 regions have been allocated a portion of this money, to be distributed to projects in their area which meet certain criteria set by Government.

Review of Department of Maori Affairs. In May 1985 the Minister of Maori Affairs established a committee to review the current functions and performance of the department. They were also asked to consider whether the department would become a Maori Development Corporation or Maori Development Commission.

The committee travelled widely to hear the views of Maori groups; they also received written submissions, and spoke to staff of Maori Affairs, and consulted other government departments. They concluded that its present structure frustrated Maori Affairs' efforts to meet Maori needs in Maori ways. A Maori Development Corporation could offer a more positive image, more effective control over resources, and greater independence, which Maori people want. The committee's report, presented on 3 September 1985, contained more detailed recommendations on the structure, functions and priorities of the proposed corporation.

Maori tribal developments

A recent trend has been the increased willingness of the Government to channel communications and resources through tribal organisations to the 'flax roots' of Maoridom. Runanga or trust boards have a key role to play in the implementation of the Maori Enterprise Development Scheme and Maatua Whangai, the development of a comprehensive Maori fisheries policy by the Ministry of Agriculture and Fisheries, the administration of Maori language boards and cultural wananga, and other activities.

Tribal structures are ideally placed to represent the whole range of Maori opinion, and because they operate in a Maori framework, they can harness the enthusiasm and commitment of the group more effectively. As this strategy is pursued the Government will undoubtedly benefit from improved liaison with the Maori community.

There are also major benefits for Maori people. Tribal identity and pride are enhanced and there is even greater incentive for Maori people to participate in tribal affairs. Traditional institutions and networks have been revitalised and new runanga and trust boards have been established in areas where they didn't exist. This strong tribal infrastructure is a key element in the emerging biculturalism in New Zealand, the Maori economic development, and the adaptation of traditional strengths to meet contemporary needs, which are features of Maori society today.

Community service for Maori people and Pacific Island Polynesians

The legislative basis of the Maori Community Services Programme is the Maori Community Development 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. The Act provides for subsidies to be paid on moneys raised by Maori people through their associations for the promotion of community services. An important feature of the Community Services Programme is that it calls upon the Maori and Pacific Island people to exercise the control and direction of their own communities.

The Maori organisations consist of 2 statutory groups and many 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 of Maori Affairs.

  2. The Department of Maori Affairs—The broad functions of the department are to assist Maori and Pacific Island peoples, particularly in social, economic, and cultural matters. Through its Community Services Division, the department gives assistance in the fields of education, employment, housing, and health.

New Zealand Maori Council. The primary functions of the New Zealand Maori Council are to encourage Maoris as individuals and in groups to take the initiative in matters affecting their own welfare and that of their kinsfolk; and 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 New Zealand Maori Council has undertaken the administration of the reappointments of Maori Wardens, and the Maori Community Development Act will be amended accordingly.

Maori Wardens. Maori Wardens continue to play a prominent role in the Maori community, for they are a valuable resource in dealing with urban social issues where Maori people are involved. Government agencies have called on their services on numerous occasions over the past year, and the assistance of the wardens has been appreciated. In several instances their knowledge of Maoritanga, and their ability to communicate and mediate in tense situations, led to the peaceful resolution of confrontations between Maori people and police or other authority figures.

A review of Maori Warden's role, responsibilities, functions, supervision, training, appointments and reappointments is to be undertaken and this will clarify their position. New Zealand society has changed since wardens were established in 1945, and wardens themselves have asked to have their duties and responsibilities reviewed.

Maori Women's Welfare League. The league established in 1951 is a national Maori organisation, its members spread throughout 8 tribally based regions. The league has emerged as an important link within Maoridom. Its purpose is to enable its members to play an effective part in the cultural, social, educational and economic development of Maori people, and the people of New Zealand. The league over the years has always been in the forefront of efforts towards the serial advancement of the Maori people. Its most recent achievement has been a health survey conducted in 1981 by Maoris themselves to determine the Maori woman's perception of her own health and the health of her family. The Health Report is now available and provides a base for positive health action programmes to improve Maori health.

Community officers. Community officers with the Department of Maori Affairs carry out a different range of functions from those of other social workers. 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 community services staff is occupied in informing Maori and Pacific Island parents about all of the Tu Tangata programmes, vocational opportunities open to their children, including recruiting and organising vocational training groups for school leavers, stimulating the formation of Kohanga Reo, and in dealing with youth problems in the cities. The whole emphasis is on youth and community development and the strengthening of the family and kin groups which have traditionally supported the individual.

Honorary community officers. There are 520 honorary community officers who continue to work in the community, towards assuring that people have awareness of the Tu Tangata policies implemented by the Department of Maori Affairs. Their tasks range from work on Children's Boards, to work associated with Maatua Whangai. They also play an important role in other Kokiri programmes and assist in the formation of support groups for the Kokiri concepts.

Out-of-pocket expenses are reimbursed through a departmental grant to Honorary Community Officer Associations in each district.

6.7 Pacific Island Polynesian population

The total Pacific Island Polynesian population in New Zealand numbered 89 697 at the 1981 Census of Population and Dwellings and was 2.9 percent of the total New Zealand population compared with 2.0 percent in 1976. Of these persons, 873 were temporary visitors in New Zealand on census night leaving a resident Pacific Island Polynesian population of 88 824 (60 966 at the 1976 Census), an intercensal increase of 27 861 (45.7 percent). Nearly half (42 078 or 47.4 percent) of the resident Pacific Island Polynesian population were Samoans while more than a quarter (23 880 or 26.9 percent) were Cook Island Maoris.

Age distribution. The Pacific Island Polynesian population in New Zealand is characterised by high proportions of children (0-14 years) and also by high proportions in the main working ages (25-44 years). Some 41.3 percent of the Pacific Island Polynesian population were under 15 years of age compared with 40.0 percent of the New Zealand Maori population and only 25.2 percent of the population excluding New Zealand Maoris and Pacific Island Polynesians.

However, while both the Maori and Polynesian populations in New Zealand have youthful age structures, the proportion in the major working ages (25-44) is a distinguishing feature when comparing the two populations.

Table 6.40 shows that 29.6 percent of the Pacific Island Polynesian population were aged between 25 and 44, compared with 23.7 percent of Maoris and 26.8 percent of the population excluding Maoris and Polynesians.

Table 6.40. RESIDENT NEW ZEALAND POPULATION 1981: COMPARISON OF POLYNESIANS, NEW ZEALAND MAORIS AND OTHERS

Age (Years)Pacific Island PolynesianN.Z. MaoriEuropean* and Other

* Population excluding Pacific Island Polynesians and New Zealand Maoris.

Source: Census of Population and Dwellings.

Percent
0-415.212.67.3
5-1426.127.417.9
15-1910.013.19.4
20-249.410.48.4
25-4429.623.726.8
45-597.09.015.0
60 and over2.63.915.2
          Total100.0100.0100.0

Geographical distribution. The Central Auckland Statistical Area had the largest resident Pacific Island Polynesian population—57 462 or 64.7 percent of the resident Pacific Island Polynesian population of New Zealand. They represented 7.1 percent of the resident population of the statistical area.

The next largest concentration was in the Wellington Statistical Area with a Pacific Island Polynesian population of 17 580 (3.1 percent of the population of the area) representing 19.8 percent of the resident Pacific Island Polynesian population in New Zealand. Only 6.5 percent (5793) of the New Zealand Pacific Island Polynesian population lived in the South Island at the 1981 Census.

Urbanisation—At the 1981 Census, 97.9 percent of the Pacific Island Polynesian population were in areas classified as 'urban' and this population was concentrated within particular urban centres.

The Porirua Basin Main Urban Area has the highest proportion of Polynesians with 12.0 percent (6513) of the population being Pacific Island Polynesians. Tokoroa Secondary Urban Area had the next highest proportion of Polynesians with 2232 persons, constituting 11.6 percent of the resident population of the urban area.

In the Porirua Basin Main Urban Area, the Pacific Island Polynesian population exceeded the New Zealand Maori population. This was also the case in Central Auckland Main Urban Area which had a Pacific Island Polynesian population of 23 769 (8.7 percent of the resident population). The largest Pacific Island Polynesian population was in Southern Auckland Main Urban Area with 25 320 representing 11.2 percent of the resident population. Between them, these 4 urban centres accounted for 65.1 percent of the resident Pacific Island Polynesian population in New Zealand.

Pacific Island Polynesian dwellings. Some 18 096 permanent and private dwellings were classified as Pacific Island Polynesian at the 1981 Census. They represented 1.8 percent of all permanent and private dwellings in New Zealand.

There were 85 707 occupants in these dwellings giving an average occupany rate of 4.7 persons per dwelling. This compares with an average occupancy rate of 4.2 persons per dwelling for New Zealand Maori dwellings and 2.9 for all other permanent and private dwellings (i.e. excluding Polynesian and Maori).

A total of 2217 (12.3 percent) Pacific Island Polynesian dwellings had 8 or more occupants, the equivalent proportions for New Zealand Maori dwellings being 7.8 percent and for “other” dwellings just 0.6 percent. Some 6.1 percent of Pacific Island Polynesian dwellings had 1 occupant compared with 8.9 percent of New Zealand Maori dwellings and 19.3 percent of all other dwellings.

The majority of Pacific Island Polynesian dwellings were rented (1.0 773 or 60.3 percent), the proportion being higher than that for both Maori dwellings (50.1 percent) and other dwellings (23.1 percent). In comparison, 38.9 percent (6951) of Pacific Island Polynesian dwellings were owned (with or without a mortgage) compared with 45.3 percent of Maori dwellings and 73.6 percent of the remaining dwellings.

Table 6.41. MAORI AND POLYNESIAN OCCUPATION OF DWELLINGS 1981

Number of OccupantsPermanent and Private Dwellings
Pacific Island PolynesianNew Zealand MaoriEuropean* and Other

* Excluding Polynesian and Maori dwellings.

Source: Census of Population and Dwellings.

Percent
16.18.919.3
2-444.351.764.9
5-737.331.615.2
8 and over12.37.80.6
     Total100.0100.0100.0

Households.Table 6.42 shows that both Pacific Island Polynesian and New Zealand Maori households had lower proportions of households as “one family complete” than did the remainder of the population.

Nearly a third of Pacific Island Polynesian households (5658 or 31.3 percent) were “other family households” (i.e. multi-family or families plus other persons). For Maoris, 24.1 percent were “other family households” while the proportion for all other households was only 8.1 percent.

For the Pacific Island Polynesian population some 75.8 percent of these “other family households” consisted of one family plus other persons while the remaining 24.2 percent were “multi-family households”.

Only 6.1 percent of Polynesian households were one person households compared to 8.9 percent of Maori and 19.3 percent of all other households.

Table 6.42. POLYNESIAN HOUSEHOLDS 1981

Household TypeProportion of HouseholdsAverage Number of Members Per Household
Pacific Is. PolynesianN.Z. MaoriEuropean* and OtherPacific Is. PolynesianN.Z. MaoriEuropean* and Other

* Total permanent, private dwellings excluding those classified as Pacific Island Polynesian and New Zealand Maori.

† Households of which total occupants consist of members of one family (husband, wife, unmarried children), but with one or more members absent on Census night.

Source: Census of Population and Dwellings.

One family complete46.445.556.24.64.33.3
One family incomplete10.615.710.23.83.73.0
Other family:
    One family plus other persons23.718.26.85.85.44.4
    Multi-family7.65.91.38.37.75.8
    Total, other family31.324.18.16.46.04.6
Non-family5.65.86.12.62.52.4
One person6.18.919.31.01.01.0
        Total, Households100.0100.0100.04.74.22.9

Further information

Census of Population and Dwellings 1981—Department of Statistics.

Regional Statistics Series.

Bulletin 1-10 (Each bulletin gives final population, dwelling, and household statistics on a major area of New Zealand).

Vol. 1—Pt. A—Location and Increase of Population.

Pt. B—Population Density.

Pt. C—Usually Resident Population.

Vol. 2—Ages, Marital Status, and Fertility.

Vol. 3—Religious Professions.

Vol. 4—Labour Force.

Vol. 5—Incomes.

Vol. 6—Education and Training.

Vol. 7—Birthplaces and Ethnic Origin.

Vol. 8AMaori Population and Dwellings.

8BPacific Island Polynesian Population.

Vol. 9—Dwellings.

Vol. 10—Households, and Families.

Vol. 11 —Internal Migration.

Demographic Bulletin—Department of Statistics.

1983 Electorate Profiles.

Entry to New Zealand: Information for Intending Immigrants—Department of Labour.

Household Survey Report—Department of Statistics (annual).

Immigration and New Zealand—Department of Labour.

Immigration Requirements for Non-working Visitors to New Zealand—Department of Labour.

Justice Statistics 1978: Divorce and Domestic Proceedings (Bulletin No. 1. 1979)—Department of Statistics.

Life Tables 1975-77—Department of Statistics (1979).

Report of the Department of Maori Affairs (Parl. paper E. 13).

Maps of Statistical Boundaries—Department of Statistics.

Miscellaneous Bulletin Series—Department of Statistics.

No. 1 —New Zealand Males and Females—A Statistical Comparison.

No. 7—New Zealand Maori and Non-Maori Populations—Time Series.

No. 10—Family Statistics in New Zealand 1978.

No. 12—New Zealand Children 1979.

No. 20—New Zealand Males and Females: A Statistical Comparision 1945-78.

Monthly Abstract of Statistics—Department of Statistics.

Mortality and Demographic Data—National Health Statistics Centre, Department of Health (annual).

New Zealand Population Projections 1983-2016—Department of Statistics.

Occasional Paper Series—Department of Statistics.

No. 4—New Zealand Rural Profile.

No. 5—An Investigation of Official Ethnic Statistics.

Population and Migration—Department of Statistics (annual).

Pt A—Population.

Pt B—External Migration.

The Public Health (Annual Report of the Department of Health, Parl. paper E. 10).

Report on the Social Indicators Survey 1980-81—Department of Statistics (1984).

Social Trends in New Zealand—Department of Statistics (1977).

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

Trends in Health and Health Services—National Health Statistics Centre, Department of Health (3-yearly).

Vital Statistics—Department of Statistics (annual).

Chapter 7. 7 Health and social welfare

7.1 Health system

The nation's health services are the responsibility of a partnership of central and local government, private medical practitioners, paramedical workers, charitable and religious organisations and private citizens, with the 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.

Structure of health services

Health Service Personnel Commission. The Health Service Personnel Act 1983, which came into full effect on 1 April 1984, established the Health Service Personnel Commission. The commission is the employing authority for health services under the State Services Conditions of Employment Act 1977. Hospital boards and area health boards remain the legal employers of staff but exercise their authority according to policies established by the commission.

The general functions, duties, and powers of the Health Service Personnel Commission include:

  1. the provision of employment conditions for employees of area health boards and hospital boards;

  2. the co-ordination of pay-fixing throughout the public sector health service;

  3. the development of a nationwide career service within hospital boards, area health boards and the commission by establishing consistent personnel policies and practices.

Area Health Boards. For the past decade there have been continuing efforts to integrate and coordinate health care in the public, private and voluntary sectors. To this end, the Area Health Boards Act 1983 came into force on 1 April 1984. The Act provides for the integration of public health agencies (hospital boards and Department of Health district offices) to form area health boards, which are established on the request of hospital boards and by an Order-in-Council made on the recommendation of the Minister of Health. There is provision for 2 or more hospital boards to join together to form an area health board.

Private and voluntary sectors can become involved in health planning by participation in service development groups and community committees.

During 1985, area health boards were established in Northland, Wanganui and Nelson.

Hospital Boards. General and psychiatric hospitals are controlled by locally elected hospital boards and area health 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.

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. The Order of St. John and organisations such as the Wellington Free Ambulance perform valuable services in this way.

Board of Health. The Health Amendment (No. 2) Act 1982 sets out the broad principles and framework for organising the advisory machinery of the health services within a reconstituted Board of Health. The Act provides for a Board of Health to give independent advice to the Minister of Health on all the major aspects of health services policy and operation. The Board has set up 11 standing advisory committees which between them cover the whole range of health services. Membership of the committees is drawn from the community at large as well as from professional bodies and organisations.

Registration councils and boards

Doctors—The Medical Council of New Zealand, constituted under the Medical Practioners Act 1968, consists of the Director-General of Health, the deans of the faculties of medicine in the Universities of Otago and Auckland, 8 registered medical practitioners appointed on a representative basis and 1 layperson.

The council deals with all applications for registration under the Act. Until an applicant is able to satisfy the council that he or she 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 1985 was 7964, but not all are in active practice in New Zealand.

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

Dentists—The Dental Council was constituted under the Dental Act 1963. The functions of the council 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 1984 was 1275. Under provisions of the Dental Technicians Regulations 1968, a Registration Board for Dental Technicians was constituted. The number of registered dental technicians holding annual licences as at 31 March 1984 was 299.

Nurses—The Nursing Council of New Zealand was constituted under the Nurses Act 1971 to replace the Nurses and Midwives Registration Board. It now operates under the Nurses Art 1977 and Amendment 1983. Its primary function is the registration and enrolment of nurses. In this connection it sets minimum standards for registration; makes recommendations on programmes leading to registration and enrolment; conducts examinations; approves schools of nursing subject to ministerial concurrence; enrols and registers nurses; issues annual practising certificates and exercises disciplinary powers.

The council recognises a number of registration categories, namely: comprehensive; general; general and obstetric; psychiatric and psychopaedic nurse; midwife and enrolled nurse. Comprehensive registration will ultimately replace all except the midwifery category of registration.

Comprehensive nurse and midwifery courses are conducted in technical institute and community colleges. All other programmes are conducted in hospital schools of nursing. Basic programmes and courses leading to registration are all 3 years in length with the exception of the midwifery course which is one year. The latter course forms part of an Advanced Diploma in Nursing, open only to nurses who are already registered as either general and obstetric or comprehensive nurses. The enrolled nurse programme is also one year in length.

In the year ending 31 March 1985, 38 836 registered and enrolled nurses held valid annual practising certificates.

Psychologists—The Psychologists Board is constituted under the Psychologists Act 1981. The board is concerned with the registration and conduct of persons engaged in psychology. At 18 January 1985 there were 733 registered psychologists.

Physiotherapists—The New Zealand Physiotherapy Board is constituted under the Physiotherapy Act 1949. The board's functions are the examination and registration of candidates for physiotherapy practice, the issuing of special licences and the regulation of conduct of those registered under the Act.

The training period for physiotherapists is 3 years. Full-time training is conducted at the Physiotherapy Department, Auckland Technical Institute, and at the School of Physiotherapy, Otago Polytechnic, Dunedin. From 1 February 1976 the control of this school was transferred from Otago Hospital Board to Otago Polytechnic Council. All students are required to pass the State Examination in Physiotherapy to qualify for registration.

During the period 1 April 1984 to 31 March 1985, 119 physiotherapists were registered, bringing the total on the register to 3842. Some 1684 physiotherapists hold current annual practising certificates.

Occupational therapists—The Occupational Therapy Board is constituted under the Occupational Therapy Act 1949. The board is concerned with the registration and conduct of persons engaged in the practice of occupational therapy.

The Central Institute of Technology, Heretaunga, 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 approximately 635 occupational therapists in active practice.

Dietitians—The Dietitians Board, constituted under the Dietitians Act 1950, is concerned with the training, examination and registration of persons engaged in the practice of dietetics.

The training period for a dietitian is, in the case of the holder of a degree of bachelor of home science conferred by the University of Otago or of the holder of a diploma in home science of the University of Otago, 12 months in a hospital training school. In the year to 31 January 1986 there were 714 registered dietitians. Annual practising certificates were issued to 297 dietitians. There were 21 new registrations during 1985.

Optometrists and dispensing opticians—The Optometrists and Dispensing Opticians Act 1976 provides for the constitution of an Opticians Board, consisting of: 4 registered optometrists to be appointed on the nomination of the New Zealand Optometrical Association Incorporated; 1 registered optometrist who is actively engaged in teaching optometry to be appointed on the nomination of the Council of the University of Auckland; 2 registered dispensing opticians to be appointed on the nomination of the Association of Dispensing Opticians and Optical Dispensers of New Zealand Incorporated; 2 ophthalmological specialists who are registered under the Medical Practitioners Act 1968, to be appointed on the nomination of the New Zealand Medical Association; and one other person being an officer of the Public Service employed in the Department of Health.

By February 1986, 414 annual practising certificates had been issued for the year ended 31 March 1986. This consisted of 393 optometrists and 61 dispensing opticians. There were 11 new registrations during 1985.

Podiatrists—The Medical and Dental Auxiliaries Act 1966 provided for the constitution of a Podiatrists Board. The Podiatrists Regulations 1982 specify that the board shall consist of an officer of the Department of Health, 3 persons entitled to registration as podiatrists who have been nominated by the New Zealand Society of Podiatrists, and a medical practitioner who has been nominated jointly by the Medical Association of New Zealand and the Executive Committee of the New Zealand Orthopaedic Association. The board's functions include the promotion of high standards of education and conduct among persons engaged or intending to become engaged in podiatry, the exercising of disciplinary powers in accordance with the Act in respect of registered podiatrists and the conducting of special examinations. The board also deals with all applications for registration under the Act.

There are approximately 360 registered podiatrists, but only 185 are engaged in active practice. A significant number of those in active practice work only part-time. Following the Government's policy, a number of hospital boards are establishing community-oriented podiatry services, principally intended for the elderly.

Chiropractors—The Chiropractic Board is constituted under the Chiropractors Act 1982, and is concerned with the registration and conduct of persons engaged in the practice of chiropractic.

There is no training available in New Zealand. The principal criteria for colleges applying to the New Zealand Chiropractic Board for approval is documentary evidence that the college has been accredited by the federal appointed professional accrediting agency in the United States of America (CCE) and those accrediting agencies having reciprocity with that agency. There are 106 practising chiropractors at present.

Plumbers, gasfitters, and drainlayers—The Plumbers, Gasfitters, and Drainlayers Board consists of 13 members including: representatives from the Municipal and Counties Association; the Gas Association; the New Zealand Drainlayers Association; the Master Plumbers Society (2); the Plumbers, Gasfitters, and Related Trades Industrial Union of Workers (2); Department of Labour; Department of Education; Department of Health; and an engineer employed by a local authority or drainage board, plus one other person; to be appointed by the Minister.

The board is concerned with the registration of plumbers, gasfitters, and drainlayers. It issues annual licences to craftspeople and registered plumbers, gasfitters and drainlayers; limited certificates; and for certain specialised work, certificates of exemption in gasfitting and plumbing. It also has authority and responsibility for disciplinary action against craft plumbers and gasfitters if it is established they have done unsatisfactory work.

Drainlaying may be carried out only by registered drainlayers. Gasfitting may be carried out only by craft gasfitters or by registered gasfitters and holders of limited certificates (working in the employment, or under the supervision, of craft gasfitters or persons holding certificates of exemption in gasfitting).

Except in specially exempted areas, all sanitary plumbing defined in the Plumbers, Gasfitters, and Drainlayers Act 1976 can be performed only by craftspeople and registered plumbers and holders of limited certificates working in the employment or under the supervision of craft plumbers, or by persons holding a certificate of exemption.

Specifications, work standards and materials in plumbing work are prescribed in the provisions of the Drainage and Plumbing Regulations enacted under the Health Act.

Pharmacists—At the end of December 1985 there were 3263 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 4 by members of the Pharmaceutical Society who are not pharmacy proprieters. The main function of the council of the Pharmaceutical Society is to administer the Pharmacy Act and to protect and promote the interests of both the profession of pharmacy and the public.

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, Heretaunga, 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 gain 52 weeks' pre-registration experience 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 get 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, or the holding of an interest in more than one pharmacy by any person, is subject to the consent of the authority. All pharmacies must be registered with the society.

At the end of December 1985 there were 1138 community pharmacies in New Zealand employing just over 2000 pharmacists. Between 250 and 300 pharmacists were working outside community pharmacies in hospitals, government departments and the pharmaceutical industry.

Medical radiation technologists—The Medical Radiation Technologists' Board is constituted under the Medical and Dental Auxiliaries Act 1966. The board is concerned with the registration, education and conduct of persons engaged in the practice of medical radiation technology. It has representation from the New Zealand Society of Radiographers and Medical Radiation Technologists Inc., the New Zealand Branch of the Royal Australasian College of Radiologists, and the Departments of Health and Education.

There are 5 classes of medical radiation technology: diagnostic radiography; radionuclide imaging; therapeutic radiography; ultrasound imaging; and magnetic resonance imaging.

The training period for medical radiation technologists in diagnostic radiography is 3 years. There are 6 schools of radiography undertaking the Conjoint Board Diploma of Qualification in Diagnostic Radiography in New Zealand. They are at Auckland, Christchurch, Dunedin, Palmerston North, Waikato and Wellington Hospitals.

The training period for therapeutic radiography is also 3 years. The course is conducted at the Central Institute of Technology, Heretaunga, and successful candidates obtain the Diploma in Therapeutic Radiography issued by the Central Institute of Technology. There is a practical experience requirement.

The Diploma in Nuclear Medicine Technology of the Royal Melbourne Institute of Technology is a 3-year correspondence course and requires appropriate work experience.

The Australian Society of Ultrasound in Medicine issues a Diploma in Medical Ultrasound. At present New Zealand candidates sit this by correspondence but efforts are being made currently to conduct the examinations in New Zealand. There are 2 examinations and 2 years' work experience. Candidates for the second exam must go to Australia to sit the examination.

As at February 1986, there were 1443 registrations. In total 891 annual licences were issued to practitioners. There were 105 new registrations during 1985.

Medical laboratory technologists—The Medical Laboratory Technologists' Board is constituted under the Medical and Dental Auxiliaries Act 1966. The board is concerned with the training, examination, registration and conduct of persons engaged in the practice of medical laboratory technology. It has representation from the New Zealand Institute of Medical Laboratory Technology (Inc.), the New Zealand Society of Pathologists Incorporated, and the Departments of Health and Education.

The training period is 5 years. The first 3 years are spent studying for the New Zealand Certificate in Science (Medical Science) and gaining specified laboratory experience. Thereafter, study and laboratory work continues towards the board's certificate and specialist level examinations, which are offered in 10 disciplines. Only one subject and level may be attempted each year. On completion of 2 certificate level subjects, or the certificate and specialist levels in one discipline, the trainee gains the Diploma in Medical Laboratory Technology and is eligible for registration by the board.

Candidates with an appropriate New Zealand Certificate in Science in other than medical science may be permitted to sit the certificate and specialist level examinations in one discipline only to gain limited registration in that discipline. In addition, university graduates with appropriate degrees may train for 3 years and obtain limited registration in any disciplines in which they pass the examinations of the board.

By January 1986 there were 1417 full registrations, and a total of 56 holding limited registration in specified disciplines. Annual licences for 1984-85 were issued to 810 practitioners and limited registration annual licences to 30 practitioners.

Administration of health services

Local authorities. 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 2 or more authorities 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.

Department of Health. In each health district and area health board the medical officer of health, who is a medical practitioner with special qualifications in community medicine, is the adviser to all local authorities in his or her district.

In some cases the medical officer of health's approval is needed before action can be taken by a local authority, while in others he or she is the first line of appeal against its decisions. Medical officers of health are 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 the officer's direct supervision and control. New programmes of immunisation are undertaken by the department and, when these have been established, vaccines are provided free to general practitioners who are 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 to control communicable and chronic diseases and keep New Zealand free of quarantinable diseases.

Accident prevention and the health of industrial and agricultural workers is the responsibility of the Department of Health together with the Department of Labour. The aim is to prevent occupational disease, control toxic hazards, raise standards of first aid services and ensure the safe use of agricultural chemicals. Food and nutrition standards aimed at protecting the consumer are laid down. An extensive programme backed by legislation governs the packaging, labelling, storage and sale of poisons. Special environmental problems, such as radiation protection, occupational health and atmosphere pollution are also the responsibility of the Department of Health.

Public health services in the Department of Health are organised to reflect 2 distinct and identifiable areas: environmental factors affecting health; and the promotion of personal good health in the community. The Division of Public Health is responsible for environmental health, quarantine, occupational health and toxicology, radiation protection and the quality of food. The Division of Health Promotion gives emphasis to disease prevention and better personal health through the expansion of family health, health education, nutrition and public health nursing services.

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; the inspection of schools and child care centres; and the immunisation of infants against poliomyelitis and other diseases.

A school dental service staffed by dental nurses and directed by dentists provides dental care and health education for all pre-school, primary and intermediate school children. Private dental practitioners provide treatment for teenagers until their sixteenth birthday, or if they remain at secondary school, until their eighteenth birthday.

The Department of Health is responsible for the organisation and control of nursing services to the public in general, including private or public hospitals and homes for the aged, incapacitated or infirm. Considerable delegation has taken place, mainly to hospital and area health boards whose chief nurses are responsible for the administration of the services provided. The department keeps its nursing services and those provided by boards under continuous review. Basic nursing education is provided in 3 hospital schools of nursing and 15 technical institutes. Formal post-basic nursing education at diploma/degree level is available from Massey University, and 4 technical institutes have post-basic diploma courses. Short post-basic courses in learning and teaching are available from 2 teachers' colleges, and similar short courses in community health nursing are available from 4 technical institutes. “Bridging” courses to enable registered nurses to gain comprehensive registration are available from 5 technical institutes.

Within its public health nursing service, the department employs about 500 qualified nurses. Their work includes supervising the health of babies and small children, taking part in child health (including health education) programmes, providing a service to small industries and people in “at risk” occupations, taking part in disease control programmes, and assisting elderly people and people with mental health problems.

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

In addition the Department of Health liaises with professional and other associations, voluntary health and welfare agencies, the universities and other Government departments.

Health expenditure

From 1 April 1958, the cost of public hospital administration has been borne directly by general taxation; treatment in public hospitals is free. From 1 April 1964, when the Social Security Fund was absorbed into the Consolidated Revenue Account (now the Consolidated Account), the payment of medical benefits has been made by the Department of Health from money appropriated by Parliament for (his purpose. Details of medical benifits are in Section 7.4.

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 Governmental efforts to restrain the rapid growth in health expenditure. To this end, hospital boards were required to accept a 1 percent reduction in their allocation of funds in 1979-80, 1980-81, and again in 1981-82.

The population-based method of funding hospital boards was implemented from 1 April 1983 and the formula will be reviewed by the government after 3 years.

For 1983-84 and 1984-85 financial restraint was applied to those boards shown by the funding formula to be advantaged. The funds recovered from these boards were available for redistribution to boards shown to be disadvantaged and which submitted acceptable service development plans. In addition a general restraint of 0.5 percent was applied in 1983-84 to all but the 8 most disadvantaged boards, to enable existing commissioning grants to be written into base allocations without increasing the total allocation for hospital boards above the 1982-83 level.

The total allocation for grants to hospital boards was increased by 0.6 percent for 1984-85 in recognition of the effect of the service maintenance factor. This factor represents the need for increased resources so that existing levels of service can be maintained in the face of increasing population pressure on hospital board services.

Policy for the 1985-86 financial year called for the continuation of restraints on financially advantaged boards and again these funds were available to disadvantaged boards. The total allocation for grants to hospital boards for 1985-86 was increased by 0.8 percent to recognise the effect of the service maintenance factor.

In conjunction with the funding formula, service planning guidelines have also been developed to assist hospital boards to make the best use of resources and to encourage equitable access to services. The service planning guidelines relate levels of health services to be provided to catchment population sizes: local (up to 30 000); district (30 000 to 250 000); regional (over 250 000); and national which covers specialised services such as neurosurgery and spinal units serving the total population.

Hospital board service planning guidelines have been published for paediatrics. Draft guidelines for obstetric and neonatal, intensive care, renal dialysis and transplantation, and services for the elderly have been circulated to hospital boards for comment. Work is under way on dental services, oncology services, alcohol and drug services, cardiac surgery and child psychiatry.

The implementation of the funding formula and the development of service planning guidelines were accompanied by a request from the Minister of Health for hospital boards to submit a comprehensive service development plan by 31 March 1985. To assist hospital boards in this work, a number of Department of Health staff advised boards on a consultancy basis. In addition, 2 workshops were held to help senior administrators in hospital boards to establish and manage service development planning. Approximately half of the 29 hospital boards have submitted draft plans and/or revisions of their plans. Other boards continue to work on their plans.

Table 7.1. EXPENDITURE OF THE DEPARTMENT OF HEALTH

Activity Programme1981-821982-831983-841984-85

* Mostly grants to hospital boards.

† From 1 April 1983 Medical Research is included in Administrative Services.

‡ From 1 April 1983 Health Protection and Health Promotion separated from Public Health and Environmental Protection.

§From 1 April 1983 Welfare Services are included with Hospital Services.

Source: Department of Health.

$(thousand)
Administrative Services12,30813,46922,91723,459
Data Processing5,5115,57312,67311,263
Hospital Services*1,207,3581,331,4481,343,1551,409,059
Medical Research6,7168,308--
Medical and Pharmaceutical Services273,128303,380332,308372,050
Public Health and Environmental Protection61,03166,1326,2556,269
Health Protection--25,21325,334
Health Promotion--31,33832,296
Dental Services33,14535,04534,03234,563
Welfare Services§3.9214,396--
                Total1,603,1181,767,7511,807,8911,914,293
                Less departmental receipts1,8941,7532,9642,996
                Net Expenditure1,601,2241,765,9981,804,9271,911,297

7.2 Public health

Environmental health

Local authority control. Under the Health Act 1956, territorial local authorities have a duty to promote and conserve the public health within their districts. They appoint health inspectors to carry out regular inspections and abate any nuisances or conditions injurious to health. Specific responsibilities include the control of sanitary conditions (including overcrowding of residential premises), the regulation of plumbing and drainage, the control of offensive trades, the control of environmental noise, air pollution control of small Industries, and the hygiene of premises, including restaurants, in which food is manufactured or sold. Local authorities are also empowered to provide public water supplies, sewage disposal systems, refuse collection and disposal services, stormwater drainage, public conveniences, cemeteries, crematoria, swimming pools and other sanitary works.

Role of the Department of Health. The objective of the department is to promote and maintain a healthful environment for the general public. The department's role is to support and advise local authorities in the performance of their statutory duties, to carry out ongoing surveillance of environmental health conditions and to promote improvements in those conditions where necessary. For these purposes, the department operates numerous programmes including health inspection services, p surveys of environmental health systems, financial incentives, staff training and air pollution control.

Health inspection services provided by the department include national and international functions such as the maintenance of food standards, quarantine, health education, communicable disease control, shellfish sanitation, and the carrying out of national surveys of water supplies, food premises and refuse disposal sites. The department organises the basic training of health inspectors employed by local authorities and conducts specialist and refresher courses for them. In the case of some smaller local authorities the necessary inspections are made by departmental inspectors on behalf of the local authority.

Financial incentives in the form of subsidies towards the capital cost of water supply, sewage disposal and fluoridation systems are provided for local authorities by the Department of Health. These have been available since 1969 in various forms and have been particularly successful in bringing about improved environmental health conditions.

Industrial air pollution is controlled under the Clean Air Act 1972 through a system of licensing processes known to emit air pollutants, and a requirement to meet the best practicable means for containment. The Department of Health is responsible for licensing major industrial processes, and local authorities control smaller processes. All licensed premises are monitored to ensure they conform to the requirement for containment by meeting their licence conditions. Monitoring the quality of the surrounding air is also carried out by the Department of Health.

Clean air zones, which have been established for Christchurch city and surrounding urban areas, are made under the Clean Air Act when pollution is severe enough to require special controls on the emission of air pollutants. In Christchurch there is a particular problem with domestic coal smoke, and the Act provides for control of domestic heating appliances and the granting of financial assistance for electrical space and water heating to reduce domestic smoke emissions from coal burning.

Control of medicines

The Medicines Act 1981 and the Medicines Regulations 1984 came into force on 1 August 1984. In general they cover the controls over therapeutic substances that were in the Restricted Drugs Act 1960 and its Regulations (previously known as the Poisons Act and Regulations) and the Food and Drug Act 1969 and Regulations.

Any substance or article, other than a medical device, which is intended wholly or principally for administration to humans for a therapeutic purpose or which is a pregnancy test, is a medicine. Any food, cosmetic or dentrifice (tooth powder or paste) which is claimed to be effective for a therapeutic purpose is considered to be a related product. Both new medicines and new related products require the consent of the Minister of Health to their distribution before they can be marketed. This consent is only given when satisfactory evidence of the safety, effectiveness and quality of the product has been provided.

Any material change in a medicine or a related product has to be notified to the Director-General of Health and the changed product must not be distributed until 90 days have elapsed from the notification or until the Director-General signifies consent.

Medicines are either classified as Prescription Medicines, Restriction Medicines (for sale by a pharmacist personally) and Pharmacy Only Medicines, or are considered as safe for general sale.

The advertising and labelling of medicines, related products and methods of treatment; the standards of manufacture, packing and storing of medicines, related products and cosmetics; and the prescribing and dispensing of medicines are all controlled by the Medicines legislation. Licences are required for manufacturers and others dealing with medicines. Any refusal of a licence can be appealed to the Medicines Review Committee, which may also enquire into an objection to any committee's recommendation that the Minister of Health refuse to consent to the distribution of a new medicine.

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 obtaining, 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.

Illegal dealing in controlled drugs is subject to heavy penalties.

To curb drug abuse, the Departments of Health, Customs and Police jointly set up a National Drug Intelligence Bureau in 1972.

Food and nutrition

The Food Act provides for the analysis, by analysts appointed under the Act, of any articles of food or drink which may be sold, offered for sale or exposed for sale, and for the inspection of any place where there is any food intended for sale. Stringent measures are provided for the prevention of adulteration and for the inspection of places where food is manufactured or packed. Regulations lay down minimum standards for many classes of food, control additives of all kinds and deal with labelling of food packages. Control is also established over all utensils and appliances coming into contact with food. Regular sampling of foods is undertaken by departmental inspectors and the samples are analysed in the Chemistry Division (DSIR) or its branch laboratories.

An important provision of the Act controls all kinds of publicity where a purchaser of any food would possibly be deceived about the properties of that food, whether or not it is standardised by regulations.

A Food Standards Committee meets regularly to discuss the latest technical advances in food production and to make recommendations for amendments to the legislation.

The nutrition section of the Department of Health provides advice 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 the 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 been directly responsible for occupational health within their own districts. The objective of the occupational health progammes is, in consultation with labour, management, the medical profession and other groups, to assist in maintaining and where possible improving the health of workers.

The Department of Labour, which is responsible for accident prevention, hours of work and employment of women and children, informs the Department of Health of any health problems which factory inspectors may encounter. The Health Act 1956 gives to medical officers of health or other authorised officers of the Department of Health the same powers and authority as inspectors of factories have under the health and welfare sections of the Factories and Commercial Premises Act 1981. The Department of Health supplies information and advice on occupational health and related matters, approves respirators for use when abrasive blasting or when working with asbestos, arranges for any necessary medical examinations and where necessary suspends workers where the work they are involved in is detrimental to their health.

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. There are 3 occupational health laboratories in Auckland, Wellington and Christchurch which investigate work hazards. Three teams of specialist doctors, nurses and scientists reinforce the usual staff available to medical officers of health to examine particular occupational health problems occurring in districts. These teams also study problems arising in industries such as forestry, which are to be found throughout the country.

Occupational diseases. 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 Toxic Substances Act 1979 and the Toxic Substances Regulations 1983.

The Toxic Substances Act and Regulations which came into effect on 1 August 1983 replaced provisions of the Poisons Act 1960 and Poisons Regulations 1964 which covered non-medicines.

Manufacturers, importers and packers must notify the Director of the Division of Public Health before manufacturing, importing or packing in New Zealand any toxic substance which they have not previously dealt with. This includes any toxic substance bearing a common name, chemical name or trade name which has not previously been distributed in New Zealand.

Control of health hazards. An increasing number of specific health hazards are formally controlled; asbestos; 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. Occupational health guidelines have been issued to monitor organophosphate pesticide users; and to protect workers in the following areas: aluminium; spraypainting; lead and electroplating industries.

Comparable guidelines for those who use formaldehyde and similar products at work are being prepared.

Medical and nursing services in industry. The Department of Health encourages industry to develop preventive medical and nursing services and many industries employ an occupational health nurse. In some areas the department's occupational health centres serve as a base for a preventive service to small industries, and in others, visiting occupational health nursing services are provided.

First aid. The statutory requirements concerning first aid in factories are set out in the Factories and Commercial Premises Act 198.1 (Section 45) and the Factories (First Aid) Regulations 1966. This legislation is administered by the Department of Labour. In industries where more than 50 people are employed, the person responsible for first aid must be either a registered nurse or the holder of a valid certificate of the St John's Ambulance or the New Zealand Red Cross Society.

National Acoustics Centre. The National Acoustics 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. Investigations into environmental noise are also undertaken by regional noise engineers.

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 licensed person.

The laboratory provides the licensees with free monitoring, advisory, calibration or other services which promote 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 on requirements for the transport and disposal of radioactive materials and is responsible for monitoring a wide range of environmental samples for natural or manufactured radioactivity.

Mental health

The Department of Health, hospital boards and other agencies are actively encouraging the growth of community-based mental health services. The decline over the last two decades in the population of psychiatric hospitals and hospitals for the intellectually handicapped has been made possible by the development of a spectrum of services including psychiatric units, day care centres, hostels, half-way houses, drop-in centres and community houses. The number of psychiatric units in general hospitals increased from 11 in 1974 to 16 in 1984. These units allow people to be treated in their own home towns and provide a variety of treatment possibilities including inpatient, out-patient and day patient services. The integration of mental health services with general services has also promoted the incorporation of a mental health perspective into general health issues.

The growth of community-based services and centres encourages public awareness and education on mental issues, helps to prevent serious psychological problems by using early identification and assistance and provides for the maintenance in the community of people with chronic disorders. The shift in focus from institutional to community-based services has characterised not only services for the emotionally troubled and mentally ill; but also those for intellectually handicapped people and substance abusers.

Family health

Medical practitioners give antenatal, neonatal, and post-natal attention under the Social Security Act. Free antenatal clinics are established in connection with all public maternity hospitals and maternity wards. Antenatal classes to prepare parents for the baby's arrival are also available, and doctors can refer patients to these to supplement their own instructions. In the case of women living far away from the main centres of population, antenatal 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, have general supervision over the work of these private hospitals in the local areas.

Family planning. Family planning advice can be obtained from general practitioners, private specialists, and from any one of the 40 clinics operated by the N.Z. Family Planning Association (Inc.) in various centres throughout the country. The Government provides a grant to meet the cost of salaries of doctors, nurses and clinical health assistants employed by the association in approved clinics.

The Government also provides a grant to the N.Z. Association of Natural Family Planning (Inc.) to meet the payment of the salary of the national co-ordinator, an initial 1-week residential training course for up to 70 teachers each year, and an annual 3-day training course for up to 100 teachers.

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

Child health. The Department of Health offers a preventive child health service. Babies are normally examined by family doctors at about 6 weeks of age and again at 9 months. Additional examinations are given whenever there is anxiety over physical, mental or emotional development. Public health nurses undertake supervision of some infants and pre-school children although the major proportion of this service is provided by the nurses of the Plunket Society. A comprehensive examination including vision and hearing testing by trained staff is recommended for all children between the ages of 3 and 4 years. When 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. Nursing staff make regular visits to all schools and, in consultation with teachers and parents, investigate children who appear to be in need of support and refer them if necessary for the appropriate services. All new entrants to school receive a health assessment and examination by the public health nurse. Parent participation is encouraged. Correspondence School children are kept under health supervision as necessary and any school child requiring treatment is referred to the appropriate family doctor. The vision and hearing tests for pre-school children arc repeated on school entry and in Form I. These tests are available on request to any child suspected of either defect. Vision tests are also carried out in secondary schools in Form IV.

The Government supports the Children's Health Camps Board which maintains 7 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 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. Immunisation, which is free, is usually done by the family doctor. The course of injections should be commenced as soon as possible from 6 weeks old. Protection against diphtheria, whooping cough and tetanus is a routine procedure and a triple vaccine is used at 6 weeks, 3 months and 5 months of age. Oral vaccine for poliomyelitis is also given at 3 months and 5 months. Arrangements can be made for mothers who do not have family doctors to attend with their children at departmental clinics. If necessary, in country areas the public health nurse will visit the home to immunise the child. Booster doses against diphtheria, tetanus and polio are given at 18 months, and an additional polio vaccine at 5 years of age. Further booster doses against tetanus only are given at 15 years of age and recommended at 20-yearly intervals. Measles (Morbilli) vaccination is available from family doctors for infants from 12 months of age onwards. Rubella vaccination is available from family doctors for women and girls in the childbearing age groups. Rubella immunisation is also offered to 11-year-old girls at school.

Health hazards and health education

It is becoming widely recognised that to a large extent our health is a direct result of how we live, work and interact with others and with our environment. In short, health is a result of how we behave.

Health education programmes of the Department of Health cover topics such as immunisation, hearing protection, healthy lifestyle and sexually transmitted diseases, which can be affected by positive health behaviour.

These programmes involve health education officers as planners and coordinators, who facilitate health education and health teaching in the district. Public health nurses, dental nurses, inspectors of health, medical and dental officers all devote some of their time to health education with community groups and schools in the districts.

The Health Education and Information Unit develops national health education programmes, including health education publicity on television, radio and in the press. Health information on many topics is produced into leaflets, information sheets and posters, which are available from district health offices and area health boards.

Health magazine is produced 4 times a year and is issued free on request to the public. It provides health information and publicises some of the department's work.

The audio-visual library has films and videos on many health topics, which are available to district health offices and area health boards.

Alcoholism. In New Zealand alcoholism rates as a major public health problem. There is no accurate measure of the number of alcoholics but experts in the field suggest that there are at least 53 000 chronic alcoholics, and that an average of 10 people (family friends, and working colleagues) are affected in each case. The figure for chronic alcoholics does not include all the heavy drinkers, drinking at a level shown to be associated with increased health risks such as increased risk of liver damage. At-risk male drinkers consuming 60 mls or more of alcohol per day are estimated to number over 160 000. The comparable figures for women are 40 mls or more of alcohol per day and an estimate of over 90 000 at-risk female drinkers.

Alcohol consumption for the year ended June 1985, in 750 ml bottles, was the equivalent of about 203 bottles of beer, 26 bottles of wine and 7 bottles of spirits for every person, including those who do not drink, or rarely drink, alcoholic beverages. Consumption of alcohol per person 15 years and over has increased by 30.8 percent during the last 20 years. Over this same period there have also been significant increases in rates per 100 000 population of alcohol-related illness such as admissions to psychiatric hospitals for alcoholism and deaths from alcoholic liver cirrhosis.

Table 7.2. ESTIMATED CONSUMPTION OF ABSOLUTE ALCOHOL PER HEAD OF MEAN POPULATION AGED 15 YEARS AND OVER

YearBeer*WineSpirits*TotalChange

* Prior to 1981, for year ended December. From 1981 onwards, for year ended June.

† Prior to 1971, for year ended December. From 1971 onwards, for year ended June.

‡ From 1981, figures for New Zealand produced whiskey were excluded by the Department of Statistics.

§ Change over a full year for wine, but only over half a year for beer and spirits.

|| 1983 and later data is not directly comparable with earlier data because of improvements in calculating the absolute alcohol consumed from wine and a changed method of estimating beer consumption.

 litres%
19555.750.341.807.89..
19605.950.441.507.89..
19656.190.571.808.56..
19706.861.161.579.59..
19757.191.722.4911.41..
19766.781.932.7611.47+0.6
19776.871.852.7511.470.0
19787.082.252.7412.08+ 5.3
19796.532.182.8811.59-4.0
19806.622.552.6311.80+1.8
19816.532.772.4611.76-0.3§
19826.552.512.7811.84+0.6
19836.16||2.21||2.2210.58-10.6||
19846.252.352.2910.89+2.8
19856.102.352.2710.72-1.8

The Alcoholic Liquor Advisory Council has carried out surveys on the drinking habits and attitudes to alcohol of 10 000 adult New Zealanders, and the extent of (and attitudes to) alcohol use among 3000 school pupils. The findings of both surveys have been analysed and published. The council has also established a multi-disciplinary alcohol research unit in association with the Medical Research Council and the University of Auckland School of Medicine, and has supported independent research projects. It has established an alcoholism counsellor training course which has produced 90 graduates, and it has helped hospital boards set up 20 basic assesment and treatment facilities.

In association with the Department of Education the council has developed a Health Education Resources Project. This has now provided several kits of resource material on alcohol-related matters for use in secondary schools. Financial assistance and advice has been given to a wide range of voluntary agencies working in alcohol-related fields; and a library and information resource centre has been established to provide pamphlets, posters, and films. The council has also interested over 120 firms and organisations in developing programmes in industry for the treatment of alcohol problems. Handbooks have been developed for doctors and paramedical counsellors, and a series of education and awareness programmes has been promoted through T.V., radio, magazines and newspapers. When applicable, the council has provided advice and statistical data to the Government, government departments, and other agencies on control policies, treatment methods and facilities, and other alcohol-related matters. In October 1983 the council launched a major policy document entitled Living with Alcohol-Preventing Misuse which indicates future directions in reducing alcohol abuse and misuse.

In 1985 ALAC for the first time entered the arena of sports sponsorship with its funding of the “Say When” World Cup Soccer Series.

Dental health

New Zealand's dental health service combines a school dental service for children, dental benefits for adolescents and private practice for adults. Major hospitals also provide dental services for inpatients and other special groups. There are 13 dental districts, 3 area health boards, a school for dental nurses in Wellington and the school of dentistry at the University of Otago.

School Dental Service. The objective of the service is to maintain a high standard of dental health of pre-school and school children by regular and systematic treatment at 6-monthly intervals, starting at the age of 2½ and continuing through the highest class at primary or intermediate school.

The school dental nurse, after completing the 2-year training course, is appointed to a school dental clinic where routine dental care for children is provided. Regular visits are made to the clinic by the Principal Dental Officer and Supervising Dental Nurse, who assist the dental nurse to maintain a high standard of performance in all aspects of the work. Five issues of the School Dental Service Gazette are published each year as a medium for continuing education.

The dental care involves examination, disease prevention measures, fillings in deciduous (first) and permanent teeth, extraction of deciduous teeth and dental health education. Some children are referred to dentists for additional care which is beyond the scope of the school dental nurses. The cost of such care is usually met as a special dental benefit. Orthodontic treatment and some other specialist services are not provided as part of school dental service or dental benefits programmes.

During the year ended 31 March 1985, 1005 school dental nurses provided dental care for 541 774 children. Indicators of the success of the service are the acceptance (71 percent of pre-school children aged 2½ to 5 and 95 percent of primary school children are enrolled), the reduction in the mean number of permanent teeth missing and filled to 3.4 and the increase in the percentage of children caries-free to 18.7.

Dental services for teenagers. Dental care for teenagers up to 16 years of age is provided by private dental practitioners as dental benefits 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 dental benefits to their eighteenth birthday.

Treatment is essentially of a nature designed to conserve the natural teeth. There is free choice of dentists, and dentists have the right to decline patients.

The 1984-85 figure for the number of children enrolled for general dental benefits is not available due to a change in administrative procedures. Private practitioners completed 373 052 treatments under the scheme during the year ended 31 March 1985.

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 on a wide range of dental problems. Further research is undertaken by the School of Dentistry at the University of Otago and there is also a 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. This represents approximately 53 percent of the population of New Zealand.

Rehabilitation of disabled civilians

The rehabilitation of disabled persons has received increasing emphasis over recent years in New Zealand. Public hospitals provide a medical rehabilitation service, with co-operation from Government and other agencies.

Rehabilitation centres for the treatment of the severely disabled are established at Otara in Auckland, at Palmerston North Hospital, and at the Queen Elizabeth Hospital in Rotorua. For the rehabilitation of persons suffering from spinal injuries, specialist spinal injury centres are provided at Auckland and Christchurch. Geriatric assessment and rehabilitation units have been established by a number of hospital boards. Rehabilitation activities are also carried out in the physical medicine departments of general hospitals, and in psychiatric and psychopaedic hospitals.

The Rehabilitation League is an 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 and Napier.

A Rehabilitation Co-ordinating Council, comprising senior representatives from the Departments of Labour, Social Welfare, Health, and Education, and the Accident Compensation Corporation, advises the Government on steps to co-ordinate and promote rehabilitation in New Zealand.

National Health Institute

The National Health institute is one of 3 science units of the Department of Health. It provides scientific support in microbiology and environmental chemistry for the Department's health promotion, health protection and occupational health programmes.

Its laboratories provide investigative, diagnostic and reference services for medical officers of health, hospitals, private laboratories and general practitioners. In addition the institute carries out surveillance and epidemiological studies for disease control.

The institute works internationally with the World Health Organisation and other national centres active in disease surveillance.

The Environmental Chemistry Section conducts studies on environmental and occupational health.

Monitoring of food, water and the environment for micro-organisms of public health significance is carried out by a Reference and Central Region Public Health Laboratory at the institute, and 5 regional laboratories.

The institute is the storage centre for the National Culture Collection of micro-organisms of medical or scientific importance and the National Serum Bank, a collection of sera historically representing the immune status of the population.

Health Services Research and Development Unit

The Health Services Research and Development Unit is a service group within the Department of Health with research and planning functions. The unit carries out, advises on and supports research on, health and health services and publicises the findings. These studies are designed:

  1. to improve the level of knowledge and understanding about health services, trends in health issues and the social and economic factors influencing health, and

  2. to provide an informed base for decision makers.

Contact is maintained with university and medical researchers; hospital managers and board members; ward, clinic and office staff and many others. The information is used to evaluate existing policies, to help in planning new policies and to increase understanding about health and health matters. Examples of current projects include:

  1. a survey of disabled people and their carers in the Wellington area;

  2. a review of the population-based funding formula for hospital boards;

  3. a community profile of the Hillview education and rehabilitation programmes;

  4. the health ideas of 15-19 year-olds;

  5. a report on the aged in institutional care;

  6. a study of the place of alcohol in the lives of older women;

  7. a study of Maori healing practices;

  8. a study identifying options for development of health services in the Horowhenua Hospital Board;

  9. a study of alternative health care—patterns, users and trends;

  10. bibliographic studies on women's health and health of the elderly.

Medical Research Council

The Medical Research Council is the major organisation supporting medical research in New Zealand, and acts as the central co-ordinating body. The council was established in December 1937 as a committee of the Department of Health. It became incorporated by the Medical Research Council Act 1950 as a body independent of the Government and has remained so, though it is largely financed by a Government grant. It can also receive bequests and donations.

The functions of the council are:

  1. To initiate, foster and support medical research;

  2. To give information, advice and assistance to persons and organisations concerned with medical research;

  3. To collect and distribute scientific information, including publishing reports.

The council supports research in its own units (virus, dental and toxicology groups) and through programmed project grants to research groups in universities and hospitals. It also awards scholarships, fellowships and travel grants to individuals and assists with the staging of scientific meetings. In 1985 the council supported the equivalent of about 370 full-time research workers. The financial resources available to the council in 1985 were $10.2 million. Support is currently being provided in most fields of medicine. The council's present priority research areas are respiratory disorders, health services, the health of Polynesian populations, paediatrics and child health, mental disorders, accidents, geriatric medicine and care of the aged, and health education and health promotion including behavioural factors in health and disease. The council has responsibility to maintain a balance in the research supported throughout New Zealand and maintains a close liaison with other medical research funding bodies. It also represents the medical research community on other bodies and has links with overseas research funding organisations.

Health statistics

The National Health Statistics Centre is responsible for the collection, analysis and distribution of information about the health status of New Zealanders and the use of resources available for the delivery of health care. It maintains an active programme of liaison and communication with organisations and institutions both within and outside of New Zealand and acts as a focal point for the collection of new ideas and techniques to promote improvements in overall health standards.

Deaths by causes

The World Health Organisation's International Classification of Diseases recommends basing classification of deaths by causes on the concept of the underlying cause.

The certifier's statement largely determines the cause but to obtain more accurate data, reference is also made to all autopsy reports received, cancer case registrations, coroners' reports and hospital case summaries.

Medical practitioners certified 82 percent of deaths registered in 1983 and 18 percent were certified by coroners. Of the deaths certified by doctors, 12 percent were subject to autopsy compared with 99 percent of deaths certified by coroners. Overall, 28 percent of all deaths had autopsies performed.

New Zealand adopted the Ninth Revision of the World Health Organisation's International Classification of Diseases in 1979. As a result, care must be taken when comparing figures since 1979 with those for previous years.

Table 7.3. DEATHS BY CAUSES: NUMBERS AND RATE PER MILLION OF MEAN POPULATION

Cause of DeathNumber of DeathsRate per Million of Mean Population
198119821983198119821983

* Data which is not comparable with years prior to 1979 is due to introduction of 9th Revision of WHO International Classification of Diseases.

Source: National Health Statistics Centre.

Enteritis and other diarrhoeal diseases192117675
Tuberculosis of respiratory system19159653
Other tuberculosis including late effects30312410107
Infectious hepatitis131311443
Syphilis and its sequelae44111 
All other infective and parasitic diseases706876222124
Malignant neoplasm5,5885,7235,9371,7701,7981,841
Benign neoplasm and neoplasm of unspecified nature393232121010
Diseases of thyroid gland241314844
Diabetes mellitus388374369123118114
Avitaminoses and other nutritional deficiency659223
Anaemia33322610108
Alcoholic psychosis and alcoholism*2037266128
Meningitis252519886
Multiple sclerosis1933226107
Paralysis agitans617477192324
Epilepsy444445141414
Chronic rheumatic heart disease*128125135413942
Hypertensive disease291264264928382
Ischaemic heart disease7,1427,3017,1452,2622,2942,215
Other forms of heart disease*1,0431,0681,119330336347
Cerebrovascular disease2,9202,8062,937925882911
Diseases of arteries, arterioles, and capillaries623602619197189192
Acute respiratory infections including influenza6263105202033
Pneumonia9171,0661,275290335395
Bronchitis, emphysema, and asthma*790753742250237230
Other diseases of respiratory system*642720783203226243
Peptic ulcer145181162465750
Appendicitis746212
Intestinal obstruction and hernia796874252123
Cirrhosis of liver144140122464438
Diseases of gallbladder454147141315
Nephritis, nephrotic syndrome and nephrosis*174178197555661
Infections of kidney365743111813
Hyperplasia of prostate221823767
Complications of pregnancy, childbirth, and puerperium3710123
Rheumatoid arthritis514642161413
Congenital anomalies212212226676770
Birth injury, difficult labour, other anoxic and hypoxic conditions, and other causes of perinatal mortality173156168554952
All other diseases1,2711,2471,369403392424
Motor vehicle accidents707730647224229201
All other accidents730712600231224186
Suicide and self-inflicted injury320364352101114109
All other external causes687481222325
                Total25 14725 54726 0077 9658 0268 063

Heart disease, malignant neoplasms (cancer), and cerebrovascular disease were again the leading causes of death in 1983 (the latest year for which data are available). These 3 causes accounted for approximately 67 percent of all deaths in 1983: ischaemic heart disease accounted for 29 percent of deaths, malignant neoplasms for 22 percent, and cerebrovascular disease for approximately 11 percent.

Table 7.4. DEATH RATES FROM LEADING CAUSES OF DEATH: PER MILLION OF MEAN POPULATION

Cause of Death197319791980198119821983
Source: National Health Statistics Centre.
Deaths per million
All heart disease2,6302,7812,8452,6992,7302,667
Malignant neoplasms (cancer)1,6651,7171,7451,7701,7981,841
Cerebrovascular disease9579691009925882911
Accidental causes457483522455453387
Pneumonia343329353290335395

Heart disease. Heart disease as a group of diseases is still the leading cause of death in New Zealand. The standardised mortality ratios for all forms of heart disease show that between 1970 and 1983 rates for males have fallen by 21 percent and rates for females have fallen by 22 percent.

Table 7.5. HEART DISEASE: NUMBERS OF DEATHS AND STANDARDISED MORTALITY RATIOS

YearAll Forms of Heart Disease*
MalesFemales
NumberStandardised Mortality RatioNumberStandardised Mortality Ratio

* Excludes acute reheumatic forms and congential malformations.

† Base years 1950-52 = 100.

Source: National Health Statistics Centre.

19704,886993,40572
19754,845923,31564
19805,039863,86864
19814,890813,63158
19824,965833,72457
19834,892783,71256

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.

Cancer. In New Zealand 1 death in 4 in 1983 was caused by cancer. The cancer crude death rate has increased over the latest 5 years for which figures are available from 171.7 per 100 000 population in 1979 to 184.1 in 1983.

A detailed report on cancer mortality and morbidity in New Zealand is published annually by the National Health Statistics Centre of the Department of Health. The report covers mortality from cancer and also surveys all cases reported to the National Cancer Registry.

Table 7.6. DEATHS FROM CANCER: NUMBERS, CRUDE RATES AND STANDARDISED MORTALITY RATIOS

YearNumber of Deaths from CancerCrude Death Rate per 100 000Standardised Mortality Ratios*Number of Deaths from CancerCrude Death Rate per 100 000Standardised Mortality Ratios*

* Base years 1950-52 = 100.

Source: National Health Statistics Centre.

 MalesFemales
19601,724144.31011,566132.592
19702,436173.01262,024143.599
19752,726176.91292,281147.6101
19802,952188.91282,513160.2103
19813,061195.01302,527159.2100
19823,076194.51292,647165.3103
19833,166197.51302,771170.8106

Ninety-two percent of deaths from cancer during 1983 were at 45 years of age or above, and 61 percent were at 65 years of age or above.

Table 7.7. DEATHS FROM CANCER: BY AGE AND SEX 1983

Age Groups, in YearsDeaths of MalesDeaths of Females
NumbersRate per 100 000 of Population at Ages GivenPercentage of Total Deaths at Ages GivenNumbersRate per 100 000 of Population at Ages GivenPercentage of Total Deaths at Ages Given

Source: National Health Statistics Centre.

Under 51511.63.554.11.5
5-14217.120.4196.827.9
15-24227.34.63211.017.6
25-4414331.819.819443.042.7
45-64996341.330.6866298.546.3
65 and over19691 442.721.91,655880.618.2
                All ages3 166197.522.62 771170.823.1

Cancer of the lung continues to be the major site in male deaths from cancer. Seven percent of all male deaths in 1983 were caused by lung cancer. Breast is the major cancer site in females and accounted for 4 percent of all female deaths.

Table 7.8. DEATHS FROM CANCER: BY SEX AND SELECTED SITES

SiteSexNumbersRates per Million Mean Population
198119821983198119821983

Source: National Health Statistics Centre.

Buccal cavity and pharynxM688064435140
F243224152015
OesophagusM8610177556448
F435255273234
StomachM227231195145146122
F133133156848396
Large intestineM258254296164161185
F346366360218229222
RectumM1541661479810592
F119106112756669
Bronchus, trachea, and lungM889844948566534591
F298298291188186179
BreastM344232
F478524537301327331
Cervix uteriF9511090606955
Corpus uteriF426157263835
Ovary, fallopian tube, and broad ligamentF1391511648894101
ProstateM293289325187183203
Bladder and other urinary organsM193166160123105100
F566980354349
Skin, all formsM9910698636761
F547260344537
BrainM849396545960
F724460452737
Lymphosarcoma and reticulum-cellsarcomaM343431222219
F403131251919
LeukaemiaM11894122755976
F8071102504463
All other and unspecified sitesM555614603354388376
F508527592320329365
                Total cancer deathsM3 0613 0763 1661 9501 9451 975
F2 5272 6472 7711 5921 6531 708

Cerebrovascular disease. Cerebrovascular disease, the third of the principal causes of death in New Zealand, affects mainly the late-middle-aged and the elderly. In 1983, 2937 persons died of the disease. Of these, only 94 were below 50 years of age.

The World Health Organisation defines cerebrovascular disease as follows:

“Cerebrovascular diseases are diseases of the central nervous system (the brain and spinal cord) of vascular origin. The term covers a wide range of clinical manifestations, varying from subarachnoid haemorrhage resulting from a rupture of Berry aneurysm on the one hand to arteriosclerotic Parkinsonism and dementia on the other.”

After reaching a peak in 1972 the death rate from cerebrovascular disease has generally declined. The 1982 rate of 882 per million of mean population was a record low rate.

Table 7.9. DEATHS FROM CEREBROVASCULAR DISEASE: NUMBERS AND RATES OVER TIME

YearDeathsRate*

* Rate per million of mean population.

Source: National Health Statistics Centre.

19683,1101,128
19693,0701,104
19703,2131,140
19713,3101,156
19723,4471,182
19733,5131,179
19743,4581,136
19753,2351,048
19763,074986
19773,1621,011
19782,995957
19793,027969
19803,1581,009
19812,920925
19822,806882
19832,937911

Infant and perinatal mortality. An infant death is defined as a live-born infant dying before the first year of life is completed. A neonatal death is defined as the death of a live-born infant before the 28th day of life; a post-neonatal death as the death of a live-born infant between the 28th day and the first year of life.

Perinatal mortality. Perinatal deaths consist of still births and deaths in the first week of life. The late fetal death (still births) and the perinatal mortality rate are calculated per 1000 total births (stillbirths plus live births), while the death rate for neonatal and infant death is calculated per 1000 live births.

Table 7.10. PERINATAL MORTALITY: NUMBERS AND RATES FOR MAORI AND NON-MAORI POPULATION

Deaths 1983MaoriNon- MaoriTotal Population
No.RateNo.RateNo.Rate

Source: National Health Statistics Centre

Late fetal406.32405.42805.5
Early neonatal335.32014.52344.6
Perinatal7311.64419.951410.1
Neonatal436.92535.72965.9
Post neonatal8012.82736.23537.0
Infant12319.652611.964912.9

In a review of neonatal and postnatal deaths, issued by Department of Health in November 1976, it was shown that 8 countries, selected on the basis of their having one million or more population and on their reporting of data regarded by World Health Organisation as complete, had a lower mortality rate than New Zealand. These 8 were Sweden, Finland, Japan, Denmark, the Netherlands, Norway, France and Switzerland.

Table 7.11. INFANT MORTALITY RATES: SELECTED COUNTRIES AND DEATHS PER 1000 LIVE BIRTHS

CountryYearAge of Child
Under 1 YearUnder 1 Day1 and Under 7 Days7 and Under 28 Days1 Month and Under 1 Year

Sources: World Health Statistics Annual 1984 and 1985; Deaths. Australian Bureau of Statistics 1983; Childhood Mortality Statistics, England and Wales 1983.

 Deaths per 1000 Live Births
Australia19839.63.51.51.03.6
Denmark19828.22.11.51.23.4
England and Wales198310.12.62.11.24.3
Netherlands19838.41.92.41.03.1
Norway19837.92.51.40.93.1
Sweden19837.01.52.10.92.5
New Zealand198312.93.01.71.27.0

Causes of infant mortality.

Table 7.12. INFANT MORTALITY BY PRINCIPAL CAUSES: NUMBERS AND RATES FOR MAORI AND NON-MAORI POPULATION, 1983

Cause of DeathMaoriSon-MaoriTotal Population
Number of DeathsRate Per 1000 Live BirthsNumber of DeathsRate Per 1000 Live BirthsNumber of DeathsRate Per 1000 Live Births

* Excludes 29 sudden infant deaths (9 Maori and 20 non-Maori) where another condition was also present at time of death and in accordance with WHO ICD coding rules, death was classified to that other condition.

Source: National Health Statistics Centre.

Infectious and parasitic diseases40.640.180.2
Malignant neoplasms--30.130.1
Diseases of the nervous system20.360.180.2
Diseases of the circulatory system20.340.160.1
Diseases of the respiratory system203.2400.9601.2
Diseases of the digestive system10.250.160.1
Congenital anomalies152.41383.11533.0
Perinatal causes—
    Birth injury--100.2100.2
    Hyaline membrane disease61.0300.7360.7
Other anoxic and hypoxic conditions30.5130.3160.3
    Immaturity50.8260.6310.6
    Other perinatal causes152.4571.3721.4
Sudden infant death syndrome*426.71743.92164.3
Accidents, poisonings, and violence (external causes)40.6120.3160.3
Remainder (all other causes)40.640.180.2
                Total, all infant deaths under one year12319.652611.964912.9

The data for infants shown in Table 7.12 are not strictly comparable with those for years prior to 1979. The adoption in 1979 of the Ninth Revision of the WHO International Classification of Diseases has influenced coding practices. The main changes include a re-assignment of infectious and respiratory diseases from their specific categories into that of “Other perinatal causes” and an internal restructuring of the whole perinatal area. This latter modification is related to the recommendation by WHO of a restyled Medical Certificate of Causes of Fetal and Neonatal Death which was adopted by New Zealand in 1978. This allowed a dual emphasis on both the main disease or condition in the fetus or infant and on the main maternal disease or condition affecting the fetus or infant. In Table 7.12, the cause of death has been selected according to the main disease affecting the neonate.

Another change which is related to the use of the Ninth Revision is that there is now a specific code for sudden infant death syndrome.

Maternal deaths

The New Zealand Maternal Mortality Research Amendment Act of 1979, which replaced the Maternal Mortality Research Act of 1968, defines a maternal death as:

  1. A death that occurs during pregnancy or within a period of 3 months after the date of the conclusion of a pregnancy;

  2. A death of a woman who at the time of her death was suffering from chorionepithelioma or hydatidiform mole.

This definition is for national use only and covers a wider range of cases than the maternal mortality definition recommended by the World Health Organisation. Maternal deaths from complications of pregnancy, childbirth and the puerperium numbered 10 in 1983, with a rate of 2.0 per 10 000 live births.

Maternal deaths occurring during pregnancy or within 3 months of delivery but not due to complications of pregnancy or childbirth or the puerperium numbered 7 in 1983 with a rate of 1.4 per 10 000 live births.

Further statistics on causes of death are found in chapter 10 Public safety and accident compensation. For general health statistics see section 7.3 Hospitals.

7.3 Hospitals

Hospital administration

The Hospitals Act 1957 and the Area Health Boards Act 1983 require the Minister of Health to ensure the provision and maintenance by hospital boards and area health 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 staff to be employed, the appropriate annual financial grants, 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 26 hospital boards, 3 area health boards and 173 private hospitals.

Since 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 partial payment from the Government for hospital treatment of patients; additional fees may be claimed from the patients. Hospital and home nursing services involve the Department of Health in establishing and helping to maintain minimum standards of nursing service in institutions such as general hospitals and homes for the aged; in advising, inspecting and reporting on such services in hospitals; and in general advising the Minister on nursing.

Advisory boards, committees and councils play a most valuable part in helping to set down health policies and programmes, and in certain cases, in administering policies or programmes developed 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 nondepartmental 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.

Hospital accommodation

Public hospitals.

Table 7.13. NUMBER OF BEDS IN PUBLIC INSTITUTIONS AND AVERAGE NUMBER OCCUPIED DURING YEAR. 31 MARCH 1985

Type of BedBeds AvailableAverage Number of Occupied Beds per Day
NumberProportion per 1000 of PopulationNumberProportion per 1000 of Population

Source: National Health Statistics Centre.

General14,2214.311,2213.4
Maternity2,1210.61,1680.4
Psychiatric and psychopaedic8,1432.56,9062.1
         Total hospital beds24 4857.419 2955.9
Non-hospital beds8700.37780.2
                Total25 3557.720 0736.1

In addition to the 25 355 beds in public institutions at 31 March 1985, there were 5918 beds in the 175 licensed private hospitals. If the beds in licensed private hospitals are included, the number of general beds per 1000 of population becomes 6.1.

A total of 442 129 inpatient and longstay admissions to public hospitals was recorded for the year ended 31 March 1985. This figure, which included persons in surgical, medical, maternity, psychiatric and non-hospital beds in old people's homes, was equivalent to 13.4 percent of the population. The 1982-83 figure was 428 369 and the 1983-84 figure was 434 123.

Outpatient and daypatient attendances (excluding x-ray, laboratory and pharmacy diagnostic services) at public hospitals totalled 4 375 278 and 315 658 respectively for the year ended 31 March 1985, compared with 4 285 130 and 313 036 for the previous year.

As at 31 March 1985 there were 46 502 names on waiting lists for admission to public hospitals. This compares with 42 972 on waiting lists at 31 March 1984.

Private hospitals. At 31 March 1985 there were 175 licensed private hospitals, providing a total of 5918 beds.

Table 7.14. PRIVATE HOSPITALS BY TYPE, NUMBER AND NUMBER OF BEDS*

Type of HospitalNumber of HospitalsLicensed Beds
198319841985198319841985

* As at 31 March.

† Includes 2 hospitals with geriatric beds.

‡ Includes 1 hospital with medical beds already included with medical-geriatric hospitals.

Source: National Health Statistics Centre.

Maternity553302519
Medical and surgical3333171 3991 397641
Medical, surgical and/or geriatric1321321534,1244,2695,119
Maternity, medical, and surgical111102102102
Psychiatric/geriatric331454537
                    Total1731731755 7005 8385 918

The Government assists private hospitals by providing loans for new hospitals and the upgrading and extension of existing hospitals. Amounts paid under this scheme during the last 3 years were as follows: 1983-84, $24,260; 1984-85, $177,000; 1985-86, $140,000.

Staff

Table 7.15. NUMBERS OF STAFF EMPLOYED BY HOSPITAL BOARDS AND IN HOSPITALS UNDER THE CONTROL OF THE DEPARTMENT OF HEALTH

Category of StaffAs at 31 March*
1982198319841985

* All figures based on full-time equivalents.

† Includes managers and supervisors.

Source: National Health Statistics Centre.

Medical2 465.92 560.42 632.02 588.3
Dietitians147.4134.1142.9150.5
Laboratory technologists616.8531.9549.8576.8
Occupational therapists376.2399.1423.7406.6
Physiotherapists535.7515.6520.6525.2
Radiographers433.0440.4496.8537.6
Hospital scientific officers67.694.886.3103.1
Social workers452.9471.9497.3518.8
Other staff (professional and technical)2 588.72 757.72 862.0x2 859.8
Nursing staff (qualified)13 672.614 570.615 578.716 103.4
Nursing staff (unqualified)4 225.53 942.43 664.13 439.0
Nursing students4 815.03 986.93 389.82 626.6
Students, other632.6615.8663.3629.8
Administration and clerical staff5 683.05 727.6†5 711.6x5 737.7
Other12 643.712 092.211 605.3x11 509.4
                  Total49 356.648 841.448 824.2x48 312.6

Hospital finance

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 salary and wage rates and prices. Additional grants are made, when necessary, for general wage increases which may be approved after the basic allocation has been made. In general, major works are financed by loans raised by hospital boards, interest and principal repayments being met by Government grants.

Table 7.16. HOSPITAL BOARD LOANS

YearAmount UpliftedRepayment*Balance Owing

* Includes payments from sinking funds.

Source: Department of Health.

 $(thousand)
1981-8241,99324,879471,832
1982-8354,11440,233486,014
1983-8466,11637,497513,057
1984-8566,46046,401535,628

Table 7.17. GRANTS TO HOSPITAL BOARDS

Grants to Hospital Boards1981-821982-831983-841984-85

Source: Department of Health.

Grants Allocated Directly$(thousand)
Operating grant—
    Salaries and wages744,960895,229911,797916,024
    Other operating203,030243,743250,859277,296
                  Total947,9901,138,9721,162,6561,193,320
Reserve for salary and wage increases115,54624,8601,50722,174
Loans—Repayments and payments into sinking fund29,94840,45740,90550,305
          Net interest44,46647,97452,15956,220
Community care—
    Health centres3178357422
    Equipment for national and regional specialty services....1,5951,399
Geriatric hospital patient assistance11,82513,84814,78317,236
Special capital5721,054....
Other items (including wheelchairs, hearing aids, orthopaedic implants)5671,414....
                  Total203,241129,690111,006147,756
                  Grand total1,151,2311,268,6621,273,6621,341,076

Psychiatric hospitals and hospitals for the intellectually handicapped

Under the Mental Health Act 1969 the control of psychiatric hospitals and hospitals for the intellectually handicapped (with the exception of Lake Alice Hospital, Marton, which continues to make national provision for security patients) was transferred from the Department of Health to local hospital boards from 1 April 1972. From 1 April 1978 the funding of these hospitals was fully integrated with that of public hospitals. Separate data relating to the funding of psychiatric hospitals and hospitals for the intellectually handicapped are therefore no longer available.

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), discharges and deaths for all inpatients under psychiatric care. The report also presents information about psychiatric disorders in terms of age and sex, place of residence, race and length of stay.

Table 7.18. PSYCHIATRIC AND INTELLECTUALLY HANDICAPPED PATIENTS: ANNUAL AVERAGE NUMBERS AND RATES PER 100 000 MEAN POPULATION

YearPatients in Psychiatric Hospitals and Hospitals for the Intellectually HandicappedPatients in Psychiatric Units of Public Hospitals
Average Number ResidentRateAverage Number On Leave*RateAverage Number TotalRateAverage Number ResidentRate

* Refers only to committed and special patients.

Source: National Health Statistics Centre.

19787,619243.5180957.89,428301.32467.9
19797,487239.6183858.89,325298.52568.2
19807,321232.52,20269.99,523302.52487.9
19817,208227.02,26871.49,4762,9842497.8
19827,129224.02,35373.99,482297.92798.8
19836,927214.52,24669.59,173284.02969.2
19846,715205.62,06263.38,777269.42999.2

Maori admissions. Between 1981-84 the first admissions rate has increased by 18 percent.

Table 7.19. MAORI FIRST ADMISSIONS TO PSYCHIATRIC HOSPITALS, HOSPITALS FOR THE INTELLECTUALLY HANDICAPPED AND PSYCHIATRIC UNITS OF PUBLIC HOSPITALS

YearNumber of First AdmissionsCrude Rate per 100 000 Mean Maori Population*

* People of half or more Maori ancestry.

Source: National Health Statistics Centre.

1981460164
1982577204
1983557194
1934579199

Although Table 7.19 gives a valid measurement of changes in the Maori first admissions rate, it would be misleading to compare these rates with those for non-Maoris without making allowances for differences in the age-structure of the 2 populations. Table 7.20 shows the age-specific rates per 100 000 mean population for Maori and non-Maori first admissions.

Table 7.20. AGE-SPECIFIC RATES OF ADMISSION TO PSYCHIATRIC HOSPITALS: MAORI AND NON-MAORI FIRST ADMISSIONS PER 100 000 MEAN POPULATION

YearAges
0-910-1920-2930-3940-4950-5960 and Over

Source: National Health Statistics Centre.

1981—
    Maori29149311287190116119
    Non-Maori23100214164146151191
1982—
    Maori28166441326203146178
    Non-Maori19104227162154141194
1983—
    Maori17168411324145162145
    Non-Maori19102211162140122193
1984—
    Maori1616843332019090115
    Non-Maori2390205147136119146

All admissions. The total number for all admissions to psychiatric care during 1984 was 14 381. This total was made up of 4265 first admissions, and 10 116 readmissions. Included in the readmission figure are 1678 patients replaced from leave. This last category applies only to people who may not discharge themselves, for example, special and committed patients.

The average number of occupied beds in psychiatric hospitals and intellectual handicap hospitals in 1984 was about 2.2 per thousand of population. This is the lowest figure recorded since 1877. The downward trend reflects advances in treatment and in more recent years the provision of alternative forms of psychiatric and intellectual handicap care.

During 1984, 85 percent of first admissions and 82 percent of readmissions were on an informal (voluntary) basis.

Discharges. All informal patients are discharged outright when they leave their hospital or unit. Committed patients may also be discharged outright or they may be given 'discharge on leave' which means that they are still legally committed and under the authority of the hospital. There is a further statistical category 'discharged not committed' which is equivalent to an outright discharge in that the patient is no longer legally under the authority of the hospital. The phrase simply indicates that although the patient entered hospital on a remand or 3 week basis, it was not found necessary to keep him or her for a longer period as a committed patient.

During 1984 there were 14 301 discharges from psychiatric and intellectual handicap hospitals, psychiatric units of public hospitals and Alcoholism and Drug Addiction Act institutions. Of these, 8485 were discharged from psychiatric hospitals, 492 from intellectual handicap hospitals, 4304 from public hospital psychiatric units, and 1020 from institutions licensed under the Alcoholism and Drug Addiction Act.

Almost 6 out of every 10 patients leaving hospital in 1984 had a stay of less than 30 days.

Table 7.21. DISCHARGES FROM PSYCHIATRIC HOSPITALS: CONDITION, TYPE. NUMBERS AND MEAN STAY 1984

 OutrightMean StayLeaveMean StayNot CommittedMean Stay
YearsDaysYearsDaysYearsDays

Source: National Health Statistics Centre.

Senile and presenile organic psychotic conditions171-3082733---
Alcoholic psychoses55-11720-140---
Drug psychoses49-198-841-8
Other organic psychotic conditions108-15628-2672-21
Schizophrenic psychoses1,558-901,141-16930-16
Affective psychoses1,851-49512-8210-17
Paranoid states93-2965-601-14
Other psychoses307-5078-1772-25
Neurotic depression and other depressive disorders1,612-3376-1116-29
Other neurotic disorders284-2910-452-17
Alcohol dependence or abuse2,572-52279-1559-19
Drug dependence or abuse218-4620-437-15
Other personality disorders965-62169-19742-17
Stress and adjustment reactions638-2913-2084-34
Non-psychotic disorders of childhood and adolescence17-24------
Non-psychotic mental disorders following brain damage38110321-862-29
Conditions associated wih physical disorders20-22------
Mental retardation673133220421105-18
No psychiatric diagnosis210-135-7663-18
              Total11 439-962 676-208186-18

Diagnoses. The two leading short list diagnostic reasons for entering inpatient care for all admissions were alcohol dependence and abuse (2813) and schizophrenic psychoses (2682).

Table 7.22. PSYCHIATRIC HOSPITAL DIAGNOSES: NUMBERS OF FIRST ADMISSIONS, READMISSIONS AND REPLACEMENTS FROM LEAVE DURING 1984

DiagnosisTotalsFirst AdmissionsReadmissionsReplacements

Source: National Health Statistics Centre.

Senile and presenile organic psychotic conditions339234969
Alcoholic psychoses84215112
Drug psychoses66302610
Other organic psychotic conditions123337218
Schizophrenic psychoses2,6822891,602791
Affective psychoses2,3554451,587323
Paranoid states164389333
Other psychoses42417122231
Neurotic depression and other depressive disorders1,79877598142
Other neurotic disorders3021421564
Alcohol dependence or abuse2,8139631,746104
Drug dependence or abuse2521021419
Other personality disorders1,088364624100
Stress and adjustment reactions6253642565
Non-psychotic disorders of childhood and adolescence1717--
Non-psychotic mental disorders following brain damage61203011
Conditions associated with physical disorders862-
Mental retardation86094590176
No psychiatric diagnoses320157163-
                  All cases14 3814 2658 4381 678

Deaths. In 1984 there were 336 deaths in psychiatric and intellectual handicap hospitals, psychiatric units of public hospitals and institutions licensed under the Alcoholism and Drug Addiction Act, compared with 412 in 1983.

Public hospital patients

Principal diseases and disabilities. Detailed statistical information is supplied to the Department of Health about all patients discharged from or dying in public hospitals in New Zealand.

The following summary shows the principal diseases and injuries treated in public hospitals in 1984, together with average days stay and conditions as a percentage of total cases. The disease headings are the subtitles of the International Classification of Diseases.

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 condition for which the patient was admitted, regardless of what other unrelated diseases may have been present or developed during the stay in hospital.

Table 7.23. DISEASES AND DISABILITIES TREATED IN PUBLIC HOSPITALS DURING 1984 (INCLUDES READMISSIONS)

Disease or DisabilityTotal Discharges or Deaths in Public HospitalsPercentage of All CasesAverage Stay (Days)

Source: National Health Statistics Centre.

Intestinal infectious diseases3,9340.94.3
Tuberculosis4100.124.6
Zoonotic bacterial diseases29..21.5
Other bacterial diseases5010.117.4
Poliomyelitis and other non-arthropod-borne diseases of central nervous system3690.16.0
Viral diseases accompanied by exanthema7470.28.6
Arthropod-borne viral diseases1..4.0
Other diseases due to viruses and chlamdiae2,0580.53.6
Rickettsioses and other arthropod-borne diseases48..3.5
Syphilis and other venereal diseases172..6.7
Other spirochaetal diseases72..5.3
Mycoses86..11.2
Helminthiases70..10.0
Other infectious and parasitic diseases1940.17.3
Late effects of infectious and parasitic diseases60..151.4
Malignant neoplasm of lip, oral cavity, and pharynx5320.113.6
Malignant neoplasm of digestive organs and peritoneum3,8890.918.9
Malignant neoplasm of respiratory and intrathoracic organs3,4870.812.0
Malignant neoplasm of bone, connective tissue, skin, and breast3,9870.910.8
Malignant neoplasm of genito-urinary organs4,5421.111.9
Malignant neoplasm of other and unspecified sites4,5091.114.2
Neoplasms of lymphatic and haematopoietic tissue2,8660.710.8
Benign neoplasms4,1541.06.1
Carcinoma in situ8030.24.2
Neoplasms of uncertain behaviour4580.111.1
Neoplasm of unspecified nature142..17.7
Disorders of thyroid gland6160.110.6
Diseases of other endocrine glands3,7120.918.7
Nutritional deficiencies63..25.3
Other metabolic disorders and immunity disorders1,3430.311.7
Diseases of blood and blood-forming organs2,4810.67.5
Organic psychotic conditions1,3160.3125.9
Other psychoses2,8330.736.1
Neuroses, personality and other non-psychotic mental disorders5,3621.316.0
Mental retardation85..60.7
Inflammatory diseases of central nervous system3750.117.5
Hereditary and degenerative diseases of central nervous system1,3130.3100.3
Other disorders of central nervous system3,0990.724.1
Disorders of the peripheral nervous system1,5600.49.7
Disorders of the eye and adnexa6,2961.55.9
Diseases of the ear and mastoid process5,4851.33.4
Acute rheumatic fever161..20.9
Chronic rheumatic heart disease5260.113.4
Hypertensive disease1,0750.311.0
Ischaemic heart disease13,3323.111.3
Diseases of the pulmonary circulation5270.117.2
Other forms of heart disease8,0341.915.9
Cerebrovascular disease7,3891.765.6
Diseases of arteries, arterioles and capillaries3,6460.923.0
Diseases of veins and lymphatics, and other diseases of circulatory system5,7051.38.3
Acute respiratory infections5,0571.23.6
Other diseases of the upper respiratory tract7,0711.72.9
Pneumonia influenza5,0531.219.5
Chronic obstructive pulmonary disease and allied conditions15,9973.78.1
Pneumoconioses and other lung diseases due to external agents55..9.3
Other diseases of respiratory system1,9610.510.2
Diseases of oral cavity, salivary glands, and jaws2,7470.62.3
Diseases of oesophagus, stomach, and duodenum4,9861.26.9
Appendicitis4,7511.15.5
Hernia of abdominal cavity4,8581.15.4
Non infective enteritis and colitis9100.212.6
Other diseases of intestine and peritoneum6,0431.48.7
Other diseases of digestive system5,9181.410.3
Nephritis, nephrotic syndrome and nephrosis1,5670.414.7
Other diseases of urinary system5,3121.27.1
Diseases of male genital organs4,0350.96.3
Disorders of breast1,8220.43.0
Inflammatory disease of female pelvic organs2,8920.74.1
Other disorders of female genital tract12,3182.94.5
Pregnancy with abortive outcome8,5102.02.1
Complications mainly related to pregnancy16,3943.86.6
Normal delivery/indications for care-pregnancy/labour/delivery35,2388.26.2
Complications occurring mainly in labour and delivery11,7192.76.1
Complications of the puerperium4270.16.0
Infections of skin and subcutaneous tissue3,1910.77.1
Other inflammatory conditions of skin and subcutaneous tissue9760.211.0
Other diseases of skin and subcutaneous tissue1,7790.49.8
Arthropathies and related disorders7,5331.819.7
Dorsopathies4,3841.010.6
Rheumatism excluding the back3,3190.85.0
Osteopathies, chondropathies, and acquired m/skeletal deformities2,6600.613.7
Congenital anomalies6,5401.58.6
Certain conditions originating in the perinatal period8,1581.99.8
Symptoms22,2745.25.1
Non-specific abnormal findings2900.14.7
Ill-defined and unknown causes of morbidity and mortality6250.2115.1
Fracture of skull2,9570.78.5
Fracture of spine and trunk2,2170.519.6
Fracture of upper limb4,7331.15.0
Fracture of lower limb8,3632.025.4
Dislocation1,0760.35.2
Sprains and strains of joints and adjacent muscles1,6830.44.9
Intracranial Injury (excluding those with skull fracture)8,8562.13.5
Internal injury of chest, abdomen, and pelvis1,1230.311.2
Open wound of head, neck, and trunk1,9170.53.8
Open wound of upper limb2,7080.63.7
Open wound of lower limb1,9980.58.6
Injury to blood vessels57..13.5
Late effects of injuries, poisonings, and other external causes4,6021.115.2
Superficial injury4470.15.3
Contusion with intact skin surface2,4470.64.8
Crushing injury1990.16.4
Effects of foreign body entering through orifice8860.22.1
Burns1,4880.412.8
Injury to nerves and spinal cord2830.14.8
Certain traumatic complications and unspecified injuries2250.15.2
Poisoning by drugs, medicaments, and biological substances2,9500.73.4
Toxic effect of substances chiefly non-medicinal as to source8570.22.5
Other and unspecified effects of external causes5450.15.6
Complications, surgical and medical care not elsewhere classified3,6940.911.1
Supplementary classification31,6467.46.2
                All conditions429 745100.010.6

Length of stay in public hospitals. The average length of stay in public hospitals in 1984 was 10.6 days. Among sufferers from specified diseases, the longest average stays were made by those with mental disorders (37 days) followed by patterns with circulatory disease (23 days) and endocrine and nutritional disorders including diabetes (16 days).

Accident cases.

Table 7.24. ACCIDENT CASES TREATED AS INPATIENTS IN PUBLIC HOSPITALS (INCLUDING READMISSIONS) 1984

Type of AccidentTotal CasesPercentage of All Accident CasesAverage Stay (Days)Aggregate Stay (Days)Aggregate Stay as Percentage of Total

Source: National Health Statistics Centre.

Transport—
    Railway300.112.43720.1
    Motor-vehicle traffic10 59.417.311.5121,37617.7
    Motor-vehicle non-traffic7571.27.25,4810.8
    Other road vehicles2,3663.94.510,6831.6
    Water1920.37.71,4820.2
    Air and space1110.213.51,4970.2
Vehicle accidents not elsewhere classifiable6..3.72.2..
                  Total transport14 05623.010.0140 91320.6
Non-transport—
    Accidental poisoning1,3002.11.92,4260.4
    Accidental falls14,57623.817.8260,00238.0
Surgical and medical complications and misadventures6,68810.915.2101,29914.8
Late effects of accidental injury4,1666.815.163,0259.2
Adverse effects of drugs, medicaments, and biological substances1,5072.511.917,9572.6
Suicide and self inflicted injury2,5294.15.714,4672.0
Homicide and injury purposely inflicted by other persons2,4834.13.99,7431.5
Legal intervention12..2.834..
Injury undetermined whether accidentally or purposely inflicted2220.45.51,2220.2
Injury resulting from operations of war3..3.711..
    Other accidents13,5982225.574,10910.8
                  Total non-transport47 08477.011.5541 43779.0
                  Grand total61 140100.011.2685 208100.0

The 2 largest groups come under the heading “Non-transport accidents”, “Accidental falls” being slightly higher than “Other accidents” which includes, for instance, accidents caused by cutting and piercing instruments, machinery, falling objects, fire and hot objects.

Victims of accidental falls also had the longest aggregate stay in hospital. This was because of the long period spent in hospital by elderly people who have sustained fractures of the femur in falls. More than 1 in every 4 patients had been injured in a fall of some kind.

Motor-vehicle traffic accidents comprised the third largest group and had the second largest aggregate stay. Traffic accidents on roads are analysed in tables in chapter 10 Public safety and accident compensation.

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 1984 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 the large numbers of home accident cases treated in outpatient departments, doctor's surgeries, and in the home itself.

Table 7.25. ACCIDENTS IN THE HOME: INPATIENTS IN PUBLIC HOSPITALS 1984

Cause of AccidentTotal PatientsAggregate Duration of Stay in Hospital (Days)

Source: National Health Statistics Centre.

Accidental poisoning by—
    Drugs and medicaments6091,159
    Petroleum products and other solvents162198
    Agricultural and horticultural preparations other than plant foods or fertilisers8198
    Noxious foodstuffs and poisonous plants5571
    Other solid and liquid substances2646
    Gases and vapours1326
Accidental falls6,212123,766
Struck by falling objects141940
Accidents caused by cutting and piercing instruments1,6756,293
Accidental burns93213,239
Accidents caused by foreign bodies6611,286
All other and unspecified accidents1,91710,434
                 Total12 484157 556

For further accident statistics, see chapter 10 Public safety and accident compensation.

Deaths in public hospitals.

Table 7.26. DEATHS IN PUBLIC HOSPITALS AS A PERCENTAGE OF ALL DEATHS

YearDeaths in Public HospitalsTotal DeathsPercentage of Deaths in Public Hospitals to Total Deaths

Source: National Health Statistics Centre.

197811,95824,66948.5
197911,95325,34047.2
198012,69326,67647.6
198111,84425,14747.1
198212,11925,54747.4
198312,31826,00747.4

Age and sex of patients.

Table 7.27. PATIENTS IN PUBLIC HOSPITALS: AGE AND SEX 1984

Age GroupMalesFemalesTotal

Source: National Health Statistics Centre.

0- 425,46018,50243,962
5- 910,1307,05317,183
10-148,8227,16015,982
15-1911,09718,75429,851
20-2411,71438,37550,089
25-298,56741,28949,856
30-347,40525,90433,309
35-396,81814,02720,845
40-446,2169,30515,521
45-495,8857,48613,371
50-547,9097,65915,568
55-5910,3467,98818,334
60-6411,0528,86619,918
65-6911,2049,49920,703
70-7412,15410,48422,638
75-799,4229,92919,351
80-845,8047,54113,345
85 and over3,2926,6279,919
     Total173 297256 448429 745

Abortion

Abortion is permitted in New Zealand by law in certain circumstances. The main elements are that the gestation of the pregnancy is not more than 20 weeks and that continuation of the pregnancy would result in serious danger (not being danger normally associated with childbirth) to the life, or to the physical or mental health of the woman or girl; or that there is a substantial risk that the child, if born, would be so physically or mentally abnormal as to be seriously handicapped. The Crimes Act 1961 (as amended) sets out when an abortion would be unlawful.

The Contraception, Sterilisation and Abortion Act 1977 sets out the referral procedure where a woman seeks an abortion. It also sets out the requirements when a case is determined. If, after consideration of a case, 2 specially appointed consultants both believe that the provisions of the law for a lawful abortion can be met, an authorising certificate can then be issued.

To supervise the workings of the abortion law a 3 member committee, known as thus Abortion Supervisory Committee, was established under the provisions of the Contraception, Sterilisation and Abortion Act 1977.

The committee has the responsibility to keep under review all the provisions of the abortion law in New Zealand, and the operation and effect of those provisions in practice. This includes licensing institutions for the performance of abortions, appointing certifying consultants to consider cases, and maintaining liaison with all those providing facilities, both public and private.

The committee has appointed Counselling Advisors to monitor the provision of counselling services for women seeking advice about their pregnancy and to keep it informed on the various issues.

The Abortion Supervisory Committee is directly responsible to Parliament, and reports each year.

Table 7.28. NUMBER OF WOMEN HAVING ABORTIONS ACCORDING TO AGE GROUP

Age Group198219831984
PercentageNumberPercentageNumberPercentageNumber

Source: Abortion Supervisory Committee.

11  ....  
121.2321.1820.782
13 17 10 6
14166 73 49
15 179 184 169
16 312 344 298
1726.8040925.9237423.79363
18 463 500 434
19 487 464 467
20-2430.192,08431.222,24730.602,226
25-2918.831,30019.591,41020.761,510
30-3412.9189112.6691113.65993
35-396.874746.404618.00582
40-442.851972.741972.17158
45 and over0.28190.29210.2518
Incomplete data0.043........
     Total100.006 903100.007 198100.007 275

Table 7.29. GROUNDS ON WHICH ABORTIONS WERE AUTHORISED

Grounds198219831984

* Includes abortions on the grounds of incest.

Source: Abortion Supervisory Committee.

Serious danger to physical health544829
Serious danger to mental health6,3056,2676,965
Combination of serious danger to physical and mental health470806174
Substantial risk of abnormal child516950
Incest....3
Offence under s. 131 Crimes Act7*5*1
Mother severely subnormal1631
Serious danger to mental health and risk of abnormal child....42
Serious danger to physical and mental health and substantial risk of abnormal child....4
Serious danger to mental health and offence under s. 131 Crimes Act....4
Serious danger to mental health and woman severely subnormal....2
                  Total6 9037 1987 275
Factors taken into account:   
    The age of the woman1,1181,0601,082
    Alleged rape615468
    Combination of the age of woman and alleged rape....10

NOTE: For 1984, the categories have been enlarged to include the 7 statutory grounds, and, where more than 1 ground was indicated, the combination of multiple grounds.

Table 7.30. ABORTION RATIOS*: NEW ZEALAND AND OTHER LOW FERTILITY COUNTRIES

CountryYearPer 100 Live Births*Per 100 Live Births* Plus Abortions

* The abortion ratio is normally calculated by relating abortions occurring in a given period to births occurring 6 months later to approximate the same cohort of conceptions. The ratio for 1984 was calculated by dividing the number of abortion notifications for the calendar year 1984 by the estimated number of births for the period 1 July 1984-30 June 1985. Since birth figures for the months April-June 1985, are not yet available, these were estimated using the quarterly data on births for the 1981-84 period as a guide. Because of the limitations inherent in the estimation procedure, the 1984 abortion ratio is provisional.

Source: Abortion Supervisory Committee.

New Zealand198314.2x12.4x
 198414.112.4
Canada198117.514.9
Czechoslovakia198246.531.8
Denmark198242.029.6
England and Wales198320.316.9
Finland198220.817.2
France198021.317.6
German Federal Republic198114.012.3
Hungary198260.637.7
Italy198034.225.5
Netherlands198311.310.1
Norway198127.121.3
Scotland198212.811.4
Sweden198235.326.1
United States of America198242.629.9

7.4 Social welfare system

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 all its members, but more particularly those who have personal, family or financial difficulties.

The New Zealand social welfare system has grown to meet local needs based on local experience, rather than according to social or political theories. Even the 1938 Social Security Act, 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, Maori Affairs and Internal Affairs.

The present system cannot be characterised according to any single principle, theory or formula. 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 or her tax contribution. While basically income-tested and selective as to need within classes of benefit, it is also universally applied without regard to other income or means in 3 main cases (national superannuation, family and medical benefits) and in the lesser miner's 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, miner's, national 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 some supplementary benefits are subject to tests of both income and assets.

  3. In paying national superannuation and family benefit without any tests of income or need it is assumed that for everybody over 60 years of age, and for all families with dependent children, a community-financed income supplement is necessary and desirable, irrespective of actual financial need or resources. Miner's benefit is not income tested, on the accepted assumption that if a person is disabled by disease arising from mining he or she 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 spouse and children of a beneficiary; and the taking into account of the income of the spouse (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 help themselves and to work. From the start, amounts payable from standard benefits have been set below the award wages of low-earner groups; and small incomes, and most property, have been disregarded in assessing an individual's benefit. Conversely, national superannuation for people over 60 years, and the benefits for widows and domestic purposes beneficiaries 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 and 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.

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 and Part III 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; the Rehabilitation Act 1941; and the Disabled Persons Community Welfare Act 1975.

  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 aim of the department's administrative services is to provide support, advisory, training and research facilities so that the department functions effectively and efficiently. 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 to keep the public informed 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 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 provide as necessary for the care, development, treatment and training of children and young persons who are placed in the care of the department either by agreement with parents, by order of the Court as a consequence of ill treatment, neglect or offending or when, for other reasons, parents are unable to provide care.

  2. To establish and maintain institutions, or arrange foster homes, for the care and control of children placed under the guardianship of the department.

  3. To promote and maintain preventive work, social work and general counselling services 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 enable them to participate in community life to the greatest possible extent.

The social work services involve individual and family casework and work with community groups and organisations. The emphasis of the service is on child care and protection, and work with the young offender (under 17 years). Much of the work is concerned with children and young persons and their parents where difficulties in family functioning have arisen, and where this may be reflected in emotional and behavioural problems in the child or young person. The residential programme includes the inspection of children's homes run by voluntary organisations.

Administration

The Social Security Commission in the Department of Social Welfare administers, under the direction of the Minister of Social Welfare, Part I and Part III 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.

The War Pensions Act 1954 is also administered by the Department of Social Welfare, which likewise handles ex-servicepersons' rehabilitation.

Child welfare activities are governed by the Children and Young Persons Act and other legislation detailed later in this section.

Table 7.31. SOCIAL WELFARE EXPENDITURE PER HEAD OF MEAN POPULATION: TYPE OF BENEFIT AND RELATION TO GROSS DOMESTIC PRODUCT (GDP)

Year Ended 31 MarchGross Domestic ProductExpenditure*
Health BenefitsFamily BenefitOther BenefitsTotalPer Head of Mean Population

* Excluding capitalised family benefits.

Source: Department of Social Welfare.

 $(million)$
198124,464272.1306.82,024.92,603.8x827.50x
198229,325x313.6297.72,472.03,083.3975.08
198332,368x348.4293.03,154.43,795.81,189.09
198434,935377.4x289.73.444.94,112.0x1,271.10
198540,978419.4284.23,796.94,500.51,378.28
Percentage of Expenditure to Gross Domestic Product
1981...1.111.258.2810.64...
1982...1.07x1.02x8.43x10.52x...
1983...1.08x0.91x9.75x11.74x...
1984...1.08x0.839.8611.77x...
1985...1.020.699.2710.98...

7.5 Benefits and pensions

The New Zealand system has developed the following types of social welfare 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.

Family care—For wage and salary earners with dependant children, who have limited family income.

Accommodation benefit—Available to beneficiaries who have limited income and assets and who pay relatively high accommodation costs.

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 60 years of age.

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, applies generally 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 medical treatment ordinarily given by medical practitioners in the course of a general practice. Certain services are excluded, 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 for the main purpose of obtaining a medical certificate.

  3. Medical services other than anaesthetic services, involved in or incidental to the extraction of teeth by a medical practitioner.

Every general practitioner who renders any of the services outlined is entitled, on behalf of ordinary patients, 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 Welfare beneficiaries, pensioners and their dependants, and for patients approved as “chronically ill”, the benefit ranges from $3.00 to $7.00; in the case of all children and young persons up to their sixteenth birthday, and those for whom family benefit continues to be paid, the rate of the benefit ranges from $10.25 to $16.25. For initial consultations with recognised psychiatrists, paediatricians, neurologists, and neuro-surgeons and general physicians, the department pays a benefit of $20.00; with all other specialists, the benefit paid for children and young persons is $10.00, and the benefit paid for all other patients is $5.00. 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 an inter-specialist referral, with prior agreement 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 Welfare beneficiaries and pensioners and their dependants, and the “chronically ill” for whom the fee is $3.00, and $10.25 in the case of children and young persons. In designated rural areas, an incentive bonus is payable to general practitioners. In 1985, the immunisation benefit was increased to $7.00 when the vaccine is administered by the doctor or a registered general nurse in his or her employ and under his or her direction. The immunisation benefit is in full settlement and no extra charge should be made. Most doctors 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 medical practitioners providing general and specialist medical services in 1984 was 5440. For the year ended 31 March 1984, the cost per head of population was $17.00. The average population per active general practitioner in 1984 was 1633.

Pharmaceutical benefits. Persons receiving medical attention under the Act are entitled, generally at little or no cost to themselves, to those medicines, drugs, approved appliances and materials prescribed by their medical practitioners or dentists and which are included in the Drug Tariff.

Prescriptions passed for payment in the year ended 31 March 1985 totalled 28.63 million or 8.8 per head of population. The average cost per prescription was $8.51 and the cost per head of population for the year $78.26.

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 August 1984 are as follows:

  1. For surgical treatment $26.50 a day, with a minimum total of $30.00 (for less than 48 hours).

  2. For medical (including psychiatric) treatment $20.50 a day.

  3. For geriatric treatment $25.50 a day.

  4. Hospital treatment for maternity patients $28.50 a day.

  5. For long-stay medical patients, $25.50 per day.

Free treatment is given to outpatients at public hospitals. There is provision for the supply of contact lenses for specific eye conditions, artificial orthopaedic appliances, crutches, permanent splints, manual wheelchairs, plastic protective clothing, ileostomy and colostomy appliance urinals and components, oxygen cylinders, mist tents and similar equipment for children suffering from a specific complaint.

Hospital boards pay a subsidy for hearing aids, surgical footwear, some aids for daily living and electric wheelchairs. The Department of Health provides artificial larynx, larynx batteries and battery chargers, as well as understockings and limb socks (supplied by the New Zealand Artifical Limb Board). The department also subsidises payment for breast prostheses, wigs or hairpieces and children's hearing aids.

Patients in private hospitals may be supplied, by hospital boards, with intra-ocular lenses and orthopaedic implants.

A subsidy is also provided under the geriatric hospital special assistance scheme to help geriatric patients in private hospitals where the patient needs hospital care and cannot be placed in a public hospital bed. Patients must contribute from their incomes to the payment of fees. In the case of a married patient in hospital for up to 13 weeks the income left in the hands of the spouse who is not hospitalised must be not less than the rate of National Superannuation for a married couple. After 13 weeks the income left in the hands of the spouse who is not hospitalised must not be less than the rate of National Superannuation for a single person plus $15 per week.

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 antenatal 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 private maternity hospitals are entitled to receive fees of $26.50 in respect of the day of birth of the child and for each of the succeeding 14 days.

Diagnostic imaging services. These 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 insurance, 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 cover the supply of all materials or substances needed for 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 from 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 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 8 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 1964, home-nursing services are provided free where the services are provided by a registered nurse or midwife employed by 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. Hospital boards may also provide home aid services as part of a range of domiciliary services intended to minimise the need for inpatient hospital or residential home care.

Dental services. The Social Security (Dental Benefits) Regulations 1983 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 is provided by contracting dentists 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 make provision for the supply of artificial aids, such as artificial limbs, hearing aids and contact lenses.

Breast prostheses—Women undergoing a mastectomy are entitled to a benefit to assist with the cost of a breast form. With effect from 1 August 1983 the benefit was increased to $80 towards the cost of the initial prosthesis. The benefit paid to meet the cost of a replacement prosthesis remains at $40 per annum. Since 3 July 1985 it has been possible to claim an initial lump sum payment of up to $200 made up of the initial sum of $80 plus the subsequent yearly benefit for up to 3 years. Patients entitled to the benefit are required to have a certificate of eligibility from their doctor for presentation to the supplier.

Contact lenses—These may be supplied in respect of the following optical disabilities: conical cornea; high myopia, where the degree of myopia present in the greatest axis of the better eye is not less than 10 diopters; 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 for any other ocular condition which cannot be corrected by ordinary spectacles; in these cases recommendation by two ophthalmologists is necessary.

Hearing aids—A subsidy of $81 is payable by hospital boards towards the purchase of a hearing aid, where the patient suffers a hearing loss which makes the use of an aid necessary.

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

Patients are eligible for the payment of the subsidy for a replacement hearing aid if the authorising otologist believes their existing aid is inadequate and a new aid is required to improve hearing ability. For persons under 16 years of age, the Department of Health may subsidise the balance of the cost of the hearing aid over and above the amount paid by the hospital board.

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-serviceperson 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, hands, legs and feet, and includes limb socks for such limbs and, for female amputees, replacement understockings.

Orthopaedic implants—Artificial hips and similar implants aiso 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 fully subsidised in approved cases.

Artificial eyes—A benefit of up to $50 is available to all patients who have had an eye removed in a private hospital. For adults, the benefit is available towards the cost of the initial prosthesis only. Children and young persons are also entitled to a benefit of up to $50 towards the cost of replacement artificial eyes prior to their sixteenth birthday.

Wigs—A benefit of up to $200 is available to meet the cost of wigs required on cosmetic grounds by patients suffering from: congenital dystrophy of the skin; alopecia areata, severe and longstanding; or in cases of illness or treatment of illness where baldness is not permanent but is likely to be prolonged. For adults the benefit is available towards the cost of the initial wig obtained. Children are entitled to “reasonable” replacements at intervals considered suitable by the medical officer of health.

Table 7.32. HEALTH BENEFIT EXPENDITURE

Item1980-811981-821982-831983-841984-85

* This is now paid under Medical Subsidies.

Source: Department of Health.

$(thousand)
Maternity benefits—
    Medical practitioners' fees7,8009,33110,56510,55410,594
    Medical practitioners' motor vehicle allowance258317365386365
    Obstetric nurses' fees6987845772
    Obstetric nurses' motor vehicle allowance..13585560
8,1279,74811,07211,05211,091
Medical benefits—
    General medical services35,48735,26135,77834,55234,078
    GMS motor vehicle allowance199197193189195
    Specialist medical services4,6264,4644,6294,6764,763
    Rural practice bonus and other incentives741755764801751
    Immunisation benefit476672863853895
    Practice nurse subsidy7,97910,66712,614**
    Social workers in general practice..........
 49,50852,01654,84141,07140,682
Private practice and post-graduate grants646560....
Special area and other arrangements—
    Section 117, Social Security Act8........
 726560....
Hospital benefits—
    Treatment in private hospitals—maternity benefits199204188165162
    Treatment in private hospitals—medical and surgical4,4515,1695,9566,1826,479
    Treatment in private hospitals—geriatric benefit24,58530,84035,21936,33739,546
    Treatment in private hospitals—long stay benefit516697591598802
    Treatment in approved institutions2,3272,8983,2033,1712,388
 32,07839,80845,15746,45349,377
Pharmaceutical benefits—
    Medicines ordered by:
    Medical practitioners—
    Prescriptions and practitioners supply orders......214,718247,771
    Other......1,6472,090
Dentists—
    Prescriptions and practitioners supply orders......685743
    Other......5781
    Private hospitals and other institutions—
    Bulk supply orders......2,5792,837
    Other......9581,320
 ......220,645254,842
Supplementary benefits—
    Dental services7,8468,1888,3317,9837,886
    Laboratory services23,31525,67627,93329,25633,362
    Artificial aids133168211248412
    Physiotherapy services1,5801,6592,0112,0532,196
    Radiological services2,0772,1352,5122,9422,987
    Breast prostheses1955108169190
    Hair pieces5056645975
    Miscellaneous........35
 35,02037,93741,17042,71047,143
                  Total272,084313,642348,398361,933403,135

Health 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 who 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 needs of elderly people either through these agencies or through private facilities, the provision of residential care for the aged becomes a hospital board responsibility. At 31 March 1984 religious and welfare or private organisations provided 16 648 home and hospital beds for the elderly. Hospital boards maintain 828 old people's home beds.

Other measures which are of importance in assisting elderly people to remain in their homes as long as possible are receiving increased attention; for example, the provision of district nursing services, home aid, meals-on-wheels, laundry services and occupational therapy. In addition, many religious and welfare homes are now providing daycare for those who do not want full accommodation in an old people's home. 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 helping welfare councils with administrative costs. During the year ended 31 March 1984 over 26 420 persons were delivered meals-on-wheels. An average of 62 meals were supplied to each person during the year. The service is operated by all hospital boards with the assistance of voluntary drivers.

Old people's homes and hospitals. As from 1 April 1981, subject to maximum subsidies of $21,000 per bed for old people's homes and $25,000 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. 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. Since July 1982, subsidies have been provided towards the capital cost of providing daycare centres for the elderly. The administration of policy is a Department of Health responsibility.

During the year 1984-85, subsidies amounting to $5,890,516 were approved. From April 1950 to 31 March 1985 subsidies totalling $85,514,129 have been approved, and buildings erected as a result will accommodate 9069 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. Among the more important are the Royal N.Z. Plunket Society, the Children's Health Camps Board, the New Zealand Red Cross Society, the St. John's Ambulance Association, the New Zealand Crippled Children's Society, the Hearing Association, the Royal New Zealand Foundation for the Blind, the Family Planning Associations, the Neurological Foundation, the Rehabilitation League, the Laura Fergusson Trust for Disabled Persons, the New Zealand Society for the Intellectually Handicapped, the Cancer Society, and the National Heart Foundation.

Health incomes and expenditure

According to New Zealand's first Census of Services, which included information on health incomes and expenditure, the Central Government during the 12 months ended 31 March 1981 contributed more than $930 million in grants and subsidies to help meet the operating expenses of private health practitioners, public and private hospitals, and licensed old people's rest homes. These payments represent approximately $300 per head of population.

Private practitioners' incomes. The total income of the 3693 private practitioners in the census amounted to $230.7 million in 1980-81, of which $66.4 million was supplied by the Central Government.

Table 7.33. PRIVATE PRACTITIONERS' INCOMES BY TYPE OF PRIVATE PRACTICE, 1980-81

Type of Private PracticeAverage Gross Income*Direct Government Grants/SubsidiesNet Profit or Income

* Per full-time equivalent.

† In some instances statistical estimation was involved in arriving at total grants by type of practice.

‡ After adjustments for changes in stocks and including any salary received by practitioners. Net profit or income is before tax.

 $      $    Percentage of Average Income$    
Medical specialist83,23619,84223.843,011
General practitioner62,36627,47444.130.490
Dentist70,89110,87915.329.540
Optometrist and dispensing optician113,9061,5341.334,460
Physiotherapist40,75614,47735.518,663
Chiropractor45,677500.120,448
Radiologist120,32641,61434.647,034
All types of private practice69,45919,99128.831,312

Incomes of hospitals and rest homes. Public hospitals were 62.4 percent of all hospital institutions in the census. Of the remainder, 12.1 percent were private non-profit, 18.5 percent incorporated private, and 7 percent non-corporate private establishments. In contrast 99.2 percent of all licensed old people's rest homes were privately owned, of which 53 percent were non-corporate and 33 percent were non-profit.

Central Government grants and subsidies provided 91.9 percent of the income of all public and private hospitals, and 16.9 percent of the non-capital receipts of old people's rest homes.

Table 7.34. INCOMES OF HOSPITALS AND REST HOMES 1980-81

Type of EstablishmentAverage Gross IncomeGovernment Grants and Subsidies
 $$
Hospitals—
    Public3,913,4143,736,838
    Private, non-profit633,047225,674
    Private, other391,593189,176
    All establishments2,616,9492,405,890
Rest Homes—
    Public259,667259,667
    Private, non-profit244,75651,362
    Private, other74,2565,156
    All establishments130,91322,074

Social welfare benefits

Table 7.35. CASH BENEFITS: WEEKLY RATES

BenefitWeekly Rate
November 1984January 1985July 1985

* Includes those widowed or divorced.

† Unemployment benefits are taxable where no child supplement is being paid for dependent children. Rates shown are gross.

‡ Prior to 19 January 1983 the benefit was $260 a year ($5 a week).

§ National superannuation is not subject to an income test but is taxable. Rates shown are gross.

Source: Department of Social Welfare.

Invalids and sickness—$    $    $    
    Unmarried*
        18 and over97.4899.82109.49
        Under 18 without dependants75.0277.3687.03
    Married—
        Husband or wife separately81.2383.1891.24
        Spouse included162.46166.36182.48
Widows97.4899.82109.49
Domestic purposes—
    Solo parent or woman alone97.4899.82109.49
    Caring for sick or infirm—
        Unmarried and 18 or over97.4899.82109.49
        Unmarried and under 1875.0277.3687.03
        Married81.2383.1891.24
Unemployment
    Unmarried person—
        Twenty years and over97.4899.82109.49
        Under 20 years without dependants75.0277 3687.03
Spouse included162.46166.36182.48
Any of the above benefits with dependent children
    Solo parent and 1 child156.46160.36176.48
    Solo parent and 2 children164.46170.36186.48
        Increased by $520 a year ($10 p.w.) for each subsequent child
    Married couple with 1 child170.46176.36192.48
        Increased by $520 a year ($10 p.w.) for each subsequent child
Miners—
    Unmarried person97.4899.82109.49
    Married man (wife included)162.46166.36182.48
    Miner's widow95.8898.22107.89
Orphans48.0549.2054.00
Family—
    Each dependent child6.006.006.00
Family Care—
    Each dependent child10.0010.0010.00
Accommodation benefit is available to beneficiaries with limited incomes and assets to assist them with accommodation costs
Emergency Benefits—According to circumstances
 (11 Dec 1984)(19 Mar 1985)(23 Jul 1985)
National superannuation§$$$
    Married person107.70110.14121.00
    Single person130.30133.83148.25
    Married couple215.40220.28242.00

Cash benefits. The rates of invalids, widows, domestic purposes, sickness and unemployment benefits are adjusted every six months to take account of increases in the cost of living as measured by the Consumers Price Index. From 1986, adjustments will take place every April and October.

Table 7.36. INCREASES IN INVALIDS', WIDOWS' AND MINERS' BENEFITS

Date of IncreaseAmount of Increase per Week
Married CouplesUnmarried Beneficiaries

Source: Department of Social Welfare.

 $    $    
21 Jul 198210.686.41
19 Jan 19838.805.28
20 Jul 19832.641.58
18 Jan 19842.641.58
18 Jul 19844.422.66
26 Nov 19846.003.60
16 Jan 19853.902.34
17 Jul 198516.129.67

National superannuation. National superannuation, for persons aged 60 or over, replaced age and superannuation benefits from 9 February 1977. It is subject to a 10-year residence test and is taxable, but is not subject to an income test unless payment is claimed for unqualified spouse. There are no special contributions required as national superannuation is financed from ordinary government revenue. National Superannuitants may be liable for a tax surcharge of 25 cents in the dollar. This surcharge is on superannuitants' 'other income' above certain limits. During 1985, single superannuitants could have 'other taxable income' of $6,240, and married superannuitants $5,200 each before the surcharge starts to apply.

The after tax rates of national superannuation represent a specified percentage of the average ordinary-time weekly wage after tax. At the introduction of the scheme on 9 February 1977, the after-tax rate for a married couple was 70 percent of the average weekly wage before tax, and rose to 80 percent from 30 August 1978. From 28 August 1979 the definition was altered so that the after-tax rate for a married couple was 80 percent of the average weekly wage after tax.

Since 11 December 1984 the rates of national superannuation have been increased by the same dollar amounts as the rates of social security benefits. That is, the increases have been based on movements in the Consumer Price Index (CPI). If the rates payable as a result of future movements in the CPI are less than the rate payable based on the latest average ordinary time weekly wage, then the previous method of assessment will again be adopted.

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 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.

Table 7.37. WIDOWS' BENEFIT ACCORDING TO NUMBER OF DEPENDENT CHILDREN (31 MARCH 1985)

Number of Dependent ChildrenWidows' Benefit

Source: Department of Social Welfare.

Nil9,268
12,495
21,154
3443
4141
5 or more56
     Total13 557

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, has lost the support of, or is inadequately maintained by, her husband, or who is divorced from her husband, or whose husband is 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. To qualify as a solo parent, the applicant has to establish in law the identity of the other parent of his or her child. The number of domestic purposes benefits in force at 31 March 1985 was 56 548.

Orphans' benefits. A benefit 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 1985 was 365 in respect of 457 children.

Family benefits. The rate of the benefit is $6 a week for each child, until he or she reaches 16 years, or, if a full-time school pupil, until 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 of up to 52 weeks for the first child, a child who has started the first year of intermediate or secondary education, or a child for whom it is intended to purchase a child's car restraint. These advances may also be made for all children of multiple births.

The total number of benefits in force at 31 March 1985 was 519 739 covering 916 479 children, compared with corresponding figures of 499 365 and 933 915 at 31 March 1984. At September 1984 there were 69 109 children over 16 at school for whom benefits were being paid.

The average number of children for whom benefits were paid was 1.8 per family at 31 March 1985.

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 $6 of the weekly family benefit for each of one or more children from the age of one 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 $4,000. The maximum income limit for eligibility is $310 a week for a family with one child, rising by $25 a week for each additional child.

Table 7.38. FAMILY BENEFIT CAPITALISATION

Year Ended 31 MarchApplications for Capitalisation ApprovedCapitalised Value of Benefits

Source: Department of Social Welfare.

  $(000)
19803,7109,094
19812,2785,872
19822,4454,374
19833,9776,847
19846,66616,925
19857,36921,614

Family care. This is payable to wage and salary earners with dependent children and who work for at least 30 hours a week (in the. case of a married couple either party has to be in employment for 30 hours a week or, if both are working, their joint hours of work must be at least 30 hours a week). If the weekly family income exceeds $394, the maximum grant of $10 a week for each dependent child is reduced by 25c for each complete $1 of income in excess of $394.

Family Care was introduced in November 1984 and at the end of March 1985 was payable to 164 776 families. Family care is to be replaced from 1 October 1986 by Family Support, administered by the Inland Revenue Department and delivered, where possible, through the wage packet.

Invalids' benefits. An invalid's benefit is payable if persons aged 15 years or over are either totally blind or are permanently and severely restricted in their capacity for work as the result of an accident or by reason of illness or of any congenital defect.

In working out the income of blind persons no account is taken of their personal earnings. In addition, the benefit of totally blind persons may within certain limits be increased by up to 25 percent of their personal earnings. The personal earnings of severely disabled beneficiaries may be disregarded in whole or in part in computing their benefits. At 31 March 1985 there were 21 464 invalids' benefits being paid.

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 as a result permanently and seriously incapacitated for work, provided that compensation for the same disability is not being received. There were 11 miners' benefits being paid at 31 March 1985.

Unemployment benefits. Applicants for unemployment benefits must show that they are unemployed; that they are capable of undertaking and are willing to undertake suitable work; that they have taken reasonable steps to obtain suitable employment; and that they have resided continuously in New Zealand for not less than 12 months at any time. People are not entitled to an unemployment benefit if they are full-time students, or if not employed because of a strike either individually, or by fellow members of their union at the same place of employment.

An unemployment benefit is not payable for the first 7 days of any period of unemployment for applicants with dependants, and the first 14 days for single people, except in special circumstances.

A further waiting period of up to six weeks is imposed on high income earners.

The Social Security Commission may postpone, for a period not exceeding 6 weeks, the commencement of the benefit if the applicant: has voluntarily become unemployed without good and sufficient reason; or has lost his or her employment because of any misconduct as a worker; or has refused to accept an offer of suitable employment; or has refused to undertake suitable job training; or has failed to take reasonable steps to obtain suitable work.

The benefit is payable so long as the beneficiary is unemployed or until he or she becomes eligible to receive another class of benefit such as national superannuation.

If a beneficiary is not receiving a benefit in respect of a spouse, an allowance may be paid for any person who has the care of his or her home.

Benefits were granted to 172 046 persons in 1983-84, and 144 846 persons in 1984-85.

Emergency benefits may be granted on grounds of hardship to persons who do not qualify for the ordinary unemployment benefit. The average duration of unemployment benefits (not including emergency benefits) which ceased during the 1985 March year was 18.1 weeks (18.3 weeks for men and 17.7 weeks for women).

Table 7.39. UNEMPLOYMENT BENEFITS AND EMERGENCY UNEMPLOYMENT BENEFITS 1985*

 UnemploymentEmergency Unemployment
MalesFemalesTotalMalesFemalesTotal

* Year ended 31 March.

† Numbers obtained from a monthly count of benefits in force.

Source: Department of Social Welfare.

Benefits granted95,21549,631144,8466,2664,42810,694
Applications declined26,79712,76339,5601,7301,4783,208
Benefits in force at 31 March 198522,07112,75434,8252,0841,5103,594
Average number in force during year28,09414,50246,5961,8881,7093,597

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 persons granted a sickness benefit was 32 828 in 1983-84 and 32 114 in 1984-85.

Table 7.40. SICKNESS BENEFITS CEASED 1985*

Period on Benefit (Weeks)Number of Benefits
MalesFemalesTotal

* Year ended 31 March.

Source: Department of Social Welfare.

Up to 56,2413,7409,981
5-83,2122,1615,373
9-121,7321,5973,329
13-252,8993,7066,605
26-381,2861,4052,691
39-517353741,109
52-779134441,357
78-103420223643
104 and over6394031,042
     Total18 07714 05332 130

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 herself or himself and those dependent on her or him and is ineligible for any other monetary benefit other than family benefit.

Accommodation benefit. Accommodation benefit is for people whose income and cash assets are limited and who are paying accommodation costs in excess of a certain amount. The maximum amount of accommodation benefit is $40 a week for both married couples and single people.

Since 1973 a telephone rental concession equal to one-half of the amount of the rental may be granted to persons receiving invalids', widows', domestic purposes, and some sickness or related benefits.

Disability allowance. A disability allowance of up to $26 a week is payable 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 for the disabled spouse 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 the free list.

Handicapped child's allowance. A non-taxable allowance of $19 a week is payable to the parents of seriously physically or mentally handicapped children other than those already being cared for in full-time residential institutions.

Payment whilst in hospital. Married or unmarried applicants with no dependent children receive a benefit at the current rate for the first 13 weeks of hospitalisation. The benefit is then reduced to $15. Entitlement to a benefit of more than $15 per week following the initial 13 weeks is dependent on the beneficiary's financial and personal circumstances, his or her needs and mental condition. The benefit rate is not affected for applicants with dependent children.

Continuation of benefit after death of beneficiary. From 12 December 1985 benefits are paid for a period of 4 weeks following the death of beneficiaries, to dependants who are not entitled to lump sum payments under section 82 of the Accident Compensation Act 1982.

Single payments after death. From 12 December 1985 dependants of any person who dies are eligible to receive a single payment of $1,200 subject to the net value of the deceased's estate being less than $10,000, and an income test.

A further $600 is paid for each dependent child. If the deceased was a national superannuitant or social security beneficiary, any amount paid after the date of death by way of 'continuation of benefit after the death of beneficiaries' will be deducted from the lump sum of $1,200.

In cases of deceased without dependants, a single payment not exceeding $600 may be paid to meet any funeral expenses which are not able to be paid from the deceased's estate before the payment of any other debts.

Following the death of a dependent child for whom family benefit was payable, a single payment of $600 may be paid to the parents or guardians subject to a means test.

Basic income exemptions. The basic income exemptions at the end of 1985 were as follows:

Widows', invalids and domestic purposes benefits, $1,300 a year.

Sickness, and unemployment benefits, $25 a week.

Orphans benefit, $260 a year.

Family care, $394 a year.

National superannuation is taxable and is paid to qualified persons, regardless of income. If the inclusion of a non-qualified spouse is sought, an income test applies. The income exemption in this case is $1,300 a year.

Family and miners' benefits are paid regardless of the financial circumstances of the beneficiary.

Adjustment of benefit for income above exemption. Invalids, widows and domestic purposes benefits are reduced by 40c for every complete $1 a year of gross income over the appropriate income exemption of $1,300 a year and up to $2,080 a year, then 80c for every $1 a year.

Sickness and unemployment benefits are reduced by 8c for every 20c over $25 a week up to $40 a week, then 16c for every 20c a week of income.

Orphans benefits are reduced by $3 for every complete $4 a year of income over $260 a year.

Family care is reduced by 25c for each complete $1 of income over $394 a week.

Benefits and pensions in force. The total number of social welfare cash benefits in force at 31 March 1985 was 1 284 319.

Table 7.41. SOCIAL WELFARE CASH BENEFITS

Class of BenefitAt 31 March
19811982198319841985

* Increase in family benefits is due to the inclusion of family benefits paid for children being cared for by people who were not their parents. At 31 March 1985, 20 852 family benefits were paid for children being cared for by guardians.

Source: Department of Social Welfare.

Number in Force
National superannuation418,901430,175441,789451,128459,813
Widows'15,41614,73714,12513,92113,557
Domestic purposes39,41243,44748,12153,14456,548
Orphans'388365362384365
Family461,211459,994486 603*499,365519,739
Family care........164,776
Invalids'16,96117,89118,75720,18721,464
Miners'1616161311
Unemployment35,66632,59650,74450,13638,419
Sickness7,1047,1777,6699,4529,627
                Total995 0751 006 3981 068 1861 097 7301 284 319

Disabled Persons Community Welfare Act

In addition to the disability allowance and the handicapped child's allowance provided for under the Social Security Act, the following services and payments are available under the Disabled Persons Community Welfare Act 1975.

Alternative care. The Department of Social Welfare will meet reasonable costs of alternative care of a seriously disabled child for 4 weeks in every year for the purpose of relieving the parents of the constant burden of caring. The cost of alternative care for disabled persons other than children may be met if it is justified by the circumstances of the case. During the year ended 31 March 1985, applications relating to 4278 children and 6176 adults were granted at a value of $2,515,000.

Medical expenses. Travel and accommodation expenses are available to seriously disabled people when undergoing a course of medical treatment approved by a hospital board specialist, or undergoing educational, vocational or psychological assessment. Where the disabled persons cannot travel alone and must be accompanied by an attendant, the reasonable travel costs of an attendant may be met.

The total expenditure for medical expenses for the year ended 31 March 1985 amounted to $143,000.

Loans for home alterations. Suspensory and interest-free loans are available for alterations to homes to accommodate a wheelchair or to provide handrails or to change plumbing and other fittings, having regard to the person's disability. During the year ended 31 March 1985, 1050 loans were approved to the value of $1,749,000.

Disability aids. Seriously disabled people may be assisted towards the cost of walking frames, prosthetic appliances or aids. Aids must directly assist the disabled person's mobility.

Total expenditure for the supply of disability aids for the year ended 31 March 1985 amounted to $362,000.

Suspensory loans for motor vehicles. Suspensory loans may be granted to seriously disabled persons to assist in the purchase of a motor vehicle where such a vehicle is necessary to enable that person to obtain or retain employment or undergo training for suitable work.

The loans are also available to disabled people carrying out voluntary work for recognised community-based organisations. During the year ended 31 March 1985, a total of 136 car loans were approved at a total cost of $557,000.

Self-employment. From December 1982 financial assistance has been available to disabled people to enable them to become self-employed. In the period up to 31 March 1985, 15 applications were granted to the value of $72,000.

Driving assessment centres. From October 1982, financial assistance was available to disabled people and people assisting them, to attend driving assessment centres. The scheme is mainly intended for those whose conditions would preclude them from driving a normal car without modification. In the year to 31 March 1985, 4 applications were granted and expenditure totalled $6,000.

Table 7.42. PAYMENTS UNDER THE SOCIAL SECURITY ACT

Item1980-811981-821982-831983-841984-85

* Benefit on death prior to 28 September 1982.

† Includes maternity benefits relating to private hospital treatment.

‡ Excludes group practice loans.

§ Includes private hospital loans and grants to Royal N.Z. Plunket Society towards operating costs.

|| Includes domestic assistance; grants to public servants and dependants in respect of medical expenses while stationed overseas; payments under section 117, Social Security Act 1964; grants to Intellectually Handicapped Children's Parents' Associations and other organisations.

Sources: Department of Health, Department of Social Welfare.

Cash benefits—$(thousand)
    National superannuation1,556,8181,895,8452,418,9302,526,0312,743,512
    Widows57,81562,16473,95471,29578,495
    Domestic purposes198,053252,654333,617380,836460,385
    Orphans8669431,1141,1861,004
    Family306,773297,705293,044289,689284,167
    Family care........60,460
    Invalids49,58060,45479,07487,410105,724
    Miners6872957872
    Unemployment118,757156,429195,218315,849274,689
    Sickness38,55343,52952,35562,21272,550
    Payment after death*2,8122,7372,7963,7843,495
Advances for repairs to homes3503474048691,029
Aid to families caring for disabled persons1,2131,5991,7672,1342,515
Capitalisation of family benefit5,8724,3746.84716,92521,614
              Total cash benefits2,337,5302,778,8523,459,2153,758,2984.109,711
Health benefits—
    Maternity8,3269,95111,26011,21711,253
    Medical49,58152,08154,90156,500x56,825
    Hospital§31,87939,60444,97046,28849,215
    Pharmaceutical147,278174,068196,098220,644254,843
    Supplementary ||35,02037,93741,17042,71147,142
              Total medical benefits272,084313,641348,399377,361419,279

Reciprocity agreements

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 mineral, orphans', or domestic purposes benefits) residence in Australia or birth in Australia is regarded as residence or birth in this country.

Applicants for 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 national superannuation unless he has attained the age of 65 years and, if under 70, he will be required to establish that he would have been able to qualify on income grounds for an Australian age pension had he remained in Australia. 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 1985 comprised 621 national superannuation benefits; 18 widows benefits; 65 invalids' benefits; 15 unemployment benefits; and 1 sickness benefit—a total of 720 compared with 742 a year earlier.

United Kingdom. The Social Security (Reciprocity with United Kingdom) Act 1983 provides for reciprocity in a comprehensive range of benefits between New Zealand and the United Kingdom. The general principle of the convention 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. No male person applying for national superannuation under the convention is entitled to receive payment unless he has attained the age of 65. The qualifying age for women is 60 years.

Reciprocal benefits in force in New Zealand at 31 March 1985 comprised 12 536 national superannuation benefits; 47 widows' benefits; 2 orphans' benefits; 104 invalids' benefits; 2 unemployment benefits; and 1 domestic purposes benefit (beneficiaries transferred to domestic purposes benefits from age benefits on the introduction of national superannuation)—a total of 12 692 compared with 13 128 a year earlier.

New Zealand residents in the United Kingdom. In the United Kingdom the convention applies to former residents of New Zealand who claim retirement pensions, widows' pensions, widowed mothers' and guardians' allowances, family allowances, and 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 national superannuation 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.

Revenue collection and enforcement

During 1983, revenue sections were established in 28 of the Department of Social Welfare's district offices with responsibility for the work associated with money due for maintenance, liable parent contributions and overpaid benefits and pensions.

Maintenance. The Family Court can make, register, confirm, vary or cancel maintenance orders and agreements.

The Department of Social Welfare is responsible for the collection and enforcement of maintenance payable under maintenance orders and registered agreements in terms of the Family Proceedings Act 1980.

The number of current maintenance orders and registered agreements continues to decline following the introduction of the liable parent contribution scheme; from 47 000 in March 1981 to 33 572 in March 1985. The amount due for enforceable orders and agreements is $35,305,000 and receipts for the year totalled $17,808,000, a collection rate of 50.4 percent. Of this amount $9.1 million was lodged to the Consolidated Account representing maintenance for those in receipt of a domestic purposes benefit granted before 1 April 1981.

Liable parent contribution scheme. This scheme, introduced from 1 April 1981, is a system for assessing and obtaining contributions from the non-custodial parent toward the cost of paying a domestic purposes benefit to the person caring for the children. The formula for assessing the contribution is contained in the 20th schedule to the Social Security Act.

To date, the scheme has not acheived its potential collection rate.

Reimbursement for domestic purposes benefit. The pattern of reimbursement for the cost of the domestic purposes benefits (Maintenance orders only in 1981, maintenance orders plus liable parent contribution from 1982) is set out in Table 7.43.

Table 7.43. REIMBURSEMENT FOR DOMESTIC PURPOSES BENEFIT

Year Ended 31 MarchDPB ExpenditureMaintenance and Liable Parent Receipts in Respect of BeneficiariesRate of RecoveryNet Expenditure

Source: Department of Social Welfare.

 $(million)$(million)percent$(million)
1982252.716.36.5236.4
1983333.623.47.0310.2
1984380.830.38.0350.5
1985460.430.96.7429.5

War pensions and rehabilitation

The war pensions programme is the outcome of New Zealand's participation in 2 World Wars in which large numbers of citizens served as members of the forces. It applies also to service in Korea and South-east Asia, and includes obligations undertaken under the charter of United Nations and service with the Regular Force prior to 1 April 1974.

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 and servicewomen 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 service.

The war pensions legislation is designed to provide basic pensions to compensate for disablement or death, which provide for physical loss and are therefore compensatory in character; and 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.

For many years social security monetary benefits and war pensions have been administered by one 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 chairperson, 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 not up to the claimant to prove that death or disablement or a condition resulting in either of these was due to war service; the War Pensions Board and the War Pensions Appeal Board must give the claimant the benefit of the doubt when making decisions. A member who was graded fit for service on entering 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 pensions for war disablement and war widows are now adjusted annually on a cost of living basis.

Table 7.44. RATES OF WAR PENSIONS AND ALLOWANCES

PensionWeekly Rate
5 December 198416 January 198517 July 1985

* Adjusted annually at 1 April in relation to movements in the Consumers Price Index.

† Subject to means test on income.

‡ Increased from $6.00 to $8.00 from 5 December 1984, and to $10.00 from 16 January 1985.

Source: Department of Social Welfare.

 $    $    $    
Disablement pension*
    Total disablement68.8168.8178.04
    Special additional pension for blindness or serious disablement41.2941.2946.82
Economic pension
    Unmarried person97.4899.82109.49
    Married person81.2383.1891.24
Wife's pension81.2383.1891.24
War widow's pension—
    Basic pension*50.7650.7657.57
    Economic pension97.4899.82109.49
  Mother's allowance—
        One dependent child58.9860.5466.99
        Two dependent children66.9870.5476.99
            Increased by $10.00 a week for each subsequent child
Orphan's pension49.1050.2555.05
Child's pension6.006.006.00
Widowed mother's pension (totally dependent)—
    Basic pension*50.7650.7657.57
    Economic pension97.4899.82109.49
Widowed mother's pension (partly dependent)—
    Basic pension*4.004.004.00
    Economic pension95.2395.57107.24
War service pension and war veteran's allowance
    Unmarried97.4899.82109.49
    Married male81.2383.1891.24
    Married female81.2383.1891.24
    Age supplement (each)1.501.501.50
    Gratuity (veteran's widow)148.24150.58167.06
Dependent children (replacing the rates shown where there are dependent children)
    Solo parent and one child156.46160.36176.48
    Solo parent and two children164.46170.36186.48
        Increased by $10.00 a week for each subsequent child
    Married couple and one child170.46176.36192.48
        Increased by $10.00 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 $25 a week or $1,300 a year. 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 a 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 1985 there were 1193 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 1985 there were 1193 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 for the pension.

An applicant must also fulfil one of the following conditions: be in receipt of a war disablement pension of not less than 70 percent of the maximum pension payable for total disablement; or being in receipt of a war disablement pension of less than 70 percent, satisfy the War Pensions Board he is unable by reason of physical or mental infirmity to undertake permanent employment; or not being in receipt of a disablement pension and not having attained the age of 65 years, satisfy the War Pensions Board he is unable by reason 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 sickness or invalids' benefit as appropriate.

Where any war service pensioner and/or spouse 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 1985 there were 2355 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 which are directly attributable to the Second World War.

Accommodation benefit. Accommodation benefit is available to recipients of income-tested pensions and allowances, on a similar basis to social security accommodation benefit. At 31 March 1985, 260 accommodation benefits were being paid to recipients of war pensions.

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 the year ended 31 March 1985, 152 bursaries were granted, expenditure being $13,000 for the year.

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.

Statistical review of war pensions and allowances. During the year ended 31 March 1985 the department dealt with 2527 applications for war pensions. Of these, 2353 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 2792. Of these, 2648 were in respect of the applicant's own disability.

The number of appeals the War Pension Appeal Board dealt with in 1984-85 was 203, of which 95 were upheld.

The following table shows for all classes of war pensions the number in force, except peacetime forces, Vietnam force and war service pensions, at the end of March in each year and the expenditure during the years given.

Table 7.45. WAR PENSIONS: NUMBER AND EXPENDITURE

Year Ended 31 MarchFirst World War (1914-18)Second World War (1939-45)K ForceWar VeteransMercantile MarineEmergency Reserve CorpsTotal

Source: Department of Social Welfare.

Number in Force
19822,80622,1483102,50021627,791
19832,46122,2013191,91122626,920
19842,13322,1143351,52022626,130
19851,85322,0203481,19321625,441
Expenditure $(000)
19829,39452,32634814,424521076,554
198310,16668,05846013,828571392,582
19849,11155,47552010,870571076,043
19858,64663,7535629,48059682,506

The preceding figures of expenditure include the following:

  1. Travelling allowances paid to 422 pensioners at 31 March 1985;

  2. Clothing allowances, of which 779 were being paid at 31 March 1985;

  3. Gallantly awards, of which 129 were being paid at 31 March 1985.

The following are not included:

  1. Costs of certain medical treatment not available under social security, amounting to $1,022,000 in 1984-85;

  2. Railway and bus concessions to pensioners with severe disablement and locomotive disabilities, costing $121,000 in 1984-85;

  3. Funeral grants, which cost $264,000 in 1984-85.

Administration costs in connection with war pensions and allowances are included in the administration costs of the Department of Social Welfare.

Table 7.46. PENSIONS BY CLASS AND WAR OR SERVICE TYPE 1985*

War or Type of ServiceDisablement PensionsDependants of Disabled Ex-membersDependants of Deceased ServicemenTotal
WidowsParents and Others

* 31 March.

Source: Department of Social Welfare.

First World War 1914-18482121,35901,853
Second World War 1939-4518,953632,9653922,020
Korean Force3361101348
Vietnam Force342110344
Peacetime Forces1,66315841,726
Other5008159
            Total in force21 826784 4014526 350

Rehabilitation. 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, 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. Application for interest-free furniture loans must be lodged within 5 years of date of return to New Zealand after qualifying service. These loans are now administered by the Housing Corporation of New Zealand.

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.

Table 7.47. REHABILITATION EXPENDITURE

ItemYear Ended 31 March
198219831984

Source: Department of Social Welfare.

 $(000) 
Educational facilities, including books, tuition fees, and subsistence allowance1138
Trade training—
    Training of blinded ex-servicemen575853
               Total686161

Table 7.48. REHABILITATION LOAN ASSISTANCE

Purpose of LoanYear Ended 31 March
19831984
NumberAmountNumberAmount

Source: Department of Social Welfare.

  $(m) $(m)
Housing3015.433105.77
Furniture1690.172800.34
               Total4705.605906.11

Superannuation and provident funds

For many years the Government, local authorities, and increasing numbers of private employers have operated superannuation schemes to enable employees to make provision for their retirement in addition to the benefits provided under social security schemes.

The Government Superannuation Fund in its present form was established in 1948, amalgamating funds which had been in existence since the early 1900s. Its revenues consist of members' contributions, subsidies from the Consolidated Account, trading departments and other bodies, and interest earned on investments. The National Provident Fund was established in 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.

A scheme under which National Superannuation is payable to all New Zealanders over 60 years of age who meet a 10-year residential qualification was introduced from 9 February 1977.

Government Superannuation Fund. The Government Superannuation Fund is administered by a board comprising the Minister of Finance as statutory chairperson, the Secretary to the Treasury as deputy chairperson, the Chairperson of the State Services Commission, the General Manager of Railways, the Directors-General of Education and the Post Office, the Commissioner of Police, and 5 members appointed on the nomination of various employee organisations plus one on the nomination of the Minister of Defence.

During 1985, significant changes were introduced for the general scheme and for the police sub-scheme. Over the course of the next 12 months other sub-schemes will also be revised.

The following paragraphs are an outline of the Fund as it is now structured.

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 Corporation, and the Post Office. Membership is compulsory for permanent members of the armed forces, the Police, the Prison Service, judges of the High Court, Maori Land Court judges, District Court judges, members of Parliament, and members of the Cook Islands, Niue, and Tokelau public services.

Contributions—Deductions are made from basic salary at rates ranging from 6.5 percent for the general scheme to 11 percent for members of Parliament.

Credit may be purchased in certain circumstances for periods of government or local authority 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.

Contributors under the age of 50 years have the option of temporarily suspending the payment of contributions, while remaining members of the fund. Death benefits are reduced while contributions are suspended, and service is discounted when the contributor resumes contributing.

Benefits—The principal objective of the fund is the payment of an allowance on retirement, which is usually around age 60, but may be earlier if a contributor is over age 50 with at least 10 years of contributory service. An allowance is also available where retirement occurs because of medical unfitness for further duty. The assessment of a retiring allowance is based upon salary, service and age at retirement. For example, a 50-year-old with 30 years of service would receive an allowance equal to 34 percent of the contributor's final average salary over the preceding five years of service, grossed up to current year values. A 60-year-old with 20 years of service would receive 30 percent, with 40 years of service, 60 percent. Up to a quarter of the annual allowance may be surrendered in exchange for a lump sum of 10 times the amount of the surrender.

On death before retirement, a spouse has the choice of a refund of the deceased's contributions with interest at 6 percent, a lump sum equal to the deceased's final rate of salary, or an allowance at the rate of half the allowance the contributor would have received had retirement occurred on the date of death. With this latter choice the spouse also has the option of receiving 80 percent of the contributor's capitalisation entitlement, in return for a proportionately reduced allowance.

On death after retirement a spouse is entitled to an allowance at half the rate actually being paid at the time of death. Any surviving spouse, if under the age of 61, may also surrender up to one quarter of the spouse's allowance in return for a cash payment.

On death an allowance of $1,133 a year is paid for children below 16 years of age (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. This amount is increased annually in line with the Consumers Price Index,

All allowances are paid in advance in instalments every 28 days and no recovery is made where an entitlement ceased during a benefit period.

Annual cost of living adjustments are paid on all new allowances from the point of commencement, at the rate of increase in the Consumers Price Index.

Options—Two other facilities were started in 1985 for the benefit of contributors:

Housing finance: Members with 3 or more years of contributory service may apply for a first or second mortgage from the fund; the size of the mortgage does not relate to the contributor's equity in the fund nor the length of contributory service, but rather his or her ability to service the mortgage.

Charging of contributions: Members can use their equity in the fund as security for the raising of a loan with another institution.

Special conditions—Armed forces contributors may qualify for a retiring allowance after completing their engagements with not less than 20 years' service. A special variation of the previous cost-of-living adjustment scheme allows this group to receive adjustments following the fifth anniversary of their retirement. The cost is 1 percent more than that required under the old main scheme. This scheme will be revised during 1986.

Superannuation for members of the Judiciary and the Solicitor-General is compulsory with contributions ranging from 7 to 8 percent of salary, dependent upon age at appointment. The normal retirement age is 68, though there are provisions for early retirement. The maximum retiring allowance payable is two-thirds of the final salary and a refund of contributions may be taken in lieu of a pension. The standard provision for spouses and children apply.

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 two-thirds after approximately 21 years' service. They qualify for an allowance from 50 years of age 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 3 sessions. The standard provisions for spouses and children apply.

Police officers contribute at the rate of 7.5 percent of salary. Because they are required to retire at age 55, for the calculation of retirement benefits their contributory service is increased by 25 percent with the provision that total contributory service cannot exceed 40 years unless actual service exceeds this. Members of the police are required to maintain standards of physical fitness. Where an officer is retired due to failure to meet these standards special withdrawal benefits are available. As is the case for contributors to the general scheme, members of the police with at least 10 years of contributory service may be paid a retiring allowance from age 50. Benefits available at death for spouses and children are the same as in the general scheme.

Prison officers also have a special scheme, but this is currently subject to review and new provisions are to be introduced in 1986.

Statistics—As at 31 March 1985 there were 108 269 contributors to the Government Superannuation Fund. They paid $123,091,925 into the fund during the year. At 31 March 1985 there were 37 423 annuitants who were entitled to $214,184,267 a year.

Table 7.49. CONTRIBUTORS TO GOVERNMENT SUPERANNUATION FUND: NUMBERS AND AMOUNTS 31 MARCH 1985

Qualification for AllowanceNumberAnnual Amount

Source: The Treasury.

  $(000)
Retired for age or length of service25,317179,913
Medically unfit12556,160
Spouses9,93628,040
Children91571
        Total allowances37 423214,184

Total assets at 31 March 1985, which amounted to $1,277,485,414 included investments in Government stock, $1,136,487,709. The average effective interest earning of the fund was 11.017 percent for the year ended 31 March 1985.

Table 7.50. CONTRIBUTORS TO GOVERNMENT SUPERANNUATION FUND: DISTRIBUTION 31 MARCH 1985

Branch of ServiceNumberPercentage of Total

Source: The Treasury.

Armed Services12,51011.55
Education Service23,34921.57
Police5,0914.70
Post Office17,27715.96
Prison officers1,3161.22
N.Z. Railways8,4517.81
Public Service36,72933.92
Other employers3,5463.27
        Total108 269100.00

Table 7.51. GOVERNMENT SUPERANNUATION FUND: FINANCIAL STATISTICS AND NUMBERS OF CONTRIBUTORS

Year Ended 31 MarchNumber of ContributorsAnnual Contributions*Interest Received From InvestmentsSubsidy From Government Trading Departments and OthersAnnual Value of AllowancesAccumulated Fund at 31 March

* Includes transfers from National Provident Fund.

† Based on retiring and other allowances at end of year. Actual total paid during year ended 31 March 1985 was $207,744,512 plus $37,405,862 for retiring allowances capitalised.

Source: The Treasury.

$(thousand)
1982122,371120,38363,925139,907144,690824,766
1983116,275127,67081,427151,873170,085947,092
1984111,926123,47399,478193,405199,8601,098,633
1985108,269122,750122,527207,660214,1841,270,098

National Provident Fund. The National Provident Fund is administered by a board comprising the Minister of Finance as statutory chairperson, the Secretary to the Treasury, the Director-General of Health, the Valuer-General, the Superintendent of the Fund, and up to 3 other members appointed by the Governor-General.

The fund now provides services in a number of separate areas:

  1. Public fund—National Provident Fund pension schemes have catered for the general public on an individual basis, sometimes with encouragement from their employer or as members of a group, since 1911.

  2. Local Authorities Superannuation—Three schemes cover employees of all local bodies, quasi-government and other approved organisations, firefighters, and nurses.

  3. National Superannuation Schemes—Three employer-subsidised schemes are available, one for ships officers, one for the meat industry and the other for any employees of companies, firms, Government departments, or local authorities willing to become contributing employers.

  4. 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. 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—The first scheme of the fund, the Level Premium Scheme, available since 1911 and now closed to new members, enabled 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 was built into the contribution rates and after 5 years' membership contributors qualified for incapacity, widows', and dependent children's allowances.

The Annual Single Premium Scheme, which was available to individuals and the self-employed from 1958 to 1979, accepted contributions of any amount from members at any time. The contributions paid during each year were applied at the end of that year towards the purchase of a pension from age 60 years according to the contributor's age at the time. Only the first $1,000 contributed each year attracted State subsidy and this ceased once the aggregate pension purchased reached $20 per week. There was also widow's benefit available.

These 2 schemes, along with the Post 60 Scheme introduced in 1965, were phased out in favour of the Cash Accumulation Scheme introduced in 1975.

Cash Accumulation Scheme—This scheme is being very widely used by individuals. It enables them to pay when and whatever amount of contribution they desire, and also allows them to choose their own date of retirement on superannuation. It is based on a cash accumulation principle and is highly regarded as the ultimate retirement benefit since it reflects the significance of changing interest rates and the impact of inflation. This scheme now provides the vehicle for superannuation previously provided by the Annual Single Premium, Level Premium, and Post 60 Schemes. Both lump sum and pension Cash Accumulation Schemes are available.

Additional Benefit Plan—This provision was introduced in 1975. It allows an existing contributor to one of the fund's schemes to increase the estate or spouse benefit otherwise provided in the scheme by paying an extra stipulated contribution. Most of the fund's schemes limit the benefit payable in the

event of the contributor's death to a level no greater than the equity in the fund. This usually means that in the earlier years of a contributor's membership, the estate or spouse benefit could be much less than a person would require. The Additional Benefit Plan satisfies this need.

National Superannuation Scheme—An employer-subsidised superannuation scheme was introduced in 1964 for farm workers, and in 1969 was expanded and made available to other employee organisations. During periods of non-employment the scheme provides for the holding of credits and has provision for portability with other superannuation funds. Special variations exist for ships officers and employees of the meat industry.

Local Authorities Superannuation—The National Provident Fund continues to provide superannuation for local authorities, employees of quasi-government organisations, and charitable and religious institutions. Under section 44 of the Act all local authorities are deemed contributors to the fund on behalf of their permanent employees who, qualified by age, elect to become contributing employees. Under section 58 of the Act other approved bodies are accepted under similar conditions by completing a special agreement with the board. The Standard Scheme is the main scheme, but variations of it with special terms and conditions are available for use by firefighters, nurses, harbourmasters and harbour board pilots, and aircrew employees of Air New Zealand. Contributory service is transferable between these schemes and with the Government Superannuation Fund, because of their great similarity.

Investment Pool—The Local Authorities Investment Pool is one of the main avenues for the temporary investment by local authorities, and other approved bodies, of surplus loan moneys and reserve funds. For the year ended 31 March 1985, the interest credited amounted to $34.1 million compared with $27.6 million for the year ended 31 March 1984.

Table 7.52. LOCAL AUTHORITIES INVESTMENT POOL: ACCOUNT BALANCES

As at 31 MarchLocal Authorities Investment Pool

Source: The Treasury.

 $(m)
1982318.5
1983343.1
1984376.6
1985347.6

Table 7.53. NATIONAL PROVIDENT FUND LOANS TO LOCAL AUTHORITIES: APPLICATIONS AND APPROVALS

Year Ended 31 MarchApplicationsAmount ConsideredAmount Approved

Source: The Treasury.

 No.$(million)
1982644172.6168.2
1983735199.8196.3
198448694.693.5
198537096.892.8

Table 7.54. NATIONAL PROVIDENT FUND LOANS TO LOCAL AUTHORITIES: CLASS OF AUTHORITY, APPLICATION AND OUTCOME (YEAR ENDED 31 MARCH 1985)

Class of Local AuthorityApplicationsAmount Applied ForAmount ApprovedAmount Deferred or Declined

Source: The Treasury.

 No.$(thousand)
Cities and boroughs15333,71232,2011,511
Counties795,6574,5671,090
Electric power boards388,6998,071628
Harbour boards3419,20319,203-
Hospital boards3017,38616,727659
Sundry local authorities3612,17912,079100
        Total, 1984-8537096,83692,8483 988

Table 7.55. NATIONAL PROVIDENT FUND: COMPARATIVE SURVEY

Item Year Ended 31 March
1982198319841985

Source: The Treasury.

New contributors during yearNo.6,3647,5339,1799,403
Total contributors at end of yearNo.121,437119,264119,710119,862
Local authority scheme—
    ContributorsNo.13,67412,49811,40010,720
    Contributions$(000)57,01158,29454,34551,749
Public Fund—
    ContributorsNo.107,763106,766108,310109,142
    Contributions$(000)50,08156,40364,72567,122
Pensions and allowances at end of yearNo.14,19315,15116,08917,007
Income—
    Contributions$(000)107,092114,697119,070118,871
    Interest$(000)85,820112,885147,094176,637
    Government subsidy$(000)10,14510,4219,8329,588
          Total income$(000)203,057238,003275,996305,095
Outgoings—
    Pensions and allowances$(000)30,11842,00144,58354,385
    Other benefits$(000)17,93924,24723,49032,834
    Administration costs$(000)-100440636
          Total outgoings$(000)48.05766,34868,51387,856
Investment pool at end of period$(000)318,480343,067376,637347,637
Funds at end of period$(000)937,0991,108,7541,316,2371,528,080
Earnings rate of fund after tax%10.5111.6812.9113.27

Statistics from Census of Population 1981

In addition to the traditional census question on taxable income, information was again sought at the 1981 Census of Population on social welfare benefits received by persons aged 15 years and over. Respondents were required to specify the nature of all cash welfare benefits or pensions received during the year ended 31 March 1981. A summary of the results is given below. The figures apply only to persons normally resident in New Zealand.

The table following indicates that 43.2 percent of the population aged 15 or over were in receipt of at least one social welfare cash benefit in the year ended 31 March 1981.

Table 7.56. SOCIAL WELFARE BENEFITS RECEIVED BY PERSONS AGED 15 YEARS AND OVER

Class of Benefit or PensionTotal Beneficiaries*Percentage of Total Population 15 years and Over*
MaleFemaleTotalMaleFemaleTotal

* New Zealand residents aged 15 years and over.

† Excludes cases where benefits were not specified.

‡ Includes War Veterans' Allowance.

None867,684429,4441 297 13177.137.056.8
Family only9,657387,240396,9000.933.417.4
National Superannuation only164,145230,469394,61414.619.917.3
Unemployment only31,71620,36752,0802.81.82.3
Sickness only9,2735,17514,4480.80.40.6
Domestic Purposes only5195,8716,393-0.50.3
Widow's only...11,89511,895...1.00.5
Invalid's only8,8416,37215,2160.80.50.7
War Pension Allowance only11,4306,58518,0151.00.60.8
Family and Domestic Purposes1,33232,71234,0410.12.81.5
Family and Widow's...4,7644,764...0.40.2
Other20,77219,26940,0441*81.71.8
Not specified4,9656,20411,169.........
    Total, usually-resident population aged 15 years and over1 130 3371 166 3642 296 704100.0100.0100.0

7.6 Social work

Department of Social Welfare objectives

The establishment of the Department of Social Welfare from 1 April 1972 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, the scope of its objectives has widened considerably. The Department aims:

  1. To provide a social work service for persons, families and communities facing social and economic difficulties with particular emphasis on the care and control of children, the social and financial independence of disadvantaged and disabled persons, and the promotion of suitable and adequate support networks.

  2. To provide assistance to approved private and voluntary organisations which embark on activities designed to implement the objectives of the Children and Young Persons Act 1974 and the Disabled Persons Community Welfare Act 1975.

The department 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 inquiry work and residential care for children and young persons.

Services for community care. Assistance is given to community organisations providing care and training in the community for the physically and mentally handicapped, and for children in need of care, 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 January 1985 the range and levels of available subsidies were as follows:

  1. Children in need of care— (i) 66% percent of capital cost of establishing residential accommodation and $54.25 per weak for each child in residence. (ii) 66% percent of capital cost of establishing day care centres and $12.30, $15.50, or $18.70 per week per child attending, depending on family income.

  2. Mentally handicapped persons—$10.95 per day for each child in residence.

  3. Physically and/or mentally handicapped persons: 80 percent of capital cost of establishing day care, sheltered workshop, and training facilities and 75 percent of cost of staff salaries.

  4. Field services: Grants to organisations providing field services for disabled people, children at risk, and their families.

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 and Development in the search for, inspection of, and purchasing of suitable properties on behalf of any organisation wishing to establish a social welfare facility, and which would be eligible for a subsidy.

Standards of care and training are set by legislation, requiring residential and day care centres to be registered, and by periodic inspection to ensure that the standards are being maintained.

7.7 Children and young persons

Social work with children and young persons. As at 31 March 1985, the number of permanent social work staff employed by the Department of Social Welfare included 672 social workers and 545 residential social workers. Casework duties include preventive work; investigations and reporting for the Children's and Young Persons Courts; supervision of children in their own homes; foster homes, institutions, and work placements; adoption 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; and inspection of children's homes run by voluntary organisations and examination of requests made by them for financial subsidies. Social workers receive assistance from about 1350 social welfare volunteers who are members of the community. These people give their time and talent to receive brief training and to become involved, under the close supervision of the department, in giving support and assistance to individuals or families encountering difficulties.

Residential care facilities include long-term training centres for difficult and delinquent children, short-term facilities providing assessment, emergency, and temporary care for older children, and 'family homes' and 'group 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. Concern for individual children may be expressed by neighbours, police, teachers, employers, doctors, solicitors and so on, or by parents themselves who are seeking advice and guidance. In some cases there will be a quick response to assistance but social workers may provide preventive oversight and guidance over several months or even 2 or 3 years if needed. 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.

Placements in adoption homes are made by social workers for children for whom placements have not been made by private persons and other organisations.

Adoption. 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. The smaller proportion of children being offered for adoption reflects a changing pattern in society, with an increase in the proportion of single parents undertaking the sole care of children.

Children's homes and child-care centres. 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 for each child in care and subsidies of up to 65% percent on expenditure for extension or replacement of buildings, or additions to facilities, can be available. 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 (for example, day nurseries and creches), have been in force since 1961. A revision of these regulations has been undertaken, and new regulations came into force on 1 April 1985.

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. Arrangements are now underway to transfer the principal responsibilities for the licensing, policy and advisory support for childcare centre services from the Department of Social Welfare to the Department of Education as from 1 July 1986.

Children and young persons proceedings. The Children and Young Persons Act 1974, which came into effect on 1 April 1975, introduced substantial changes in the procedures under which the department carries out its functions in relation to juvenile offending and other problems concerning the welfare of children.

The main thrust of the Act is to provide for young offenders to be dealt with through care, protection, and control proceedings rather than through criminal prosecutions and to provide for children to be dealt with by Children's Boards rather than by courts.

Under the provisions of the Children and Young Persons Act 1974, a legal distinction is made between children (defined in the Act as persons under the age of 14 years) and young persons (defined as persons aged 14 years but less than 17 years).

Where a young person comes to notice for offending, the matter may be dealt with by the Youth Aid section of the New Zealand Police by way of consultation between the police and a social worker.

Children's Boards deal with children coming to official notice either for offending or because they are considered to be in need of care, protection, or control.

The Youth Aid section and Children's Boards can deal with cases coming to their attention in several ways. These include warnings by the board or Youth Aid section, oversight by a social worker or Youth Aid officer, counselling of the child or young person, and counselling of the parents or guardian.

Both the Children's Boards and the Youth Aid section have the option of referring any matter to a Children's and Young Persons Court.

Table 7.57. CHILDREN'S AND YOUNG PERSONS CASES COMING TO NOTICE

YearYouth Aid Cases Not Referred to Court or Children's BoardsChildren's Board Cases Not Referred to CourtCourt AppearancesTotal NumberPercentage Change on Previous Year
19792,6282,72114,15119,500-1.7
19802,4722,56613,39718,435-5.5
19812,2742,31112,94217,527-4.9
19822,1132,76312,85817,734+ 1.2
19831,7812,11012,16916,060-9.4

The Children and Young Persons Act 1974, by making legislative provision for the Youth Aid scheme and by creating the Children's Boards, has increased the range of formal provisions by which cases can be resolved without court action. It might be expected, therefore, that virtually all disposals not involving court action will now appear in the statistics while in the past there were undoubtedly a number of informal disposals which escaped the statistical net. Thus, even in the absence of any increase in the number of cases being dealt with, the new procedures might be expected to produce an increase in the statistics for disposals not involving the courts. This in fact is what is observed; while the number of court appearances remains essentially static at around 13 000, the number of non-court disposals at first increased, going from 12 588 in 1974 to 14 930 in 1975. Recent years, however, have shown a decline, especially in Youth Aid cases.

Childrens and Young Persons Courts. The Childrens and Young Persons Courts were established by the Children and Young Persons Act 1974.

All offences except murder or manslaughter and minor traffic offences committed by those under 17 years of age are dealt with in Children and Young Persons Courts, the procedure and rules of which differ widely from those of the ordinary courts.

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 judge.

When a child or young person is in need of care, protection or control, the matter is dealt with by way of complaint. This category includes offending by children under 14 years, except where a child over the age of 10 years is charged with murder or manslaughter.

When a young person 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 an order as if a conviction has been recorded.

In the tables which follow, “Distinct Cases” relate to court appearances, the most serious or most heavily penalised of the charges against each person at one court hearing being selected as the distinct case.

Table 7.58. CHILDREN'S AND YOUNG PERSONS COURT APPEARANCES 1983*

Children's and Young Persons CourtsNumber of Appearances

* Year ended 31 December.

Appearances involving complaint under Children and Young Persons Act 19742,010
Appearances involving charges for offences10,159
              Total appearances12 169

Table 7.59. CHILDREN AND YOUNG PERSONS COURT APPEARANCES BY TYPE OF COMPLAINT AND DECISION

Type of Complaint*19831984
MalesFemalesTotalMalesFemalesTotal

* Excludes complaints dismissed, withdrawn or struck out.

† Includes failure to exercise parental duty.

‡ Includes offending by children.

§ Includes orders to come up for sentence if called upon and referrals to Children's Boards or District Courts.

Neglect or ill treatment292339631276285561
Beyond control7844001,1846834161,099
Truancy65691346164125
Breach of supervision order553388402060
              Total1 1968412 0371 0607851 845
Court decision
    Admonished and/or discharged256114370204123327
    Admonished and returned to care or supervision941314519
    Supervision order565425990500375875
    Committed to care of Department of Social Welfare319279598291249540
    Others§471966513384
              Total1 1968412 0371 0607851 845

Table 7.60. CHILDREN AND YOUNG PERSONS COURT OFFENCE CASES

Type of Offence1980198119821983

* Includes interfering with vehicle.

† Includes forgery and uttering.

‡ Includes traffic offences and offences against decency.

Total Charges
Sexual offences112606772
Assaults873788911944
Other offences against the person228246255291
Burglary, and breaking and entering5,6855,4116,8906,224
Theft, receiving, and fraud6,9846,1727,0736,096
Unlawful conversion*4,6664,2074,6964,142
Wilful damage and arson819905912864
Other offences against property163265219158
Offences against good order‡3,3613,0783,1712,643
Other offences2,3812,0182,1391,780
              Total25 27223 15026 33323 214
Distinct Cases
Sexual offences77443948
Assaults736528638654
Other offences against the person160168165214
Burglary, and breaking and entering2,5002,0032,6492,380
Theft, receiving, and fraud3,3503,0263,3572,989
Unlawful conversion of vehicles *1,6461,7651,9581,638
Wilful damage and arson433493515485
Other offences against property54686969
Offences against good order2,0201,9481,9151,629
Other offences1,4281,3911,5421,187
              Total12 40411 43412 84711,293

Table 7.61. CHILDREN AND YOUNG PERSONS COURT APPEARANCES FOR OFFENDING: DECISIONS MADE

DecisionTotal ChargesDistinct Cases
198119821983198119821983

* Includes periodic detention.

† Includes probation, ordered to come up for sentence, convicted and discharged and also, from 1 February 1981, community service.

Dismissed or withdrawn2,2092,5192,2301,1911,4101,218
Admonished and/or discharged2,9674,0214,2321,8692,3142,494
Committed to care of Department of Social Welfare832844674247269197
Placed under supervision5,1985,9814,6732,2802,4851,923
Committed to an institution*3,5034,2324,2451,07812941,327
Fined3,4104,0663,1292,4542,9012,363
Otherwise dealt with5,0314,6704,0312,3152,1741,771
              Total cases, offending23 15026 33323 21411 43412 84711 293
Males19,85522,63119,7049,50710,7669,372
Females3,2953,7023,5101,9272,0811,921

Table 7.62. CHILDREN'S AND YOUNG PERSONS COURT TOTAL DECISIONS 1983

DecisionNumber
Discharged, or admonished and discharged2,244
Admonished with some other penalty (fine, costs, restitution, forfeiture of driving licence, etc.)2,722
Admonished and returned to the care of Director-General232
Placed under supervision of a social worker3,158
Placed under guardianship of Director-General689
Referred to District Court or High Court and given an adult sentence2,141
Other order made983
              Total12 169

It can be seen from the table that the Children's and Young Persons Court resulted in a total of 689 children and young persons being placed under the guardianship of the Director-General during 1983. The corresponding figure for 1982 was 780. A further 3158 children and young persons were placed under the supervision of a social worker. This compares with 3644 in 1982.

Legal representation. An interim report, Working Party on Access to the Law, published by the Justice Department in 1982, expressed concern over inadequate legal representation in the Children's and Young Persons Court. The limitations of the existing schemes were highlighted by the reduction in August 1981 of the duty solicitor scheme. It reverted to the original concept, which permitted only those in police custody or on police bail, charged with an imprisonable offence, to see the duty solicitor. The dispositions available under the Children and Young Persons Act mean that a large number of those appearing before the Children's and Young Persons Court face the possibility of guardianship orders, but are not eligible to see the duty solicitor. This possibility may be equally traumatic for the parents who may not be represented either. In fact their position is, in reality, worse, because being eligible for civil legal aid only, they are faced with applying for legal aid through a system which is not geared to the quicker disposal of cases in the Children's and Young Persons Court.

To overcome this, the working party recommended that a pilot scheme be established in the Auckland Children's and Young Persons Court. If successful the scheme would be extended to other major urban children's courts and children's courts in smaller centres. The scheme would restrict the number of lawyers paid by government schemes in the court, and would ensure a lawyer was always present. Major advantages of the scheme would be continuity in the child-lawyer relationship, higher and more consistent standards of representation and the establishment of contacts between advocates and other agencies involved with the court. The pilot scheme which is to run for a period of 6 months, commenced operation in November 1984. It is being monitored and evaluated. A further recommendation of the Working Party on Access to the Law was for the scope of the Duty Solicitor scheme to be extended in the Children's and Young Persons Courts where the Pilot Scheme is not operating. From 1 December 1984 the scheme was extended to give coverage to ail appearances in the Children's and Young Persons Court except for those appearing on complaints.

Children in care. There are a number of ways in which children come into the department's care. The majority are placed under the guardianship of the Director-General by order of the Children's and Young Persons Court because the court considers that either a child is in need of care and protection or a child's behaviour is so difficult or disturbed that he or she cannot be effectively managed in the home situation. In addition to those under guardianship, there are a number of children placed in the department's care by agreement with the parents under the provisions of section 11 of the Children and Young Persons Act 1974. Parents seeking the department's help in this way do so for a variety of reasons, such as their own serious ill health, family break-up and other pressures within the family, or their desire to seek special care for a disturbed or difficult youngster. The department also provides temporary care for a number of children because a court has ordered that they be remanded for a short period in the department's custody, usually for assessment and consideration of their long-term needs pending a final Court decision.

The care and oversight of children in the department's care is one of the major responsibilities of the department's social workers. On the Director-General's behalf they are responsible for arranging placements for children in care and maintaining oversight of them.

At 30 November 1984 a total of 6155 children and young persons were under the care and control of the department. The reasons for their being placed were as follows:

Placed under guardianship of the Director-General by court order4,758
Under control by virtue of an agreement with parents832
On court remand, postponement, warrant, etc.565
              Total6 155

Children and young persons may come into care at any time from soon after birth to the age of 16 years. (Guardianship orders under the Children and Young Persons Act 1974 are not made in respect of young people over the age of 16 years.) Discharge from care is automatic at the age of 20 years but in practice, and depending on their circumstances, most young persons are discharged with the approval of the Director-General at a much earlier age. Many return, after a period away from home, to the care of parents or members of their extended family and are discharged as soon as the Director-General is assured that they are no longer in need of assistance.

The majority of children and young persons in care are cared for in the community and in 1984, 61.6 percent were living in foster homes, departmental family homes, in boarding schools or in the homes of relatives and friends. Fourteen percent were with their own parents as a trial to possible discharge; 9.9 percent were at work.

A number of young persons, especially those in older age groups, come into care because of their inability to cope with community expectations. This is often manifested in offending against the law. With help and guidance, some of these settle in the community but some have to be admitted to the department's various institutions, usually after assessment and trial in boys' and girls' homes. A proportion go on to institutions under the control of the Justice Department. In all, 16.4 percent of the wards in care are in institutions.

Table 7.63. CHILDREN AND YOUNG PERSONS UNDER THE CONTROL OF THE SOCIAL WELFARE DEPARTMENT, 30 NOVEMBER 1984

Placement of ChildrenNumberPercentage

Source: Department of Social Welfare.

In foster homes2,67243.4
Placed with parents for trial period85313.9
Living with and supported by relatives1061.7
In employment (excluding those with relatives, etc.)6089.9
In residential colleges2444.0
Receiving tertiary education50.1
In Social Welfare short-term institutions2093.4
In Social Welfare family homes77212.5
In private institutions2063.3
In Department of Education special schools631.0
In hospitals100.2
In psychiatric hospitals450.7
On probation430.7
In Social Welfare extended care institutions2614.2
In youth prison or corrective training centres240.4
Adult Prison-0.0
In Police custody30.0
Absent without leave250.4
              Total6 155100.0

Further information

Benefits, Taxes and the 1985 Budget—Department of Social Welfare.

Cancer Data—National Health Statistics Centre, Department of Health (annual).

The Extra Years: Some Implications for New Zealand of an Ageing Population—Social Advisory Council (1984).

Hospital and Selected Morbidity Data—National Health Statistics Centre, Department of Health (annual).

Hospital Management Data—National Health Statistics Centre, Department of Health (annual).

Justice Statistics—Department of Statistics (annual).

Mental Health Data—National Health Statistics Centre, Department of Health (annual).

Mortality and Demographic Data—National Health Statistics Centre, Department of Health (annual).

The Public Health (Parl. paper E, 10).

Report of the Abortion Supervisory Committee (Parl. paper E. 28).

Report of the Alcoholic Liquor Advisory Council (Parl. paper E. 26).

Report of the Department of Maori Affairs (Parl. paper E. 13).

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

Report on the Government Superannuation Fund (Parl. paper B. 20).

Report of the National Provident Fund Board (Parl. paper B. 19).

Review of Children and Young Persons Legislation: Public Discussion Paper—Department of Social Welfare (1984).

The Welfare State? Social Policy in the 1980s—New Zealand Planning Council (1979).

Chapter 8. 8 Education

8.1 Trends in education

For a period of 33 years from 1945, education in New Zealand was marked by rapid growth. In 1945, school, college, and university enrolments combined were 328 000 or 19.3 percent of the population. By 1978 the combined full-year enrolments had more than tripled with enrolments reaching over 1 million or 32.2 percent of the population. The large growth in enrolments over that period was due to increased births through to 1971, a tendency of pupils to stay on longer at secondary school and also the introduction of technical institutes and community colleges.

Falling rolls have affected primary schools since 1975 and have resulted in a reduced demand for primary teachers and as a consequence a reduction in intake to teachers colleges starting in 1982. It is expected that falling rolls will continue to occur in primary schools until 1991.

Secondary schools are being affected by falling rolls. At 1 July 1985, the secondary roll was 230 970, some 687 fewer than 1984.

In 1985 the Government commenced phased introduction of a 1:20 teacher/pupil ratio in junior classes of primary schools as well as improving staffing in kindergartens and secondary schools.

Table 8.1. STUDENT NUMBERS AT 1 JULY

Type of Institution198319841985

* Includes technical institutes and community colleges.

† At secondary schools, 1 intermediate and Correspondence School.

‡ Teachers college students on studentships are included in university tables.

Source: Department of Education.

Pre-school
    Non-profit-making groups2,3843,0533,041
    Playcentres16,17015,51414,923
    Kindergartens40,89540,59841,170
    Pre-school classes at primary schools7598531,044
    Correspondence School495458488
 58,31960,47660,666
Primary (Juniors to Form 2)
    Primary schools372,042362,885352,954
    Intermediate schools and attached Intermediate77,73376,10372,817
    Area and district high schools (Primers to Form 2)6,3486,3446,580
    Forms 1 and 2 at Form 1 to 7 schools7,4217,3217,160
    Correspondence School1,3831,4811,599
    Departmental special schools324304224
    Department of Social Welfare schools934940
    Royal New Zealand Foundation for the Blind696861
    Private primary schools10,67010,79810,991
 476,083465,353452,426
Secondary (Form 3 to Form 7)
    State Form 3 to Form 7 schools201,685201,792200,564
    Forms 3 to 7 at State Form 1 to 7 schools13,94814,02713,954
    Area schools (Form 3 to Form 7)2,9173,0363,199
    Correspondence School8859691,053
    Departmental special schools290406370
    Department of Social Welfare schools388357296
    Private secondary schools10,63511,07011,534
 230,748231,657230,970
    Technical Correspondence Institute29,89929,75731,949
    Institutes*
      Full-time students7,9568,1958,356
      Part-time students37,58436,21735,194
    Classes at other institutions
      Part-time students69,54564 488x52,701
 144,984138 657x128,200
Teachers colleges
    Teacher training3,3722,5512,644
    Post graduate specialist courses575459
    Other full-time courses75123141
 3,5042,7282,844
University institutions—
    Full-time internal students33,14433,87534,431
    Part-time internal students13,32613,57813,368
    Extramural students10,04310,78912,069
 56,51358,24259,868
              Total970 151957 113934 974
    Percentage of population at 30 June30.329.628.7

Table 8.2. TEACHING STAFF

InstitutionPositions (Full-time Equivalents)Full-time Staff 1985
19841985MaleFemaleTotal

* All staff is part-time.

†Includes teachers at full and contributing primary schools, intermediates, board, special schools, attached intermediates, teachers of special classes, special needs teachers, primary teachers at correspondence school and reading recovery teachers.

‡Includes advisers, psychologists, speech and reading teachers, and teachers not employed under staffing schedules such as visiting teachers, itinerant teachers, museum and zoo teachers, REAP, pool relief, physiotherapists, etc.

§Includes all staff at F1-7 schools.

||Includes staff at Department of Education, Social Welfare and Justice special schools.

¶ASTU means Advanced Studies for Teachers Unit.

Source: Department of Education.

Pre-school—
    Playcentres*254250.........
    Kindergartens1,2081209151,1671,182
Primary—
    State18,86618,6535,91311,97217,885
    Private306344135168303
    Supporting services974982320477797
    Area schools542579311251562
    Composite Private Schools610579198308506
    Manual training689683326340666
Secondary—
    State§13,73913,9307,4415,21712,658
    Private415437278109387
    Departmental special ||18218960112172
Tertiary
    Technical institutes2,9723,1031,8197922,611
    Teachers colleges376381275103378
    Universities2,9583,4102,4894462,935
    ASTU11116511

Teacher pupil ratios are calculated by dividing the number of pupils at 1 July in each branch of education by the entitlement for teachers for the appropriate branch of the service. With primary schools the entitlement includes all classroom teachers plus support staff such as advisers, psychologists, speech therapists, itinerant teachers, etc.

Projected students. A projection of July education rolls, made in 1984 by the Department of Education and based on policies and trends at the time, is set out in Table 8.3.

Table 8.3. PROJECTED STUDENTS

PeriodRolls
KindergartenTotal PrimaryTotal Secondary

Source: Department of Education.

Actual198541,170452,426230,970
Projected (1984 base)199042,400416,545204,890
 199543,400421,935179,690

8.2 Administration of education

Department of Education

The Education Act 1964 provides for free and secular education in State primary and secondary schools. For all children between the ages of 6 and 15 years, education is compulsory. 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 head office is in Wellington and there are 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 of Education for the 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.

The control and management of State primary schools is the responsibility of the 10 education boards. State secondary schools are controlled by local secondary school boards. These boards 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.

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 and Sixth Form Certificate assessment. 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.

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. 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 and community college councils. Technical institutes, and community colleges, including the Technical Correspondence Institute, are controlled by councils with members representing business and industry, local authorities, the universities, and education and community interests.

Community colleges. Amendments to the Education Act in 1974 created a new category of institution, community colleges, designed to meet continuing education needs particularly in provincial centres. They are governed as technical institutes. The first community college was opened in Hawke's Bay in 1975. At 1 July 1985, 8 community colleges were in operation.

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 universities, and of the teachers' organisations.

Private schools. At 1 July 1985 there were 106 private primary and secondary schools conducted 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. Finance and other assistance is provided by the State including 50 percent of teacher salaries. Government controls are applied before new private schools can be built, and there is a requirement that after a transitional period, new teacher entrants to private 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. Most of the schools now integrated are Roman Catholic schools.

Other Educational Bodies

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 (more than 100 research monographs and numerous shorter studies in education) include critical surveys of major policy issues in New Zealand education and accounts of outstanding experiments in school practice. The council also publishes 2 periodical publications; the New Zealand Journal for Educational Studies, and a special research information package for teachers called Set. Set has, since 1980, been published jointly with the Australian Council for Educational Research in 2 editions, one for Australian, and the other for New Zealand schools and 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 unit to produce achievement tests designed specifically to suit the curricula of New Zealand schools. Known as the Progressive Achievement Tests, they are now used extensively in schools throughout this country, and also in Australia. Recently, the Measurement and Evaluation unit has expanded its activities in adapting and revising several well-known overseas tests for New Zealand conditions.

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, families, women and parents, the supply of qualified people in the community, the assessment of written English, teaching practices, Maori education, and adult education, early childhood education, and services for children with special needs. The council also acts as a clearing house for information on educational matters and maintains 7 local institutes for educational research in Auckland, Wellington, Christchurch, Dunedin, Palmerston North, Hamilton, and Suva (Fiji).

Maori Education Foundation. The Maori Education foundation was established in 1961 by Act of Parliament, 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 $3,000,000. The principal purpose for which the Board of Trustees is empowered is to apply the income of the foundation to the education and vocational training of Maoris. This includes the provision of grants to pre-school groups and the employment of a pre-school officer; sponsorship of the 4 annual speech contests; grants to secondary school pupils, and to students attending university or other tertiary institutions of similar status; the provision of scholarships and fellowships to students undertaking graduate and post-graduate study in New Zealand and overseas; and grants to students undertaking research or study which will be of ultimate benefit to the Maori people.

In the 1985 academic year the foundation expended $525,000 on grants for pre-school education, secondary education and for grants to students attending tertiary institutions. In addition the foundation continued to support the teaching and development of Maori language with grants totalling $355,000.

Pacific Islands Polynesian Education Foundation. In 1972 the Pacific Islands Polynesian Education Foundation was established to assist Pacific Island students who reside permanently in New Zealand. The aims and objectives of the foundation are similar in most respects to those of the Maori Education Foundation, and assistance is also given to all levels of education. In the 1985 academic year $36,000 was spent on grants.

International education. The Department of Education provides technical advice to the Ministry of Foreign Affairs on education activities under New Zealand's Overseas Aid Programme. This includes advisory visits to Pacific Island schools preparing students for New Zealand examinations. In 1985, 160 such schools presented 10 550 candidates for School Certificate and 110 schools presented 5036 candidates for University Entrance. The department assists with the appointment of some 30 New Zealand teachers to Pacific Island schools each year.

In conjunction with the Ministry of Foreign Affairs, the Department of Labour and the University Grants Committee, the Department of Education provides advice to Government on policy for the admission of private foreign students to New Zealand educational institutions. Since 1980, the department has administered the collection of the fee which foreign students have been required to pay for their education in New Zealand universities and technical institutes.

The Department of Education administers a range of bilateral educational and cultural exchange activities. Each year, some 30-40 teacher exchanges are arranged between New Zealand and both the United Kingdom and Australia. From 1986 there will also be a small number of exchanges with Ontario, Canada. The New Zealand-Japan Exchange Programme provides financial and administrative support for a wide range of activities for school teachers, artists and scholars and the Agreement for Industrial, Technological and Scientific Co-operation (SINTESD) between New Zealand and Singapore enables activities with a commercial orientation in technical education and training. Other activities concern overseas in-service training for teachers of French and German, the French Language Assistants Scheme, and courses for teachers of English and technical specialists in China.

New Zealand is a member of various intergovernmental organisations concerned with education. It thus participates in the education activities of the United Nations Educational, Scientific and Cultural Organisation (UNESCO), the Commonwealth, the South East Asian Ministers of Education Organisation (SEAMEO), and the Organisation for Economic Co-operation and Development (OECD). New Zealand participates in the work of the Education Committee of OECD and is a member of the Centre for Educational Research and Innovation (CERI) and the Programme on Educational Building. The New Zealand Minister of Education also participates in the meetings of the Australian Education Council.

Public expenditure on education

Table 8.4 shows the net expenditure (actual expenditure less recoveries) from public funds on each branch or service of education for the years ended 31 March 1984 and 1985.

Table 8.4. EXPENDITURE ON EDUCATION

Item1983-841984-85
Net ExpenditureNet ExpenditurePercentage of Total

Source: Department of Education.

 $(thousand)%
Administration and general—
    General administration15,60317,4731.0
    Examinations9231,2680.1
    Research1,4491,4670.1
                Subtotal17,97520,2081.2
Pre-school education—
    General administration9259440.1
    Free kindergartens20,61921,7231.2
    Playcentres1,9661,8820.1
    Other pre-school agencies425356-
                Subtotal23,93524,9051.4
Education support services—
    General administration3,0392,4640.1
    School inspection service6,3446,5160.4
    Advisory and guidance service20,04920,7391.2
    Curriculum development and resources6,4345,9870.3
    School transport49,76252,8133.1
    Recruitment of teachers262281-
                Subtotal85,89088,8005.1
Operations of schools—
    State primary schools540,118548,12131.7
    State secondary schools399,914422,17224.4
    Correspondence school11,54612,0920.7
    Integration of private schools97563..
    Assistance to private schools12,72613,1780.8
    Special education32,79736,0172.1
    School buildings74,87070,4934.1
                Subtotal1,072,9461,102,13663.8
Teacher education—
    General administration303328-
    Pre-service training40,03330,8421.8
    In-service training3,3584,1030.2
    Teachers college buildings-212255-
                Subtotal43,48235,5282.0
Senior technical and community education—
    General administration1,0861,2280.1
    Technical institutes and community colleges105,368108,6366.3
    Assistance to students11,50913,4740.8
    Other continuing education agencies and programmes6,9258,0110.5
    Technical institute and community college buildings15,52016,3900.9
                Subtotal140,408147,7398.6
University education—
    Operations of universities202,024210,24812.1
    Assistance to students45,46551,0563.0
    University buildings26,23127,2691.6
                Subtotal273,720288,57316.7
National Library—
    Operation of National Library12,60413,7560.8
    National Library buildings3,3497,0020.4
                Subtotal15,95320,7581.2
                Total1,674,3091,728,647100.0

Table 8.5. EDUCATION EXPENDITURE RELATED TO GOVERNMENT EXPENDITURE AND POPULATION

Year Ended 31 MarchNet Education ExpenditureAs a Percentage of Net Government ExpenditureAs a Percentage of Gross Domestic ProductExpenditure Per Head of Mean Population
Current SalariesBuildingsTotal

Source: Department of Education.

  $(million) percentpercent$
19811,179.4112.61,292.014.1x5.3x412.17
19821,376.0117.21,493.213.35.1x471.25
19831.520.0118.81,638.812.95.1x513.38
19841,553.4120.91,674.311.84.9x517.93
19851,607.2121.41,728.611.34.5531.17

An international comparision of public expenditure on education as a percentage of gross national product is given in the following table for selected countries. Educational expenditure in many countries has been rising twice as fast as national income. These figures are taken from the UNESCO Statistical Yearbook.

Table 8.6. INTERNATIONAL COMPARISON OF PUBLIC EXPENDITURE ON EDUCATION

CountryYearPublic Expenditure on Education as Percentage of G.N.P.As Percentage of Total Government Expenditure

Source: Department of Education.

Australia19805.914.8
Austria19816.08.2
Canada19807.717.3
Denmark19807.09.5
France19805.017.8
Germany, West19794.710.1
Italy19795.111.1
Japan19805.819.6
Netherlands19808.4..
New Zealand19815.414.2
Sweden19819.513.9
United States19816.9..
United Kingdom19805.813.9
U.S.S.R.19817.01.0.9

International comparisons need to be treated with reserve because of the differing education systems and measures of expenditure.

Education buildings

Table 8.7. EXPENDITURE ON EDUCATION BUILDINGS 1984-85

 $(m)

Source: Department of Education.

Universities (including equipment)27.3
School buildings70.5
Technical institutes16.4
Teachers colleges0.2
Pre-school buildings1.1
National Library7.0

Pre-school. As at December 1985 there were 550 kindergartens and 681 playcentres in operation. Six new kindergartens were opened during 1985, and 1 kindergarten building was relocated and extensively upgraded. It is anticipated that 9 new kindergartens will open next year.

During the year, purpose-built buildings were provided for a number of existing playcentres which had been previously operating in unsatisfactory accommodation. In 1986 several of the new buildings to be provided for existing playcentres will be funded at full cost to the Government. Full use is being made of the increased level of subsidy assistance available to playcentres.

Primary. During 1985 education boards' capital works programmes continued to concentrate on the remodelling and upgrading of classroom and administration accommodation, with particular attention to the improvement of resource and withdrawal spaces in keeping with modern teaching requirements.

The ongoing replacement of old buildings also continued through the year while improvements were made to a number of school grounds and several heating systems in need of attention.

To make best use of available resources, existing relocatable accommodation has been used where possible.

Secondary. The programme of replacement and upgrading of older school buildings continues with the Christchurch Girls High School which in 1986 will transfer to its replacement school built on a new site at Deans Avenue. Stage 1 of the Wellington East Girls College project, the science block, was opened in September and new services reticulation are now being brought to the site. Also, the Government has approved proposals for the structural strengthening and refurbishing of the old main buildings at both Southland and Waitaki Boys high schools and the consolidation of Tamaki College on the one site. A library, the first stage of the Tamaki proposal, is now underway.

Construction began or was completed during 1985 on a number of gymnasiums and auditoriums which can cater for both school and community purposes. The schools involving provision of gymnasiums were Auckland Girls Grammar, Avonside Girls, Edgecumbe, Feilding Agricultural, Hurt Valley Memorial, Linwood, Nelson College for Girls, Napier Boys, Stratford, Waitakere, Wanganui Boys and Wellington Girls. Provision of auditoriums included Aotea, Ashburton, Awatapu, Birkdaie, Bream Bay, Orewa, Parkway and Rotorua Lakes high schools. Major additions of teaching spaces have been necessary to better cater for roll numbers at Greymouth, Kaiapoi, Mahurangi, Massey, Orewa, Tauranga Girls and Waitakere high schools.

New Forms 1 to 7 high schools, to replace the existing area schools, are being established at Waiheke Island and Wanaka. Roll growth has determined the change in status with Waiheke to begin operating within existing accommodation on its extended site from February 1986.

A contract for construction of a new school on the Plantation Road site at Wanaka is to be let early in 1986. The Otago Education Board aims to have the school open in 1987.

Tertiary. Major building projects completed at technical institutes and community colleges during 1985 included an automotive workshop at Carrington Technical Institute, a new boilerhouse at Auckland Technical Institute together with a classroom block on the North Shore campus, a tourism/catering block at Waiariki Community College, administration blocks at Bay of Plenty and Hawkes Bay Community Colleges, and a classroom block at Taranaki Polytechnic.

The most significant project commenced during 1985 was the Parumoana Community College complex at Porirua. This involved an accelerated building programme to enable the college to open to students in February 1986. Other new works started in 1985 included an administration block at Northland Community College, a classroom block extension at Waikato Technical Institute, an engineering block and an administration/classroom block at Manawatu Polytechnic, a maintenance workshop at the Central Institute of Technology, a classroom block at Nelson Polytechnic, an administration block at Christchurch Polytechnic, an engineering block at Otago Polytechnic and an administration/library block at Southland Polytechnic.

Although there was no significant building activity at teachers colleges during 1985, a series of discussions was held with all colleges concerning future accommodation requirements following the major review of 1982-83 when surplus accommodation was made available to other users.

Universities. Major reconstruction of the Old Arts Building, University of Auckland, began in 1985 and will continue through 1986. Additional accommodation for the Auckland School of Engineering was authorised for completion by the end of 1986.

New buildings were authorised for Agricultural/Horticultural Practical Teaching and Business Studies at the Massey University and construction will begin early in 1986.

Construction of an additional floor on the Botany/Geology Building at the University of Canterbury began this year and authority was given for a similar development on the Modern Languages Building early in 1986.

8.3 Pre-school, primary and secondary education

Pre-school education

Sessional programmes are provided by kindergartens affiliated to the New Zealand Free Kindergarten Union and by playcentres affiliated to the New Zealand Playcentre Federation.

Some childcare centres and Te Kohanga Reo provide sessional programmes but generally such centres provide full day care and education programmes.

Childcare centres are administered by a variety of groups including community and church groups, voluntary agencies and private commercial operators. The New Zealand Childcare Association, the New Zealand Licensed Childcare Centres Federation and the Associated Childcare Council are organisations representative of childcare interests.

Te Kohanga Reo is of recent origin and has been established on the initiative of Maori people to provide an educational environment in which children can learn Maori language and Maori cultural values. Their national organisation is the Te Kohanga Reo Trust.

Additional pre-school services are provided by the Department of Education through early childhood classes in primary schools, a Correspondence School service and special groups for handicapped children attending kindergartens and playcentres.

A large number of family playgroups provide a less formal service for children and their families on a local basis.

Funding and assistance. Kindergartens and playcentres receive financial assistance from the Government through the Department of Education. Grants are paid to assist with administration and operating costs and an equipment subsidy at $2—$1 is available. The cost of new buildings is subsidised on a $4—$1 basis and the costs of maintenance are met through education boards. Kindergarten teachers' salaries and training are paid by the Government whilst playcentre associations receive grants for training purposes. A number of small non-profit-making pre-school education groups are also eligible for funding from the Department of Education at the same sessional rate as for playcentres. All other groups at present registered with the Department of Social Welfare are eligible for grants from that department for sessions held with trained staff, or staff in training, and may also attract childcare subsidies. Establishment grants are also available to new community groups.

The Department of Education has a staff of professional officers in each education board district to give advice and guidance to any group or individual involved in early childhood care and education. The District Officer (Early Childhood Education) operates a pool of basic equipment in each district which may be borrowed by small pre-school education groups.

The Department of Social Welfare has a staff of social workers specialising in childcare who are also available for advice and guidance.

From 1 July 1986 administrative responsibility for childcare centres will be transferred to the Department of Education. Specialist Social Worker and Education Officers (Early Childhood Education) will then form a single service.

The Department of Education will take over responsibility for registering childcare centres and will administer the establishment grants, trained staff grants and training incentive grants, at present the responsibility of the Department of Social Welfare.

Primary education

Entry into a primary school is compulsory at 6 years of age, but it is common practice for children to start formal schooling at the age of 5 years. If living in an isolated area, a child may be enrolled with the primary department of the Department of Education's Correspondence School. The final 2 years of the primary course, Forms 1 and 2, may be taken at a full primary school, an intermediate school, an area school, or a Form 1-7 school depending on where a child lives. On completing Form 2, usually after 8 years school attendance, a child normally enters Form 3 of a secondary school, or alternatively Form 3 in an area 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 covers English (including oral and written language, reading, spelling and handwriting), mathematics, social studies, art and crafts, science, physical education, health education and music. Maori language is taught in some schools. At the Forms 1 and 2 levels, the curriculum includes workshop craft and home economics which are available to both girls and boys. For some children at these levels the programme includes French.

Teachers have the assistance of advisers in a variety of fields, including science, physical education, art and crafts, reading, mathematics, music, Maori language programmes, and English language programmes for Maori and Pacific Island children. Itinerant advisers 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, advisers on deaf children, and resource centres for the visually handicapped. In addition there are classes for physically handicapped, intellectually handicapped, educationally retarded, maladjusted and backward children. Primary schools receive grants for general running costs, e.g., cleaning and sanitation, administration, class materials, maintenance of buildings and equipment for library books, free textbooks, special purposes, swimming pools and manual training. Grants are paid to education boards which then distribute them in accordance with scales determined by them which provide for the particular needs of their area.

The basic equipment scheme provides grants to education boards to enable them to supply all schools with consumable items of art and craft and infant apparatus, equip new school accommodation and upgrade, repair and replace equipment.

Primary schools.Table 8.8 sets out the number of schools providing education for children at the primary level. The reduction in the number of primary schools as indicated in this table can be attributed to the integration of many private religious schools.

Table 8.8. PRIMARY SCHOOLS

 19811982198319841985

* These schools also cater for students at the secondary level of education.

Source: Department of Education.

State Full Primary1,0471,0851,1421,1351,129
State Contributing Primary9819991,0231,0221,022
Intermediate and Attached Intermediate Schools149161170169169
Private Primary257185585863
Composite* Private Schools2219343333
Departmental* and Social Welfare Special Schools2525252526
Special Schools* under Board Control6362626058
Correspondence School *11111
Area Schools*3434353536
F1-7*4445525252

Table 8.9. PRIMARY SCHOOL ROLLS AT 1 JULY

Class Level19841985
BoysGirlsTotalBoysGirlsTotal

Source: Department of Education.

Unclassified1,3129452,2571,4449972,441
Infants58,88855,733114,62158,75255,547114,299
Standard 127,46925,88253,35126,08124,81450,895
Standard 227,73026,07953,80927,64626,06053,706
Standard 328,94527,76556,71027,68626,10753,793
Standard 430,42629,03959,46528,97527,66956,644
Form 131,38129,84461,22530,40229,16059,562
Form 232,56631,34963,91531,27029,81661,086
              Total238 717226 636465 353232 256220 170452 426

Table 8.10. SIZES OF GENERAL CLASSES AT PRIMARY SCHOOLS AT 30 SEPTEMBER

YearNumber of Pupils
0-1920-2425-2930-3435-3940*Total
Classes%Classes%Classes%Classes%Classes%Classses%

* Includes general classes at State full contributing, intermediate, attached intermediate and area schools. In 1985 there were 717 special classes at State schools: 703 with 0-19 pupils, 5 with 20-24 pupils and 9 with 25-29 pupils.

Source: Department of Education.

19822,02612.12,50214.94,88529.26,01835.91,3027.8170.116,750
19832,15612.92,37814.24,64427.66,12936.51,4588.7.100.116,775
19842,17013.22,38414.54,47227.25,96636.31,4088.6150.116,415
19852,26214.22,66716.74,19126.25,62535.21,2367.770.015,988

Maori pupils. At 1 July 1985 there were 81 416 Maori children attending State primary schools and 285 attending private primary schools.

Secondary education

The present secondary school curriculum is under review by a Ministerial Committee of Inquiry and it is likely that significant changes will be made. Existing 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 and University Entrance 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.

Table 8.11 shows the number of schools providing secondary education for each of the latest 5 years (figures exclude the secondary department of the Correspondence School). The decrease in the number of private secondary schools and the increase in State secondary schools is due to integration.

Table 8.11. SECONDARY SCHOOLS

YearNumber of Schools with Secondary PupilsTotal
Forms 1-7Forms 3-7Area SchoolsDepartmental and Board Special SchoolsPrivate Schools

Source: Department of Education.

198145226342588418
198252241342564416
198352264352949419
198452263352747424
198552264362650428

At 1 July 1985, of the 316 State Form 3-7 and Form 1-7 secondary schools, 215 were co-ed, 48 boys only and 53 girls only. Most of the private schools are single-sex schools.

Maori pupils. At secondary school at 1 July 1985, an estimated 31 193 Maori pupils were receiving secondary education. This number comprised 30 532 pupils attending State secondary schools and 661 pupils attending private secondary schools.

Secondary school hostels. In 1985 there were 71 hostels for State secondary schools and 20 private schools had hostel accommodation.

Table 8.12. SECONDARY SCHOOL LEAVERS: ATTENDANCE AND ATTAINMENTS

Year of AttendancePupils
19831984

Source: Department of Education.

First461641
Second4,1324,973
Third14,27016,974
Fourth20,92922,727
Fifth15,66816,829
Sixth and over597883
              Total56 05763 027
University Scholarship190202
University Bursary5,4885,849
Higher School Certificate3,3873,329
University Entrance8,8529,708
Sixth Form Certificate878,210
School Certificate (three or more subjects)5,4586,989
School Certificate (one or two subjects)6,6217,719
No formal national academic attainment18,03421,021
              Total56 05763 027

Table 8.13. MAORI SCHOOL LEAVERS: QUALIFICATIONS GAINED

AttainmentYears of Attendance of School Leavers* During or at the End of 1984
1st Year2nd Year3rd Year4th Year5th Year6th YearTotal
MFMFMFMFMFMFMFGrand

* Does not include deceased or students leaving to attend another secondary school.

Source: Department of Education.

University Scholarship        51  516
University Bursaries examination        7653668259141
Higher School Certificate        94851915113100213
University Entrance      901301191435123260296556
Sixth Form Certificate      21836520119622234415841,025
Three or more School Certificate subjects    107851361993233 2275319594
Two School Certificate subjects    8185106136302631220248468
One School Certificate subject    156125159171271711343314657
No attainment169931,0199021,3801,25653855443521113,1502,8686,018
              Total169931 0199021 7241 5511 2471 555627606103824 8894 7899 678

Annual examinations

School Certificate. The School Certificate Examination conducted by the Department of Education is taken by the majority of pupils at the end of 3 years of secondary education. The course of each candidate must include English, although the student is not required to sit the examination in that subject. A candidate may enter the examination in any number of subjects up to 6 and is credited with passes in the individual subjects in which he or she is successful.

Table 8.14. NUMBER OF CANDIDATES ENTERING SCHOOL CERTIFICATE

YearNew Zealand School CandidatesExtra-Mural CandidatesPacific Island CandidatesAll Candidates Total No. Entered
Number Entered% of AllNumber Entered% of AllNumber Entered% of All
Source: Department of Education.
198060,47579.15,7557.510,23913.476,469
198159,70379.85,0496.710,06913.574,321
198258,73280.04,6226.310,05013.773,404
198361,03779.75,1286.710,46213.776,627
198459,70180.34,4906.010,16813.774,359

Table 8.15. SCHOOL CERTIFICATE PASS RATES FOR NEW ZEALAND SCHOOL CANDIDATES*

YearPassing at Least Four SubjectsPassing at Least One SubjectFailing all SubjectsNo. of Subjects SatSubjects PassedPercentage of Subjects Passed
Number%Number%Number%TotalAverageTotalAverage

* Based on number sitting examinations.

Source: Department of Education.

198020,71234.943,90974.115,37725.9271,7254.6143,9692.453.0
198121,76537.343,57574.614,80825.4266,4834.6147,2122.555.2
198221,74337.743,34775.214,30724.8265,9844.6147,7222.655.5
198322,12637.044,58074.615,21625.4273,1214.6150,9932.555.3
198422,46738.544,08875.614,22124.4269,3754.6151,8612.656.4

Sixth Form Certificate. These 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.

Table 8.16. PERCENTAGE OF PUPILS AWARDED SIXTH FORM CERTIFICATE BY NUMBER OF SUBJECTS TAKEN

YearNumber of Subjects
654321

Source: Department of Education.

19827.171.79.42.12.868
19839.068.59.32.53.17.7
198411.766.08.82.42.98.2

University Entrance, Bursary and Scholarship Examinations. Pupils attending certain approved schools may be accredited for matriculation purposes provided they have completed a 4 years' secondary school course. Pupils not accredited for entrance to university may qualify by passing the University Entrance Examination which is conducted by the Universities Entrance Board. The last year in which accreditation and examination procedures were conducted was 1985. Pupils in Form 6 now enter for Sixth Form Certificate only. Alternative procedures are under development for University Entrance.

The University Bursaries Examination and the University Entrance Scholarship Examination, taken by secondary school pupils usually in Form 7, 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.

8.4 Special education, and other educational facilities

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 the teachers. The Department of Education inspectors, psychologists, and other specialist advisers also help the teachers with suitable teaching programmes.

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, units and resource centres at primary schools or separate special schools for pupils who are intellectually handicapped, deaf, visually handicapped, physically handicapped, maladjusted and those young children who need careful assessment of their teaching needs as they enter primary school.

The education boards also administer special classes in hospitals, special schools in psychiatric hospitals, speech and language 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 8 residential schools—3 for deaf children (which also admit day pupils), 3 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 4 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. Advisers on handicapped children provide guidance and advice for parents and teachers of handicapped children. 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 primary and secondary school guidance staff and with all health, education, and welfare services for children. These 4 services assisted approximately 36 000 pre-school and school-age children in 1985.

Under the Community Education Initiatives Scheme, pilot groups in 3 areas of New Zealand continued a special relationship between the department, community groups, and other government agencies in helping young people with special educational needs.

In 1985 some 1900 (1689 lull-time equivalent) State teachers were employed, either full-time or part-time, in the special education and guidance services. A total of 12 005 children were enrolled in special classes and schools, and 4430 children at speech and reading clinics.

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.

Other educational facilities

Rural Education Activities Programmes (REAPs). Since they were started in 1979, 13 Rural Education Activities Programmes (REAPs) have been established. These are intended to provide extra resources to certain rural areas which are relatively isolated and sparsely populated.

The resources provided in each district contain all or most of the following elements—pre-school staffing; guidance and visiting teachers; curriculum support for teachers through advisors or seconded teachers; an organiser to develop continuing education; additional staffing in rural secondary schools; and a time allowance to develop liaison between schools.

Each REAP has a different emphasis depending on local needs. In one area emphasis in the support services is on providing advisors in music, Maori and Polynesian education, and junior classes together with support for teachers in area schools, and smaller secondary schools in the district. In another a special feature is the establishment of a co-ordinator of education outside the classroom with responsibility for developing programmes with particular emphasis on the skills associated with safety in outdoor education outside classroom activities. Another district places emphasis on developing pre-school services and the planning of co-ordinated programmes to be used by the main school and those contributing to it.

District management committees have been established as an integral part of the programmes. They have representation from pre-school interests, teacher organisations, continuing education, school controlling authorities, service organisations, and other appropriate groups. As the committees represent the interest of their districts they take a significant part in identifying local educational requirements and in co-ordinating the use of resources.

The districts in which REAPs have been set up are the Far North, Eastern Bay of Plenty, East Coast, Central Plateau, Central King Country, Taihape-Ruapehu, South Hawke's Bay, Wairarapa, Marlborough, Westport-Buller, West Coast, Central Otago, and Southland.

Transport assistance and boarding bursaries. During the 1985 school year nearly 17 percent of the total school population received transport assistance. Most pupils were conveyed by buses under contract to education boards or operated by the Department of Education.

The school transport service carried 110 617 students to and from school daily on 2983 separate transport services which covered over 45 million kilometres. A further 6859 children received private and public transport allowances. It is estimated that nearly $60 million will be spent on school transport in the 1985-86 financial year.

The value of school boarding and course bursaries will increase from $1,060 to $1,180 a year as from Term 1, 1986. The number of pupils receiving boarding bursaries during 1985 was 3106 compared with 2995 the previous year. A total of 409 course bursaries were awarded in 1985 compared with 484 in 1984.

Table 8.17 gives particulars of the number of children transported to school and the number in receipt of boarding bursaries as at 19 August 1985, according to the type of school attended.

Table 8.17. TRANSPORTATION AND BURSARIES AT 19 AUGUST 1985

Type of SchoolPupils Transported to SchoolPupils Receiving School Boarding BursariesPupils Receiving Course Boarding Bursaries

Source: Department of Education.

State primary schools64,04659-
State secondary schools53,3602,256326
Private primary schools3752-
Private secondary schools3373983
              Total117 4763 106409

Correspondence School

The Correspondence School provides courses for students in 4 major categories:

  • full-time students obtaining all their education through the school.

  • students enrolled in New Zealand secondary schools but doing one or more subjects with the Correspondence School.

  • part-time adult students who wish to continue their basic education.

  • teachers who wish to obtain additional qualifications at a tertiary level.

The school roll on 1 October 1985 was 16 889 made up of 390 pre-school; 780 primary; 565 special-needs section (pupils with significant educational handicaps); 1099 individual programme section (pupils needing remedial tuition); 1043 secondary; 4297 students at secondary schools; and 8715 part-time students.

The 1043 full-time secondary students were enrolled for a variety of reasons—248 for isolation, 119 medical, 173 New Zealand children living overseas, 115 pregnancy, 35 in institutions, 46 school suspensions, 97 school phobia and other psychological problems, and 132 adult full-time, 48 itinerant and 30 students who are also enrolled at other secondary schools.

For full-time students the school provides daily radio lessons, club activities, the publication of a school magazine, periodical exhibitions of work, and active parents' and ex-pupils' associations.

The personal link between student and school is strengthened by 9 resident teachers. based in major centres, who visit families regularly. Visits are also made by teachers from the school. At a district level, school day, and school week gatherings are held periodically. A residential school for invited pupils is conducted each year to enable children to gain the opportunity for social education by taking part in group activities. This school is of 4 weeks' duration.

The total staff of the Correspondence School in 1985 was 492. Of this number, 323 were secondary teachers, 87 primary (including those in special-needs and individual programme sections), 13 preschool, and 69 administrative staff.

Education aids

Audio production unit. With the transfer of the former Broadcasts-to-Schools function from Radio New Zealand to the Department of Education late in 1979, there has been a change in emphasis from live broadcasts to the development of a tape-bank service to schools.

Pre-school, current events, and Correspondence School programmes are contracted to Radio New Zealand. The department had 2 studios commissioned in the Correspondence School complex during 1981. These produce a wide range of audio cassettes, as part of learning packages in support of many curriculum subjects. The studios will also produce tapes for the Correspondence School.

National Film Library. The National Film Library was founded in 1942. it is now the responsibility of the Department of Education. Films are loaned to financial members and distributed to the north half of the North Island by the Auckland branch, to the South Island by the Christchurch branch, and to the remainder of the country by the Wellington branch. In addition, the Wellington office also offers a service to the Chatham Islands and to Western Samoa, Tokelau, Niue, Pitcairn, and the Cook Islands.

Each year the library spends substantial amounts on films, and stocks have been further augmented by valuable gifts from many of the diplomatic missions, from other Government departments, various organisations, and commercial enterprises. The National Film Library now holds some of the diplomatic film libraries, which are supplemented by the embassies from time to time.

In its 16 mm film section the library has approximately 46 000 prints of some 8000 titles. In 1985 films were issued to 3000 educational institutions and over 600 community organisations. During 1985 educational video cassettes were available as well as 16 mm film. The National Film Library, Head Office also offers a record and cassette loan service, a sample sheet music service and loan of the Claude Laurie Music Collection. These services are limited to educational institutions only.

The audio library has in stock some 10 000 discs and 15 000 audio cassettes. Issues during 1985 totalled over 6000.

Museums. Approximately 300 000 school children make museum visits every year. Fifteen full-time and 4 part-time museum education officers, funded by the Department of Education, assist schools to utilise the educational resources of the museum. Museum education services now cater for students from pre-school to tertiary.

School publications. The School Publications Branch publishes a wide range of titles for children, teachers and others with an interest in education. They are issued free to schools and other educational institutions, and some are on sale at Government Bookshops.

The School Journal, which has been published since 1907, is a miscellany of fiction and non-fiction of particular interest to New Zealand children. It has long been a major and popular resource for reading and teaching. Seventeen issues are published in 4 parts annually, catering for 4 broad levels in the primary school. The School Journal Story Library is a series of high-interest titles for less able readers.

Resources for children are also published on particular curriculum topics, and may be produced as booklets or kitsets.

The textbook programme includes the revised and extended Ready to Read series, for teaching children to read, and School Mathematics, a series for standards 1 to 4. Basic School Mathematics, a programme for junior classes, is currently in preparation.

The branch is the major publisher of Maori language resources. These include the miscellanies Te Wharekura and Te Tautoko for secondary schools, and He Purapura, a series for primary school children. Other publication are the Te Rangatahi textbooks, and various guide books for teachers of Maori.

Publications for teachers include syllabuses, handbooks and other materials to support developments in all subjects of the curriculum. The Education Gazette, the department's fortnightly office circular to the education service, is also published by the branch.

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.

Maori language teaching. In 1985 a total of 187 schools taught Maori at Form 3 level or above. This figure includes secondary schools, area schools and Form 1-7 schools. Two thousand and eighty-five candidates sat the school certificate Maori examination.

The 40 itinerant teachers of Maori continued their work as teacher-trainers in primary schools.

There are now 8 official bilingual primary schools and many other schools have established bilingual classes and groups.

Consolidation of rural 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 30 years. Composite schools have been developed in recent years to bring together larger concentrations of children from Form 1 and above. These are known as Form 1 to 7 schools and area schools.

The first Form 1 to 7 school was opened in 1962 and by 1985 there were 52 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 1 and 2 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 1 and 2 children remain in the country districts, too small to support a Form 1-7 school. In these districts, area schools have been established. The area school is a unified school providing education from the infant stage to Form 7 for all children in the immediate vicinity, and from Form 1 upwards for children from contributing schools over a wider area. The first area school was opened in 1959. At 1 July 1985 there were 36 of these schools.

5.8 Tertiary and continuing education

University education

There are 6 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.

Under the Universities Act 1961, the University Grants Committee was set up 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 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 equivalence of courses' standards.

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 Bursaries and Entrance Scholarships.

Students who have a Sixth Form Certificate qualification may apply for provisional entrance to a university from 1986. The majority of students complete a Seventh Form year before matriculating.

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 High Court.

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, 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. 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 determine the numbers of students to be admitted to any class or faculty in the university, and to reallocate, where appropriate, existing staffing or accommodation resources in response to changes in demand for courses.

All universities offer courses in the usual faculties of arts; science, and commerce, whilst law and music courses are available at Auckland, Victoria, Canterbury, and Otago. Most universities specialise in certain fields. The University of Otago provides courses in medicine, dentistry, surveying, home science, physical education, and pharmacy; the University of Canterbury in forestry, engineering and fine arts, and Lincoln College in topics related to agriculture and horticulture; the University of Auckland provides courses in architecture, town planning, engineering, medicine, optometry and fine arts; and Victoria University of Wellington in architecture, public administration, and social work. Massey University has courses in agriculture, horticulture, food technology, and veterinary science, as well as extramural tuition in a number of subjects to students throughout New Zealand. Joint courses leading to the degree of bachelor of education are available at Waikato, Massey, Canterbury, and Otago universities in association with the local teachers colleges.

University scholarships. The most prestigious awards for those entering university are the University Junior Scholarships. These scholarships are tenable for 3 to 5 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 $500 a year and is tenable with a tertiary study grant (see below). These scholarships, together with private 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. Scholarships awarded at the end of the university course are listed in full in the university calendars. Most of the post-graduate scholarships and post-doctoral fellowships are tenable in New Zealand.

University bursaries. A and B Bursaries of $200 or $100 a year are awarded to students who gain A or B passes in the university bursaries examination.

All these grants are subject to strict rules as to terms and suspension. A student who in any year does not pass a prescribed number of units or subjects will have his/her grant suspended and it will not be reinstated unless in a subsequent year of study he/she is credited with a prescribed number of passes.

Tertiary study grants. The grant and bursary provisions for students entering upon tertiary courses of education were substantially revised for 1980.

Fees grants are awarded to students following part-time or full-time courses who have qualified for entrance to the university. These bursaries provide payment for 75 percent of tuition fees.

Tertiary study grants 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. Also, a student who is credited with two-thirds of a full-time course in any year or a full-time course over a period of years will qualify for a tertiary study grant.

A tertiary study grant may be held with a fees grant. It provides for a basic grant of $37 a week.

Accommodation grants—Those awarded with a tertiary study grant and receiving payment under it, may be eligible for an Accommodation Grant of $25 a week if:

  1. They are 20 or over on 31 January in the year they are applying and not living at home.

  2. They will not be 20 until after 31 January in the year they are applying, their parents live outside the Accommodation Grant boundary around the nearest tertiary institution offering the course, and they will not be residing with parents during the academic year.

Hardship and special hardship grants—Students awarded a tertiary study grant may also apply for either of these grants.

A Hardship Grant is available only to students who have abnormally high costs in certain specified areas (recognised as not generally borne by the majority of students), and who in addition, are able to demonstrate severe hardship.

There is provision for a student with dependants, or students in some exceptional circumstances, to receive a Special Hardship Grant of up to $54 a week. This will be paid in addition to the study grant and, if applicable, the Accommodation Grant.

The Tertiary Study Grant is also tenable for full-time courses at technical institutes and teachers colleges.

Further details of the amounts payable and other conditions for these grants and bursaries are available from university liaison officers and from the Head Office of the Department of Education, Wellington.

Students

At 1 July 1985 there were 47 799 students actually in attendance at the universities. In addition, there were 12 069 external students. Comparable figures for the latest 5 years are given in Table 8.18. Internal students now exceed 1.4 percent of the general population.

Table 8.18. UNIVERSITY STUDENTS

YearInternal StudentsExternal StudentsTotal
MalesFemalesMalesFemales

Source: Department of Education.

198125,67319,0633,2124,81652,764
198225,41119,9003,4365,40254,149
198325,60020,8703,7956,24856,513
198425,80821,6454,0206,76958,242
198525,66422,1354,5837,48659,868

Table 8.19. DETAILS OF UNIVERSITY COURSES TAKEN BY INTERNAL STUDENTS AT 1 JULY

Course*19841985
MalesFemalesTotalMalesFemalesTotal

* Includes degree, diploma and certificate courses.

Source: Department of Education.

Agricultural and Horticultural2,0167222,7382,0699893,058
Architecture and Town Planning532197729412154566
Arts4,2818,17312,4544,3278,61912,946
Commercial and Business Administration5,1932,5897,7825,4532,8758,328
Dentistry1598524412981210
Divinity and Theology87521397239111
Education4091,5721,9814661,5382,004
Engineering2,3111372,4481,6431111,754
Fine Arts112178290114182296
Forestry Science147281759116107
Home Science3295298-33
Law and Jurisprudence2,1681,7063,8742,0051,6233,628
Librarianship83947103747
Medicine and Health Related1,1436911,8348846121,496
Mineral Technology101510653255
Music139224363102185287
Optometry413576363571
Parks and Recreation895714611779196
Pharmacy5288140226284
Philosophy (Masters)3433678456140
Physical Education126191317136187323
Regional and Resource Planning585110910665171
Science5,0532,5407,5934,9422,5317,473
Social Sciences3656239884227591,181
Social Work7424632096294390
Surveying114712177481
Technology and Food Science406104510343164507
Valuation11925144314
Veterinary Science223217440207245452
Others1,3821,4432,8252,6861,6524,338
              Total26 94522 35349 29827 10723 20050 307
Adjustment for students enrolled in more than 1 course1,1377081,8451,4431,0652,508
              Total25 80821 64547 45325 66422 13547 799

Table 8.20. UNIVERSITY STUDENTS AT 1 JULY 1985 BY TYPE OF STUDENT AND UNIVERSITY

 AucklandWaikatoMasseyVictoriaCanterburyLincolnOtagoAll Universities
MFMFMFMFMFMFMFMF

Source: Department of Education.

Internal students—
Full-time5,1733,7261,3341,1532,7862,0962,7452,2383,5522 0 781,2224713,0952,76219,90714,524
Part-time1,8002,2184619534817291,4181,4129901,44362235458335,7577,611
All internal students6,9735,9441,7952,1063,2672,8254,1633,6804,5423,5211,2844943,6403,59525,66422,135
External students
Taking courses at Massey University619220653,8266 35S97161419110356694,1116,839
Taking courses at own university51----131459--173154196178
All external students669320653,8266,358110175461001032292234,3077,017
All students7,0396,0371,8152,1717,0939,1834,2733,8254,5883,6211,2944973,8693,81829,97129,152
Overseas students included in total32020196612201272952253631599629153871,543889

Table 8.21. FORMS OF ASSISTANCE TO INTERNAL UNIVERSITY STUDENTS AT 1 JULY

Form of AssistanceNo. of Awards
19841985
Tertiary fees grants (full-time)610658
Tertiary fees grants (part-time)1,078883
Tertiary study grants26,06823,792
Accommodation grants16,56716,698
Supplementary hardship grants137108
Special hardship grants169105
A Bursaries9,4219,853
B Bursaries5,8646,053
Teachers university studentships204138
Secondary teacher studentships357341
Teachers bursaries1611
Teachers college students fees2,0341,463
Rehabilitation and war bursaries148
State Service study awards455517
Post Office study awards95137
Railway study awards118
Armed Forces6049
Government employees on leave with pay to complete degrees (including teachers)184156
Medical bursaries103
Maori and Polynesian scholarships60107
Other7948
              Total number of awards63 57261 136
Source: Department of Education.
NOTE—This table does not include overseas students. Students may receive more than one award.

Table 8.22. NATURE OF RESIDENCE OF FULL-TIME STUDENTS AT UNIVERSITY IN 1985

Nature of ResidenceAucklandWaikatoMasseyVictoriaCanterburyLincolnOtagoAll Full-time StudentsOf These. Overseas Students Numbered
MFTotalMF

Source: Department of Education.

Living in own home854976896367101354351,8151,7413,55615257
Living in parents home4,2184993572,0281,8181916685,9783,8019,7792523
In hall of residence6066011,0916347766161,3863,3442,3665,710440220
Boarding57716831022426877871,0836281,71111494
Sharing flat or house with others2,5701,0422,2301,3512,0526743,2427,3625,79913,161621359
Other or not known7480581106-393251895143436
              Total8 8992 4874 8824 9835 6301 6935 85719 90714 52434 4311 386789

Table 8.23. OCCUPATIONS OF PART-TIME INTERNAL UNIVERSITY STUDENTS AT 1 JULY 1985

OccupationMalesFemalesTotal

Source: Department of Education.

No occupation other than study1,0058611,866
University staff449410859
Teacher305652957
Teachers college student2379911,228
Government employee1,0459612,006
Local body employee163301464
Private employment1,9581,4553,413
Self-employed person309259568
Housewife or housekeeper441,3971,441
Full-time student at technical institute21820
Other occupations240306546
              Total5 7577 61113 368

Table 8.24. ASSISTED OVERSEAS STUDENTS AT NEW ZEALAND UNIVERSITIES AT 1 JULY 1985

Nature of AssistanceMalesFemalesTotal

Source: Department of Education.

Assisted by the New Zealand Government—
    Bilateral aid and assistance (Foreign Affairs)268112380
    Commonwealth Scholarships34741
    Exchange Students9716
    Government departments (other than Foreign Affairs)15116
    UGC or University Grant16420
                  Subtotal342131473
Other assistance from—
    Fijian Government16420
    Malaysian Government433881
    Other governments9312
    Fulbright, Awards257
    Lee Foundation15722
    World Bank3-3
    Rotary3912
    Others351045
                  Subtotal12676202
    All assisted overseas students468207675

Table 8.25. DEGREE GRADUATES FROM NEW ZEALAND UNIVERSITIES

CourseFirst DegreePost-graduate
1984198519841985

Source: Department of Education.

Agriculture2911542537
Architecture7886212
Arts1,8361,771436535
Commerce and business administration studies1,0501,69376103
Dentistry51-4-
Divinity and theology11-61
Education2842872017
Engineering49626044258
Fine arts2729212
Forestry science232926
Home science27--1
Horticulture9061125
Law and jurisprudence3342591671
Management studies9910-2
Medicine28811732
Mineral technology15---
Music6451617
Optometry28--
Pharmacy26-2-
Philosophy2217615
Physical education27---
Public policy--205
Regional planning154-2
Science1,4321,652271614
Social sciences961362354
Social work3321-10
Surgery--1-
Surveying33---
Technology7012221
Town planning1820--
Veterinary science5764-4
              Total7 0626 7261 1381 824

Table 8.26. UNIVERSITY STAFF AT 1 JULY 1985

PositionFull-time StaffPart-time Staff
MenWomenTotalMenWomenTotal

Source: Department of Education.

Filled teaching posts—
    Professors3441335759261
    Senior lecturers (including readers, associate professors, lecturers-in- charge)1,5721531,72538157438
    Lecturers413136549443781
    Junior or assistant lecturers7473147221941
    Instructors and demonstrators (if engaged in teaching)867115710265011527
                  Subtotal2 4894462 9351 5326162 148
Vacant teaching posts—
    Filled by temporary staff....115....27
    Not filled at time of return....-....-
                  Subtotal....115....27
                  Total established teaching posts....3 050....2 175
Non-teaching staff—
    Technicians, research assistants, and other technical staff not engaged in teaching9003511,25129133162
    Library staff7626233829123152
    Administrative staff, clerical and office staff2477801,027175359534
    Others (groundsmen, tradesmen, cleaners, etc.)47246518161432593
                  Total non-teaching staff1 6951 4393 1343941 0471 441

Training of teachers

The training of teachers is carried out at the Auckland College of Education and the 5 teachers colleges at Hamilton, Palmerston North, Wellington, Christchurch and Dunedin. Outpost centres for a small number of secondary teacher trainees are located at Whangarei, Rotorua, Hutt Valley and Invercargill. These are under the respective control of Auckland College of Education (Whangarei), Hamilton Teachers College (Rotorua), Wellington Teachers College (Hutt Valley) and Dunedin Teachers College (Invercargill).

The minimum entry qualification for admission to primary teacher training (Division A) is sixth form certificate with acceptable grades in 4 subjects.

The normal course of training for Division A students is a period of 3 years at a teachers college followed by 2 years of satisfactory teaching in a State primary school.

Courses may be shortened to 2 years for trainees who are university graduates or who are part way through degree courses, or for mature trainees with relevant work experience.

Students who wish to become speech-language therapists are selected after the first year of training. A new training programme leading to a 4 year B.Ed. (Speech-Language Therapy) is currently being developed at Christchurch.

Postgraduate courses for teachers who wish to be trained as teachers of the handicapped are available at Auckland, Palmerston North and Christchurch. Specialist postgraduate training courses for teachers of the deaf and visually handicapped are located at Auckland and Christchurch.

The 2-year Division E course for kindergarten teachers is available at the Auckland College of Education and all teachers colleges.

There are several course options for people wishing to train as secondary teachers. For graduates and those with other approved advanced qualifications there is a 1-year Division C course. Division U/T involves full-time study at either a university or a technical institute followed by 1 year in Division C. Students with University Entrance may be accepted into Division B which comprises up to 4 years concurrent study at Auckland College of Education or Christchurch Teachers College and either the local university or a technical institute.

At Auckland and Christchurch the course comprises up to 4 years concurrent study at the teachers college and at either the university or a technical institute. At Hamilton, Division B (Waikato) consists of an intermediate full-time university year followed by 4 years of professional study at both the teachers college and the university.

Primary teacher trainees are encouraged to undertake university study. Those at teachers colleges in Hamilton, Palmerston North, Christchurch and Dunedin enrol for the B.Ed. offered by the universities in those centres. Trainees at Auckland and Wellington may gain cross credits from their college courses towards Auckland and Victoria university degrees.

Suitably qualified Division A and Division B trainees are eligible to apply for a year's deferment of the college course or of the first year of teaching to attend university full-time.

Table 8.27 shows the number of students attending teachers colleges on studentship and on deferment at 1 July.

Kindergarten teacher training. Kindergarten teachers undertake a 2-year course of training in teachers colleges. Playcentre personnel are trained through the playcentre movement's own training schemes. For people working in childcare there are 1-year courses at Auckland, Wellington, and Christchurch Teachers Colleges and a field-based training scheme operated by the New Zealand Childcare Association. Some basic theoretical courses of study are available to childcare workers through the Advanced Studies for Teachers Unit of the Department of Education. Other courses combining practical on-the- job work and theoretical studies are available through some private childcare operators. The Advanced Studies for Teachers Unit and Massey University, offer advanced courses for all early childhood education.

Table 8.27. STUDENTS ATTENDING TEACHERS COLLEGES AT 1 JULY

Type of Course19811982198319841985
MFMFMFMFMF

* Includes speech and Pacific Island Supplementary Training students.

† Includes Home Economics and commercial,

Source: Department of Education.

Students at Teachers Colleges Kindergarten:
    Division E72826228420911821153
Primary:
    Division A*7353,4295422,7123992,0833281,4863641,583
    Postgraduate courses15421340193811431445
Secondary:
    Division B13540213735697234741378689
    Division C303387177250133210136197165203
    Other 1 year courses8678123-64--
        Total at Teachers College by Sex:1 2814 6208763 5886552 7745562 0496302 073
        Total at Teachers College5 9014 4643 4292 6052 703     
Students on Studentships Primary:
    Division S4218934193381813018936100
Secondary:
    Division U506710327501237324141212100184
    Division BS92610201319825622
    Division T--152443255
        Total on Studentships by Sex:557925372719290528183429144311
        Total on Studentships1 4821 091818612455     
Students on Deferment
    Kindergarten............-4-1
    Primary............10771858
    Secondary............911815
    Secondary studentships57543722323748472339

Technical education

In 1945 technical education was a variant form of secondary education. It was provided by separate technical high schools and technical departments in other secondary schools, and was avowedly vocational in purpose. During the past 15-20 years technical education has been subsumed under continuing education and 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 8 community colleges.

This transformation is the result of a number of policy decisions which have catered for a demand for different 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 direction to apprentice studies; the passing of the Technicians Certification Authority Act 1958 (now the authority for advanced Vocational Awards) and the introduction of New Zealand Certificates gave encouragement to technician studies. In 1969 the Government established technical institutes in centres where there was sufficient technical work to occupy 10 full-time tutors and 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 for in conjunction with other educational needs which meet the specific circumstances of the local community, particularly in the non-metropolitan provincial centres. Apprenticeship training was upgraded to meet current industrial-commercial requirements by the 1983 Apprenticeship Act.

Continuing education in New Zealand is still developing and expanding. 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, at Heretaunga near Wellington, which gives a predominantly national block course service but also provides some special courses of a national character such as pharmacy, podiatry and occupational therapy, opened in 1960. 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, opened in 1976. Since 1971, technical institutes or community colleges have also been opened in the provincial centres.

The full list of technical institutes is as follows; Auckland, Manukau, Carrington, Waikato, Taranaki Polytechnic, Manawatu Polytechnic, Central Institute of Technology, Petone Technical Institute, Wellington Polytechnic, Nelson Polytechnic, Christchurch Polytechnic, Otago Polytechnic, and the New Zealand Technical Correspondence Institute. The first community college was Hawke's Bay Community College established at Napier in 1975. Since then, Northland (at Whangarei), Waiariki (at Rotorua), Tairawhiti (at Gisborne), and Bay of Plenty (at Tauranga) have been established. In 1978 Southland Polytechnic changed to a community college and in 1984 the Regional Community College Wanganui and the South Canterbury Community College, Timaru were established. A new community college at Porirua is due to open in 1986.

A standing committee on relationships in tertiary education exists to consider the problems of placement of courses and the rationalisation of tuition in the technician, semi-professional, and professional fields.

Technician courses. The beginnings of technician training date from the early 1950s and were a result of the efforts of the engineering profession to specify a role for a highly-trained person whose qualifications were derived, not from study in a university school of engineering, but from theoretical studies taken in conjunction with industrial experience. The New Zealand Certificate of Engineering was introduced in 1954. 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. In 1979 further recognition of the scope of the work of the TCA was given, its base was broadened and it was renamed the Authority for Advanced Vocational Awards (AAVA). Both 5-year New Zealand certificates and 3-year technicians certificates are offered in the following subjects.

New Zealand Certificate, advertising, building, building inspection, commerce (office management), commerce (supply), manufacturing, customs, data processing, draughting (architecture), draughting (survey/town and country planning), engineering, fire technology, hotel and catering administration, forestry, land surveying, local government administration, quantity surveying, science, and town planning certificates.

Technicians Certificates: Automotive, civil, draughting, electricial, electronics, garage management, measurement control, mechanical, survey, telecommunications, waste water treatment, water treatment.

The instruction for New Zealand Certificate courses is part-time, by regular intermittent periods in full-time classes (block course?), 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 for 3 years with obligatory employment during the last 2 stages of the course.

During the last 15 years there has been a spectacular increase in the range of technician courses and the number of students studying for New Zealand Certificates.

Trade courses. Post New Zealand Certificate diplomas are now offered in building management services, science and surface coating technology. Apprenticeship training accounts for a significant percentage of the enrolment load of technical institutes. Examination prescriptions for a full range of trade courses are prescribed by the New Zealand Trades Certification Board (TCB), which conducts assessments and examinations during apprenticeship, and usually an advanced trade certificate examination to be taken at about the end of the apprenticeship. Up to 31 March 1985, this board has issued 69 927 New Zealand Trade Certificates and 19 571 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 some change.

Other courses. In addition to the national trade and technician courses, there are a large number of courses available which have been organised regionally to meet local demands. These include 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, and the New Zealand Institute of Management.

Table 8.28. NUMBER OF FULL-YEAR FULL-TIME STUDENTS AT TECHNICAL INSTITUTES AND COMMUNITY COLLEGES AT 1 JULY

Full-time Courses: Full-year19841985
MalesFemalesTotal StudentsMatesFemalesTotal Students

Source: Department of Education.

Level 3
    Agriculture, forestry and fisheries202343191837
    Fine and applied arts223355242852
    Commercial and business administration151,6681,68361,6281,634
    Service trades127194321115204319
    Medical science and health related-1818-1212
    Trade, craft, and industrial programmes3066437028573358
               Total4902 0202 5104491 9632 412
Level 5
    Agriculture, forestry and fisheries---4812
    Fine and applied arts7411318785119204
    Commercial and business administration3885849724735431,016
    Mass communication and documentation3584119346498
    Mathematics and computer science12391214251237
    Medical science and health related2852,8083,0933063,2153,521
    Engineering4862451045628484
    Architecture and town planning8122103623496
    Trade, craft, and industrial programmes204147351180170350
    Humanities, religion, and theology3121541822
    Service trades3151863036
    Natural science2875103234568
               Total1 7103 9755 6851 6584 2865 944
               Grand Total2 2005 9958 1952 1076 2498 356

Table 8.29. NUMBER OF FULL-YEAR PART-TIME STUDENTS IN CONTINUING EDUCATION AS AT 1 JULY 1985

Part-time CoursesMalesFemalesTotal

Source: Department of Education.

Level 27482,3523,100
Level 3
Authority for Advanced Vocational Awards1,5371751,712
Trade Certificate Course16,3112,32018,631
Other9,90515,46325,368
Level 5
Authority for Advanced Vocational Awards8,8403,12111,961
Trade Certificate Course2,750492,799
Other8,1875,17513,362
Level 9
Non-vocational12,62732,73145,358
               Total60 90561 386122 291

Authority for Advanced Vocational Awards and Trades Certification Board examinations. The Authority for Advanced Vocational Awards are responsible for the curriculum and examination of all 3-stage Technicians Certificates or 5-stage New Zealand Certificate. The Trade Certification Board is responsible for examination of apprentices sitting for either a Trade Certificate or Advanced Trade Certificate.

Table 8.30. TRADE CERTIFICATES ISSUED

Year Ended MarchTechnician Certificate 3-Stage CourseN.Z. Certificate 5-Stage Course: FinalCertificates Issued
TradeAdvanced TradeIndustrial Practical

Source: Department of Education.

19825871 047x3,509945546
1983459x697x3,337859869
19842648063,2781,028..
1985....4,0229961,141

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 approximately 12, this institute now employs almost 500 full-time staff. With a student roll of almost 31 000 the Technical Correspondence Institute is easily the biggest single educational institution in the country. Since 1972 the institute has operated under the control of a council comprising representatives of national organisations such as the Employer's Federation, the Federation of Labour and Federated Farmers. The institute teaches one-third of all vocational students enrolled at technical institutes in New Zealand. The institute writes, illustrates, and prints the material for all the courses it offers.

The Technical Correspondence Institute parallels the teaching standards of other technical institutes, and also provides instruction in many subjects not taught elsewhere. A significant number of the apprentices who sit the annual Trades Certification Board examinations are directed to enrol at the Technical Correspondence Institute.

The institute also prepares a large percentage of candidates for the Authority for Advanced Vocational Awards 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 940 subjects, from ladies' hairdressing, plumbing, and agriculture to airline pilots' licences and professional accountancy. To enrol at the Technical Correspondence Institute students should be engaged in the vocation relevant to their course of study, so that 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 block courses at the Central Institute of Technology or other institutes.

Transition education. A significant development in recent years has been the provision of transition education and training in the form, usually, of the Department of Labour's Young Persons Training Programme (YPTP) and School Leavers Training and Employment Preparation Scheme (STEPS) courses. In some institutes these courses account for from one-quarter to one-third of the total institute or community college programme. In 1986 these transition courses have been modified and combined to create the new Training Assistance Programmes.

In addition, a number of institutes and community colleges have developed transition courses independent of Department of Labour schemes.

Health services education. Health-related education accounts for approximately 38 percent of the full-time technical education load. There are currently 11 diploma and certificate programmes in the health-related areas, and of these the basic nursing courses account for 68 percent. There are now 15 technical institutes/community colleges offering 3-year comprehensive nursing courses.

In 1985 there were 905 places available for first year students and planning approval has been given by the Government for 1264 places in 1986. Nationally there are 2558 (1985) students undertaking the 3 years of the comprehensive nursing course.

In addition there are bridging courses, for already-registered nurses to become registered comprehensive nurses; a number of short courses for nurses who wish to further their knowledge in specific aspects of nursing; and, for those seeking advanced knowledge and skills, there are advanced diploma in nursing courses available.

Craft education. In 1985 the government approved the establishment of 10 full-time 2-year courses in craft design, to meet the vocational education needs of the craft industries and provide employment opportunities in a range of regional centres.

The basic 2-year course is at certificate level and will prepare students as skilled craftspeople able to take up employment in a variety of craft industries at a technician's level. It is proposed to follow the certificate with a 2-year full-time diploma for selected students, to develop the specialist skills necessary to achieve the levels of excellence to be internationally competitive.

Design education. Design courses of 3-4 years duration are offered in a number of technical institutes, notably:

  1. Wellington Polytechnic: industrial design, textile design, visual communication design, photography;

  2. Auckland Technical Institute: graphic design;

  3. Carrington Technical Institute: interior design, product design;

  4. Christchurch Polytechnic: visual communication design.

Additionally a 1-year course in visual communications is offered at Southland Community College and a 1-year display and advertising course at Waikato Technical Institute. A 2-year course in loom weaving is available at Nelson Polytechnic and a 2-year course in ceramics at Otago Polytechnic.

Fine arts. Otago Polytechnic runs a 3-4 year Diploma in Fine Arts course with major studies in painting, graphics and sculpture. A wide range of art related recreational courses are offered throughout the country.

Adult education

National Council of Adult Education. The functions and powers of the National Council of Adult Education are set out in the Adult Education Act 1963. One of the council's most important functions is to take an overall view of the development of adult education in New Zealand. In practice the council seeks to encourage complementary activities, and provision through a wide and growing range of institutions, agencies, and organisations for learning opportunities to the community in the post-compulsory phase of learning.

The council advises the Director-General of Education and various organisations on adult education, co-ordinates and conducts pilot projects and experiments, maintains a national library and documentation centre on adult education and publishes magazines and occasional papers.

University extension. Although full responsibility for and control of their continuing education activities rest with the universities, they use various systems to ascertain the views of (and in some cases to seek advice from) various community interests.

A typical centre for continuing education in a 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 and Lincoln College now carry out extension work, but they show marked differences in their approaches and systems of organisation. A large number of university academic staff are co- opted in order to supplement the activity of the full-time staff (totalling over 40). The work is carried out by various methods—lecture courses, study conferences, seminars, schools of varying lengths (both residential and non-residential), and correspondence courses. While most universities continue to provide for the general public with substantial extension programmes in the liberal studies area, there has been a significant 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 provision of the Education Act in 1975 allowed adults to return full-time or part-time to secondary schools, in day classes. There followed for the next few years a rapid increase in the number of adult admissions to day classes. In 1985 there were 969 full-time and 2749 part-time adult students. This is in addition to the evening class programmes.

Correspondence education. The main agencies in the field of education by correspondence are the Correspondence School (with over 10 000 adult students enrolled), the extramural studies of Massey University (over 10 000), and the Technical Correspondence Institute (nearly 30 000 enrolments in 1985).

Other forms of continuing education

Many voluntary organisations make some provision for continuing education. For most of them, such as the Play Centres Federation, and the Country Women's Co-ordinating Committee, continuing education is incidental to other purposes. However several organisations, such as the New Zealand Workers Educational Association, have continuing education as their primary purpose.

New Zealand Workers Educational Association—The WEA is an independent voluntary organisation which provides further educational opportunities for adults. District councils exist in Auckland, West Auckland, Waikato, New Plymouth, Kapiti Coast, Wellington, Canterbury, Otago, and Southland, and branches exist in Upper Hutt, Lower Hutt, and South-east Christchurch. District councils and branches run varied programmes, including seminars, courses, summer schools, public forums, and literacy programmes. Special courses are run for the elderly, the unemployed, and trade unions. The WEA Book Discussion Scheme has 149 groups throughout the country. The co-ordinating body is the New Zealand Workers Educational Association, located in Wellington.

Workers Educational Association Trade Union Postal Education Service—This is an independent correspondence service. It is administered by the representative from the Federation of Labour National Council of Adult Education, NZWEA and individual trade unions. It provides non-formal, low cost correspondence programmes for members of affiliated trade unions and their families.

Country Women's Co-ordinating Committee—The committee is involved with international affairs through the Associated Country Women of the World and in particular the South Pacific area, giving financial and practical aid, and assistance with the training of women in the Pacific Islands.

Community centres. Community centres which opened experimentally some 40 years ago in Feilding, Christchurch, and Westport were the forerunners of the school-based community learning centres. Generally the centres receive professional and ancillary staffing and an annual grant. In effect, 13 community learning centres have been established in association with primary and secondary schools.

Several other schools which have developed large community programmes have been given lesser levels of support in the meantime. Still another group of schools has successful programmes within their own resources, or with additional support from the Ministry of Recreation and Sport.

All these schools have developed community education programmes which aim at increasing the community involvement in continuing education by making a wider use of schools for expanded extension programmes and, by using the resources of the community, to enrich the programmes of pupils still at school.

The Community Action Programme (CAP) in the Wairarapa region has now merged with the Wairarapa REAP. Together they provide a range of continuing education programmes to meet a wide variety of learning needs in the area. The Community Education Service (CES) in the Nelson region is at the Nelson Polytechnic and together they provide for the continuing educational needs of people in the Nelson area.

Vocational awards. The Authority for Advanced Vocational Awards are responsible for the curriculum and examination of all 3-stage Technicians Certificates or 5-stage New Zealand Certificate. The Trades Certification Board is responsible for the examination of apprentices sitting for either a Trades Certificate or Advanced Trade Certificate.

Further information

Education Statistics of New Zealand—Department of Education.

New Zealand Council for Educational Research Books in Print.

New Zealand Teachers College Summary Statistics—Department of Education.

Primary Staffing Survey—Research and Statistics Division, Department of Education.

Profile of Full-year Full-time Technical and Continuing Education Students—Research and Statistics Division, Department of Education.

Profile of New Entrants to Teachers College—Department of Education.

Report of the Department of Education (Parl. paper E. 1)

Report of the Maori Education Foundation (Parl. paper E. 24)

Report of the Pacific Islands Polynesian Education Foundation (Parl. paper E. 21)

School Certificate Examination Statistics—Department of Education.

Secondary Staffing Survey—Research and Statistics Division, Department of Education.

State Secondary School Subject Staffing Survey (March 1985)—Department of Education.

Teachers Movement Survey Results—Department of Education.

Chapter 9. 9 Justice and Police

9.1 Criminal justice

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.

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 in recent years.

Table 9.1. AGES OF PERSONS SENTENCED TO DETENTION

Age, in Years197919801981198219831984
 Number of Persons Sentenced to Custodial Detention
15665887949877
16250248267289295266
17391409394432452429
18406'433426466540471
19399424396488534547
20378394405409480497
21-241,1911,1401,0471,1881,3531,525
25-29708725697746848970
30-34350336380409459499
35-39217207182195221263
40-44162127141142148158
45-4910485100798495
50-54656956385069
55-59414034262918
60-641817910913
65-69664644
70 and over223111
               Total4 7544 7204 6285 0185 6055 902
Prisoners aged 19 or younger as a percentage of all prisoners31.833.333.935.334.230.3

In each year represented in Table 9.2 over 30 percent of all prisoners were aged 15 to 19. At the time of the 1981 Census of Population the 15 to 19 age group formed 13.2 percent of the total population aged 15 years and over.

Table 9.2. TIME SERIES, CRIMINAL JUSTICE

YearDistrict Courts*High Court*Prisoners in Jail at End of Year (Undergoing Sentence)
Total Charge Summary ConvictionsRate per 1000 of Mean PopulationPersons SentencedRate per 1000 of Mean PopulationNumberRate per 1000 of Population as at 31 Dec

* Prior to 1 April 1980 District Courts were known as Magistrates' Courts and the High Court as the Supreme Court. From 1 April 1981 High Court totals include District Court trial courts.

† From 1977 excludes traffic offences except those resulting in deaths or injuries. Statistics prior to 1977 are not comparable with figures from 1977.

‡ Known to be shortcounted.

193123,25915.366000.401,6141.06
194124,52915.045420.339880.61
195122,40911.506440.331,0400.53
196135,31814.552940.121,8180.75
197161,70121.544040.142,5440.88
197472,76224.005450.182,2950.74
197582,65526.786690.222,5930.82
197691,67529.427100.232,7130.86
197791,59229.286870.222,7110.86
197887 17127.867250.232,4240.77
197976 639‡24.537140.232,5930.82
198098,29731.139230.292,6250.83
198193,78929.711,0350.332,3000.72
1982103,42132.491,2030.382,4740.77
1983100,14831.051,2590.392,7000.83
1984--1,4140.432,9890.91

Reported crime. For the year ended 1984, offences reported to the Police rose from 409 745 during 1983 to 415 690 in 1984, an increase of 1.4 percent.

During the year, a total of 40 murders was reported. Total reported murders in 1984 dropped by 16.7 percent compared with 1983. Reported offences involving violence increased 4.7 percent from 19 969 offences reported during 1983 to 21 114 reported in 1984. Aggravated robbery rose by 19.7 percent from 375 in 1983 to 449 in 1984, and non-aggravated robbery rose by 59.6 percent from 255 to 407.

Reported rape offences increased by 18.7 percent from 321 to 381, attempted rape by 5.4 percent from 92 to 97, and indecent assaults reported rose by 46.5 percent from 680 to 996. The police clearance rate for rape has increased from 78.1 percent to 79 percent.

Non-cannabis drug offences increased 26.3 percent from 714 to 902. In total, cannabis offences increased from 10 539 to 13 947, an increase of 32.3 percent.

Overall reported dishonesty offences increased by 0.7 percent. Burglary declined by 1.0 percent from 74 213 to 73 537 offences. Car conversion increased by 5.4 percent from 43 787 to 46 184 offences. Theft increased by 2.8 percent from 112 971 to 116 219 offences and receiving rose by 5.5 percent from 2686 to 2834 offences.

Reported fraud offences declined by 1.7 percent. False pretences by credit/bank cards declined by 9.8 percent from 3976 down to 3578 offences and credit by fraud by credit/bank cards decreased by 65 percent from 574 to 201 offences.

During 1984, police investigations indicated children under 17 years were responsible for 25.5 percent of offences cleared by the police, and 56.9 percent of all offenders were in the under 20 age group. Of all offenders, 82.9 percent were male.

Property to the value of $173.36 million was stolen and reported to the Police during 1984, of which $76.22 million was recovered. This is a recovery rate of 43.9 percent. Motor vehicles formed the largest property group with 33 073 being reported stolen with a value of $78.93 million, and 20 190 motor vehicles were recovered. These are valued at $62.99 million giving a recovery rate of 79.8 percent.

Police attended 40 592 burglar alarms, 17 646 domestic disputes, 5605 sudden deaths, 4062 vehicle collisions, 485 attempted suicides, and 67 028 other requests by the public for assistance. Overall incidents, other than those of a criminal nature, attended by Police during 1984 increased 6.9 percent when compared with 1983.

Criminal trials

Until 1981, criminal trials were held only in the High Court. Since then District Court trial courts, located in 18 centres, may hear cases for all except the most serious of indictable offences, thus relieving the High Court of a heavy work load.

Criminal cases in the trial courts are of 2 classes: those actually tried in the trial courts; and those in which the accused person has pleaded guilty in the lower courts and has been committed to the High Court or to a District Court trial court for sentence or has been committed for trial and subsequently changed the plea to guilty.

The Court of Appeal hears appeals against convictions and sentences imposed in the High Court and in District Court trial courts. If it allows an appeal, the Court of Appeal may quash the conviction, vary the sentence, or order the case to be retried.

Juries. Major changes to the institution of the jury in the Juries Act 1981 include the abolition of special juries, talesmen, and pretrial views. The Crown's unilateral right to stand aside prospective jurors is altered to an ability by either party to do so with the consent of the other party. Also each party can challenge 6 jurors without cause.

Every person between the ages of 20 and 65 is eligible for jury service subject to the following exceptions. The list of persons not eligible for jury service and grounds for excusal has been substantially revised. Those persons who because of their occupation are not appropriate to serve on a jury are ineligible, and a person may be excused if jury service would cause serious inconvenience or hardship or if it is against a person's religious beliefs to serve on a jury.

The following persons are not qualified to serve on a jury in any Court on any occasion: (a) anyone who, at any time, has been sentenced to imprisonment for life or for a term of 3 years or more, or to preventive detention; and (b) anyone who, at any time within the preceding 5 years, has been sentenced to imprisonment for a term of 3 months or more, or to borstal training.

The list of persons who will continue to be automatically ineligible is:

Members of the Executive Council of New Zealand; Members of the House of Representatives; Judges of the High Court, Judges and members of the Arbitration Court. Judges and Commissioners of the Maori Land Court, and District Court Judges; Visiting Justices and members of the Prisons Parole Board; Justices who have agreed to make themselves available from time to time to exercise the summary jurisdiction of District Courts; Barristers and solicitors holding current practising certificates under the Law Practitioners Act 1955; Members of the Police, and Traffic Officers; Officers of the Public Service who are—(i) employed in the Head Office of the Department of Justice; (ii) officers of the High Court or a District Court; (iii) officers of any penal institution or pre-release hostel or work centre; or (iv) Probation Officers; mentally disordered persons; and persons who are incapable of serving because of blindness, deafness, or any other permanent physical infirmity.

Compensation for criminal injuries. 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 Accident Compensation Scheme, administered by the Accident Compensation Corporation, now caters for all personal injury by accident in New Zealand, and thus covers the whole range of listed criminal injuries, including pregnancy by rape and criminal infection with disease. This scheme is designed as a fund of first resort.

Legal aid. The Legal Aid Act 1969 gave effect to the principle that no persons should be prevented by lack of means from having their grievances heard and determined fairly by the courts of the land. The aid is available for almost all civil proceedings other than dissolution of marriage. 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 $25 towards the cost of proceedings, and is also liable to make an additional contribution proportionate to his or her income and capital resources.

The Department of Social Welfare 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.

Table 9.3. COURT OF APPEAL—CRIMINAL CASES

YearAppeals LodgedAppeals Heard
AllowedRefusedOther*Total

* Reserved decisions or cases adjourned.

1980299851973285
1981272562395300
1982316902162308
1983291671961264
1984329971985300

Table 9.4. CRIMINAL TRIALS—HIGH COURTS AND DISTRICT COURTS

YearTried in High Court
Indictments and InformationsConvictionsSentences in Case of Committal for SentenceTotal Sentences
MFMFMFMFTotal
Total Counts and Charges
19802,5502751,543156763192,3061752,481
19811,7763461,049126848421,8971682,065
19821,1857671240668421,380821,462
19838478151952592501,1111021,213
19841,3879081155665431,476981,574
Distinct Persons
198091574643472211286459923
198167362490432292071963782
198241346324312251954950599
198338243288322272751559574
198455045426332362466257719
YearTried in District Court Trial Courts
Total CountsConvictionsTotal
MFMF
Total Counts and Charges
198190910254348591
19821,5213819342461,180
19832,2473881,4612801,741
19842,4286011,5434041,947
Distinct Persons
19813305023221253
198271213050698604
198385211960085685
198493012662173694

Of the 1651 distinct persons indicted in all trial courts during 1984, 1153 were convicted and sentenced, 12 were still awaiting trial at the end of the year, 273 were acquitted, 4 were found insane, and the prosecution was not proceeded with in the remaining 209 cases.

Table 9.5. SUMMARY OF OFFENCES—CRIMINAL TRIALS IN HIGH AND DISTRICT COURTS

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
High Court
19806411,3345052,480404255264923
19816038366262,065372164246782
19825235673721,46233591173599
19835533583021,21336756151574
19846993834921,57444393183719
District Court Trial Courts
1981853861205915413564253
19822126273411,180119254231604
19832391,2332691,741154372159685
19842461,3873141,947152367175694

Table 9.6. OFFENCES OF DISTINCT PERSONS SENTENCED IN TRIAL COURTS

Type of Offence19801981198219831984

* Includes persons charged with murder but convicted of manslaughter.

Murder71651810
Attempted murder12319
Manslaughter*1928352520
Traffic offences involving death or injury610101321
Assaults and wounding262285292339360
Sexual offences (including rape and attempted rape)10878106123169
Other offences against the person17326
Burglary and breaking and entering548699106106
Theft, receiving, and fraud166171134240249
Other offences against property25361077397
Forgery and uttering106598
Drug offences182226213175239
Other offences8284191135119
               Total9231 0351 2031 2591 413
Per 10 000 mean population2.953.283.783.904.34

Table 9.7. SENTENCES IMPOSED IN TRIAL COURTS

Sentence19801981198219831984

* Also includes persons committed into the care of the Department of Social Welfare. Community service is a new penalty operative from 1 February 1981.

† Detention centre and borstal training abolished on 1 April 1981. Corrective training is a new penalty from that date.

Probation or community service*93116145128125
Ordered to come up for sentence2239333634
Discharged101212116
Fined87103180182137
Imprisoned533583630640803
Detention centre or corrective training1315111615
Periodic detention134154185244290
Borstal training288.........
Preventive detention1-1-1
Detained in psychiatric hospital25622
               Total9231035120312591413

On conviction for murder a mandatory sentence of life imprisonment is imposed. The death sentence for murder has been abolished since 1961.

Summary criminal proceedings

District Court judges deal summarily with the majority of indictable offences. They have jurisdiction over ail crimes against property and all but the most grave of other crimes, such as treason, homicide, rape, and perjury. A District Court judge may, however, decline to deal with an offence summarily, in which case the accused is committed for trial in the High Court in the ordinary way. The accused person has, moreover, the right to claim jury trial if he or she is charged with any offence, indictable or summary, punishable by imprisonment for more than 3 months.

A defendant may be prosecuted at a court hearing for several charges of one or more offences. All are included in “total charges”, which will therefore exceed the number of persons charged. The principal charge (i.e., that for which the heaviest sentence is imposed), for each person at each court appearance is selected to arrive at the “distinct case” classification. As a person may appear before a court on more than one occasion during the year, the number of distinct cases will not necessarily correspond with the number of individual persons involved.

With the introduction in 1977 of a centralised computer source for criminal and traffic offence data, offence and other variable groupings were revised. Because of the revised groupings, data in Table 9.8, are not directly comparable with those in the corresponding table shown as a time series in earlier Yearbooks. The figures refer to total charges convictions for each offence group, followed by total distinct case convictions.

Table 9.8. DISTRICT COURTS, OFFENCES TRIED SUMMARILY

Type of Office19791980198119821983

* From 1 February 1982 people found drunk In a public place are no longer convicted.

† Includes breaches of the Road User Charges Act (effective 1 March 1978) and careless driving. From 1 October 1981 the infringement procedure. formerly restricted to parking breaches and speeding, was extended to include a number of minor traffic offences.

‡ Counting only the principal offence in cases where a person was charged simultaneously with 2 or more offences.

Offences involving violence or threats of violence4,5795,2015,1805,9075,703
Sex offences428457386455402
Other offences against the person2,1942,6212,7732,8132,876
Unlawful taking of property (includes conversion of vehicles)17,74223,45922,18226,41727,550
Fraud and false pretences6,0007,6828,88510,26511,427
Wilful damage and trespass2,8273,5723,5663,9443,980
Forgery, uttering, and currency offences9631,2701,6151,5361,452
Drug offences3,9826,2975,9417,9847,464
Offences against the administration of justice2,3943,0453,1074,0564,682
Drunkenness and drunken driving offences*17,18521,35921,21220,55522,974
Other imprisonable traffic offences6,6477,9878,60310,80610,110
Other offences against good order7,7108,6938,0146,6786,467
Offences against decency186325310348366
Maintenance and Social Welfare offences7851,15673636132
Offences against the Sale of Liquor Act7,2999,2468,2669,0986,579
Other offences13,49517,53118,01823,14721,119
                 Subtotal94 416119 901118 794134 095133 283
Minor traffic offences264,371261,340194,944188,879200,217
                 Total358 787381 241313 738322 974333 500
Distinct cases325,469306,272245,404242,380250,567

From 1981 minor traffic breaches excluded from the infringement procedure do not carry a conviction, but an order may be made for payment of a fine, towage fee, and costs. Except where a fine has been imposed, they have been included under the 'convicted and discharged (or pay costs)' category in Table 9.9.

Table 9.9. DISTRICT COURTS RESULTS OF HEARINGS

Result of Hearing198119821983

* New penalty effective from 1 April 1981. From that date detention centres and borstal training were abolished.

†Includes suspended imprisonment.

‡ Mainly for traffic offences which don't involve imprisonment.

§New penalty effective from 1 February 1981. For 1981 these cases have been included with orders made.

Imprisonment4,3755,1465,734
Detention in detention centre102......
Corrective training*602753776
Periodic detention5,9197,3578,806
Detention in borstal institution124......
Probation (under Criminal Justice Act)2,6772,4682,181
Convicted and ordered to come up for sentence if required†2,4732,2882,759
Fined217,343214,478222,553
Convicted and discharged (or pay costs)9,1797,4024,960
Community service§...1,4661,778
Orders made2,6101,0221,020
Dismissed, withdrawn, or struck out40,27444,98836,653
Discharged under section 42 of Criminal Justice Act3,3203,3322,426
                 Total, distinct cases288 998290 700289 646

Traffic offences. Traffic offences form a large proportion of court prosecutions. The most frequent traffic offences dealt with are breaches of parking regulations and excessive speed. Since 1969 parking infringements which result merely from overstaying a time limit have been dealt with outside the criminal law and from 1971 some local authorities and the Ministry of Transport have imposed speeding infringement penalties. From 1981 a number of traffic breaches formerly classified as offences have also been dealt with by infringement notice, and prosecutions for failure to pay does not result in a court conviction.

Table 9.10. DISTRICT COURTS TRAFFIC CONVICTIONS

Offence198119821983

* Includes breaches of heavy vehicle licensing and from 1978 also includes breaches of the Road User Charges Act.

Reckless, dangerous, or careless use or driving of motor vehicle causing death9711.1122
Reckless, dangerous, or careless use or driving of motor vehicle causing injury733881779
Driving, or in charge of, motor vehicle under the influence of drink or drugs causing death222330
Driving, or in charge of, motor vehicle under the influence of drink or drugs causing injury636789
Failing to stop motor vehicle after accident involving bodily injury638661
Driving, or in charge of. motor or other vehicle under the influence of drink or drugs16,33619,79122,972
Exceeding speed limits26,19828,48529,090
Reckless, dangerous, careless, or inconsiderate use or driving of motor vehicle37,45535,37335,692
Offences relating to the registration, or licensing of motor vehicles*11,9939,86510,803
Offences relating to driver's licence16,59815,29715,733
Breaches of parking regulations34,46278,14283,349
Other traffic offences76,90732,60035,713
                 Total220 927220 721234 433

chapter 22, Transport and communication contains a table of reported traffic offences.

Table 9.11. TRAFFIC OFFENCES—DISQUALIFICATION OF DRIVERS

Period Disqualified198119821983
Under 3 months9281,120973
3 months and under 6 months2,6063,0322,837
6 months and under 1 year16,88921,76023,621
1 year and under 2 years7,4428,7039,310
2 years and under 3 years1,2491,2901,154
3 years and under 4 years908384361
4 years and under 5 years774534
5 years and over204111185
           Total disqualifications30 30336 44538 475

Offences by women. Of the 391 712 charges dealt with in the District Courts in 1983, 60 634 or 15.5 percent were preferred against females. Most of the offences for which summary convictions are entered against females are of a relatively trivial nature, such as minor breaches of traffic regulations.

Table 9.12. DISTRICT COURTS—CONVICTIONS OF WOMEN

Offence198119821983

* Excludes obstructing or resisting police or other official.

Violent offences*386434421
Burglary, breaking and entering, etc.362533408
Theft and receiving2,9063,7664,052
Fraud and false pretences2,4302,9773,385
Forgery and uttering422576530
Offensive conduct or language591472448
Drug offences8061,130934

Women received into prison under sentence during 1984 numbered 328, compared with 358 in 1983. Totals for each offence group in 1984 (with 1983 figures in parentheses), were: offences against the person, 38 (52); property offences, 184 (208); drug offences, 21 (11); offences against good order, 4 (5); traffic offences, 13 (8); breach of probation or periodic detention, 32 (24); fine default, 22 (32); breaches of Social Security Act, 4 (5); and all other offences, 10 (13).

9.2 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, emphasis is placed wherever possible on the rehabilitation of the offender.

The paramount consideration is to ensure first that those who are a serious danger to society by reason of the nature of their offences or character of their offending, are removed from the community. Apart from that, wherever possible, sanctions are imposed that do not involve imprisonment. Where prison or other forms of detention are necessary the aim is to provide resources to assist offenders to live within the law. The interest of the community as well as of the offender is promoted by his/her successful resettlement on release.

Treatment of offenders within the community. The principal penalties available to the courts in dealing with offenders outside prison are fines, supervision, reparation, periodic detention, community service, and community care.

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/her.

Reparation—Where a person is convicted of an offence which caused loss or damage to another person's property, the offender may be sentenced to make reparation. This sentence was introduced by the Criminal Justice Act 1985, and can be imposed at the same time as any other community-based or custodial sentence.

Probation—The legislation on supervision is contained in Part III of the Criminal Justice Act 1985. The court may release on supervision any offender guilty of an offence punishable by imprisonment either on indictment or summarily. Supervision is a conditional suspension of punishment and provides the opportunity for an offender to rehabilitate himself or herself in the community. An offender may be released on probation for a period of not less than 6 months or more than 2 years and during this time he/she must accept the supervision of a probation officer and observe any conditions imposed regarding employment and residence, and associates. These conditions are automatic, but the courts have power to impose further conditions at their discretion on granting supervision. This power makes probation a very flexible type of treatment and it is coming to be more freely and imaginatively used.

Persons on probation or parole at 31 December of recent years were as follows (corrected figures): 1979, 9533; 1980, 9258; 1981, 8403; 1982, 8909; 1983, 9745 and 1984 (provisional), 9298.

Community service—The Criminal Justice Amendment Act 1980 provided the court with power to impose a sentence of community service on convicted offenders instead of sending them to prison. The offender so sentenced continues to live and work in the community, but during leisure hours gives unpaid service to some community group. The sentence can be from 20 to 200 hours service. Before imposing this sentence the court takes into account the character and history of the offender and the public interest.

For community service to succeed there are two other elements needed—

  1. The offender must agree to do community service;

  2. The community must produce a number of groups prepared to guide an offender into useful community activities for the number of hours required by the court.

The emphasis is on the active participation of the local community, and on the benefits to both sponsor and offender. The offender works not only for but with the local sponsor group. The group accepts the services of the offender and treats the offender as a member of the group. During 1982 the number sentenced to community service was 1997, in 1983, 2438 and in 1984 (provisional), 2436.

Periodic detention—This sentence was first introduced in 1962. Where a person who is aged 15 years or more is convicted of an offence punishable by imprisonment, he or she may be sentenced to periodic detention for up to 12 months. Under the sentence the offender 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. The figures for 31 December were: 1982, 3121; 1983, 3237; and 1984 (provisional), 3804.

Community care—This sentence is part of the Criminal Justice Act 1985. Like community service it can only be imposed with the consent of the offender. The person is required to undergo a programme for up to 1 year, or 6 months if on a residential basis. The definition of programme is wide, and can involve attending medical, social, therapeutic, educational or rehabilitation facilities, or being placed in the care of a suitable person or group.

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/her 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 supervision.

Finally the court, although it may find an offender guilty, may discharge him/her 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 impose are as follows:

  1. Corrective training, the term fixed by statute being 3 months. The offender must be between 16 and 20 years of age, and he or she may be eligible for early release after serving two-thirds of his or her sentence. After his or her release the offender is on probation for 6 months.

  2. Imprisonment for a stated period or for life. An offender sentenced to imprisonment for a fixed term may be eligible for release on parole after serving half of his or her sentence, or in some cases two-thirds.

  3. Preventive detention, which means detention in prison for an indefinite term to be decided by the 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 parole 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 1975 a restriction on detention prohibited a sentence of detention (other than a sentence of periodic detention) being imposed on any person not legally represented at some time before conviction, unless he/she had the means to pay for legal representation but declined to employ a solicitor, or he/she was offered legal aid and refused it.

The Criminal Justice Act 1985 states that violent offenders are to be imprisoned except in special circumstances, while property offenders should not be imprisoned except in special circumstances.

Table 9.13. PERSONS PLACED ON PROBATION OR SUPERVISION

YearMalesFemalesTotal

* The Criminal Justice Act 1985 introduced the sentence of supervision, which replaces, and is a development of the sentence of probation.

Source: Department of Justice.

19807,5691,6729,241
19817,1211,2578,373
19828,8161,53610,352
19837,9131,2859,201
19845 145x1 245x6 390x
1985*4,4761,0755,551

Prisons and prisoners

A new sentence of corrective training has applied to both males and females aged 16 to 20 years since 1981. Borstal and detention centre training were abolished from that date. The New Zealand prison population is accommodated in 24 institutions comprising 20 prisons, 3 corrective training centres, and 1 police jail. Any person serving a sentence of not more than 8 days may be detained at any police station, which is also deemed to be a prison for that period.

Table 9.14. PRISON POPULATION, RECEPTIONS. AND DISCHARGES 1984

CategoryMalesFemalesTotal
Persons in prison at 1 January2 578x122x2 700x
Receptions during the year (including multiple receptions of the same person, but excluding transfers of sentenced prisoners)12 912x770x13 682x
Discharges during the year (including mutliple discharges of the same person, but excluding transfers)12 617x776x13 393x
Persons in prison at 31 December2 873x116x2 989x
Daily average number of prisoners2 773x121x2 894x

Not all prisoners received were actually persons undergoing sentence on conviction for criminal offences. Of the 13 682 receptions: 7111 referred to persons who were remanded in custody pending a court hearing, and who were later released after acquittal or on a successful application for bail; given a sentence not involving custodial detention; sent after sentence to an instutiton other than that in which they were remanded; or were still on remand at the end of the year. In 1984, 148 debtors were also received for non-payment of civil debt and 13 persons were transferred to mental institutions.

Table 9.15. AGES AND OFFENCES OF PRISONERS RECEIVED 1984

Age, in YearsOffences Against the PersonBurglary, Theft and Fraud*Conversion, Wilful Damage, etc.Driving Under Influence Drink DrugsOther OffencesTotal
Sexual OffencesViolent OffencesOther

* Includes forgery and currency offences.

†Includes all other property offences.

Under 215933625972281315832,287
21-244721227478110585931,525
25-2940121122954257403970
30-3937117132142658297762
40-492921753533105253
50-59952232133387
60 and over51--13818
               Total226813862 0354672532 0225 902

Table 9.16. AGES AND LENGTH OF SENTENCES OF PRISONERS RECEIVED 1984

Age, in YearsLength of SentenceTotal
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 Over

* Includes corrective training.

†Includes 10 with life imprisonment and 1 with preventive detention.

Under 211132371,60427239222,287
21-2415427578225338231,525
25-29931724811812221970
30-39731353661403216762
40-49375610735153253
50-59211835102187
60 and over196-1118
      Total4929023 381891149875 902

Table 9.17. AGES OF CORRECTIVE TRAINING DETAINEES, 1984

SentenceAge, in YearsTotal
1516171819
Corrective training—
    Males57191213154102717
    Females5101761149

The number of prisoners received to serve a sentence imposed during 1984 for criminal offences was 6472, but deducting multiple receptions of the same prisoner, the number of distinct persons was 5902 (5574 males and 328 females). The corresponding total for 1983 was 6202, involving 5605 distinct persons (5247 males and 358 females).

Table 9.18. NATURE OF SENTENCES OF PRISONERS* RECEIVED

Nature of Sentence19801981198219831984

* Distinct persons.

†Detention centre and borstal training abolished 1 April 1981.

Imprisonment3,5833,7374,2614,7195,135
Detention centre527100.........
Borstal training609123.........
Preventive detention1-1-1
Corrective training-668756886766
         Total4 7204 6285 0185 6055 902
Rate per 10 000 of mean population15.0714.6615.7717.3818.11

Table 9.19. PRISON POPULATION

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
19802,6251762,8018.308.85
19812,3001642,4647.207.71
19822,4741692,6437.778.30
19832,4782222,7007.688.38
19842,7792102,9898.429.06

Prisoners by birthplace. Of the 5574 distinct male inmates received into penal institutions in 1984, 5162 were born in New Zealand (2715 were Maori, and 2447 non-Maori), 224 were born in the Pacific Islands, and 188 in other countries.

Classification and treatment of prisoners

To assist the prisons administration, classification committees; operate in the main reception prisons (Mt. Eden, Waikeria, Wanganui, Manawatu; Wellington, Christchurch and Invercargill) and at Auckland Maximum and Auckland Medium Security Prisons. An important objective is to ensure that prisoners are held in humane conditions and in the minimum degree of security consistent with public safety. Wherever possible inmates 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 particular skills. A variety of evening activities have been introduced into the prisons and training benefit is derived from these activites, whether they be recreational, educational, cultural, individual, or collective.

There are 15 full-time teachers serving in various penal institutions. Part-time teachers supplement the work. Teachers seek to help inmates disadvantaged by lack of education and those undertaking further education or technical courses, either by correspondence or in prison classes. Such courses may be at any level from illiteracy to university degree work. The interest shown by inmates is encouraging, as often it gives them better social and employment skills, and aids resettlement. All institutions receive at regular intervals a supply of well-chosen books from the National Library Service and, in addition, inmates are permitted free use of the library's request service.

Psychological services—Psychologists from the Department of Justice Psychological Service provide advice and evaluation for the Penal Division on policy planning, institution programme development and implementation, individual programme development and implementation, psychological treatment for individuals and groups, and in-service training for prison officers. Advice is given on the best way to provide continuing psychological services. A public or private psychological agency, private practitioner, or the department's own Psychological Service may be suggested. Where psychological work is under taken for the Penal Division by another agency or individual, the department's Psychological Service gives them advice and assistance, and monitors and evaluates the service provided.

Earnings—All inmates are credited with modest earnings based on a system of marks assessed according to diligence. 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. The balance of the earnings is paid to the inmate upon his or her release to help meet financial commitments during the first few days of freedom. Since October 1985 inmates can get a grant from the Department of Social Welfare on release of up to $120.

Punishments—An inmate charged with one of the less serious offences against discipline appears before the superintendent, who may impose a penalty or at his or her 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 it is thought they should be brought before the court. The justice's powers of punishment are wider than those of a superintendent.

Release to work. inmates may be released during the day to engage in private employment. The selection of inmates for this privilege is made by the superintendent. 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 corrective training, or imprisonment for 1 year or more are under the supervision of a probation officer for 6 months on release. During any part of that period, also falling within the maximum period they could have been detained in an institution, they are subject to recall if their behaviour on release is not satisfactory. Inmates serving sentences of imprisonment for life, or preventive detention are released to the supervision of a probation officer for the life of the offender, subject to similar conditions as above. The period of supervision has a dual purpose. It is for the protection of the community against further offending, and is at the same time an aid to the prisoner to re-establish himself or herself. The step from custody to freedom is a difficult one for prisoners, many of whom require assistance, advice, and guidance during this period.

Parole system. The introduction of types of long sentences designed to protect society against the hardened criminal has created the need for a procedure to enable a person serving one of these sentences to be released as soon as he/she shows that he/she is fit to be returned to society.

Two types of board consider parole cases. Persons sentenced to life terms of more than 7 years, or preventive detention, have their cases considered by the Parole Board. Those sentenced to less than 7 years appear before one of 17 District Prisons Boards.

9.3 New Zealand Police

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.

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 deputy assistant commissioner. Police district commanders are responsible for the general preservation of peace and order, for the prevention of offences, and for the detection of offenders in their areas of command.

Policing is maintained by a system of mobile patrols and foot “beats” co-ordinated by a communications network.

The Police have the responsibility for the enforcement of the criminal law principally the Crimes and Summary Offences Acts, but also including various other statutes such as the Arms Act, Sale of Liquor Act, Gaming and Lotteries Act, Misuse of Drugs Act and Transport Act. The summary prosecution of criminal offences investigated by the Police is undertaken in the District Court by trained Police prosecutors. Police in country districts in some cases hold additional appointments such as registrars and bailiffs at District Courts, probation officers, and honorary fishery officers.

Recruiting. Recruit applicants for the police must be between 19 and 32½ years of age. All applicants must meet certain minimal physical qualifications, otherwise they are ineligible to lodge an application. Different physical requirements are made for female applicants, but otherwise all applicants must meet the same strict educational, character, and medical standards. On appointment, recruit trainees attend a 24-week training course at the Police College. Recruit intakes are arranged as required and are subject to resignations and retirements. Examinations for promotion to non-commissioned and commissioned ranks are aimed at selecting members who have shown the necessary potential to become effective supervisors and administrators. Members who show a particular aptitude for the various specialist sections within the Police receive additional training at the Police College and in the field.

Strength. The effective strength of the Police at 31 March 1985 was 5145 sworn personnel, including 263 female members who have equal status and opportunity with their male counterparts. In addition to these members the department employed 776 civilian staff.

Transport. At 31 March 1985 the Police vehicle fleet totalled 955, including 726 cars, 129 vans of various types, 43 landrovers, 57 station sedans, estate cars, command vehicles, omnibuses, trucks, and other vehicles.

National Drug Intelligence Bureau. The 1984 year saw an increase in the availability of the drug cannabis, which was reflected in both the quantity seized and the number of persons prosecuted. A total of 11 301 prosecutions were instituted for drug offences, an increase of 2404 over the previous year.

Availability of hard drugs was again severely restricted, due primarily to the combined efforts of border agencies and enforcement bodies both in this country and overseas. The scarcity of heroin and illicit morphine during this period can be best illustrated by the emergence in New Zealand of 'backyard laboratories' specialising in the manufacture of morphine and heroin from pharmaceutical products.

There was a 135 percent increase in the number of cannabis plants seized—from 47 778 to 112 212 plants and a 90 percent increase in cannabis resin seized—from 7 519 grams to 14 329 grams. Cannabis leaf totalling 487 kilograms was also seized.

There was a decrease in the amount of heroin seized—338.827 grams to 129.47 grams, but a rise in seizures of morphine, up 0.439 grams to 7.32 grams, opium up from 1.049 grams to 500 grams, and cocaine up from 207.759 grams to 290.220 grams. LSD seizures show a decline from 2414.5 tabs in the previous year to 557 tabs.

Search without warrant powers under the Misuse of Drugs Act 1975 were exercised on 661 occasions resulting in 520 seizures. There were 13 drug deaths recorded in 1984.

Armed offenders squads. During 1984 the armed offenders squads attended 155 incidents, compared with 159 in 1983.

A total of 177 members throughout the country now perform armed offenders squad duties on a part-time basis.

Anti-terrorist squad. The anti-terrorist squad made up of selected members of armed offenders squads are provided with specialised training to enable them to deal with a terrorist situation. They exercise with highly trained police negotiators and other specialist police support staff.

Refresher courses are held throughout the year. Training has also been carried out with Ministry of Defence personnel.

Search and rescue. There were 858 police-controlled search and rescue operations during 1984—85, compared with 885 in 1983-84. In 869 of the 1984-85 operations the police were assisted by volunteers.

Early retirement. On 1 May 1985, voluntary early retirement was introduced to the Police for those aged 50 and above with optimum benefits being attained by those who retired at age 55. For those aged below 40 at 1 May 1985, retirement at age 55 will be compulsory. Of the 270 members aged 55 and over at the commencement of the scheme, 215 had opted for early retirement prior to 31 March 1986.

Youth aid section. The total staff employed on youth aid work throughout the country, as at 31 March 1984, was as follows:

General youth aid officers73
General youth aid officers (part-time)43
Police education officers34
Youth liaison officers6
National Headquarters4
                 Total160

With the introduction of the law-related education programme, the role of police education officers has changed. Formerly they were involved mainly in giving talks to children. Now their work involves acting as a resource for teachers, planning and helping teach units of work, and liaising with schools.

General youth aid officers have also continued their involvement in schools, youth organisations, and adult groups. Blue light discos are low established at 15 centres. All venues report pleasing attendances.

Further information

Justice Statistics—Department of Statistics.

Report of the Department of Justice (Parl. paper E. 5).

Report of the Legal Aid Board (Parl. paper E. 7).

Report of the New Zealand Police (Parl. paper G. 6).

Report of the Parole Board (Parl. paper E. 5A).

Royal Commission on the Courts (1978).

Chapter 10. 10 Public safety and accident compensation

10.1 Civil defence

The planning, organisation, co-ordination and implementation of the measures necessary for the safety of the public (except for those emergencies which can be dealt with by the normal emergency services) are described as civil defence. Communities using their own resources and drawing upon volunteers have an obligation to take the steps necessary to prevent or reduce loss of life or distress. Assistance to territorial local authorities in meeting their obligations and the co-ordination of the support of Government planning and resources are the responsibilities of the Ministry of Civil Defence. The declaration of a state of “civil defence emergency” grants special powers to territorial local authorities, to civil defence controllers appointed by them, to the Police, and to the Director and Commissioners of the Ministry of Civil Defence.

The Ministry of Civil Defence was established in April 1959 as an integral part of the Department of Internal Affairs. The current concept of civil defence dates from December 1983 when the Civil Defence Act came into force and replaced the Civil Defence Act 1962.

Every territorial local authority has an obligation to prepare a civil defence plan, to set up a civil defence organisation, and to appoint a Local Controller of Civil Defence for the purpose of dealing with a disaster in its district should the use of civil defence measures be warranted. Neighbouring territorial authorities may unite for civil defence purposes and then together they have an obligation to prepare a combined district civil defence plan, to set up a combined civil defence organisation, and to appoint a Controller of Civil Defence. At 31 December 1984 there were 127 local and combined district civil defence organisations.

Every regional or united council has an obligation to prepare a civil defence plan, to appoint a Regional Controller of Civil Defence, and to set up the organisation necessary for dealing with a disaster in its region beyond the capability of any one particular local or combined district civil defence organisation.

The Ministry appoints a Commissioner of Civil Defence for each civil defence region. Most Commissioners have several civil defence regions in their charge and for administrative convenience these are grouped into civil defence zones as follows:

Northern ZoneNorthland, Auckland, Waikato, Thames Valley, Bay of Plenty, Tongariro.
Central ZoneEast Cape, Hawke's Bay, Wairarapa, Taranaki, Wanganui, Manawatu, Horowhenua.
Wellington ZoneWellington region.
Southern ZoneNelson Bays, Marlborough, West Coast, Canterbury, Aorangi, Coastal North Otago, Clutha-Central Otago, Southland.

Each of the four commissioners exercises powers and functions established in the Civil Defence Act 1983 under the general direction of the Director of Civil Defence in Wellington. The National Civil Defence Committee comprising the permanent heads of 14 Government departments most closely involved in disaster relief measures, together with the Chief of Defence Staff and the Chairman of the Fire Service Commission, has a responsibility to advise and assist the Minister and Director of Civil Defence in the planning and implementation of civil defence measures. Representatives appointed by members of this committee form advisory groups at Auckland, Palmerston North and Christchurch to provide a similar service for Civil Defence Commissioners.

A National Civil Defence Operational Headquarters is established in the sub-basement of the executive wing of Parliament Buildings and is in the charge of the Director of Civil Defence. This headquarters is ready for use but is activated only when required. It provides the means for co-ordinating the use of all Governmental and non-Governmental resources and, where necessary, for the control of the overall civil defence effort where a disaster situation makes demands which cannot be met by a Regional or United Council and the appropriate Civil Defence Commissioner. Each commissioner has an established operational headquarters (Auckland, Palmerston North, Wellington and Christchurch) to enable him to meet his or her operational responsibilities towards each civil defence region in the zone.

Earthquake and war damage insurance

The Earthquake and War Damage Act 1944 is administered by a Commission, which is chaired by the Minister of Finance. All property insured against fire is deemed to be insured to the extent of the indemnity Value against earthquake and war damage. Premiums at the rate of 5c for each $100 of insurance cover are collected by the insurance companies and paid into the Earthquake and War Damage Fund (less commission of 2½ percent).

Advances may be made from the Consolidated Account if at any time the amount in the Earthquake and War Damage Fund is not sufficient to meet the claims thereon.

“Earthquake damage” is defined as damage occurring as the direct result of earthquake or of fire occasioned by or in consequence of earthquake. In 1950 an extension of the scheme was instituted to provide some measure of protection to the insured against storm and flood of an abnormal or widespread nature. In 1954 the definition of disaster damage was extended to include volcanic eruption, and authority was given to the commission to accept insurance against landslip. This latter type of cover does not apply automatically. Finance is provided by crediting 10 percent of the premiums compulsorily collected under the Act to a special Disaster Fund.

Since .1 June 1967 the commission has had power to underwrite the geothermal activity insurance on a voluntary basis.

Regulations were gazetted in March 1984, relieving the commission of liability in respect of losses through storm and flood. The commission no longer provides cover for storm and flood damage on policies renewed or commencing after 1 August 1984. Full details of cover provided are included in the Earthquake and War Damage Regulations 1984 and the Earthquake and War Damage Amendment Act 1983.

For the year ended 31 March 1985 a total of 912 claims were received, the smallest total for 10 years. This compared with 4363 for the previous year. The breakdown of claims was as follows: earthquake, 484; extraordinary disaster, 112; landslip, 316. Respective figures {or the previous year were 1067; 3191; and 105.

Earthquake claims—As a result of seismic activity during the year, 484 claims amounting to $103,581 were registered.

Disaster claims—Claims totalled 112, with payments amounting to $1,287,660.

Landslip claims—A total of 316 claims for this year resulted in payments of $501,675.

10.2 New Zealand Fire Service

From 1 April 1976 the operation and administration of the New Zealand Fire Service became the total responsibility of the New Zealand Fire Service Commission which deals through duly appointed commanders of regions, areas and districts.

Structure of the New Zealand Fire Service

The New Zealand Fire Service Commission—The successor of the Fire Service Commission has 3 commissioners, one (the chairperson) with a special knowledge of administration, while the other 2 have senior operational experience in the fire service. The Secretary for Internal Affairs is also a member of the Commission. The Commission currently owns 1310 vehicles and 570 buildings.

Fire regions—There are 6 administrative regions based in Auckland, Hamilton, Palmerston North, Wellington, Christchurch and Dunedin. Their primary task is to co-ordinate their operational units to work in close-knit organisation.

Fire areas—The fire regions are divided into fire areas, of which there are 20 in ail. They are responsible for developing the fire fighting resources of their areas and for the training and operational efficiency of the brigades in districts within them.

Fire districts—Every united urban fire district, urban fire district and secondary urban fire district which existed immediately prior to the commencement of the Fire Service Act 1975, was declared a fire district under the new Act. There has been some adjustment of fire districts since 1976. As at 1 January 1986 they numbered 270.

Nineteen of the 270 fire districts are served mainly by permanent firefighters but with a leavening of nearly 1000 volunteers. The remaining 251 fire districts are staffed by volunteer firefighters who are an essential part of the New Zealand Fire Service. During 1984 there were 2545 employees and 7334 volunteer firefighters and fire police officers. Two women are now employed as operational firefighters in Auckland, and facilities for women are provided at all permanently staffed fire stations.

Fire safety

Under Part II of the Fire Service Act the Fire Service Commission is required to take an active and co-ordinating role in the promotion of fire safety. Giving effect to this is a Fire Safety Division at National Headquarters, with Fire Safety Departments in each of the fire districts served by permanent firefighters providing a New Zealand-wide fire safety survey and advisory service.

Fire statistics

Forty-one people died as a result of property fires during 1984, compared with 42 in 1983, and 36 in 1982. In 1984 the most common suspected cause of fires resulting in fatalities were vehicle accidents (9 deaths), careless disposal of smoking materials (3 deaths), electric heaters igniting room contents (2 deaths), and deliberately lit (self immolation) (2 deaths). Nine deaths resulted from fires of which the cause was unknown.

Table 10.1. INCIDENTS ATTENDED BY FIRE BRIGADES 1983-84

Incidents19831984

* An exposure fire is where a fire originating in 1 property spreads to another property. Because exposure fires are included in property call details, but refer to 1 incident only, they are subtracted from total fire incidents to reflect a clear total number of incidents attended to by the New Zealand Fire Service.

Fires—
    Structure fires4,8364,565
    Vehicle fires2,4452,576
    Other property fires9851,364
    Oven fires747679
    Chimney fires2,6092,015
    Rubbish fires4,4323,715
    Tree, grass, and scrub fires4,1493,083
    Other fires244249
 20,44718,246
Less exposure fires*169187
                 Total, fire incidents20,27818,059
Non-fire incidents—
    Flammable liquid spills (under 30 litres)2 780x1,992
    Overpressure or rupture (no fire)46x34
    Emergency medical calls (assistance to other agencies)407298
    Rescues (vehicle extraction, etc.)9221,128
    Chemical, hazardous substances, and major spills1,1411,864
    Special services (pump out, lock in/out, etc.)1,2502,994
    Good intent calls (no action required at scene)5,5025,115
    Standby/Assistance1,9271,959
                   Total, non-fires13 97515 384
False alarms—
    Malicious1,8851,822
    Defective apparatus or installation5,4265,631
    Accidental2,9373,430
                   Total, false alarms10 24810 883
                   Total, incidents attended44 50144 326

Fire insurance

Fire is still the main cause of property damage, but today many property owners seek protection not only against fire damage, but also against a wide range of other dangers including water damage, windstorm, explosion, breakages, theft, damage from aircraft, and impact by motor vehicles. Under houseowners' and householders' comprehensive policies, which have largely superseded fire insurance policies for covering dwellings and their contents, many thousands of additional claims are now dealt with each year. Increasing numbers of commercial property owners, too, are extending their fire policies to include damage from other causes.

In the year 1983-84, 2 261 601 policies with a gross cover of over $134,000 million contributed to a premium income of nearly $439 million. Fire claims paid during this time came to about $205 million gross.

The Fire Service Act 1975 revised the apportionment of costs for the annual estimates of the New Zealand Fire Service between the insurance industry (including the levy of fire insurance policies) and the Government in the ratio of almost 3:1.

For 1983-84, Fire Service Commission levies from insurance companies totalled $36,321,000 gross.

10.3 Accident prevention, rehabilitation, and compensation

Accident Compensation Act

The Accident Compensation Act 1972, which took effect from 1 April 1974, was one of the most significant developments in social welfare for many years.

The 3 main objectives of the legislation are: to promote safety in every walk of life; to promote the concept of prompt and effective rehabilitation of all people injured by accident so as to restore them to the fullest physical, mental, social, vocational, and economic usefulness of which they are capable; and to provide prompt, fair and reasonable compensation so that every accident victim will be treated according to his or her real needs.

Cover embracing all 3 objectives extends to virtually everyone in New Zealand, from the smallest child to the oldest citizen.

Accident prevention is promoted by a safety team which aims at co-ordinating existing organisations active in accident prevention, and maintaining its own advisory programme.

Similar stress is laid on rehabilitation, and a staff of field officers has been established in offices throughout the country to make personal contact with the injured persons and to ensure that all necessary rehabilitative measures are effectively undertaken.

As far as compensation is concerned, the Accident Compensation Act:

  1. provides immediate benefits for every person who suffers personal injury by accident in New Zealand, regardless of his or her fault and wherever the accident occurred in New Zealand;

  2. entitles the injured person to compensation both for permanent physical disability and also for loss of earnings on an income-related basis;

  3. provides for regular adjustment in the level of payment to injured persons in accord with inflation; and

  4. provides for everyone an effective insurance against personal injury by accident in New Zealand.

In all, New Zealand has a comprehensive system, the essence of which is that the community itself recognises its responsibility for both the accident toll and its effects; and finances and provides for the victims of all accidents however their injuries are caused.

Accident Compensation Corporation

The Accident Compensation Act 1982, replacing the 3-person Accident Compensation Commission by the Accident Compensation Corporation, came into effect on 1 April 1983, It provided for the corporation to consist of:

  1. not more than six members whose qualifications or experience are likely to be of assistance in carrying out the functions of the corporation, and who are to be appointed by the Governor- General on the recommendation of the Minister of Labour;

  2. the managing director of the corporation;

  3. the general manager of the State Insurance Office.

The members of the corporation, acting as a board of directors, are responsible for policy, whereas the managing director is the chief executive officer of the corporation and responsible for the efficient and economic administration of its functions and the supervision of its staff.

The corporation has a head office in Wellington and regional or district offices in 21 centres throughout New Zealand.

Functions of the corporation.

Safety—The corporation's mission is to support means to prevent accidents and minimise injuries wherever they occur, and to improve occupational health. The ultimate target is for all organisations and individuals to be largely self-sufficient in accident prevention.

The corporation offers a consultancy service to the occupational and rural sectors by providing advice and guidance in accident reduction and in systems for ongoing prevention of accidents. Also offered is a safety audit system which provides a set of standards by which safety management systems can be measured.

A consultancy service in road, home, and recreational accident prevention is provided to organisations involved in these areas to assist them in planning and developing their own programmes and educational resources. The corporation has an accident prevention research programme conducted by corporation staff, and funds individuals and organisations in their own research efforts in safety promotional activities.

Education and training is an important part of the corporation's accident prevention activity with an extensive range of courses, each one tailored to meet the needs of different levels of staff from employees through to top management.

The corporation conducts and co-ordinates major emphasis campaigns on specific hazards. These are supported by a range of accident prevention publications and resource materials.

Rehabilitation—The Accident Compensation Act requires ACC to take all practicable steps to promote a well co-ordinated and vigorous programme of rehabilitation for injured persons who are covered under the Act, with the following objectives, where applicable:

  1. The restoration of injured persons as speedily as possible to the fullest physical, mental and social fitness of which they are capable, having regard to their incapacity;

  2. The restoration of injured persons to the fullest vocational and economic usefulness of which they are capable;

  3. The reinstatement or placement of injured persons in employment.

The overall aim of rehabilitation therefore is to assist injured persons to reach their maximum potential, freed as far as possible from the consequences of the accident.

The corporation has appointed rehabilitation officers who are located at all its offices and are responsible for the following:

  1. Assisting injured persons in identifying their needs, and examining possible options for assistance;

  2. In co-operation with the injured person, planning an individual rehabilitation programme to meet identified needs;

  3. Liaising with hospitals, rehabilitation agencies, government departments, employer and employee organisations, and putting the injured person in touch with rehabilitation help required;

  4. Co-ordinating the rehabilitation programme; arranging for necessary assessments, training or retraining, work trials and work placement;

  5. Arranging for the provision of special equipment and co-ordinating housing and car modifications.

The corporation provides financial assistance to promote rehabilitation funding in the following areas:

  1. Training and retraining programmes for injured persons;

  2. Special equipment to aid independence;

  3. Housing and car modifications;

  4. Other grants which meet the criteria set out in the Act.

To achieve the above the Accident Compensation Act requires the corporation to co-operate with and use services provided by government departments, hospital boards, and other bodies, organisations and professions to the maximum extent possible. The corporation also plays an important role in stimulating, supporting and fostering the establishment of additional facilities for rehabilitation where it considers they are necessary.

Compensation for accidents. People are covered against personal injury by accident under a single comprehensive scheme. For administrative and statistical purposes the population may be categorised as:

Earners—Everyone who receives remuneration either as an employee or as a self-employed person is entitled to both earnings-related compensation and other benefits as summarised below.

Motor vehicle accident victims—Everyone injured by the use of a motor vehicle qualifies for all benefits including (if they receive earnings in New Zealand) earnings-related compensation.

All those not otherwise covered—Tourists and people not earning (housewives, children, students and retired people), who do not normally qualify for earnings-related compensation, are eligible for all other benefits.

The Accident Compensation Act 1982 became effective from 1 April 1983 and provides the following benefits:

Earnings-related compensation—The scheme provides for the payment of compensation for loss of earnings at the rate of 80 percent of normal average earnings at the time of the accident, subject to a present maximum of $728 a week. No payment is made by the corporation for the first week following the accident but if it happens at work (including travel to and from work), an employer is generally required to pay an employee 80 percent of his or her normal rate of pay (including overtime) for this period.

If the injured person has more than one job he or she receives 80 percent of full pay for the first week from his or her employer on the job on which the accident occurred and the corporation pays compensation based on the amount he or she would have earned from the other jobs.

After the first week, earnings-related compensation is paid by the corporation during any period of incapacity to all earners, regardless of how or where the accident occurred.

Full compensation is paid during periods of total incapacity, and partial compensation during periods of partial incapacity.

Full-time self-employed persons also qualify for compensation for loss of earnings at the rate of 80 percent of normal average earnings at the time of the accident, but only after the first week, whether or not the accident happens at work. To protect full-time self-employed people who may have an artificially low income, there is a minimum level of compensation and the option of electing to have assessable income based on the average ordinary-time weekly wage.

Weekly payments generally cease at the age of 65 years, but can continue until the normal retiring age for a particular job. If the accident occurs after 60 years of age, payment continues for a further 5 years; if it occurs after 65 years of age then up to the age of 70 years; and if the accident happens after the age of 70 compensation is payable for 1 year; assuming in all these cases that the injured person was an earner at the time of the accident.

Appropriate adjustments to the amount of compensation payable are made for partial incapacity. In some special circumstances compensation for loss of potential earnings may be awarded.

Earnings-related compensation constitutes taxable income, PAYE tax being deducted at source.

Other compensation—Provision is made for a wide range of benefits, including compensation for medical and hospital expenses, cost of transport to hospital, or wages paid to an attendant or nurse, and for reasonable expenses resulting directly from the accident.

In addition, the injured person may qualify for payment of a lump sum for permanent loss or impairment of bodily function up to a maximum of $17,000; and for loss of capacity to enjoy life, for pain and mental suffering, and for disfigurement, up to a maximum of $10,000.

Fatal claims—In the event of a fatal accident the corporation pays reasonable funeral expenses. Also, the dependent spouse of an earner who has died as a result of an accident can qualify for three-fifths of the earnings-related compensation the deceased would have received had he or she been totally incapacitated but still living. For each of up to 2 dependent children, an additional one-fifth may be paid. Thus a widow with 2 or more children could qualify for the full earnings-related compensation her husband would have received had he been totally incapacitated. In addition, a lump sum of up to $4,000 is payable to the totally dependent widow, plus up to $2,000 for each dependent child. Partially dependent widows and children receive a proportion of these amounts.

The same provisions apply to dependent or partially dependent widowers.

Housewives—As well as the appropriate benefits listed under “Other Compensation” and “Fatal Claims”, housewives who are injured in an accident may, if justified, qualify for the cost of home help; or, in certain circumstances, the husband may be compensated for loss of earnings while he is looking after the house until the injured wife can resume her duties.

Claims for compensation

Handling of claims. The corporation itself deals with claims throughout its network of district and regional offices in the main centres, the only exception being claims by New Zealand seafarers, which are dealt with by P. & I. Services Limited as agents for the corporation. In areas where the corporation does not have an office, either the Post Office or Public Trust Office is available to receive claims and direct them to the appropriate corporation office for processing. Claims are made by a worker injured

at his or her place of employment notifying the employer and filling in a claim form which the employer then forwards to the corporation or local agent; or, in other cases, by direct notification to the corporation or agent. Claims need to be supported by a medical certificate.

It is intended that there should be no long delays in providing compensation. An injured worker who is hurt at work will receive pay from the employer for the first week if he or she is unable to work. If his or her incapacity continues beyond the first week, earnings-related compensation should become available promptly, so that effectively, there is no break in the flow of income. He or she will continue to be paid locally, without delay.

The corporation's objective for the self-employed is that earnings-related payments should begin equally promptly after the first week. Difficulties often arise, however, in determining the weekly amount which on a fair and just basis truly reflects loss of earning capacity. More complex arrangements are necessary arid these are set out in pamphlets available from all offices of the corporation and its agents.

Naturally, it will take time to assess permanent disability, loss of faculty, potential earnings, pain and suffering, loss of enjoyment of life, and the like, but here again it is firmly intended that delays will be minimised and early payments made once the disability has reached a stable condition.

Reviews and appeals. Decisions by the corporation itself or by its agents are subject to a right of appeal. The claimant can first apply to the corporation for a review of the decision. This review will be conducted by the corporation itself, or by a review officer appointed by the corporation. From any decisions made on a review there is a right of appeal to an appeal authority, who has full power to confirm, modify, or reverse any decision by the corporation. There is a further right of appeal to the High Court on a question of law, a matter of general or public interest, or a matter which for any other reason should be heard by the High Court, and to the Court of Appeal on questions of raw only.

Claims received. It should be noted that not all claims result in compensation being paid—especially those made to protect the claimant's entitlement when incapacity has not yet arisen but may do in the future.

Table 10.2. ACCIDENT COMPENSATION CLAIMS RECEIVED

ClaimsYear Ended 31 March
19811982198319841985

Source: Accident Compensation Corporation.

Earners' Account96,65298,866107,433108,572114,066
Motor Vehicle Account11,77111,83012,48116,57216,962
Supplementary Account20,32421,28024,60128,12728,078
                 Total claims128 747131 976144 515153 271159 106

Compensated accidents. The tables related to this section cover accidents in the calendar year 1983. They are confined to claims where victims or their dependants have been compensated for one or more of the following:

  1. Loss of earnings beyond the sixth day after the accident;

  2. Permanent loss or impairment of bodily function;

  3. Other non-economic loss;

  4. Funeral expenses;

  5. Damage to teeth, artificial aids, or clothing;

  6. Medical treatment or transport expenses;

  7. Cost of home help;

  8. Rehabilitation costs; or

  9. Certain other unusual costs.

The tables largely exclude injuries causing less than 8 days incapacity (for which the corporation is not required to pay compensation) and those entailing medical treatment only (for which the doctor is normally reimbursed directly). In addition, the corporation does not always receive claims in the case of non-earners who are injured, which limits the significance of the tables of non-work injuries, especially where children and elderly people are concerned.

Suicides, self-inflicted injuries, and injuries suffered during criminal conduct resulting in a prison sentence are not normally compensated for. Any appearing in the tables are the results of the corporation's discretion to pay compensation under certain circumstances or of the fact that some compensation was paid before the facts were known.

In statistics before 1982 any accidents that occurred while the victim was travelling between work and home were included among work accidents. Such cases, are now shown as non-work. This change affects several of the following tables.

Since claims continue to be received and processed some months after the end of 1984, all figures should be treated as provisional only. All numbers and compensation amounts are as recorded at 31 May 1985.

The tables presented do not exhaust the range of accident details recorded by the corporation, nor do trey attempt to present many of those parameters in combination. For further data see 10.4 Traffic accidents and road safety, and 10.6 Occupational safety. The Accident Compensation Corporation is also happy to respond to requests for more specific or detailed statistics required for a definite purpose by any organisation or individual.

Age and sex of victims. The age and sex of accident victims are analysed in Table 10.3. Different age groupings are chosen for earners and non-earners in order to highlight the especially vulnerable ages.

Table 10.3. COMPENSATED ACCIDENTS 1984: AGE AND SEX OF VICTIM

Age (Years)Earners
MalesFemalesTotal

Source: Accident Compensation Corporation.

0-1445095545
15-1911,4573,12214,579
20-2417,1553,81120,966
25-2912,1382,15914,297
30-349,1842,08711,271
35-397,4732,1579,630
40-445,6721,8967,568
45-494,6751,5196,194
50-544,4481,3825,830
55-594,2051,0075,212
60-641,5883471,935
65 and over692184876
Not stated622587
               Total79 19919 79198 990
Age (Years)Non-earners
MalesFemalesTotal

Source: Accident Compensation Corporation.

0-46844601,144
5-92,1551,3983,553
10-143,1961,7354,931
15-192,1299323,061
20-291,2671,1112,378
30-396269131,539
40-49420510930
50-594427161,158
60-699721,3382,310
70-797081,6402,348
80-892517781,029
90 and over26100126
Not stated6612
               Total12 88211 63724 519

Occupational status of victims.Table 10.4 divides victims of compensated accidents into earners and nonearners, and further analyses their occupational status. “Housewife” may include males describing themselves by that term or equivalent ones.

Table 10.4. COMPENSATED ACCIDENTS 1984: OCCUPATIONAL STATUS OF VICTIMS*

Occupational StatusEnvironment
WorkNon-workTotalCompensation Paid.

* Cases reported and claims paid as at 31 May 1985.

Source: Accident Compensation Corporation.

Earners—Number$(000)
    Employed41,96247,96889,93091,380
    Self-employed5,5133,2448,75713,182
    Both employed and self-employed-212132
    Unemployed-272272217
               Total earners47 47551 50598 980104,811
Non-earners—
    Pre-school child-1,0391,039188
    School student-10,62410,6241,409
    Tertiary student-158158104
    Housewife-3,2803,2801,336
    Unemployed-689689372
    Retired-4,3824,3821,999
    Invalidity beneficiary-349349154
    Visitor from abroad-525525248
    Other or not adequately described-636321
               Total non-earners-21 10921 1095,831
Status and environment not reported--3,4202,833
               Total victims47 47572 614123 509113,475

Injury diagnosis. Data on injuries are compiled from certificates given by medical practitioners at the time each claim is made; therefore diagnoses must be regarded as preliminary, although most will not change. Because the dividing line between an injury and a disease is uncertain, some arbitrary divisions have been made. Generally conditions which develop as a result of some clearly discernible accident or repetitive minor trauma are classified as injuries.

Table 10.5. INJURIES BY TYPE AND SITE 1984

Type of InjurySite of InjuryTotal
HeadNeckTrunkUpper LimbLower LimbMultipleOther

* Includes fracture of the spine accompanied by spinal cord lesion.

Source: Accident Compensation Corporation.

Amputation, avulsion571--62353311,251
Burn119761643416291121,549
Contusion653541,5482,6793,35380249,163
Dislocation3133291,460420331,979
Effect of foreign body281-17----298
Fracture11,8811032,12610,1757,5947292532,633
Superficial injury290354973734534772,665
Injury to internal organ1,7661569--712,344
Laceration1,8721314110,5644,0286217617,315
Injury to nerve, spinal cord *217331031329-3749
Sprain or strain92,02117,6257,21213,4183672940,681
Scald2123317527512012638
Occupational disease------1,0791,079
Other, ill-defined5,13397013923755,57211,165
               Total22 6482 31922 58334 95630 5573 4826 964123 509

Environment. The environments in which accidents occurred are summarised in Table 10.6, along with the result of the injury. It should be noted that work takes precedence over other environments.

Table 10.6. COMPENSATED ACCIDENTS 1984: ENVIRONMENT AND RESULT OF INJURY*

EnvironmentFatalNonfatalTotal CasesCompensation Paid

* Cases reported and claims paid as at 31 May 1985.

Source: Accident Compensation Corporation.

 Number$(000)
Work10147,37447,47549,576
Travelling to or from work473,7373,7845,012
Other97371,27772,25058,887
               Total1 121122 388123 509113,475

Table 10.7. COMPENSATED ACCIDENTS 1984: SCENE AND RESULT OF INJURY*

Scene of AccidentFatalNonfatalTotal CasesCompensation Paid

* Cases reported and claims paid as at 31 May 1985.

Source: Accident Compensation Corporation.

 Number$(000)
Air147387300
Beach or shore (not water)9787796739
Children's play area19910015
Dwelling (victim's own)14120,56320,70415,087
Dwelling (not victim's)133,0683,0812,346
Farm305,5955,6256,472
Hospital361,8881,9241,723
Learning institution, n.e.c.-14814888
Motel or boarding establishment4489493458
Office-389389295
Plant (factory, mill, yard, etc.)3934,07434,11334,339
Public building or area, n.e.c.122,1942,2061,489
Railway14614628655
Road or street including footpath61618,75619,37222,581
School-3,5603,560528
Shop21,5691,5711,383
Sports area—indoors12,9882,9892,172
Sports area—outdoors1513,02213,03710,745
Tavern, bar6895901836
Underground1255256245
Uninhabited area302,9342,9643,045
Water (sea, river, lake, etc.)541,2481,3021,735
Wharf3635638973
Not adequately described785,6305,7084,552
Other2915917674
               Total accidents1 121122 388123 509113,475

Accident sequence. Until 1 April 1980 the Accident Compensation Corporation analysed the causes of accidents using internationally recognised classifications promulgated by the International Labour Organisation and the World Health Organisation. While such classifications provided an interesting synoptic view of accidents, they proved inadequate to the needs of users researching how accidents happen and (more importantly) how they can be prevented. The corporation therefore adopted a system that records in a modular and literal form, three aspects of each accident: what the victim was doing immediately before—the activity; what went wrong—the breakdown; and how the injury was inflicted—the contact. Without requiring any more information from the claimant, this system provides much more detailed and specific data for users of accident statistics.

Table 10.8. COMPENSATED ACCIDENTS 1984: ACCIDENT SEQUENCE (“ACTIVITY”)*

ActivityCasesCompensation Paid

* Cases reported and claims paid at 31 May 1985.

n.o.d.—not otherwise defined. n.e.c.—not elsewhere classified.

Source: Accident Compensation Corporation.

 No.$(000)
Ascending (including climbing or jumping up onto) e.g. stairs, cliff1,7181,583
Boarding or alighting from (excludes jumping from) e.g. car, tractor1,2341,346
Carrying e.g. box, awkward object1,2921,316
Descending (includes climbing down, jumping, diving off, or landing after jumping off) e.g. ladder, truck, pool5,3794,999
Occupying elevated position e.g. on roof, scaffolding, bed3,7804,855
Feeding or outfeeding (machine)151141
Running (n.e.c.) e.g. on grass, floor, road5,1003,593
Handling n.o.d. or n.e.c. (includes throwing) e.g. carcass, wire4,1282,965
In restricted space (includes working in n.e.c.)118166
Clearing jam or blockage of (machine or power tool)169163
Cleaning or oiling (machine or power tool)303343
Lifting or lowering11,41713,040
Moving n.e.c. (simple) e.g. in water, on shower floor7,5186,521
Not relevant, or near (within range of) e.g. another person, noise8,2315,602
Operating n.e.c. or n.o.d. (machine)3,4013,968
Pushing or pulling e.g. door, wool, window3,3103,257
Adjusting machine or work705667
Riding in or on (passenger or n.o.d.) e.g. motorcycle, bus3,2584,023
Stacking, unstacking, loading, or unloading (manual only)1,3231,396
Tending (fire, etc.)11865
Using (includes driving vehicle) e.g. tricycle, knife, skis, hose29,32727,709
Dealing with n.e.c. (animal only, includes human)2,3542,284
Walking on (flat and level, or n.o.d.) e.g. pedestrian crossing, bed of sea10,6288,935
Combating bodily e.g. another person8,2716,241
Ill-defined3,1542,414
Not stated, not coded3,3002,690
Other3,8223,193
               Total activities123 509113,475

The preceding tables give only a very basic outline of the wide range of information on accidents available from the Accident Compensation Corporation. Those requiring fuller information are invited to contact the Chief Research Officer, Accident Compensation Corporation, Private Bag, Wellington.

Financing of the corporation

Financing of compensation. Accident compensation is a form of compulsory insurance where the community as a whole accepts responsibility for the accidents which inevitably will afflict a proportion of its members, as a consequence of the kind of life that society today demands as its right.

The community pays in these ways:

  1. Levies on employers (including the Crown) and on self-employed persons. They are paid through the Inland Revenue Department (as agent for the corporation);

  2. Levies on vehicle owners paid to another agent for the corporation, the Post Office, to pay for motor vehicle claims;

  3. General taxation pays for other claims through the Consolidated Revenue Account.

Employers pay levies on a risk-related scale, ranging from 40 cents to $9.45 per $100 of wages paid, and they classify their employees for the appropriate levy in accordance with the industrial activity in which they are engaged. There are special classes for staff on clerical-management and commercial travelling duties, so that the employer can pay for them at a lower levy rate than that for employees engaged directly in industrial activity. The maximum amount on which a levy is payable is $47,320 a year for each employee.

A levy of 1 percent of earnings applies to self-employed people, regardless of their industrial activity, but the limit of income on which the levy may be imposed is $47,320 a year. Hence, the maximum payable by any self-employed person is $473.20 a year.

Levies for the motor vehicle accident scheme are collected when motor vehicles are registered or reregistered.

Income and expenditure. In Table 10.9 compensation paid and medical expenditure incurred are analysed according to type of expenditure and account charged. Figures refer to the years ended 31 March 1984 and 1985. It should however, be pointed out that in many cases compensation will continue to be paid beyond the year in which a claim is made, sometimes until the claimant is aged 65. Hence the claims shown for any given year are not identical with the claims for which compensation was paid in that year. It could therefore be misleading to attempt to match claims with compensation payments. The true cost of any year's claims is not likely to be known until many years later.

Table 10.9. INCOME, COMPENSATION AND MEDICAL EXPENDITURE BY ACCOUNT TYPE

Income, Compensation, and Medical ExpenditureEarners Compensation AccountMotor Vehicle Compensation AccountSupplementary Compensation Account
198419851984198519841985

* Reduction is due to the movement to a pay as you go scheme.

Source: Accident Compensation Corporation.

Income—$(000)
Gross levy revenue202,929155,286*26,11140,668--
Investment income42,54744,66718,53116,706--
               Total income245,476199,95344,64257,374--
Expenditure—
Earnings-related compensation100,407119,39424,13028,488156268
Dependant's allowances12,26213,26711,32312,522--
Funeral expenses6569721,1461,508305347
Non-economic loss (i.e. lump sums)22,98732,72612,24815,0416,6079,093
Medical treatment17,94521,4674,8355,84319,58923,830
Hospital treatment6,5618,3781,0791,2252,1362,533
Dental treatment1,7811,784425417996937
Conveyance for medical attention2,5362,4662,0691,8411,6531,520
Rehabilitation305524479663182213
Other1,8681,4051,7362,3041,3241,630
               Total compensation and medical expenditure167,308202,38359,46069,85532,94840,370
Safety incentive bonus1,2041,268----
Financial grants443461233257114227
Levy revenue collection fee2,8312,6351,0171,185--
General fund transfer14,09116,1962,7712,9452,1572,325
               Total expenditure185,877222,94363,48174,24235,21942,922
Past period adjustment------
Balance of account280,524257,534115,47998,611-3,1902,394

10.4 Traffic accidents and road safety

Motor vehicle accidents

Compensated accidents in which a motor vehicle was involved during 1984 numbered 14 092 or 11.4 percent of all accidents. Table 10.10 analyses these cases according to the type of motor vehicle, and whether the victim was an earner and in a work or non-work environment. These figures normally exclude accidents causing less than 8 days' incapacity. Because they are collected through a different reporting system, these figures are not comparable with statistics collected by the Ministry of Transport (see Table 10.11).

Table 10.10. COMPENSATED MOTOR VEHICLE ACCIDENTS 1984*

Motor VehicleEarnersNon-EarnersNot ReportedTotalCompensation Paid
WorkNon-work

* As at 31 May 1985.

Source: Accident Compensation Corporation.

 Number$(000)
Motor car2295,2381,42156,89310,011
Rental car31217-3233
Taxi691112721
Truck18825693-537946
Bus38112931244202
Tractor1-1-235
Motorcycle925,29454615,9337,816
Other121-44
Not adequately described1843359-420531
               Total57610 9662 542814 09219,599

Accidents on roads

Motor-vehicle accidents involving death or personal injury are required by law to be reported to the Police. During the year ended 31 December 1984, there were 12 388 reported accidents resulting in 668 fatalities, and injuries to 17 265 other people.

Table 10.11. ROAD ACCIDENTS BY TYPE, 1984

Classification of AccidentsFatalInjuryTotal

Source: Ministry of Transport.

Overtaking37598635
Head on (not overtaking)1151,7851,900
Lost control or ran off road on straight621,5781,640
Lost control or ran off road while cornering1783,0863,264
Collision with obstruction18882900
Rear end17852869
At intersections or driveways—
    Vehicles moving in same direction, one turning261,3331,359
    Vehicles crossing paths, not turning351,7511,786
    Vehicles crossing paths, one turning281,1131,141
    Vehicles merging5289294
    Vehicles moving in opposite directions, one turning right191,5741,593
Vehicles manoeuvring2903905
Pedestrian crossing road931,2431,336
Pedestrian—other21154175
Miscellaneous12124136
               Total66817 26517 933

Table 10.12. PERSONS KILLED AND INJURED IN MOTOR ACCIDENTS: AGE

Age Groups (Years)Killed*Injured
198219831984198219831984

* Killed immediately or died within 30 days of accident.

Source: Ministry of Transport.

Under 5161622305287313
5-9211716567517571
10-14232126817857862
15-191391431494,8384,5084,706
20-241481341383,2833,3633,582
25-297053651,3361,4581,689
30-345333358668981001
35-39282430606643701
40-44222429438514509
45-49222015383386437
50-54242325346342404
55-59232417310345385
60-64182115282314326
65-69171830210260229
70 and over426849416550537
Unknown age8571,0749991,013
               Total67464466816 06816 24117 265

Table 10.13. PERSONS KILLED AND INJURED IN MOTOR ACCIDENTS: TYPE OF VEHICLE, DECEMBER YEAR 1984

Type of CasualtyKilledInjuredTotal

Source: Ministry of Transport.

Driver of—
    Car1815,6735,854
    Rental car36871
    Taxi-3434
    Van21625646
    Truck6131137
    Articulated truck42226
    Bus-1515
    Other21618
Motor cyclist1073,2173,324
Passenger1754,7014,876
Pillion rider18473491
Cyclist31945976
Pedestrian1191,3311,450
Other11415
               Total66817 26517 933

Of particular concern is the number of school children and pre-school children killed or injured on the roads while cycling or on foot, During 1984, 10 child pedestrians under school age were killed. Among child pedestrians and cyclists of school age, 31 were killed in 1984 compared with 22 in 1983, and 811 were injured in 1984 compared with 736 during the previous year.

Table 10.14. TOTAL ROAD TRAFFIC CASUALTIES AND RATES

December YearPersons KilledKilled per 10 000 Vehicles on RoadPersons InjuredInjured per 10 000 Vehicles on RoadCasualties (Killed and Injured) per 10 000 Vehicles

Source: Ministry of Transport.

19795543.213,90380.283.4
19805963.315,95789.292.5
19816703.615,48383.787.4
19826743.616,06885.3x88.9
19836443.416,24184.788.1
19846683.417,26587.791.1

Table 10.15. INTERNATIONAL COMPARISONS: MOTOR ACCIDENT DEATH AND INJURY RATES 1980

CountryPersons KilledPersons InjuredKilled per 10000 VehiclesKilled per 100 000 PopulationInjured per 10000 VehiclesInjured per 100000 Population

Source: Ministry of Transport.

New Zealand59615 957x3.318.889.2x502.6
Australia3,70596,9625.226.0135.1681.0
Great Britain6,831342,9643.812.6188.4631.6

Road safety

Enforcement of traffic and other laws. Traffic on roads in 5 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.

For further information, see chapter 22 Transport and communication.

Road safety education. Publicity directed towards road safety is carried out through the press, radio, and television and by means of posters and other advertising. Special road safety campaigns and traffic improvement courses are held from time to time.

The main emphasis in schools and teachers' colleges centres around integrating traffic education into the current education programmes. Traffic Education Units are co-operatively planned and implemented by traffic instructors and teachers and are based on the special social and traffic needs of the students.

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 24 local road safety committees.

Motor vehicle 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.

10.5 Water accidents

Table 10.16. DROWNINGS BY LOCATION AND AGE GROUP YEAR ENDED 31 DECEMBER 1985P

LocationAge in Years
Under 55-1011-1516-2021-3031-4041-5051-60Over 60Age Not KnownTotal

Source: New Zealand Water Safety Council.

Board sailing-----------
Boating—
    Lake---23-2---7
    River--1-41-1-18
    Harbour----1-112-5
    Sea121457542536
    Ponds-----------
Excavation site-----------
Fishing off rocks----2121--6
Harbours1---22132-11
Household (bath/bucket)1---------1
Lakes, dams, and ponds--121-111-7
Pools—
    Motel/hotel1---------1
    Private swimming61-----11-9
    Public swimming-1--------1
Rivers, streams, and other running waters2-58173569-55
Scuba diving---1412-1-9
Seas and beaches-11542219126
Sheep and cattle troughs-----------
Sludge pond11---1-1--4
Snorkelling----21----3
               Total13692245192120277189
Drowned as the result of a motor vehicle accident19          
Drowned as a result of floods4          
Drowned as a result of a rafting accident:           
    Private7          
    Commercial2          

10.6 Occupational safety

Legislation

The legislation on occupational safety is principally contained in the following statutes (and the regulations made under them). The last two items were actually made under the Electricity Act 1968 but are quoted in their own right.

The Factories and Commercial Premises Act 1981 (sections 18 to 54); the Machinery Act 1950; the Bush Workers Act 1945; the Construction Act 1959; the Accident Compensation Act 1982; the Coal Mines Act 1979; the Mining Act 1971; the Explosives Act 1957; the Dangerous Goods Act 1974; the Boilers, Lifts, and Cranes Act 1950; the Shipping and Seamen Act 1952; the Quarries and Tunnels Act 1982; the Health Act 1956 in so far as it relates to occupational health; the Petroleum Act 1937; the Geothermal Energy Act 1953; the Electrical Registration Act 1979; the Electric Linemen Act 1959; the Agricultural Workers Act 1977; the Electrical Wiring Regulations 1976; and the Electrical Supply Regulations 1976.

Department of Labour. This department has the largest overall responsibility for the prevention of accidents and illness in industry other than the responsibility of the Accident Compensation Corporation as outlined in chapter 10.3 of this Yearbook. The principal statutes administered by the Department of Labour are: the Factories and Commercial Premises Act 1981, which is concerned with safety, health and welfare in factories and other defined undertakings; the Construction Act 1959, which covers safety, health, and welfare of workers on construction work as defined in the Act; and the Machinery Act 1950, which is concerned with the inspection of all machinery (with some exceptions covered by other legislation) in work places and the safety of persons working with such machinery. The department also administers regulations under these Acts, and other statutes dealing with specific spheres of occupational safety, health and welfare, such as the Bush Workers Act 1945, and the Agricultural Workers Act 1977 (section 56). In addition the department supervises more than 1534 collective agreements and awards, many of which include specific safety, health and welfare provisions relating to particular occupations and processes.

The administration of this safety legislation is based primarily on regular inspection of work places and requisitioning for improvements, together with investigation of reported breaches of legislation by employers and workers and investigation of a large number of accidents including serious and fatal accidents in industries coming within the scope of the legislation. The department employs some 204 inspectors of factories (including 16 who specialise in bush undertakings), together with some 58 safety inspectors appointed under the Construction Act 1959, all of whom are qualified by special examination. Their work is substantially preventive. The department also engages in advisory and educational work relating to occupational safety.

A Coordinating Committee for the Development of Occupational Safety and Health, with representation from the Departments of Labour and Health, the Ministries of Energy and Transport and the Accident Compensation Corporation, ensures that unnecessary overlapping of the functions of all Government agencies involved with occupational safety and health is avoided.

Machinery Act—The Machinery Act 1950, with certain exceptions, applies to all machinery and places an obligation on the owners of machines to securely fence moving and dangerous parts. The Act also covers amusement devices, which require a certificate from a registered engineer that the device is mechanically and structurally safe for the purpose intended. The Act also requires the testing and certification of tractor safety frames used in agricultural operations.

Construction Act—The Construction Act 1959, the provisions of which are in addition to and not in substitution for the safety provisions of any other Act, promotes the safety and welfare of persons engaged in construction work. This description covers a wide variety of work including new construction, maintenance, and demolition of buildings, roads, harbour works, railways, canals, bridges, dams, pipelines, earthworks, and the like. Certificates of competency are issued after examination to scaffolders, safety supervisors and construction blasters. A register of suitably qualified construction divers, crane operators and construction riggers is maintained.

Explosives and Dangerous Goods Acts—These Acts are primarily concerned with the storage, carriage and use of dangerous goods, and the import, manufacture, sale, storage, carriage, use and disposal of explosives. The provisions relate particularly to the safety of workers as well as the general public. In most areas local authorities share with the Department of Labour the responsibility for administering parts of the Dangerous Goods Act.

Ministry of Transport

Safety of Ships—A substantial portion of the Shipping and Seamen Act 1952, administered by the Ministry of Transport, is concerned with the safety of ships and those who sail in them. This Act contains the necessary authority for implementing the provisions of the international conventions of which New Zealand is a signatory. These conventions deal principally with ships engaged on international voyages, but the Shipping and Seamen Act 1952 also contains provisions concerning the safety of all other ships plying in and about New Zealand coastal waters.

Aircraft—The Ministry of Transport is responsible for promoting the safety of aircraft and crews engaged in private and commercial carriage of the public and commercial carriage of goods, including agricultural aviation.

Boilers, lifts, and cranes—The Marine Division of the Ministry of Transport carries out inspections of boilers, lifts and power cranes as required by the Boilers, Lifts and Cranes Act 1950. In the calendar year 1983 there were 28 802 inspections of boilers and unfired pressure vessels, 7603 inspections of lifts, and 4222 inspections of cranes. The figures for 1982 were 27 692, 7223 and 4168 respectively. In 1983, 42 accident investigations were carried out under the Act, with 19 people suffering injuries and 3 fatalities. In 1982 there were 33 accident investigations, with 13 people suffering injuries and one fatality.

Ministry of Energy. Three Acts concerned with occupational safety are administered by Mines Division. These are:

  1. The Mining Act 1971—which covers all underground mining other than coal mining;

  2. The Coal Mines Act 1979—which covers all coal mining operations both underground and opencast;

  3. The Quarries and Tunnels Act 1982—which covers opencast mining and quarrying (other than opencast coal mines), dredging and tunnelling. (By definition a quarry does not include road or rail cuttings not forming part of a quarrying operation, bridge approaches, building foundations, excavations for the supply of gas, water, electricity or telecommunication facilities, or the construction of sewerage or drainage works).

The Electricity Division of the Ministry is responsible for the administration of Acts designed to ensure the safety of electrical apparatus and installments and of electrical workers.

The Petroleum Inspectorate of the Oil and Gas Division is responsible for safety in respect of all activities associated with prospecting, mining and transporting petroleum and gas through the Petroleum Act 1937 and subsequent amendments.

Ministry of Works and Development. The Ministry of Works and Development has a safety management and accident prevention policy which recognises that effective management at all levels is necessary to maintain a safe working environment. To assist with implementing this policy safety coordinators have been appointed to provide safety management advice to managers and supervisors. Assistance is also given with on-the-job accident prevention training.

Like all employers the department must comply with various Statutory Acts such as the Construction Act 1959 and Regulations 1961 codes of practice.

Occupational health centres. The Department of Health provides occupational health centres at strategic points in the Auckland, Hutt, Christchurch and Dunedin health districts. Attendances at occupational health centres and waterfront clinics in 1984 totalled 19 451 first attendances and 8930 re-attendances.

For further information on occupational safety, see chapter 7 Health and social welfare, and chapter 12 Occupations and incomes.

Work accidents

Table 10.17 analyses compensated work injuries occuring in 1984 by industrial groups in which the victims were working, and the result of the injury. The groups are those of the New Zealand Standard Industrial Classification (NZSIC).

Because “first-week” incapacity does not usually result in a claim on the Accident Compensation Corporation, it is not possible to compile injury frequency and severity rates as in the past. However, a column is included in the table showing the labour force engaged in each industrial group according to the 1981 Census of Population. From this has been calculated an “injury rate”—that is, the number of compensated accidents per 1000 workers. Although not a comprehensive figure this rate will give a guide to the relative frequency of more serious injuries between the various industrial groups.

It is generally not feasible to make valid comparisons between the figures in the following table and those published for 1973 and earlier years by the Government Statistician. The earlier figures, being derived from claims made under the now-repealed Worker's Compensation Act, included first-week only incapacities. On the other hand, they excluded injuries to self-employed people {notably farmers), which would have particularly affected the number of fatalities shown.

Table 10.17. COMPENSATED ACCIDENTS 1984: WORK ACCIDENTS BY MAJOR INDUSTRIAL GROUP*

Industrial GroupFatalNon-fatalTotalLabour ForceInjury RateCompensation Paid

* Cases reported and claims paid as at 31 May 1985.

† Compensated claims per 1000 of labour force (1981 Census).

Source: Accident Compensation Corporation.

 Number$(000)
Agriculture, hunting, forestry, and fishing306,9616,991144,249488,334
Mining and quarrying15415424,656116660
Manufacturing1518,42518,440311,1305917,581
Electricity, gas, and water186386415,12357750
Construction125,1175,12985,737606,605
Wholesale and retail trade, restaurants, and hotels63,1973,203218,439153,154
Transport, communication, and storage214,4204,441107,829415,270
Financing, insurance, real estate, and business services134034191,6384391
Community, social, and personal services147,1467,160307,575236,408
Not adequately described-36436445,963-423
               Total, all industries10147 37447 4751 332 3393649,576

Table 10.18. COMPENSATED ACCIDENTS 1984: WORK ACCIDENTS BY MAJOR OCCUPATIONAL GROUP*

Occupational Major GroupFatalNon fatalTotalLabour ForceInjury RateCompensation Paid

* Cases reported and claims paid as at 31 May 1985.

† Compensated claims per 1000 of labour force (1981 Census).

Source: Accident Compensation Corporation.

 Number$(000)
Professional, technical, and related workers41,3311,835183,969102,023
Administrative and managerial workers229129345,9936458
Clerical and related workers2988990214,7615913
Sales workers21,1941,196127,10191,279
Service workers73,3933,400106,626323,212
Agricultural, animal husbandry and forest workers, fishermen, and hunters267,0777,103146,295498,345
Production and related workers, transport equipment operators, and labourers5832,59732,655457,9327133,323
Not adequately described-3349,662-23
               Total, all occupations10147 37447 4751 332 3393649,576

Farm accidents

While the increasing mechanisation on the 76 633 farms in 1984 is principally responsible for the high output per unit of labour engaged in farm production, it is equally responsible for the high number of accidents to persons associated with agricultural production.

Normal farm activities and the bringing into production of new land utilised in 1980 some 35 000 trucks, 49 000 disc harrows, 92 000 agricultural tractors and 20 000 fertiliser spreaders. These have taken a high annual toll in accidents and deaths. These figures are further aggravated by the use of some 50 000 chain saws, 32 000 farm bikes, and large numbers of chemical-spraying plants.

The increasing use of chemicals in agriculture for weed control, and as pesticides and therapeutants, has added to the hazards to which those engaged in the agricultural industry are subjected. The Ministry of Agriculture and Fisheries undertakes educational activities to endeavour to reduce the accident rates.

Table 10.19. ACCIDENTS ON FARMS: PATIENTS* DISCHARGED FROM OR DYING IN PUBLIC HOSPITALS 1984

Cause of AccidentsAge of Patients (in Years)Total Patients
0-1415-2425-4445-6465 and Over

* Excludes domestic accidents or accidents in farm homes, motor vehicle accidents.

† Includes readmissions.

Source: National Health Statistics Centre.

Farm machinery4762666312250
Falls5233483020183
Animals1931331116310510
Accidental poisoning167126-41
Firearms231--6
Fire and flames-352-10
Hot substances, corrosive liquids, or steam6483 21
Struck by falling object191610137
Cutting or piercing instruments123469258148
Other and unspecified farm mishaps344162438188
               Total363329398245591 394

Table 10.20. DEATHS FROM ACCIDENTS ON FARMS* BY CAUSE AND AGE GROUP OF DECEASED

Cause of Fatal AccidentAge of Deceased (in Years)
0-1415-2425-4445-6465 and OverTotal Deaths
198219831982198319821983198219831982198319821983

* Excludes domestic accidents or accidents in farm homes, motor vehicle accidents.

Source: National Health Statistics Centre.

Farm machinery-4143381121314
Struck by falling object----1-31--41
Animal being ridden-1111-1---32
Other injury by animals2---1-1---4-
Electric current----------3-
Drowning or submersion21--------21
Falls----11----11
Accidental poisoning-------1-1-2
Cutting or piercing instruments Other and unspecified----21--1-31
               Total4625115143233322

10.7 General accident statistics

Total accidents

Accidents, poisonings, and violence caused approximately 8 percent of the total deaths in each of the years 1976 to 1980, 7 percent in 1981 and 1982 and 6 percent in 1983.

Table 10.21. DEATHS AMONG TOTAL POPULATION FROM EXTERNAL CAUSES

Causes of DeathNumber of DeathsRate per Million of Mean Population
198119821983198119821983

* Includes falls on board ship and from horseback.

†Includes drowning from water transport.

Source: National Health Statistics Centre.

Motor-vehicle accidents707730647224229201
Other transport accidents*655831211810
Accidental poisoning222124777
Accidental falls3203102401019774
Accidents caused by machinery212626788
Accidents caused by fire and explosion of combustible material44352614118
Accidents caused by firearms665222
Accidental drowning and submersion114122135363842
Suicide and self-inflicted injury320364352101114109
Homicide424151131316
All other external causes164167143525244
               Total deaths from accidents, poisoning, or violence1 8251 8801 680578591521

Table 10.22. REGISTERED DEATHS BY LEADING EXTERNAL CAUSES, SEX AND AGE 1983

Age Group (in Years)Motor Vehicle AccidentsAccidental DrowningsAccidental PoisoningsAccidental Falls
MFMFMFMF
Under 1537202582-2-
15-2421962365419-
25-3467173014211-
35-4437101212232
45-542615711152
55-6424186-2162
65-742723122-1417
75 and over2421----46121
               Total4611861171817796144
Age GroupSuicide and Self-inflicted InjuryHomicideAll Accidents, Poisonings, and Violence*
MFMFMF

* Includes causes other than those shown in table.

Source: National Health Statistics Centre.

Under 1531239649
15-24581212337996
25-34481611320045
35-4440233310945
45-5424356-8036
55-643115-38343
65-743213119461
75 and over147--98166
               Total25010235161 139541

Accidental fails

The number of deaths due to accidental falls has fallen from 359 in 1979 to 240 in 1983. This is one accident area in which the total female mortality exceeds the male. However, there is an excess of male deaths over female deaths between the ages of 15 and 74 years. At 75 years of age and above, the higher life expectancy of females ensures that more elderly women than elderly men are exposed to the risk of fatal falls.

In 1983 the home was the place of occurrence of 41 percent of fatal occidental falls and, in fact, falls are the chief cause of death in home accidents particularly for the aged and infirm.

Site of non-transport accidents

Accidents occurring at home and in residential institutions (rest homes, hospitals, etc.) accounted for 65 percent of all fatal non-transport accidents in 1983.

Table 10.23. PLACE OF OCCURRENCE OF FATAL NON-TRANSPORT ACCIDENTS*

Place of OccurrenceNumber of AccidentsRate per Million of Mean Population
198119821983198119821983

* Excludes surgical and medical misadventure, late effects of accidental injury.

Source: National Health Statistics Centre.

Home (including home premises and vicinity and any non-institutional place of residence)252253215807967
Farm (including buildings and land under cultivation, but excluding farm and home premises)3329201096
Mine and quarry432111
Industrial places and premises182323677
Places for recreation and sport1384431
Street and highway71115235
Public building (building used by the general public or a particular group of the public)13137442
Residential institution (homes, hospitals, etc.)145134113464235
Other specified places838587262727
Place not specified39352912119
               Total607594515192187160

Deaths of pre-school children

Recent Yearbooks have included a review of mortality rates among children aged 1 to 4 years in New Zealand and in selected overseas countries. New Zealand rates have been disappointingly high.

In 1983 New Zealand's age-specific mortality rate for children aged 1-4 was 55.4 per 100 000 compared with 32.8 per 100 000 in Sweden (1983), 46.5 per 100 000 in England and Wales (1982), and 53.0 per 100 000 in Australia (1983).

Various explanations have been attempted, but the fact remains that New Zealand pre-schoolers are at a higher risk of accidental death than pre-schoolers in many other countries with similar standards of living.

Table 10.24 shows the number of deaths of pre-school children from accidents and violence in New Zealand during 1983. The leading causes, accounting for 40 of the 52 deaths, were accidents involving drowning and motor vehicles.

Table 10.24. DEATHS OF PRE-SCHOOL CHILDREN FROM ACCIDENTS AND VIOLENCE 1983, BY LEADING CAUSE AND AGE

Causes of DeathSexAge (in Years)
1234Total

Source: National Health Statistics Centre.

DrowningM544215
F4--26
Motor vehicle accidentsM26-210
F33219
Mechanical suffocationM--112
F11-13
FiresM--1-1
F1---1
PoisoningM1---1
Inhalation of object with respiratory obstructionM 1--1
Electric currentF--1-1
Late effects of accidental injuryM1---1
Other and unspecified accidentsM-1--1
               TotalM9126532
F943420
               Total 18169952

Further information

Official publications

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

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

Diseases arising from occupation—Department of Health.

Report of the Earthquake and War Damage Commission (Parl. paper B. 11).

Hospital and Selected Morbidity Data—National Health Statistics Centre, Department of Health (annual).

Laboratory safety—Department of Health.

Labour and employment gazette—Department of Labour.

Report of the Ministry of Transport (Parl. paper F. 5).

Monthly abstract of statistics—Department of Statistics.

Mortality and Demographic Data—National Health Statistics Centre, Department of Health (annual).

Motor accidents in New Zealand—Ministry of Transport.

Report of the New Zealand Fire Service Commission (Parl. paper G. 8).

Poisons and poisonings—Department of Health.

The Public Health: Report of the Department of Health (Parl. paper E. 10).

Chapter 11. 11 Arts, recreation and tourism

11.1 Support of the arts

In New Zealand, as in most other countries, both the Government and local authorities have recognised the importance of the arts in the life of the community and have provided increasing support. The traditional sources of assistance to the arts in New Zealand are the Queen Elizabeth II Arts Council, which had its origins in 1947 as a cultural fund; the New Zealand Literary Fund, administered by the Department of Internal Affairs, which was established in 1946; the New Zealand Historic Places Trust; and the National Art Gallery and Museum. More recently established are the New Zealand Authors' Fund, which compensates authors for the loss of royalties through having their books lent by libraries; and lottery profits, which are used extensively to assist art galleries, museums, and cultural organisations. The New Zealand Authors' Fund and the lottery profits schemes are administered by the Department of Internal Affairs. A major contribution to cultural activity is the New Zealand Symphony Orchestra which is administered by the Broadcasting Corporation. The Ministry of Foreign Affairs has been involved in fostering the arts through its Cultural Exchange Programme, established in 1974. Modest in financial terms, the programme's objective is to facilitate exchanges in all branches of the arts, including music, theatre, painting, crafts, sculpture, and writing, so as to enable New Zealanders to gain a closer firsthand knowledge of the culture of other countries. At the same time, it is hoped that the programme will stimulate the already active cultural scene in New Zealand and through tours and exhibits abroad extend overseas knowledge of New Zealand's cultural achievements. In planning and implementing the programme the Ministry of Foreign Affairs works closely with such organisations as the Queen Elizabeth II Arts Council, art galleries, and other groups and individuals. Financial contributions are also made to arts organisations through the Ministry of Recreation and Sport.

Table 11.1. GRANTS TO THE ARTS FROM GOVERNMENT AND LOTTERY PROFITS 1985-86

GroupGovernment AssistanceLottery Grant

Source: Department of Internal Affairs.

 $(thousand)
Queen Elizabeth the Second Arts Council6,2383,500
New Zealand Film Commission4,513750
New Zealand Film Archive-100
Special Projects in the Arts-200
Conservation of Cultural Property-200
New Zealand Literary Fund126100
National Art Gallery and Museum3,657200
New Zealand Historic Places Trust185750
New Zealand Authors' Fund398-
Cultural Facilities Scheme-500
Art Galleries and Museum Scheme-650
Crafts Council of New Zealand-120
               Total15,1177,070

Queen Elizabeth II Arts Council. The Queen Elizabeth the Second Arts Council was formed in 1964 to promote the practice and appreciation of the arts in New Zealand. The council assists individuals working in the arts, and incorporated and non-profit making organisations, which have consistent levels of artistic achievement, maintain sound standards of management and promotion, and can offer career opportunities to trained and gifted people. Activities which are professional in character and standard thus receive priority for financial support. In 1974 the Queen Elizabeth II Arts Council Act was amended

and the Arts Council was expanded to include 3 regional councils and a national network of community arts councils. A council for Maori and South Pacific Arts was also established in 1978. These new statutory provisions have led to the introduction of a range of programmes which complements the existing pattern of arts support. Schemes designed to assist the arts at a community level including the preservation and extension of Maori and Polynesian cultural traditions now absorb 16 percent of the council's annual grant. For the year ended 31 March 1986 the council received funds totalling $9,738,000, of which $3.5 million was provided from New Zealand Lottery Board profits. Forty-seven percent of these funds were used to support 6 professional theatres, 4 regional orchestras, a modern-dance, a ballet, and a professional opera programme. The maintenance of training schools and grants for individual artists absorbed a further 21 percent of the council's funds, and about 10 percent of the grant was used to assist touring exhibitions and performances, and a variety of practical support programmes.

New Zealand Film Commission. The New Zealand Film Commission was established in November 1978 and its functions, powers, and duties are defined in the New Zealand Film Commission Act 1978. Administration expenditure is met by the Department of Internal Affairs. Each year, the Film Commission offers financial assistance to a considerable number of film projects, both for development and for production.

Interim conservation committee. In 1979 an Interim Advisory Committee for the Conservation of Cultural Property was appointed to advise the Minister for the Arts on all conservation matters for cultural property. Specific areas include paintings and works of art, ethnography, books and documents, films, photographs, machinery, and textiles.

Art galleries and museums. The General Purposes Distribution Committee of the New Zealand Lottery Board provides subsidies on capital works and equipment at art galleries and museums. In addition, major metropolitan museums in Auckland, Wellington, Christchurch, and Dunedin and the New Zealand Art Gallery Directors Council receive subsidies towards the salaries of liaison officers, who provide smaller public galleries and museums with practical advice and assistance.

National Art Gallery. The National Art Gallery, first opened in 1936, is a museum of fine arts, which holds collections and shows exhibitions covering national and international culture. It is administered by the Board of Trustees of the National Art Gallery, the National Museum and the National War Memorial. The gallery is an educational institution devoted to preserving significant art works and through these items interpreting to the public the artistic development of New Zealand and the achievement of New Zealand's artists. Through its international holdings and the staging of exhibitions of works from a wide international spectrum it allows the public to view world cultural history and developments. Beyond this traditional museum role the National Art Gallery also serves as a general cultural facility for the New Zealand community: it is a venue for performances, meetings both formal and informal, recitals, concerts, receptions, lectures, films and other related activities.

National Museum. The National Museum was established in 1865, and its functions are to acquire, preserve and display collections of material related to New Zealand and the Pacific. The collections specialise in Maori and Pacific culture, colonial history, entomology, plants, birds, and marine animals. There is also a large specialist research library and a photographic archive containing over 84 000 glass plate and other historical negatives. Research staff provide a servicing function for other government departments and the public in ethnological, biological and historical research (including antiquities). The museum publishes research results in National Museum Records, National Museum Bulletin, National Museum Miscellaneous Series, and other Government publications. General booklets and brochures are also produced in connection with educative and display functions.

Protection of antiquities and archaeological sites. The Antiquities Act 1975 includes provisions controlling the sale of Maori artifacts in New Zealand. Artifacts found after 1976 are deemed to be Crown property. There are export controls on a range of items of historical significance; Maori artifacts; chattels relating to the European discovery, settlement or development of New Zealand; written and printed matter; works of art, reproductions, prints, films and sound recordings; type specimens of animals, plants and minerals; meteorites; remains of extinct fauna; and items of shipwreck. The Historic Places Act 1980 deals with the protection of archaeological sites. It is necessary to obtain the consent of the New Zealand Historic Places Trust before damaging, destroying, or modifying any archaeological site or undertaking a scientific archaeological investigation of any site. To enable the purchase of Maori artifacts and historic paintings, the Government continues to make grants to the National Museum and to the National Art Gallery.

National Archives. National Archives selects, preserves, and makes available state records of permanent value, drawn from various areas of government; Parliament, Ministers of the Crown, departments, the armed services, the court, commissions of inquiry, and other agencies. Archives preserve evidence of the functions, policies, transactions and decisions of government which have affected New Zealanders' lives, liberties, property, rights and status as citizens. They provide information on events, great and small, which have influenced the course of New Zealand's development. To ensure their preservation, National Archives has statutory control over the disposal and destruction of public records. National Archives advises and assists local authorities in preserving their archives.

The National Archives holds an estimated 20 000 linear metres of written and typed documents, and in addition some 500 000 maps and plans as well as a large number of photographs and pictures. The holdings constitute the largest source of unpublished information on a whole range of public and private activity in New Zealand—political, social, economic, scientific, military, technological and administrative. Important and interesting records from the nineteenth century include those of the New Zealand Company, the provincial governments, the Colonial Secretaries and the Governor. Records from this century include material from the numerous war-time agencies (such as the National Efficiency Board, the Aliens Authority, the National Service Department and the Rehabilitation Department) in addition to the variety of records from the war zones. There are also records from government reviews and planning (like the National Expenditure Commission, 1932, the National Development Conference, 1969-74, and the Commission for the Future, 1977-82). Papers of famous politicians such as Richard John Seddon, Sir Walter Nash and Norman Kirk are held as well as those from a number of former Cabinet Ministers.

National Archives arranges and describes the archives and provides reading and reference services, which are used by historians, geographers, economists, sociologists, scientists, students, lawyers, genealogists and public servants.

New Zealand Historic Places Trust. The New Zealand Historic Places Trust is empowered to identify, protect, preserve and foster public interest in historic places. Historic places include old European and Maori buildings and monuments, historic sites, Maori traditional sites, and archaelogical sites. The trust is governed by a board of trustees which includes representatives of various interested organisations. The board has the power to issue protection notices to prevent demolition or damage to buildings which have historical significance or architectural qualities which merit preservation. Professional staff work in the trust headquarters in Wellington and regional officers and archaeologists are employed in Auckland and Otago. The trust has curators at a number of its properties. More that 17 000 members provide financial and practical support and regional committees operate locally to advance the trust's aims. Some 4500 nineteenth and early twentieth century buildings have been classified by a trust committee. The trust has responsibility for a number of historic buildings and sites, some of which are open to the public. In addition the trust administers properties owned by other organisations and a number of historic reserves. Technical advice and financial assistance is given to private owners to assist in the preservation of both Maori and European historic building and sites. The trust also maintains a register of archaeological sites, and has the authority to investigate sites and prohibit unauthorised fossicking. To stimulate public interest the trust has marked many historic places with plaques and noticeboards. It also publishes leaflets, a quarterly magazine on historic preservation in New Zealand and books, including 2 major works on historic buildings of the North and South Islands.

Awards in literature and the arts. The New Zealand Literary Fund provides writers with project grants, bursaries, and guarantees for publication of literary works and magazines. The fund also offers privately sponsored awards such as the ICI Writer's Bursary, the Choysa Bursary for children's writers, the Queen Elizabeth II Arts Council/New Zealand Literary Fund Playwright's Award and fellowships at Victoria University, and the Universities of Auckland and Canterbury. Promotional programmes include The New Zealand Book Awards (funded jointly with The Arts Council), the Government Publishing Awards for the New Zealand Children's Book of the Year (sponsored by the Government Printer), and the New Zealand Book Council's Writers in Schools Scheme. Other privately sponsored awards for writing are the James Wattie Book of the Year Award and the Bruce Mason Playwriting Award. The University of Otago offers fellowships in literature (Robert Burns Fellowship), painting and sculpture (Frances Hodgkins Fellowship), and music (Mozart Fellowship). The New Zealand Authors' Fund makes payments to writers in compensation for loss of royalties through library use of their books.

11.2 Books and libraries

In general, New Zealand is 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. As at 31 March 1985 free local authority libraries provided library services to 2.7 million people, with a book stock of 6.5 million volumes, and over 26 million issues per annum. Since 1980, library education has been given by 2 schools at Victoria University of Wellington and at Wellington Teachers College.

National Library of New Zealand. The role of the National Library is to collect, preserve and make available recorded knowledge, particularly that relating to New Zealand; to supplement and further the work of other libraries and related information services in New Zealand; to enrich the cultural life of New Zealand and to enrich its cultural interchanges with other nations. Activities of the National Library are carried out by 6 divisions: Alexander Turnbull Library (developing research and special collections); Collection Management (acquisition, cataloguing and conservation); New Zealand Bibliographic Network (on-line bibliographic database); Reference and Interloan Services (reference and inter-library lending); Regional Services (outreach and consultancy); and Support Services (management support and administration).

The selection policy of the National Library is administered by Collection Management, and dedicated to building a collection of books, serials and non-book materials covering all subjects at a general level, but with greater depth in certain subject areas. This is determined according to the demands made on the collection by interlibrary lending and on the availability of material in other libraries. Material is also acquired for 40 government department libraries. Cataloguing and classification information is input directly into the bibliographic network database.

The New Zealand Bibliographic Unit is responsible for producing New Zealand National Bibliography, a comprehensive microfiche listing of books, pamphlets, art prints, music scores, sound recordings, maps and serials. The unit also produces the Index to New Zealand Periodicals and is responsible for the maintenance of the national agencies for international standard serial and book numbers.

A Conservation Unit operates for the preservation and restoration of material of intrinsic value, conservation of items for exhibitions, and preparation of materials for loans. The Microfilm Production Unit also has a preservation role by carrying out a programme of filming deteriorating newspapers to preserve their information content. Current and old newspapers are also filmed.

New Zealand Bibliographic Network. The New Zealand Bibliographic Network is a national holdings database and aims to provide a co-ordinated bibliographic support system for the National Library and through networking facilities to the wider library community. It also acts as the national agency for the exchange of internationally compatible bibliographic records. The bibliographic network has the potential to be both a database and communications network. Other databases may be made available to network participants through the communication link. As at 31 December 1985, 35 libraries, excluding the National Library, were participating in the network, having access to 3.5 million bibliographic entries. Participants are also able to access, through the network, the Department of Statistics INFOS database. The National Library co-operates with overseas libraries in the development of the computer software (the Washington Library Network) on which the database operates.

Reference and interloan. Under the auspices of the New Zealand Library Association a comprehensive system of interlibrary co-operation has been developed, particularly in the use of resources by means of inter-library loans whereby material from one library can be lent to a user in another. The Interloans Unit of Reference and Interloan Services acts as a clearing-house for requests received from libraries throughout New Zealand and overseas. To satisfy the needs of the service the National Library has the responsibility for maintaining and developing a central reference and lending collection as a national resource in many subjects and as support stock for major subject collections where there is no national subject library. Major reference material is held and there is on-line access to overseas databases. The service responded to 113 000 requests during 1984-85 supplying 102 000 volumes. The central collection holds 590 000 volumes and 1.5 million microfiche.

Outreach and consultancy services. To assist the development of public libraries and other agencies to offer free and readily accessible library service, and to enhance rural service, the National Library supplements the resources of public libraries, develops library services where no other such provision is made, and promotes co-operation in library matters throughout New Zealand. These activities are co-ordinated by the library's Regional Services sector operating from Hamilton, Palmerston North, Wellington and Christchurch. Public libraries eligible for the supplementary services offered are those outside the major metropolitan areas and which operate a free service. They receive exchanges of books from bookvans, are provided with a request and information service, bulk loans of books from the operating centres and special collections including large print books and cassettes. Direct assistance is also given to local authorities in the assessment and planning of library services. Regular exchanges of books are supplied to the Cook and Niue Islands.

Libraries receiving books and services at 31 March 1985 included 163 free public libraries, 658 small community libraries and groups and 113 other libraries and institutions. In the exchange programme 374 000 books were lent and a further 153 000 were lent as a response to requests or as loan collections. The National Library is also responsible for providing library support services to schools to facilitate access by children and young people to books and information. This is assisted by supplementing and complementing the collections of school library resource centres from Regional Services Wellington-based collections and those of its 12 district centres. An important function of the National Library is to collect a wide representative range of resources for the National Children's Collection. As well as providing books, information and reference services are provided as a supplement to those offered by school libraries. Advisory and consultancy staff work closely with Education personnel in promoting school library development to ensure the strengthening of the integration between teaching practices and the necessary support services. At 31 March 1985, 2500 secondary, 376 primary and 235 pre-school groups had been given assistance during the year.

SATIS (Scientific and Technical Information Service) is a regionally based information service to the business and industrial community and currently operates from centres in Auckland, Wellington and Christchurch. The service had 674 clients in 1984-85.

Alexander Turnbull Library. The Alexander Turnbull collections are a major historical resource for scholars and researchers. The original collection, bequeathed by Alexander Horsburgh Turnbull (1868-1918) consisted of 55 000 volumes, but acquisition since then has increased the collections to 198 000 volumes of books, 534 000 photographic prints and negatives, 40 000 drawings and prints, 21 750 maps, 2600 metres of manuscripts and 15 400 reels of microfilm. Supporting these collections are extensive collections of private papers and archives. Special collections include materials relating to New Zealand, the Pacific, early printed books, John Milton and his times and the arts of the book. As national research collections of last resort, the library fosters research and publication based on these collections to enrich human knowledge.

General Assembly Library. The General Assembly Library, which forms part of the Parliamentary Service, provides library, information, research and reference services for Parliament as required by the Parliamentary Service Commission. The library's collection?, which number over 500 000 volumes, are strongest in subjects relevant to Members of Parliament for their legislative duties. These include economics, politics, public administration, law, social sciences and biography. The library has one of the largest collections in the country of books, pamphlets, periodicals and newspapers relating to New Zealand. Several New Zealand daily newspapers are indexed. The National Documents collection comprises parliamentary papers and publications of overseas governments, mainly English-speaking, and of international organisations such as the United Nations, the OECD, and the EEC. It is available for public use.

Copyright. Copyright comes into existence automatically upon the completion of any original literary, dramatic, musical, or artistic work (including photographs). No registration is necessary (or even possible), nor is any other formality required for securing copyright protection. Copyright also exists in New Zealand for sound recordings, cinematograph films, broadcasts, and published editions (typography) of literary, dramatic, and musical works. Copyright in literary, dramatic, musical, and artistic works (except photographs) continues until 50 years after the author's death, if the works are published in the author's lifetime, and until 50 years after publication or 75 years after death (whichever is shorter) if they are unpublished at the death of the author. Copyright in photographs, sound recordings, cinematograph films, and broadcasts continues until 50 years after the making, and in editions until 25 years after publication. Copyright in New Zealand in literary, dramatic, musical, and artistic works and in cinematograph films extends to all countries which are parties to the International Convention for the Protection of Literary and Artistic Works (Berne Copyright Union) and to all countries which are parties to the Universal Copyright Convention. In some cases, sound recordings, broadcasts, and published editions are also protected overseas. New Zealand is a party to both conventions. Most countries of the world have acceded to the one or the other or both conventions. New Zealand has acceded to the Convention for the Protection of Producers of Phonograms Against Unauthorised Duplication of their Phonograms. The convention obliges each contracting state to protect the producers of phonograms (i.e., records, cassettes, and other exclusively aural fixations of a performance or other sounds) against the unauthorised reproduction of their phonograms, and against the importation and distribution to the public of such unauthorised reproductions. In New Zealand certain disputes relating to performing rights of copyright works, sound recordings, or films may be determined by the Copyright Tribunal.

Publishing.Table 11.2 classifies the publications for 1984 and 1985 which have been included by the National Library of New Zealand in the New Zealand National Bibliography. Variations in statistics from year to year should not be interpreted as strictly equivalent variations in book production, but as publications for which it has been possible to prepare entries in the bibliography.

Table 11.2. NUMBERS AND TYPES OF PUBLICATIONS

Subject19841985
BooksPamphletsTotalBooksPamphletsTotal

Source: National Library of New Zealand.

General584410272106178
Religion, theology, philosophy53541077884162
Sociology, statistics5344976770137
Political science, economics203263466272339611
Law, public administration, social welfare192190382217246463
Education8812721588132220
Trade, communications, transport45571025461115
Linguistics, philology12913426310774181
Sciences162201363137153290
Technology and trades114114228227310537
Agriculture, forestry493786124208332
Domestic science3357905348101
Commercial management80951755454108
Fine arts, etc.8859147115139254
Entertainment, sport171151329387180
Literature142158300136153289
Geography, travel462066462672
History, biography14982231163128291
               Total1 7011 8513 5522 1032 4184 521

11.3 Radio and television

Broadcasting Corporation of New Zealand. The Broadcasting Corporation of New Zealand (BCNZ) is a public corporation, responsible to parliament through the Minister of Broadcasting, and operates a radio and a television service. The corporation consists of not fewer than 7 and not more than 9 members appointed by the Governor-General on the recommendation of the Minister of Broadcasting. The corporation appoints a Chief Executive, and under the Chief Executive, Directors-General of Radio New Zealand and Television New Zealand, and a General Manager Resource Services. The Secretary of the Corporation is the board's administrative arm.

In general terms the corporation's responsibility is to carry on public broadcasting services and to develop, extend, and improve them in the public interest. In doing so, it must have regard for the general broadcasting policy of the Government. The Minister may direct the corporation in writing although not on specific programmes or complaints, the gathering and presentation of news and current affairs material, the editorial content of the New Zealand Listener, and personnel matters. Any such direction by the Minister must subsequently be gazetted and laid before Parliament.

The corporation is required to maintain standards of accuracy, impartiality, decency, and good taste; and to this effect must promulgate rules governing programmes and advertising. The Independent Broadcasters' Association is represented on the committee formulating these rules. Additionally the corporation is charged with providing a range of programmes catering in a balanced way for the varied interests of the community, with maintaining a New Zealand identity in its programmes, with respecting the privacy of the individual, and with avoiding the coincident presentation on the 2 television channels of programmes of a like nature. Formal complaints from the public alleging breaches of the prescribed programme standards, may be laid with the corporation or private radio stations. Cases of alleged unfair treatment or invasion of privacy are referred to the Complaints Committee, which was established by the 1982 Broadcasting Amendment Act. All complaints must receive proper consideration, and complainants dissatisfied with the decisions of these bodies may refer to the Broadcasting Tribunal for final adjudication.

The corporation is responsible for the publication of the New Zealand Listener and for the administration of the New Zealand Symphony Orchestra. Up to two-thirds of the cost of operating the orchestra may be met by Government appropriation.

The corporation is empowered and expected to promote and encourage artistic, cultural, and educational development in the community.

In 1985, the Government established a Royal Commission to inquire into the institutions, operations, financing and control of New Zealand Broadcasting and related telecommunications and to recommend any changes to improve the ability of broadcasting to serve all New Zealanders.

Finances. The Broadcasting Corporation has two principal sources of revenue, licence fees and radio and television advertising. Since 1975 the proportion of total revenue contributed by licence fees has been steadily diminishing, and at the end of the 1984 financial year it accounted for less than 17 percent of the total. Under the 1976 Broadcasting Act, licence fees are collected by the New Zealand Post Office and paid by the Post Office into the Broadcasting Account, established under the Act, through which all the BCNZ's income and payments are handled. The corporation subsequently repays to the Post Office the costs which the latter has incurred in collecting the fees. There is no separate radio licence fee. The annual fees for television sets, unchanged since 1975, are $45 for colour and $27.50 for monochrome. At 31 March 1985 a total of 947 155 licences had been issued of which 860 713 were for colour sets.

Table 11.3. BCNZ GROSS REVENUE FROM LICENCE FEES AND ADVERTISING

Item1980-811981-821982-831983-841984-85

Source: Broadcasting Corporation of New Zealand.

 $(thousand)
TV licence fees35,40438,08338,57240,02240,672
Radio advertising25,95833,33840,46242,48546,857
TV advertising68,80590,997115,617120,792148,288
               Total130,167162,418194,651203,299235,817

Broadcasting tribunal. A tribunal of 3 members, appointed by the Governor-General on the recommendation of the Minister of Broadcasting, is empowered to consider applications and grant warrants for additional radio stations, public or privately-owned, and to renew existing warrants. The tribunal has no authority over any shortwave station. Neither may it grant a warrant for any television station additional to TV1 and TV2 without the express permission of the Minister of Broadcasting. In 1984 the Government directed the tribunal to consider applications for 4 television warrants for the development of a regionally-based private television network covering all of New Zealand in competition with the Broadcasting Corporation.

The tribunal is also empowered to consider and determine complaints which in the opinion of the complainant have not been satisfactorily dealt with by the Broadcasting Corporation, a private radio station or the Complaints Committee. The tribunal must have regard for Government policy on broadcasting and must comply with any written direction from the Minister which does not derogate from its duty to act judicially. Any such direction must subsequently be gazetted and laid before Parliament.

Radio

Radio New Zealand provides programmes for 64 medium-wave broadcasting stations, 2 short-wave transmitters of the External Services Division, the latter having a number of assigned frequencies, and 3 VHF-FM stations. Of the medium-wave stations, 38 broadcast advertising material. No advertising is broadcast on Sundays, Christmas Day, or Good Friday. Radio New Zealand provides a 24-hour radio service each day from the National Programme and commercial stations, and the Concert Programme broadcasts 18 hours a day. The National Programme, a nationwide network originating from Wellington, places strong emphasis on in-depth coverage of news and current affairs as well as catering for listeners with special interests. The Concert Programme provides serious music, drama and discussions and, during the summer months, a comprehensive national “Sports Roundup”.

Short-wave service. The External Services Division of Radio New Zealand broadcasts the National Programme (including news and magazine programmes in Maori, Tongan, Samoan, Niuean and Cook Island Maori) to the South Pacific. One frequency beams the programme to Australia and Melanesian

countries, and another beams it to the South Pacific Islands. Radio New Zealand's Overseas Programme Unit supplements this with weekly dispatches of taped programmes; news, current affairs, talks and comment including vernacular programmes.

Local broadcasting. In many ways the most important part of the national system, local stations provide a wide range of entertainment and information programmes, and 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.

Private broadcasting stations. Four private non-commercial stations are now in operation. Eighteen private commercial stations hold warrants to broadcast. Five are located in Auckland and 5 broadcast on FM.

Television

Television New Zealand provides 2 national television networks in colour -TV1, originating programmes from Wellington, and TV2, from Auckland. Programmes are transmitted using the PAL 625-line system. TV1 is carried by 7 high-powered and 414 medium to low-powered transmitters and translators, TV2 by 7 high-powered and 170 medium to low-powered transmitters and translators. Twenty-two of the transmitting stations are connected by the BCNZ microwave distribution system which, with intermediate stations, comprises a total of 46. TV1 currently reaches 99.9 percent of the population, and TV2 98.7 percent.

Television programmes. The BCNZ programme objectives are to provide the kind of complementary programming which a unified 2-channel system can offer the public, provide scope for regional television, cater to minority and cultural audience interests and, in general, realise the social, cultural and educational, as well as the entertainment potential of television. To carry out these objectives, Television New Zealand presents 2 programme schedules, obtaining a consistent, 50/50 audience split over the 2 networks. Production studios are located in the 4 main centres, as are outside broadcast units, which are deployed for live coverage of sport, and programme production from towns and cities in both islands. Comprehensive film facilities are also installed in these centres, and electronic news gathering equipment is available. New Zealand productions accounted for 2621 hours of programme transmission in the 1984-85 year, which was 33.8 percent of total programme transmission over both channels. A further 175.5 hours of regional programmes were transmitted. This content included drama, news and current affairs, light entertainment, religion, service programmes, documentaries, children's programmes, and sport. The balance of programme output is purchased from overseas, mainly from Britain, the United States, and Australia. The use of satellite links permits same-day presentation of world news items, and live telecasts of significant overseas events, particularly in the field of sport.

New Zealand Symphony Orchestra

The New Zealand Symphony Orchestra is 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 89 players, which enables the orchestra to undertake the complete symphonic repertoire. As well as presenting nationwide concerts the orchestra has given many studio recordings for both radio and television and has toured overseas. It has also made several commercial recordings. There is also a small training orchestra of string players to develop promising students wishing to gain experience of the orchestral profession. The New Zealand Symphony Orchestra also organises an annual season by the National Youth Orchestra.

New Zealand Listener

Programmes and advance information for national television channels and radio stations are published in the weekly journal, the New Zealand Listener. The average net paid circulation of the Listener in 1985 was approximately 301 000. Its readership is estimated to be 1 million. As well as containing programme information the Listener occupies a special place in New Zealand journalism as a leading periodical dealing with current New Zealand activities. It publishes interviews, articles, and reprints of broadcasts as well as fiction, poetry, and criticism. Through its editorial and correspondence columns, the Listener provides a forum for serious public discussions on important issues.

11.4 Newspapers and magazines

New Zealand has a large number of daily newspapers for the size of the population. Although there has been a considerable decline from the era when the country had more than 50 daily newspapers, there are still 34 (including 2 which publish 5 days a week). Of these, 8 are morning newspapers and the rest evening papers. The largest, the New Zealand Herald, has an audited net circulation of more than 241 000. Only one other, the Auckland Star, has a circulation in excess of 100 000. Four have circulations below 3000, the smallest being the Hokitika Guardian with a circulation of about 1200. Of the daily newspapers now publishing, only one, The Dominion, was founded this century. The country's geography, with population centres widely scattered and transport by road and rail presenting difficulties, precluded the development of any national daily newspaper until recent times. Even today, climatic factors would make national distribution by air from a single publishing centre hazardous. Only the use of modern processes such as facsimile transmission, enabling publication in more than one centre, would make a truly daily newspaper possible. To date, no publisher has attempted it, although Sunday newspapers and one weekly are now published simultaneously in the North and South Islands.

A feature of the newspaper publishing industry since the end of the second world war has been a series of mergers and take-overs which has led to concentration of the ownership of a number of papers in three major companies which have stock exchange listing. This contrasts with the pattern of ownership by members of a single family, or by a partnership, “which was previously predominant. New Zealand News Limited publishes 7 dailies, Independent News Limited 6, and Wilson and Horton Limited 5. Thus 18 of the country's 33 dailies are now published by 3 major groups. In circulation terms, the “big three” represent about 80 percent of the aggregate daily newspaper circulation in New Zealand of 1 055 000. Some independent publishers survive, including 2 stock exchange listed companies and the few remaining family businesses.

Another feature of newspaper publishing in recent decades has been the sturdy growth of suburban newspapers, most of them delivered free to all households in their recognised circulation areas. The majority are weeklies; a few are bi-weekly or tri-weekly. Some are owned by the three big groups or by other daily newspaper publishers. Others are owned by individuals or small companies. The New Zealand Community Newspapers Association, to which most of these suburban “give-aways” belong, has 66 members.

There are 7 daily newspapers in the 4 main metropolitan areas, with a total circulation of approximately 722 400. In the smaller cities and provincial towns there are 25 daily newspapers, and 2 published 5 days a week. New Zealand also has about 116 other newspapers, of which 99 publish 1 to 3 times a week.

There are 590 magazines, journals, and newsletters that accept advertising published in New Zealand. Of these, 93 specialise in agriculture, dairy products, farming, horticulture, fishing and forestry; 52 specialise in banking, finance, economics, commerce, data processing, local government, law, office equipment, and insurance; 44 specialise in architecture, building, construction, engineering, environment, real estate and transport; 37 specialise in medicine, dentistry, and health; 27 specialise in industry, manufacturing, refrigeration, printing, publishing, packaging, fuel and energy; and 41 are consumer oriented or of general interest. (Source of these 2 paragraphs: Media Planner 1984—85).

Table 11.4. ADVERTISING REVENUE OF NEWSPAPERS AND PERIODICALS

Type of Publication1976-771978-791981-821983-84

Source: Press Council.

 $(thousand)
Newspapers, daily69,87687,074152,306176,779
Newspapers, other than daily8,05610,36721,32318,184
Magazines, journals, and periodicals2,7844,4466,89712,018

11.5 Sport and recreation

New Zealand provides a wide choice of recreation and sporting activities in a relatively small area. Many competitive recreational activities are organised through local clubs, some of which are affiliated to national organisations. Promising players, performers, and artists have opportunities to reach national levels in their activities. In many sports the ultimate level to be reached is to represent New Zealand at the Olympic and Commonwealth Games. Opportunities and facilities exist for those interested in outdoor education and recreation. The Youth Hostels Association of New Zealand operates hostels in centres ranging from Kaitaia in the north to Invercargill in the south. In the more remote areas the New Zealand Forest Service and several tramping clubs have built huts. Short courses in outdoor recreation are run by the Outward Bound School in Queen Charlotte Sound, and the Outdoor Pursuits Centre near Turangi. Educational authorities and some voluntary organisations have established outdoor recreation and education camps throughout the country where young people are encouraged to enjoy and make use of the natural environment. Social education programmes have been introduced into many secondary schools and this has involved the introduction of a wider range of recreational activities, with encouragement to students to continue with these activities after leaving school. Most of the tertiary education institutions have facilities and staff available to serve the physical recreation needs of the students.

The major Government agencies promoting the development of opportunities for recreation and sport are the Ministry and the New Zealand Council for Recreation and Sport. In 1985 the Government initiated a review of the recreation and sport programme. This review is likely to result in some changes to the government agencies delivering the programme and to the allocation of funding. During 1984-85 the sum of $5,372 million was provided through the Ministry of Recreation and Sport to support community recreation. An additional $5.1 million was made available by the New Zealand Lottery Board for this purpose. During 1985-86 Government moneys provided for the recreation and sport programme, $3,225,000 was distributed through local authorities to assist local activities, and $1,115,000 was allocated to national recreational organisations. The New Zealand Council for Recreation and Sport received $370,000.

Under the Local Authority Recreation Advisers Scheme $167,000 was provided for subsidy assistance to employ and train local recreation advisers. Four new positions were approved and a total of 11 positions are currently being assisted. A total of $250,000 was distributed to national youth organisations by way of capitation and physical welfare grants. Under the Sport and Cultural Ambassadors Scheme $200,000 was provided for distribution and a further $146,000 was provided to assist special recreation and sport projects.

The New Zealand Mountain Safety Council and the New Zealand Water Safety Council, which are also serviced through the Ministry of Recreation and Sport, received allocations from lottery profits of $252 000 and $620,000 respectively in 1984-85. These councils work closely with local mountain and water safety committees in promoting the safe use of New Zealand's mountain, bush, and water areas.

Youth assistance. The Department of Internal Affairs administers programmes which are designed to assist young people in practical ways. During 1984-85 community organisations and local authorities were provided with grants amounting to $472,000 to employ and train youth workers under the Detached Youth Worker Funding Scheme. These youth workers generally work with young people whose basic needs are not adequately met by existing services. Administered by the New Zealand Lottery Board, the Youth Services Distribution Committee makes money available to youth organisations and other groups of young people. During 1984-85 the committee was allocated $750,000, 50 percent of which was distributed as salaries for youth workers. The committee also received a further $309,000 for special International Youth Year projects in 1985.

New Zealand is party with other Commonwealth nations in the Commonwealth Youth Programme. Established in 1973 the Commonwealth Youth Programme is a six-point plan of practical action: operating regional youth development centres, administering youth bursaries and study fellowships, investigating applied research, developing youth information services, assisting local youth projects, and supporting youth programmes. In New Zealand the Commonwealth Youth Programme is administered by a National Liaison Committee serviced by the Department of Internal Affairs. The National Liaison Committee is composed of representatives from the Department of Internal Affairs, the Ministry of Foreign Affairs, the Department of Education, the Department of Maori Affairs, and the National Youth Council.

Racing, gaming and lotteries

Horse racing is a popular sport and is a source of interest and excitement to the punter; of income to the racing clubs; and of taxation to the government. Private bookmaking is illegal. On-course betting is by totalisator and off-course betting through the Totalisator Agency Board (TAB), which has branches in every centre. Greyhound racing is growing in popularity and the Racing Amendment Act 1980 extended off-course betting through the TAB to greyhound meetings.

Table 11.5. HORSE RACING

ItemYear Ended 31 July
GallopingTrotting
198319841985198319841985

Source: Department of Internal Affairs.

Racing daysNo.325326325200196196
RacesNo.3,1553,1593,1611,99319581958
Stakes$(000)13,08314,24215,8247,6107,7508,595
    Average per race 4,1464,5085,0063,8183,9584,390
Totalisator turnover—$(million)
On Course..103.5114.2112.766.466.168.8
With TAB..346.7388.3415.8152.5158.3165.1
 ..450 2502.5528.5218.9224.4233.9
Amount paid in dividends..359.5401.1418.3174.8179.1185.1

Table 11.6. GREYHOUND RACING STATISTICS

ItemYear Ended 31 July
198319841985
Source: Department of Internal Affairs.
Number of racing days808080
Number of races789797795
 $(thousand)
Amount of stakes180141157
Totalisator turnover—
    Win and place2,6052,1362,897
    Other1,7862,7883,488
               Total4,3914,9246,385
Amounts paid in dividends3,5093,9213,381
Government taxes—
    Totalisator duty304329374
Amount of totalisator turnover retained by clubs360431450
Unpaid fractions212313

Gaming and lotteries. Lotteries and raffles are popular both with participants and as a means of fund-raising for sports bodies and other organisations. Financial results of the New Zealand lotteries, the net profits of which are distributed for purposes beneficial to the community, are shown below. Housie remains the most popular of the licensed games of chance. From time to time the idea of establishing gambling casinos in New Zealand has been advanced. The long-standing Government policy of not permitting casino gambling has been reviewed twice in recent years but on each occasion has been reaffirmed.

The Gaming and Lotteries Act 1977 discarded many of the former restrictions. The basic principle that gambling may not be conducted for private gain was retained, but for minor forms of gambling it is not necessary to obtain licences or permits provided conditions laid down in the Act are met. Provision has also been made for the authorisation of additional forms of gambling if the public demand for them becomes sufficient. Some prohibitions are considered necessary in the public interest. Where large numbers of participants and substantial amounts of money could be involved, licences continue to be required. The 1977 Act identifies, and provides for the control of, 4 forms of gambling: games of chance (such as housie); bookmaking and betting (other than betting on horse racing and greyhound racing); prize competitions (such as football pools); and lotteries (previously called raffles). Horse and greyhound racing is controlled through the Racing Act 1971.

During the year ended 31 March 1985 a total of 59 Golden Kiwi Jackpot Lotteries, 13 Golden Kiwi 5 + 5 Lotteries, and 5 $20 Lotteries were drawn. The net profits from the lotteries are distributed for charitable, philanthropic, or cultural purposes, or for other purposes beneficial to the community. The New Zealand Lottery Board has the responsibility of apportioning profits of lotteries to various distributing authorities which consider applications for assistance and make grants.

Table 11.7. NEW ZEALAND LOTTERIES

Item1982-831983-841984-85

Source: Department of Internal Affairs.

Number of lotteries718780
 $(thousand)
Gross sales69,99496,496100,748
Commission on sales5,5047,2947,458
Expenses3,4924,2754,269
Prizes41,61957,67060,618
Lottery duty6,9999,64910,074
Direct profit12,44317,60818,329

Table 11.8. ALLOCATION OF LOTTERY PROFITS

Recipient1983-841984-851985-86

Source: Department of Internal Affairs.

 $(thousand)
Welfare of Aged Persons Distribution Committee800825825
Welfare Services Distribution Committee2,1002,5152,415
Youth Services Distribution Committee7501,050850
Medical Research Distribution Committee4501,700500
Scientific Research Distribution Committee300450400
General Purposes Distribution Committee7,04510,2159,899
Queen Elizabeth the Second Arts Council2,6863,2503,500
Minister of Internal Affairs (S. 93)5509431,178
New Zealand Film Commission550950750
               Total15,23121,89820,317

Individual sporting activities

Fishing. A wide variety of salt-water fish abound around the coasts, in bays and harbours, and in both North and South Islands many streams, rivers, and lakes provide excellent rainbow and brown trout fishing.

Sizes of trout vary from district to district depending on environment, climate, food available, and angling pressure. Average trout weights are as follows:

North Island—rainbow 1 kg and brown 2¼ kg in the Rotorua lakes, rainbow 2¼ kg and brown 2 kg in Lake Taupo, rainbow and brown 1 kg in river systems;

South Island—rainbow and brown 1-1½ kg in lake systems, sea-run brown 2¼ kg in West Coast rivers, sea-run “Quinnat” salmon 5½ kg in the east coast rivers, land-locked salmon 1-1¼ kg.

Big-game fishing. The warm waters off the east coast of the North Island provide some of the best surf, line, and scuba fishing in the world. The main bases for line fishing from charter boats are at Whangaroa, Bay of Islands (Russell, Otehei Bay, and Waitangi), Tutukaka, Mercury Bay (Whitianga), and Tuaranga (Mayor Island).

The most prized catches are broadbill, black marlin, striped marlin and blue marlin, while other types of big-game fish found in New Zealand waters are mainly tiger shark, hammerhead shark, mako shark, thresher shark, kingfish (yellow tail), and tuna. The best catches are usually made in February but fishing is good from December to April.

Shooting and hunting. The principal game birds are duck, swan, pheasant, quail, geese, and chukor, but the sport is limited, the main season usually extending for about 6 weeks from early May.

There are fewer restrictions on stalking—no limit on the number of game animals that can be taken, no licence required, and the season is open all year round. However, commercial hunting operations have severely limited the numbers of some game animals (deer of several species, elk, chamois, and that) that once abounded in the forest and alpine regions. Wild pigs, goats, and wallaby are still numerous in several areas of the country. For tourists and inexperienced hunters, a guide is essential for the success of a hunting expedition.

Skiing. The skiing season in New Zealand extends from mid-July to late October in the North Island and from early July to late September in the South Island. With the operation of ski planes and helicopters in the Mount Cook region, very good spring skiing is available to experienced skiers in the alpine snowfields in and around the Mount Cook National Park.

In the North Island the main skiing centre is Mount Ruapehu in the Tongariro National Park. Equipment and instruction is available for skiers, and facilities include 4 chairlifts, 2 T bars, and many rope tows. A new ski field has been developed at Turoa on the southwest slopes of Mount Ruapehu and facilities include 3 chairlifts and 1 T bar. Mount Egmont is the North Island's other principal ski area.

In the South Island the principal areas are Coronet Peak (Queenstown), Mount Hutt, Tekapo, Lake Ohau, Porter Heights, Treble Cone (Wanaka), and the Mount Cook region (access by ski plane or helicopter). Coronet Peak, 19 km from Queenstown, has the best powder snow conditions in New Zealand, lying on extensive undulating slopes of varying gradients. Facilities at commercial ski fields are of a high standard and equipment and professional instruction is available at reasonable rates.

Mountaineering and tramping. The proximity of mountain and forest to the main centres of population encourages tramping in New Zealand. Both North and South Islands have appealing tramping routes and parties can set out to enjoy the beauty and challenge of lonely country.

In the Waitakere and Hunua Ranges near Auckland, the central ranges of the North Island, at Mount Egmont, Tongariro National Park, and the Urewera Area, and in the South Island's Fiordland and Golden Bay, there are numbers of tracks with high mountain traverses and passages through beautiful scenery.

Walking. Since the New Zealand Walkway Commission was established in 1976 considerable emphasis has been placed on the opening up and development of walking tracks in both urban and rural areas. While priority is given to walkways near urban centres, the commission is also developing long-distance routes including a 3-day hutted walk from Taranaki to the Wanganui River already open and proving very popular, an east-west walkway across the North Island, and long-distance routes in Nelson and Southland. The growing number of pleasant walks in urban and rural settings is designed to provide enjoyment for both the casual stroller and the more dedicated walker.

11.6 Tourism

New Zealand's natural assets have made it possible to build an international image as one of the world's most beautiful countries. The National Parks system and undeveloped areas, relatively unpolluted air and water, open spaces, and distinctive plants and animal life are becoming increasingly desirable to international visitors. The recent world-wide expansion of tourism, and changing visitor demands have, however, resulted in changes to what New Zealand offers as a destination. More travel-experienced visitors, coming from a wider range of countries have interests that now encompass skiing, tramping, walking, white-water rafting, and a variety of other activities. Visitors are more interested in getting off the beaten track, seeing how New Zealanders live and finding out more about the distinctive features of New Zealand. The rural landscape and farm-life, the towns and the pace of life, art and craft activity, and the multi-cultural mix all contribute to New Zealand's distinctive appeal. Emphasis is now placed on aspects of cultural and historical value, and there is interest in the development of the agricultural, pastoral, and horticultural industries.

International visitors. More than half a million overseas visitors arrive in New Zealand annually. Visitor arrival numbers grew by 15.2 percent in the year ended 31 March 1984, compared with 6.3 percent in the previous year. There has been a growing diversification of countries from which overseas visitors originate.

Table 11.9. NUMBERS OF INTERNATIONAL VISITORS

Year Ended 31 MarchHolidayStay with Friends and RelativesBusinessOther*Total

* Includes work or working holiday, formal education, stopover, and unspecified.

†Excludes through passengers (defined as passengers who do not stay ashore in New Zealand).

Source: Tourist and Publicity Department.

1981246,520102,44050,71463,782463,456
1982248,150108,98856,12859,315472,581
1983257,910114,75958,07456,915487,658
1984285,845116,79361,25054,553518,441
1985341,984127,58668,26959,156596,995

In the year ended 31 March 1985, very strong growth took place, continuing the trend which emerged in 1983-84. The Pacific region appears to have recovered from a downturn in tourism which saw international arrival growth into New Zealand fall to 2 percent in 1982. The New Zealand Tourism Council expects an average growth rate of at least 6.75 percent to be maintained through to the end of the 1980s.

Table 11.10. INTERNATIONAL VISITORS COUNTRY OF ORIGIN 1985*

RankMarketVisitors

* Year ended 31 March.

Source: Tourist and Publicity Department.

1.Australia265,579
2.U.S.A.102,672
3.Japan47,060
4.England29,710
5.Canada23,816
6.Germany, Fed. Rep. of10,135
7.United Kingdom (not otherwise specified)7,652
8.Singapore7,632
9.Netherlands5,493
10.Fiji5,453
11.Switzerland4,768
12.Western Samoa4,272
13.Hong Kong3,976
14.Papua New Guinea3,713
15.Taiwan3,372
16.Tonga3,344
17.New Caledonia3,256
18.Tahiti (French Polynesia)2,984
19.Malaysia2,712
20.Sweden2,712
21.Scotland2,468
22.France2,220
23.Cook Islands2,108
24.South Africa1,864
25.Indonesia1,824

Domestic travel. During 1983-84, New Zealanders generated 14.629 million trips away from home which included at least one night away, and spent 59.729 million person nights away. New Zealanders regard holidays as part of their lifestyle. Relaxation, socialising, new experiences, nostalgia, visiting friends and relatives and participation in sports and other special events are all reasons for a holiday, and New Zealanders often travel for a combination of these reasons.

Table 11.11. DOMESTIC TRAVEL DESTINATIONS 1984*

RankMarketProportionVisitors

* Year ended 31 March.

Source: Tourist and Publicity Department.

  PercentNo.
1.Auckland192 755 000
2.Bay of Plenty121 786 000
3.Waikato101 465 000
4.Northland91 353 000
5.Canterbury81 156 000
6.Wellington71 050 000
7.Hawkes Bay6805,000
8.Thames Valley5755,000
9.Manawatu5708,000
10.Tongariro5701,000
11.Wanganui4605,000
12.Coastal/North Otago4584,000
13.Taranaki4582,000
14.Aorangi (South Canterbury)4579,000
15.Clutha/Central Otago4574,000
16.Nelson Bays4528,000
17.Southland3508,000
18.Marlborough3437,000
19.East Cape3402,000
20.West Coast3397,000
21.Wairarapa2266,000
22.Horowhenua1194,000

Economic impact. Tourism has a beneficial direct and indirect impact on the economy. International visitors, in particular, make the industry a relatively high user of labour, a high earner of foreign exchange and a relatively low user of imports. Tourism is also relatively capital intensive. Domestic visitors account for about half the expenditure on tourism, and nearly all this is spent on transport and accommodation. The combined value of domestic and international tourism is estimated at $1,750 million for the year ended 31 March 1985. The present level of tourism employment amounts to 90 000 jobs in the total economy.

Table 11.12. OVERSEAS CURRENCY RECEIPTS FROM TOURISM*

Year Ended 31 MarchAustraliaUnited StatesCanadaUnited KingdomJapanOtherTotal

* Recorded by origin of currency, not visitor.

Source: Reserve Bank of New Zealand.

NZ$(million)
1981119.061.54.730.94.618.4239.1
1982145.176.96.337.38.724.2298.5
1983135.191.88.729.812.526.2304.2
1984164.9120.514.835.217.031.9384.3
1985237.8199.324.058.126.750.7596.6

Social and cultural impact. The social consequences of tourism are largely beneficial, creating employment and stimulating a diversity of activities and facilities. The nature of New Zealand tourism encourages wide-ranging contact between residents and visitors, and this contact contributes to the current high acceptance of tourism by New Zealanders.

Environmental impact. The largely unspoiled and unpolluted environment is a major attraction for visitors, and protection and wise management of resources ensures that tourism has a positive impact. Tourism increasingly provides an alternative economic justification for protection of the environment.

Transport. In order of use, bus/coach (57 percent), private (41 percent), and rental (33 percent) vehicles are the three most favoured means of internal transport for international visitors. Holiday visitors favour coach travel (46 percent) or rental cars (24 percent). Those visiting friends and relatives make much greater use of private cars (60 percent) compared to holiday visitors (6 percent). Business travellers prefer air transport (21 percent) and rental cars (21 percent). A small but significant proportion of holiday visitors use camper vans (5 percent) and aircraft (5 percent) as their main transport type. Most visitors use several modes of transport.

Public transport is now highly developed within New Zealand, with scheduled air services to most areas and an extensive network of coach operations. Limited rail transport, passenger, and vehicular ferry services are also available. However, there is a trend for visitors to choose forms of transport offering greater flexibility, such as camper vans. In 1982, regulations were amended to increase the maximum weight limitation on standard driving licences to 3500 kgs for overseas visitors. As a consequence, camper van operators were able to increase vehicle sizes and provide greater safety and comfort for camper van users. Rental cars are used at some stage by 33 percent of all visitors to New Zealand. Several major rental car firms operate in New Zealand and the number has been increasing. The average size of rental cars has decreased in recent years.

Japanese travellers' use of transport varies considerably from other markets. The more structured style of holiday preferred is seen in the high use of air transport and coaches and low rental car use. German holiday visitors' liking for outdoor activities is reflected in their high use of camper vans (13 percent) and hitchhiking (34.5 percent). American holiday visitors make greater use of aircraft (53 percent) and coaches (70 percent) during their visits. Domestic travellers and international visitors staying in private homes usually choose private transport. The Cook Strait appears to be a major physical and psychological barrier to North and South Islanders who mainly holiday within their own islands.

Accommodation. Commercial accommodation has undergone several distinct stages of development resulting in today's wide variety of facilities. It includes private hotels, guest houses, tavern/hotels, tourist flats, motels, camping grounds, motor lodges, international standard hotels, cabins, chalets, skiing, hunting and fishing lodges, and farm/home-hosting. Accommodation patterns vary greatly between regions, depending on local population, terrain and climate.

International visitors make up 41 percent of hotel guests and 17 percent of motel guests. New Zealand business travellers are the major domestic users of hotel accommodation of those surveyed (86 percent). Resort hotels attract a high proportion of overseas visitors. The trend is towards visitors using several types of accommodation, with substantial increases in the use of camping, hotel and home-hosting facilities. The main forms of accommodation used by international visitors are licensed hotel (27.5 percent), friends/relatives (25.5 percent), motel (25.0 percent), and camping ground (7.0 percent). International visitors here to visit friends and relatives do not use much commercial accommodation, 87 percent stay mainly in private homes.

Most forms of commercial accommodation, especially in smaller centres, are subject to very seasonal occupancy rates. Queenstown commercial accommodation occupancy rates varied from below 20 percent in June to 86 percent in March (1983-84). Fiordland, West Coast, and Bay of Islands (30 percent June; 85 percent March) show similar fluctuations. Overall occupancy rates for hotels and motels in New Zealand have been low by international standards, but increased considerably in a number of regions between 1983 and 1984. Other forms of accommodation such as home-hosting, camper vans and hostels are attracting a larger proportion of visitors and there is an ample supply of medium and lower range hotel and motel accommodation. Alternative forms are more actively promoted than in the past and the competition they provide has led to increased pressure on hotels and motels to form chains for marketing and forward reservations. Seasonal price variations are also becoming evident and the consumer is benefitting from the increased competition between and within the different forms of accommodation.

Table 11.13. ACCOMMODATION INVENTORY*

RegionsTourist Flats and CabinsFarm Home/Host Beds and BunksYouth Hostels and YMCA BedsHotel RoomsMotel UnitsBaches

* As at March 1985.

Source: Tourist and Publicity Department.

Northland1961921241,0041,1572,385
Auckland (incl. Gt. Barrier Is)1092653023,6581,6805,671
Waikato12264624416556959
Thames Valley19030362193663,737
Bay of Plenty3684851231,8741,5972,304
East Cape1134138465242263
Tongariro282302-6685781,879
Taranaki917342746375357
Hawke's Bay21817660671579693
Wanganui433840577286209
Horowhenua9318-1741511,873
Manawatu2291-305273742
Wairarapa5261-18084477
Wellington6159671,685538150
Nelson Bays1719652516335642
Marlborough162122604294131,218
West Coast14628101995358634
Canterbury2713601992,1489622,574
Aorangi198238731,178580982
Coastal/North Otago1521021589693321,637
Clutha/Central Otago3233291461,3943862,817
Southland14715899551267915
Chatham Islands-----9
               Total, New Zealand3 5303 9101 44420 82212 09533 127

Facilities for visitors. In recent years, there has been a marked trend toward more active, participatory holidays. Two elements contribute to this. Visitors want new experiences, and there is also a much greater diversity of things to do. The impetus for the development of new activities is provided by New Zealanders, both as domestic visitors and residents. As visitors now expect activities and amenities to complement New Zealand's scenic attractions, and are also looking for an insight into another culture and lifestyles, attractions and facilities developed primarily for the local or national community are increasingly used by visitors.

Community facilities include the following: community centres (including meeting venues, hobby facilities and recreation areas); theatres, art galleries (including associated theatre companies, amateur dramatic groups); choirs, national, regional, and local orchestras, and dance companies; collectives (such as the Arts Centre in Christchurch); libraries, display centres for items/news of local interest; radio and television stations; movie theatres; churches and events organised by church groups; local parks and gardens; playgrounds, reserves, zoos; botanical gardens; racecourses (and associated refreshment and entertainment facilities); sports facilities including golf courses, public swimming pools, bowling alleys, sportsfields, and major sports stadiums such as Queen Elizabeth II Park and Mt Smart Stadium; shopping centres; university and other open educational institutions; youth, sports, cultural or hobby grounds and their facilities; organised sport; and maraes. A second category is dual purpose facilities, either consciously developed for use by residents and visitors, or developed into tourism attractions and includes the following: historic buildings and sites (including memorials, pa and battle sites, and famous buildings such as the Waitangi Treaty House); coffee shops, restaurants, bars, cabarets and nightclubs in non-resort areas; wildlife parks (such as Orana Park and the Lion Safari Park); reserves (such as the gannet sanctuary at Cape Kidnappers); recreation parks (such as Fantasyland in Hastings, Rainbows End at Auckland), and small complexes with minigolf and bumper boats; local recreational facilities (such as canoeing on the River Avon, waterslides); horseriding, walkways and tracks (within urban green belts and in National and Forest Parks and reserves); museums (regional, historical or theme); certain churches (in particular those of architectural or historical significance such as Old St Pauls, Wellington, First Church. Dunedin, St Pauls Memorial Church, Putiki); scenic drives in urban areas (marked for the benefit of residents and visitors); lookout towers or peaks (maintained by the local community); skifields and facilities; tramping huts and shelters; local industries which open to the public (but for which tourism is a sideline—often not charged for); airports, railway and bus stations, and marinas; local festivals and competitions (such as Golden Shears (Masterton), Cherry Blossom Festival (Alexandra), Round the Bays Run (Auckland); casual buskers, street dancers, actors and other performers.

Some facilities have been developed specifically for tourism (whether international or domestic) including the following: souvenir shops; guided tours and sightseeing trips by all means of transport (including coach, taxi, jetboat, raft, plane); agricultural demonstrations (such as the Rotorua Agrodome and Queenstown Cattledrome); large-scale heritage and theme parks with entrance fees, such as MOTAT (Auckland), Shantytown (Greymouth), Ferrymead (Christchurch) and often a high degree of community involvement; duty free shopping facilities; rides (such as Shotover River jet, helicopter flights, glacier excursions, steamer cruises, river rafting); guided hunting, fishing and tramping excursions; activities such as gold panning (Shantytown), 3D Maze (Wanaka); carving, glassblowing, greenstone jewellery demonstrations; hiring of gear for all types of outdoor recreation (including yacht charters, ski hire, fishing and hunting equipment, camping gear, horses, bikes, hang-gliding); information centres (especially in National Parks or resorts areas): guided walks (such as the Milford, Heaphy, and Routeburn walks).

Assistance to tourism. Since 1978 the Development Finance Corporation has been a major source of loans and guarantees to encourage the building of new accommodation and facilities of an acceptable modern standard and the extension of existing hotels and motels where there is a significant shortage of accommodation. There are special depreciation allowances for taxation purposes which apply to approved accommodation projects. The development of New Zealand tourism is encouraged by the Export Marketing Development Incentive, which provides a 67.5 percent tax rebate for certain types of expenditure incurred in promoting New Zealand tourism internationally, and by the Export Performance Incentive and the Export Promotion Grants Scheme, which provide tax rebates or grants to approved projects. These are, however, gradually being phased out. Regionally based tourism development and marketing is assisted by the Regional Promotional Assistance Scheme.

Tourist and Publicity Department. The Tourist and Publicity Department is responsible for the coordinated promotion of New Zealand overseas as a tourism destination, and encourages and stimulates domestic tourism. A comprehensive travel service, and information and advisory services for the tourism industry are provided. Domestic offices are located at Auckland, Rotorua, Wellington, Christchurch, Dunedin, and Queenstown. International offices are located at Sydney, Melbourne, Brisbane, Perth, Singapore, Tokyo, Frankfurt, London, New York, Los Angeles, San Francisco and Vancouver. Through the National Publicity Studios and National Film Unit, the department also supplies general New Zealand publicity material, publications, films, photographs and displays for use within New Zealand and overseas to create a background knowledge of New Zealand.

New Zealand Tourism Council. Established in 1982, the council is a 12-member advisory body to the Government. It has an independent chairman, with members drawn largely from the private tourism sector. A permanent subcommittee of the council, the Tourism Marketing Group, widens industry involvement in the review of marketing policies and initiatives. The secretariat is provided by the Tourist and Publicity Department.

Tourist Industry Federation. Established in 1984, the Tourist Industry Federation represents a wide range of national associations, industry members, and regional groups connected with the tourism industry. It serves as the united voice of the New Zealand tourism industry.

Further information

Arts and cultural activities

Information on literature awards and grants can be obtained from the New Zealand Literary Fund c/- Department of Internal Affairs, Private Bag, Wellington. Further information on the arts can be found in the following official publications.

Report of the Board of Trustees, National Art Gallery, National Museum, and National War Memorial (Parl. paper G. 12).

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

Report of the New Zealand Film Commission (Parl. paper G. 19).

Report of the New Zealand Historic Places Trust (Parl. paper G. 10).

Report of the New Zealand Lottery Board (Parl. paper G. 7B).

Report of the Queen Elizabeth the Second Arts Council of New Zealand (Parl. paper G. 11).

Libraries

Further information on libraries will be found in the following publications. The select bibliography of New Zealand books, at the end of this Yearbook, may also be found informative. Census of Libraries 1979—Department of Statistics.

Report of the Trustees of the National Library of New Zealand (Parl. paper G. 13).

Radio and television

Report of the Broadcasting Corporation of New Zealand (Parl. paper F. 3).

Report of the Broadcasting Tribunal (Parl. paper F. 4).

Recreation and sport

New Zealand Recreation Survey—N.Z. Council for Recreation and Sport (1977).

Outdoor-recreation Planning: Marlborough Pilot Study—Department of Lands and Survey.

Outdoor Recreation Planning Symposium Proceedings—N.Z. Council for Recreation and Sport (1978).

Recreation Studies in New Zealand: A Bibliography—Ministry of Recreation and Sport (1977).

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

Report of the Department of Lands and Survey (Parl. paper C. 1).

Report of the Director-General of Forests (Parl. paper C. 3).

Report of the New Zealand Council for Recreation and Sport (Parl. paper E. 20).

Report of the New Zealand Lottery Board (Parl. paper G. 7B).

Report of the Queen Elizabeth the Second National Trust (Parl. paper C. 2).

Social Trends—Department of Statistics.

The N.Z. Council for Recreation and Sport has been associated with a number of publications mainly offering guidance on club administration, etc., and also produces three regular newsletters.

Tourism

New Zealand Tourism: Issues and Policies (March 1984)—New Zealand Tourism Council/Tourist and Publicity Department.

Tourist and Publicity Department Annual Report (Parl. paper G. 25).

Tourist and Publicity Department 'Red Series'.

Tourist Hotel Corporation Annual Report (Parl. paper G. 24).

A full list of research and other publications is available from the Tourist and Publicity Department, Private Bag, Wellington.

Chapter 12. 12 Occupations and incomes

12.1 Employment

Labour force

Important factors affecting the size of the labour force in proportion to population include the age structure of the population, the usual age of completion of full-time education, the percentage of married women engaged in full-time paid employment, and net migration flow. To some extent, the fluctuations in the growth of the labour force follow those in the number of births some 15 to 20 years earlier.

Table 12.1. GROWTH OF LABOUR FORCE

As at AprilMalesFemalesTotalLabour Force as a Percentage of Total Population
NumberAnnual IncreaseNumberAnnual IncreaseNumberAnnual Increase

* Labour force estimates now refer to February because of the change from a half-yearly to a quarterly employment survey.

Source: Department of Labour.

 (000)Percent(000)Percent(000)PercentPercent
1975843.21.5385.23.11 228.42.039.6
1976844.10.1393.82.21 237.90.839.4
1977847.60.4404.52.71 252.11.139.7
1973856.61.1409.61.31 266.21.140.1
1979855.60.1427.24.31 282.81.340.6
1980*864.21.0439.12.81 303.31.641.2
1981*870.90.8450.72.61 321.61.441.7
1982*879.61.0460.52.21 340.11.442.0
1983*883.50.4471.22.31 354.71.141.9
1984*888.60.5482.52.31 371.11.242.0

Table 12.2 shows the full-time labour force by age group as recorded at the two most recent Censuses of Population and Dwellings. A new departure at the 1981 Census was that overseas visitors who were in New Zealand on census night but who had not worked while in this country (and did not intend to) were asked to complete only the first 12 questions on the Personal Questionnaire. Consequently, statistics on the labour force, education, marital status, and a number of other subjects, relate only to New Zealand residents. A limited selection of tables from the 1976 Census (including the following) were processed on the same basis for purposes of comparison.

Table 12.2. POPULATION CENSUS: LABOUR FORCE BY AGE AND SEX

Age Group (Years)1976 Census1981 Census*
MalesFemalesMalesFemales
NumberPercent of Male Labour ForceNumberPercent of Female Labour ForceNumberPercent of Male Labour ForceNumberPercent of Female Labour Force

* Final data on employment from the 1981 Census have been subject to a process of random rounding. All cell values including totals have been rounded using simple random rounding, to base three. Individual figures therefore, will not necessarily sum to give the stated totals.

15-1985,78610.074,70018.588,79110.174,13916.3
20-24118,48413.874,07018.4125,07914.384,22818.5
25-29121,09814.243,95710.9114,54013.150,71511.1
30-3498,19311.534,7438.6115,95013.247,35810.4
35-3987,54010.238,6199.693,64510.746,97410.3
40-4475,3518.936,0288.983,0169.546,07710.1
45-4981,3219.536,3849.072,7268.338,3258.4
50-5474,0568.731,1987.775,3518.633,2437.3
55-5959,4896.920,1965.065,0347.423,1485.1
60 and over53,9016.313,4883.342,4714.811,5292.5
               Total labour force855 719100.0403 383100.0876 606100.0455 736100.0
Percentage of labour force68.0...32.0...65.8...34.2...

Table 12.3. OCCUPATIONS OF PERMANENT AND LONG-TERM MIGRANTS YEAR ENDED 31 MARCH 1985

OccupationPermanent and Long-term Migrants
ArrivalsDeparturesNet Gain or Loss

* Protective service workers include fire fighters, policemen, detectives, security officers, night watchmen, etc.

Professional, technical, and related workers
    Architects, engineers, and related technicians8861,018-132
    Medical, dental, veterinary, and related workers1,7102,497-787
    Teachers1,343132221
    Accountants339477-138
    Workers in religion30824464
    Other1,8672,602-735
               Total6 4538 160-1707
Administrative and managerial workers
    Managers7871,100-313
    Other63603
               Total8501160-310
Clerical and related workers
    Stenographers, typists, and card and tape punching machine operators8561116-260
    Computing machine operators199358-159
    Other1,6083,528-1 920
               Total2 6635 002-2 339
Sales workers
    Salespeople, shop assistants, and related workers4691,060-591
    Other532901-369
               Total1 0011 961-960
Service workers
    Cooks, waiters and waitresses, bartenders, and related workers5851,046-461
    Protective service workers*245288-43
    Other6521,093-441
               Total1 4822 427-945
Agricultural, animal husbandry and forestry workers, fishermen, and hunters
    Farmers43339340
    Agricultural and animal husbandry workers278689-411
    Other152221-69
               Total8631 303-440
Production and related workers, transport equipment operators, and labourers
    Food and beverage processors208581-373
    Tailors, dressmakers, sewers, and related workers144297-153
    Machinery fitters, machine assemblers, and precision instrument makers (except electrical)8161,321-505
    Electrical fitters and related electrical and electronics workers321514-193
    Plumbers, welders, sheet-metal and structural metal preparers and erectors421529-108
    Printers and related workers150311-161
    Painters174304-130
    Bricklayers, carpenters, and other construction workers613977-364
    Material-handling and related equipment operators, dockers, and freight handlers213443-230
    Transport equipment operators391614-223
    Labourers, not elsewhere classified5301,128-598
    Other6861,191-505
               Total4 6678 210-3 543
Occupations unidentifiable or inadequately described1 4651 41649
               Total, actively engaged19 44429 639-10 195
Not actively engaged16 79914 6882 111
               Total arrivals and departures36 24344 327-8 084

Maori labour force. The resident Maori full-time labour force grew by 14 497 (16.2 percent) between 1976 and 1981 to reach 104 181 (7.8 percent of the total full-time resident labour force who specified their ethnic origin) at the 1981 Census. Intercensal growth for the non-Maori labour force was due mainly to growth in the female workforce. In contrast the increase in the male workforce for the Maori labour force was greater than for the female workforce.

Table 12.4. POPULATION CENSUS: MAORI LABOUR FORCE

Full-time Labour Force*19761981Intercensal Change
NumberPercent

* N.Z. residents.

†Includes cases where ethnic origin was not specified.

 Maori
Male61,54569,8528,30713.5
Female28,13934,3296,19022.0
               Total89 684104 18114 49716.2
 Non-Maori
Male794,174806,75412,5801.6
Female375,244421,40746,16312.3
               Total1 169 4181 228 16158 7435.0

The number of wage and salary earners in the Maori labour force increased by 7.6 percent between 1976 and 1981. However, the proportion of wage and salary earners within the Maori labour force dropped from 88.7 percent in 1976 to 82.1 percent in 1981, largely because of an increase in the number of unemployed.

At the 1981 Census the unemployed represented 14.1 percent of the Maori labour force compared with 3.7 percent of the non-Maori labour force. Maoris, in fact, made up nearly a quarter (24.2 percent) of the total unemployed. Almost half (49 percent) of the unemployed Maori population were aged between 15 and 19 years, while a further 21.6 percent were aged 20-24 years.

Table 12.5 shows Maori labour force by employment status at the 1976 and 1981 Censuses. The most dramatic feature of the table is the increase of 8668 (146.3 percent) in the number of Maoris unemployed and seeking work. In comparison non-Maori unemployed increased by 19 606 to 45 660 (132.9 percent).

Table 12.5. POPULATION CENSUS: MAORI LABOUR FORCE BY EMPLOYMENT STATUS

Employment Status19761981
NumberPercentNumberPercent

* Includes persons seeking work.

Employer1,7091.91,5721.5
Self employed2,3012.62,1812.1
Wage and salary earner79,24788.785,24882.1
Relative assisting2070.22220.2
Unemployed*5,9246.614,59214.1
Not specified296..369..
         Total89 684100.0104 181100.0

Main occupational groups. The main occupational groups of Maoris differ from those of the total New Zealand labour force. Maoris are more predominant amongst the unemployed and semi- and unskilled occupations, than among the professional and skilled white collar occupations. The principal occupational groups for Maori males were labourers (12.2 percent of the Maori male labour force), food and beverage processors (11.3 percent), and transport equipment operators (8.6 percent). Farmers, machinery fitters/assemblers, and managers were the principal occupational groups for males in the total labour force.

The main occupational groups for Maori females in the full time labour force were tailors, dressmakers and sewing machine operators (6.8 percent), clerical workers (6.3 percent), and agricultural and animal husbandry workers (6.2 percent). This compares with clerical workers, salespersons/shop assistants and stenographers/typists/punch machinists for females in the total labour force.

Table 12.6. POPULATION CENSUS: MAORI LABOUR FORCE BY MAIN OCCUPATIONAL GROUPS

RankingOccupation*Number EngagedPercentage of Maori Labour ForcePercentage of Maoris in Total Labour Force
19761981

* Predominant occupational groups at each Census.

†N.Z. residents, 1981 Census.

  Males   
21Labourers8,51712.222.2
12Food and beverage processors7,89911.319.8
33Transport equipment operators6,0368.616.0
54Agricultural and animal husbandry workers4,8997.012.5
  Material handlers and related equipment—   
45    Operators, dockers, and freight handlers4,5606.513.2
96Forestry workers2,8954.131.1
77Wood preparation workers and paper makers2,6133.727.7
68Bricklayers, carpenters, and other construction workers2,4873.66.1
89Machinery fitters, machine assemblers, and precision-instrument makers2,2023.24.3
1210Protective service workers1,8872.78.4
                 Total full-time labour force69 852100.08.0
  Females   
11Tailors, dressmakers and sewers2,3316.812.3
22Clerical and related workers2,1606.33.4
63Agricultural and animal husbandry workers2,1216.213.4
44Labourers1,9235.623.0
35Cooks, waitresses, and bartenders1,8575.412.8
116Building caretakers and cleaners1,4554.219.3
57Housestaff and related housekeeping services1,4344.215,5
98Food and beverage processors1,3804.026.8
  Material handlers and related equipment—   
89    Operators, dockers, and freight handlers1,2693.716.7
710Salespersons, shop assistants and related workers1,1793.43.3
                 Total full-time labour force34 329100.07.5

Table 12.7. POPULATION CENSUS 1981: LABOUR FORCE BY AGE GROUP

Age (Years)Resident Full-Time Labour Force
Pacific Island PolynesianN.Z. MaoriEuropean* and Other

* Full-time labour force excluding Pacific Polynesians and New Zealand Maoris.

 Percent
15-1911.720.711.5
20-2418.219.415.3
25-4456.143.044.7
45-5913.015.424.1
60 and over1.11.54.4
         Total100.0100.0100.0

Pacific Island labour force. The Pacific Island Polynesian full-time labour force of 35 019 represented 2.6 percent of the New Zealand resident labour force in 1981. The intercensal increase in the Polynesian labour force, of 44.8 percent (10 830), was proportionately greater than that for either the Maori labour force (16.2 percent) increase intercensally, or the labour force excluding Maoris and Polynesians (4.2 percent).

The full-time labour force represented 39.4 percent of the resident Pacific Island Polynesian population. Over half (56.1 percent) of the labour force were aged between 25 and 44 years.

Table 12.7 shows that in contrast to the New Zealand Maori labour force (40.0 percent were under the age of 25), only 29.9 percent of the Pacific Island Polynesian labour force were under 25.

The numbers in the Pacific Island Polynesian labour force who were unemployed increased by 2575 (246.9 percent) between 1976 and 1981 to reach 3618 or 10.4 percent of the Pacific Island Polynesian full-time labour force in 1981, compared with 4.3 percent in 1976. Largely as a result, the proportion of wage and salary earners dropped from 94.0 percent in 1976, to 87.8 percent of the Pacific Island Polynesian full-time labour force in 1981. However, Table 12.3 shows that the proportion of wage and salary earners in the Pacific Island Polynesian labour force (87.8 percent) remains higher than that for the New Zealand Maori labour force (82.1 percent) or for the remainder of the labour force (81.9 percent).

Table 12.8. POPULATION CENSUS: PACIFIC ISLAND LABOUR FORCE BY OCCUPATION STATUS

Employment StatusResident Full-time Labour Force
Pacific Island PolynesianN.Z. Maori 1981 PercentEuropean* and Other 1981 Percent
1976 Percent1981
NumberPercent

* Full-time labour force excluding Polynesians and Maoris.

Employer0.83451.01.56.4
Self-employed0.82460.72.17.6
Wage and salary earner94.030,54687.882.181.9
Relative assisting..180.10.20.5
Unemployed4.33,61810.414.13.5
Not specified..246......
      Total100.035 019100.0100.0100.0

The main industry for the Pacific Island Polynesian labour force was manufacturing which employed 18 285 workers, over half (58.2 percent) of the Pacific Island Polynesian full-time labour force in specified industries at the 1981 Census of Population and Dwellings.

However, the proportion in the manufacturing industry has dropped since 1976, with resulting increases in the proportions in some other industry groups—in particular, “wholesale, retail and restaurant”, “finance, insurance and business” and “community, social and personal services”. The high degree of urbanisation of the Pacific Island Polynesian population is reflected in the low proportion of workers in agriculture and related industries.

Table 12.9. POPULATION CENSUS: LABOUR FORCE BY INDUSTRIAL GROUP

Industry Major GroupResident Full-time Labour Force
Pacific Island PolynesianN.Z. Maori 1981 PercentEuropean* and Other 1981 Percent
1976 Percent1981
NumberPercent

* Labour force excluding Polynesians and Maoris.

Industry Major GroupPercentNumberPercentPercentPercent
Agriculture, hunting, forestry, fishing1.35881.913.111.3
Mining and quarrying0.1390.10.70.3
Manufacturing61.418,28558.235.222.4
Electricity, gas, water0.62130.71.61.2
Building and construction5.31,1823.88.66.6
Wholesale, retail and restaurant7.12,5178.09.017.9
Transport, storage, communication8.22,4607.810.58.2
Finance, insurance, business1.77232.31.87.7
Community, social, personal14.35,42417.319.524.4
Inadequately defined..3,594......
          Total100.035 025100.0100.0100.0

Employment structure

The growth of population has been accompanied by a changing emphasis in employment, in the nineteenth century the major activities of farming, mining, and lumbering gave rise to manufacturing industries and to commercial and professional occupations. In 1881, 11.2 percent of the total population was engaged in agriculture, 13.1 percent in industries, which included mining, and 6.6 percent in commercial and professional occupations. By 1901 the proportion in tertiary activities and farming had increased, that in secondary industries had remained constant, and mining had declined relatively in importance. The proportions were then 14.5 percent in farming, 130.1 percent in secondary industry, and 11 percent in services.

The more recent rapid development of larger urban centres has been associated with a trend away from primary into secondary industries, a trend which developed noticeably after the depression of the 1930s and which was given marked impetus by the Second World War. The broad changes in the economy as indicated at recent censuses are shown in Table 12.10. Decreases in the proportion engaged in primary production are typical of advanced economies, although it has to be noted that the farming community makes increasing use of the services sector in improving farm productivity.

Table 12.10. POPULATION CENSUS: EMPLOYMENT STRUCTURE

Production Group1971 Census1976 Census1981 Census
Persons EmployedPercentage of Labour ForcePersons EmployedPercentage of Labour ForcePersons EmployedPercentage of Labour Force
Primary production134,15912.1133,95910.8148,91411.6
Secondary industry388,07135.1433,19035.0411,99032.0
Services582,79752.7670,45054.2725,47556.4
Activities not adquately defined13,808 34,734 45,963 
                 Total1 118 835100.01 272 333100.01 332 342100.0

Table 12.11. SIZE AND DISTRIBUTION OF LABOUR FORCE

Industrial GroupFebruary 1934*
MalesFemalesTotal

* Individual components may not add due to rounding.

Source: Department of Labour.

 (thousand)
Primary
    Agriculture, hunting, and fishing100.2P37.3P137.5P
    Forestry and logging9.50.610.1
    Mining and quarrying4.90.55.4
        Total, primary114.6P38.4P153.0P
Manufacturing—
    Food, beverages, and tobacco, including seasonal59.318.978.2
    Textiles, clothing, and leather15.930.246.1
    Wood and wood products20.63.524.1
    Paper and paper products, printing and publishing24.710.935.6
    Chemicals, petroleum, rubber, and plastics19.48.227.6
    Non-metallic mineral products8.72.010.7
    Metal products and engineering28.75.233.9
    Machinery, excluding electrical16.22.618.8
    Electrical equipment10.86.417.2
    Transport equipment16.72.719.4
    Other manufacturing3.62.76.3
        Total, manufacturing224.693.3317.9
Electricity, gas, and water14.21.515.7
Construction85.05.990.9
Wholesale and retail trade, etc.
    Wholesale trade47.419.967.3
    Retail trade60.961.4122.3
    Restaurants, hotels, etc.15.925.741.6
        Total, wholesale, retail, etc.124.2107.0231.2
Transport and communication
        Transport and storage56.911.768.6
    Communications20.215.335.5
        Total, transport, etc.77.127.0104.1
Finance, insurance, etc.
    Finance14.119.533.6
    Insurance7.65.613.2
    Real estate and business services32.025.457.4
        Total, finance, etc.53.750.5104.2
Community and personal services
    Public administration, etc.48.425.373.7
    Sanitary services, etc.4.13.87.9
    Education services29.237.166.3
    Research and scientific institutes6.92.69.5
    Health services18.354.272.5
    Other community services10.113.123.2
    Recreational services13.17.420.5
    Personal and household services25.112.637.7
        Total, community and personal services155.2156.1311.3
        International and Extra-territorial Bodies0.4P0.3P0.7P
        Total in industry849.0P480.0P1 329.0P
Armed forces11.31.112.4
Registered unemployed33.913.957.7
Unregistered unemployed5.83.411.2
        Estimated total labour force900.0P510.P1 410.3P

Labour force projections

The alternative usually-resident New Zealand full-time labour force projections for the period 1984-2016 are shown in Table 12.12. These figures are complementary to the 31 March 1982 base population projections, included in chapter 5 of this Yearbook. The same fertility, mortality and net migration assumptions apply.

The definition of “usually-resident full-time labour force” used in deriving these projections includes all persons 15 years and over who are normally resident in New Zealand, and work at least 20 hours per week, plus those who are unemployed but seeking work. Consequently, these labour force projections should be regarded as indicating the future potential supply of labour in terms of the stated assumptions.

The “changing” labour force participation assumption employed in these projections implies an increasing participation by women in most economically active age groups and a declining level of male participation in ail age groups, until 1991. The assumptions continue trends in full-time labour force participation rates which have been evident during the period 1966-81.

Projections have also been derived for the usually-resident part-time labour force, which comprises those who are normally employed for less than 20 hours per week.

Table 12.12. LABOUR FORCE PROJECTIONS

At 31 MarchProjected New Zealand Usually-resident Full-time Labour Force* Assuming
Long-term Net Annual Migration of Zero and Short-term Migration Variant Designated:Long-term Net Annual Migration of 5000 and Short-term Migration Variant Designated:
LowMediumHighLowMediumHigh

* These projections have as base the estimated usually-resident, full-time labour force at 31 March 1982. The mortality, fertility and net migration assumptions on which the projections are based are the same as those for the population projections appearing in chapter 5 of this Yearbook.

†The projections incorporate “changing” age-sex specific labour force participation rates which assume a continuation of 1966-81 trends until 1991, after which time participation rates are assumed to remain constant.

 (thousand)(thousand)
19821,3521,3521,3521,3521,3521,352
19851,4401,4451,4491,4401,4451,449
19861,4671,4751,4811,4671,4751,481
19911,5881,5981,6101,5991,6071,617
19961,6591,6701,6841,6821,6921,703
2,0011,7051,7181,7341,7441,7541,767
2,0061,7381,7521,7681,7931,8041,817
2,0111,7491,7631,7801,8211,8321,846
2,0161,7361,7491,7671,8251,8361,849

Unemployment

Census data on unemployment. The great disadvantage of the Population Census as an indicator of the trend of unemployment is that it provides data at quinquennial intervals only. Unemployment figures from the 1971 Census were 8757 males and 7411 females. Figures from the 1981 Census give a total of 34 482 males and 25 776 females. Of these, 10 242 males and 12 228 females were in the 15-19 years age group.

Table 12.13. POPULATION CENSUS: UNEMPLOYMENT AMONG WAGE EARNERS*

Census DateUnemployed and Seeking WorkTotal Wage or Salary Earners
MalesFemalesMalesFemales

* New Zealand residents aged 15 years and over, working full-time in the labour force.

†Figures do not include Maori wage earners and unemployed.

‡Including men demobilised from Armed Forces not yet in employment.

§Includes Armed Forces.

19068,1891,372203,98755,491
19165,9201,156220,78374,302
192610,6942,434305,12096,425
193635,7741,862336,853120,610
19455 8231,090359 931§148,936
19565,5582,378476,637176,721
19665,1253,982610,732260,081
19718,7577,411651,499307,064
197614,39211,945699,327363,844
198134,48225,776696,891392,235

In Table 12.13 the 1936 figure includes men on rationed relief work, but excludes men (16 222) partly unemployed but not on relief work. The 1945 figure includes ex-servicemen recently returned from overseas who had not then resumed work.

The total of those who recorded themselves at the 1981 Census as unemployed and seeking work was 60 255. These are shown by sex and age group in Table 12.14. The 1976 Census totals, shown for purposes of comparison, include females but (like the 1981 figures) exclude visitors to New Zealand.

A significant feature of the total of unemployed at the 1981 Census is the high percentage of young people. Over 60 percent were below 25 years of age. Nearly half (47.5 percent) of the female unemployed were young women aged 15 to 19 years.

Table 12.14. POPULATION CENSUS: UNEMPLOYMENT BY AGE GROUP

Age Group (Years)1976 Census1981 Census
TotalMalesFemalesTotal
No.PercentNo.PercentNo.PercentNo.Percent

* New Zealand residents aged 15 years and over, involved full-time in the labour force.

15-1910,14839.710,24229.712,23447.522,47337.3
20-245,80122.77,93523.05,75122.313,68322.7
25-344,43317.47,77022.53,70214.411,47519.0
35-442,0818.23,51610.21,9417.55,4579.1
45 and over3,06712.05,01914.62,1488.37,16711.9
               Total*25 530100.034 482100.025 776100.060 255100.0

The 1981 Census rates (number of unemployed per 100 population) have been collated with those for Pacific Island Polynesians, and analysed as Polynesian unemployment rates. This analysis has been carried out for two different samples: under-25-year-olds and over-25-year-olds.

These samples were compared with a non-Polynesian unemployment rate sample, also divided into the 2 age groups. When differences resulting from the factors of age, sex, region, educational level and marital status were accounted for ('standardised'), there were still major differences in rates between the Polynesian and Non-Polynesian groups, especially for the under-25 sample.

The non-Polynesian unemployment rate was 7.3 (per 100 population) in the under-25 sample. The unstandardised Polynesian unemployment rate was 24.2, and the standardised rate was 18.8.

In the over-25 sample, the non-Polynesian unemployment rate was 2.1, the unstandardised Polynesian unemployment rate was 6.7, and the standardised Polynesian rate was 4.6. (For further information, see the Department of Statistics' publication 1981 Census of Population and Dwellings: Volume 12, General Report, 1985.)

Vacancies, placements, and unemployed persons. In addition to the annual employment survey in February and quarterly sample employment surveys in May, August, and November, the Department of Labour maintains a monthly record of registered unemployment, vacancies, placements, and employment and training assistance programmes. Data on unemployment given earlier in this section were derived from this record as are the following tables.

Unemployment benefit. Unemployment benefits under the Social Security Act have been payable since 1 April 1939.

Table 12.15. UNEMPLOYMENT BENEFITS*

As at 31 MarchUnemployment Benefit

* Includes emergency unemployment benefits.

Source: Department of Social Welfare.

198020,850
198135,666
198232,596
198350,744
198450,136
198538,419

Subject to the conditions set out in chapter 7, the unemployment benefit may be claimed as of right. Registration at a district office of the Department of Labour is a compulsory prerequisite to eligibility for the benefit. Hence it is considered that the great majority of workers becoming unemployed would register for employment in order to validate a claim for the benefit.

Close liaison is maintained between the Department of Social Welfare and the Department of Labour to prevent the payment of benefits where work is available. In addition to the requirement that a benefit applicant must register for work at an employment office, all unemployment beneficiaries must report regularly at the employment office.

Table 12.16. NOTIFIED VACANCIES AND PLACEMENTS

YearNotified Vacancies at End of MonthPlacements During Month
MalesFemalesTotal

Source: Department of Labour.

 Monthly Average for December Years
19813 438x4,9832,6147,597
19823,6815 352x2 866x8 218x
19832 857x5 680x3 103x8 783x
19845,2186,6304 086x10 716x
19855,4675,4223,6249,046

Table 12.17. AVERAGE NUMBERS OF REGISTERED UNEMPLOYED BY OCCUPATION GROUP

Occupations Sought by Registered Unemployed* (excluding vacation workers)1985
MalesFemales

* The occupational classification used is the employment and vocational guidance service classification of occupations (ESCO), developed by the Department of Labour.

Source: Department of Labour.

Primary industries (rural, mining, etc.)3,7831,622
Professional and technical1,1541,225
Administrative and managerial267128
Clerical and sales2,6106,379
Personal and other service workers1,2083,546
Building and construction workers2,222136
Production and related workers—
    Metal and electrical2,681498
    Other industries14,0984,082
Transport and materials handling3,758607
Other occupations n.e.c.804586
               Total32 58518 809

Table 12.18. REGISTERED UNEMPLOYED AND EMPLOYED ON SPECIAL WORK

PeriodRegistered Unemployed*Fully Subsidised Employment Assistance
MalesFemalesTotalWith Government DepartmentsSubsidised Work With Local Authorities§

* Includes vacation workers.

† Prior to August 1984 this series is equivalent to Public Sector Job Creation.

‡ And Hospital and Education Boards.

§And community organisations.

Source: Department of Labour.

 Monthly Average for December Year
198129,18819,12548,3135,1939,004
198231,33420,96552,0995 112x13 161x
198348,30428,17176,4754 648x16 336x
198441,36725,16766,5343 734x18 868x
198533,45919,72053,1792,36516,255
1985—Jan37,71826,05363,7712,82818,266
            Feb33,85623,85657,7122,82418,244
            Mar30,40120,52750,9282,71218,008
            Apr29,36419,54848,9122,69117,870
            May28,80218,60847,4102,41216,438
            Jun30,07118,06848,1392,31215,741
            Jul32,71417,27049,9842,47415,491
            Aug33,26516,33149,5962,23815,510
            Sep33,39615,75549,1512,22815,352
            Oct33,57415,55249,1262,10814,935
            Nov38,91521,76760,6821,93814,765
            Dec39,43823,30262,7401,62014,434

The relatively large numbers of young people included among the registered unemployed is a matter of concern, and various programmes and measures described in the following subsection have been instituted to assist young people to obtain employment, to provide vocational guidance, and to increase their skills.

Table 12.19. UNEMPLOYED PERSONS BY SEX AND AGE 1985

QuarterSchool Leavers*Age Group (In Years)Total
15-1920-2425-2930-3940 and Over

* School leavers, shown separately, are not included under age groups.

Source: Department of Labour.

 Males
Mar2,0615,9258,3454,8994,8254,34630,401
Jun1,4945,6638,3815,1704,9684,39530,071
Sep1,2855,9329,1995,8836,0445,05333,396
Dec2,1916,7739,7456,0775,7094,65335,148
 Females
Mar2,4916,0705,3542,1622,1762,27420,527
Jun1,8255,5394,7491,9491,9572,04918,068
Sep1,4034,9124,0691,7541,7911,82615,755
Dec2,4506,0204,8931,9341,7801,86018,937

Promotion of employment

The functions and duties of the Department of Labour are set out in the Labour Department Act 1954. On the employment side the duties include the provision of a no-charge Employment and Vocational Guidance Service for the purpose of placing workers in employment, assisting employers to provide employment, helping persons to find better or more suitable employment, aiding persons who require occupational readjustment or training and providing vocational guidance and counselling; the collection and publication of information relating to employment and unemployment; the making of surveys arid forecasts of the classes of employment required or available; the promotion of voluntary placing of suitable persons in such employment; and, in general, the promotion of full employment. The department also operates 3 worker hostels, and arranges for the selection of immigrants.

Employment and vocational guidance service programmes. The Employment and Vocational Guidance Service consists of the Employment Services Division and the Vocational Guidance Division. The priorities of the Employment Services Division are to meet employer needs by filling vacancies and seeking out more vacancies, to maintain a current register of job seekers and to meet the identified need of job seekers. The Vocational Guidance Division of the Employment and Vocational Guidance Service provides counselling and career information to people of all ages and backgrounds. The division liaises with Employment Services Division staff in assisting clients, and also provides community-based services to clients not requiring assistance from the Employment Services Division. The Department of Labour offers a 3-tier service to job seekers to help meet the needs of the labour market. The “Job Self Service” system ensures a rapid and simple method of filling employers' vacancies with people who are appropriate and interested in the employment offered, by attracting a wide spectrum of job seekers to peruse the vacancy display boards. Associated with “Job Self Service” are career reference areas provided by Vocational Guidance, where written and audio visual careers information is available in a library-like atmosphere and where members of the public may do their own research and investigation into careers that interest them.

For those job seekers who require more advice and help, the Employment and Vocational Guidance Service offers a placement service based on the establishment of personal contacts and knowledge of the job seekers and a continued liaison with employers and other organisations. The Employment and Vocational Guidance Service's knowledge of the local labour market and the job seeker's needs ensures a greater willingness of employers to notify a wide range of vacancies, more effective interviewing of clients and their subsequent placement in employment.

The Employment and Vocational Guidance Service also operates a number of programmes designed to provide training and apprenticeship opportunities, and to help disadvantaged workers obtain suitable employment.

Job Opportunities Scheme—The Job Opportunities Scheme provides employers with partial wage subsidies at 2 levels for 6 months if they offer jobs to people who have been looking for work for at least 10 weeks. Another option of this scheme pays the subsidy to unemployed individuals wishing to become self-employed. Two further options of the scheme will be introduced during 1986. One will pay a higher rate of subsidy in respect of unemployed individuals with physical or psychological disabilities. The other will pay a subsidy for alienated unemployed individuals wishing to work in groups.

Apprenticeship support measures—Include FAIR (Female Apprentice Incentive for Recruitment) aimed at assisting women into non-traditional apprenticeships and the Apprentice Block Course Subsidy to assist employers with off-job training of apprentices.

Training programmes—Operating during 1985 included the Young Person's Training Programme (YPTP), which provided basic institute and work-based training in occupational skills; the Adult Retraining Programme which provided institute and work-based retraining or skills improvement programmes for workers involuntarily displaced from their employment; and the School-leavers' Training and Employment Preparation Scheme (STEPS), which offered general pre-employment skills to 15- or 16-year-old school leavers who were unemployed. As of 1 January 1986 these 3 programmes have been replaced by the Training Assistance Programme, which offers 7 different modes of training both in and out of the workplace, to all job seekers who have left school, are under 60 years of age and are assessed by the department as suitable for the training offered.

Subsidised public sector programmes—Fully subsidised public sector programmes that operated during 1985 included the Work Skill Development Programme (WSDP) which aims to develop work habits and basic work skills for those with identified needs; the Work Rehabilitation Programme (WRP) which provides employment for those who have limited prospects of unsubsidised employment and require extended rehabilitation; the Project Employment Programme (PEP) which is aimed at providing short term employment for persons who are long duration unemployed, pending placement in regular employment; and the Voluntary Organisations Training Programme (VOTP) which funds training related employment projects in voluntary agencies through a full wage subsidy. All of these programmes will be phased out during 1986 and replaced by the partial subsidy options under the Job Opportunities Scheme.

The Community Employment Initiatives Fund (CEIF)—Finances, through grants, community-based initiatives aimed at creating jobs. As a further aid to employment, the department operates 3 hostels and assists with accommodation for all classes of workers, workers in training, and job seekers, especially for young people away from home for the first time.

Finance for job creation and training—Finance allocated during the 1984-85 financial year for job creation and training programmes included $52,700,000 for private sector job creation, $258,795,000 for public sector job creation and $27,748,000 for the Young Persons' Training Programme and the School-leavers' Training and Employment Preparation Scheme.

Table 12.20. NUMBER OF PEOPLE ENGAGED IN JOB CREATION PROGRAMMES*

Employment Assistance ProgrammeNumber

* As at end of January 1986.

†Replaced by the Job Opportunities Scheme in August 1985.

‡Replaced by the Private Sector Employment Incentive Scheme in July 1983.

§Replaced by the Employment Incentive Scheme in August 1984.

Source: Department of Labour.

Partly Subsidised Employment Assistance
    Job Opportunities Scheme4,112
    Student Employment Subsidy Scheme8,967
    Employment Incentive Scheme2,188
Additional Jobs Programme54
    Private Sector Incentive Scherne§5,298
All Partly Subsidised Programmes20 619
Fully Subsidised Employment Assistance
    Project Employment Programme7,577
    Work Skills Development Programme5,240
    Work Rehabilitation Programme289
    Voluntary Organisation Training Programme2,060
    Temporary Wage Worker Ceiling82
All Fully Subsidised Programmes15 248
               Total35 867

Group Employment Liaison Scheme. The Group Employment Liaison Scheme (GELS) aims to help groups of unemployed people make better use of the different Government employment and training programmes. It is designed to be of particular help to those who respond better to group work or training situations.

A network of 18 field workers (as of January 1985) has been established with a small unit at the Department of Labour's Head Office. The field worker positions are located in Northland, Greater Auckland, Hamilton, Rotorua/Tauranga, Gisborne, Hawke's Bay, Wellington, Canterbury, Timaru, and Dunedin. Eventually 25 fieldworkers will be employed covering all districts in New Zealand.

District employment and training advisory committees. The involvement of community interests in the development and implementation of labour market policies and programmes has continued through the network of 19 district employment and training advisory committees.

The terms of reference and scope of responsiblities of these committees encompass all aspects of the labour market including transition from school to working life, training for employment, and job creation.

Membership of the committees comprises representation of employer, union, education, and local body sectors, the unemployed, the Department of Labour and up to 5 other members to reflect the particular nature of the district and its concerns.

Their role is to act as a focal point for concerns and representations on labour market issues, and to advise the Government and Department of Labour accordingly.

Small Co-operative Enterprises Scheme. The Department of Internal Affairs funds and operates the Small Co-operative Enterprises Scheme (SCOPE). SCOPE provides advisory services and financial assistance for disadvantaged people who are unemployed and wish to set up small-scale co-operative business ventures. Finance is available in the form of grants and loans for feasibility studies, working capital, equipment, and specialist skills. Advisory Officers are located at the Department of Internal Affairs' 5 district offices (Auckland, Rotorua, Wellington, Christchurch and Dunedin), the Whangarei sub-office and at the Head Office, Wellington.

Work Development Scheme. The Department of Internal Affairs also takes an active role in other ways. This scheme provides advice, support and finance to community-based projects which are working to improve the skills and employment opportunities of young people, who for a variety of reasons have difficulty finding work and who need long-term personal help.

Finance is available for the salaries of 25 co-ordinators of projects throughout the country and for some operating costs. Eligible projects must be committed to increasing the resourcefulness of the young people and to encouraging them to join in decision-making. Salary grants are provided for up to 3 years subject to an annual evaluation of the project's operation.

Vocational training. Developing the capacities and potential of individuals as members of the workforce and assisting enterprises to improve their economic and social effectiveness are vital functions of vocational training. The promotion of systematic training within New Zealand on a national basis is the responsibility of the Vocational Training Council (VTC).

The council has the following membership, a chairperson; 2 members nominated by the New Zealand Employers Federation; 2 members nominated by the New Zealand Federation of Labour; 1 member nominated by the New Zealand Manufacturers' Federation; 1 member nominated by the Technical Institutes Association; 1 member nominated by the Authority for Advanced Vocational Awards and the New Zealand Trades Certification Board; 1 member appointed after consultation with representative groups or bodies in primary industry; the Secretary of Labour or nominee; the Director-General of Education or nominee; the Chairman of the State Services Co-ordinating Committee or nominee; the Chairman of the Combined State Unions or nominee; and the Chairman of the University Grants Committee or nominee. The Minister of Employment has also appointed 3 members—2 to represent the interests of women in the workforce and 1 to represent the interests of Polynesians.

Under the Vocational Training Council Act 1982 the council's functions are prescribed as advisory to Government. State departments, industry, commerce, agriculture, social welfare, and other interested organisations.

The objectives of the Vocational Training Council within the constraints of the Act are to:

  1. co-ordinate the activities of industry training boards and provide such boards with overall guidance to assist them with the effective discharge of their functions;

  2. identify, in association with any appropriate organisation or agency, the requirements for key skills in the workforce in New Zealand;

  3. undertake or arrange for the undertaking of research into aspects of vocational training;

  4. collect and disseminate information on vocational training and developments in vocational training both in New Zealand and overseas;

  5. make such recommendations to the Government as the council considers necessary on any vocational training activity that is financed directly or indirectly by public funds; and

  6. evaluate its own effectiveness, that of industry training boards and advisory committees.

Recommendations may relate to improved training, the development of new or established facilities, the co-ordination of training schemes, levies or other methods for the financing or encouragement of training, the award of scholarships, the fostering of research, the carrying out of inquiries and investigations in any field of training, and maintenance of an adequate information service.

However, the activities of the council considerably exceed that of an advisory or recommendatory role. The council has been, and still is, deeply involved in the promotion of fully-integrated training in the majority of industries and local authorities.

The Vocational Training Council encourages a systematic approach to training at all levels in all sectors of the economy, linked to proper personnel development. Representative industry training boards have been established for 32 industries. Boards include members from employer, employee, educational and other specialist groups. A major incentive has been an annual Government grant to encourage the appointment of executive training officers to work for industry training boards. There are some 90 equivalent positions established. Industry training boards examine existing training and assess the need for revised or new schemes within their particular industry.

Further, the council has concerned itself with 'back-up' research and investigational studies and with promoting training programmes for particular groups within the community. This is done through a series of advisory committees and the employment of researchers. Specialists in areas such as women and employment, apprenticeship and trade training, management and supervisory training, Polynesians in the workforce and training in the field of information technology, meet to organise projects in these areas and to make recommendations to the council.

In addition, the council has engaged specialist staff to assist industry in the analysis of training needs, the writing of training objectives for on-the-job training and production of training packages and record books.

Agricultural Training Council. The Agricultural Training Council was gazetted as an industry training board in 1971 under the Vocational Training Act following recommendations of the 1970 Training in Agriculture Conference. The role of the council is to develop, co-ordinate and promote organised training in those sectors of the primary industry for which it is responsible, and at the same time work closely with those agencies and other industry training boards having responsibilities in other sectors of the primary industry. The Agricultural Training Council has a Regional Agricultural Training Officer Scheme comprising agricultural training officers and regional training committees. The role of the regional scheme is to carry out the training functions of the council at a regional level.

The council comprises representatives from Federated Farmers of N.Z Inc., N.Z. Federation of Young Farmers, Farm Workers' Association, the farming industry, the horticultural industry, the equine industry, Ministry of Agriculture and Fisheries, Vocational Training Council, Department of Education, Lincoln and Massey Universities, Department of Labour, the Technical Institutes Association, and the New Zealand Workers' Union.

Apprenticeships. The Apprenticeship Act 1983 which came into force on 1 November 1983 governs the administration of apprenticeship. The Act prescribes who apprentices are and how one gets to be an apprentice and generally provides a flexible framework for the administration of apprenticeship contracts. Emphasis is placed on the promotion of apprenticeship training and the creation of employment opportunities for apprentices.

Orders prescribing terms and conditions of apprenticeship in various industries are made by the Arbitration Court, which consists of a judge, a workers' member and an employers' member. Orders are made on the recommendation of New Zealand Apprenticeship Committees, most of which consist of 4 representatives of employers, 4 representatives of workers, a person conversant with technical education and the Commissioner of Apprenticeship (or the Commissioners' deputy) who chairs each committee ex-officio. The New Zealand committees are in effect policy-making committees. There are 36 committees, which normally meet once or twice a year. Committees covering larger industries, such as engineering, carpentry, motor, and printing, meet more often.

Day-to-day administration of the Apprenticeship Act and the apprenticeship orders is carried out by District Commissioners of Apprenticeship in conjunction with local apprenticeship committees. These committees have an active promotional field role and membership generally consists of 1 employer representative and 1 worker representative with the District Commissioner in the chair although there is provision in the Act for larger committees to be established in certain circumstances.

In the majority of industries there are provisions in apprenticeship orders for the attendance of apprentices at technical classes, both during working hours and in the evening. In most industries technical training is concentrated into an annual course of 3 or 4 weeks duration. In some cases courses are longer with the advent of extended institute training, as in the carpentry and joinery, engineering, and aircraft engineering industries.

The general policy regarding apprentice education is determined by the New Zealand Apprenticeship Committees in co-operation with the Department of Education. That department itself operates a Technical Correspondence Institute, which provides courses of instruction for those apprentices who live too far from any school to allow them to attend evening classes.

A statutory body, the New Zealand Trades Certification Board, conducts examinations for apprentices. The examinations are voluntary and, except in the electrical, radio, plumbing, and gasfitting trades (where registration is required), no examination test is required for the practice of a trade. A number of trades have internal assessment conducted by technical institutes in place of the first and second qualifying examinations. There is very close liaison between New Zealand Apprenticeship Committees and the board, the Commissioner of Apprenticeship being a member of the board.

Table 12.21. APPRENTICESHIP CONTRACTS FOR THE YEAR ENDED 31 MARCH 1985

IndustryContracts Entered into During the Year Ended 31 March 1985Contracts Completed During the Year Ended 31 March 1985Contracts in Force at 31 March 1985

Source: Department of Labour.

Aircraft2579161
Baking14879324
Boilermaking4046216
Bricklaying5528170
Carpentry1,3387473,703
Clothing401879
Coachbuilding6663201,773
Electrical7095522,177
Engineering1,0351,0253,232
Footwear repair and making5213
Footwear manufacturing5920150
Furniture332230884
Glazing5624179
Golf courses greenkeeping451898
Hairdressing—ladies8414351,987
Hairdressing—mens151439
Heating and ventilation242470
Horticulture12085328
Industrial instrumentation201587
Jewellery3837118
Masonry4319
Motor1,3361,0803,783
Moulding11931
Painting293168745
Photo-engraving6745128
Piano repairing and tuning215
Plastering3926116
Plumbing and gasfitting306229995
Printing340188754
Radio13991319
Refrigeration engineering4944155
Retail meat industry335254986
Saddlery, leather, and canvas goods262480
Sheetmetal working121105384
Shipbuilding7818185
Signwriting6022173
Timber industry5753114
Woollen milling industry3212
Miscellaneous trades5561126
                 Total8 9326 22124 898
Male apprentices7 9315 70422 490
Female apprentices1 0015172 408

In addition to the numbers of apprentices shown above, there were at 31 March 1985, 2140 apprenticeship contracts in force in Government departments, of which 513 were registered during the year ended 31 March 1985.

Training courses for Maori and Pacific Islanders. This programme has been operating since 1959. Training courses leading to formal certification are run in conjunction with tertiary education institutions, as well as pre-apprenticeship courses in 14 trades. At its inception, the programme provided training opportunities for young rural Maoris, but now there is an even distribution of trainees from both rural and urban areas. The department also sponsors a number of students under the Tu Tangata Youth Development programme, at Massey, Waikato, Victoria and Canterbury Universities. Agreements are entered into with a number of employers to engage Maori and Pacific Island youth under a joint venture programme. Wages are subsidised by the department on the understanding that provided the trainee is suitable, he will be absorbed into the employer's firm or guaranteed employment with other firms doing the same type of work.

Table 12.22. TRAINING COURSES

Course198419851986

Source: Department of Labour.

Agriculture courses—
    Farming training, fishing, and horticulture (including joint venture horticulture programmes)504554
Pre-apprentice training courses—
    Auto-diesel; carpentry (1st and 2nd year); coachbuilding; electrical wiring; fitting and turning; fitting and welding; metal trades; hair-dressing; joinery; meat retailing; motor mechanics; painting and decorating; plumbing and gasfitting and sheetmetal434452454
Vocational or non-trade courses—
    Carving and Maori language (2-year course); chef cooking and catering; general merchandising; hotel receptionists, secretarial and typing; technicians; building and engineering; office training; and joint venture316300322
Tu Tangata university programme—
    BBS Massey University; BBM Waikato University; B. For. Sc. (Forestry) Canterbury University727681
Introductory awareness and short-term courses—
    Key-to-disc operations, journalism, radio announcing and nursing130171162
                 Total trainees1 0021 0441 073

The Equal Employment Opportunities Unit. The Equal Employment Opportunities Unit (EEOU) of the State Services Commission has the overall functional responsibility for the promotion, co-ordination and monitoring of equal employment opportunity policies, programmes and practices within the Public Service.

The State Services Commission established the unit in 1983 to implement its policies in the areas of recruitment, conditions of employment, career development, selection and promotion to ensure that people are given equal access and consideration to pursue their careers without having their chances reduced by factors such as race, sex, country of origin, physical disability, marital status, or personal beliefs. A network was set up to facilitate the co-ordination between the unit and departments at central and regional level. In each of the 38 government departments, the senior manager responsible for the promotion, development and co-ordination of equal employment opportunity policies reports back to the unit on the progress achieved in accordance with the positive approach set out in the policy statement agreed by members of the State Services Co-ordinating Committee in February 1984. In March 1984 a Regional Liaison Officer, EEO—Auckland, was appointed to ensure that frontline experience of problems in the largest urban area was taken into account. In June 1984 the EEOU set up a 12 member Inter-departmental Standing Advisory Committee on Equal Employment Opportunities (ISAC-EEO) to assist it in formulating new policy and determining long-term objectives. The Committee advises the Commission on the monitoring of the suitability and effectiveness of existing equal employment opportunity practices in the Public Service. The unit publishes a quarterly newsletter to keep public servants informed of developments and provide a forum for ideas to which employees can contribute.

The programme of the unit is full and varied. Along with assisting the departments in the preparation of their equal employment opportunity management plans by providing advice and resource material, the unit initiates and reviews policies and updates EEO modules for use in departmental training programmes. The EEOU also organises seminars and workshops on equal employment principles and practices for departmental managers and EEO Liaison Officers; it promulgates positive action programmes which are designed to achieve progress towards equal employment opportunities for women, ethnic minorities and disabled persons.

For unlawful discrimination on grounds of sex, see chapter 3, Government and law.

National Advisory Council on the Employment of Women (NACEW). The National Advisory Council on the Employment of Women was set up in 1967. It is composed of a chairperson and 12 other members. The Chairperson and 6 council members are appointed by the Minister of Employment for their knowledge and experience in women's employment matters. The remaining 6 members represent the major employee and employer organisations in the private and public sectors, and the Departments of Labour and Education. NACEW thus has a tripartite nature.

The council's primary function is to advise the Minister of Employment on all matters relating to the employment of women: for example, equal opportunity for girls and women in employment and training, parental leave, child-care and the social security system as it affects women. The most significant instances of this to date are the planning which preceded the Commission of Inquiry into Equal Pay and the drafting or the maternity leave legislation.

The council's second function is to promote a greater public knowledge and understanding of women's employment and its implications. Accordingly, the council has made submissions to bodies such as the Commission of Inquiry into Equal Pay, the Royal Commission on Social Security, the Select Committee on Women's Rights and the Select Committee on the Human Rights Commission Bill.

Thirdly, in co-operation with the Department of Labour, which provides secretarial assistance to NACEW, the council has published statistical and pamphlet material on women's employment issues; promoted research into the employment of women and related topics such as industrial child-care; and promoted pilot schemes to explore ways of assisting disadvantaged groups of women in the paid workforce.

Women's Advisory Committee of the Vocational Training Council (WAC/VTC). The Women's Advisory Committee of the Vocational Training Council was established in 1975 to advise the council on matters relating to women's training and to act as a catalyst to change the traditional attitudes affecting the vocational training of women and girls. The council, which formerly reported to the Minister of Education, now reports to the Minister of Labour.

Membership of the committee comprises representatives from the Federation of Labour, the Employers' Federation, State Services Co-ordinating Committee, the Combined State Unions, the Departments of Education and Labour, the Technical Institute/Community College system, the Polynesian Advisory Committee of the VTC, the National Advisory Council on the Employment of Women, and the Advisory Committee on Women's Affairs. There is also provision for an additional person with experience and knowledge of the special needs of women in relation to training and employment. The committee is chaired by a ministerial appointee to the VTC.

Since its establishment, the committee has been directing its efforts towards achieving equality of opportunity for women in the areas of training, and the promotion of non-traditional occupations for women is one of its current major programmes.

Statistics of employment

Employment surveys. Since February 1980 the Department of Labour, has carried out an annual employment survey in February and quarterly sample surveys in May, August, and November. These surveys are carried out by means of inquiries to employers of labour, and the results are published in the Labour and Employment Gazette. Returns are required from all establishments in which 2 or more persons are engaged on a full-time equivalent basis (2 part-time workers are regarded as equivalent to 1 full-time worker). Government and local authority employment is included. Employers in farming, hunting, trapping, fishing, waterfront work, seagoing work, private domestic service, and armed forces are not required to submit quarterly returns.

Table 12.23. SUMMARY OF EMPLOYMENT

Date of SurveyFull-time Employees and Working ProprietorsPart-time Workers
MalesFemalesTotalMalesFemalesTotal

Source: Department of Labour.

1984— Feb628,791328,746957,53733,408127,527160,935
May633,999336,713970,71236,365136,821173,186
Aug618,594338,626957,22036,135139,354175,489
Nov630,007344,883974,89036,183141,612177,795
1985—Feb641,467349,778991,24536,116136,723172,839
May642,271355,839998,11038,697146,101184,798
Aug626,816356,999983,81539,561146,063185,624
NovP627,471360,041987,51240,086150,417190,503

Employment by local authorities. Employees of local authorities are principally engaged in the construction and maintenance of roads and streets, the operation and maintenance of public- utility industries (gas, electric, and water supply, and transport), and community services.

In Table 12.24 particulars are given of the number of all direct wage-earning employees who were actually in the employ of the various classes of local authorities (hospital boards excluded) at 28 February of each of the latest 3 years inclusive. Besides permanent staff, including administrative and professional employees, the statistics include part-time, casual, and temporary employees, but exclude those employed by contractors and public sector job creation schemes.

Table 12.24. CLASSES OF EMPLOYMENT BY LOCAL AUTHORITIES

Local Authorities*Employees at 28 February
198219831984

* For numbers see chapter 3.

†Includes gas board employees.

‡Includes employees of licensing trusts (3300 in 1982, 3332 in 1983, and 3562 in 1984) and hydatids districts (29 in 1982, 27 in 1983, and 25 in 1984).

Catchment boards1,0971,0301,087
City and borough councils19,99420,53220,535
County Councils5,3915,1415,201
District councils1,3031,6031,656
Electric power boards6,9907,0637,275
Harbour boards3,8913,9003,864
Harbour bridge authority12813097
Land drainage boards302629
Local railway board998
Museum authority142126139
Nassella tussock boards635254
Plantation board141313
Pest destruction boards527496467
Regional authorities2,9103,0932,924
River boards888
Town boards202019
Urban drainage boards489495510
Urban transport board490522491
Valley authority635467
Water supply boards666
                 Total46 89247 67848 064

Public Service employment. Permanent staff in the Public Service as at 31 March 1984 totalled 66 160, of whom 42 054 were males and 24 106 females. In addition, the Public Service gave employment to 1506 temporary staff and 18 072 wage workers, giving a total for all employees of 85 738 (55 581 males and 30 157 females) compared with 85 229 as at 31 March 1983. These figures do not include the staffs of the Post Office, the railway service, the Police (except civilian staff), education boards, hospital boards, or universities.

Statistics from censuses of population 1976 and 1981. Final figures of the industrial and occupational distribution of the labour force by industry major divisions and occupation major groups at the 1931 Census of Population and Dwellings are given in Tables 12.25 and 12.26.

Final data on the industrial and occupation distribution of the labour force from the 1981 Census have been subject to a process of random rounding. All cell values, including row and column totals have been rounded, using simple random rounding, to base three. Individual figures, therefore, will not necessarily sum to give the stated totals.

The data refer to the usually resident population, i.e. they do not include overseas visitors who did not or would not work while in New Zealand. Data from the 1976 Census have been reprocessed on this basis.

Table 12.25. POPULATION CENSUS: INDUSTRIAL DISTRIBUTION OF LABOUR FORCE BY AGE

Industry Major DivisionAge Group (Years)Total
15-2425 4950 and Over

* New Zealand residents engaged full-time in the labour force.

 1981 Census: Number of Persons
Agriculture, hunting, forestry, and fishing35,36179,69529,196144,252
Mining and quarrying9902,5921,0774,659
Manufacturing86,817165,66358,650311,133
Electricity, gas, and water3,4868,1483,48615,123
Construction21,38748,98115,37285,737
Wholesale and retail trade, restaurants, and hotels59,328114,56744,541218,439
Transport, storage, and communication24,72361,53321,576107,826
Financing, insurance, real estate, and business services30,48946,68314,46391,638
Community, social, and personal services85,905164,67356,997307,575
Activities not adequately defined23,74816,7975,41845,963
                 Total*372 237709 329250 7761 332 342

Table 12.26. POPULATION CENSUS: OCCUPATIONAL DISTRIBUTION OF LABOUR FORCE BY AGE

Occupation Major GroupAge Group (Years)Total
15-2425-4950 and Over

* Includes related workers.

†New Zealand residents engaged full-time in the labour force.

 1981 Census: Number of Persons
Professional and technical *43,392110,03130,546183,966
Administrative and managerial1,40431,65912,93045,993
Clerical*74,634101,97638,154214,761
Sales workers26,55972,02428,521127,101
Service workers27,77457,66621,192106,629
Agricultural, animal husbandry, and forestry workers, fishermen, and hunters36,02779,71630,549146,295
Production workers*, transport equipment operators, and labourers137,121238,18882,620457,935
New workers seeking employment8,358180278,559
Workers reporting occupation unidentifiable or inadequately described2,2654,8542,0949,213
Workers not reporting any occupation14,70313,0384,14631,890
                 Total372 234709 335250 7731 332 342

Table 12.27. POPULATION CENSUS: EMPLOYMENT STATUS

Employment Status1976 Census1931 Census
MalesFemalesTotal'MalesFemalesTotal*

* New Zealand residents aged 15 years and over.

†Equates to the status “Employer of labour” used in the 1976 and earlier censuses.

‡Equates to the status “Own account worker” used in the 1976 and earlier censuses.

§Includes part time workers, i.e., those working less than 20 hours per week; excludes children under 15 years.

Self-employed, employing labour70,43112,38482,81554,32914,05278,381
Self-employed, not employing labour76,37014,67191,04175,84017,28993,132
Wages or salary earner692,257361,0121 053 269696,891392,2351 089 129
Unemployed, seeking work13,99111,53925,53034,48225,77660,255
Relative assisting, unpaid6603,1873,8471,4914,9416,429
Not specified (20 hours or more worked)2,0105902,6003,5731,4465,019
Total in the full-time labour force855,719403,3831 259 102876,609455,7361 332 342
Not in the full-time labour force§219,456697,920917,376253,731710,628964,362
                 Grand total1 075 1751 101 3032 176 4781130 3401 166 3642 296 704

Table 12.28. POPULATION CENSUS 1981: INDUSTRIAL DISTRIBUTION OF LABOUR FORCE BY SEX

Industrial Major Division and DivisionMalesFemalesTotalPercentage
Agriculture, hunting, forestry, and fishing—
    Agriculture and hunting99,28230,927130,2099.8
    Forestry and logging9,73568410,4190.8
    Fishing3,3812373,6180.3
                 Total 1981112 40431 851144 25510.8
                 Total 1976104,67222,924127,59610.1
Mining and quarrying—
    Coalmining1,500511,5510.1
    Crude petroleum and natural gas production6271117380.1
    Metal-ore mining35148399..
    Other mining1,8511231,9740.1
                 Total 19814 3293304 6590.3
                 Total 19764,6162104,8260.4
Manufacturing—
    Food, beverages, and tobacco61,05915,71776,7765.8
    Textile, wearing apparel, and leather industries15,90929,63745,5463.4
    Wood and wood products including furniture19,9292,91022,8391.7
    Paper and paper products, printing and publishing24,6069,63934,2452.6
    Chemicals and chemical, petroleum, coal, rubber, and plastic products19,3357,90527,2402.0
    Non-metallic mineral products except products of petroleum and coal9,1861,88111,0670.8
    Basic metal industries6,3577477,1040.5
    Fabricated metal products, machinery and equipment66,51615,28281,7986.1
    Other manufacturing industries2,6821,8334,5150.3
                 Total 1981225 57985 551311 13023.4
                 Total 1976222,79281,741304,53324.2
Electricity, gas, and water—
    Electricity, gas, and steam12,8371,26314,1001.1
    Waterworks and supply981421,0230.1
                 Total 198113 8211 30215 1231.1
                 Total 197613,6641,54115,2051.2
Construction—
    Building and construction51,7622,34654,1084.1
    Allied trades29,5202,10931,6292.4
                 Total 198181 2794 45885 7376.4
                 Total 1976106,7204,813111,5338.9
Wholesale and retail trade and restaurants and hotels—
    Wholesale trade48,80418,42967,2335.0
    Retail trade58,32955,740114,0698.6
    Restaurants and hotels14,81722,32037,1372.8
                 Total 1981121 94796 492218 43916.4
                 Total 1976122,64492,157214,80117.1
Transport, storage, and communication—
    Transport and storage61,91110,71972,6305.5
    Communication20,09115,10835,1992.6
                 Total 198182 00225 827107 8298.1
                 Total 197685,29123,312108,6038.6
Finance, insurance, real estate, and business services—
    Financial institutions13,38316,18529,5682.2
    Insurance8,4845,80814,2921.1
    Real estate and business services27,34820,43047,7783.6
                 Total 198149 21542 42391 6386.9
                 Total 197644,40434,57678,9806.3
Community, social, and personal services—
    Public administration and defence54,45322,90577,3585.8
    Sanitary and similar services4,2783,5617,8390.6
    Social and related community services60,540104,730165,27012.4
    Recreational and cultural services13,0866,97520,0611.5
    Personal and household services25,17911,16036,3392.7
    International and other extra-territorial bodies4292827110.1
                 Total 1981157 965149 610307 57523.1
                 Total 1976131,238129,532260,77020.7
Activities not adequately defined—
                 Total 198128 06817 89545 9633.4
                 Total 197619,67812,57732,2552.6
                 Total full-time labour force, 1981876 606455 7331 332 342100.0
                 Total full-time labour force, 1976855,719403,3831 259 102100.0

Table 12.29. POPULATION CENSUS 1981: OCCUPATIONAL DISTRIBUTION OF LABOUR FORCE BY SEX

Occupational Major Group and Minor GroupMalesFemalesTotal

* Includes related workers.

† Includes armed forces.

NOTE: n.e.c. denotes—not elsewhere classified.

Professional and technical*
    Physical scientists and technicians2,6311,1193,750
    Architects, engineers and technicians25,5451,41026,955
    Aircraft and ships officers2,460392,499
    Life scientists and technicians4,0412,6736,711
    Medical, dental, and veterinary workers*12,29732,04944,346
    Statisticians, mathematicians, systems analysts and technicians2,1427052,847
    Economists8432311074
    Accountants9,6121,13110,743
    Jurists3,7683874,155
    Teachers22,24830,27352,521
    Workers in religion2,9196693,588
    Authors, journalists, and writers*2,1391,1733,312
    Sculptors, painters (artists), photographers3,2851,6744,959
    Composers and performing artists1,7521,0742,826
    Athletes, sportsmen/sportswomen*732267999
    Professional, technical n.e.c*6,7055,97012,675
                 Total 1981103 11980 847183 966
                 Total 1976102,83373,206176,039
Administrators and managerial workers—
    Legislative officials and government administrators78081861
    Managers (excluding those in wholesale and retail trade, catering and lodging services, and in farming)41,4933,63945,132
                 Total 198142 2733 72045 993
                 Total 197637,6052,83640,441
Clerical workers—
    Clerical supervisors5,3882,4787,866
    Government executive officials6,0216546,675
    Stenographers, typists, and card-and-tape-punching machine operators63634,12834,764
    Bookkeepers, cashiers*14,61632,06746,683
    Computing machine operators1,3715,7967,167
    Transport and communications supervisors6,7235617,284
    Transport conductors55233585
    Mail distribution clerks2,3492,3314,680
    Telephone and telegraph operators1,2005,6106,810
    Clerical n.e.c*28,28763,96392,250
                 Total 198167 143147 618214 761
                 Total 197669,360134,676204,036
Sales workers—
    Managers (wholesale and retail trade)13,9834,19118,174
    Working proprietors (wholesale and retail trade)10,9057,17018,075
    Sales supervisors, and buyers4,3951,1675,562
    Technicial sales staff, commercial travellers, and manufacturers' agents13,5812,15715,738
    Insurance, real estate, securities and business services salespersons, and auctioneers10,7431,63812,381
    Salespersons and shop assistants*21,50135,33156,832
    Sales workers n.e.c.237102339
                 Total 198175 34551 756127 101
                 Total 197677,19947,351124,550
Service workers (inc. armed forces)—
    Managers (catering and lodging services)2,3791,7014,080
    Working proprietors (catering and lodging services)3,8763,3427,218
    Housekeeping and related service supervisors3512,3492,700
    Cooks, waiters/waitresses, bartenders*6,38414,49020,874
    Housestaff and related housekeeping service workers n.e.c.1,3599,24910,608
    Building caretakers, charworkers, and cleaners*6,5557,53314,088
    Launderers, drycleaners, and pressers1,1162,4633,579
    Hairdressers, barbers, beauticians*1,0774,6835,760
    Protective service workers22,5901,83924,429
    Service workers n.o.c.4,6238,67313,296
                 Total 198150 30756 322106 629
                 Total 197645,57949,15094,729
Agricultural, animal husbandry, and forestry workers, fishermen, and hunters—
    Farm managers and supervisors3,6481293,777
    Farmers59,17513,68072,855
    Agricultural and animal husbandry workers39,26715,82555,092
    Forestry workers9,3003669,666
    Fishermen and hunters*4,7012074,908
                 Total 1981116 09130 204146 295
                 Total 1976107,84321,770129,613
Production and related workers, transport equipment operators, and labourers—
    Production supervisors, overseers and general foremen/forewomen (non-clerical) and excluding agriculture, transport, sales and service supervisors, overseers and foremen/forewomen16,2361,82418,060
    Miners, quarrymen, and well-drillers*1,89661,902
    Metal processers2,8051682,973
    Wood preparation workers and paper makers9,4265139,939
    Chemical processers*1,8813902,271
    Spinners, weavers, knitters, dyers*3,8493,0036,852
    Tanners, fellmongers, and pelt dressers8972461,143
    Food and beverage processers39,8435,15444,997
    Tobacco preparers and tobacco product makers126252378
    Tailors, dressmakers, sewers, and upholsterers*4,69518,88823,583
    Shoemakers and leather goods makers1,9862,6734,659
    Cabinet makers and related woodworkers5,6044446,048
    Stone cutters and carvers1899198
    Blacksmiths, toolmakers, and machine tool operators7,5606158,175
    Machinery fitters, machine assemblers, and precision instrument makers (except electrical)50,6251,56352,188
    Electrical fitters and electrical and electronics workers29,6733,12332,796
    Broadcasting station and sound equipment operators and cinema projectionists603126729
    Plumbers, welders, sheet-metal and structural metal preparers and erectors23,60753424,141
    Jewellery and precious metal workers9332581,191
    Glass formers and potters*2,1907352,925
    Rubber and plastics product makers4,7371,5726,309
    Paper and paper-board products makers552327879
    Printers*8,0793,36011,439
    Painters13,38039613,776
    Production and related workers n.e.c.4,7703,0937,863
    Bricklayers, carpenters, and other construction workers40,71917440,893
    Stationary engine and related equipment operators n.e.c.3,219153,234
    Material handling and related equipment operators, dockers, and freight handlers34,5067,60542,111
    Transport equipment operators37,6771,83639,513
    Labourers n.e.c.38,3948,37946,773
                 Total 1981390 66067 275457 935
                 Total 1976400,11165,595465,706
Workers not classifiable by occupation—
    New workers seeking employment:
    19813,7954,7648,559
    19761,7052,5574,262
    Workers reporting occupation unidentifiable or inadequately described:
    19816,9122,3019,213
    197612,5585,63918,197
    Workers not reporting any occupation (excluding armed forces):
    198120,96410,92931,893
    19769266031,529
                 Total in full-time labour force, 1981876 606455 7361 332 342
                 Total in full-time labour force, 1976855 719403 3831 259 102

Women in the labour force

The resident full-time labour force at the 1981 Census was 1 332 342, of whom 876 606 were males and 455 736 females. Thus, women formed 34.2 percent of the labour force in 1981 compared with 32.0 percent in 1976. There was an increase of 73 240 or 5.8 percent in the total labour force in 1981 as compared with the previous census in 1976. Of this increase 52 353 (71.5 percent) were females and 20 887 were males. The more rapid growth of the female component of the labour force as compared with that of males was in line with the experience of almost half a century, but the situation during the most recent intercensal period has been complicated by losses of both men and women due to migration.

The labour force is defined as consisting of persons aged 15 years and over who are resident in New Zealand and working at least 20 hours per week for financial gain, plus those unemployed and seeking work. Data on those in part-time employment for less than 20 hours a week were also collected at the 1981 Census. The total number of people engaged in part-time employment was 115 140, of whom 20 013 were males and 95 127 females. Males in part-time work were mainly either relatively young (47.3 percent of them were in the 15-19 years age group) or in the 60 years and over category and so semi-retired. Female part-time workers were more evenly distributed over the age categories. Of the total of 95 127 women, over three-quarters were married.

Among the 72 354 married women working part-time, 23 709 worked from 15 to 19 hours a week and 21 987 worked from 10 to 14 hours a week.

Table 12.30, which shows the numbers of married women and total women by age groups working for financial gain, is in 3 parts. The first part shows women working for financial gain for at least 20 hours a week and therefore forming part of the labour force; the second part shows women in part-time employment; and the third part, all women working for financial gain. There are no data regarding hours spent on housework or on unpaid community or social work.

Table 12.30. POPULATION CENSUS 1981: NUMBER OF WOMEN EMPLOYED

Employment and Marital StatusAge Group (Years)Total
15-1920-2425-2930-3940-4950 and Over

* New Zealand residents.

Full-time employment—
    Married women2,09426,22328,86969,65466,47446,683240,000
    Other women72,04558,00521,84624,68117,92821,237215,736
                 Total*74 13984 22850 71594 33584 40267 920455 736
Percentage, married2.831.156.973.878.868.752.7
Part-time employment—
    Married women1773,1989,99028,17617,25613,55172,354
    Other women9,6872,0861,3862,9161,8484,84822,773
                 Total*9 8645 28611,37631 09219 10418 39995 127
Percentage, married1.860.587.890.690.373.776.1
All women in employment—
    Married women2,27129,42138,85997,83083,73060,234312,354
    Other women81,73260,09323,23227,59719,77626,085238,509
                 Total*84 00389 51462 091125 427103 50686 319550 863
Percentage, married2.732.962.678.080.969.856.7

NOTE: These figures have been rounded, using simple random rounding, to base three. Because of this, totals are not necessarily the exact sum of the component parts.

The percentage of married women in the full-time labour force has increased between every census since 1936, for all age groups other then the 60 years and over age groups. Between the 1976 and 1981 censuses the percentage of married women over 60 years of age who were involved in the labour force decreased.

Table 12.31 gives the percentage of married women in the full-time labour force as a percentage of all married women in the same age group.

Table 12.31. PERCENTAGE OF MARRIED WOMEN IN LABOUR FORCE

Age (Years)Census
193619451956196619761981*

* New Zealand residents aged 16 years and over.

Percentage of Married Women in the Full-time Labour Force
16-195.718.218.523.540.341.7
20-244.317.419.426.744.048.4
25-293.710.311.715.828.834.0
30-343.68.011.316.431.535.6
35-393.68.413.921.841.746.9
40-443.98.716.626.946.353.2
45-494.47.817.527.744.251.3
50-544.26.115.525.237.842.2
55-594.24.610.818.525.428.9
60-642.82.55.29.511.49.9
  65 +1.61.01.62.12.41.9
All ages—
  16 +3.77.712.919.932.635.8

The increasing tendency for women to continue in employment after marriage until the birth of the first child and to re-enter the labour force as family responsibilities lessen, has been aided by a combination of factors, including marriage at younger ages, changing social attitudes, and a greater awareness and acceptance of family planning.

For many years the female labour force has included a higher percentage of youthful workers than has the male but this is becoming progressively less noticeable as more married women remain in (or return to) the labour force. At the 1981 Census, women under 20 years of age made up 16.3 percent of the female labour force compared with 18.5 percent in 1976 and 25.9 percent 20 years earlier in 1961. Another reason for the fall in the percentage of women under 20 in the labour force is the increasing number of women and girls staying longer at school or attending tertiary education institutions as a preparation for a career. Department of Education figures for university education show that the number of internal students at 1 July 1961 in university institutions and agricultural colleges numbered 12 585 males and 3944 females. However, in 1981 the number of males reported had more than doubled to 25 673, whereas the numbers of females had increased more than fourfold to 19 063. Men of below 20 years of age make up a relatively constant proportion of around 10 percent of the male labour force. (They represented 10.0 percent and 10.1 percent, respectively, at the 1976 and 1981 censuses, and 9.3 percent 20 years earlier in 1961.)

Working life expectancies

A table of working life displays the manner in which rates of participation in, entry to, and withdrawal from, the labour force vary with age for a given population group. Also included are expectancies of future working life and retirement life, assuming that the rates displayed in the table continue unchanged. The main applications of these tables are for economic and social studies relating to large groups of people. Individuals frequently do not conform to group patterns and, therefore, applications of any statistics from the tables must be made with caution.

Abridged tables of working life for males and females, based on labour force data from the 1976 Census of Population and Dwellings and the 1975-77 Life Tables (Total Population), are given in Table 12.32.

A further series of tables of working life will be produced following the 1986 Census of Population and Dwellings.

Table 12.32. WORKING LIFE EXPECTANCIES

Exact Age (Years)Percentage of Population in Labour ForceNumber in Labour Force, per 100000 Live BirthsChanges in the Labour Force in the Following 5 Years of Age. per 100 000 Live BirthsExpectation of Work Life of Person in Labour Force (Years)Expectation of Retirement Life of Person in Labour Force (Years)
Total Entries*Total Withdrawals

* Entries of females into the labour force below the horizontal line are secondary entries by those who withdrew at younger ages for family formation.

†The working life expectancies for females allow for the possibility of a second spell of labour force membership after a period of non-membership due to family formation.

‡Difference between life expectancy and working life expectancy.

§These are withdrawals at all ages 80 and above.

Males
15--83,49153045.710.0
2085.882,9619,79882041.110.1
2596.091,9392,15063736.510.2
3098.293,45230165731.710.2
3598.693,096461,05526.910.3
4098.592,087-1,80422.210.4
4598.190,283-3,42017.610.5
5097.186,863-6,29713.210.6
5594.380,566-17,2399.010.8
6079.963,327-35,0825.610.5
6540.228,245-17,9464.88.1
7017.710,299-6,4344.65.4
759.13,865-2,7634.03.7
804.11,102-1 102§3.32.4
Females
15--87,05717,52318.843.0
2071.169,53412,03238,08216.940.1
2544.643,4841,99513,82821.231.0
3032.631,65212,1945,07222.924.4
3540.138,7749,6622,78120.721.9
4047.545,6554,0393,84616.821.0
4548.345,8482,2626,59813.020.3
5044.541,5136959,6559.719.1
5535.932,552-14,3866.817.8
6020.818,166-11,0925.115.4
658.67,074-4,6354.612.0
703.32,439-1,6174.58.5
751.3822-5634.35.7
800.5257-258§4.03.2

NOTE: Because of rounding total entries and total withdrawals do not always match the numbers in the labour force at selected ages.

12.2 Incomes and income tax

The elements of individual and company income and the taxation requirements of a modern welfare state are closely related. Statistics of incomes and income tax are compiled annually by the Department of Statistics. Complete details and methods of compilations are given in the annual statistical report on Incomes and Income Tax of Persons and Incomes and Income Tax of Companies.

Data relating to incomes and income tax of companies can be found in chapter 27, Public sector finance.

These income and income tax statistics have not been adjusted for the effects of inflation and therefore inter-temporal comparisons should be made with caution.

For statistics which have been designed to measure the impact of changes in income, income taxation and consumer prices on wage and salary earners and wage and salary earner households refer to the section on the Real Disposable Index.

Income trends

Persons. The data required for the statistical compilation of incomes are derived from tax returns submitted to the Inland Revenue Department. The tax returns do not become available for a lengthy period after the end of the income year, and this, together with the necessary time required for statistical processing results in a considerable time lag before the final statistics are available for publication.

In Table 12.33 average and median incomes of self-employed persons in selected industries and professions have been estimated from a restricted sample on a provisional basis. The averages and medians are based on total income derived from all sources and not on income from self-employment alone. Incomes of self-employed persons include an element of return on capital invested as well as a reward for personal work effort.

Table 27.33a. INCOMES OF SELF-EMPLOYED PERSONS

Activity of Self-Employed Income EarnerIncome YearIncome Year
1981-821982-831983-841981-821982-831983-84
* Arithmetic mean.
Agriculture and livestock production—Averages* $Medians $
    Dairy farming11,04012,14013,6809,5709,32011,320
    Sheep farming12,63013,82013,75010,7309,89011,110
    Other farming10,63011,26012,6509,1108,11010,190
Manufacturing9,70010,92011,9607,2607,2608,800
Building and construction12,70014,32015,17011,28011,68013,000
Wholesale and retail trade and restaurants and hotels10,33011,22012,0608,2207,8308,860
Transport and storage11,94013,24014,33010,48010,37011,660
Business, community, social, and personal services-
    Legal practitioners38,85036,24043,90035,33032,80037,060
    Chartered accountants29,54033,55034,53026,13027,08028,910
    Medical practitioners (including surgeons, specialists, and physicians)36,29041,14042,10033,91032,27035,900
    Dental practitioners31,65034,11036,75031,00027,29031,050
Other services13,36013,70015,34010,0909,45010,870

Maori income. The most common income group for Maori males in the full-time labour force at the 1981 Census was $10,000-$11,999, the same as for non-Maori males. For Maori females the most common income group, $8,000-$9,999 was also the same as for non-Maori females.

However excluding those with nil income, the median income (point at which half of the incomes are lower and half were higher) was $9,936 for Maori males ($11,975 for non-Maori males). Similarly the median income was lower for Maori females ($6,837) compared to non-Maoris ($7,762). While the income differential can be partly explained in terms of the younger age structure of the Maori workforce, it also results from factors such as lower educational attainment and hence under-representation of Maoris in the higher-paid occupations.

Income of Pacific Island Polynesians. The most common income group for Pacific Island Polynesian males in the full-time labour force was $8,000-$9,999. The most common income group for both Maori male labour force and for the remainder of the male labour force was $10,000-$11,999. The median income for the Polynesian male labour force was also lower ($9,593) than that for either the Maoris ($9,936) or the remainder of the male labour force ($12,068).

For Polynesian females in the full-time labour force the most common income group was $8,000-$9,999, the same as that for Maori females and for the remainder of the female labour force. However, the median income for Pacific Island Polynesian women ($7,342) was higher than that for Maori women ($6,837) and compared with $7,780 for the remainder of the female labour force.

Data on incomes

The broad principle adopted in calculating the assessable income is that any expenditure or loss exclusively incurred in the production of assessable income for any year, may be deducted from the total income from any assessable source for that year. Depreciation is allowed, varying rates for different classes of assets being fixed. The assessable income is approximately equivalent to the net profit as determined by the normal commercial accounting systems after the deduction of special taxation incentive allowances. Before the deduction of these allowances it is, on the whole, rather higher than the commercial net profit, since certain types of expenditure which are regarded as a revenue charge in commercial accounts are not permissible deductions for income tax purposes.

Capital profits are not assessable and capital losses are not deductible.

Classes of taxpayers. “Persons” comprise all assessments for individual persons. Partnership returns are ignored in the compilation, as the individual shares of partnership income are included in the individual partners tax assessments. The incomes of deceased persons' estates are not included, as the greater part of these are transferred to assessments of the beneficiaries.

The 1978-79 Personal Income statistics are based substantially on a 5 percent sample of all incomes of $20,000 and over. For 1979-80 the sample is 4 percent with complete coverage of incomes over $30,000, increased to $40,000 from 1980-81. For 1982-83 the sample consists of 2 percent of salary and wage earners and investment income earners and 12 percent of self-employed persons, with complete coverage from $40,000.

Table 12.34. INCOME OF PERSONS

Income YearNumber of ReturnsTotal IncomeExemptionsRebatesTaxable Incomeincome Tax Assessed
  $ (m)$ (m)$ (m)$ (m)$ (m)
1978-791 685 52011,831.8504.5361.011,328.62,949.3
1979-801 715 96013,788.4569.2232.213,221.03,483.3
1980-811 664 25015,859.2617.1218.315,244.24,165.4
1981-821 711 90019,093.2687.2288.818,408.55,223.4
1982-831 762 85021,704.4733.8347.820,973.65,848.4

A strict comparison of the figures for any year with those of another is not possible, as changes in compilation practice and numerous amendments in income tax law have affected the comparability of the figures.

Incomes of individuals. The following statistics on incomes were compiled from the Census of Population and Dwellings taken on 24 March 1981.

Final data on incomes from the 1981 Census have been randomly rounded. All cell values including row and column totals have been rounded, using simple random rounding, to base three. In some cases, it has been necessary to add rounded figures in order to obtain the required figure. Thus individual figures may not necessarily sum to give the stated total.

The question on incomes in the 1981 Census questionnaire asked for income for the year ended 31 March 1981 from all sources except social security benefits and war pensions (these were the subject of a separate question).

Table 12.35 shows, by income group, usually-resident persons in the full-time labour force and also the total usually-resident population aged 15 years and above. Persons in the labour force but with relatively small incomes for the year ended March 1981 would include considerable numbers of school leavers who began work late in 1980 or early in 1981, as well as persons unemployed but seeking work and those assisting relatives without pay.

Over half (52 percent) of the male full-time labour force had incomes between $8,000 and $15,999, while only 41.2 percent of the female labour force had incomes in this range. The median income for males in the labour force was $11,816 and for females $7,693.

The lower number of hours worked weekly by women appears to be partly responsible for the income differential. Women made up the majority (81.6 percent) of all persons working less than 35 hours per week, and only constituted 34.2 percent of the full-time labour force.

Table 12.35. POPULATION CENSUS 1981: PERSONS IN FULL-TIME LABOUR FORCE

Income GroupPersons in Fulltime Labour Force*Total Population Aged 15 Years and Over*
MalesFemalesTotalMalesFemalesTotal

* New Zealand residents.

†Aged 15 years and over.

              $      
Nil or loss20,04016,69836,738110,835345,225456,060
  1- 1,99925,45833,76859,22994,674213,645308,319
2,000- 4,99942,77171,487114,25575,114144,708219,822
5,000- 9,999209,604178,830388,437230,637209,466440,106
10,000-13,999239,71889,466329,184246,19296,975343,170
14,000-19,999176,58326,160202,740179,98229,250209,238
20,000-24,99955,4194,50659,92856,6045,54462,148
25,000-29,99920,4511,34721,79520,9431,76422,707
30,000-39,99916,5391,07417,61317,0191,52118,543
40,000-59,9999,60059410,1979,85584310,698
60,000 and over6,2163516,5676,3574836,840
Not specified54,20131,44985,65382,134116,925199,056
                 Total876 606455 7331 332 3421 130 3401 166 3642 296 704

Table 12.36 shows 1981 Census incomes data by the sex and employment status of the recipients. They refer to persons 15 years of age and over who are usually resident in New Zealand. Income from social security benefits and war pensions is excluded.

Table 12.36a. POPULATION CENSUS 1981: INCOME BY EMPLOYMENT STATUS

Income GroupEmployment StatusTotal Fulltime Labour Force
Sell-Employed Has EmployeesSell-Employed No EmployeesWage or Salary EarnerRelative Assisting (Unpaid)Unemployed Seeking WorkNot Specified (20 or More Hours Worked)
           $Males
Nil or loss9421,443-31517,19314420,040
  1- 1,9996061,96518,7142613,8378725,458
2,000- 4,9992,3886,30630,0932703,6099942,771
5,000- 9,99910,83021,243173,2292673,771270209,604
10,000-13,99912,69617,886207,6121111,215204239,718
14,000-19,99911,01610,842154,16448408105176,583
20,000-24,9996,5674,64144,05830933355,419
25,000-29,9993,7712,36714,24112422120,451
30,000-39,9995,1902,7128,5899271216,539
40,000-59,9994,1792,0103,378615159,600
60,000 and over3,6481,0411,50636126,216
Not specified2,4903,38441,3011624,2782,58654,201
                 Total64 32975 843696 894148834 4793 573876 606
 Females
Nil or loss513738-1,77013,51216516,698
1- 1,9996991,74626,6881,0233,5318133,768
2,000- 4,9992,0343,82262,2716392,62210271,487
5,000- 9,9994,3475,028166,7494502,148117178,830
10,000-13,9992,4242,15184,2761294473989,466
14,000-19,9991,2841,26323,400120721826,160
20,000-24,9996516003,19848694,506
25,000-29,999309330678273-1,347
30,000-39,99937229436333661,074
40,000-59,9992371801323333594
60,000 and over207666612--351
Not specified9691,07124,4206603,40293631,449
                 Total14 05217 289392 2354 94125 7731446455 733

Table 12.36b. POPULATION CENSUS 1981: INCOME BY EMPLOYMENT STATUScontinued

Income GroupNot in Fulltime Labour ForceTotal Population Aged 15 Years and Over*
RetiredFull-time StudentHousehold Duties (Unpaid)OtherTotal

* New Zealand residents.

           $Males
Nil or loss44,00135,2141,8759,70590,795110,835
1- 1,99942,76823,0766572,70369,21694,674
2,000- 4,99921,7358,5233541,73132,34375,114
5,000- 9,99917,0821,8543241,77321,033230,637
10,000-13,9995,3703241146666,474246,192
14,000-19,9992,94693543003,399179,982
20,000-24,9991,0531815991,18556,604
25,000-29,9994476-3349220,943
30,000-39,999423 -5148017,019
40,000-59,999222--272559,855
60,000 and over11433211416,357
Not specified13,9478,4514865,04927,93382,134
                 Total150 11177 5773 88822 155253 7341 130 340
 Females
Nil or loss50,20237,236232,7738,316328,527345,225
1- 1,99943,86919,062112,4254,524179,877213,645
2,000- 4,99914,9074,95350,8952,47273,221144,708
5,000- 9,9996,93398721,4381,28130,636209,466
10,000-13,9991,7161775,3223007,50996,975
14,000-19,999789692,1421023,09029,250
20,000-24,9992556753211,0385,544
25,000-29,99999-303124171,764
30,000-39,999108332494471,521
40,000-59,9996631746249843
60,000 and over30-993132483
Not specified17,7939,09353,6794,90885,476116,925
                 Total136 77071,574480 32121 963710 6311 166 364

Social security income. Some 43.2 percent (988 404 persons) of the resident population aged 15 years and over were receiving a social security benefit for all or part of the year ended March 1981.

Nearly three-quarters of these people (73.9 percent) were females of whom 53 percent were receiving family benefit only. The family benefit is the smallest regular cash benefit and Table 12.37 shows that females dominate the lower end of social security income distribution.

The most common group for males was $3,000-$3.999 and for females $500-$999 per year. The median social security income for males was $3,188 and for females $959.

Table 12.37. SOCIAL SECURITY INCOME

Social Security Income for Year Ended 31 March 1981MalesDistribution *FemalesDistribution*

* Excluding nil income.

†New Zealand residents aged 15 years and over.

         $No.PercentNo.Percent
    Nil867,318 429,222 
  1- 49925,51210.4170,96124.5
500- 99913,9535.7193,00827.7
1,000-1,99913,5965.647,3676.8
2,000-2,99949,62620.360,9728.8
3,000-3,999104,24442.6140,15720.1
4,000-4,99929,24412.066,7029.6
5,000-5,9995,8412.413,7012.0
6,000 and over2,5651.03,6780.5
Not specified18,441...40,602...
                 Total1 130 340...1 166 364...

12.3 Wages

The rules underlying the New Zealand system of industrial relations have traditionally been embodied in legislation. Details can be found in Section 12.4 Industral relations and working conditions.

Wages in the private sector

The Government has a statutory obligation to convene an annual Tripartite Wage Conference between representatives of the government, and the central organisations of workers and employers in the public and private sectors. This conference is a forum for consultations about two matters:

  1. The economic environment (including Government economic policies) in which the subsequent wage round will proceed.

  2. The position of low-paid workers and the methods by which their interests would be best protected.

The conference may come to conclusions or make recommendations by unanimous agreement. This means that the conference may recommend a guideline figure for the subsequent wage round if it sees fit. However, if agreement is reached on a guideline, this has the status of a guide only, and there is no statutory authority to enforce it.

The process of the negotiation of an award of collective agreement involves the applicant (usually a union) serving a statement of claim on the respondent (usually an employer or group of employers) for an improvement in wages or conditions of work. This then becomes the basis of negotiation between the union and the employer(s). The negotiations are then held, in the presence of an industrial conciliator if the agreement will result in a national award.

Once agreement is reached, it is sent to the Arbitration Court for registration. Once registered, the agreement receives the force of law, and workers and employers are bound to abide by its provisions.

The minimum wage—In 1985, the Minimum Wage Act 1983 was brought into force. This Act authorises the annual determination of the national adult minimum wage by Order-in-Council.

The minimum wage essentially affords protection to the non-unionised sector, which is relatively small and encompasses such groups as domestic workers, gardeners, rest home employees, etc. Earlier practice was to fix it at a level slightly below that determined by the unionised sector for an unskilled adult, having regard also to the level of the unemployment benefit. In recent years the minimum wage attracted general wage increases only and the difference between the minimum wage and levels in the unionised sector widened considerably. However, in 1985 the minimum wage was increased significantly from $100.00 to $170.00 per week.

National awards—For all intents and purposes, the legally enforceable minimum wage rate for the unionised sector is determined by the national awards. These are arrived at by way of the conciliation and arbitration system, and have the effect of automatically binding all workers and employers in the industries to which they relate. The vast majority of awards are negotiated annually. Only occasionally is the Arbitration Court called upon to exercise its arbitral function, and then usually only on one or two clauses in the document. Compliance with award conditions is primarily the responsibility of inspectors of awards who undertake routine inspections of factory and commercial premises, and investigate specific complaints. They also initiate enforcement and recovery actions on behalf of workers in terms of the Industrial Relations Act 1973.

National (or near-national) awards number approximately 400. They are primarily craft/occupation structured, and can extend across many different firms and industries (e.g., the Metal Trades Award, the Clerical Workers Award). Because of the structure of the award system, wage rates are determined almost exclusively on the basis of historic relativity, which produces a high degree of synchronisation in the “award round”. Economic criteria such as ability to pay and productivity are difficult to accommodate in an award which covers firms and industries of quite different economic characteristics. The award movement is important in that it provides the basis for the movement in related ruling rate agreements (although it is noted that in some regions the award rate is the paid rate).

Voluntary collective agreements—In most of the major industries, the main awards are supplemented by what are termed voluntary collective agreements. Such agreements commonly cover an individual employing unit (or group of units in a particular locality) and the workers engaged in the particular craft. Occasionally, the agreement covers a combination of crafts within the employing unit(s) and is referred to as a composite collective agreement. The latter requires the various unions within the undertaking to come together and formulate a common set of claims on the employer.

Strictly speaking, voluntary collective agreements supersede the award, and in this sense prescribe the legally minimum rates of wages for the workers covered. Because they are negotiated under (and registered in terms of) the Industrial Relations Act they are enforceable in the same way as awards. Currently they number approximately 800.

Voluntary collective agreements invariably provide for a margin above the award, and in this sense reflect market conditions (ability to pay, productivity, etc.). However, the movement in the wage rates in many such agreements is primarily determined by the parent award and in this sense market requirements are only partially accommodated.

Informal house agreements—These may simply be expressed in terms of a money margin above the award rate or they may prescribe a comprehensive code of employment. The latter are analogous to voluntary collective agreements, but are not registered under the Industrial Relations Act and are therefore not enforceable in terms of that Act. By their nature, informal house agreements are limited to a single employing unit in an area in which market forces are producing above-award differentials. There is no precise information available as to the extent or nature of such agreements.

Weekly earnings

In the past the Department of Labour has carried out half-yearly surveys of employment and wages in April and October. These surveys were replaced from the beginning of 1980 by an annual employment survey in February and quarterly sample surveys in May, August, and November. For these surveys returns have been required from all establishments in which at least 2 persons (on a full-time equivalent basis) are engaged. This includes working proprietors. Government and local authority employment is included, but not farming, hunting, fishing, waterfront and seagoing work, or domestic service in private households. The armed forces are excluded.

Table 12.38 shows the average weekly payout per person (covering males and females, adult and juvenile) derived from these surveys during recent years.

Table 12.38. WEEKLY EARNINGS

Date of SurveyWeekly Wage Payout per Person*
Average Total Weekly Earnings — All PersonsAverage Ordinary Time Weekly Earnings

* Including allowances and special payments (bonuses, penal and shift allowances, paid leave, and commission).

Source: Department of Labour.

 $    $    
1983—February293.06274.36
             May293.18274.50
             August290.21273.11
             November294.77274.85
1984—February301.60279.33
             May307.23284.33
             August305.07284.51
             November309.11285.91
1985—February322.90296.74
             May335.88309.00
             August335.16311.29
             November P347.52320.89

Hourly earnings. In Table 12.39 average hourly earnings from the half-yearly and later surveys are shown; estimated average ordinary time worked by full-time employees has been obtained by dividing aggregate ordinary-time hours worked during one week by the sum of full-time employees plus half of the part-time employees.

Table 12.39. AVERAGE HOURLY EARNINGS

DateAverage Hourly Earnings for All Workers Covered by SurveyAverage Weekly Hours Paid For All Workers Covered by Survey
Ordinary TimeOvertimeOrdinary Time and Overtime CombinedOrdinary Time Worked by Fulltime EmployeesOvertime, Full-time and Hall-time EmployeesAverage Total Hours Paid For Full-time and Half Part-time Employees Combined
 $$$hourshourshours
1982-November7.279.957.3937.02.038.8
1983-February7.3810.187.5137.22.039.0
    May7.4210.187.5537.02.038.8
    August7.3710.017.4937.11.938.8
    November7.429.937.5537.02.239.0
1984-February7.5010.097.6537.22.439.4
    May7.7010.387.8536.92.439.1
    August7.6710.067.8037.12.339.1
    November7.719.917.8437.12.639.4
1985-February8.0010.738.1737.12.739.5
    May8.3811.278.5536.92.639.3
    August8.4611.248.6136.82.338.9

In Table 12.39 all industries are combined. A dissection by industry groups is available from the annual employment survey made each February, but not from the sample surveys made later in the year.

Table 12.40. AVERAGE WEEKLY HOURS AND EARNINGS BY INDUSTRY: FEBRUARY 1985

Industrial GroupAverage Hourly Earnings For All Workers covered by Annual SurveyAverage Weekly Hours Paid For All Workers Covered by Annual Survey
Ordinary TimeOvertimeOrdinary Time and Overtime CombinedOrdinary Time (Fulltime and Half Part time Employees)Overtime (Fulltime Employees)Average Total Hours Paid For (Full-time and Half Part-time Employees)
 $    $    $    hourshourshours
Forestry and logging7.819.917.9538.22.941.0
Mining and quarrying9.5711.049.7835.36.041.2
Manufacturing
    Seasonal food processing10.4612.6410.7834.86.040.7
    Other food, beverages and tobacco7.039.837.3336.94.941.3
    Textiles, clothing and leather6.398.916.5337.12.339.3
    Wood and wood products7.1310.177.3737.93.441.3
    Paper and paper products, printing and publishing8.9111.689.1936.54.240.6
    Chemicals, petroleum, rubber, and plastics8.4310.558.6237.83.841.5
Non-metallic mineral products7.3910.537.7337.24.641.7
    Metal products and engineering7.7411.268.0937.54.241.7
    Machinery (except electrical)7.6410.937.9137.93.441.2
    Electrical machinery and equipment7.2710.147.4538.02.740.6
    Transport equipment7.7311.077.9836.03.039.0
    Other manufacturing6.829.726.9338.01.539.4
           Subtotal, manufacturing8.0911.208.3936.84.040.7
Electricity, gas, and water8.3711.848.6138.32.941.2
Construction7.6610.507.9438.94.443.2
Wholesale, retail, etc.
    Wholesale trade8.169.838.2238.01.439.3
    Retail trade6.238.906.4135.53.338.1
    Restaurants, hotels, etc.6.118.056.1932.82.534.2
           Subtotal, wholesale, retail, etc.6.899.017.0035.82.437.7
Transport and communication
    Transport and storage (excl. seasonal)8.2811.168.6238.25.343.3
    Seasonal storage and warehousing6.579.236.8136.83.740.4
    Communication7.5511.397.7539.42.241.5
           Subtotal, transport, etc.7.9411.178.2338.71042.5
Financing, insurance, etc.
    Finance8.079.098.0937.40.838.1
    Insurance8.8910.408.9037.60.237.8
    Real estate and business services8.9311.168.9836.10.937.0
           Subtotal, financing, etc.8.5910.338.6336.80.837.5
Community and personal services
  Public administration and defence8.7711.648.8437.81.038.7
    Sanitary services, etc.6.339.266.4532.43.133.8
    Education services9.628.969.6236.90.136.9
    Research and scientific institutes10.4714.1510.5138.00.538.4
    Health services8.5010.658.5438.30.839.0
    Other community services7.699.087.7136.70.637.2
    Recreational and cultural services8.2610.868.3835.12.136.9
    Personal and household services6.359.226.4837.71.939.5
           Subtotal, services8.4910.448.5337.40.938.1
         Total, all surveyed industries8.0010.738.1737.12.739.5

Table 12.41. AVERAGE HOURLY AND WEEKLY WAGE RATES ACROSS ALL SECTORS*

Average OrdinaryPrivate SectorGovernment SectorGovernment Corporation SectorLocal Authority SectorAll Sectors

* At August 1985.

Source: Quarterly Employment Survey, Department of Labour.

Hourly Rate—($/hour)
    Male8.809.9312.3810.299.26
    Female6.637.597.728.717.24
    All Persons7.989.1610.529.478.46
Weekly Earnings—($/week)
    Male326.98379.65479.31390.24347.07
    Female231.76289.24293.97321.90259.18
    All Persons289.42349.75404.55354.49311.29

Minimum wage rates. Enforceable minimum wage rates are determined under various statutes, the most universally applicable being the Minimum Wage Act 1983. This Act provides that workers of 20 years of age and upwards must receive not less than the rates prescribed by Order-in-Council made under the Act. In the great majority of cases, however, workers are subject to wage orders, awards, or industrial agreements relating to the particular industries in which they are employed and which provide somewhat higher enforceable minimum rates.

As from 2 September 1985 the minimum rates for all adult workers (male or female) became $4.25 an hour if paid by the hour or on piecework; $34.00 a day if paid by the day; and $170.00 a week in other cases.

Wage indexes

Nominal weekly wage rates index. The Nominal Weekly Wage Rates Index, measures movements in minimum or mandatory rates of pay fixed by, or within the jurisdiction of, the Arbitration Court or any special industrial tribunal, or determined from time to time by some statutory authority. It covers all full-time adult employees.

A sample of 284 awards and agreements was selected from those within the jurisdiction of the Arbitration Court (Part 1 of the index), with 461 job descriptions being selected from within these awards and agreements. For agreements and determinations within the jurisdiction of other industrial tribunals and determining authorities (Part 2 of the index) 210 job descriptions were selected in the sample.

The awards and agreements covered in Part 1 determine the legal minimum rates of pay. In some cases, particularly with industrial agreements, these reflect actual pay rates, but for the majority of awards this is not the case. On the other hand most of the rates used in Part 2 are mandatory and are therefore the rates actually paid. (A companion index, the Prevailing Weekly Wage Rates Index (refer later) measures movements in actual pay rates.)

The following factors were taken into account in selecting the representative awards and agreements:

  1. Coverage of awards and agreements. In terms of numbers of workers employed, all of the more important awards and agreements are included in the index;

  2. Industrial coverage. A relevant selection of awards and agreements is made for each of the various industry groups covered by the index; and

  3. Geographic coverage. Not all district awards or agreements could be used but a balanced representation of the major industrial districts was obtained.

Within each selected award or agreement, specific job descriptions for which pay rates will be surveyed are carefully selected. Criteria used in the selection process include the numbers employed in the various occupations and typicality of factors such as years of service and qualifications.

Table 12.42 shows the industry and occupation grouping of the index. The industry grouping conforms to the production groups of the New Zealand System of National Accounts, and the occupation groups are major groups of the New Zealand Standard Classification of Occupations.

The use of standard production groups means that the classification is consistent with the National Accounts, the Producers Price Index, and the series of integrated economic censuses.

The index is calculated for rates effective at mid-quarter.

NOTE: Index numbers in Table 12.42 were correct at the time of entry but, because of the incorporation of retrospective increases in wage and salary rates in awards, collective agreements, and determinations, they are subject to later revisions. Accordingly index numbers should be checked against the appropriate table in the latest Monthly Abstract of Statistics, before use.

Table 12.42. NOMINAL WEEKLY WAGE RATES INDEX—ADULT EMPLOYEES*
Base: For each group, average rates ruling for December 1977 Quarter (=1000)

Group1985Dec Year 1985
Mar QuarterJan QuarterSep QuarterDec Quarter

* Comparisons of the index numbers for one grouping of rates with those for other groupings indicate relative movements in average rates in the different groups, not relative levels of average rates of wages and salaries. Because of possible retrospective increases in the wage or salary rates in forthcoming awards, collective agreements or determinations, etc., the more recent index numbers should be treated as provisional.

† This index measures changes in the minimum rates of wages or salaries within the jurisdiction of all wages-and-salary-determining authorities and, as such, combines Parts 1 and 2 of this table.

‡ This series is adjusted for changes in the Consumers Price Index and is therefore an index of gross nominal wage and salary rates in constant dollars. Up to the March 1984 quarter, the series was named the Real Compensation of Employees Index. Refer to the Real Disposable Income Measures and related series for indexes which incorporate the combined effects of income, price and taxation changes.

Part 1—Rates within the Jurisdiction of the Arbitration Court
                          Industry Group
Agriculture2,1792,3782,3782,3822,329
Fishing and hunting2,2642,4242,4242,4252,384
Forestry and logging2,2312,2532,2562,2562,249
Mining and quarrying2,2012,2392,2392,3492,257
Food, beverages, and tobacco2,2822,3172,3172,3242,310
Textiles, apparel, and leather2,2072,2452,2452,2452,236
Wood and wood products2,1622,2462,2542,2632,231
Paper, printing, and publishing2,1802,2522,2602,3212,253
Chemicals, petroleum, and plastics2,1902,2312,2312,2452,224
Non-metallic mineral products2,2092,2862,2862,3392,280
Basic metals2,2592,2602,2602,2662,261
Machinery and metal products2,1302,1422,1422,1652,145
Other manufacturing2,3252,4122,4122,4122,390
Electricity, gas, and water2,1952,2092,2092,2102,206
Construction2,2202,2372,2372,2572,238
Trade, restaurants, and hotels2,2312,2842,2842,2952,274
Transport and storage2,2282,2882,2882,3752,295
Insurance and financing2,1312,2472,2472,3062,233
Community and personal services2,1382,2072,2072,2212,193
Central Government2,2522,2952,2952,3062,287
Local Government2,1332,1772,1772,1772,166
Private non-profit services2,2122,3312,3312,3312,301
                  All industries combined2,1992,2552,2562,2782,247
                          Occupation Group
Professional, technical, and related workers2,2052,2672,2672,2682,252
Administrative and managerial2,1242,2602,2602,2642,228
Clerical and related workers2,2222,2742,2742,2762,262
Sales workers2,2272,2462,2462,2972,254
Service workers2,1952,3392,3392,3392,303
Agriculture, forestry, and fishing2,1782,3702,3702,3702,322
Production and transport2,1872,2282,2292,2592,226
                  All occupations combined2,1982,2552,2562,2782,247
Real Nominal Wage Rates Index935913889877904
Part 2—Rates Prescribed by Other Industrial Tribunals or Determining Authorities
                          Industry Group
Agriculture1984198419842,2912,061
Forestry and logging2,1452,1452,1452,4782,228
Mining and quarrying2,0762,0762,0762,1762,101
Wood and wood products2,0502,0502,0502,3682,130
Paper, printing, and publishing2,0792,0792,0792,4162,163
Chemicals, petroleum, and plastics2,2092,2092,2092,3302,239
Machinery and metal products2,2012,2012,2012,5422,286
Electricity, gas, and water2,0692,0692,0692,4162,156
Construction2,1442,1442,1442,4792,228
Trade, restaurants, and hotels2,1072,1072,1072,4722,198
Transport and storage2,1262,1742,1742,3772,213
Communication2,0572,0572,0572,3782,137
Insurance and financing2,0342,0342,0342,4232,131
Community and personal services2,0332,0332,0332,0482,037
Central Government2,0542,0842,0842,2122,108
                        All industries combined2,0702,0922,0922,2802,134
                              Occupation Group
Professional, technical, and related workers2,0492,0862,0862,1662,097
Administrative and managerial2,0242,0242,0242,4202,123
Clerical and related workers2,0212,0212,0212,3792,110
Sales workers2,1102,1102,1102,4102,185
Service workers2,1312,1312,1312,2142,152
Agriculture, forestry, and fishing2,0802,0802,0802,3892,157
Production and transport2,1742,2012,2012,4752,263
                        All occupations combined2,0702,0922,0922,2802,134
Real Nominal Wage Rates Index880847824878857
Part 3—Rates within the Jurisdication of all Determining Authorities
                          Industry Group
Agriculture2,1752,3702,3702,3802,324
Fishing and hunting2,2642,4242,4242,4252,384
Forestry and logging2,1862,1962,1982,3722,238
Mining and quarrying2,1332,1512,1512,2562,173
Food, beverages, and tobacco2,2822,3172,3172,3242,310
Textiles, apparel, and leather2,2072,2452,2452,2452,236
Wood and wood products2,1602,2442,2522,2642,230
Paper, printing, and publishing2,1752,2432,2502,3262,248
Chemicals, petroleum, and plastics2,1912,2312,2312,2452,224
Non-metallic mineral products2,2092,2862,2862,3392,280
Basic metals2,2592,2602,2602,2662,261
Machinery and metal products2,1352,1462,1462,1912,154
Other manufacturing2,3252,4122,4122,4122,390
Electricity, gas, and water2,1602,1702,1702,2682,192
Construction2,1972,2102,2102,3232,235
Trade, restaurants, and hotels2,2312,2832,2832,2962,273
Transport and storage2,1802,2342,2342,3762,256
Communication2,0572,0572,0572,3782,137
Insurance and financing2,1082,1962,1962,3342,208
Community and personal services2,1212,1802,1802,1942,169
Central Government2,0662,0962,0962,2182,119
Local Government2,1332,1772,1772,1772,166
Private non-profit services2,2122,3312,3312,3312,301
                  All industries combined2,1512,1952,1952,2792,205
                          Occupation Group
Professional, technical, and related workers2,0702,1102,1102,1802,118
Administrative and managerial2,0572,1012,1012,3692,158
Clerical and related workers2,1342,1632,1632,3212,196
Sales workers2,2232,2422,2422,3012,252
Service workers2,1732,2662,2662,2952,250
Agriculture, forestry, and fishing2,1602,3182,3182,3732,292
Production and transport2,1852,2242,2252,2912,232
                  All occupations combined2,1502,1952,1952,2792,205
Real Nominal Wage Rates Index914888865878886

Prevailing Weekly Wage Rates Index. A new series of wage rate indexes was released by the Department of Statistics in March 1980. Known as the Prevailing Weekly Wage Rates Index, this series measures the movements in the overall level of prevailing or actual rates of pay for all adult employees whose minimum or mandatory rates of pay are fixed by or within the jurisdiction of the Arbitration Court or any special industrial tribunal, or determined from time to time by some statutory authority, and includes house agreements registered with the Court.

This index has the same weighting pattern and coverage of awards and agreements as the Nominal Weekly Wage Rates Index (see previous pages). It is possible, therefore, to compare the 2 series so as to measure “wage drift”.

As the same wage rates are used in part 2 of the Prevailing Weekly Wage Rates Index and part 2 of the Nominal Weekly Wage Rates Index, the index numbers for the two are identical.

The pay rates surveyed for the index are those actually paid to the employees engaged in the selected occupations and are measured at the payday for the period which includes the 15th day of the mid-month of the quarter.

As with the Nominal Weekly Wage Rates Index, the Prevailing Weekly Wage Rates Indexes for more recent quarters are subject to later revision resulting from any backdating of awards, agreements, and determinations.

Table 12.43. PREVAILING WEEKLY WAGE RATES INDEX—ADULT EMPLOYEES*
Base: For each group, average rates prevailing for December 1977 Quarter (= 1000)

Group1985Dec Year 1985
Mar QuarterJun QuarterSep QuarterDec Quarter

* Comparisons of index numbers for one grouping of rates with those for other groupings indicate relative movements in average rates in the different groups, not relative levels of average rates of wages and salaries.

† This index measures changes in the overall level of prevailing (actual) rates of pay of all adult employees within the jurisdiction of all wage and salary determining authorities, and as such combines parts 1 and 2 of this table.

‡ This series is adjusted for changes in the Consumers Price Index and is therefore an index of gross prevailing wage and salary rates in constant dollars. Up to the December 1983 quarter the series was named the Real Compensation of Employees Index. Refer to the Real Disposable Income Measures and related series for indexes which incorporate the combined effects of income, price and taxation changes.

Part 1—Rates within the Jurisdiction of the Arbitration Court
                          Industry Group
Agriculture2,2612,4892,4952,5682,453
Fishing and hunting2,1112,2482,2482,2562,216
Forestry and logging2,2232,3262,3272,3682,311
Mining and quarrying2,2452,2952,3082,4742,330
Food, beverages, and tobacco2,2262,2642,2672,2972,264
Textiles, apparel, and leather2,2062,2572,2622,2732,250
Wood and wood products2,1962,2862,3062,3542,286
Paper, printing, and publishing2,2352,3192,3412,4222,329
Chemicals, petroleum and plastics2,2362,3082,3172,4022,316
Non-metallic mineral products2,3172,4062,4262,5142,416
Basic metals2,2752,3072,3182,4452,336
Machinery and metal products2,2252,2722,2952,4582,313
Other manufacturing2,2382,3122,3492,3662,316
Electricity, gas, and water2,2082,2292,2532,4212,278
Construction2,2602,2922,3062,3952,313
Trade, restaurants, and hotels2,2382,3022,3152,3522,302
Transport and storage2,2382,2992,3092,4222,317
Insurance and financing2,1352,2552,2752,3762,260
Community and personal services2,1852,2792,2942,3492,277
Central Government2,2752,3212,3342,4552,346
Local Government2,1372,1812,1822,3132,203
Private non-profit services2,2482,3522,3492,4012,338
                  All industries combined2,2242,2942,3072,3842,302
                          Occupation Group
Professional, technical, and related workers2,2252,3062,3162,4142,318
Administrative and managerial2,1382,2782,2772,3872,272
Clerical and related workers2,2132,2842,3052,3712,294
Sales workers2,2302,2592,2712,3322,273
Service workers2,2162,3482,3532,3822,324
Agriculture, forestry, and fishing2,2482,4702,4762,5332,432
Production and transport2,2192,2772,2902,3802,293
                  All occupations combined2,2202,2942,3072,3842,302
Real Prevailing Wage Rates Index—All Groups944928909918925
Part 2—Rates Prescribed by Other Industrial Tribunals or Determining Authorities
                              Industry Group
Agriculture1984198419842,1432,024
Forestry and logging2,1452,1452,1452,2112,162
Mining and quarrying2,0762,0762,0762,1272,089
Wood and wood products2,0502,0502,0502,1742,081
Paper, printing, and publishing2,0792,0792,0792,2402,119
Chemicals, petroleum, and plastics2,2092,2092,2092,2412,217
Machinery and metal products2,2012,2012,2012,2422,211
Electricity, gas and water2,0692,0692,0692,2352,110
Construction2,1442,1442,1442,2632,174
Trade, restaurants and hotels2,1072,1072,1072,2252,136
Transport and storage2,1262,1742,1742,2012,169
Communication2,0572,0572,0572,2212,098
Insurance and financing2,0342,0342,0342,1952,074
Community and personal services2,0332,0332,0332,1762,069
Central Government2,0542,0822,0822,2602,120
                  All industries combined2,0702,0912,0912,2442,124
                          Occupation Group
Professional, technical, and related workers2,0492,0842,0842,2582,119
Administrative and managerial2,0242,0242,0242,2112,071
Clerical and related workers2,0212,0212,0212,1742,059
Sales workers2,1102,1102,1102,2672,149
Service workers2,1312,1312,1312,2902,171
Agriculture, forestry, and fishing2,0802,0802,0802,1952,109
Production and transport2,1742,2012,2012,2922,217
                  All occupations combined2,0702,0912,0912,2442,124
Real Prevailing Wage Rates Index—All Groups;880846824864854
Part 3—Rates Within the Jurisdiction of ail Determining Authorities
                              Industry Group
Agriculture2,2562,4802,4862,5602,246
Fishing and hunting2,1112,2482,2482,2562,216
Forestry and logging2,1832,2332,2342,2872,234
Mining and quarrying2,1552,1792,1852,2902,202
Food, beverages, and tobacco2,2262,2642,2672,2972,264
Textiles, apparel, and leather2,2062,2572,2622,2732,250
Wood and wood products2,1942,2832,3032,3522,283
Paper, printing, and publishing2,2272,3062,3272,4122,318
Chemicals, petroleum, and plastics2,2362,3082,3172,4022,316
Non-metallic mineral products2,3172,4062,4262,5142,416
Basic metals2,2752,3072,3182,4452,336
Machinery and metal products2,2252,2682,2892,4442,306
Other manufacturing2,2382,3122,3492,3662,316
Electricity, gas, and water2,1692,1842,2022,3692,231
Construction2,2262,2492,2592,3572,273
Trade, restaurants, and hotels2,2382,3012,3142,3512,301
Transport and storage2,1862,2412,2462,3202,248
Communication2,0572,0572,0572,2212,098
Insurance and financing2,1122,2052,2212,3352,218
Community and personal services2,1622,2422,2552,3232,246
Central Government2,0672,0962,0962,2722,133
Local Government2,1372,1812,1822,3132,203
Private non-profit services2,2482,3522,3492,4012,338
                  All industries combined2,1692,2222,2302,3342,239
                              Occupation Group
Professional, technical, and related workers2,0732,1132,1152,2792,145
Administrative and managerial2,0622,1082,1072,2692,137
Clerical and related workers2,1312,1712,1832,2872,193
Sales workers2,2262,2542,2662,3302,269
Service workers2,1862,2722,2762,3502,271
Agriculture, forestry, and fishing2,2202,4052,4102,4772,378
Production and transport2,2122,2672,2772,3672,282
                  All occupations combined2,1672,2222,2302,3342,239
Real Prevailing Wage Rates Index—All Groups;922899878899900

Real (effective) wage rates indexes. The Nominal and Prevailing Weekly Wage Rates Indexes measure changes in gross dollar wages. They are not adjusted for changes in the purchasing power of the earned dollars. Indexes which are adjusted in this way are termed 'real' or 'effective' indexes.

Real Nominal and Real Prevailing Weekly Wage Rates Indexes are prepared by adjusting the original wage indexes for changes in the Consumers Price Index (CPI). The CPI is first brought to a common expression base with the wage indexes (December 1977 quarter = 1000). Each wage index number is then divided by the CPI index for the corresponding quarter and multiplied by the base value of 1000. The resultant series is an indicator of the change in gross nominal or prevailing wage and salary rates in constant dollars.

Table 12.44. WAGES RATES
Base: December 1977 Quarter (= 1000)

Year Ended DecemberConsumer Prices (All Groups)Nominal Weekly Wage Rates—Adults*Prevailing Weekly Wage Rates—Adult Employees
ActualRealActualReal

* Prior to 1978 refers to adult males only.

19746186571063  
19757087471055....
19768288351008....
19779479491002....
197810601077101610821021
197912061246103412541040
198014121474104414861052
198116291760108017721087
198218931968104119861051
19832,03219749721994982
19842,1512,0209382,037945

The long-term series of consumer prices required for Table 12.44 has been obtained by linking together the successive series of the Consumers Price Index and converting the whole to the base: December 1977 quarter (= 1000).

In making use of these results it should not be overlooked that the index numbers of nominal rates apply only to full-time employment at award or mandatory rates of pay. They do not take into account above-award rates, overtime earnings, short-time deductions. The index numbers of prevailing weekly wage rates, on the other hand, are based on the actual rates of pay of employees in the selected job descriptions. The Consumers Price Index does not reflect or recognise all classes of household expenditure. For example, income tax, charitable and other gifts, and domestic help are omitted (see chapter 25).

Real disposable income

The Real Disposable Income Series and related measures have been calculated from the March 1980 quarter and were first published in December 1982. The initial impetus for the development of the series was the report of the 1978 Consumers Price Index Revision Advisory Committee which recommended that the Department of Statistics investigate the measurement of the impact of taxation on the purchasing power of household income.

The Real Disposable Income Series are produced using a personal income-tax-incidence modelling system developed within the department (ASSET—A Simulation System for Evaluating Taxation). The parameters of the tax schedule are obtained from income tax legislation. The model uses information on incomes and other tax-related characteristics of individuals in a representative sample of New Zealand private households from the Department of Statistics' Household Expenditure and Income Survey (HEIS). The series was initially based on the 1981-82 HEIS.

In 1985 a revision of these series was undertaken in order to introduce a more up-to-date database; that from the 1983-84 HEIS. The more detailed tax-related information in the 1983-84 HEIS enabled more precise determinations of eligibility for benefits, such as Family Care, and for tax rebates to be made.

Gross incomes from all sources are used in the calculation of the real disposable income indexes, including wages and salaries, taxable self-employment income, rent, interest, dividends, social welfare benefits and national superannuation.

The various income components for each individual in the database are separately adjusted each quarter to current levels. Refinements in the data and methods used for these projections were made during the 1985 revision. The most important indicator used is the average total weekly earnings data for each major industry group, obtained from the Department of Labour's Quarterly Employment Survey. It should be noted that no data on movements for different income levels and occupations within industries is available and hence salary and wage earnings for all individuals employed in the same industry are adjusted by the same factor.

The Real Disposable income Series and related measures refer to the mid-points of each quarter and comprise the following.

Real disposable income indexes—measure quarterly changes in the after-tax purchasing power of gross incomes. They are calculated by adjusting gross incomes for income tax and then for inflation as measured by the Consumers Price Index.

Average gross income indexes—measure the changing level of gross incomes from all sources. There is no adjustment for changes in the purchasing power of the dollar between periods.

Average tax rates—express total personal income tax liability in dollar terms as a proportion of total gross income, it should be noted that the average tax rates series before and after the 1985 revision cannot be compared as they relate to data bases derived from 2 different HEIS samples.

Coverage of the indexes—The series are calculated for all full-time wage and salary earners. Full-time wage and salary earners are defined as persons working for 30 or more hours per week for wages and/or salaries and whose principal source of income is wages and/or salaries.

Five sub-series are produced for one-fifth fractions of the population of full-time wage and salary earners ranked by total income. These are the highest 20 percent of full-time wage and salary earners (the 20 percent whose incomes from all sources are the highest), the second highest 20 percent and so on down to the lowest 20 percent. Only series for the highest, middle and lowest one-fifth fractions are shown in the following tables and graph.

Series for the households of full-time wage and salary earners and for national superannuation payments are also produced by the Department of Statistics. These series and further information are available in the Monthly Abstract of Statistics.

The expression base for all indexes in these series continues to be the year ended 31 March 1981 (= 1000). Commencing with the movement between the March 1985 and June 1985 quarters, the series is calculated on the new database (1983-84 HEIS). For user convenience the series is then linked to the original series at the March 1985 quarter.

Table 12.45. INCOME DISTRIBUTION OF FULL-TIME WAGE AND SALARY EARNERS

PeriodLowest 20 PercentMiddle 20 PercentHighest 20 PercentAll Full-time Wage and Salary Earners
Index NumberAnnual Percentage ChangeIndex NumberAnnual Percentage ChangeIndex NumberAnnual Percentage ChangeIndex NumberAnnual Percentage Change

* To calculate these indexes gross incomes are first adjusted for income tax liability and them for inflation as measured by the Consumers Price Index. The series therefore measure quarterly changes in the after-tax purchasing power of gross incomes.

† These indexes measure the changing level of gross income from all sources.

‡ For each group of taxpayers, total personal income tax liability is expressed as a proportion of total gross income from all sources.

Real Disposable Income Indexes*
1983—Dec957-0.7967-0.61052-1.6997-1.1
1984—Mar966-0.5977-0.31066-1.01010-0.7
            Jun9730.99740.21052-1.71004-0.5
            Sep942-0.6943-1.41016-3.5971-2.1
            Dec924x-3.4x924-4.4999-5.0953-4.4
1985—Mar946-2.1911-6.8984-7.7945-6.4
            Jun931-4.3896-8.0961-8.7926-7.8
            SepP907-3.7876-7.1938-7.7905-6.8
Average Gross Income Indexes
1983—Dec13742.713792.513892.413832.4
1984—Mar14043.014122.914252.914182.9
            Jun14506.214435.314394.114444.9
            Sep14466.914375.914314.714365.5
            Dec14646.614585.714595.014605.6
1985—Mar155210.515268.115317.415328.0
            Jun161411.3159110.3160211.3159910.7
            SepP161811.9159911.3161012.5160611.8
Average Tax Rates
 PercentagePercentagePercentagePercentage
1983—Jun16.024.030.425.8
            Sep15.923.930.325.6
            Dec15.623.530.825.7
1934—Mar16.023.931.226.1
            Jun16.424.231.326.2
            Sep16.324.131.226.1
            Dec16.424.3x31.526.4
1985—Mar15.725.632.927.4
Average tax rates above and below this line relate to different database samples. The series is therefore discontinued at this point.
1985—Jun17.925.733.227.6
            SepP17.925.833.327.7

12.4 Industrial relations and working conditions

In both the private and public sectors, statutes confer bargaining rights on certain registered/recognised unions and specify various procedures for the conduct of negotiations.

In the private sector, the main body of rules covering industrial relations is contained in the Industrial Relations Act 1973. By a process of registration, unions secure bargaining rights for the class of workers they represent, and also access to various procedures for the settlement of disputes associated with the renegotiation of the collective agreement (dispute of interest) and its interpretation or application (dispute of right).

The emphasis in respect of disputes of right is on their peaceful resolution, and accordingly the process of arbitration is rather more in evidence. A dispute proceeds through a disputes committee chaired by an independent person who may either make a decision, or refer the matter to the Arbitration Court for a decision in the event of the parties failing to agree.

Amendments to the Industrial Relations Act in 1984 brought about major changes to the settlement of disputes associated with the renegotiation of the collective agreement (disputes of interest).

In the case of disputes of interest the amendments introduced two major changes to the conciliation procedures.

  1. Changes to procedures: When a dispute is not settled in conciliation one of two things can happen. The parties may agree to refer the dispute to the Court for arbitration. If this does not happen, then the conciliator adjourns the conciliation council and makes a report to the Court. Once the council is adjourned, neither party may withdraw from the proceedings. Following the conciliator's report, the Court will call the parties to an informal meeting, at which the parties may make submissions, to determine the most appropriate way of resolving the dispute.

    The options open to the Court are:

    1. referring the dispute to a mediator;

    2. referring the parties back to conciliation;

    3. consulting the central organisations with a view to ascertaining whether they could assist in resolving the dispute; and

    4. arbitrating, if the parties so agree.

    If these measures are not successful in resolving the dispute, the parties are required to report this to the Court, which shall then deem the dispute to be withdrawn and dissolve the conciliation council.

  2. Voluntary arbitration: Before a dispute can be sent to the Arbitration Court for settlement both parties must agree for it to be arbitrated on. This contrasts with the previous system where the applicant party (usually the union) could decide on its own whether the dispute went to arbitration, or whether the claims were withdrawn, after which industrial action could take place.

Separate enactments cover bargaining relationships in the agriculture sector, on the waterfront, and in aircrew services. In the public sector, the principal enactment covering collective bargaining is the State Services Conditions of Employment Act 1977. This Act provides for the recognition of service organisations, and specifies various procedures for the issuing of determinations prescribing conditions of employment in the State Services and for the resolution of disputes associated with the application of determinations. The procedures are essentially designed to guarantee the union bargaining rights in respect of the issue of determinations. A Police Staff Tribunal, established by the Police Act 1958, makes orders as to the remuneration and conditions of service of the members of the Police.

Pay fixing in the State Services is linked to the private sector by way of the principle of fair comparability. White collar groups move in relation to the average surveyed movement in the private sector. Blue collar groups (including trades groups) currently have their rates adjusted by the movement in the main private sector trades awards, supplemented by detailed pay research exercises.

Wage-fixing institutions

Arbitration Court. The Arbitration Court has the broad responsibility for the registering of settlements as collective agreements, the making of awards, and the settlement of disputes of right referred to it under the Act.

The court attempts, by means of a common membership, to achieve consistency in the decisions of the various wage-fixing tribunals, e.g., public sector, waterfront, aircrew, agricultural.

The constitution of the court varies according to the matters before it and the wishes of the parties. The full court comprises 5 persons: 1 judge and 2 sets of members, nominated by the Employers' Federation and the Federation of Labour. The full court is limited to hearing disputes of interest and then only at the request of one or both of the parties. In all other circumstances, the court comprises 3 persons: being 1 judge and 1 set of nominated members. An establishment of 3 judges (with jurisdiction over other wage-fixing tribunals) together with 2 sets of nominated members creates the possibility of 2 courts and 1 tribunal (or 1 court and 2 tribunals) sitting simultaneously. There is also provision for the appointment of a temporary court.

The specific functions of the Arbitration Court are to:

  1. Hear and determine any question connected with the construction of any award or collective agreement;

  2. Hear and determine any question connected with the construction of the Industrial Relations Act or any Act relating to industrial matters;

  3. Make an order determining the rights of parties under any award or collective agreement;

  4. Order compliance with any award or collective agreement;

  5. Make an order determining the validity of any award or collective agreement (this power was not in the 1973 Act and is designed to cope with situations in which a union negotiates an agreement which covers workers who are not covered by its membership rule);

  6. Hear and determine enforcement and recovery actions;

  7. Hear and determine appeals from disputes committees;

  8. Hear and determine matters referred to the court relating to the grievance procedure;

  9. Hear and determine questions relating to the registration and jurisdiction of unions; and

  10. Inquire into and determine questions relating to disputed elections.

Industrial Conciliation Service. The New Zealand system of industrial relations has historically been governed by a formal system of conciliation and arbitration, and the Industrial Conciliation Service has long been an integral part of that system.

The service consists of conciliators appointed by the Governor-General on the recommendation of the Minister. The conciliator acts to convene conciliation councils for the hearing of disputes of interest, and to take any other steps considered advisable in reaching fair and amicable voluntary settlements of such disputes. More specifically, a conciliator sets dates for the hearing of disputes, appoints assessors to constitute the council, and calls or strikes out parties to a dispute. He or she is also responsible for recording and reporting the procedures of a conciliation to the Court and referring unsettled disputes to the Court for determination.

In practice the conciliator has 2 roles. During the formal proceedings he or she chairs the meetings; that is, occasionally calling the council to order, ensuring that they stick to the topic, and suggesting the time for a break in the formal proceedings. It is during the break in formal proceedings that the conciliator acts as a link between the parties, assists them in moving to common ground, and above all, ensures that the negotiations keep going.

Industrial Mediation Service. The mediation service is relatively new to the industrial relations scene. It was established in 1970 by an amendment to the Industrial Conciliation and Arbitration Act (forerunner to the Industrial Relations Act 1973).

The service consists of mediators appointed by the Governor-General on the recommendation of the Minister after consultation with the central organisations. A mediator acts to assist employers, unions, and workers to carry out their responsibilities to establish and maintain harmonious industrial relations. The mediator has no power to impose his or her services on the parties to a dispute and may merely offer assistance. With the agreement of the parties, however, he or she may decide issues referred to him or her. The mediator is involved in a dispute of interest only when it has been referred to the Service by the Arbitration Court after conciliation has broken down.

Once involved in a dispute, the mediator's approach is a flexible one. The objective is to assist the parties in arriving at a settlement themselves. This involves getting the parties talking to one another, and keeping them talking. In certain circumstances, it might be appropriate for the mediator to request that the Minister appoint a compulsory conference, perhaps chaired by the mediator with decision-making powers. At other times, it might be appropriate to get the parties together in an informal way as a prelude to more formal discussions.

Industrial Relations Council. This is an advisory body comprising representatives at the national level of employer organisations, worker organisations, and the Government, under the chairmanship of the Minister of Labour. The council provides permanent machinery for tripartite consultation on industrial affairs. Some specific matters to which the council gives consideration are: the formulation and implementation of manpower policies; the formulation of codes of practice relating to industrial relations; and ways and means of improving industrial relations, industrial organisations, and industrial welfare. Various sub-committees have been formed to consider a range of policy issues.

The council went into recess in August 1979 after the Federation of Labour withdrew in protest at the repeal of the General Wage Orders Act 1977, and the introduction of the Remuneration Bill by the Government.

Unions of workers

Registration of unions. Fundamental to the New Zealand system of industrial relations is the voluntary registration of industrial unions, and industrial associations, of workers under the Industrial Relations Act 1973. Under this Act the process of registration is essentially a matter between applicant society and the Registrar of Industrial Unions. The Registrar, in considering an application for registration, applies the following tests:

  1. Whether the society is a bona fide trade union, i.e., whether it has been formed for the purposes of protecting or furthering the interests of workers;

  2. Whether it will be properly and democratically run. Certain minimum requirements are specified for inclusion in the rules of unions, concerning such matters as the election and removal of officers, the conduct of meetings, the keeping of financial records, and the fixing of levies;

  3. Whether a commonality of interest exists between the workers to be covered (the workers must be engaged in the same industry or in a related industry);

  4. Whether the society complies with the minimum size requirements. The numbers are not onerous. For a union covering a single district, the “prime” minimum is 30. If this is not met, then the requirements are satisfied if the society represents more than 50 percent of workers in the industry, providing that this is not less than the absolute minimum of 10. For a national union, the prime minimum is 120 and the absolute minimum is 40;

  5. Whether the members of the applicant society could conveniently belong to an existing union. It is this test that protects the coverage of the existing union and militates against undue proliferation. The Registrar's decision (either way) is appealable to the Arbitration Court.

Once registered, the ability of the union to extend its membership coverage is constrained by the “commonality of interest” requirement, set out in paragraph (c) and by the protection afforded to the coverage of other registered unions.

Amalgamation of unions. In the case of an amalgamation, 2 or more unions connected with the same industry may amalgamate either:

  1. By 1 union seeking an amendment to its rules to include within its membership those in the other union or unions (i.e., amalgamation by takeover); or

  2. By an application being made by 2 or more unions to the Registrar for the registration of 1 new union in their stead.

In either case, the decision to apply for amalgamation can be made by agreement between the executives of the unions concerned. The key tests the Registrar applies are:

  1. Whether a commonality of interest exists between the workers to be covered by the unions to be amalgamated (i.e., whether they are employed in the same, or a related, industry); and

  2. Whether there is membership support for the amalgamation. A ballot is held in the event of a specified number of the members of the affected unions objecting.

Cancellation of registration. A union's registration can be cancelled in the following circumstances. The formation of a multi-district union, or other amalgamation of unions, results in the cancellation of the registration of the original unions. Otherwise, the Registrar can cancel the registration of a union if it applies voluntarily (he/she must be satisfied that this is desired by the majority of members); if its membership falls below the required minimum (the union is given 3 months notice); or if it becomes defunct. The Minister of Labour also has the power to deregister a union in certain circumstances. It is comparatively rare, however, for a union to lose its registration in this way.

Profile of worker unions. Unions are primarily based on the occupation of workers rather than on the industry in which they are employed. Some unions cover occupations which extend across a large number of industries (e.g. clerical workers, drivers), whereas others are industry specific (e.g. meat workers, seamen).

The size of worker unions ranges from the New Zealand Engineers' Union with over 51 000 members down to the Taranaki Gut Strings Workers Union, the Westland Gold Dredge and Alluvial Mines Employees Union, and the Wellington Match Manufacturing Employees Union, all with only 10 members each.

Table 12.46. PROFILE OF WORKERS' UNIONS

 As at 31 December 1984
No. of unions registered239
No. of workers485,484
Average size2,031
Percentage of unions with more than 5000 members12.1
Percentage total of membership covered by unions with more than 5000 members71.9
Percentage of unions with less than 100 members24.7
Percentage total of membership covered by unions with less than 100 members0.6
National unions28

Union associations. For negotiating purposes, it is common for unions with a like occupational coverage to come together and register under the Industrial Relations Act as industrial associations. At the end of 1984, 20 such associations were registered, with 111 affiliates or nearly half of all registered unions.

Compulsory union membership. Legislation enacted in 1985 now provides for a system of union-based ballots to determine the insertion of a union membership clause, making it obligatory for workers bound by awards or collective agreements negotiated by that union, and who are 18 years of age or over, or receiving the adult rate, to become members of that union. The right to secure compulsory membership is therefore now by ballot of all union members.

The new legislation is now more comprehensive, and union membership arrangements have been standardised over all sectors of employment, apart from those public sector unions which already had voluntary membership before the advent of voluntary unionism, which applied for 17 months in 1984/85. The new legislation now provides for the following:

  1. As a transitional measure there is a statutory insertion of the union membership clause into awards or collective agreements negotiated under the Industrial Relations Act 1973 that previously had unqualified preference, agreements negotiated during the period of voluntary unionism and any new agreements negotiated during the transitional period. This insertion is for 18 months after enactment (31 December 1986) or until the union holds a ballot, whichever is sooner. (Corresponding arrangements have been made in other statutes, where appropriate.) As at 31 December 1985, ballots involving 9 unions had been completed. The results were all in favour of insertion of the union membership clause, the average percentage of valid votes recorded in favour, being just over 78 percent.

  2. After 2 years, but within 3 years, from the date of the first ballot, subsequent ballots may be held to retain or to restore the union membership clause. If no ballot is held, the union membership clause is lost. In this case, or if a union collectively decides against the insertion of the union membership clause, individual choice would be exercised on the question of union membership.

  3. Ballots are meeting-based, secret ballots. There is no provision for postal ballots, though there is a provision for special votes to be cast, with union approval, in specified circumstances. There are also provisions to ensure the ballots, run by the union, but supervised by the Department of Labour, are democratically conducted.

  4. There are suitable procedures and provisions to enable a person to object, to the requirement to join a union, and a new body, the Union Membership Exemption Tribunal, has been established to examine applications for exemption. Grounds for exemption are described as genuine objection on the grounds of conscience or other deeply held personal conviction to becoming or remaining a member of any union whatsoever, or of a particular union. The exemption, once granted, is for life. Unions do have the opportunity to object to any applications, and they may instigate rehearings on any application on specified grounds of irregularity, new material or initial error or where a worker's employment and union changes. The applicant may have legal representation or assistance on such occasions.

  5. There is also a discrimination provision making it an offence for employers or unions to discriminate on the basis of union membership or non-membership of a union, other than by the lawful insertion and operation of a union membership clause. There is also a provision disallowing the conferring of benefits on workers by reason of their union membership or nonunion membership. Finally, statutory power of enforcement of the union membership clause is the responsibility of the union.

Table 12.47. UNIONS OF WORKERS

Industrial Group198219831984
UnionsMembersUnionsMembersUnionsMembers
Agriculture, hunting, forestry, and fishing516 967517 434514 043
Mining and quarrying332433493340
Manufacturing
    Food, beverages, and tobacco3452,4583253,2083252,652
    Textiles, wearing apparel, leather1925,7021823,9131823,187
    Wood and wood products818,295817,101816,602
    Paper and paper products, printing, and publishing718,400619,121618,271
    Chemicals, petroleum, coal, rubber and plastics104,09693,50793,565
    Non-metallic mineral products359046364544
    Basic metals industries339144844465
    Fabricated metal products, machinery and equipment1458,6521357,6921357,860
    Other manufacturing industries532552605260
        Total, manufacturing103178 90999175 92299173 406
Electricity, gas and water143141140
Building and construction1147 985748 219747 763
Wholesale and retail trade, restaurants and hotels26107 67525107 2452096 517
Transport, storage and communication4849 3525049 1454746 452
Financing, insurance, real estate and business services2077 4852179 1052164 089
Community, social and personal services and business services
    Public administration1020,4451021,7391019,638
    Sanitary and similar services513,779514,310511,872
    Social and related community services56,86867,77157,335
    Recreational services114,742114,339113,796
    Personal and household services73,22351,92652,179
        Total, community, social and personal services3849 0573750 085b3644 820
        Total, all industries255527 797248527 545239487 470

NOTE: Where the members of a union are employed in more than one industry, they have been classified in the predominant industry for the union concerned.

Table 12.48. INDUSTRIAL UNIONS OF WORKERS BY MEMBERSHIP

At 31 DecemberUnder 100100-199200-299300-499500-9991 000-1 9992 000-2 9993 000-4 9995 000-9 99910 000 and OverTotal
Number of Unions
19807029192438321591613265
19817025202240321171615258
19826531172437281571516255
19836228202433291381615248
19846527191633331161613239
Membership
19803,4094,0474,6149,41426,02844,88835,69535,512115,723236,967516,297
19813,3063,4194,7268,39328,50747,32726,83924,374112,531260,283519,705
19823,0124,3534,0629,48625,98140,13034,95324,509101,521279,790527,797
19832,6573,8554,7559,72122,36941,10730,20328,226114,344270,308527,545
19843,0993,9274,5846,57822,49447,74426,20023,656112,895236,293487,470

New Zealand Federation of Labour is an unregistered organisation which was formed in 1937. One hundred and fifty-five unions are affiliated with a combined coverage of approximately 430 000 workers.

The formulation of policy and the election of the National Executive, which administers the day-today running of the federation, occurs at the annual conference. This is attended by delegates of the affiliated unions or societies who exercise votes according to paid up membership. The regional organisation of the federation consists of 21 Trades or District Councils (which must have not less than 5 organisations affiliated to the federation with a combined local membership of not less than 3000) and 2 trade union committees (which are formed if the combined local membership is less than 3000 but not less than 1000). The Trades Councils have the function of implementing, in their districts, the policy determined by the National Conference. Occasionally they get involved in co-ordinating union activity in respect of a particular dispute in their district, and may act as advocates for the various unions.

Liaison between the Trades Councils and the National Executive is achieved through the National Council. This consists of the National Executive plus one representative from each of the Trades Councils. The National Council also decides on matters of Trades Council recognition and jurisdiction, and acts as the head authority for the implementation of policy between conferences.

Day-to-day policy decisions are made by the National Executive. This is made up of the president, vice-president, secretary and 8 executive members. All members of the National Executive are elected by the annual conference.

Unions of employers

The Industrial Relations Act 1973 makes essentially the same provisions for the registration and amalgamation of employer unions as for workers' unions. However, registration as an employer union is in no way a pre-requisite to the right to negotiate under the Act, as individual employers, unionised and otherwise, can and do negotiate with unions on a variety of matters under the Act.

Table 12.49. PROFILE OF EMPLOYERS' UNIONS

 As at 31 December 1984
Number of unions registered222
Number of members39,771
Average size179
National unions72

As with workers' unions, the Act allows for the formation of industrial associations of employers to which 2 or more employer unions in the same industry or related industries can affiliate. There were 15 of these as at 31 December 1984.

Generally industrial unions and industrial associations of employers have become registered simply to comply with the formalities of the wage-fixing system and are not always active beyond this. Usually, employers' support for and involvement with their employers' association on trade organisation is more than for their industrial union or association. Unlike worker unions, membership of employer unions is entirely voluntary.

New Zealand Employers Federation. Most employer activity is co-ordinated by the New Zealand Employers' Federation. This body represents and promotes at a central level the interests and actions of employers with regard to industrial relations and employment related matters.

The federation was established in 1902 to co-ordinate the views of employers on a centralised basis. Approximately 12 000 employers employing in excess of 600 000 workers are affiliated to the federation. This means that approximately a quarter to a third of all employers are directly affiliated, although in addition a large number would have links to the federation through their membership of another organisation (e.g., Retailers' Federation).

The federation is essentially an organisation of organisations. Direct membership is through the 4 regional associations, which are themselves autonomous organisations, although their rules and constitution must be consistent with those of the federation itself. Responsibility for the federation's policy and management rests with the 43 members of the National Executive. This body consists of 12 members appointed by the 4 regional divisions, 20 representatives of specified employer sectors, 4 persons elected by members of the General Council, the presidents of the Manufacturers' Federation,

Federated Farmers, and the Associated Chambers of Commerce, and the national president of the federation together with the vice-president and executive director. The administration of the federation is the responsibility of the Management Committee, which comprises the national officers, the president of each of the 4 regional divisions, and the executive director.

Membership of employer associations is voluntary. Most substantial employers are members but many small employers (i.e., those employing less than 5 staff) are not.

Table 12.50. NUMBERS AND MEMBERSHIP OF REGISTERED INDUSTRIAL UNIONS OF EMPLOYERS

Industrial Group198219831984
UnionsMembersUnionsMembersUnionsMembers
Agriculture, hunting, foresty and fishing116 787128 550128 019
Manufacturing
    Food, beverages, and tobacco263932639726388
    Textiles, wearing apparel, leather104751047410535
    Wood and wood products950794979485
    Paper and paper products, printing, and publishing960296279604
    Chemicals, petroleum, coal, rubber, and plastics824972677253
    Non-metallic mineral products232232232
    Fabricated metal products, machinery and equipment91,65291,66091,738
         Total, manufacturing733 910723 954724 035
Electricity, gas and water116277277
Building and construction565 505576 019576 543
Wholesale and retail trade, restaurants and hotels5313 2725213 2875212 690
Transport, storage, and communication102 155102 210102 164
Financing, insurance, real estate and business services51 80152 21351 976
Community, social and personal services
    Public administration538632513251
    Sanitary and similar services117511551210
    Social and related community services388838123805
    Recreational services154154155
    Personal and household services489448614928
         Total, community, social, and personal services142 397122 133122 249
         Total, all industries22335 84322238 44322237 753

NOTE: Some employers belong to 2 or more unions.

Table 12.51. PROPORTION OF WORKERS BELONGING TO REGISTERED UNIONS TO TOTAL NUMBER OF WAGE EARNERS

Census YearTotal Wage Earners*End of Year Nearest to Census DateNumber of Workers on Rolls of Registered UnionsPercentage of Wage Earners on Rolls of Registered Unions

* Derived from census numerations.

† There are a number of associations of employees not registered. These include many State servants and mine workers, chemical fertiliser workers, agriculture workers, etc.

1961 (Apr)750,8821960332,36244
1966 (Mar)870,8131965353,09341
1971 (Mar)958,5631970378,46539
1976 (Mar)1 063 1701975454,99143
1981 (Mar)1 089 1291980516,29747x

Industrial associations

Associations of 2 or more unions in different districts in the same industry can be registered as industrial associations. As at 31 December 1984 there were 15 industrial associations of employers and 20 of workers, the former having 118 affiliated unions and the latter, 111.

Work stoppages

In the tables which follow, only those disputes which result in a strike or lockout or in which an organised 'go-slow', refusal to work overtime, or other passive resistance methods are clearly manifested, are included. From 1980, work stoppages not directly related to terms and conditions of employment have also been included (e.g. stoppages in protest at the presence of a nuclear-powered vessel or stoppages where the disagreement is with Government rather than the employer). Public sector stoppages continue to be excluded. The figures for stoppages include unauthorised stopwork meetings as well as unauthorised delays in resuming work after recognised stopwork meetings. A single stoppage may include or consist of 1 or more stoppages or stopwork meetings held at different places or at different times concerning the same issue.

Table 12.52. WORK STOPPAGES

YearNumber of Wage and Salary Earners*Workers Involved in Stoppages as Percentage of Wage and Salary EarnersWorking Days Lost per 1000 of Wage and Salary EarnersYearNumber of Wage and Salary Earners*Workers Involved in Stoppages as Percentage of Wage and Salary EarnersWorking Days Lost per 1000 of Wage and Salary Earners

* October estimates prior to 1980. Since 1980 based on the quarterly employment survey of 15 November.

 (000)   (000)  
19771 044.915.26418.0419811 033.413.06375.54
19781 040.215.18365.9019821 033.615.09319.30
19791 020.515.50374.2219831 026.413.71362.23
19801 021.012.50365.8119841 063.115.08x399.70x

Work stoppages during recent years are summarised in Table 12.53. The totals of stoppages include lockouts (if any). Where several occasions have been grouped as 1 stoppage the largest number of workers involved on any one day have been included under the relevant headings. Workers indirectly involved have also been included.

Table 12.53. NUMBER OF STOPPAGES

Calendar YearNumber of StoppagesNumber of Workers InvolvedWorking Days LostAverage Days Lost per Worker InvolvedEstimated Loss In Wages
Complete StrikePartial Strike*Total

* Reduction of normal rate of output.

† Includes lockouts and penalties (2 lockouts in 1981, 4 lockouts in 1982, and 1 lockout in 1983).

    (000)(000) $(000)
1980360-3601283732.9318,110
198128362911353882.8720,411
198232273331563302.1624,605
198333113331413722.6426,599
198436043641604252.65x33,640

Table 12.54. WORK STOPPAGES ACCORDING TO INDUSTRY 1984

IndustryNumber of StoppagesNumber of Workers InvolvedWorking Days LostEstimated Loss in Wages*

* Individual components may not acid due to rounding.

† From 1976 any stoppage which involved workers in more than one industry has been counted once in each respective industry but as a single stoppage in the total of all industries. In 1984 there were 21 extra cases recorded.

   No.$(000)
Agriculture, hunting17221616
Mining, quarrying211060248
Meat export works5662,253215,37619,866
Other slaughtering, preparation, and preserving meat61,2093,740278
Dairy products; fruit, vegetable, and fish canning and preserving; vegetable oils, animal oils and fats112,7825,285348
Grain milling, bakery products, sugar, confectionery, etc.421245126
Beverage industries, tobacco55252,592118
Textiles, wearing apparel, leather goods152,0545,684296
Wood, wood products (incl. furniture)25528618
Paper, paper products; printing and publishing134,88010,648760
Chemicals; chemical, petroleum, and coal products111,21612,397546
Rubber and plastic products102,06910,300918
Non-metallic mineral products152,02312,478572
Basic metal industries61,9778,308570
Metal products, machinery including electrical161,5789,150474
Transport equipment184,47518,363875
Electricity, gas, water1701408
Buildings2881942
Construction other than buildings10251,88169,0605,766
Ancillary building and construction services26114417
Wholesale trade113775,085142
Retail trade42371,49276
Restaurants and hotels86542,423102
Land transport224,1073,991210
Water transport249,84716,6571,250
Air transport31,2404,80299
Services allied to transport115251
Financing, insurance, real estate, etc.33,6554,382214x
Community, social, and personal service1155765024
             Total, all industries364160 279424 92133,640

Table 12.55. STOPPAGES BY DURATION 1984

DurationNumber of StoppagesNumber of Workers involvedNumber of Working Days LostEstimated Loss in Wages
    $(000)
1 day and less14898,282117,87210,037
Over 1 day but not over 2 days417,21011,076792
Over 2 days but not over 3 days4013,58827,8632,108
Over 3 days but less than 1 week272,8869,794591
1 week but less than 2 weeks5419,64988,6746,204
2 weeks but less than 4 weeks4215,857110,9468,523
4 weeks and over122,80758,6965,385
             Total364160 279424 92133,640

NOTE: A week is considered to be 5 working days.

Causes.Table 12.56 shows the causes of stoppages occuring during 1984. A breakdown in negotiations over a range of matters rather than over any 1 or more of the other categories of cause is recorded under “General Breakdown in Negotiations”.

Under the heading “Wages” are included stoppages concerning wages, overtime, or rates of piecework. Stoppages concerning the hours of work, leave, and holidays are included under the heading “Period of Work”.

“Conditions of Work” includes safety, health and general working conditions. Such matters as supervision, work allocation, staffing levels, dismissals, redundancy, etc., are included under “Managerial Practice”.

Stoppages caused by workers striking in sympathy with demands of other workers, demarcation, victimisation, and other union matters are included under “Union Matters”.

Table 12.56. CAUSE OF WORK STOPPAGES 1984

InvolvementCause of StoppageTotal
General Breakdown in NegotiationsWagesPeriod of WorkConditions of WorkManagerial PracticeUnion Matters* and Other CausesPolitical

* Union matters: 84 stoppages; 40 890 workers involved; 81 106 working days lost.

Number of—
    Stoppages5x831937121918364
    Workers involved2,63255 712x9,46216,10026,21346,5673,593160,279
    Working days lost13,325185,88117,87823,85595,80886,0102,164424,921

Settlement of Disputes.Table 12.57 shows the methods of settlement of disputes causing stoppages in 1984. “Private negotiations” take place when discussions have occurred between employers and workers without intervention of a third party. Third parties intervening may include industrial mediators, conciliators, the Department of Labour, the Minister of Labour, the Federation of Labour, etc.

A settlement is classified as “Voluntary return to work” where no negotiations have taken place, no conditions are changed, and workers simply return to work or decide to drop their claims.

Table 12.57. METHODS OF SETTLEMENT 1984

Method of SettlementNumber of StoppagesNumber of Workers InvolvedNumber of Working Days LostEstimated Loss in Wages
    $(000)
Private negotiations9622,359102,7056,973
Voluntary return to work5716,74684,5176,737
Intervention of third party198117,247220,05918,752
Other133,92717,6401,178
                 Total364160,279424,921336,640

Working conditions

A considerable proportion of the persons comprising the labour force of New Zealand have their working conditions determined either directly or indirectly by virtue of the provisions of the Aircrew Industrial Tribunal Act 1971, the Factories and Commercial Premises Act 1981, the Coal Mines Act 1979, the Shipping and Seamen Act 1952, the Agricultural Workers Act 1977, the Construction Act 1959, the Machinery Act 1950, the Disabled Persons Employment Promotion Act 1960, the Bush Workers Act 1945, the Sharemilking Agreements Act 1937, the Shearers Act 1962, or the Industrial Relations Act 1973. Legislative authority covering the working conditions of substantially the greater portion of the remaining participants in the labour force is contained in the State Services Act 1962, the State Services Conditions of Employment Act 1977, the New Zealand Railways Corporation Act 1981, the Post Office Act 1959, the Police Act 1958, the Fire Services Act 1975, the Education Act 1964, the Hospitals Act 1957, the Hospital Employment Regulations 1963, and the Waterfront Industry Act 1976.

Notes on Acts which have as their prime purpose the protection of workers from accidents in the course of their employment have been included in chapter 10, Public safety.

Hours of work. Employees in most occupations have had the benefit of a 40-hour 5-day week since 1946, with the first legislation in this regard being enacted in 1936.

Holidays. The Holidays Act 1981 provides for an annual holiday of 3 weeks' duration paid at the worker's average weekly earnings during the year of entitlement, provided the average is not less than the ordinary weekly earnings being received at the date of commencing the holidays.

The following fixed public holidays are observed: Christmas Day (25 December); Boxing Day (26 December); New Year's Day (1 January); 2 January (or a day in lieu); Waitangi Day (6 February); and Anzac Day (25 April).

Table 12.58. MOVEABLE NATIONAL PUBLIC HOLIDAYS

Holiday19861987198819891990

* The Queen's actual date of birth is 21 April 1926.

Good Friday28 March17 April1 April24 March15 April
Easter Monday31 March20 April4 April27 March18 April
Queen's Birthday*2 June1 June6 June5 June4 June
Labour Day27 October26 October24 October23 October22 October

Provincial anniversaries, or a day in lieu, are observed locally. The anniversary days are: Northland (29 January); Auckland (29 January); Taranaki (31 March); Hawke's Bay (1 November); Wellington (22 January); Marlborough (1 November); Nelson (1 February); Canterbury (16 December); Westland (1 December); Otago and Southland (23 March); and the Chatham Islands (30 November). When the anniversary falls on Friday or later the holiday is observed next Monday; if earlier it is observed the Monday before. The holiday may be taken on another day, such as a local show day. In Taranaki it is taken on the second Monday in March to avoid Easter.

Factories and Commercial Premises Act. This Act applies to undertakings which include bakehouses, cinemas, commercial depots, factories, hotels, laundries, laboratories, mailrooms, offices, restaurants, shops, stores, theatres, telegraph offices, telex offices, and warehouses. The Act also covers places where motor vehicles are repaired, serviced, or tested for pecuniary gain, or where food is prepared or cooked and sold ready for immediate human consumption elsewhere than in that place.

Restrictions on employment. Persons under 15 years may not be employed in any factory. Persons under 16 years of age may not be employed in any undertaking between the hours of 10 p.m. and 6 a.m.

Safety, health and welfare. Safety measures in the Act include requirements such as a general safety duty for both employers and workers, powers for inspectors to deal immediately with serious dangers, storage of dangerous substances and materials generally, harmful noise, means of access and safety of employment, safety in confined spaces, and requirements to train and supervise workers. The employer is required to keep a register of all accidents of which he has any knowledge and first-aid appliances must be provided and maintained. The health and welfare provisions are very extensive and include reference to such matters as air space, cleanliness, ventilation, canteens, the care of employees, amenities, and other things to be supplied by the employer to secure employees' health or welfare. Provision is made for the making of codes of practice that may be approved by the Minister. Other aspects include the establishment of work safety and health committees and the appointment of safety representatives. Various regulations are made under the Act to ensure employees' health and safety when dealing with toxic or hazardous substances and processes involving particular risks to health and safety.

Maternity leave. The Maternity Leave and Employment Protection Act 1980 allows women who are pregnant or intending to adopt children under 5 years of age to take 26 weeks unpaid maternity leave. Entitlement to this leave depends upon a woman having worked for the same employer for at least 15 hours per week, for a period of 18 months immediately preceding the expected date of delivery or the adoption of the child.

At the end of the 26-week period of leave, the female employee may return to her position if her employer has been able to keep it open for her. Alternatively, she is entitled during the 6 months following her maternity leave to preference over other applicants for any position which is vacant in the employer's enterprise and which is substantially similar to the position she held at the beginning of her maternity leave. The Act also provides that it is unlawful to terminate the employment of a woman because of her pregnancy or her state of health during the pregnancy. The Act contains complaint procedures for a woman to use where she believes that any of the provisions of the Act have been contravened or her rights to maternity leave have been affected to her disadvantage by her employer.

Shop trading hours. Under the Shop Trading Hours Act 1977 shops may open at any time between 7 a.m. and 9 p.m. Mondays to Saturdays inclusive but are to be closed outside these hours and on Sundays and statutory holidays unless an extension of opening hours has been authorised by the Shop Trading Hours Commission.

The Act provides that “approved” goods may be sold at any time. Goods other than those on the “approved” list are “restricted” goods. If an occupier intends to open a shop to sell “approved” goods outside the hours mentioned above, then all “restricted” goods must be out of sight of the public or kept in a part of the shop that is closed off.

Provision is made for the granting of orders authorising a shop occupier to open at times other than those mentioned above. The majority of the shop occupiers in an “area” (which may be a street, mall, or municipality area) can also apply for such an order to cover the whole of the area.

“Approved” Goods—These are listed in a Schedule contained in an Order made under the Act. “Approved” goods include bakers' and pastrycooks' goods, building supplies and domestic repair requisites, condiments, confectionery, dairy produce, drinks, fish, frozen foods, fruit and flowers, fuels, gardening supplies, aquarium flora and fauna, miscellaneous groceries, magazines and periodicals, meats and smallgoods, medicinal and household goods, motor accessories, photographic goods, plants, prepared and cooked foods, tobacco, etc., vegetables, and a number of miscellaneous lines.

The Act makes special provision for bona fide “dairy-mixed businesses” to allow them to open on a 7-day-week basis. Dairies need only complete a simple application form which is lodged with the Shop Trading Hours Commission. The application, together with a report from an inspector, is then considered by the commission without the need for a formal hearing. If the application is granted, the dairy may open outside the hours set by the Act. If it is declined the shop must observe the legally permitted hours or, if the proprietor wants to open outside those hours, he or she must confine the display of goods to those items on the “approved” goods list.

Agricultural Workers Act. Under the Agricultural Workers Act 1977 regulations have been made setting out minimum standards of accommodation to be supplied for agricultural workers.

Restrictions on Employment of Children—Under the Act no child under the age of 15 years may:

  1. be employed in any agricultural work during such times as the child is required to attend school under the Education Act;

  2. be required to lift any weights, or to perform any task likely to be injurious to health;

  3. work more than 8 hours in any 1 day.

Safety and Health—The Act requires employers to take reasonable precautions for the safety and health of employees and provides for the instruction of employees as to dangers and precautions, miscellaneous protection, the provision of protective clothing or equipment as appropriate, and the moderation, insulation, or provision of protection against harmful noise.

Fixing of wages and conditions of employment—The Act provides a system for fixing wages and conditions of employment somewhat akin to that which operates for workers in other industries. The emphasis is on voluntary and conciliated settlement of disputes, but in cases of no agreement a specialised Agricultural Tribunal can make an award. A significant concept is the registration of a single employers' organisation and a single employees' organisation for each class of agricultural work. The registered organisations have exclusive rights of representation for the particular class. Machinery is provided in the Act for amendment of the definitions of classes of work and for the registration of replacement organisations. This whole system has been integrated into the all-encompassing wage-fixing machinery under the Arbitration Court. A judge of that Court is the President of the Agricultural Tribunal.

Shearers Act. Under the Shearers Act 1962 an employer is required to provide amenities for all shearers employed. Where 5 or more shearers are to be accommodated on the farm suitable accommodation must be provided. Minimum standards of amenities and accommodation are prescribed by the Shearers Regulations 1963.

Shipping and seamen legislation. The general superintendence of matters relating to merchant ships and seamen in New Zealand is the responsibility of the Marine Division of the Ministry of Transport.

Competence, safety, and welfare provisions—The Shipping and Seamen Act 1952 makes provision to ensure competence on the part of navigational officers, engineers, and certain crew members. Rules or regulations under that Act set out the qualifications and examination standards for persons to obtain the appropriate certificates in New Zealand, and there are provisions for the acceptance of certain certificates granted In other Commonwealth countries. The number and qualifications of persons required to man ships of various classes are set out in statutory scales.

The seaworthiness of ships is covered by annual survey for compliance as to condition and equipment, and regulations govern the day-to-day operations of ships to ensure their safe navigation and operation.

The pay and many conditions of employment are determined by industrial awards or agreements between shipowners and employee organisations. There are also legislative measures to ensure compliance with some of the international conventions or recommendations relating to the employment of seafarers.

Mining legislation. The Mines Division of the Ministry of Energy is responsible for working conditions in mines and quarries under the Mining Act 1971, the Coal Mines Act 1979, the Quarries and Tunnels Act 1982, and their attendant regulations.

Working conditions—In the coal-mining industry working conditions are determined by agreement reached at annual conferences between the coal-mine owners and the employee organisations.

Restrictions on employment—No person under the age of 16 years may be employed underground in any coal mine, or in any alluvial mine, or on or about any dredge. The minimum age in respect of underground work in a quartz mine is 19 years except in cases where people are required occasionally to do any class of work they normally do above ground. No youth may be employed in a mine for more than 8 hours per day or 48 hours per week except in cases of emergency.

Occupational safety. Measures for occupational safety, involving the Machinery Act 1950, the Construction Act 1959, and a number of other Acts, are discussed in chapter 10, Public safety.

Working conditions of state servants. Apart from remuneration (which is discussed in 12.3) the working conditions of State Servants are controlled by legislation set out in the following paragraphs.

Members of the Public Service are governed by the State Services Act 1962 and the State Services Conditions of Employment Act 1977. Included in the functions of the State Services Commission are the provision of suitable office accommodation, the prescription and supervision of physical working conditions, and also the regulation of a variety of points connected with control—e.g., leave, hours of work.

The New Zealand Railways Corporation Act 1981 and the State Services Conditions of Employment Act 1977 furnish the legislative framework for determination of the working conditions of railway employees. There is a Government Railways Industrial Tribunal, the principal function of which is to adjudicate on single service conditions of work in respect of railway employees.

The Post Office Act 1959 and the State Services Conditions of Employment Act 1977 provide the basis for determination of the working conditions for Post Office employees. There is a Post Office Staff Tribunal whose function it is to hear and determine applications referred to it in respect of conditions of employment of Post Office staff.

There are other legislative enactments which also apply to the relevant sections of general Government employees. Members of the Police are governed by the Police Act 1958 and the Police Regulations 1959, while there is also a Police Staff Tribunal. The 3 armed services are controlled by the Defence Act 1971.

The Education Act 1964 and amendments authorise, either by regulation or through the agency of education boards, the employment of teachers and other members of the Education Service. Payment and conditions of service are covered by determinations issued under the machinery set up by the State Services Conditions of Employment Act 1977.

The Hospitals Act 1957 authorises hospital boards to appoint such employees as may be necessary for the efficient performance of their functions, duties and powers. Such employees are members of the Health Service.

In the Health Service conditions of employment (other than salaries), are determined by the Minister of Health after considering recommendations made by the Health Medical Officers' Advisory Committee established under the Health Service Personnel Act 1983. Remuneration and conditions of employment for paramedical groups is fixed under the State Services Conditions of Employment Act 1977, and for clerical, trades and other support groups under the Industrial Relations Act 1973.

Waterfront industry. Work within the waterfront industry is governed by the Waterfront Industry Act 1976. The Act defines waterside work as the loading and unloading of ships, barges, lighters, and other vessels, together with certain other work customarily performed within wharf limits by waterside workers. Work within the waterfront industry includes waterside work and certain other work carried out within wharf limits such as the driving or operation of mechanical cargo-handling equipment, tallying, the shoring and unshoring of cargo, and the work of foremen stevedores and timekeepers. Separate bodies are empowered by the Act to carry out, on the one hand, legislative and judicial functions, and on the other administrative functions only.

Waterfront Industry Tribunal—The legislative and judicial body is the Waterfront Industry Tribunal, which consists of 2 members appointed by the Governor-General on the recommendation of the Minister and as chairman the Chief Judge of the Arbitration Court or a judge of the Arbitration Court nominated by the Chief Judge. The members are appointed for a term of 3 years. The tribunal is a Commission of Inquiry under the Commissions of Inquiry Act 1908. The functions of the tribunal are, firstly, to prescribe the terms and conditions of employment for work within the waterfront industry, and here the tribunals' procedure is similar to that followed by the Government Service Tribunal. To assist with this function, the Act also provides for the Minister of Labour to direct the establishment of conciliation councils each consisting of an independent chairman and an equal number of employers' representatives and workers' representatives. These councils conduct conciliation proceedings on any application to the tribunal which concerns 2 or more ports, and the chairman is appointed by the Minister for a term not exceeding 1 year. Secondly, the tribunal is required to settle any disputes that arise in relation to work within the waterfront industry and for this function has the assistance of Port Conciliation Committees which consist of an equal number of employers' and workers' representatives with an independent chairman. Thirdly, the tribunal is a general appeal court from decisions of Port Conciliation Committees (with certain limitations) and to determine appeals from any orders or decisions of the Waterfront Industry Commission imposing levies or charges and in respect of the provision of amenities for waterside workers, as well as against refusal of the commission to register an applicant for entry on the Register of Employers of Waterside Workers.

Waterfront Industry Commission—The Waterfront Industry Commission, which is the administrative body, consists of an independent chairman, 2 members nominated by the Unions of Employers, and 2 members nominated by the New Zealand Waterside Workers' Federation. All 5 members are appointed by the Governor-General on the recommendation of the Minister of Labour for a term not exceeding 3 years. The functions of the commission are, to carry out all administrative work in connection with the engagement, employment, wage and allowances of waterside workers; guaranteed wage payments, annual and statutory holiday payments, and systems of payments by results for waterside workers; and to perform these functions for other workers in the waterfront industry if requested by the employers and workers concerned. Secondly, the commission is responsible for the provision of amenities for waterside workers and for the equipping, operation and management of these amenities which include waiting rooms or assembly halls, restaurants, canteens, and first aid rooms. The commission provides such amenities costing not more than $50,000 each at any port and approves schemes for the provision by harbour boards of amenities costing more than $50,000 each at any port.

Of the remaining functions of the commission, the main ones are the determination of the number of workers to be entered on the Bureau Register for each port so as to ensure the supply of sufficient waterside labour for its efficient working, to be the sole employer of waterside workers for the purposes of the Accident Compensation Act 1972, to train waterside workers in first aid, to publish statistical information in relation to the waterfront industry, and to register employers of waterside labour providing they meet the statutory requirements.

The industrial organisation of waterside workers is on the basis of separate port unions with one association or federation of unions. The port unions and the association are registered through the Registrar of Industrial Unions in the Department of Labour.

Further information

Employment and incomes—general

Labour and Employment Gazette—Department of Labour (quarterly).

Monthly Abstract of Statistics—Department of Statistics.

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

Employment

Census of Population and Dwellings 1981: Vol. 4 Labour Force—Department of Statistics.

Demographic Bulletin: Vol. 6, No. 2—Department of Statistics.

New Zealand Standard Classification of Occupations (NZSCO)—Department of Statistics.

New Zealand Standard Industrial Classification (NZSIC)—Department of Statistics.

New Zealand Tables of Working Life—Department of Statistics.

Prices, Wages, and Labour—Department of Statistics (annual).

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

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

Incomes and wages

Census of Population and Dwellings 1976: Vol. 5 Incomes and Social Security Benefits—Department of Statistics.

Census of Population and Dwellings 1981: Bulletin 11 National Summary—Department of Statistics.

Census of Population and Dwellings 1981: Vol. 5 Incomes and Social Security Benefits—Department of Statistics.

Incomes and Income Tax of Persons—Department of Statistics (annual).

New Zealand Household Expenditure and Income Survey—Department of Statistics (annual).

Report of the Inland Revenue Department (Parl. paper B. 23).

Wages and Earnings—Department of Statistics (annual).

Conditions of employment

Industrial Relations—A Framework for Review Volumes 1 and 2—Department of Labour.

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

Report of the Waterfront Industry Commission (Parl. paper G. 2)

Wages, Hours, and Employment—Department of Labour (6-monthly).

Work Stoppages and Industrial Unions—Department of Statistics (annual).

Work Stoppages: Handbook of Statistics—Department of Labour (annual).

Work Stoppages Report—Department of Labour (annual).

Chapter 13. 13 Planning, and science

13.1 Policy planning

New Zealand Planning Council. The New Zealand Planning Council was set up in 1977 as a result of recommendations made by a Task Force on Economic and Social Planning which aimed to provide a focus for better information and consultation on the key medium term issues in New Zealand's development. The New Zealand Planning Act 1977 provided the legal basis for the council to be independent of government in its choice of work and in publishing its reports. In 1982 an amending Act confirmed this independence and defined the council's main task as being to monitor and report on trends, prospects, issues, and options in relation to the social, economic and cultural development of New Zealand. As well as reporting directly to the Government and working with government departments, the council uses published reports to foster understanding and discussion of issues among private organisations and the public generally.

The council itself has 8 members drawn from different disciplines and areas of interest. The membership therefore reflects wide experience in many fields rather than representing particular sectional interests. The Minister of National Development and the Secretary to the Treasury are members of the council in an ex-officio capacity. There is also a full-time multi-disciplinary secretariat of around 15 people.

Since its reconstitution in 1982 the council has built its work around a set of expert monitoring and support groups. An Economic Monitoring Group (EMG), building on the role of the earlier Monetary and Economic Council analyses and stimulates discussion on issues of continuing concern in management of the economy. The Population Monitoring Group (PMG) was set up in early 1982. Its role is to identify important population issues, monitor trends and examine their implications for planning and policymaking. The Social Monitoring Group (SMG) was set up jointly by the Planning Council and the Social Advisory Council early in 1984. Its role is to document trends relevant to social development in New Zealand, exploring their implications and significance and to comment on the social implications of economic policies. Similar expert groups are brought together to support council's work in other areas such as sectoral patterns of economic activity, employment issues, agricultural development and social service delivery.

Planning Council Publications. During 1985 the New Zealand Planning Council published the following documents: NZPC Monitoring report series—The New Zealand Population: Contemporary Trends and Issues (PMG Report No. 2); The Foreign Exchange Market (EMG Report No. 4); From Birth to Death (SMG Report No. 1); The Regulated Economy (EMG Report No. 5); The New Zealand Population: Trends and Their Policy Implications, 1985 (PMG Report No. 3); and Planning Papers—No. 21 Employment and the Economy, No. 22 Self-employment and Small Businesses; and No. 23 Young People, Education and Employment.

Other aspects of policy planning. A number of other bodies, such as the Social Science Research Fund Committee, the National Research Advisory Council, the Social Advisory Council, the National Housing Commission, and the Board of Health, as reconstituted under the Health Amendment Act (No. 2) 1982 have research and advisory roles in the area of policy formation for their respective sectors that are similar to the functions of the New Zealand Planning Council.

Other phases of national planning are dealt with in other sections of this Yearbook. Land development and use, and the sometimes conflicting claims of economic growth and the preservation of the natural environment, are discussed and described in chapter 14, Land and environment. Energy planning comes into chapter 21, Energy; industrial planning into chapter 19, Manufacturing; and the scientific, agricultural, and industrial research that provides the essential background information for meaningful planning is briefly described later in this chapter. The question of finance for development comes into the finance chapters of the Yearbook, 26, 27 and 29.

Social Advisory Council. In July 1982 it was announced that the Social Development Council and the New Zealand Council of Social Service were to be replaced by a single social advisory body. The new body, the Social Advisory Council, was established to strengthen advice to the Government on social policies and social services. It met for the first time in December 1982, and has 4 members representing government departments, and 8 private members chosen from the community. The function of the council is to advise the Minister of Social Welfare and the chairperson of the Cabinet Social Equity Committee on social policy issues, including the effects of urbanisation on family and community welfare. Other duties include: (i) Undertaking specific tasks at the request of the Minister, concerning advice on such matters as welfare problems and on particular aspects of social policy issues; (ii) Providing a link between government departments and other advisory and statutory planning bodies, including the New Zealand Planning Council; (iii) Identifying priorities in social policy issues for monitoring, evaluation or research; (iv) Promoting co-ordination of social services and liaison with district councils of social services; and (v) Making public statements which are considered in the public interest.

13.2 Organisation of science

Scientific research in New Zealand is carried out by the research divisions of government departments, universities, joint Government/industry-funded research associations and private organisations, some of 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 are 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 about 70 percent is expended by DSIR and the Ministry of Agriculture and Fisheries. Decisions on national scientific policies are made by the Minister of Science and Technology, the Cabinet Development and Marketing Committee, and the Cabinet, subject to the guidance and control of Parliament during the annual consideration of the Estimates.

National Research Advisory Council. Advising the Government on a co-ordinated national policy for scientific research, which takes into consideration the work of all agencies carrying out scientific research, is the role of the National Research Advisory Council (NRAC), which was established in 1964 to advise the Minister of Science and Technology on: (a) the promotion and development of scientific research in New Zealand; (b) the planning and co-ordination of scientific research and services in New Zealand (including: (i) the determination of priorities among activities of government departments having regard to research done by other organisations; (ii) the provision of scholarships and fellowships and the promotion of the training of research workers; (iii) the association of Government with industry in the promotion of fundamental and applied research, including the promotion of research associations; and (iv) the collection and dissemination of scientific information including the publication of reports and journals); (c) the promotion of co-operation with the governments of, or organisations in, other countries, or with international organisations, in scientific matters; and (d) 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 6 to 9 members, including the chairperson, to be appointed by the Governor-General and for 3 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 4 advisory committees (each chaired by a council member), covering the fields of primary production, manufacturing and processing, environment and energy, and social sciences research.

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. NRAC works with a range of people, in the public and private sectors, to review New Zealand science and technology. While the main focus has been on research with potential economic benefits, the council has ensured that the environmental and social aspects are taken fully into account. This scientific and technological review, regularly updated, forms the basis for the publication of an annual plan for science and technology, which provides a framework for the continuing adjustment of national scientific and technological policies, programmes, and priorities.

Table 13.1. GOVERNMENT EXPENDITURE ON SCIENCE BY DEPARTMENT

DepartmentGross Expenditure on ScienceGrants*
1982-831983-841984-851982-831983-841984-85

* Included in gross expenditure in previous columns.

Source: National Research Advisory Council.

  $(thousand)  $(thousand) 
Agriculture and Fisheries46,62649,94252,5071,5142,3052,961
Defence3,6994,4463,207-55
Education2,7773,0773,0622,3292,6152,669
Energy1,2928641,1731,1727881,173
Forest Service16,31417,67918,38797193161
Internal Affairs2,3732,6432,396221329
Justice301327340494848
Labour294341330---
Lands and Survey673737740511572576
DSIR83,95988,96391,4799,3269,2919,163
Social Welfare640762835205212219
State Services Commission232232268---
Trade and Industry3,1184285102,6765856
Transport15,75915,92816,626106137188
Works and Development7,0804,9355,185---
                 Subtotal185,137191,304197,04518,00716,23717,248
Research Contracts1,9481,6212,290.........
                 Total187,085,192,925199,33518,00716,23717,248

Table 13.2. GOVERNMENT EXPENDITURE ON SCIENCE BY SCIENTIFIC ACTIVITY

Scientific ActivityGross Expenditure on ScienceGrants*
1982-831983-841984-851982-831983-841984-85

* Included in gross expenditure in previous columns.

† Includes elements from other activities such as Manufacturing and Minerals.

Source: National Research Advisory Council.

  $(thousand)  $(thousand) 
Agriculture72,23677,47380,4516,3966,9288,792
Forestry16,07417,03418,303317401369
Fisheries8,0227,8629,3035055105
Minerals1,4661,5871,599121313
Manufacturing15,28813,65312,9224,5832,294847
Building and construction3,3422,6542,7721,1491,1661,374
Transport3,4473,4104,1471923102
Natural environment41,62743,20942,883803812609
Social sciences4,2234,8154,9432,5972,8762,938
Human health2,7902,7862,701842122
Energy11,36410,44210,9371,6941,3151,725
Other scientific services5,2586,3796,084303333352
                 Subtotal185,137191,304197,04518,00716,23717,248
Research contracts1,9481,6212,290.........
                 Total187,085192,925199,33518,00716,23717,248

The Government expenditure on buildings solely for scientific use is not included in the above tables. The figure for 1982-83 was $15,439,000, for 1983-84, $12,879,000, and for 1984-85, $17,317,000.

Table 13.3. SCIENCE BUDGET STAFF CEILINGS*

Activity1982-831983-841984-85

* Science Budget.

Source: National Research Advisory Council.

  No. of Staff 
Agriculture1,8061,8092,104
Forestry441434457
Fisheries154183222
Minerals333341
Manufacturing267273353
Building and construction483237
Transport9782106
Natural environment9589541,036
Social sciences717480
Human health707081
Energy240210260
Other scientific services107124146
DSIR Staff not apportioned by activity475476-
                 Total4 7674 7544 923

Table 13.4. GOVERNMENT RESEARCH EFFORT

Year Ended 31 MarchGross Expenditure on Science*Percentage of Total Government ExpenditureTotal Staff Employed

* Including expenditure on public buildings for science.

Source: National Research Advisory Council.

 $(000)%No.
1980116,2251.234,674
1981142,5311.274,732
1982179,8531.294,766
1983202,5241.324,767
1984205,8041.204,754
1985216,6521.144,923

The figures of Government expenditure are not complete. They include expenditure on scientific, technical, and support staff of the main science units within the Public Service; grants by these departments to research associations and other agencies; and expenditure on the science buildings and equipment of these departments. They do not include expenditure on scientific research and servicing in the trading areas of the State services such as New Zealand Railways and the Post Office or by the Reserve Bank; in the universities; the grants made to the non-government sector by the New Zealand Energy Research and Development Committee; the assistance to industry for research provided by the Development Finance Corporation (54,661,000 in 1984-85); the allocation of Golden Kiwi lottery funds for scientific research ($450,000 in 1984-85), and the revenue foregone through taxation concessions to individuals and companies for expenditure on research or donations to research foundations (Income Tax Act 1976).

From the most recent figures available, OECD has calculated research and development expenditure as a percentage of gross domestic product (GDP) to give country comparisons.

Table 13.5. INTERNATIONAL COMPARISON OF RESEARCH EXPORT

CountryYearPercentage of GDP

Source: National Research Advisory Council.

Australia19811.0
Belgium19791.4
Canada19831.4
France19822.1
Japan19832.5
Netherlands19821.9
New Zealand19821.0
Norway19811.3
United Kingdom19812.4
United States19832.7
West Germany19832.6

13.3 Research programmes

Department of Scientific and Industrial Research

Agricultural production. Adverse terms of trade for meat and wool, and rising internal costs emphasise the importance of technological advances which enable the farming sector to increase outputs. New Zealand's research in agriculture is undertaken by the DSIR and the Ministry of Agriculture and Fisheries. Regular meetings between the 2 departments ensure co-ordination of programmes and resources. Research in pastoral agriculture continued with the aim of increasing pasture production by breeding new pasture species, improving efficiency of fertiliser use, controlling pests and diseases, and designing more productive pasture plant communities for environments such as Northland, Southland, moist North Island hill country, and dryland.

Plant breeding remains a dominating force in the development of New Zealand's land-based primary industries. It has the capability of creating new products, improving the quality of existing ones, and reducing costs associated with production. Horticulture is a major area of research and development expansion, particularly in fruit crop propagation and tropical fruit breeding. Research is also being done on suitability of soils, control of pests and diseases, and improvement and retention of product quality by post-harvest handling and transport technology techniques.

Food technology. The adding of value and storage of primary products continues to be a high priority area of work, particularly in horticultural and fish-processing fields, and in ensuring adequate protection of quality during transport to market. Research is aimed at maintaining the product in the form it was picked or caught, and in modifying the produce through processing to improve its acceptability to the consumer, or to recover high value components as the final product.

The DSIR is continuing to develop and commercialise new fish products. Smoked mussels and smoked jack mackeral are 2 such products, and procedures for processing squid for the Japanese market have been established.

DSIR scientists are carrying out a wide-ranging programme of food production and processing. “Ergo”, an orange/egg drink under licensed manufacture in several countries at present, is one such product.

Energy. Substantial costs of imported energy have stimulated the search for economic sources of energy within New Zealand, and the development of techniques to make better use of the known resources. The department is investigating methods for prospecting new energy sources, developing knowledge for using natural gas, investigating the chemical reactions occurring in the conversion of methanol to gasoline, and studying the suitability of high methanol blends (M85) as a direct automotive fuel.

Work includes explorations for new coalfields, geothermal areas, and petroleum deposits. An investigation into the influence of water in the draw-off of gas from gas fields is of world-wide interest. Work on motor fuels continues, as does the production of gas cylinders, some alternative fuels, and methanol to gasoline catalysts. Studies of new methods for producing solar cells show promise for New Zealand's future.

Geological assistance continues to be provided to the Ministry of Works and Development and to the Ministry of Energy on hydro-electric power schemes.

Manufacturing. Increasing pressure in overseas markets, the gradual freeing of import restrictions, and growing consumer awareness within New Zealand are forcing manufacturers to place much more emphasis on the quality of their goods and services than in the past. Support by the DSIR for manufacturing industries has increased with particular emphasis on the electronics industry, including microprocessor and silicon chip developments.

Industrial divisions within the DSIR, both independently and in conjunction with the New Zealand Organisation for Quality Assurance, have been helping a wide range of industries to improve product quality at all stages of manufacture. Of particular importance has been the identification and correction of problem areas as early as possible in the manufacturing chain. This assistance has been in the form of assessment of companies' ability to produce to contracted quality levels, direct advice on specific quality problems, and training sessions on quality control techniques and quality assurance methodology throughout New Zealand. Manufacturing categories in which direct assistance has been given include light and heavy engineering, electronics, meat, dairy products, food processing, and pharmaceuticals.

The DSIR has established a Division of Information Technology to serve as a focal point to ensure that the DSIR and New Zealand industry can take maximum advantage of the new information technologies.

Natural environment. Development of New Zealand's natural resources has resulted in an increased demand for information and practical advice, which is provided by the DSIR. The department also contributes to studies on the prevention of environmental damage. The Biological Resources Centre, established in 1981 in the DSIR, supplies information used for environmental assessments. Oceanography work supports the fishing industry, and obtains scientific results relating to the development of offshore mineral deposits such as the Chatham Rise phosphorite.

A National Civil Defence Planning Committee on Volcanic Hazards has been established. The aim of the committee is to review volcanic risk throughout New Zealand in the light of current knowledge, to present this in such a manner that Civil Defence contingency plans can be drawn up to be put into action when an eruption occurs, and to recommend effective means of monitoring volcanic processes. Several of the department's geologists together with their colleagues in universities have been involved in producing these reports. The DSIR has devoted most of its physical volcanology research to the volcanoes of Tongariro National Park, because they are obviously intermittently active and because large numbers of people now use their slopes as a winter playground. Since 1945 the population and productivity of the rest of the central volcanic region has expanded enormously, and some form of physical monitoring of potential eruptive centres is now desirable.

Scientific services. The DSIR carries out work in a wide range of fields in addition to those within the preceding categories. For example, DSIR provides the scientific services required by many government departments in administering their areas of responsibility (areas such as human health, transport, administration of justice, forestry, social science, and communications). Centralised laboratory services are supplied to commissions of inquiry, to coroners, and to the police in their investigations of crime.

The DSIR publishes 7 scientific journals, making available internationally the results from both government department and university research and technology. The department has also several series of professional and popular publications, aimed at the better utilisation of research results within the community.

The DSIR maintains the primary measurement standards for the country, and the standardisation and calibration services based on these are being heavily utilised as the New Zealand manufacturing industry seeks to increase its product range and quality.

In collaboration with many private and government organisations, advice and specialist technical assistance is given to many sectors of industry, including the building, fishing, communications, and mineral industries.

DSIR has extensive facilities for pilot scale fermentation and downstream processing of biochemical systems.

Table 13.6. DSIR GRANTS TO RESEARCH INSTITUTIONS 1984-85

InstitutionAmount

* University contracts are now funded from DSIR's operating funds.

Source: DSIR.

 $(000)
Universities*168
Research associations—
    Building Research Association870
    Coal Research Association306
    Concrete Research Association290
    Dairy Research Institute1,631
    Fertiliser Manufacturers' Research Association283
    Heavy Engineering Research Association237
    Leather and Shoe Research Association274
    Logging Industry Research Association285
    Meat Industry, Research Institute1,577
    Research Institute Textile Services34
    Wool Research Organisation1,087
    New buildings488
Overseas institutions—
    Commonwealth Agricultural Bureaus183
    Others95
New Zealand institutions—
    Carter Observatory234
    Cawthron Institute553
    Royal Society of New Zealand336
    Testing Laboratory Registration Council305
    Other (inc. NZ/US agreement)95
                 Total9,331

Ministry of Agriculture and Fisheries

Agricultural research. Almost all agricultural research within the Ministry of Agriculture and Fisheries is conducted by the Agricultural Research Division. The division has 276 scientists, 555 science technicians, and 349 other support staff. The activities of the division are administered from its head office in Wellington by the director and 4 assistant directors through the 5 regional directors and the director of Wallaceville Animal Research Centre. Work is carried out at 8 main centres and stations, 34 smaller stations and areas, and on farmers' properties throughout the country. The Agricultural Research Division's mission is to help New Zealand's meat, fibre, dairy, arable and horticultural industries to identify and realise their export potential and increase the sustainable cash return from farming. Increasing attention is being given to problems related to harvesting, processing, and marketing. The following represent the main areas of research.

Animal—sheep, cattle, deer, and goats (including genetics, reproduction, nutrition, management, and diseases).

Soil and plant nutrition—soil and plant chemistry, fertiliser and trace-element technology, soil and plant tissue testing techniques, fertiliser requirements, modelling, and growth substrates.

Pasture and crop—plant species and cultivar evaluation, management, microbiology, and weed and pest control.

Horticulture and viticulture—cultivar evaluation, cultural practices, management, pollination, water requirements, harvesting methods, quality evaluation and marketing (for most established crops and for a range of new ones, including floricultural and nursery crops).

Irrigation—pasture and crop water-use efficiency and response to irrigation.

Energy—evaluating crops for ethanol production.

The division is also involved in developing new products, production systems, means of harvesting, transport and marketing, and agricultural equipment; in evolving methods of measuring and monitoring product constituents and environmental contaminants, acceptable within New Zealand and internationally; and in providing producers with essential services such as comprehensive soil and plant analyses and the associated fertiliser advice.

Programmes are designed to accommodate local, regional, and national development objectives, as well as to integrate all aspects of crop production (including harvesting, processing, and marketing).

Pasture research. Pasture research is aimed at achieving the maximum pasture response from the minimum inputs of energy, labour, fertiliser, and capital. Maximum use is made of this production by matching animal requirements as closely as possible to pasture growth. (The calving of dairy cows, for instance, is timed to ensure that maximum milk production coincides with maximum pasture growth, thus minimising the need for expensive conserved fodder, such as hay or silage.)

The use of nitrogen-fixing legumes (such as white clover) reduces the need for nitrogen fertilisers on pasture. Some urea fertiliser is used to stimulate pasture growth at the beginning of the season or to speed recovery from drought. Legumes get their nitrogen-fixing ability from rhizobia (bacteria which infect the roots of legumes). Research identifies the most efficient rhizobia strain for each legume species and ensures that each legume is infected with the right strain. There have been problems establishing new strains in the soil environment.

New legume cultivars, adapted to certain conditions may increase production without large inputs of fertiliser (for example, “Grasslands Maku” lotus will outproduce white clover on acid, low fertility soils). Scientists from the division are involved in evaluating new cultivars and species, and in developing management techniques for them.

Insect pests cause large pasture and crop losses each year. Integrated pest-management systems offer the most effective and economical control—they are being developed for the major pests. The procedures include relating pest numbers and stages of development to plant damage; monitoring changes in pest populations; identifying, selecting, and propagating plant species which are either pest tolerant or resistant (for example, lotus is resistant to grass grub); screening insecticides and identifying the most cost-effective dose levels; identifying and evaluating the significance of natural pathogens; and establishing the extent to which varying farm management procedures can contribute to control.

Fertiliser is increasingly expensive. Concern over the falling quality of superphosphate fertilisers resulted in the adoption of citric acid-soluble phosphate as a measure of agronomic effectiveness. Research emphasis is on investigating new types of fertiliser and more efficient ways of application.

A comprehensive chemical soil-testing service for farmers is provided by the division. A fertiliser recommendations bulletin, for use by farm advisers, has been published. It includes many years of research information and produces models of nutrient cycling in New Zealand in order to predict nutrient requirements and thus to formulate its recommendations. Soil, crop, and stock types; rainfall; stocking density, the degree of pasture utilisation, and its carrying capacity are all taken into account, as well as the results of the soil tests.

Several of the division's scientists are researching chemical, cultural, and management systems of controlling weeds—gorse, thistles, ragwort, and hawkweed as well as weeds affecting crops.

Animal production. Animal production can be improved by genetic selection. Selection research is being carried out at Ruakura, Templeton, Invermay, and Woodlands. A new animal-breeding research station has been established at Rotomahana. It aims to assess the genetic resources of sheep, and to develop breeding strategies by which they can best he exploited to improve the national production and our ability to market sheep products.

Improvement of stock can be achieved by selecting the best animals within a breed, or by crossing breeds (e.g. the high-fecundity Booroola Merino can be crossed with other breeds to increase their lambing percentage). The Ministry of Agriculture and Fisheries has imported genetic material from overseas for use in cross-breeding programmes to improve lambing percentages and carcass composition (for lean-meat production). The imported breeds are the Finnish Landrace, Texel and Oxford Down.

The overfat-lamb problem can be overcome by selecting rams whose progeny are fast growing but lean. The division had a working party which made recommendations on problems facing the industry.

“Special interest” field days are organised on a variety of topics. They are a popular and effective way to communicate research results.

Animal diseases. In the North Island, facial eczema continues to be a problem. Sheep vary in their resistance to it, and can thus be genetically selected for this factor. An enzyme has been identified as being produced by livers that have been damaged by facial-eczema toxin. Concentrations of the enzyme can be related to liver damage, and thus used as the basis for selecting the tolerant sheep.

Animal diseases still cause large losses and are under continuous study. Pneumonia and pleurisy, for example, cause death and carcass down-grading or rejection (perhaps even slower growth rates). A wide variety of micro-organisms have been isolated from field cases, but the exact causes of the diseases are unknown. Researchers at Wallaceville have now managed to reproduce the diseases in experimental animals. This has resulted in the development of vaccines and preliminary field tests are encouraging. Recently, Ruakura scientists have isolated and identified the apparent cause of ryegrass staggers among farm livestock—the toxin (the chemical structure of which was determined in 1983) is caused by an endophytic fungus which infects ryegrass. Fungus and toxin-free ryegrass has been obtained, but it is highly susceptible to attack by the Argentine stem weevil.

Irrigation. Winchmore Irrigation Research Station is investigating the large areas of potentially irrigable land in the South Island, some of which are already under irrigation. Effective use of the water is needed to achieve the most economic return on the investment. Programmed systems of cropping involve combinations of crops which have different peak-water requirements. Various crops are studied, as well as the efficiency of different methods of applying the water and the responses of different soil types to irrigation.

Horticulture. Horticulture is increasingly important in primary production. Northland has a particularly large potential horticultural production because of its climate and soils. The division has established a horticultural research and development station at Kerikeri which will focus on the development, culture, management, harvesting, processing, and marketing of existing and new crops in Northland.

The division's main horticultural research centres are established at Levin and Ruakura. The following aspects of horticultural production are at present being investigated: husbandry and management; pest, disease and weed control; soil and plant analyses; harvesting; and post-harvest physiology. Regional horticultural research stations at Pukekohe, Manutuke and Hastings also collaborate in this research.

Other areas of research. As well as the more traditional forms of farming, the division studies deer, possum, and goat farming; rabbit farming and control; animal behaviour; beekeeping; environmental contamination; aquatic-weed control; energy farming; forest farming; greenhouse design and construction; fencing; and the development of agricultural and horticultural equipment.

New Zealand Forest Service

The Forest Service undertakes and co-ordinates its forestry and forest-product research through the Forest Research Institute, which has 3 divisions at Rotorua and a fourth at Christchurch, employing 170 scientists, 196 technicians, and servicing staff. An advisory committee for each division of the institute ensures that the research programmes are relevant to the needs of the forestry and forest-based industries.

The institute maintains a continuous exchange of scientific information with other research organisations in New Zealand and overseas, and provides opportunities for research fellowships under the National Research Advisory Council's fellowship scheme, as well as some finance for universities to undertake contract research.

The institute produces its own annual report. The work of the 4 divisions is described below.

Forest management and resources. This division is responsible for research into exotic forest management, including soils, harvest planning, mensuration, economics and social science, and tree physiology. A comprehensive network of research trials in State and private forests has been established throughout the country.

Forest health and improvement. This division undertakes research into tree breeding, nursery technology, forest establishment, entomology and pathology. Indigenous Forest Management is a research field within this division, as is South Island Silviculture, located at Rangiora. A large research nursery exists within the Institute's grounds at Rotorua. A comprehensive network of research trials has been established in State and private forests throughout New Zealand.

Wood technology. This division undertakes research aimed at making the best use of wood. Its research includes: wood quality and conversion; pulp and paper; sawmilling; wood preservation; biotechnology drying and timber engineering. In carrying out its work, this division maintains close contacts with the timber and building industries and is therefore represented on numerous agencies associated with building standards and timber use and preservation.

Protection forestry. Located in the grounds of the University of Canterbury in Christchurch, this division undertakes research into methods of protecting and restoring the soil, water, and other values of forests. It studies the ecology of mountain-land forests, the biology and control of introduced animals such as deer and possums, the influence of forest operations on slope stability and erosion, and the use of revegetation for productive and protective purposes.

Industry, the universities, and the Department of Scientific and Industrial Research also carry out research into many aspects of forestry and forest products.

Other government departments

The Department of Scientific and Industrial Research and the Ministry of Agriculture and Fisheries are responsible for about 70 percent of the total government science expenditure. Adding the N.Z. Forest Service (the Forest Research Institute at Rotorua), the Ministry of Transport (the Meteorological Service), and the Ministry of Works and Development (the Water and Soil Division Science Centres at Hamilton, Aokautere and Christchurch), brings this figure to 85 percent of government research and development expenditure. An increasing number of other departments do, however, undertake or sponsor research.

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, Heavy Engineering Research Association, the Research Institute Textile Services, 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, and the Wool Research Organisation of New Zealand. The total cost of the government funding through the Vote—Scientific and Industrial Research for 1984-85 was $6,874,000.

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 technical services earnings, and from a government grant which comprises about. 37 percent of the institute's income.

The organisation of medical research is described in chapter 7, under the headings Medical Research Council and National Health Institute.

Social sciences

As New Zealand society faces the challenges of the future such as the introduction of new technology, the communications revolution, changing employment and lifestyle patterns, there are greater demands for social science research. It contributes to social impact assessment and the consideration of a human dimension in planning. The central disciplines of the social sciences include psychology, sociology, social anthropology, human geography, economics, social demography and political science as well as their applications in fields such as social policy, education, social administration and criminology.

There are 5 reasonably distinct organisational contexts in which social scientific research is carried out in New Zealand: (a) Universities; (b) Research units in government departments and in some local government authorities; (c) Independent social research units which receive government funds, e.g., the NZ Council for Educational Research (see chapter 8) and the NZ Institute for Economic Research (Inc) (see below); (d) Commercial market research firms, private research consultancies and research or analysis units within private enterprises; and (e) Voluntary agencies, such as the Society for Research on Women.

Government expenditure on social science research is funded through the departments of Justice, Social Welfare, Education, Forest Service, Internal Affairs, Lands and Survey and DSIR, amounting to $5,163,000 for the year ended March 1985. This is 2.59 percent of government research expenditure. The Social Science Research Fund Committee (established in 1979) receives over $200,000 per year through Vote: Social Welfare to provide funding support for social science research conducted outside government agencies.

The NZ Planning Council and Social Advisory Council have jointly established a Social Monitoring Group which will document current and emergent trends and issues relevant to social development in New Zealand and to explore these trends and the social implications of economic policies.

The National Research Advisory Council (see above) established a Social Sciences Committee in 1976 with responsibility for advising government on the promotion, development, organisation, planning and co-ordination of social science research and related scientific services in New Zealand.

New Zealand Institute of Economic Research. The NZ Institute of Economic Research was founded in 1958, following a recommendation from the 1956 Royal Commission on Money, Banking, and Credit Systems. It is an independent, non profit-making body with the primary objective of conducting research into economic problems affecting New Zealand. It is administered by a Trust Board consisting of 10 trustees elected by the subscribing members to the institute and 5 ex officio trustees including the Secretary of the Treasury, the Governor of the Reserve Bank, 2 university representatives and the Director. The institute is funded from membership subscriptions (mainly from the corporate sector), contracts and consultancy, and from grant income.

The institute consists of the largest group of economists in New Zealand outside the public service and the universities. Its research programme focuses on the economy in the short and medium term economic growth, industry, energy and household economics. In addition it provides consulting and contract services.

The institute produces a variety of publications, including regular journals, research papers, discussion papers and working papers, and it contributes to the publications of other organisations.

Further information

Policy planning

Annual Review of Activites 1985—Social Advisory Council.

Publication List—New Zealand Planning Council.

Publication List—Social Advisory Council.

Report of the New Zealand Planning Council (Parl. paper D. 9).

Science

Report of the Department of Scientific and Industrial Reserch (Parl. paper G. 21).

Report of the Director-General of Forests (Parl. paper C. 3).

Report of the Ministry of Agriculture and Fisheries (Parl. paper C. 5).

Report of the National Research Advisory Council (Parl. paper G. 20).

Science and Technology Plan, 1984: the First Steps—National Research Advisory Council.

Science and Technology Plan, 1985: the Challenge of Change—National Research Advisory Council.

Chapter 14. 14 Land and environment

14.1 Land resources and ownership

New Zealand occupies 26.9 million hectares. It is predominantly mountainous and hilly country and can be categorised by these features in terms of slope and altitude. Over two-thirds (18.5 million hectares) has slopes greater than 12 degrees and nearly half greater than 28 degrees. Approximately three-fifths of the country (16 million hectares) is over 300 metres above sea level with one-fifth over 900 metres. It has been estimated that in pre-Polynesian times 78 percent (21 million hectares) of the total area was under forest cover, 14 percent was made up of the alpine zone, and the balance was drylands, lakes, and swamps. Post-Polynesian and European settlement have seen a marked reduction of the original forest cover, by fire and conversion through the use of traditional and new development methods, to suit man's needs.

New Zealand's wealth has been based on the success achieved through the rapid and largely unconstrained expansion of farming and forestry, and export of products from the land. The country's export earnings will continue to be dominated by products from the traditional land based uses of farming and forestry. There are now increasing pressures on land use which highlight the need to carefully weigh up the economic requirements of the country for growth and development against social and environmental considerations. Unwise land use management could seriously affect the country's ability to maintain production at desired levels. The evaluation of production options, whether they be existing options or new opportunities, is usually carried out in terms of predominantly economic considerations. While there is a strong case for considering a greater variety of options and for examining them in terms of an economic assessment, they are, in more recent times also being assessed in terms of sustainable production, energy analysis and social and environmental impact.

Rural land has been the traditional reservoir for meeting the requirements of an expanding and changing society. Past users have had plenty of freedom because pressure for the introduction or expansion of a particular use was able to be offset by transferring the existing use to fresh unused land. This created a “shunting effect” which was demonstrated by the progressive expansion of urban areas into cropland, cropping into pastoral land, and pastoral land or exotic forests into native forest land.

In recent years, this effect has been contained. For example, the need to preserve native forest has placed constraints on both the pastoral and forestry sectors, resulting in more intense competition for what other land is available. There have also been energy restraints which have resulted in changes to the cost of development and in the relative economic performance of different forms of production. New Zealand is comparatively energy rich, but the high cost involved in transporting goods to ports (particularly perishable goods for export) means that energy is a key factor in deciding the location of future developments. The growth of general environmental awareness and concern for specific environmental problems often increased the conflict between competing land uses.

As the area of land not committed to a specific use gradually diminished, conflict was inevitable with various interests competing for the same resource. These conflicts not only become apparent between productive and non-productive uses but also between competing productive uses. There have also been stronger demands in the last decade for conservation of native flora fauna, and a gradual awareness of the need for resource management principles to be applied to decision-making.

Table 14.1. LAND USE

Type of LandAreaPercentage of Total Area

Source: New Zealand Forest Service.

 hectares (million) 
Total forested land7.226.8
Pasture and arable land14.453.5
Other land use4.918.2
Minor islands0.10.4
Lakes, rivers, etc.0.31.1
         Total area of New Zealand26.9100.0

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. Occasionally 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 weather more rapidly under high temperatures and become leached under heavy rainfall. In New Zealand, distinct soil gradations are found from west to east. These closely follow the isohyets (lines connecting places that receive the same amount of rain) on a climatic map.

Table 14.2. CLASSIFICATION OF NEW ZEALAND SOILS

RegionSoilsVegetation and Land Use

Source: DSIR.

North Auckland Peninsula and Auckland regionLarge areas of infertile gumland soils formerly covered with kauri. Loams and clay from volcanic rocks.Patchy land use. Exotic forests on sand country and remnant kauri forest on uplands. Intensive dairying on roiling lands around Kaipara Harbour, Whangarei, Kaikohe and Dargaville. Sheep and beef on hill country.
Bay of Plenty-Waikato-Thames-Hauraki PlainsVolcanic ash covers much of the area, giving rise to deep, yellow-brown loams with good physical properties. Peaty and gley soils with high ground water on Hauraki Plains and parts of Waikato Basin.Intensively-farmed dairying region. Much of better dairying land in Bay of Plenty established in kiwifruit and subtropical horticulture. Maize cropping in Waikato Basin.
Volcanic PlateauPumice soils, lacking in some essential trace elements, but mostly deep friable and highly suited to tree growth.Important watershed with large areas protected in native forest. Extensive exotic forests. Top-dressing of former scrub areas with trace elements has allowed widespread farming.
East Coast-WairarapaYellow-brown earths. Significant areas of recent alluvial soils on Gisborne and Heretaunga Plains. Yellow-grey earths on rolling land south of Hawke's Bay.Semi-extensive sheep farming (wool and store sheep) on dry hill country. Intensive lamb production on flat to rolling plains. Market gardens and orchards near Gisborne, Napier, and Hastings. Important pip fruit production. Vineyards. Pockets of dairying close to main ranges from Norsewood south.
TaranakiVolcanic ring plain consists of yellow-brown loams, usually from deep volcanic ash but stony in west. Soft-rock uplands in east Taranaki.Distinct contrast between intensive dairying on ring plain, and severely eroded inland hill country with many steep ridges covered in second-growth forest or dense gorse.
Manawatu-HorowhenuaSand dunes and swampy hollows common along coast. Loess-covered terraces and river flats inland. Yellow-grey earths on drier terraces with sand soils near coast and organic and recent alluvial soils on lower plains.intensive sheep production and cropping on the terrace country; semi-intensive sheep and beef in hill country of Rangitikei. Exotic forestry on coastal sand country.
Marlborough Sounds-NelsonPockets of fertile, recent alluvial soils on Waimea and Motueka Plains. Large areas of steepland soils and stony soils on Moutere Gravels.Intensive orcharding and market gardens. Exotic forests in Marlborough Sounds and Moutere Gravels.
Marlborough-Kaikoura CoastYellow-grey earths and yellow-brown earths with pockets of alluvial soils.Intensive sheep and cropping on river terraces, semi-intensive sheep and beef on hill country. Vineyards in lower Wairau valley.
West CoastExtensive gley podzols and organic soils, with recent soils on alluvial flats.Indigenous forestry declining; national parks and reserves; exotic forestry on hill country of N. Westland. Dairying on river flats.
CanterburyVery thick layer of gravel covered by variable thickness of fine material. Yellow-grey earths and associated stony soils.Intensive cropping for cereals and fodder crops. Intensive sheep production, with widespread irrigation of pasture.
OtagoHigh-county yellow-brown earths on ranges, and semi-arid soils (often stony), in basins.Extensive sheep and beef farming in uplands. Intensive orcharding in Central Otago basins, especially for stonefruit; irrigation necessary. Market gardening in lower Taieri.
SouthlandSouthland Plain mainly deposits of gravel and silt. Yellow-brown earths and recent alluvial soils. Yellow-grey earths inland in drier areas.Semi-intensive sheep and beef farming in roiling areas inland, and intensive fattening on Plains. Dairying on Plains near Invercargill.

Surveying and mapping

The Department of Lands and Survey is the national survey and mapping organisation. Its major functions include the maintenance and extension of the survey control system, examination of all land title surveys, regulation of survey standards, land planning, co-ordination of aerial photography requirements of the Government, and the publication of all topographic, cadastral, and special maps of New Zealand.

The New Zealand survey control system, in the form of trigonometrical and other geographically located stations, provides the basis for effective integration of surveys executed by all sectors for land title definition, land development and utilisation, engineering construction, communications, mapping production, scientific studies, and the location of marine and air navigation aids. Examination and approval 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, land and environmental planning, draughting services related to local government administration, census and electoral activities, and mining applications. A start has been made on the computerisation of land records as a base for the implementation of a national Land Information System. The practising surveyors in the private sector play a major role in surveys of private lands under the Land Transit. 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 the Department of Lands and Survey, which maintains a comprehensive library of air photos for all national purposes and general public usage. 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 imperial maps and the 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 constant demand for planning, construction, development of land, extension of public and social services, protection of the environment, the general use and guidance of the public, administration of central and local government, and defence. Regularly updated street maps cover all significant urban areas. The Department of Lands and Survey also produces and publishes a wide range of other maps for various purposes including recreation, national parks, and miscellaneous and general maps of New Zealand, the Pacific, and Antarctica. As the mapping agency for the Government in New Zealand, the department produces maps needed to service the activities of other departments, particularly aeronautical charts for military and civil use, meteorological maps and charts, and maps for the Ministry of Works and Development, the New Zealand Forest Service, and other Government departments. Topographic and orthophoto mapping produced by photogrammetric methods for projects and special purposes is executed at larger scales to provide an essential base for investigation and design of energy, irrigation, forestry, and communications projects. 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 which also holds bulk map supplies and maintains a world reference library of maps at its Map Centre. In addition, a large number of 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. Maps for the New Zealand Land Inventory are being produced with first priority being given to areas where land use change can be anticipated. These maps are produced from authoritative data and are published to uniform standards and presentation. They show the physical and cultural data about land, and overlays can be prepared to assess physical suitability for appropriate land uses.

Registration of land ownership

Title to land in private ownership in New Zealand is a matter of public record. The keeping of these records is the function of the Land and Deeds Division of the Department of Justice.

Almost all privately owned land in New Zealand is held under the land transfer system, presently embodied in the Land Transfer Act 1952. The objects of the Land Transfer Acts since 1870 have been to provide security of title by means of State guarantee, simplicity by use of standardised forms in language readily understood by the layperson, accuracy by the use of precise survey data, the reduction of costs by simplification of conveyancing procedures, expedition by streamlining and constantly revising recording procedures, and suitability to circumstances by relating our land registration system directly to our social and economic structures. The principal features of the system are registration of title and guarantee of that title by the State.

Under the land transfer system, land and interests in land do not pass by the execution of an instrument of transfer but by the registration of that instrument. A person acquires a legal interest in land not because he has entered into an agreement to purchase the land, but because he has registered the instrument of transfer and it is recorded on the register that he is the owner. The certificate of title is the pivot on which the whole land transfer system turns. A certificate of title is issued under the hand and seal of the District Land Registrar which guarantees to the registered proprietor of the land described in that certificate his rights of use, occupation, and enjoyment, the extent and position of his boundaries, and the nature of any encumbrances or interests affecting his land, such as mortgages or rights of way. Two copies of the certificate of title are issued; 1 copy forms the Land Transfer register, and the duplicate is held by the owner. This duplicate must be presented to the Land Registry Office for noting whenever documents affecting the estate for which it was issued are submitted for registration. Any change in the registered proprietorship which occurs through transfer, death, or other devolution, and the encumbrances to which the land is subject may be entered on the register by the registration of the appropriate documents in the manner prescribed by the Land Transfer Act.

Guaranteed search procedures came into effect on 1 January 1984 with the passing of the Land Transfer Amendment Act (No. 2) 1982. They were introduced to provide a greater measure of protection for those who use the land transfer system with some risk because of their inability to identify unregistered dealings which may be in competition with the documents they are seeking to register. The procedures provide government-funded protection for purchasers in the period between settlement and the time the documents giving title are registered and ownership becomes secure. This procedure is enhanced with the introduction of the Automated (computerised) Journal, which has been designed as an unregistered documents file. This facility will enable conveyancers to make an enquiry on any certificate or title on Abstract (document) in any district before settling transactions, thereby reducing the State's liability.

Interests in, and charges against, land arising from many other statutes may be noted against the Land Transfer register. Successive governments have charged the Land and Deeds Division with duties of surveillance under the laws relating to the subdivision and aggregation of land, disposition of public reserves, anti-slumming requirements of local authorities, and many other aspects of land use and occupation. Certain leases and licences of Crown land may be registered under the provisions of the Land Transfer Act, and Maori land when vested in any person for a freehold estate comes automatically under the land transfer system.

Table 14.3. NUMBER OF CERTIFICATES OF TITLE ISSUED

Year Ended 31 MarchTotal

Source: Department of Justice.

198043,816
198134,332
198236,472
198338,910
198439,913
198542,292

Control of land acquisition. 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 plan or district scheme, the acquisition by overseas interests of land of 4000 square 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 land and farmland 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 Administrative Division of the High 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/she 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 farmland, 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/she intends to reside permanently in New Zealand and farm the land exclusively for his/her 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 farmland 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 farmland to prevent undue aggregation. The consent of the court is required unless the purchaser or lessee owns no farmland, has no interest in any estate or trust owning farmland, has not since the passing of the Act transferred any farmland to any person as trustee or created any trust in respect of farmland, and has entered into the transaction solely on his own behalf.

The Act prevents the purchase of farmland, 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).

Table 14.4. LAND TRANSFERS REGISTERED

Total TransfersTotal ConsiderationYear Ended 31 March
NumberPercentage ChangeAmountPercentage Change
   $(m) 
1980100,176+9.83,575.9+20.6
1981110,282+10.14,400.2+23.0
1982135,460+22.86,575.6+49.4
198399,356-26.75,712.1-13.1
1984105,584+6.36,360.4+11.3
1985113,988+8.07,813.0+22.8

The total number of land transfers in 1985 and the consideration involved increased in 1985 in contrast to the decrease in 1983.

Table 14.5. CONSIDERATION FOR LAND TRANSFERS 1984-85*

Consideration CroupFreeholdLeaseholdAll Transfers
No.Total ConsiderationAverage ConsiderationNo.Total ConsiderationAverage ConsiderationNo.Total ConsiderationAverage Consideration

* Year ended 31 March.

        $ $(m)$(000) $(m)$(000) $(m)$(000)
Under 2,0001,2401.31.0210.031.212611.31.0
2,000-2,9995371.22.380.022.45451.32.3
3,000-3,9996242.13.490.033.16332.13.4
4,000-7,9994,22525.05.9340.195.64,25925.25.9
8,000-9,9992,70323.68.780.078.62,71123.78.7
10,000-14,9996,17074.012.0620.7512.16,23274.712.0
15,000-19,9995,21288.116.9520.8917.15,26489.016.9
20,000-49,99931,2971,128.136.02759.9236.131,5721,138.036.0
50,000-149,99953,3384,079.676.559344.2074.553,9314,123.876.5
150,000-199,9992,920492.3168.6325.37167.92,952497.7168.6
200,000 and over4,5801,810.3395.34825.95540.64,6281,836.2396.8
   Total
         all groups112 8467,725.668.51 14287.4176.5113 9887,813.068.5

The division into freehold and leasehold demonstrates the relatively small percentage of land transfers involving leasehold property.

Table 14.6. LAND TRANSFERS BY AREA OF PROPERTY 1984-85

Size Group (hectares)North IslandSouth IslandNew Zealand
NumberAreaTotal ConsiderationNumberAreaTotal ConsiderationNumberAreaTotal Consideration
  hectares  hectares  hectares 
  (000)$(m) (000)$(m) (000)$(m)
Under 275,8639.34,858.728,6703.41,461.8104,53312.66,320.5
2 and under 62,3498.3271.17772.762.63,12611.0333.8
6 and under 117936.2104.44003.138.21,1939.3142.6
11 and under 205648.477.92753.825.383912.2103.2
20 and under 501,14136.8195.846514.752.01,60651.4247.8
50 and under 7544726.8112.218110.830.162837.6142.2
75 and under 10024720.465.418115 431.642835.897.0
100 and under 20040655.097.536752.274.4773107.2171.9
200 and over438205.4137.2424197.2116.7862402.6254.0
         Total82 248376.65,920.231 740303.31,892.7113 988679.97,813.0

Table 14.6 includes both urban and rural land transfers. The majority of the urban transfers are in the “under 2 hectares” size-group, which includes 92 percent of the total number. Besides normal residential properties, this size-group will include many business, commercial, and industrial properties, and high-density residential properties (such as blocks of flats) in urban centres.

Table 14.7. LAND TRANSFERS BY LAND REGISTRATION DISTRICTS

Land Registration District1983-841984-85
No.Total Area ConsiderationNo.Total Area Consideration

* The urban areas of Auckland are in the North Auckland Land Registration District.

  Hectares  Hectares 
  (000)$(m) (000)$(m)
North Auckland*33,79661.02,343.935,26681.02,836.5
South Auckland16,37279.8961.317,88486.01,183.6
Gisborne1,20331.877.11,19331.377.5
Hawke's Bay4,04042.4247.44,38039.1267.5
Taranaki3,37031.2200.23,16028.0211.0
Wellington17,98584.11,014.120,365111.21,344.2
Marlborough1,35410.370.11,44520.283.3
Nelson2,46814.8136.72,84919.1183.5
Westland6285.221.97855.426.0
Canterbury15,43683.8827.016,718128.41,043.4
Otago5,74457.5280.56,65672.1360.4
Southland3,18842.5180.23,28758.1196.1
         Total105 584544.56,360.4113 988679.97,813.0

Figures of average consideration, and indeed all land transfer data, should be used with caution owing to the great diversity of property transactions covered by the figures. These transactions include, for example, sales of residential properties, farms and farmland, all classes of commercial, industrial, and business properties, sections, and parcels of land bought for such purposes as large-scale manufacturing, forestry, recreation, reserves, and later subdivision. Movements in prices of individual types of properties are indicated elsewhere (See chapter 20). Recent figures for freehold open market sales of farmland are shown in Table 14.8. Family sales are excluded, as are leasehold sales and sales for uses other than primary production.

Table 14.8. MARKET SALES OF FREEHOLD FARMLAND

Half Year EndedNo. of SalesTotal Sale PriceIndex Number*Percentage Change From Previous Half Year

* Base (= 1000) half year ended June 1980.

Source: Valuation Department.

  $(m)  
Jun 19822,058443.51828+19.4
Dec 19821,704369.02,014+10.2
Jun 19831,130227.51989-1.2
Dec 19831,386268.22,005+6.8
Jun 19841,579353.42,084+3.9
Dec 19841 498x329.0x2,095+0.5
Jun 19851,217247.82,137+2.0
Dec 19851,370305.42,090-2.2

Valuation of land

Equitable land values are needed for: (a) levying land tax; (b) apportioning rating levies over contributing local authorities; (c) levying rates by local authorities; (d) lending money on mortgage by Government departments and by trustees under the Trustee Act; (e) assessing stamp, estate and gift duties; and (f) fixing prices for transfers of land to or from the Crown. The Government Valuation of Land Act 1896 set up a separate Government department to assess values of real estate for taxation and other Central Government purposes, and for local rating. The Valuation of Land Act 1951 and the Land Valuation Proceedings Act 1948 set the current guidelines for the department's operation, The work of the Valuation Department is directed by the Valuer-General. The actual work of valuing is done by District Valuers and Valuers. The duty of the Valuer is to examine each property and to estimate: (a) the capital value of the whole property (land and buildings plus other improvements); (b) the value of the land as if it were vacant; and (c) the value of the improvements (if any) upon the land. The estimated values should be neither above, nor below the fair selling values, in view of the many different purposes for which the values are used. Increased land values generally stem from public works, the successful working of other lands in the area, and the general prosperity and development of the country. “Improvements” on land are defined as items of work done or materials used on or for the benefit of the land which result in structural additions.

The valuation roll. A valuation roll is prepared for each district over which a territorial local authority sets rates. The roll shows the ownership, description and valuation of each property, including rates postponement and special rateable values where required. District valuation rolls are revised by the Valuer-General, usually at least every 5 years. Special valuations are made for particular purposes such as loans by government departments or trustees and the assessment of stamp, gift and estate duties.

In 1985 the department unveiled an On Line Enquiry System. Now each of the 26 offices can instantly provide a printout showing information for any property in New Zealand.

Objections to valuations—When a district valuation roll is revised the Valuer-General, any local authority, or a property owner may object to any valuation. If only one property is revalued, the owner or any affected local authority may object. Objections can be taken to a land valuation tribunal, and ultimately objectors may turn to the Administrative Division of the High Court, which also hears claims for compensation under the Public Works Act 1928, and sets values under the Land Settlement Promotion and Land Acquisition Act 1952. Finally if objectors believe that the value of their properties is set too high they can sell to the Crown at those prices. If the Valuer-General believes the Court has fixed a value too low, and the owner will not change it, the property may be acquired by the Crown at the low value.

Rating valuations. By law, every local authority rating on the capital or land value, frames their valuation roll from the district valuation roll. The third major rating system is the annual (rental) value system. The Valuer-General may be appointed to do these valuations. The annual value is defined as the rent at which a property would let from year to year, with certain reductions. These valuation rolls are prepared either annually or 3-yearly. Under the Rating Act 1967, local authorities may grant applications for rates postponement for some residences in commercial and industrial zones, and for farmland in areas with urban development potential. Rates postponement values are determined under the Valuation of Land Act 1951 or the Rating Act 1967. Special rateable values for non-conforming land in various zones are also made so these properties will not have a rating advantage. The Rating Act 1967 allows rating relief for farmland subject to rates levied by urban local authorities. The Act provides for an equitable adjustment of rates and levies between parts of a local authority if they are revalued at different times. Table 14.9 shows the gross and net values on the valuation roll. Net values include all rateable property plus properties on which local authorities receive grants in lieu of rates.

Table 14.9. NATIONAL CAPITAL AND LAND VALUES AS AT 31 MARCH 1985

Type of Local AuthorityGross ValuesNet Values
Capital Values (Land and Improvements)Land Value*Capital Value (Land and Improvements)Land Value*

* Included in previous column.

Source: Valuation Department.

 $(million)
Counties and Islands44,442.624,374.341,000.123,795.7
Cities and Boroughs61,655.318,571.257,041.517,705.3
Town Districts37.29.133.38.4
         Grand Total106,135.142,955.198,074.941,509.4

With the Valuation Department's present resources, yearly revaluations of all properties in New Zealand would be impossible. However, using valuation equalisation, up-to-date gross values by local body districts for the whole country have been compiled.

Table 14.10. NATIONAL GROSS EQUALISED CAPITAL VALUE AS AT 31 MARCH 1985

Type of Local AuthorityTotal
Counties and IslandsCities and BoroughsTown Districts

Source: Valuation Department.

$(million)
53,999.080,084.156.9134,140.1

Comparing these figures with the gross values given previously shows that valuation statistics tend to delay the appearance of current movements in the property market.

Valuers Registration Board. The Valuers Act 1948 provides for the registration of land valuers and 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 encourage competent valuers. Of the 1692 valuers registered as at 31 March 1985, 611 have taken out annual practising certificates for the current year. The majority of the remaining 1081 registered valuers are either employed in government departments, or do not make valuations for members of the public and thus are not required to hold annual practising certificates.

Maori land

Before European settlement, all land was held by the various groups and tribes of the Maori people in accordance with their traditional customs and usages, and the land remaining in this tenure is termed Maori customary land. By the Treaty of Waitangi the right to purchase land from Maoris was reserved to the Crown. Almost all of what had been Maori customary land was converted to other forms of title by one or other of the following processes: (a) purchase or other acquisition by the Crown (from whom the European colonists obtained land for farms, etc.); (b) the issue of a Crown grant to a Maori owner on the recommendation of the Maori Land Court; and (c) 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 in titles issued under processes (b) and (c) became known as Maori freehold land. A Maori may buy or otherwise acquire land which is not Maori freehold land, i.e. general land, and for this reason there is an unknown but considerable amount of general land owned by Maoris in addition to their holdings of Maori freehold land. The area of Maori freehold land in New Zealand is over 1 300 000 hectares. Maori freehold land is subject to the jurisdiction of the Maori Land Court pursuant to the Maori Affairs Act 1953 and some general land owned by Maoris is subject to certain provisions of that Act.

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. 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 including in certain cases, determining entitlement to, and vesting in persons entitled, the beneficial interests of deceased owners., in Maori freehold land.

The Maori Appellate Court consists of any 3 or more Judges of the Maori Land Court, provided that 2 Judges at least shall concur in every decision of the court. With certain exemptions, the Appellate Court determines appeals, whether on law or on fact, from all final orders of the Maori Land Court.

Maori land development and rural lending. One of the principal functions of the Board of Maori Affairs is to encourage the development and use of Maori land for the benefit of the Maori owners. This is done in 2 main areas.

Development schemes—Part XXIV of the Maori Affairs Act 1953 allows Maori landowners to vest the control of their land in the Department of Maori Affairs, which in turn carries out the development programme. The debt associated with the development is charged against the land, and is ultimately recovered from the farming operations before return to the owner's management, usually as Trust or Incorporation. As at 30 June 1985, 77 stations were being developed in this way. Total grassed area was 59 700 hectares carrying 489 000 sheep and 35 400 cattle. In addition, some 320 hectares was being developed into horticulture.

Rural lending—The Board of Maori Affairs also approves of normal mortgage finance being made available to assist Maori farmers, Trusts and Incorporations, in the agricultural and horticultural areas. Substantial increases have been made in the utilisation of suitable Maori land for horticultural development in recent years.

14.2 Public lands

There are 5 million hectares of Crown land which are held under lease or licence by individuals for farming or other purposes. Land permanently set aside for national parks and public reserves comprises 2.8 million hectares. The Department of Lands and Survey is also developing 0.59 million hectares of land, of which 0.33 million hectares is intended for subdivision and settlement as individual farms. There are also 3.5 million hectares of natural and planatation State Forest.

Crown land

Crown land is administered under the Land Act 1948. The Minister of Lands is charged with the administration of the 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 Deputy Director-General of Lands, the Fields Director of the Department of Lands and Survey, and not more than 4 other private members appointed by the Minister. In addition, at the mediation of the Minister, 2 representatives of scientific, conservation, and recreation interests sit on the board, but do not have voting rights. The Land Settlement Board is required to appoint 1 or more land settlement committees for each land district, and 20 of these committees have been set up. Each committee consists of the Commissioner of Crown Lands for the land district as chairman and 2 private farmer member. In addition, the board has appointed to each committee associate members, who are called upon to assist when a particular type of farming activity, or matters of scientific, conservation, or recreational significance are to be considered. The Land Settlement Board, through the Department of Lands and Survey, disposes of Crown land according to its classification under the Land Act 1948 i.e., farm, urban, commercial, industrial, and pastoral. The demand for rural land, particularly farm land, is significant.

Disposal of Crown Land. Crown land is offered for disposal to the public by the following methods:

Public application: Offering at fixed price or rental value based on the current market value of the land. The successful applicant is, if there is more than I applicant of equal merit, determined by ballot.

Tender: Offering at an undisclosed minimum price or rental value.

Public auction: Encouraging optimum competition.

Preferential allotment: In exceptional circumstances the land can be disposed of without competition at conditions fixed by the board.

In the past the greater proportion of offerings have beer, by way of public application. Although there has always been scope for disposals by auction or tender, until recently this has been the exception rather than the rule. Apart from offerings of developed rural land under the Land Settlement Scheme the recent trend has been for land to be publicly offered by way of tender or auction in accordance with Government policy of maximising returns.

Crown land may be selected on a variety of tenures according to its classification under the Land Act 1948 as follows:

  1. Land classified farm land, urban land, commercial or industrial land—on optional tenures:

    1. Renewable lease—Term: 33 years, perpetually renewable with annual rent (4.5 percent of value of land exclusive of improvements) being renewable 11-yearly. Except where otherwise provided, right of acquiring the fee simple.

    2. Cash.

    3. Deferred payments: Minimum deposits 3 percent but the board has fixed deposits which vary according to classification from 20 percent for rural and residential land to 50 percent for commercial and industrial land. Terms range from 5-30 years and interest portion of charge payable at current rates.

  2. Pastoral land—

    1. On pastoral lease for a term of 33 years, perpetually renewable but with no right of acquiring the fee simple. Annual rent renewable 11-yearly. Annual rent is charged at 2.25 percent of land value exclusive of improvements, and assessed on pastoral farming use. Where leases have been reclassified as farm land, rent is charged at 4.5 percent of the land value, exclusive of improvements, on renewal. The rent for the first 11 years of renewed leases is 1.5 percent and increases to 2.25 percent at the first review.

    2. On pastoral occupation licence for a term not exceeding 21 years with no right of renewal or of acquiring the fee simple. Rental and conditions determined by the board. Both tenures confer rights of pasturage only.

  3. Tenures not restricted by classification:

    1. On special lease for terms up to 33 years with or without perpetual rights of renewal and acquiring the fee simple. Rental and conditions determined by the board.

    2. Short tenancies for grazing or other purposes for a term not exceeding 5 years. Rental and conditions determined by the board.

Table 14.11. CROWN LAND ALLOCATED 1984-85

TenureNumberTotal Area AllocatedPurchase Price or Annual Charges

* Year ended 31 March.

Source: Department of Lands and Survey.

  hectares$(000)
Freehold (cash sales)2057493,295
Renewable leases7623,356379
Pastoral leases and licences412,270-
Deferred-payment licences33530,883687
Special leases (s. 67 Land Act)2281112
Licences to occupy2745,53661
Leases of endowment and other lands48131317
Licences for removal of minerals2--
                 Total 1984-85*96674 9184,451
                 Total 1983-84*1 09467 7472,106

Table 14.12. LEASES AND LICENCES UNDER LAND ACT 1948

TenureLeases and LicencesAreaAnnual RentAnnual Instalments*

* Including improvement loading.

Source: Department of Lands and Survey.

 No.hectares (000)$(000)$(000)
Renewable leases4,279420,9303,16462
Pastoral leases and licences4002 661 0551342
Special leases75777,15344813
Deferred-payment licences10,1101 415 189-13,682
Miscellaneous leases and licences134--
Licences to occupy3,759120,929588-
Leases of endowment and other lands55594,65040585
Licences for removal of minerals161--
                 Total as at 31 March 198519 8774 789 9414,73913,844
                 Total as at 31 March 198420 6774 834 941x4,74113,590

Current leases and licences subject to Acts other than the Land Act 1948 total 5619, over 245 264 hectares. Total rent collected is $557,242 and instalments (including improvement lending of $23,331).

Table 14.13. LEASES AND LICENCES UNDER LAND ACT 1948, FREEHOLDED

Method of PaymentCrown LandsAreaPurchase Price

* Year ended 31 March.

Source: Department of Lands and Survey.

 No.hectares$(000)
Cash481870484
Deferred payments18930,4207,124
                 Total 1984-85*23732 2907,608
                 Total 1983-84*21328 4596,128

Land development and settlement. The Land Settlement Board was constituted in 1948 and is responsible for the administration of land policy and the development and settlement of Crown land through the Department of Lands and Survey. The development of land in preparation for ultimate subdivision and settlement of farm units involves clearing, cultivation, grassing, fencing, the erection of essential improvements, and the installation of water supplies under a development programme undertaken annually. As at 31 March 1985 some 331 465 hectares were under development by the Department of Lands and Survey for eventual settlement. It is expected to yield an estimated 790 farms for settlement by landless farmers before the turn of the century. The major development districts as at 31 March 1985 were Southland with 120 315 hectares; Rotorua-Taupo district, 52 904 hectares; North Auckland, 52 709 hectares; Gisborne, 22 205 hectares; and Otago, 20 283 hectares.

Despite the state of the economy and the need to reduce expenditure, the Government has maintained a settlement programme over recent years. Where suitable properties are available consideration will be given to purchase for medium- or long-term development in conjunction with adjoining Crown land. The policy of making funds available annually for the purchase of sheep and cattle properties has been discontinued, but the situation is likely to be reviewed when the existing land bank has been reduced.

National Publicity Studios

In 1981 a settlement target of 70 units was established as part of an accelerated settlement policy, and this was achieved in ensuing years up to 1984-85 when the farms were withdrawn from selection. This withdrawal was largely as a result of an increase in rural interest rates which had a major impact on the viability of farms under offer. While it was hoped that settlement would resume in 1985-86, the economics of farming were such that viability of farms and success of settlement could not be resumed Development of land holdings has not been affected by the non-settlement of farms, and limited acquisition for development and settlement have continued. From the inception of the settlement programme in 1941 to 31 March 1985 a total of 4825 ex-service personnel and civilian settlers have been settled on farms of their own. The aggregate area of the farms has totalled 826 362 hectares. The units settled include horticulture, market garden, deer and Crown land offerings of rural workers and stepping-stone farms.

Over recent years the Department of Lands and Survey has continued to diversify its farming operations. The fields in which it is currently involved include angora goat farming, deer farming, exotic sheep and cattle breeding, citrus fruit growing, grape growing, raising olive trees, and similar operations.

On its 161 development blocks the department runs a total flock of 985 000 breeding ewes, a herd of 53 000 breeding cows, as well as a number of dairy herds, angora goats, Saanen goats and deer.

Screening for twinning large numbers of ewes and for progeny weight gain of large numbers of cows has enabled flocks and herds to be established at a number of locations. The quality of these herds and flocks has been constantly improved by rigorous culling based on both performance records and appraisal for physical faults. Rams and bulls with proven genetic background have gone back to the department's blocks with a resultant substantial improvement in overall livestock production. A limited number of rams have been offered for public sale. Sires from stud herds of Simmental and Santa Gertrudis have been publicly offered and men from the elite herds is marketed. The department is probably unique in its ability to screen such large numbers of ewes and cows and select for performance traits.

The department has the largest registered angora goat stud in New Zealand. Special annual sales of registered and graded-up stock have been held since 1979, and at the 1986 sale 326 bucks and does were sold at just over $1,790,400.

In association with the New Zealand Forest Service the department has established joint agriculture/forestry ventures operating in North Auckland, Hawke's Bay, Canterbury and Otago. This concept in New Zealand involves the grazing of stock among widely spaced trees. The department has also entered into a joint cattle grazing scheme with the New Zealand Forest Service within existing exotic production forests. The multiple benefits expected from this scheme are: control of woody weeds and pampas grass within the forest which has supressed tree growth by up to 20 percent; substantial savings in the cost of hormone weed control; and fattening of cattle on planted legumes.

National parks and reserves

Natural areas retained at a time when much of New Zealand was relatively unmodified are still available today in the form of national parks, and other protected areas. The national park system in New Zealand had its origin in 1887 when Te Heuheu Tukino and other Maori chiefs gave the Crown the summits of their sacred mountains of Ruapehu, Ngauruhoe, and Tongariro which provided the nucleus of the first national park, Tongariro, and was formally constituted by Act of Parliament in 1894. Special legislation in 1900 established Egmont as a 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”. The Public Reserves, Domains, and National Parks Act 1928 and the National Parks Act 1952, which have been the stepping stones for national park legislation, have now been superseded by the National Parks Act 1980. The 1980 Act established a National Parks and Reserves Authority as an independent statutory body comprising 10 people representing private organisations and the public. Four members are appointed by the Minister of Lands from public nominations; 1 member each representing the Royal Society of New Zealand, the Royal Forest and Bird Protection Society, and Federated Mountain Clubs of New Zealand (Incorporated) on the recommendation of each organisation; and 3 members are appointed after consultation with the Minister of Tourism and the Minister of Local Government. The authority has general oversight and responsibility for the formulation of policy and management planning for national parks and reserves of national importance, and the Department of Lands and Survey looks after the day-to-day administration as well as servicing the authority and boards. At district level, 12 National Parks and Reserves Boards have been set up to have general oversight for the management of national parks and reserves of national importance within their specific region. Each board has 10 members appointed by the Minister of Lands after public nomination and consultation with the authority, but in the case of the Tongariro/Taupo and Taranaki Boards one member of each board is appointed to represent the Maori people who donated parts of Tongariro and Egmont National Parks to the Crown. Nominations are considered on the basis of the individual's special knowledge or interest in matters connected with the policy for, and management of, national parks and reserves. Also taken into consideration are the nominated individual's interest in regional or community affairs, tourism, recreation or conservation. Rangers on the staff of the Department of Lands and Survey are responsible for development, protection, interpretation, and management in each park. The status of national park land cannot be changed except by Act of Parliament.

New Zealand's 10 national parks, cover 2 272 059 hectares (or approximately one-twelfth of the country's land area) of beautiful or unique natural features and scenery. Accommodation, transport, and other services in or near the parks are provided by the Department of Lands and Survey, 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 plants, and animals or for the welfare in general of the parks”. Access to “specially protected areas” constituted under the Act is (if the circumstances warrant) by permit only. 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 plants, and animals are preserved, and introduced plants and animals exterminated.

Development permitted by the National Parks Act includes the erection of houses for rangers and park staff, and the provision of camping grounds, huts, hostels, accommodation houses and other buildings, ski tows and similar facilities, parking areas, roading and tracks. In “wilderness areas”, established in terms of the Act, development is restricted to foot-track access and the erection of huts for essential wild animal control operations or to facilitate scientific research. 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, 3 are in the North Island and the remainder are in the South Island. Brief descriptions of the national parks are given below.

Urewera National Park. (212 672 hectares, established in 1954), surrounds the beautiful Lakes Waikaremoana and Waikareiti. As the traditional home of the Tuhoe, “the Children of Mist”, it is rich in Maori folklore. 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. (78 651 hectares, established in 1887), includes the 3 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 2 other focal points of the park.

Egmont National Park. (33 543 hectares, established in 1900), contains one of the world's most symmetrical mountains, 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. Since 1986 the Maori name of the mountain, “Taranaki”, has been officially recognised, with the English name, “Egmont,” as an alternative.

Abel Tasman National Park. (22 541 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. (96 121 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 beechforest-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. (99 270 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, snowgrass-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 and Westland National Parks. (69 923 hectares, established in 1953 and 117 547 hectares, established in 1960) share a common boundary along the main divide of the Southern Alps. Westland National Park stretches from the divide to the Tasman Sea. Their magnificent alpine scenery, containing almost all of the 27 peaks over 3050 metres in height, includes New Zealand's highest mountain, the 3764-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 in length one of the longest outside polar regions), Franz Josef and Fox, to hot springs, placid lakes, the subtropical luxuriance of the rain forests, and a nesting colony of fur seals.

Mount Aspiring National Park. (289 505 hectares, established in 1964), is a complex of impressive glaciated mountain scenery which includes the headwaters of 7 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 3036-metre Mount Aspiring, a 4-ridged peak rising from the Bonar Therma Volta ice shelf, and the country's highest peak outside Mount Cook National Park.

Fiordland National Park. (1 252 297 hectares, established in 1905), is one of the largest 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 snowcapped peaks, and Te Anau. The park is the only known habitat of 2 flightless birds, the takahe (notornis) and (except for a small colony on Stewart Island) the kakapo.

In addition to the national parks there are large numbers of reserves including scenic reserves, recreation reserves (many of these are designed primarily for organised sport), historic reserves, and nature reserves. There are also 3 maritime parks.

Reserves

The main 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 and the Local Government Act 1974. The Land Act 1948 enables land owned by the Crown, including foreshore areas, to be reserved for any purpose desirable in the public interest, while under the Local Government Act 1974 local authorites are charged with ensuring that adequate provision is made for public reserves on subdivisions of land.

The current legislation governing the administration, management, and control of reserves is the Reserves Act 1977. This Act established 7 distinct categories of reserves, each with its own management requirements. The 7 categories are: recreation, historic, scenic, nature, scientific, government purpose, and local purpose. In addition there is provision to declare any reserves of national or international significance to be national reserves, which can be revoked only by Act of Parliament. All reserves are currently being classified into the above categories. The classification process will take some time to complete but considerable progress has been made. Until finally classified, ail reserves are to be administered for the purpose of their existing reservation.

Scenic reserves. Scenic reserves, of which there are 1113 with an overall area of 359 722 hectares, are set aside to preserve features or areas of scenic interest such as native forest, limestone and glowworm 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 small 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, 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 the reserves are preserved as far as possible in their natural state “in the public interest” and for the “benefit, enjoyment, and use 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 with particular emphasis on the Taupo basin in the wake of power scheme works. A nursery has also been established at Home Creek in Southland to service requirements for the South Island.

Land of special scenic interest may, while remaining in private ownership, receive the benefits of preservation and protection of the Reserves Act 1977 through being declared private protected land. Areas which have received such protection 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. There are 153 areas of historic interest totalling 2570 hectares set aside as historic reserves. 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.

Scientific reserves. These are generally smaller areas reserved to protect scientific examples of rare or endangered fauna and flora for scientific research and education. There are 39 such reserves comprising 3604 hectares. The Minister of Lands may prohibit entry to scientific reserves if this is considered necessary and may also permit them to be manipulated to gain further scientific knowledge.

Nature reserves. Land is reserved for bird sanctuaries, for the preservation of flora and fauna, or some similar purpose in cases where the land provides a habitat for bird or plant life of such importance that some control on public access is desirable. In all there are 50 reserves in this category with a total area of 185 361 hectares. Some of them are mainland areas, but most are off-shore 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 hero colony in South Westland; and Taiaroa Head albatross colony near Dunedin.

All New Zealand's subantarctic islands, are reserved for nature purposes and provide a habitat for marine mammals and millions of sea birds. The reserves include the Auckland Islands, Campbell Island, Bounty Islands, Antipodes Islands, and Snares Islands. To the north of New Zealand, most of the land in the Kermadec Islands is similarly reserved.

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.

Marlborough Sounds Maritime Park. This park was established in 1973 and is subject to the Reserves Act 1977. 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.

Bay of Islands Maritime and Historic Park. This park was established in 1978 under the provisions of the Reserves Act 1977. The park provides for co-ordinated management of existing scenic, historic, recreation, and other reserves located within the coastal region, stretching from the Whangaroa Harbour in the north to the Whangamumu Harbour in the south, and includes many reserves on the mainland in and around Kerikeri and Russell and on many of the adjacent islands.

Wildlife reserves. There are 3 classes of wildlife reserves, namely wildlife sanctuaries, wildlife refuges, and wildlife management reserves. These may be proclaimed over land of any tenure, and any such proclamation prohibits only certain actions in respect of wildlife but does not affect the land ownership. In addition, any of the 3 classes may be declared in respect of lands of the Crown. In such cases the declaration is made pursuant to the Land Act 1948, thus conferring upon the lands reserve status pursuant to the Reserves Act 1977 and the provisions of the Wildlife Act 1953 relating to wildlife refuge and reserves and wildlife management reserves.

Wildlife sanctuaries—The role of wildlife sanctuaries is to protect fragile wildlife habitats from the effects of entry by humans or animals; and protection of wildlife species which are low in numbers regionally or nationally, or are confined within a small number of habitats which are sensitive to disturbance. The major administrative and management objective is the total or partial exclusion of the public from such areas. Written permits to enter a sanctuary are required from the Secretary for Internal Affairs. At present there are 15 wildlife sanctuaries, covering 424 hectares all but 3 of which are oil off-shore islands, while 1 wildlife sanctuary reserve covers 4400 square metres.

Wildlife refuges—This status is given to wildlife habitats which provide havens for any classes of wildlife, and also to provide a means of signifying the importance of a wildlife habitat which for any reason may not be otherwise protected through acquisition or similar measures.

The primary management functions are to carry out habitat maintenance, and to allow the public freedom of access, except that firearms and domestic animals are prohibited. At present there are about 131 wildlife refuges proclaimed over approximately 74 000 hectares, while a further 13 wildlife refuge reserves covering about 3299 hectares exist.

Wildlife management reserves—The object of this class of reserve is similar to that of wildlife refuges, but the primary management functions are to protect areas for the conservation and management of wildlife and providing areas for public appreciation of wildlife. This allows freedom of public entry together with a variety of activities, including the hunting of game species of wildlife.

At present there are about 142 wildlife management reserves covering approximately 11 400 hectares.

Recreation reserves. Recreation reserves, including public domains which are now categorised as recreation reserves administered by the Department of Lands and Survey, number 817 covering 26 434 hectares. These provide for the recreational needs of the people as a whole. While many such reserves are designed primarily to provide for organised sport there are a large number which preserve for public use attractive and natural areas, particularly along the coastline, and provide facilities for camping. Some outstanding examples of coastal reserves 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. Widely known city reserves are the Auckland Domain and Hagley Park, Christchurch. Native bush is protected on reserve land.

Table 14.14. 14.14 AREAS OF RESERVED LAND SUMMARISED*

Type of ReservationNo.Hectares

* As at 31 March 1985.

Source: Department of Lands and Survey.

National parks102 172 554
Scenic reserves1,113359,722
Historic reserves1502,570
Nature reserves50185,361
Recreation reserves1,72240,878
Scientific reserves393,604

Queen Elizabeth the Second National Trust. The Queen Elizabeth the Second National Trust was established in 1977 to encourage and promote the provision, protection, and enhancement of open space for the benefit and enjoyment of the people of New Zealand. In most cases the trust deals with land in private or non-government ownership, as an independent and permanent trustee. A principle function is protecting privately owned land through purchase, accepting gifts of land, and through open space covenants. Other functions are to encourage and promote co-ordination of the activities of government departments, local authorities, individuals, and organisations in matters relating to open space. It also acts as a catalyst, e.g. to a co-ordinated purchase of land. The trust also has educational and advisory roles.

The trust is administered by a board of 10 directors, 3 of whom (including the chair) are appointed by the Minister of Lands, 2 by election by the members, and 5 by the Minister after consultation with Federated Farmers of New Zealand Inc., the New Zealand Maori Council, the New Zealand Counties Association Inc., and the Municipal Association of New Zealand Inc. Board meetings are attended by the permanent heads of the Departments of Lands and Survey, Internal Affairs, Maori Affairs, the New Zealand Forest Service, the Ministry of Works and Development, and the Commission for the Environment. There is individual, corporate, and life membership.

The promotion and negotiation of open space covenants is an important aspect of the trust's work. Open space covenants are legal agreements between the trust and a landowner or leaseholder to protect special landscape features for a specified time or, more usually, in perpetuity. They are almost always owner initiated. From 803 enquiries, 466 applications for convenants have been approved by the board, and 130 are registered, protecting over 10 000 hectares of open space. This includes wetlands, lakes, peat lakes, coastline, tussockland, tracts of rural landscape, archaeological sites, geological formations, forest, and forest remnants.

Accepting and managing donations, bequests, and gifts of land are the other means by which the trust can help private landowners protect their land. It now owns several valuable properties such as Hollard Gardens in Taranaki, the Jackson farm in Southern Hawke's Bay, and the Robert Houston Memorial Reserve in Waitomo. The trust is also able to purchase open space, such as Taupo Swamp north of Wellington and the Lake Wainamu Scenic Reserve in the Waitakeres, Auckland, which were purchased in co-operation with other organisations and private individuals. Other activities include landscape awareness projects, establishing demonstration farms to show how landscape design and planning can be combined productively with farm management, and protection of wild and scenic rivers. The National Trust acts independently from Government as a statutory trustee with increasing responsibility for the care and management of privately-owned land.

New Zealand walkways. The purpose of the New Zealand Walkways Act 1975 is to establish walking tracks over public and private land so that the people of New Zealand can have safe, unimpeded foot access to the countryside for the benefit of physical recreation, as well as for the enjoyment of the outdoor environment and the natural and pastoral beauty and historical and cultural qualities of the areas through which they pass. To promote, supervise and co-ordinate this development, the Act constituted the New Zealand Walkway Commission and charged it with the responsibility for walkway administration, with power to delegate duties to 12 district walkway committees, 1 for each land district constituted under the Land Act 1948, and also to other controlling authorities. In recognition that public, local authority, government agency, and private lands would be used for walkways, the composition of the commission was structured accordingly, with the members of the commission being the Director-General of Lands (chairman), and the Director-General of Forests, and a representative each of the Municipal Association of New Zealand, the Counties Association of New Zealand, the New Zealand Council for Recreation and Sport, the Federated Mountain Clubs of New Zealand, and the Federated Farmers of New Zealand. Similar representation composes each district walkway committee. Between the commission's inception in 1976, and 31 March 1985, a total of 118 walkways having a combined length of over 1000 km were opened for public use. There are also numerous urban walks established by local authorities which are regarded as being complementary to the New Zealand Walkways System. These will not be brought under the provisions of the New Zealand Walkways Act 1975 unless it is the wish of the local authority.

Forest land

In addition to forest set aside in national parks, about 4 million hectares of land valuable either for timber production, recreation, or forest growth vital to soil and water conservation have 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 forest industries based on these plantation forests, and a limited area of indigenous or natural forest that is used for production, are described in chapter 16. About three-quarters of the forest area of 7.2 million hectares is classed as protection forest. This is mainly Crown-owned indigenous, or natural 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 natural forests only in about 1 million hectares is wood production feasible. However, over much of this area this option has been set aside in favour of long term maintenance of the forest for other values. Increased use of timber from plantation forests has enabled the rate of cutting in State natural forests to be greatly reduced, allowing emphasis to be placed on the management of natural forests for sustained wood yield or as reserved natural stands. A lower cutting level is also evident in privately-owned natural forests.

Management of State forests. As well as production forestry the management activities of the New Zealand Forest Service are directed towards protecting, conserving, and perpetuating the remaining natural forests of the country. Spreading awareness among the general public of the human and physical environment has brought the management of the remaining natural forests under critical examination. In 1976 a new policy covering State natural forests was approved by Government. It provides principles to guide the future use and management of these forests, giving due regard to sound forestry practices, the wishes of the public, and social and economic welfare on a regional and national basis. To manage forest land on the basis of balanced 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. The values identified first in forest zoning are soil and water conservation and biological significance. Scenic appeal, potential for recreation, and wood production values are considered subsequently. This policy was given specific effect in 1978 with the release by the Government of more detailed policies covering the 2 most important remaining natural forest regions—the West Coast, and the Central North Island—and these have been followed by detailed management plans for both regions. In both instances, reductions in allowable cut have been made to provide for ecological reserves and management of the productive forests on a sustained or long-term periodic-yield basis. However, there has been a continuing rapid change in public attitude to the use of natural forest for wood production and the policies decided in 1978 are now under review.

Stabilisation of sand dunes. This aspect of the Forest Service's work has a twofold objective—the stabilisation of dunes for the protection of agricultural and pastoral land, and the establishment of production forests. The Forest Service plants marram grass and 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. A most successful co-operative venture is under way in 2 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.

Stabilisation of eroding farmlands. A consequence of past forest clearing for farm land on some unsuitably steep areas has been accelerated water run-off and erosion. Widespread landslipping, aggradation of riverbeds, and subsequent flooding have been sufficiently severe to require remedial works in which reafforestation plays a major part. Afforestation commenced in the East Coast-Poverty Bay area in 1962 following detailed land use studies. The forests established in critical headwater areas are now realizing their productive value.

Protection forests. The vegetation of the mountainous areas—forest, scrub, and alpine grassland—is of the highest importance to the welfare of New Zealand. Many rivers that bring water to the 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 rain and are mostly formed of rock that erodes easily when exposed to rain, wind, and frost. The blanket of montane vegetation protects the thin soil layer and stabilises rocky slopes. This 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 a good cover of vegetation on catchments to ensure the most stable stream flow possible.

Browsing animals that were introduced into the forest and mountain lands many years ago (and, in the absence of natural enemies and limiting climate, multiplied excessively) are the major threat to the continued protective function of the vegetation of these areas. Consequently the first step in the effective management of these areas is control of the numbers of these animals to a level that will allow an adequate vegetative cover to grow and persist.

Techniques to assess 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 are undertaken by the Forest Service and other agencies in support of management of protective forest lands.

Recreation in State forests. Most State forest is available for public recreation without permit, restricted only by consideration of the safety of the resource and of the public itself. Limitations apply principally at times of high fire danger, or in large industrially oriented plantations where recreational opportunities are few. All State natural forest is available for recreation and its provision is a high priority management goal. This goal is particularly important in the 21 forest parks and 20 recreational areas, which cover some 2 203 000 hectares.

Many State forests offer scope for recreation in surroundings of great natural beauty—for study of plant and animal life; for challenging tramping; and for shooting and fishing. Most of the forested hill country is managed primarily for soil and water conservation with which recreational use is almost always compatible. Private hunting can be of benefit in destroying wild animal pests. Nine recreational hunting areas in which there is a special management objective of maintaining hunting opportunity, have been gazetted and several more areas are being investigated. Provision for recreation 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 huts. Entry on foot is unrestricted except that, in the interests of public safety, persons carrying firearms require permits from the Forest Service. The older plantation forests, 2 of which are forest parks, also offer many attractions and have the advantage of accessibility. In many there are walks and picnic spots for the public and harvesting is managed carefully to maintain landscape and recreational values.

Conservation and protection of scientific values. In 1985 the State Forest Scientific Reserves Advisory Committee which advised the Director-General of Forests on the selection of reserves in State forests and their subsequent management and research, was replaced by the Protected Areas Scientific Advisory Committee which has the same function for all lands of the Crown. There are 14 sanctuaries (16 300 ha) created to preserve indigenous flora and fauna in their natural state for their scientific values. The basic aim in administering forest sanctuaries is that natural processes dominate management, no plants may be taken or destroyed, no leases or privileges over the land or over the forest produce can be assigned, and public use is restricted whenever entry is likely to affect the value for which the sanctuary was created. There are 96 dedicated areas, totalling over 174 362 hectares, set apart for the purposes of protection and maintenance of the land for specific purposes. Dedicated areas are State forest land which have some special natural value or management objective which needs to be protected. The majority are ecological areas set apart as being representative of regional forest ecosystems. Further areas are awaiting formal dedication and meanwhile are being managed in an appropriate manner.

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. Native forests are fairly fire resistant but can become fire-risks in drought conditions. However, the major risk occurs in the plantations of introduced conifers.

The fire-protection organisation of the New Zealand Forest Service operates over the entire country, covering State forests, forests on other Crown lands, scenic reserves, national parks, and all other State areas. The Forest Service also gives support to other rural fire authorities, particularly those with high country fire hazards. 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 monsoon buckets, has been adopted to deal with fire outbreaks.

When weather or other conditions may lead to the start of forest or rural fires and 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, and take charge of an area so endangered by declaring a regional fire emergency. Fire danger ratings are assessed by the use of the Fire Weather Index, a system adapted from Canada and put into effect in New Zealand from 1980-81. The Forest Service also has infrared equipment which can detect hidden hot spots when used from either a helicopter or ground vehicle. Once hot spots are found, following fires or controlled burns, they are dealt with by ground crews, thus preventing the sudden reactivation of fires.

The Forest and Rural Fires Act 1977 provides for a nationwide fire control system (involving all fire authorities), affords private forest owners the opportunity for protection identical with State areas, and sets up a mediator to deal immediately with any controversy.

Wild animals—Under the Wild Animal Control Act 1977 the Forest Service is responsible for the control of deer, goats, chamois, tahr, and other introduced wild animals on all lands where uncontrolled numbers of these animals can cause damage to vegetation, soils, water and wildlife. On farm land, control of agricultural pests (rabbits, possums and wallabies etc.) is the responsibility of the Agricultural Pests Destruction Council.

The widespread populations of many of these animals have a serious effect on the growth of trees and ground cover in plantation forests as well as in protection forests. The forest floor of ferns, mosses, and shrubs has been extensively damaged by deer and goats, while the upper storey is adversely affected by the canopy feeding possums.

In some areas where a reasonable ecological balance has developed, introduced animals are now regarded as a resource which is able to be controlled and exploited by the deer farming, game meat, tourist safari hunting, and possum fur producer industries. Feral deer are captured alive to stock deer farms in New Zealand. Commercial helicopter hunting recovers venison for game meat exports. Feral possums are captured alive to stock fur farms in New Zealand and support trapping for fur-skin export markets. The creation of recreational hunting areas, safari hunting high country stations, and big game farms, has provided a way to control wild animals and at the same time provides sports people with areas exclusively for recreational hunting.

Control of insects and disease—In conjunction with private enterprise, the New Zealand Forest Service has organised joint spraying operations to control the pine needle blight Dothistroma pini. Aerial spraying of a copper fungicide is an effective means of dealing with the disease. Radiata pine has been bred in a seed programme to resist Dothistroma. Increasing research is being directed towards the debilitating effect of Swiss needle cast (Phaeocrypiopus gaeumannii) on the growth of Douglas fir.

Pathologists and entomologists of the Forest Research Institute maintain a constant watch on forests, woodlots, and shelter belts to detect incipient epidemics in time for effective control measures to be taken. Much information is accumulated 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 manufactured items, wooden packing, and ship's dunnage entering or leaving the country.

Finance of State activities. More money is spent on establishing and tending State forests than is obtained in revenue from these forests. Expenditure by way of general administration of forestry is met in full from taxation, as distinct from the development of State forests, which is financed from national development loans.

Table 14.15. SOURCES OF STATE FOREST FINANCE

Source1980-811981-821982-831983-841984-85

Source: New Zealand Forest Service.

 $(thousand)
Consolidated Account expenditure193,877236,084258,833281,493369,687
Less receipts101,501111,262115,806123,301159,081
Required from Consolidated Account92,376124,822143,027158,192210,606
Net finance required from Government funds92,376124,822143,027158,192210,606

14.3 Environmental and resource management

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. New Zealand is at present undergoing complex structural change with high resource costs and pressure on financial resources, and therefore a need for more careful selection of investment, even though demand has slackened. 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.

Framework for planning

New Zealand's principal planning legislation, the Town and Country Planning Act 1977, provides a process by which needs, opportunities and issues relating to land and water use can be identified and appropriate objectives and policies formulated. Measures can then be embodied in regional, district, and maritime planning schemes. The purpose of planning is defined in the Town and Country Planning Act 1977 as being “the wise use and management of the resources, and the direction and control of the development of a region, district, or area in such a way as will most effectively promote and safeguard the health, safety, and convenience, and the economic, cultural, social, and general welfare, of the people and the amenities of every part of the region, district, or area”. Opportunities for public participation in town and country planning are broad and include any body or person representing some relevant aspect of the public interest.

In the administration of district planning schemes, there must be regard to section 3 of the Act which includes specific reference to the protection and enhancement of the environment as a matter of national importance. In considering appeals against any public work the Planning Tribunal is required to consider whether the site is suitable for the proposed work, and the economic, social, and environmental effects of the proposal. All public bodies, including the Crown, are required to adhere to the provisions of any approved regional planning scheme. All public works are subject to the procedures laid down in Part VI of the Act, which requires that all Crown proposals which are not in conformity with the provisions of the relevant district scheme are to be advertised and to be subject to rights of objection and appeal. In the case of Crown works, the Minister of Works and Development can (as an alternative to an appeal) request the tribunal to conduct a public inquiry which must take into account the “economic, social, and environmental effects of the proposal and such other matters as the Minister may determine”.

National planning. In the preparation, implementation and administration of regional, district, and maritime planning schemes the following matters, which are declared to be of national importance, must be recognised and provided for: the conservation, protection, and enhancement of the physical, cultural, and social environment; the wise use and management of New Zealand's resources; the preservation of the natural character of the coastal environment and the margins of lakes and rivers, and the protection of them from unnecessary subdivision and development; 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; the prevention of scattered subdivision and urban development in rural areas; the avoidance of unnecessary expansion of urban areas into rural areas in or adjoining cities; and the relationship of the Maori people and their culture and traditions with their ancestral land. The first two and the last two of these considerations were introduced under the 1977 Town and Country Planning Act.

Regional planning. Regional planning is concerned with establishing policies and programmes at all levels of government which reflect the needs and desires of the people of each region, and which are reconciled with the national interest and competing demands for national resources. Urban centres and rural areas cannot be planned in isolation from each other or from the nation as a whole.

Under the 1977 Town and Country Planning Act regional planning has 4 main features: (a) regional planning is the responsibility of united and regional councils; (b) regional planning schemes are to be approved by the Government before they come into operation; (c) approved regional planning schemes must be adhered to by the Crown and every local and public authority; and (d) district and maritime planning schemes must conform with approved regional planning schemes. Matters to be dealt with in regional planning schemes have been greatly expanded under the Act to embrace social, economic, and environmental policies. Reference is made for example to “natural resources and environment—the identification, preservation, and development of the regions' natural resources including water, soil, air and other natural systems, farmlands, forests, fisheries, minerals ... and areas of value for the enjoyment of nature and the landscape”.

Under the Local Government Act 1974 regional or united councils have been established for all regions of New Zealand, and all have regional planning responsibilities and powers under the Town and Country Planning Act 1977. The combined effect of these Acts is a major constitutional innovation. The regional planning process offers a means by which local and central government, representing the regional communities and the national interest respectively, can reach agreement on development and welfare policies and priorities for the allocation of resources for each region. Agreement can be expressed in the regional planning scheme, and changes of policy can be worked out within the process of changing the scheme. In addition, under Part I of the Town and Country Planning Act 1977, the Minister of Works and Development may extend regional boundaries to include adjacent water areas and this provides for the planning of land and water to be brought together under the same administration. Almost all united or regional councils are having their regional boundaries extended to include harbours and coastal waters. The new system does not introduce another tier of government, rather it is aimed at giving a regional dimension to central government programmes and a common policy base to local government activity.

Regional planning process. The key provision of the legislation is the requirement that once regional schemes have been agreed to by the central government, all public authorities, both central and local, are required to adhere to their provisions. The significance of this step lies in the practical necessity it creates for local and central government agencies to take a constructive part, along with the regional community, in the formulation of the objectives, policies, programmes, and other provisions of each scheme. Responsibility for initiating regional planning action lies with the regional and united councils, which operate through regional planning committees that include a representative of the Crown.

The new regional planning legislation aims to provide a process that allows for the public evaluation of options and alternatives—the determination of objectives and policies, and the adoption of a programme of implementation that is related to community priorities and the resources available.

National policies, or changes in policy, on such matters as energy development, transportation, afforestation, or housing finance can have marked regional implications and significantly affect regional prosperity and well being. It is important therefore that expressed regional preferences and priorities are considered as an integral part of national policy formulation, and that the regional consequences of national policies are understood before they are adopted. Two-way communication between the central government and the regions are a vital element in the new process. The new regional bodies and the regional planning system provide the opportunity for this.

District planning. Every district scheme under the Town and Country Planning Act 1977 is required to have as its general purpose the wise use and management of the resources of the district, and the direction and control of its development, in such a way as will most effectively promote and safeguard the economic, cultural, social, and general welfare of the people and the preservation of the amenities of the district. It must also recognise and provide for matters of national importance defined in the Act. Every city, borough, and county council or other authority responsible for the general administration of a district must provide and maintain a district scheme unless exempted by the Minister of Works and Development. In particular matters to be dealt with in district schemes include the preservation and conservation of the amenities of the district, and buildings, trees, bush, plants, landscapes, objects, or areas of architectural, historic, scientific, wildlife, visual, or other interest.

Councils are now beginning to recognise the potential of the district planning scheme as an effective instrument for bringing about innovative change not only in land use control but also in environmental management and local administration in general. The key to this is the greater emphasis being placed on the scheme statement as a means of expressing policies which have been subjected to the formal approval procedures, including objection and appeal, that the Town and Country Planning Act provides. A renewed concern for a more humane basis to planning has focussed on the destruction of areas of natural beauty near urban areas, the loss of historic areas of cities, and the destruction of neighbourhood communities as past errors which must not be repeated. With this in mind, a number of councils make provision for special character zones. These are zones which have a special character derived from the age, condition, or character of the buildings or general layout. In these zones the aim is to preserve the special character (using controls where necessary) by encouraging new buildings designed in sympathy with the existing environment, and by more liberal approaches to the rehabilitation and use of existing properties. Currently there are also moves towards allowing far greater social and economic diversity in rural areas.

In addition to these zones a number of councils have adopted a variety, of zones which cater for Maori related uses on Maori land, the most prominent of these are the Marae and Papakainga zones. In the first instance, a zone is established which allows for the construction of the Marae itself. The Papakainga zone provides for residential development on Maori land which is generally in multiple ownership. These zones have essentially been created in order to balance the needs of Maoris wishing to build on their ancestral land with other planning requirements.

Maritime planning. The need to plan for areas below mean high water mark, which are subject to increasing pressures from various demands, led to the introduction of maritime planning under Part V of the Town and Country Planning Act 1977. The provisions provide a statutory procedure to establish maritime planning areas on the joint recommendation of the Minister of Works and Development and the Minister of Transport; and to appoint maritime planning authorities. Four maritime planning areas have been established covering the Waitemata, Manukau, and Wellington Harbours, and the Marlborough Sounds. In each case the respective harbour board has been appointed the maritime planning authority. If the maritime planning area is within harbour limits, the appropriate harbour board becomes the authority under current legislation, unless it declines the appointment. The authority is required to set up a maritime planning committee with representation on it from the regional or united council, the regional water board, territorial local authorities, and the central government. Maritime planning schemes are not expected to cover the whole of the coast, but only those areas where there are problems of conservation and management or conflict between the use of the water and adjacent land areas.

Review of planning legislation. The Town and Country Planning Act 1977 is currently under review. This review is being carried out in order to incorporate environmental assessment procedures, to bring public and private development under the same approval procedures and to simplify planning processes. Particular attention is to be paid to the objectives and future operation of town and country planning in New Zealand at regional district and maritime levels. In addition, questions will be raised concerning the social justification and economic cost effectiveness of planning and its procedures. The review will also take into account changes in other related areas of government policy, for example, in regional policy and local government administration.

The National Development Act 1979, which provided an alternative rapid procedure for the consideration of planning questions related to proposed works of national importance, is to be repealed.

Recreational land

New Zealand is fortunate that a large area of native forests was set aside in reserves of various types (climatic reserves, scenery preservation reserves, reserves for the preservation of flora and fauna, and reserves for the growth and preservation of timber). As a result New Zealand is well endowed with forested wilderness and with other native forests having scenic, recreational, and wildlife values. Per head of population, New Zealand probably has a larger area of forests of this type than any other developed country. Colonial land administrators laid the basis for a national park, a forest park, and a protection forestry system which is widely envied.

Many indigenous State forests offer scope for leisure pursuits in surroundings of great natural beauty—for the study of wildlife (plant and animal); for walking and tramping; and for shooting and fishing. 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 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 the 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. In order to avoid the mistakes inherent in haphazard development, the National Parks and Reserves 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 older exotic forests also offer the attractions that only a woodland 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. A related topic is the protection and conservation of bush and trees within urban areas. Not only do trees and areas of bush provide beauty and additional amenities in urban surroundings, but they provide habitats for birds and other wildlife, encourage the cycling of water and nutrients, and assist with erosion control. Local authorities have the power to require that, when land is subdivided, trees and bush areas shall be preserved.

Until recently little was done to secure in public ownership those areas where most New Zealanders take their holidays—by the water. Along the north and north-east coasts, where the climate is best and the population densest, many of the most desirable areas of coastline have already been subdivided, notably on the North Auckland, Fay of Plenty, and Coromandel coasts. Besides limiting public access, this can destroy scenic values. Similar considerations apply in respect of lakes, rocks, and offshore islands. In recent years the Crown has purchased a number of islands or parts of islands for reserve purposes. Some of these are grouped in the Hauraki Gulf and Marlborough Sounds Maritime Parks. Moves are being made to control subdivision in coastal and lakeshore areas. Access along rivers 3 metres wide, lakes in excess of 8 hectares, and foreshores has usually been provided: on all dispositions of Crown land since 1886, on private subdivision for towns near rivers or the sea coast since 1923, and on partitions of Maori land in counties since 1967. Since the Land Act 1948 came into force there has been a requirement to lay off a 20 metre strip above the near high water mark along all the sea coast, including bays, inlets, and creeks, along the margins of lakes bigger than 8 hectares in area, and, with provision for exemptions, along all rivers and streams longer than 3 metres.

Environmental agencies

In addition to the government departments with responsibilities for administering a 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.

Commission for the Environment. The ministerial portfolio for the environment and the Commission for the Environment were established in 1972. The Minister's responsibility is to ensure that the Government has before it the best information available on the environmental aspects of projects and policies under consideration and on the possible effects of current trends on the future environmental well-being of the country.

The commission functions as a small investigatory and advisory agency without executive or management responsibility apart from the administration of the Lake Wanaka Preservation Act 1973. It undertakes studies for the Minster and investigates and makes recommendations on the environmental implications of proposed Government projects and policies. It can have an initiating and co-ordinating role on environmental issues which are assuming new importance in a changing society, or for which responsibility is shared by several management agencies. The commission's overall role is to assist in the development of policies designed to promote 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 1974 and were revised in 1981 require environmental impact reports for all major projects of the central government and for all other projects that need Government approvals or funds. Proposed export of fresh water from Fiordland National Park, the Weavers open cast coal mine extension, a second Waikato coal-fired power station, and 2 gold mining proposals in the Coromandel have been among the projects recently reported on. More than 90 such reports have been subject to commission audit since the procedures came into being.

The procedures (which the commission administers) provide for the critical examination of environmental effects expected from the 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 responsible for promoting the project and is published before a decision is taken on the proposal. The effectiveness of the administration of the procedures was reviewed in 1983.

The National Development Act 1979 and its 1981 amendments require an environmental impact report to be prepared on all Government and private projects which follow the approval procedures of that Act. Under the Act, the Commissioner for the Environment is required to audit such reports and is given independent standing to appear in subsequent hearings. The Petralgas methanol plant, the synthetic petrol plant (both in Taranaki) and the Aramoana aluminium smelter (now idefinitely postponed) are projects so far audited by the Commissioner under this legislation.

Aside from its role under these procedures, in which it is largely reacting to the proposals of others, the commission also initiates studies aimed at drawing attention to important environmental questions facing the country. The possible environmental effects of land use options in the Hokianga, the protection of sections of wild water in the river systems of the country, community noise, landscape quality, waste disposals packaging, and the recycling of paper and waste plastics, are some examples of studies initiated by the commission. Other initiatives are taken in organising discussion groups and seminars on a wide range of issues that often involve bringing together representatives from government departments, agencies industry, and environment groups. The commission has spearheaded the production of a New Zealand coastal atlas, and participated in the formulation of a proposed New Zealand conservation strategy. In addition to the development and production of education resource material for school and community use, the commission has taken part in developing the theory of environmental education, formulating a proposal for a national strategy, and designing education courses.

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.

Liaison between New Zealand and international agencies concerned with environmental matters is a further function of the commission. New Zealand is a member of the OECD Environment Committee and the Commissioner is currently Vice-Chairman. The other major liaison role is with United Nations Environment Programme (UNEP). The commission functions as the national focal point for information requests channelled through INFOTERRA, an environmental information network established by UNEP. New Zealand also participates in a number of other UNEP activities and helped to establish the South Pacific Regional Environment Programme (SPREP) which began operating in 1980. In 1983 a commission officer joined a working party of the Group of Experts on Scientific Aspects of Marine Pollution (GESAMP). The group is evaluating environmental assessment methods in relation to pollution in the coastal environment. The commission is also New Zealand's link with UNESCO's Man and the Biosphere (MAB) Programme. The commission has recently devoted special attention to environmental issues that might arise on the Antarctic continent.

The commission's staff covers a wide range of environmental disciplines but an important feature of its operations is collaboration with other agencies which can supply the expertise required for evaluation of particular aspects of projects.

Environmental Council. The Environmental Council was established in 1970 following the Physical Environment Conference held in May of that year. It reports to the Government through the Minister for the Environment. The constitution of the council provides for 16 members, including the chairperson 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 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: (a) to advise the Minister for the Environment on request 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; (b) to publish from time to time such information upon environmental problems as the council considers necessary to serve the public interest; and (c) to co-operate with other sector councils in matters of mutual interest; in particular, to provide the Planning Council with information, forecasts, and data arising from the above, and requested by the council to enable it to carry out its functions.

The main role of the council is to advise on general matters of policy and principle 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 is involved are energy policy (specifically the environmental implications of an Energy Conservation Strategy), trees in the landscape, environmental economics, environmental administration, the preservation of indigenous areas on private land, and the environmental effects of a nuclear war.

Nature Conservation Council. The Nature Conservation Council provides independent advice on ways of minimising impacts on the natural environment and protecting natural resources. In 1985, the council was involved in over 120 issues, including reclamations, hilltop installations and power schemes, roading, conservation of native flora and fauna, preservation of native forests and wetlands, protection of marine resources, mining proposals and the impact of tourist-related developments on the natural environment.

Conservation New Zealand, which co-ordinates the various Conservation Week activities, is a technical subcommittee of the council. The 1985 Conservation Week theme was “People Need Plants”. Through the active support and participation of a number of firms, government departments and other organisations, the council was able to produce posters, leaflets and other environmental education material. Although intended primarily for Conservation Week, most of the material is still available and can be requested from the council. Conservation Week is planned for August 1986, with the theme “Conserving Our Future”. Another technical subcommittee of council has been set up to develop a national policy for the protection of mangrove environments. A related activity will be the publication in 1986 of a book on New Zealand mangroves, in co-operation with the Government Printer.

The council has advised government on aspects of environmental administration restructuring. One of its main concerns is that its independent advisory and educational roles should continue under the new administration. In early 1986, the council will undertake a survey of public and corporate opinion on its role, functions, powers and other aspects of its activities as set out in the Nature Conservation Council Act 1962. This will serve as the basis for further advice to government on aspects of environmental administration restructuring.

Administrative changes

In 1985 environmental administration was reviewed and the Government proposed a number of changes. The most significant of these was the decision to establish a separate Department of Conservation and a Ministry for the Environment. The Department of Conservation will have the following functions: national parks, reserves and protected natural areas; protected inland waters; wild and scenic rivers, wildlife; historic places; forest parks; and unalienated rural Crown lands not used for agriculture or forestry. The Ministry will enable environmental responsibilities to be brought under one ministerial portfolio and it will oversee environmental policy and actions of other government departments. These changes aim to make environmental administration more co-ordinated and effective. These new organisations will replace existing bodies with responsibilities in the area.

Control of mineral exploitation

The Minister of Energy issues licences under the Coal Mines Act 1979 and the Mining Act 1971 for the exploration, prospecting and mining of coal and minerals. Each licence issued generally contains conditions which restrict the working of the licence, cover rehabilitation requirements and protect the environment. Mineral exploitation on private land, as defined under the Mining Act 1971, may not in some cases require a licence under this Act. However, all gold and silver exploitation must be licensed. If a licence is not required, the operation may come under the Town and Country Planning Act 1977 and under the Quarries and Tunnels Act 1982 for safety requirements.

Water and soil conservation

Problems of flood control have affected New Zealand communities at least since the beginning of European settlement. Wholesale clearing of forested land for pastoral and agricultural production has left a heritage of soil conservation problems, especially in geologically unstable areas. A heavy consumption of water not necessarily reflecting the distribution of resources, demands careful management. Administration of water and soil resources is achieved largely through the Water and Soil Conservation Act 1967, with protection against flooding provided by the Soil Conservation and Rivers Control Act 1941. These Acts are administered by a central policy-making organisation, the National Water and Soil Conservation Authority (NWASCA). NWASCA includes members from counties, municipalities, and catchment authorities; Maori, farming, manufacturing, and recreational interests; and appropriate departments of Government. The main functions of NWASCA are to set broad national policy on water management and soil conservation and to advise the Government through the Minister of Works and Development, who is its chairman, on water and soil matters.

Throughout the country, 20 catchment authorities administer the 1941 Act and, as regional water boards, administer the 1967 Act. The management of water use, control of rivers, mitigation of erosion, assessment of coastal, land slip, flooding, hazardous waste problems, and the protection of scenic and recreational waterways are achieved largely through the 1967 Act and the 1941 Act, by the work of these authorities. Some catchment authorities are directly elected by the people of the region while others are regional commissions of representatives of the local county and municipal councils.

Planning. Catchment authorities and the Water and Soil Directorate of the Ministry of Works and Development are increasingly involved in planning schemes, as water and soil management becomes more complex. Catchment authority and Ministry staff include hydrologists, soil conservators, planners,

engineers, and scientists of many disciplines, in central and local offices. They co-operate with territorial local authorities, regional and united councils, and other public bodies to promote integrated planning which will ensure the best ongoing use of the resources.

Water resources and management. It has been estimated that New Zealand's consumption of water is now over 1900 million cubic metres per year. Households use 210 million cubic metres, industry 260 million cubic metres, and livestock 350 million cubic metres. Larger than this combined is the demand for water for irrigation now estimated at 1100 million cubic metres per year. These figures do not include the use of water for hydro-electric generation which by 1977 had reached over 100 000 million cubic metres per year. Obviously water flowing through hydro station turbines can be used again, and on the Waikato River and its tributaries 10 State hydro stations, and a number owned by local authorities, use and reuse a flow which at Karapiro is over 7000 million cubic metres per year. Thus the total irrigation, agricultural, industrial, and domestic water consumption could be supplied 3 times over by the Waikato River alone, at Karapiro. In terms of total water resources the country has an estimated 300 000 million cubic metres per year. Of course, these are by no means evenly distributed. High mountains, especially in the South Island, create substantial rain shadow areas. In a few areas, annual rainfalls of over 10 000 millimetres have been measured, while in others as little as 340 millimetres may fall in a year.

Most water used in New Zealand is supplied by public authorities. Approximately 87 percent of the population is supplied by public water supply systems. The rest rely on an independent domestic supply (rainwater collecting, aquifer bores, etc.). Industry obtains about 33 percent of its requirements from public supply systems and 66 percent from its own sources.

Water allocation. By the 1967 Act all rights for the use of natural water were vested in the Crown and in general the management and administration of these rights was given to regional water boards to carry out on behalf of the Crown. Those wishing to use water for anything except domestic and stock purposes, or wishing to discharge wastes into natural waters, require a water right from the regional water board. The boards are thus able to ensure that available supplies are not overtaxed. Several boards have commenced studies of the total water resource in major catchments within their districts to assess the availability of the water resources and present and future demands on the resource.

In this process of water allocation planning, the public is given the opportunity to participate. The goal is the preparation of a water allocation plan for each region. This provides a framework within which a regional water board will operate when considering applications for rights to water. It also provides a guide to existing and prospective users of water regarding the manner in which their rights to water may be reduced in times of water shortage.

Maintenance of water quality also comes within the purview of regional water boards. Some waters of New Zealand have been classified. A classification fixes the minimum standards of water quality and provides a permissible range of water quality within which regional water boards must operate when controlling discharges of waste.

The exercising of water rights may be restricted or suspended in order to maintain minimum standards of quality and, if a minimum flow in a river has been fixed, water rights may also be restricted or suspended to maintain that flow. If there is a serious temporary shortage of water a regional water board may issue an order restricting, apportioning, or suspending rights to take and use natural water.

A 1981 amendment to the 1967 Act provides for water conservation orders to be placed on rivers, streams, or lakes. They may preserve wild and scenic characteristics of rivers and protect other natural features and instream uses of the country's natural water. Recreational, wildlife, fishery, scenic, or scientific interests can apply under these provisions for protection of water uses and the retention of natural conditions.

Underground water. In some parts of the country, including the Canterbury Plains, the Heretaunga Plains in Hawke's Bay, and the Waimea Plain near Nelson, underground water is an important resource. The cities of Christchurch, Lower Hurt, Napier, and Hastings draw at least some of their domestic and industrial supplies as well as irrigation water from such sources. Management of underground water, and its protection from contamination, is an increasing part of regional water board work in these areas.

Irrigation. Irrigation was initially practised in New Zealand early this century as a drought protection measure. It was not until the 1940s that the benefits of irrigation as a farm management tool were realised. Most of the earlier irrigation was concentrated in areas of Central Otago and South Canterbury. In both areas a high soil moisture deficit is experienced during summer, with hot drying winds. More recently, irrigation schemes have been promoted in North Canterbury and in Nelson and in parts of the North island suitable for horticulture:, particularly Northland and the Bay of Plenty.

Pastoral irrigation is predominant in the South Island and was traditionally centred around major rivers, drawing from them on a run-of-the-river basis. More recent schemes include storage for better water management for the needs of crops. In total, about 230 000 hectares are now irrigated, but a substantial potential still exists.

The promotion of community irrigation schemes is the responsibility of the Minister of Works and Development. Several irrigation schemes are currently being constructed under previous policies and different levels of Government assistance. In November 1984 a revised irrigation policy was introduced under which all new irrigation schemes would qualify for the following Government assistance; a 35 percent grant for approved community irrigation scheme headworks to take or store water, and for the distribution works which deliver water to individual farm boundaries. Initially, Government funds all these works and the landholder's share of these works is recovered by water charges. Support for on-farm irrigation development costs is provided through Rural Banking and Finance Corporation loans.

Private irrigation undertaken by individuals or groups of farmers is practised over much of the country. Private development normally qualifies for Rural Banking and Finance Corporation loans. Water for these schemes is generally drawn from underground sources, or pumped from rivers and drains and applied by spray or trickle methods. Private flood irrigation is limited to small gravity supply schemes, which are comparatively few in number.

Irrigation schemes. Apart from private irrigation schemes some 234 000 hectares of land in New Zealand are now irrigated by community and Government supported schemes. Of this area, 218 000 hectares (mostly in the South Island) are irrigated for pastoral purposes, and 16 000 hectares (almost entirely in the North Island) are irrigated for horticulture. Since 1960 the Government has supported 26 new irrigation schemes designed to irrigate approximately 73 000 hectares. Of these, 13 schemes have been developed for pastoral and/or crop production, 2 for combined pastoral and horticultural development and 9 are solely for horticultural development. Eight of the schemes are located in the North Island and all are for horticultural development. The 16 schemes which are located in the South Island are predominantly for pastoral and crop production, but there has been a changing emphasis to horticulture, and more recent schemes undertaken in the South Island have been for horticulture, or combined horticulture and pastoral use.

There are 20 older schemes in Canterbury and Central Otago, which have been operative for many years. Some of these schemes are under review and may be upgraded. In addition, a further 14 irrigation proposals are being investigated for approximately 30 000 hectares of land.

Rural water supply schemes. Government grants are given to territorial local authorities to assist with the construction of rural water supply schemes, and provide reliable water supplies for stock and domestic use in rural areas. Promotion of these schemes is the responsibility of the local authority and Government assistance is provided, subject to schemes being economic and meeting current policy conditions. Under policy introduced in 1984, all new schemes qualify for a 35 percent grant for construction of off-farm works, the on-farm work being undertaken at the landowners' cost. Throughout the country a total of 48 Government subsidised rural water supply schemes have recently been completed, or are under construction. Eleven of these schemes were approved for Government assistance in 1985.

Soil conservation. Changes in vegetation from land development have resulted in disturbed soil conditions in many parts of New Zealand. The protective, stabilising, and water-controlling combination of vigorous native vegetation, litter, and spongy soil has given way to a shallow-rooted, less protective carpet of grass on a compacted, impervious, and often exhausted soil. Natural erosion, caused by climatic factors (such as high-intensity rainfall and frost heave) combined with the geological instability of much of the country, has been aggravated by man-made effects. Soil erosion now occurs on more than 8 million hectares of hill country and mountain land, about one-third of the total area of New Zealand.

The Soil Conservation and Rivers Control Council began in the 1940s, a number of measures to control soil erosion and to rehabilitate eroded catchments with the help of catchment authorities. Successful techniques that have been developed to control erosion include control of burning and animal pests, oversowing, topdressing, strict grazing control, soil conservation, fencing, stock-water ponds, gully control, contour ploughing, terraces, grassed waterways, and open and close tree planting. Grants at varying rates are available to farmers carrying out these control practices.

In the 1970s the New Zealand Land Resource Inventory was completed for the main islands of New Zealand. This lists the physical factors of rock type, soil, slope, erosion and vegetation and describes, in coded form, land parcels or units in terms of those combined factors. The inventory then identifies the land use capability of each unit. Coverage at a scale of 1:63360 has been completed and 89 000 land management units have been mapped. The national coverage, coupled with its computer storage of both boundaries and codes, is a very effective and flexible physical base for soil conservation and general land use at regional through to local levels. Information on stock carrying capacity, fertiliser requirements, and potential for exotic forestry has now been added to the inventory, and national map series on erosion and vegetation are in preparation.

Information from the inventory is also compiled at more detailed scales by catchment authorities for small catchments and individual farm properties, allowing soil conservators to recommend the best conservation practices and management of particular areas of land to ensure sustained permanent production. A plan is formulated by a soil conservator and then discussed with the landowner concerned. The plan may then be adjusted to suit the landowner's ability to carry it out over several years.

Coastal erosion. The coastlines of New Zealand total about 11 000 km in length, of which 80 percent is exposed to the open sea. For the exposed part, about 56 percent is static, 25 percent is eroding, and 19 percent is accreting (increasing). History has shown that even the accreting section of coastline may revert to erosion, so that, in total, almost half of New Zealand's coastline has a high susceptibility to erosion.

Coastal erosion has proved expensive in the past. The planning section of the Water and Soil Directorate, Ministry of Works and Development, is providing a coastal planning service through the department's works districts and the catchment authorities. Based on geological data, coastal hazard zones delineating land highly susceptible to erosion processes are being identified to assist planners.

River control. The Soil Conservation and Rivers Control Act 1941 provides for the prevention of damage by erosion and the protection of property from damage by floods. River control projects carried out by catchment authorities often serve both these objectives. River training works are designed to give the river channel a stable alignment that will prevent bank erosion. Stopbanks are constructed to provide flood relief to low lying and mostly highly-productive agricultural lands.

The National Water and Soil Conservation Authority encourages a catchment-wide approach to water and soil problems. Comprehensive catchment control schemes embrace land retirement from grazing and protection planting of trees in the upper catchment, bank protection works in the middle reaches, and flood alleviation and drainage works in the lower reaches of a river. The Government made $33,270,000 in grant assistance available to catchment authorities for schemes to meet these purposes in the 1984-85 financial year.

Grants are given to schemes that are in the national interest but which for some reason would not be implemented or would only be carried out partially or inadequately without Government incentives. Riparian (riverbank) landowners, for example, may not be able to afford isolated bank protection works defending individual properties whereas an integrated river control scheme bringing in a larger benefit area, and with a Government contribution in recognition of the wider community benefits of such a scheme, would enable sufficient local funds to be raised.

Most major and many smaller rivers in New Zealand are now covered by control schemes for at least part of their length. As natural river systems change continually in response to variations in average rainfall and sediment supply, a sustained works programme is required on many rivers so that the standards of protection can be maintained. In urban areas NWASCA places emphasis on a policy of avoiding flood damage through planning measures such as floodplain zoning and recommended minimum flow levels. This recognises that flood hazard partly is an artificial problem, which needs to be resolved not only by keeping water away from settlement but also by keeping settlement away from water.

Pollution

Public concern for the environment has led to an increased awareness of pollution problems. Organisations have responded by involving the public in the decision-making processes and by amending legislation to provide the appropriate controls.

At present, different parts of the physical environment are protected by different organisations, with co-ordination provided by the Commission for the Environment. The problems of water pollution are being controlled by NWASCA and the regional water boards through the Water and Soil Conservation Act 1967, and, as might be expected, the Ministry of Agriculture and Fisheries, through the Fisheries Act, and the Department of Internal Affairs, through the Wildlife Act, also have statutory powers to control water pollution; those of air pollution by the Department of Health under the provisions of the Clean Air Act 1972; and 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 substances declared a pollutant. New Zealand also has a contingency plan for dealing with oil pollution in coastal waters and on the shore.

Pollution of our rivers and lakes can be caused by soil erosion, farm run-off, industrial waste, or domestic sewage. The Water and Soil Conservation Act 1967 provides for the control of waste discharges through water rights. These include conditions ensuring that the discharge has had adequate treatment sufficient to protect the receiving waters.

Diffuse forms of pollution like soil erosion and fertiliser run-off, require different approaches, such as through changing land use practices.

Sewage and farm run-off add nutrients to the water which in some lakes (e.g., Lakes Rotorua and Horowhenua) has caused excessive growth of weeds and algal blooms, to the detriment of water quality. Waste disposal from cities and the forestry and meat industries are also major contributors to pollution.

Urban solid-waste disposal is largely by the land-fill technique, and most major cities are establishing tip sites planned to last up to 50 or 100 years. 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.

Organic chemical pesticides and herbicides are widely accepted as essential for efficient agriculture and horticulture. The use of such chemicals is controlled by the Agricultural Chemicals Board under the auspices of the Ministry of Agriculture and Fisheries. The board controls the import of chemicals and has an approved list of proprietary herbicides and pesticides for use in different situations such as in or near water, and also gives guidance on the application of those chemicals.

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 traces 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, in general, favourable to the dispersal of air pollutants, although some areas, such as Christchurch, suffer from air pollution problems. The Clean Air Act 1972, the first part of which came into effect on 1 April 1973, established the principle of air pollution control on industry by the best practicable means. Provision was also made for the establishment of smokeless zones. The first clean air zone under the Act has been established in Christchurch.

The Clean Air Council way 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 authorises and voluntary organisations. It publishes reports from time to time, and is undertaking research work through 4 committees studying respectively clean air zones and domestic heating, motor vehicles and air pollution, rural pollution, and planning co-ordination.

Further information

Land resources and ownership

The Handbook for Local Authorities—Valuation Department.

Report of the Department of Justice (Parl. paper E. 5).

Report of the Department of Lands and Survey (Parl. paper C. 1).

Report of the Department of Maori Affairs (Parl. paper E. 13).

Report of the Valuation Department (Parl. paper G. 6).

The Rural Estate market in New Zealand—Valuation Department (six-monthly).

The Urban Real Estate market in New Zealand—Valuation Department (six-monthly).

Public lands

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

Report of the Department of Lands and Survey (Parl. paper C. 1).

Report of the Director-General of Forests (Parl. paper C. 3).

Report of the National Parks and Reserves Authority (Parl. paper C. 10).

Report of the Queen Elizabeth the Second National Trust (Parl. paper C. 2).

Statistics of the Forests and Forest Industries of New Zealand—New Zealand Forest Service.

The Government Printer also produces a number of publications on National Parks and scenic reserves.

Environmental resource management

Building and Construction: Annual Review—Ministry of Works and Development.

Catchment Control in New Zealand, by A. L. Poole—NWASCA (1983).

Eutrophication of Lake Rotorua—DSIR (1977).

Land Application of Treated Sewage Effluent—DSIR (1976).

Ministry of Works and Development Statement (Parl. paper D. 1).

Newsletter, the Building Industry Advisory Council.

The Physical Environment Conference 1970: Reports, Papers and Proceedings.

Proceedings of Soil and Plant Water Symposium 1976—DSIR (1977).

Report of the Commission for the Environment (Parl. paper C. 7).

Report of the Department of Lands and Survey (Parl. paper C 1).

Report of the Director-General of Forests (Parl. paper C 3).

Report of the National Parks and Reserves Authority (Parl. paper C. 10).

Report of the National Water and Soil Conservation Authority (Parl. paper D. 2).

Report of the Nature Conservation Council (Parl. paper C. 4).

Report of the Queen Elizabeth the Second National Trust (Parl. paper C. 2).

Research into Aquatic Weeds in New Zealand Waterways—DSIR (1976).

Slope Stability in Urban Development—DSIR (1977).

See also the special article The New Zealand Environment and Changes in Environmental Management Since 1970 in the 1980 Yearbook.

Chapter 15. 15 Agriculture

15.1 Current situation and trends

Types of farming. Most of New Zealand's farm land is used for the pastoral production of meat, wool, and dairy products. By far the majority of animals grazed are sheep, but cattle and more recently, deer and goats can also be seen in quite large numbers.

Land used for meat and wool farming is mainly steep hard hill country and rolling downs. The downs, and also the coastal plains, support dairy, arable, and horticultural production. Recent increases in the use of coastal flat land for horticulture have been a major feature.

Trends in agriculture. The 1985 year saw tremendous change for New Zealand's agricultural industries. New Government policy heralded significant changes to industry assistance policies in general, and their impact has been particularly felt in the agriculture sector, with removal of many subsidies.

Compared with other sectors, agriculture previously received high levels of assistance. Reasons for this were twofold. First, prices for major agricultural products, particularly meat, had been weak for a number of years. Secondly, many domestic industries which provided the materials needed for agricultural production were heavily protected against competition from imports.

Successive governments had believed that the best way to handle what were apparently temporary difficulties for agriculture was to provide temporary assistance. The current Government has set about dismantling the whole range of assistance measures in all sectors of the New Zealand economy. For agriculture, this means that a wide range of measures have now disappeared or are in the process of disappearing. This change has caused consequent drops in farm incomes and farmland prices.

At this stage it is difficult to assess the full impact of these changes on agriculture. However, it can be said that 1985 has been a time of uncertainty and change for the industry. It is believed that structural changes which are occurring in the economy will have medium- to long-term benefits for both agriculture and the New Zealand economy as a whole.

Table 15.1. TENURE OF OCCUPIED FARM LAND

YearNumber of FarmsFreehold LandCrown LandLeasehold LandOther LandTotal Land Occupied
 hectares (000)
198172,51510,9518,8491,32612421,250
198273,92510,8208,8531,34025021,264
198375,74511,0178,6451,38721821,266
198476,63310,9228,5651,48525221,224

Table 15.2. LAND USAGE BY STATISTICAL AREA AS AT 30 JUNE 1984

Statistical AreaNo. of FarmsGrassland and LucerneFruit Vegetable and NurseryCropsPlantations of Exotic TreesTussock or Danthonia Used for GrazingTotal Area of Farms*

* Including other land on farms not classified above.

 hectares (000)
Northland6,9326895278171,082
Central Auckland7,511295111334416
South Auckland-Bay of Plenty19,1301,8022322474253,439
East Coast1,603549544718740
Hawke's Bay4,387912111167351,301
Taranaki4,64744912710618
Wellington8,1861,421732591562,001
             North Island52 3966 11863747642669 596
Marlborough1,38723329234731,144
Nelson2,5531845385461,242
Westland832109  22371,088
Canterbury9,3141,14810212531,4873,349
Otago4,976904456621,8893,247
Southland5,175725254323601,557
             South Island24 2373 303243352774 29111 628
             New Zealand76 6339 421874081 0414 55721 224

Table 15.3. LAND USAGE BY FARM TYPE AT 30 JUNE 1984

Farm TypeNumber of FarmsGrassland and LucerneLand In or Prepared for Fruit, Grain, Crops, Vegetables, NurseriesPlantations of Exotic TreesTussock or Danthonia Used for GrazingOther Land on FarmTotal Area of Farms

* Gross income of 75 percent or more 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.

‡ More than 50 percent of gross income is derived from stated activity.

§ Two or more activities of roughly equal proportions.

|| Includes pig farming with other, goat farming, small animal breeding, mushroom growing, tobacco and hop growing, beekeeping, Research/Educational farms, agriculture contracting, and farms not elsewhere classified.

 hectares (000)
Dairy Farming: Town Supply*1,141963..14104
Dairy Farming: Factory Supply*13,3619798513691,073
Sheep Farming*19,9173,895132592,7995367,422
Beef Farming*6,48244739265160884
Pig Farming*40472....110
Cropping*1,4073667..14109
Dairy Farming with Sheep347451..5656
Dairy Farming with Beef633711121286
Dairy Farming with Other452452..1554
Sheep Farming with Dairy211231..15240.
Sheep Farming with Beef5,6252,21426269553883,608
Sheep Farming with Cropping1,17917150186235
Sheep Farming with Other628947317219294
Beef Farming with Dairy20513......215
Beef Farming with Sheep1,562337277989514
Beef Farming with Other291142..1926
Cropping with Sheep7477057123132
Cropping with Other19978....115
Stud Horse Breeding1,258221..2227
Deer Farming6423311191570
Mixed Livestock§2,7455042310179113828
Poultry incl. Broilers41641....17
Vegetable Growing1,6651520....238
Citrus Orchards29511......2
Pipfruit Orchards76128....112
Stonefruit Orchards28712......3
Kiwifruit Orchards1,9587141..325
Grape Growing36626....18
Berryfruit Growing37522......5
Other Fruit n.e.c.62835 1210
Flower Growing2401........1
Plant Nurseries438238..417
Plantations75813 89682,2853,203
Other Farming||2,67112336811190369
Idle Land6,33912423181,7761,923
         Total, All Farm Types76 6339 4214951 0414 5575 71021 224

Table 15.4. FARM EMPLOYMENT AT 30 JUNE 1934

Farm TypeWorking Owners. Leaseholders, and SharemilkersUnpaid Members of Family Assisting on FarmPaid Permanent EmployeesCasual Workers at 30 JuneSalaries and Wages Paid to Employees $(000)
Full-timePart-time

* Gross income of 75 percent or more 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.

‡ More than 50 percent of gross income is derived from stated activity.

§ Two or more activities of roughly equal proportions.

|| Includes pig farming with other, goat farming, small animal breeding, mushroom growing, tobacco and hop growing, beekeeping, Research/Educational farms, agriculture contracting, idle land and farms not elsewhere classified.

Dairy Farming: Town Supply*1910524479167848,776
Dairy Farming: Factory Supply*22,3376,5292,41592658048,898
Sheep Farming*21,8049,8744,1161,6531,83182,614
Beef Farming*6,7192,3803572331776,570
Pig Farming*49217519249143,222
Cropping*1,340531187841153,896
Dairy Farming with Sheep5262098428351,613
Dairy Farming with Beef1,07932818183353,070
Dairy Farming with Other810246205821413,863
Sheep Farming with Dairy27910233813505
Sheep Farming with Beef6,5742,6513,1278251,06155,513
Sheep Farming with Cropping1,3896062931741275,888
Sheep Farming with Other718377177531613,473
Beef Farming with Sheep1,7067275731451778,469
Beef Farming with Other588267341911809
Cropping with Sheep911445238941494,284
Cropping with Other2201134333571,058
Stud Horse Breeding81037931252224,007
Deer Farming6723517845211,696
Mixed Livestock§3,4461,36485824725016,410
Poultry incl. Broilers5931693653791787,688
Vegetable Growing2,27580172437578517,317
Citrus Orchards37515657341261,425
Pipfruit Orchards1,00128860613564617,997
Stonefruit Orchards34512769221772,572
Kiwifruit Orchards2,4129988193251,92219,608
Grape Growing4271342781086716,858
Berryfruit Growing44520070446844,341
Other Fruit n.e.c.807344257903185,130
Flower Growing279906677451,702
Plant Nurseries5461161,11533644718,814
Plantations177693,4319518749,650
Other Farming||2,9691,46894832359019,830
         Total, all Farm Types86 98133 13822 7877 34311 837437,566

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 30 June 1984 capital expenditure was reported by 57 percent (43 681) of the 76 633 farms and plantations surveyed.

Table 15.5. CAPITAL EXPENDITURE ON FARMS

ItemYear Ended June
198219831984

* Includes construction of permanent yards, airstrips, bridges, roading, and stock or dairy water supply systems.

 $(thousand)
Buildings—
    Owners' houses137,889156,783149,136
    Houses for employees20,57819,44928,669
    Other employee accommodation5,5514,753 
    Other buildings96,64997,577106,596
               Total, all buildings260,667278,562284,401
    Construction*50,10251,66653,467
Land development—
    Land clearing68,85655,29048,364
    Fencing68,10964,47566,994
    Drainage21,00319,64019,457
    Irrigation13,39822,50525,134
    Other land development18,55522,19919,981
               Total, land development189,920184,108179,931
Transport vehicles—
    Cars87,48279,35192,349
    Other farm vehicles79,22071,14676,541
    Other forest vehicles3,5895,1373,656
               Total, transport vehicles170,291155,634172,546
Machinery—
    Farm tractors94,81693,424102,081
    Logging equipment9607101,225
    Other machinery74,28776,86786,493
               Total, machinery170,063171,001189,799
Working animals3,1903,0083,365
               Total capital expenditure844,234843,979883,509

Table 15.6. FARM MACHINERY

Type of Machine1983
Agricultural tractors91,925
Pick-up balers12,535
Harvesters—
    Forage3,922
    Header3,825
Electric fence units71,629
Grain drills9,946
Spray irrigation plants6,611
Potato harvesters1,006
Grain silos or bins19,658
Grain capacity (tonnes)774,981
Bikes42,516
Farm trucks36,585

Irrigation

Most New Zealand soils have a seasonal moisture deficiency and many soils presently farmed under dry land conditions are capable of substantially increased production under irrigation.

The area and type of land irrigated during the year ended 30 June 1982 is analysed by statistical area in Table 15.7.

Table 15.7. LAND IRRIGATED DURING YEAR ENDED 30 JUNE 1982

Statistical AreaNo. of Farms IrrigatedGrassland and LucerneCommercialOther CropsOther LandTotal
FruitVegetables
    hectares   
Northland22826584419177221,399
Central Auckland4341,0387001,095150193,002
South Auckland Bay of Plenty6241,0922,015314241163,678
East Coast9753286192576594
Hawke's Bay5461,8862,3961,28834095,919
Taranaki5761629132412694
Wellington3243,024462590202104,288
               North Island2 3107 9746 7323 6831 0919419 574
Marlborough1912,161863570739454,379
Nelson5031,8301,7185931,120165,277
Westland       
Canterbury1,90198,8058562,19827,780617130,256
Otago83955,1601,0342351,47723458,140
Southland15170610191206
               South Island3 449158 1264 4773 60631 135913198 257
               North Island5 759166 1001 2097 28932 2261 007217 831

Further information on irrigation is included in chapter 14 Land and environment.

Topdressing

Topdressing with artificial fertilisers has been an important factor in the intensification of grassland farming. Most New Zealand soils need fertilisers, especially phosphates. Superphosphate has been produced in New Zealand in increasing quantities since the 1880s, using rock phosphates from Nauru and Ocean Islands; Christmas Island is now an increasingly important source of supply. Over the years there has been a marked changeover from straight superphosphate as the principal fertiliser for grassland and crops—usual variants are serpentine superphosphate or aerial superphosphate, or a mixture of superphosphate with potash, additional sulphur or a trace element. Production of chemical fertilisers in superphosphate manufacturing works during the year ended 30 June 1984 totalled 1 833 000 tonnes. Half the fertilised area is covered by aerial distribution; about 30 percent of the quantity is distributed by aeroplanes from 8000 airstrips.

Lime is used to correct soil acidity and increase the availability of trace elements. In 1984 1.2 million tonnes of lime were dropped.

Table 15.8. FERTILISER APPLICATION

Year Ended 30 JuneArea TopdressedQuantity Spread
Phosphatic FertilisersOther FertilisersBy Ground SpreadBy Air
 ha (000)ha (000)tonnes (000)tonnes (000)
19815 730.11 201.82 422.11 085.9
19826 628.11 404.72 393.61 016.3
19835 668.41 181.02 133.8909.6
19846 054.11 204.02 173.7990.5

Agriculture production account

The Agriculture Production Account covers the activities of all market-oriented establishments classified under agricultural and livestock production or agricultural services (major groups 111 and 112 of the New Zealand Standard Industrial Classification). All types of farms are included, together with agricultural services operated by contractors, such as topdressing, weed-spraying, harvesting, threshing, shearing, and scrub-cutting. Other services included are herd testing and artificial insemination. Farms operated as trading enterprises by the Department of Lands and Survey and the Department of Maori Affairs are included.

The account includes all income derived from the activities of the establishments covered, including their characteristic farming activities, and also their “other” productive activities. However, investment income (such as dividends and interest) accruing to the proprietors of farming establishments is excluded.

Tables 15.9 and 15.10 provide commodity analyses for the production account items, intermediate consumption and gross output.

Table 15.11 shows the index of the volume of production for years ended June. This index covers only major group 111, agricultural and livestock production, i.e. agricultural services are not included. The index shows changes in the volume of production for 11 separate component product groups as well as for total farm production. The index is chain linked year-on-year, and has an expression base of the year ended June 1978 (= 1000).

The Agriculture Production Account is published annually as part of the National Accounts supplement to the Monthly Abstract of Statistics, and this should be consulted for further information on methodology.

Table 15.9. AGRICULTURE PRODUCTION ACCOUNT ANALYSIS OF INTERMEDIATE CONSUMPTION

ItemYear Ended March
19801981198219831984
 $(million)
Purchase of livestock602536554547804
Feed and grazing132150180218209
Animal health and breeding8596114129133
Weed and pest control4755677579
Fertiliser, lime, and seeds268332406397433
Fuel and power172208242274280
Repairs and maintenance355410490497514
Freight7893109122126
Other (not elsewhere classified)537588693771840
 2,2762,4692,8553,0293,418
Less capitalised development-61-82-103-105-98
         Total, Intermediate Consumption2,2152,3882,7522,9233,320

Table 15.10. GROSS AGRICULTURAL PRODUCTION (GROSS OUTPUT)

CommodityYear Ended March
19801981198219831984

n.e.c.—not elsewhere classified.

 $(million)
Wool823811803755933
Sheep477560585499512
Cattle630545564717724
Pigs6465808689
Dairy products6918501,0201,1831,193
Poultry products97110124146152
Crops and seeds168221279267280
Fruit, nuts, and oilseeds124154183213224
Vegetables153183225225278
Other horticultural products79104127145149
Agricultural services223261295293319
Other products, n.e.c.3350608396
Value of change in livestock—
    Sheep1517060-7270
    Cattle812-2-5346
    Pigs-1-1-1--
    Deer4118323878
    Goats-1267
Sales of live animals592536563558775
         Gross Output4,3544,5495,0005,0925,923

Table 15.11. INDEX OF VOLUME OF AGRICULTURAL PRODUCTION (JUNE 1978 = 1000)

CommodityYear Ended June
19801981198219831984

n.e.c.—not elsewhere classified.

 Volume Index Numbers
Wool11611247118711831176
Sheep11621178115312701295
Cattle980958100010451019
Pigs878865878888938
Dairy products11361092108811131230
Poultry products10491120114412291264
Crops and seeds980961100310941187
Fruit, nuts, and oilseeds12361339163815321910
Vegetables997933103410481052
Other horticultural products15851782190118521898
Other farm products, n.e.c.160118472,0702,5432,758
         Total, All Farm Products11151132114711841245

Agricultural producers price index

Six input sub-indexes have been developed for the Agricultural Producers Price Index. They relate to the following types of agriculture activity: sheep and beef farming; dairy farming; mixed cropping; horticulture; pig, poultry, and other farming; and agricultural contracting. The Agriculture Inputs Index excludes agricultural contracting, and is published as the All Farming Inputs Price Index. The All Farming Inputs Price index includes livestock purchases and a series excluding livestock purchases is also produced.

Future development of the All Farming Inputs Price Index will provide sub-indexes for expenditure on interest and central and local government charges. Both the Nominal and Prevailing Weekly Wage Rates Indexes (refer chapter 12) contain wage-rate series for the agriculture industry production group. Long-term series are not available for mixed cropping, horticulture or pig, poultry and other farming not elsewhere classified. Prior to December 1982 only beef cattle held on sheep farms were included in the Sheep Farming Farm Costs Price Index. From December 1982 farms yielding income principally from beef cattle are also included.

Table 15.12. FARMING INPUTS PRICE INDEX
Base: December Quarter 1982 (= 1000)

Year QuarterSheep FarmingDairy FarmingAll Farming
1982—Mar933918934
            Jun973974977
            Sep995994995
            Dec100010001000
1983—Mar100210021002
            Jun100710081007
            Sep101310201017
            Dec101210231017
1984—Mar101310231017
            Jun103410461042
            Sep107910921086
            Dec111211181116
1985—Mar114811531154
            Jun120312101209
            Sep125412581255

Table 15.13. FARMING INPUTS PRICE INDEX—AIL FARMING*
Base: December Quarter 1982 (= 1000)

Expenditure GroupPercentage of Base Expenditure198219841985
Dec.Dec.Mar.JunSep

* Excludes wages, interest payments and Government charges.

Administration3.8610001090114011771241
Animal health and breeding3.8810001089112511661218
Dairy shed expenses0 5610001120114612131242
Electricity1.8910001020102312281228
Feed, grazing, cultivating and harvesting8.2010001086113512001232
Fertiliser, lime and seeds14.4710001079112411441296
Freight5.5810001132115011931204
Fuel and oil6.1710001245124713831308
Insurance0.8810001087112111791236
Packaging costs1.5210001082109111601233
Rent and hire1.7510001457146514731442
Repairs, maintenance and motor vehicle repairs17.7610001124117612321270
Sharemilking1.3010001129112911291166
Shearing5.6510001063107611401156
Weed and pest control3.4910001091118012081242
Livestock purchases23.0410001307138114371462
All groups excluding livestock76.9610001116115412091255
All groups including livestock100.0010001160120612611303

Agricultural organisations

Ministry of Agriculture and Fisheries. The Ministry of Agriculture and Fisheries has 9 divisions and a number of specialist groups. It carries out Government polices relating to agriculture, horticulture, and fishing. It also advises the Government on how to maximise national benefit from these industries. The ministry provides research and advisory services which assist the industries to solve problems, improve their productivity and realise new opportunities. For fisheries, it also provides management plans and controls.

Some ministry staff are employed to prevent the introduction of exotic animals, fish, plants, and diseases. This is to protect New Zealand's status as an approved source of species and produce for export. Officials also aim to help improve animal, fish, and plant health in New Zealand.

Where necessary, the ministry assures overseas governments and customers of the consistent purity and safety of New Zealand food products. It bases this quality assurance on internationally agreed standards.

Other primary industry organisations. Production and marketing of most New Zealand agricultural products in both domestic and export markets is regulated by a wide range of statutory bodies, including the Ministry of Agriculture and Fisheries. The marketing aspect of these bodies' work is dealt with under the various types of farming in this chapter. The Rural. Banking and Finance Corporation plays an important part in financing farming operations. This organisation is discussed in chapter 26, Finance, banking and insurance.

15.2 Pastoral agriculture

Pastoral agriculture is practised throughout New Zealand, with beef cattle predominating in the far north, dairying in Waikato and Taranaki and sheep farming in the hills and south of the North Island. In the South Island, sheep farming is the main form of pastoral agriculture, but there is some dairying on the flat land of both coasts.

Livestock are seldom housed, and they are fed minimal supplements, such as hay and silage, in winter. There are only 2 to 3 months of nil grass growth in New Zealand. Stock are grazed in paddocks, often with moveable electric fencing which allows rotation of grazing around the farm. Lambing and calving are carefully managed to take full advantage of spring grass growth.

Phosphatic fertilisers are used extensively on New Zealand's predominantly grass/clover pasture. Nitrogen fertilisers are used to a small degree.

Livestock numbers and types

Agriculture is a major industry upon which much of New Zealand's prosperity depends. Lines of development are influenced by overseas prices for farm products, including meat, wool, dairy products and, more recently, venison and goat fibre. While there is a time lag associated with livestock breeding, livestock numbers indicate how farmers are responding to market trends.

However, it must be remembered that climatic effects such as drought or floods can influence the general pattern.

New Zealand has more than 20 times as many sheep as people. This ratio is probably not exceeded by any country in the world. Grasslands have been developed to the extent that the best sheep farms can carry up to 25 sheep per hectare, and the best dairy farms, 2.5 cows per hectare throughout the year.

Over the 6 years to June 1981 sheep numbers increased by about 4 percent per annum. In the year to June 1982 sheep numbers increased by only 0.6 percent to 70.3 million, and in 1983 and 1984 the numbers declined slightly. After a period of decline from a high of 6.3 million in 1975, beef cattle numbers have stabilised at 4.5 million in 1983 and 1984.

Table 15.14. DISTRIBUTION OF LIVESTOCK AS AT 30 JUNE 1984

Statistical AreaDairy CattleBeef CattleSheepPigsDeerGoats
   (000)   
Northland3645632,22911244
Central Auckland2382371,074572223
South Auckland - Bay of Plenty1,5261,0659,6391168055
East Coast43533,021259
Hawke's Bay534997,72792528
Taranaki5271841,6923435
Wellington26069511,105561916
               North island2 9723 59536 488286157180
Marlborough23841,6741864
Nelson67701,0591179
Westland3751266141
Canterbury8429711,633923420
Otago352679,591171912
Southland291669,02712316
               South Island27493533 25015110251
               New Zealand3 2464 53169 739436259230

Table 15.15. SHEEP CATEGORIES

At 30 JuneRamsWethersBreeding EwesOther SheepHoggetsTotal
Rams & WethersEwes
 (thousand)
19809581,14448,2451,0993,36513,96068,771
19819931,58250,059...3,26513,98569,884
19329641,38851,560...2,86913,52070,301
19839361,33751,763...2,65313,57470,263
19849071,34051,875...2,47113,14669,739

Sheep breeds. Data on sheep breeds collected in 1984 indicate that, of the 69.7 million sheep in New Zealand at the end of June 1984, 27.7 million (39.7 percent) were Romneys, 13.5 million (19.3 percent) were Coopworth, 10.6 million (15.3 percent) were Perendale, 3.8 million (5.5 percent) were Corriedale and 3.9 million (5.6 percent) were Merino and half breds. Six million sheep were classified “unspecified” as the farmers did not indicate their breed.

Table 15.16. SHEEP: SIZE OF FLOCKS

Size of Flock19801981198219831984
1-998,8088,92610,21410,0399,390
100-1992,6042,5172,7242,6282,468
200-4994,0873,9964,0664,1033,988
500-9993,7743,7023,6993,7363,662
1 000-1 4993,5243,4003,3973,3983,360
1 500-1 9993,8113,6383,4923,4793,376
2 000-2 4993,5183,4743,4693,3723,330
2 500-4 9997,2197,3297,4287,4437,308
5 000-9 9992,1082,1372,1702,1522,161
10 000 and over456522531548568
       Total flocks39 90939 64141 19040 89839 611
Average flock size1,7231,7631,7071,7181,761

Table 15.17. CATTLE CATEGORIES

Category198219831984

* Heifers not yet in milk, and cows not in milk during season but intended to be used again for dairying.

† Includes bobby calves.

‡ Includes cows culled from dairy herds (2162 in 1982, 16 064 in 1983, and 15 560 in 1984).

Dairy stock—
    Cows and heifers, 2 years old and over—
    Cows in milk or calf2 005 3892 097 7982 165 013
    Others*75,50580,91053,129
    Heifers—
    One and under 2 years old436,381477,105502,977
    Under 1 year old434,715427,753471,411
    Bulls and bull calves intended for dairy breeding52,75748,63950,537
               Total dairy stock3 006 6643 133 9233 245 524
Beef stock—
    Breeding cows and heifers, 2 years old and over1 576 0351 347 8791 341 617
    Cows, 2 years old and over, not used for breeding197,373170,137184,256
    Heifers—
    One and under 2 years old422,806475,825485,840
    Under 1 year old620,611532,806523,783
    Steers, bulls of all ages, and other beef cattle2 088 8141 969 9121 979 509
               Total beef stock4 905 6394 496 5594 530 565
               Total cattle7 912 3037 630 4827 776 089

15.3 Meat

The lamb, beef, and mutton produced on New Zealand farms is overwhelmingly destined for export markets. Until very recently most lamb was exported in carcass form, but the New Zealand meat processing industry is changing its production to meet market demand for prepacked consumer-ready cuts. Beef is generally exported in boned-out form, and mutton has been exported as carcasses.

Table 15.18. MEAT PRODUCTION

ProductYear Ended September
198019811982198319841985P
 tonnes (000)
Beef478.8480.8494.9492.9418.9472.4
Veal16.917.321.119.214.514.2
Mutton168.5200.5191.6200.2194.2227.8
Lamb391.2425.7431.0480.1473.4500.9
Pig meat34.532.540.139.742.947.7
               Total1 089.91 156.81 178.71 232.11 143.91 263.0

Meat produced for export. Measured on a product weight basis, export meat production increased sharply to reach a new record in the 1984-85 season, increases in production were achieved in all classes with lamb up 3 percent, mutton up 18 percent, and beef and veal up 23 percent.

Lamb export slaughtering during the 1984-85 season increased to a record 39.2 million, up 15 percent on the previous season's figure. Adult sheep slaughterings for export increased 25 percent, also a record, while beef export slaughterings increased 19 percent.

About two-thirds of lambs tailed are killed during the season, and over 90 percent of the lamb meat is exported. Meat consumed in New Zealand represents approximately 25 percent of total production.

Table 15.19. LIVESTOCK SLAUGHTER AT MEAT EXPORT WORKS AND ABATTOIRS*

AnimalsYear Ended September
19811982198319841985

* Excludes killing on farms and rural slaughterhouses.

Source: New Zealand Meat Producers Board.

 head of stock (000)
Lambs32,30632,11535,99534,71139,961
Sheep9,1439,0219,2348,89510,766
Adult cattle2,0562,1732,1561,7711,981
Calves and Vealers9971,071963826836
Pigs714716720768849

Table 15.20. MEAT EXPORT PRODUCTION

Type of MeatYear Ended September
19811982198319841985
 tonnes (000) shipping weight
Lamb—carcasses335.1325.3366.7343.8x350.8
  —cuts62.273.378.494.0102.5
Mutton—carcasses117.099.375.248.959.8
  —cuts9.414.231.7 42.8
Beef—manufacturing164.4175.8173.1141.0174.3
  —other51.250.153.840.9x51.7
Veal8.58.47.36.97.2
Pig meat0.1----
Other meats0.30.40.1-0.1
Variety meats50.050.953.950.756.9
Inedible meat and offal22.619.819.017.318.5
               Total820.8817.5859.0781.7x864.6

New Zealand Meat Producers Board

The main responsibilities of the New Zealand Meat Producers Board are:

  1. Meat export licensing;

  2. The grading, storage, and shipment of meat;

  3. Market research and information;

  4. Market access issues;

  5. The promotion of New Zealand meat;

  6. Improvement in the quality of New Zealand meat;

  7. Meat price stabilisation.

Although the New Zealand Meat Producers Board undertakes mainly shipping, promotion and some marketing of export meat, it also plays a part in medium- to long-term product development and production projections through its technical staff and its involvement in the Meat Industry Research Institute (MIRINZ) and the New Zealand Meat and Wool Boards' Economic Service. Meat processing in New Zealand is mainly handled by a range of private sector companies.

The board is funded by means of a levy, imposed as a per head charge, collected at the time of slaughter. Funds from the levy and interest on investments totalled $15.8 million in the year ended September 1985. In the period expenditure exceeded income by $0.6 million.

Table 15.21. MEAT BOARD LEVY RATES 1985

 Cents per Head
Source: NZ Meat Producers Board.
Lambs20
Other sheep and goats29
Bobby calves (under 27 kg)10
Vealers100
Other adult cattle200

Meat producers board activities. The board has engaged in most activities in the export trade in the interests of the producer.

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 its market support activities the board promotes the sale of meat on an 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, Tehran, and Bahrain.

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. During the 1975-76 season and again in 1976-77 and 1977-78, the board intervened and purchased a significant proportion of the export mutton produced.

The board again intervened in the mutton and lamb markets in the 1981-82 season, purchasing about 90 percent of the season's mutton production and 16 percent of the season's lamb production. At the beginning of the 1982-83 season, continued uncertainty in the outlook for both lamb and mutton exports resulted in the New Zealand Meat Exporters Council agreeing that the board offer to buy all export lamb and mutton from 1 October 1982 at the Government supplementary minimum price levels.

This arrangement continued through the 1984-85 season although slightly modified because of the change in the SMP scheme to the lump sum payment system. As a result of growing concern on the part of the industry and the Government regarding problems associated with sheepmeat marketing, the Minister of Agriculture appointed a task force in June 1983 to examine marketing organisation and structure. The task force recommendations were approved by Government with some modifications. Under the new arrangements the Meat Board took control of all sheepmeat at the works. A new body, the Meat Industry Council, was set up to formulate, in co-operation with the board, a long-term strategic plan for all branches of the industry as well as to provide input into the preparation of annual marketing plans. It was also to monitor industry (including the board's) performance and lay down dispute procedures.

The operation of the new arrangements was subject to some disagreement between the Meat Board, the private exporters and Government which culminated in the Meat Board announcing the termination of the national sheepmeat pools as from 21 December 1985. The marketing of sheepmeats from stock slaughtered after this date was returned to private exporters. However, sheepmeat exports to the North Asian region continue to be controlled by the ANZCo and Janmark companies which were set up following the establishment of Japan as a development market. Devco continues as the sole lamb exporter to North America. Following the return of marketing to private exporters, the Meat Industry Council went into recess.

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.

Meat marketing

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 principal importers are the countries of western Europe (in particular, the United Kingdom), the United States, U.S.S.R., and Japan. It is significant, however, that although the Common Market countries are substantial meat importers, much of the current trade now takes place between member countries of the Community as governed by the Common Agricultural Policy regulations.

During 1984-85 lamb exports declined by 7 percent with the main contributions to the fall being the absence of any lamb exports to the U.S.S.R. and a 20 percent reduction in shipments to Iran. Increased shipments were recorded to North America and the United Kingdom. Mutton exports in 1984-85 recovered from the previous season's very low level with shipments increasing by 32 percent. The main contributing factors were the re-entry of the U.S.S.R to the market and increased exports to the European Community. Exports of beef and veal increased by 27 percent in 1984-85 with most of the rise going to North America.

The major markets for New Zealand meat continue to be the United Kingdom and Iran for lamb, Japan, the U.S.S.R. and the United Kingdom for mutton, and the United States and Canada for beef. In fact these 6 markets accounted for 78 percent of New Zealand's total meat exports in 1984-85, down slightly from 81 percent in 1983-84.

imports of beef into the United States are subject to “voluntary restraint” agreements under the counter-cyclical meat import law. If “voluntary restraints” are not agreed by the supplying countries then quotas may be imposed. Under this system New Zealand, along with other suppliers, agrees to restrict the quantity of quota meat shipped for arrival in the United States during the calendar year to a negotiated tonnage if the global estimate of US imports exceeds a “trigger” level. No restraints were required in 1985 although, at 181 000 tonnes, final imports were very close to the “trigger”. Canada also operates a counter-cyclical meat import law to control beef imports although greater discretionary powers are vested in the Canadian Government as to whether and at what level quotas are to be imposed. The Canadian Government introduced quotas on imports in 1985 following a significant increase in European Community exports of subsidised beef to Canada in 1984. New Zealand was allocated 28 800 tonnes but exports fell short of this figure.

Shipments of beef and veal to the United States totalled 172 435 tonnes in the year ended September 1985, up 28 percent, while lamb shipments were 11 545 tonnes, up 86 percent. Shipments of beef and veal to Canada were 23 709 tonnes, up 46 percent; and lamb 7795 tonnes, up 64 percent. Lamb exports to the United States and Canada are controlled by the Meat Export Development Company which was established in 1960.

Lamb exports to the United Kingdom for the year ended September 1985 increased 9 percent to 135 068 tonnes and mutton exports increased 19 percent to 17 860 tonnes. Beef exports to this market are now negligible.

Iran continues to be New Zealand's second largest lamb market but the tonnage shipped declined 20 percent to 119 546 tonnes in 1984-85.

Japan is New Zealand's largest mutton market taking 32 349 tonnes in 1984-85, either directly or through South Korean processing operations. Mutton shipments increased 12 percent. Lamb shipments to Japan declined 8 percent to 14 165 tonnes and beef exports declined 5 percent to 7456 tonnes.

Mutton exports to the U.S.S.R. increased to 15 578 tonnes in 1984-85 from 2558 tonnes in the previous season. No exports of lamb were made in contrast with the shipment of 44 796 tonnes in 1983-84.

Other significant markets for New Zealand meat in 1984-85 were: for lamb—Poland 17 503 tonnes, Saudi Arabia 10 624 tonnes, Greece 8154 tonnes, and West Germany 7149 tonnes; for mutton—West Germany 3219 tonnes, Netherlands 3498 tonnes, Malaysia 2434 tonnes, and Taiwan 2340 tonnes; for beef—Australia 3460 tonnes, Trinidad and Tobago 2405 tonnes, Papua New Guinea 2238 tonnes, Hong Kong 2186 tonnes, and Singapore 2136 tonnes.

Meat prices

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”. Table 15.22 gives prices for New Zealand lamb at the end of the last week in March. Approximately 40 percent of the value of all New Zealand exports of frozen and chilled meat is generally accounted for by lamb.

Table 15.22. LAMB WHOLESALE LONDON PRICES

End of Last Week in MarchLamb (new seasons product)
Prime GradeY Grade
8 to 12.5 kg13 to 16 kg16.5 to 19.5 kg8 to 12.5 kg13 to 16 kg

* At 8 April 1983.

† 9.0 kg-12.5 kg.

‡ 16.5 kg to 20 kg.

Source: New Zealand Meat Producers Board.

 New pence per kilogram equivalent
1981125.7-126.8121.3-123.5114.6-117.9123.5-124.6121.3-123.5
1982143.3-145.5143.3-145.5138.9-141.1137.8-138.9141.1-143.3
1983137.1135.6122.4135.1*133.4*
1984142.6141.1131.6140.0140.0
1985152.1152.1142.2151.0151.0

Schedule prices—A schedule of buying prices is issued each week by the meat operators in New Zealand. The producers have a choice of how to sell their export meat. They can sell on schedule, on a pool account system, on the hoof, or they can sell through a producer co-operative.

The New Zealand Meat Producers Board can, by use of its statutory powers, issue its own schedule of meat export prices. It has taken this course of action in the past when it has considered that exporters were unduly pessimistic in their assessment of future overseas market prices, or when the schedule offered by exporters for lamb or mutton was below the board's minimum price. Intervention of this type by the board involves not only the setting of the schedule but also arranging for the marketing overseas of the various products on its own account.

Because of the uncertainty which existed in the outlook for lamb and mutton at the beginning of the 1982-83 season, the board with the agreement of the Meat Exporters Council and Government, issued a schedule for lamb and mutton at the supplementary minimum price level and purchased the full season's export kill. This arrangement continued during the 1983-84 and 1984-85 seasons.

Overseas prices for beef continued to be depressed during the 1984-85 season but while schedule prices declined to be on the minimum, no supplementation was required.

The opening schedules for the last 5 seasons are given in Table 15.23. The prices quoted for the years 1981-82 to 1983-84 are for dressed weights “on the hooks” at freezing works. However, for 1984-85 and 1985-86 the schedule prices for lamb and mutton represent the Meat Board's advance payments plus any government supplement and are for dressed weights “ex-freezer”. The prices for lamb and mutton are for bare meat only with an additional payment being made for the wool and pelt.

Table 15.23. OPENING NORTH ISLAND SCHEDULE PRICES

Class of Meat1981-821982-831983-841984-851985-86

* Based on Supplementary Minimum Price.

† Prior to 1983-84 ML 22 kg and under.

Source: New Zealand Meat Producers Board.

Lamb—cents per kg
    PL, 9.0-12.5 kg136.0133.0135.5218.5130.0
    PM, 13.0-16.0 kg145.0*148.0148.5*202.5142.0
    YL, 9.0-12.5 kg125.0126.0139.5226.5142.0
Mutton—
    MX, 22 kg and under50.0*50.050.5*105.552.5
    MM, all weights30.021.024.093.055.0
Beef—
    Pi—Steer, 245.5-270 kg143.0*147.5184.5240.0185.0
    LI—Steer, 245.5-270 kg143.0147.5184.5240.0185.0
    M—Cow, 145.5 kg-170 kg125.0*126.0132.0196.0161.0
    Bull. 220.5-245 kg143.0*147.5178.5244.0210.0

Minimum prices for export meat—The scheme which had operated since 1955 was replaced by a more comprehensive system in 1976 with 2 principal aims: first, to establish floor prices at a more realistic level and, second, to provide a mechanism which will allow for the replenishment of the funds paid out during the periods of low prices by levying farmers' receipts when prices exceed certain “trigger” 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 3 seasons. The committee also determines the trigger prices for each of the 5 benchmark grades of meat. A meat income stabilisation levy is imposed when schedule prices exceed the appropriate trigger price, 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.

The lamb and mutton minimum and trigger prices for the 1985-86 meat season were set on an ex-freezer basis instead of the delivered port works basis which is used for beef.

Table 15.24. MEAT MINIMUM AND TRIGGER PRICES 1985-86

Class of MeatMinimum PricesTrigger Prices

Source: New Zealand Meat Producers Board.

 cents per kg
Lamb—
    PM, 13.0 to 16.0 kg100233
Mutton—
    MX, 22 kg and under25122
Beef—
    Pl Steer, 245.5 to 270 kg148300
    M Cow, 145.5 to 170 kg120250
    Bull, 220.5 to 245 kg158300

These are known as the “benchmark” prices. They are the key grades for each category of meat. Other grades will be priced at appropriate differentials.

In addition to the above scheme the Government announced in the 1978 Budget the Supplementary Minimum Prices Scheme. This scheme differed from the Price Smoothing Scheme that it offered direct price support to the producer. The Government decided to terminate the supplementary minimum prices scheme from the beginning of the 1984-85 season. A modified scheme was introduced as an interim arrangement, to apply for one season, which provided the Meat Board with a lump sum in lieu of supplementary minimum price payments to be used to supplement lamb and mutton schedules. The amount of the lump sum was finally set at $131.8 million.

15.4 Wool

New Zealand sheep are largely dual purpose meat/wool animals and their wool is predominantly coarse; 60 percent of the clip is greater than 33 microns in diameter. This contrasts sharply with Australian wool of which over 90 percent is less than 28 microns. New Zealand is by far the largest supplier of coarse wools, contributing over 40 percent of the world total and 5 times as much as the U.S.S.R., the next significant supplier. When the quantity of coarse wool entering world trade is considered, New Zealand's share becomes even greater: over 70 percent of traded coarse wools are estimated to originate in New Zealand.

Slipe wools—Represent around 12 percent of total New Zealand wool production and are a by-product of the meat industry. They are produced by removing wool from the pelts of lambs and sheep during the fell-mongering process. New Zealand is one of the largest producers of slipe wools in the world, with the U.K. being the main customer. Slipe wools, due to their softness, are particularly suitable for end uses such as Shetland knitwear, blankets and carpets.

End use of New Zealand wool—The coarse nature of the New Zealand clip predisposes much of it to manufactured products such as carpets, apparel, handknitting yarns, and blankets.

Uses to which New Zealand wool is put vary markedly from country to country. A good example is the production of handknitting yarns in China where an unusually high proportion of quite coarse New Zealand wool is used.

Wool production. Although New Zealand's sheep flock ranks fourth in the world the country's raw wool production is second only to Australia on a clean mass basis. This is due to the high clip yields and lower quantities of grease and other contaminants in the wool.

Table 15.25. WOOL PRODUCTION*

Season Ended 30 JuneFlock SizeYield/HeadTotal Wool ProductionAverage Auction Price (Clean Basis)

* Wool quantities are measured at point of sale rather than at source, and are therefore not strictly measures of production.

Source: New Zealand Wool Board.

 (m)(kg)tonnes (000)cents/kg
198168.85.5381337.2
198269.95.2363345.5
198370.35.3371346.7
198470.35.2364397.7
198567.95.4373507.9

New Zealand Wool Board

The New Zealand Wool Board was originally set up under the Wool Industry Act 1944 and amalgamated with the New Zealand Wool Marketing Corporation in 1978. The board has 6 representatives of woolgrowers, elected by an electoral committee of 26 (the members of the committee are in turn elected by sheep farmers. The same committee elects the grower representatives on the Meat Producers Board). Representatives have a 3-year term and are eligible for re-election. The Wool Board also has 2 members appointed by the Governor-General on the nomination of the Minister of Agriculture. The Director-General of Agriculture is automatically a member, and the tenth member, chosen for her/his commercial experience, is appointed by the Governor-General on the nomination of the board.

The general objective of the board is to obtain, in the interests of growers, the best possible long-term returns for New Zealand wool. Among its functions are: to promote the use of New Zealand wool in existing or new markets; to develop and maintain a marketing system for New Zealand wool suited to the requirements of the world's textile industry; to market wool to the best possible advantage; to bring about the greatest possible efficiencies in the preparation, handling, distribution, shipping, and selling of wool; to encourage the production in New Zealand of types of wool suited to market requirements; to promote research into wool and sheep; and to set minimum prices for wool and operate a minimum price funding scheme.

The main sources of income for the board are: a levy on gross wool receipts ($68.8 million in the 1984-85 season) and interest on investments ($20.9 million for the 1984-85 season).

In November 1983, legislation was passed to allow the board to raise the levy from the existing 3 percent to 5 percent in 1984-85, and to give the board full discretion in the use of funds obtained.

For the 1985-86 season, this levy was further raised to 5 1/2 percent, at the expense of the Minimum Prices Fund which was reduced to a levy rate of 1/2 percent.

The board is active in all aspects of the wool industry from production through to advertising wool products overseas. Its production section is engaged in the promotion of breeding practices suited to today's market, proper wool handling and clip preparation, and co-operation with wool and sheep research organisations throughout the country. The field service trains shearers in the Wool Board shearing technique. In the 1984-85 season 2647 shearers of varying levels of skill attended Wool Board courses.

Perhaps the board's biggest role is in the New Zealand marketing system and the operation of its market support schemes. It values all wool offered at auction and intervenes in the market according to its commercial judgment. In doing this it may buy wool. The board sells from the stockpile of bought-in wool, normally through the established wool trade in New Zealand. The wool is also valued for the purpose of ensuring a minimum return to growers (the minimum floor price). In the 1985-86 season the floor price was set at an average of 330 cents per kilogram, greasy weight. When the sale price for a lot at auction falls below the appropriate minimum price, the difference is paid to the grower as a supplementary payment. Supplement is also paid on privately sold wool, provided the buyers display it under specified conditions for appraisal by the board.

The board's market support operations are funded by its general capital and reserves which totalled $170 million at 30 June 1985 and which had their origin in profits on the sale of wool accumulated during World War II. Supplementary payments under the minimum prices scheme are funded by a minimum price funding levy introduced on 1 July 1976. Currently the levy is 0.5 percent of gross proceeds from all shorn wool sold for the first time. Supplementary payments are made from a separate Minimum Wool Prices Funding Account administered by the board.

A wool auction sales committee, comprising representatives of the board, the New Zealand Wool-brokers Association, and the New Zealand Council of Wool Exporters, set up under provision of the Wool Industry Act 1977, draws up and supervises the roster of wool auction sales.

The board is also empowered to grant or revoke licences to export wool. Under the regulations the board has to keep a list of registered private buyers, registered wool exchange operators, and scourers.

It is involved in the development of market innovations, such as the sale of wool by sample, it is a negotiator of freight rates, and operates a number of wool stores for its own use. Board economists conduct a market intelligence service covering production, disposal, and market prices.

The board provides a technical service to wool processors and textile manufacturers, both in New Zealand and overseas, and is extensively involved in the promotion of wool textiles, on its own account and in co-operation with garment and carpet manufacturers and the retail trade throughout New Zealand. It also supports New Zealand manufactured wool products in export markets.

In the 1984-85 season the board's share of the budget of the International Wool Secretariat was $33.6 million. This was about 23 percent of !WS funds. The IWS is a partnership with Australia, South Africa, Uruguay and Brazil. It has its headquarters in London and operates in almost all countries with a substantial consumer market.

The IWS offers technical and fashion advice in menswear, womenswear, and furnishing to manufacturers, administers the Woolmark and the Woolblendmark (maintaining quality control in more than 15 000 factories), and promotes wool through campaigns with manufacturers and retailers. Extensive research and development is also undertaken.

The board provides over 50 percent of the revenue of the Wool Research Organisation of New Zealand (WRONZ). In 1984-85 this was $1.72 million. Established in 1960 at Lincoln, Christchurch, the organisation has a professional staff of about 34. It conducts fundamental research on the wool fibre and applied research on scouring, processing, and performance of New Zealand wools. It is also developing the measurement of wool characteristics as an aid in marketing. The board is represented on the WRONZ executive.

The board is also represented on the Wool Testing Authority. Wool testing, which has been carried out in New Zealand since the 1940s, is used by buyers and processors as a basis for trading. Certificates are provided for yield, vegetable matter, fibre diameter, moisture content, and colour.

With the Meat Producers Board, the Wool Board maintains the New Zealand Meat and Wool Board's Economic Service, which provides economic data for both boards and outside organisations through a survey of a representative 500 pastoral farms.

The board administers on behalf of the Government the Individual Grower Income Levy Retention Scheme. Under this scheme a proportion of the gross proceeds from the sale of wool is retained at the Reserve Bank when the adjusted weighted average sale price at auction exceeds a “trigger price” set by the Minister of Agriculture (500 cents per kilogram, greasy, in the 1985-86 season). The proceeds so retained are credited to individual growers accounts and are refundable to growers after 5 years, or in special circumstances as described in the regulations. Funds are held by the Reserve Bank. No money has been retained under this scheme for the past 5 seasons.

Wool marketing

Sale of Wool. The most common way of selling wool is by open auction in New Zealand; 67 percent was sold this way in 1984-85. The auction season runs from August to the following June, Sales are held at 4 centres around the country and they attract buyers representing all the main wool importing countries. Growers can also sell their wool to merchants privately in New Zealand (18 percent in 1984-85), and the New Zealand Wool Board buys certain types of wool direct under its Extra Choice Scheme. Small quantities of wool are also shipped to Britain for sale at auction.

The Wool Board's market intervention and strata price control policies help to steady the market in times of uncertainty.

In 1984-85 the Wool Board was able to reduce stocks from 14 011 tonnes to 6307 tonnes during the season. The 1984-85 average auction price was 27 percent above the previous season in actual dollars (14 percent in real terms) reflecting the improved international economic conditions.

Final destination of New Zealand wool. Around 90 percent of the New Zealand clip leaves the country in the raw state, although more than half has been scoured. Of the remaining 10 percent, local mills export a further 6 percent in product form, leaving approximately 4 percent for domestic consumption (1983-84 figures). A proportion of wool bought by local mills is resold without processing, so the level of local mills purchases does not reflect the amount of wool entering a further processing stage in New Zealand.

It is important to distinguish between initial and final destinations of New Zealand wool exports. Initial destinations have changed substantially over the years, and there are sometimes very large changes from year to year. In general there has been a steady decline in the share going to the U.K., Europe and the U.S., compared with a steady increase in the share going to China, East Asia, and the U.S.S.R.

Final destinations of end-products made from New Zealand wool have in contrast been rather more stable. Much of the wool tends to be used in the same countries as it did years ago even though the location of the early stage processing may have changed. Countries such as the U.S. and West Germany use less raw wool but import made-up carpets from other countries.

The notable exception is China where imports of New Zealand wool have risen significantly, and most is used in products that remain within the country, which represents a real shift in the use of the product.

The total value of New Zealand's raw wool exports rose above $1 billion for the first time in 1982-83 (f.o.b. basis). In 1983-84 the value rose to $1,118 million and with the boost to prices from the 1984 devaluation, 1984-85 exports reached $1,479 million. This represented over 10 percent of total exports.

Table 15.26. EXPORT DESTINATIONS OF NEW ZEALAND RAW WOOL

Country1980-811981-821982-831983-841984-85

Source: New Zealand Wool Board.

 (000 Tonnes Clean Equivalent)
Japan21,06532,87830,15234,12836,980
United Kingdom24,81728,18834,18731,53236,416
Soviet Union21,87128,61326,25424,67517,694
France16,65615,53512,91420,36118,495
China26,65219,71731,77619,73035,897
United States9,0648,1068,21414,94612,470
West Germany14,70612,69312,59414,62615,706
Italy10,95911,5159,13412,15212,517
Netherlands15,75215,24218,82011,48510,879
Belgium6,7408,28710,5689,86518,419
Australia and Pacific Is.7,2299,4068,3039,51411,406
Other69,96758,53075,64564,84451,251
         Total exports245 478248 530278 561267 858278 130

Over the past 5 seasons there has been a notable increase in purchases by New Zealand mills, which in 1983-84 became the third largest customer. This has resulted from a large increase in manufactured product exports.

Table 15.27. RAW WOOL PURCHASES BY NEW ZEALAND MILLS

Year000 Tonnes Clean Equivalent

Source: New Zealand Wool Board.

1980-8116.6
1981-8220.6
1982-8318.9
1983-8427.8
1984-8537.5

Net domestic consumption of wool in New Zealand is the highest in the world on a per head basis. In 1985 this was estimated at 4.15 kg per head compared with 1.99 kg in Australia, 2.03 kg in West Germany, 1.46 kg in the U.K., and 0.64 kg in the U.S.

Insofar as New Zealand wools are predominantly of coarse quality they are not so directly competitive with the output of other major producers. Table 15.28 shows the relative positions of the main exporting countries.

Table 15.28. MAIN EXPORTERS OF WOOL 1983-84 (ACTUAL WEIGHT)

 000 TonnesPercent of Total

Source: New Zealand Wool Board.

Australia54846
New Zealand30526
Argentina716
South Africa645
Uruguay272
All Others16915
         Total1 184100

Wool product exports. The most important wool product exports from New Zealand are floor coverings and yarns. These have shown strong growth over the past 2 years. The value of yarn exports increased by over 120 percent, with 6878 tonnes shipped in 1984-85. Floor coverings increased by more than 70 percent in value terms to 5 540 000 square metres. Other wool-based export items include raw and processed sheepskins, tops, wool waste, blankets, fabrics, knitwear and other clothing.

Earnings from total home-based products rose over 50 percent to $224 million in 1984-85 (f.o.b. basis) compared with $144 million in the previous year, as shown in Table 15.29.

Table 15.29. WOOL PRODUCT AND SHEEPSKIN EXPORT EARNINGS

Product1982-831983-841984-85

Source: New Zealand Wool Board.

 ($000 f.o.b.)
Wool floor coverings57,59064,72799,805
Wool yarn37,63955,97183,876
Sheepskins—raw6,8606,9658,567
Sheepskins—processed4,5714,5296,793
All other11,43111,79124,813
         Total118,091143,983223,854

Wool prices

The New Zealand Wool Board and the Wool Marketing Corporation were amalgamated under the Wool Industry Act on 7 February 1978. One of the main activities of the Wool Board is the continuance of the corporation's minimum or floor price plan, and its market intervention and strata price control schemes.

The floor price plan was introduced in 1952 by the corporation's predecessor, the New Zealand Wool Commission. It guarantees wool growers a minimum income from the wool they sell. The board prepares a table of minimum prices for all types of wool (there are almost 2000) before the start of a new selling season. The prices are fixed in agreement with the Minister of Agriculture, and are not altered during the season. If wool is sold either to commercial buyers or to the board, at a price below the appropriate minimum, a supplementary payment is made to the grower up to the floor level. Supplementary payments are made from the grower's Minimum Woo! Prices Funding Account. The account is funded by a 1 percent levy on the returns for wool sold for the first time at above minimum prices. This is to be reduced to 0.5 percent for the 1985-86 season and the promotion and research budget increased to 5.5 percent.

The minimum price per kilogram greasy weight for the 1984-85 season was 315 cents.

For the 1985-86 season the minimum price per kilogram greasy weight is 330 cents, or 443 cents for clean wool.

The floor price plan applies to all grower-owned scoured and greasy wool sold for the first time at auction in New Zealand and Britain. There are also procedures to protect greasy wool sold privately in New Zealand.

The board can buy wool at any price under its market intervention policy. It will do this to prevent lots being sold significantly below the market, and to cushion declines in the price. Intervention levels can be set above, at, or below, floor prices. Levels can be changed at any time by the board's directors, although their aim is to set levels which can be held for some time. The board will bid at auction if prices drop to intervention levels. If the commercial benches do not raise the price, the board buys.

When prices are above intervention levels, the board operates its “strata price control”. It bids when necessary to prevent price falling more than a set percentage on the previous day's levels.

Table 15.30 shows clean equivalent 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 New Zealand Wool Board.

Table 15.30. WOOL SOLD AT AUCTION

Season Ended JuneGreasy Wool Sold at Auction Clean EquivalentTotal Sale ValueSale Value per KilogramAverage Auction Price (1984-85 cents)Average Minimum Price per Kilogram Clean

Source: New Zealand Wool Board.

 Tonnes (000)$(million)centscentscents
1980174.44624.9358.23633.20274
1981189.38638.5337.15515.10291
1982189.37654.4345.56455.20341
1983191.30663.3346.74403.90341
1984193.73770.5397.72444.00341
1985196.72999.2507.94507.90423

15.5 Dairy produce

Most of the butter produced in New Zealand is of a “sweet cream” 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. The predominant cheese variety produced is cheddar. Wholemilk powder is made from the whole milk, while skim-milk powder is made from the separated milk following the removal of the milkfat for buttermaking. Buttermilk powder is made from a by-product of the butter manufacturing process. Lactose is made from whey, a by-product of cheesemaking. At one time skim milk, buttermilk, and whey were fed to pigs, but in recent years they have almost entirely been processed to produce powders and specialised dairy products. Herd sizes have increased as suppliers with small herds have ceased production and as dairy farms have been amalgamated.

Milk production. During the year ended August 1985, town milk suppliers provided 691.2 million litres of milk. Of this, 426.1 million litres went to milk stations and eventually reached the consumer in the form of 349.4 million litres of pasteurised milk and 10.2 million litres of sweet cream. The balance of the total production went to dairy factories (212.6 million litres), and to the manufacture of ice cream, flavoured milk, yoghurt, and cottage cheese (52.5 million litres).

Table 15.31. MILK PRODUCTION

SeasonDairy Cows in MilkAverage Production per CowDairy-Company Suppliers*Average Size of HerdMilkfat per Supplier
MilkfatMilk

* Does not include town milk suppliers (about 1700).

Source; New Zealand Dairy Board and New Zealand Milk Board.

 (000)kglitres  kg
1980-812,0271473,03715 033x12918,856
1981-822,0611443,03814 843x13319,090
1982-832,1281433,01214 896x13719,600
1983-842 210x1543 206x14 978x140x21 618x
1984-85P2,2601513,17015,00014321,650

Table 15.32. MILK PRODUCTION AND UTILISATION OF MILKFAT*

Product1980-811981-821982-831983-841984-85P

* Year ended 31 May.

† Includes milk fed to stock and waste, but excludes separation loss.

Source: New Zealand Dairy Board.

 Production
Milk, litres (million)6,4836,5786,7087 395x7,540
Milkfat, tonnes (000)308312316352x360
Liquid milk, cream, and ice cream, litres (million)487487482488x485
 Utilisation of Milkfat Processed (000 tonnes)
Butter215.1200.8209.9241.1244.0
Cheese32.341.842.739.840.0
Other wholemilk products34.639.837.842.948.4
               Total282.0282.4290.3323.8332.4

Table 15.33. TOWN MILK

Year Ended 31 AugustProductionQuantity on Which Town Milk Price PaidVolume of Town Milk Sales by Milk Stations to ConsumersPrice per Litre Paid to Producers Finest GradeGovernment Subsidy per Litre of Town Milk Sales to Consumer

* Until 8 November 1984 as a result of the price freeze the price paid was 24.065.

Source: New Zealand Milk Board.

 litres (m)litres (m)litres (m)centscents
1980723.3514.2375.015.12710.806
1981674.2471.7365.918.73510.329
1982663.0437.1357.822.9598.137
1983660.0427.5352.822.9591.593
1984679.6427.6350.424.0413.510
1985691.2422.7349.426.792*1.545

Table 15.34. DAIRY FACTORY PRODUCTION

Product1980-811981-821982-831983-841984-85P

Source: New Zealand Dairy Board.

 tonnes (000)
Creamery butter200.2221.6238.5255.2242.4
Whey butter1.92.92.81.82.0
Anhydrous milkfat (AMF)45.014.68.524.834.0
Frozen cream4.65.36.18.04.8
Cheese84.3111.9114.4109.3x105.1
Condensed and evaporated milk4.84.44.03.62.5
Whole-milk powder88.8103.6101.6111.8116.9
Infant food8.010.016.613.611.5
Skim-milk powder180.9199.8164.6219.1214.3
Buttermilk powder25.023.724.028.628.0
Casein products59.647.465.263.163.9
Lactose10.911.810.310.8x11.5
Whey powders10.013.610.413.413.0

Dairy organisations

New Zealand Dairy Board. The New Zealand Dairy Board, which consists of 14 directors, functions under the Dairy Board Act 1961. Apart from 2 Government representatives, all are producer members—3 are appointed by the New Zealand Co-operative Dairy Company, 8 are elected by other dairy companies, with voting proportionate to the quantity of milkfat received by those companies from their suppliers in 6 geographically-defined wards. One director is appointed by the New Zealand Milk Board to represent the interests of town milk producers.

The Dairy Board's work is divided broadly into 2 sections; one concerned with the development of the dairy industry and the other with marketing of dairy produce.

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.

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 100 countries. The board either sells through its own local companies, or 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.

New Zealand Milk Board. 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, with the approval of the Minister of Agriculture, may make a levy on milk to finance its operations and retail prices are fixed by Order in Council. The price to the producer for the milk is fixed by the Minister of Agriculture after consultation with the Milk Board. Intermediate margins, such as those for treating milk and to vendors for its delivery, are fixed by the Secretary of Trade and Industry.

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 as to 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 paid out a subsidy on behalf of Government until the termination of subsidy payments from 1 April 1985.

Dairy product marketing

The international market for dairy products is characterised by its small size relative to the total world production of milk, with approximately 5 percent of production entering international trade. Because of this it is very vulnerable to fluctuations from external conditions, such as climate, commerce, and politics. It only takes marginal production changes in the major producers, transferred via shortages or surpluses on to the international market, for severe shifts to occur in the international supply position and international prices.

There are 4 regular dairy exporters (the EEC; New Zealand; Australia; and Canada), who provide about four-fifths of all exports. Relatively smaller quantities are exported by the Nordic countries and East Europeans.

The New Zealand Dairy Board exports annually over 600 000 tonnes of manufactured dairy products, of which around half go to the affluent countries in Europe, North America, and Japan, and the other half to the developing countries, with a heavy emphasis on South East Asia and Latin America. New Zealand now relies on the United Kingdom for only one-fifth of the value of its dairy export exchange earnings, although the United Kingdom still remains the principal market for butter.

Developed 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. It is the disposal of these surpluses, by means of heavy Government export subsidies, which undermines the stability of the international market.

New Zealand is almost the only country for which dairy exports are economically vital. For most other countries, dairy exports are a question of surplus disposal, and therefore inconsequential to national economics. Consequently, New Zealand maintains strong and consistent pressure in international councils to achieve a stable balance between supply and demand in international trade. While attempts in General Agreement on Tariffs and Trade (GATT) or other international organisations to negotiate improved access conditions in developed countries have met with a minimum of success, international arrangements covering consultative procedures and minimum prices have contributed to stabilising markets.

The “Tokyo Round” of GATT Multilateral Trade Negotiations (MTN) resulted in the negotiation of the International Dairy Arrangement to replace the OECD agreement on whole milk powder and the GATT agreements on skim-milk powder and anhydrous milkfat. The new arrangement (signed by New Zealand in December 1979), as well as extending the product coverage and providing for an annual review of the minimum prices, established the International Dairy Products Council to evaluate the international market situation and provide a forum for seeking solutions to problems in international dairy trade.

Since June 1985 the minimum prices in US dollars per tonne established under the arrangement are as follows: whole milk powder $830; skim-milk powder $600; buttermilk powder $600; anhydrous milkfat (AMF) $1,200; butter $1,000; and cheese (certain types only) $1,000.

Coincident with the multilateral negotiations, GATT bilateral access negotiations made some progress with the EEC agreement to allow the import of 9500 metric tonnes per annum of New Zealand cheese, from 1980. Additionally, access for cheese into the United States was secured at a higher level, with New Zealand's quota rising from 7447 tonnes to 17 442 tonnes per annum.

Butter—World butter production in 1984 was about 7.5 million tonnes. Excluding trade between the member states of the EEC and New Zealand's special Protocol 18 arrangement, international commercial trade in butter for 1984 was 554 000 tonnes. The relatively small size of international trade compared with production illustrates the vulnerability of the international market to distortions resulting from the disposal by large producing countries via export subsidies. At the end of 1985 stock levels in the EEC were 1.2 million tonnes.

The access level to the United Kingdom market has been progressively reduced since the U.K. entered the European Community. The U.K. was permitted to import 94 000 tonnes of butter from New Zealand in 1981, 92 000 tonnes in 1982, 87 000 tonnes in 1983, 83 000 tonnes in 1984, 81 000 tonnes in 1985, and 79 000 tonnes in 1986. Access for 2 years thereafter will be reviewed before the end of 1986.

Skim-milk powder—World production of skim-milk powder in 1984 was 4.5 million tonnes per annum. International trade (including food aid) for 1984 was 790 000 tonnes. Increased milk production in the EEC resulted in stock levels increasing rapidly in 1982 and 1983 but by late 1984 EEC stocks had declined from the peak of more than 1 million tonnes to under 0.5 million tonnes.

Casein—Casein, which is produced from skim milk, was originally chiefly used in industrial products such as the manufacture of coatings for high quality paper. In the past 15 years, however, the nutritional value of caseins and their derivatives has been realised, and they are now being put to use in an increasing range of edible products. Caseins are used as high-grade protein in food manufacture, where their nutritional and functional properties make them desirable ingredients in bakery goods, speciality high protein foods, coffee creamers, snack foods, and other products.

New Zealand is the largest exporter of casein, with most of the production going to the United States of America, EEC, and Japan.

Diversification of markets. The value of New Zealand's dairy exports to markets outside the United Kingdom has markedly increased over the last 3 decades. In 1955 only 13 percent of the value of New Zealand's total dairy exports went to markets outside the United Kingdom. In 1972, for the first time, more than half of the dairy exchange earnings came from these other markets. Since then dairy exchange earnings from the United Kingdom market have slowly declined to about one-seventh of the total. The United Kingdom continues to be the most important outlet for New Zealand butter, still taking almost 45 percent of the total volume of butter exports. However the Middle East and North African butter markets are becoming increasingly more important and Iran was New Zealand's second largest butter market in 1985. Sales of butter to the U.S.S.R. are conducted on an ad hoc basis in times of domestic shortage and it is not regarded as a long term secure market.

Japan and the United States are major markets for cheese and casein. Whole milk powder, production of which has increased markedly in recent years, is primarily exported to South America, Asia, the Middle East and North Africa.

Continued diversification of markets, however, is limited as the international dairy market free of trading restrictions is finite and relatively small (equivalent to 3 percent of total world milk production). Table 15.35 shows the changing directions of New Zealand's dairy export earnings in the period since 1970.

In March 1975, in the context of Britain's renegotiation of its terms of entry to the Community, the Common Market Heads of Government set guidelines for the quantities of butter for which New Zealand would have access to the British market for the first 3 years after 1977. They also agreed to periodic adjustments to the Protocol 18 prices, taking into account, among other things, prices paid to EC farmers, production costs in New Zealand, and trends in freight charges. In addition, they left the way-open for further access for New Zealand cheese after 1977.

In the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), which was concluded in 1979, New Zealand was successful in obtaining the Agreement of the European Community to an annual quota of 9500 tonnes of New Zealand cheese. Compared with the 70 000 tonnes of cheese which New Zealand exported to the Community prior to Britain's accession, the new quota is not large, but nevertheless it has enabled New Zealand to resume the marketing of cheese throughout the European Community.

Improved access to the EC was also negotiated for beef. The EC's annual global tariff quota was increased from 38 500 tonnes to 50 000 tonnes, thus providing some additional access opportunity in which New Zealand might share.

In June 1976 the Community's Council of Agricultural Ministers agreed on the arrangements for the import of New Zealand butter into Britain in the years 1978-80. The quantities agreed for those years were 125 000, 120 000, and 115 000 tonnes respectively.

In September 1980 New Zealand agreed under an arrangement with the Community that it would reduce its 1980 butter quota by 20 000 tonnes in return for an increase in New Zealand's c.i.f. price to the level of 75 percent of the European Community's intervention price. Agreement on New Zealand's butter exports to Britain during 1982-83 was reached at the beginning of April 1981. Under this arrangement, Britain was allowed to import 94 000 tonnes of New Zealand butter in 1981 and 92 000 tonnes in 1982. The access level for 1983 was subsequently agreed at 87 000 tonnes. The commission of the EC proposed that the access level for 1984 be set at 83 000 tonnes, reducing by 2000 tonnes per annum to 75 000 tonnes in 1988.

The Council of Agricultural Ministers agreed in part to the commission's recommendation; the principle of continued access for New Zealand butter into Britain was guaranteed for a further 5-year period but quantities were set only for the first 3 years: 83 000, 81 000 and 79 000 tonnes respectively for 1984, 1985 and 1986.

Efforts continue to be made by the New Zealand dairy industry to diversify butter exports, but market opportunities outside Europe are limited and, therefore, continued access to Britain for substantial quantities of butter remains essential.

Although the Treaty establishing the European Community included provision for a common market organisation for sheepmeat, this was not considered necessary because the Community was by no means self-sufficient in sheepmeat production. Member states operated national controls on sheepmeat imports from third countries and the introduction of a Community regulation only became necessary when French restrictions on imports of sheepmeats from European Community members other than Ireland became an issue between the United Kingdom and France in 1978.

In May 1980 the European Community Agriculture Council agreed on the regulation of the sheepmeat sector and that such regulation would come into effect only when voluntary restraint agreements had been concluded with third-country suppliers. In October 1980 New Zealand formerly entered into an agreement by which the European Community agreed on guaranteed access for New Zealand of 245 500 tonnes of sheepmeat per annum in return for which the European Community reduced the 20 percent ad valorem tariff to 10 percent.

Table 15.35. DAIRY EXPORT EARNINGS

Product197019751985
United KingdomAll MarketsUnited KingdomAll MarketsUnited KingdomAll Markets
 $(million)
Butter104.0113.2121.0146.8233.9498.9
Cheese35.747.920.273.728.7253.6
Casein3.233.50.419.45.1273.8
Other dairy products8.847.8-151.6-673.4
        All dairy products151.7242.5141.6391.5267.71,699.7

Table 15.36. DAIRY EXPORT EARNINGS PERCENTAGE FROM UNITED KINGDOM

ProductPercentage from United Kingdom
1970197519841985
Butter91.982.448.446.9
Cheese74.527.411.011.3
Casein9.62.11.90.5
         All dairy products62.636.219.315.7

Dairy produce prices

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 Acts of 1972 and 1975.

Since the 1975-76 season, the Dairy Products Prices Authority has established separate values for the milkfat and solids-non-fat (s.n.f.) components of milk on a farm gate basis at the beginning of each season. These values are established having regard to the stability and efficiency of the dairy industry, realisations and market prospects, and the state of the Dairy Industry Account. They may normally not increase by more than 10 percent nor decrease by more than 5 percent on the previous season's values.

Using the milkfat and s.n.f. prices established by the prices authority as a base, the board, in turn, fixes the export purchase prices for the major dairy products by using New Zealand average yields and costs. The board may apply differentials between products to enable the product mix to be more closely matched with expected market requirements, but in doing so must establish purchase prices for products in such a manner that the average payment for the fat and s.n.f. components is at the level set by the prices authority.

The results of the board's export trading each season are recorded in 2 separate accounts—one for the seasons' trading in milkfat products, and the other for trading in s.n.f. products. The differences between expert sales prices less selling costs and the purchase prices paid, results in a surplus or deficit in both of these accounts at the end of the year.

The board may pay up to 50 percent of any surplus in either of the trading accounts as an end-of-season distribution, provided such distribution is not considered by the Government to affect adversely the national economy and the stability of the dairy industry. Any remaining surplus, and any deficit, is then transferred to the Dairy Industry Reserve Account.

This system of purchase prices, trading, and reserve accounts, ensures that severe fluctuations in overseas prices are smoothed out when translated into the price the farmer received for milk. In the short term, a surplus or deficit in the Reserve Account may occur, but in the longer term the account must be self-balancing from overseas revenue.

Table 15.37 gives the average value of milkfat and s.n.f. in whole milk “at farm” as set by the Dairy Products Prices Authority plus the end-of-season distribution paid from the milkfat account.

Table 15.37. VALUE OF MILKFAT AND SOLID-NON-FAT

Season Ended 31 MayMilkfat ValueS.N.F. ValueEnd of Season DistributionTotal Whole Milk Value

Source: New Zealand Dairy Board.

 (cents per kilogram of milkfat)
1980-81162.0068.0035.07265.07
1981-82201.00x84.00x48.48x333.48x
1982-83224.0094.0042.75x360.75x
1983-84240.00100.0010.00350.00
1984-85268.00x113.00x15.48396.48
1985-86275.00125.00  

15.6 Pigs, poultry and bees

Pigs

Pig numbers fell in the late 1960s 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. There was increased emphasis on grain-feeding, and a significant increase in pig numbers in the grain-producing areas of the South Island. After falling throughout the first half of the present decade, pig numbers showed a small increase in 1976 and a very substantial increase in 1977, which was followed by further falls during the following 5 years. However, the numbers have been increasing again since 1983.

Table 15.38. PIGS

At 30 JuneBreeding Sows One Year Old and OverOther Pigs of All Ages (Including Boars)Total Pigs
198052,147381,937434,084
198149,495370,764420,259
198246,830358,941405,771
198345,852362,551408,403
198448,471387,925436,396

Poultry

As at 30 June 1985, there were 440 poultry farmers licensed to run more than 100 birds. Farms comprising 100 birds or fewer are exempt from having to have a licence.

Production of meat chicken during the year ended September 1985 totalled 20 538 tonnes of fresh meat and 27 526 tonnes of frozen meat.

Table 15.39. POULTRY PRODUCTION*

At 30 JuneHens and Pullets for Egg ProductionHens and Cockerels for BreedingChickens for Meat

* Excludes flocks of fewer than 25 birds.

19813 889 707196,1303 147 079
19823 740 187199,0833 552 176
19833 822 907277,1472 886 979
19843 597 607331,0623 409 877

Table 15.40. POULTRY FLOCKS*

Flock Sue (Birds)19841985
Number of RunsNumber of BirdsNumber of RunsNumber of Birds

* At 30 June.

Source: New Zealand Poultry Board.

101-1 0007754,8267653,886
1001-5 000107323,303107325,449
Over 5 0002592 845 9392572 845 939
         Total4433 224 0684403 225 274

New Zealand Poultry Board. Under the Poultry Board Act 1980 the functions of the New Zealand Poultry Board are:

  1. in general, to promote, organise and develop the poultry industry;

  2. to regulate and control the production, marketing, and distribution of eggs and egg products within New Zealand and elsewhere; and

  3. to assist, foster, and promote efficiency in the production, marketing, and distribution of poultry and poultry products.

However, in 1985 Government decided to deregulate egg marketing and new Poultry Board Regulations 1986 were promulgated to take effect from 1 April 1986. The new regulations take away the powers of the board in regard to marketing and distribution of eggs and egg products. Price control of eggs and egg products was removed at the same time.

The board has 8 members, of whom 3 are appointed as representatives of Government and 5 as representatives of poultry farmers.

Eggs. The commercial groups sell most of their eggs through licensed egg marketing agents 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 egg industry does not cater for overseas markets, though limited quantities of frozen egg pulp and dried powder surplus to local requirements are exported.

Table 15.41. EGGS HANDLED BY LICENSED MARKETING AGENTS*

YearEggs

* Year ended 30 June.

Source: New Zealand Poultry Board.

 doz(m)
1979-8048.9
1980-8151.3
1981-8251.5
1982-8351.9
1983-8451.9
1984-8549.2

Table poultry. The Poultry Board has continued to maintain a close liaison with the New Zealand Poultry Processors' Association (Inc.), an active organisation comprising the majority of processors of all types of poultry for table meat consumption. The main basis of concern to the board in this area has been that of ensuring and maintaining an economic outlet for the egg producing industry's byproduct—the roasting fowl—some 3 million hens that have completed their 13-15-month laying cycle. The continuing expansion throughout New Zealand of various “takeaway” retail establishments has been a notable feature of the table poultry industry in very recent years, and has had a vast influence on the changing eating habits of the country's population. It is estimated that over 60 percent of all meat chicken marketed is sold through these increasingly popular outlets, and it is difficult to foresee any slowdown in these activities while red meats are inclined to become a less competitive source of foodstuff.

Bees. The rich pasture lands of New Zealand and some of its bush areas are favourable for apiculture and produce high-grade honey. Although clover is still the principal type, a number of other New Zealand native honey sources do have wide national and international consumer appeal. Honeydew honey, for example, which is produced from the beech forests of the northern half of the South Island, offers considerable export possibilities.

In 1985 the total crop was assessed at 10 314 tonnes compared with last year's crop of 5818 tonnes. This is the first time the estimated crops have gone over 10 000 tonnes, but the average of 33.3 kilograms per hive means that it is not the largest crop on a per hive basis. About 2000 tonnes are exported annually. Traditionally this has been in bulk form, but equal quantities of cut comb and of extracted retail-pack honey are now being exported as well.

Bees wax production amounted to 159 tonnes in 1985. The industry's other products include pollen and queen bees (many thousands of which are now exported).

There is also a rapidly increasing demand for bees for pollination. More than 30 000 colonies were transported in 1983 specifically for the purpose of orchard pollination (mainly for kiwifruit, blackcurrants, and apples).

Fewer than 300 beekeepers are completely dependent on honey production and beekeeping for their livelihood.

Honey. In 1981 a major restructuring of the honey-marketing system was initiated. Previously, the statutory Honey Marketing Authority had exercised control over the export of honey. By industry decision, the authority has now wound up its activities, and the exporting of honey is being opened to all parties.

A New Zealand honey co-operative, the New Zealand Honey Producers Co-operative Ltd, has been formed and has acquired the assets of the former Honey Marketing Authority.

A hive levy, payable by all producers who own 50 or more honey-producing hives, is administered by the National Beekeepers Association for the benefit of the industry generally. The rate of the levy is reviewed annually—currently it is 25 cents per hive.

Table 15.42. APIARIES AND HONEY PRODUCTION*

 BeekeepersApiariesHivesHoney Production Tonnes

* Year ended 31 May 1985.

Source: Ministry of Agriculture and Fisheries.

North Auckland6571,64018,265572
Auckland1,4672,71518,594930
Hamilton7393,27245,4661,697
Tauranga8013,35548,3291,550
Palmerston North1,3953,79336,2741,088
Nelson5832,13322,775685
Christchurch7303,52845,1691,650
Oamaru3553,45546,0061,352
Gore3262,19928,735790
               New Zealand7 10326 090309 61310 314

15.7 Emerging industries

Since the 1970s, farming of feral deer and goats has developed, particularly on hard hill country, as a complement to sheep and beef farming, and as a land use diversification.

Deer

Deer farming has developed from the early 1970s to become an important livestock industry. Venison finds a ready overseas market and most of the meat produced is exported. Venison was first exported in the late 1950s from wild deer herds. The peak years for exports of feral venison were 1972 and 1973 when about 4000 tonnes was exported—principally to West Germany. Feral deer have gradually been removed from the backcountry by helicopter-borne venison hunters and by live capture of deer to stock deer farms. Currently there are more than 3000 registered deer farms holding almost 400 000 animals.

The Forest Service must be notified of farms on which deer are to be held. Deer farming is generally permitted in most regions but some species may be farmed only in specified areas.

The first deer farm licence was issued in March 1970, although deer were legally held and bred in captivity from 1962 onwards. Red, wapiti and fallow deer are the predominant farm species.

The large investment made in establishing the deer farming industry is only just beginning to realise its potential; 500 tonnes of farm venison was exported in 1984 and this is expected to triple within the next 3 years.

The Game Industry Board, representing producers, processors and exporters of the deer farming industry, was formed in 1984. The board's function is to co-ordinate and develop the marketing of the products of the deer farming industry.

Goats

In the 1980s there was a marked increase in the number of goats being farmed commercially in New Zealand for their milk, mohair, and meat production, as well as for weed control. It is estimated that there are about 360 000 feral does. There are, as at 30 June 1983, according to the Annual Agricultural Census 65 000 feral does being used for weed control and meat production. In addition, there are about 15 000-20 000 does being milked, and another 2700 goats being farmed for their mohair.

15.8 Crops and horticulture

Although pastoral farming is the major land use in New Zealand in recent years there have been significant increases in acreages planted in broadacre and horticulture crops.

In traditional arable production regions such as Canterbury, Southland, Hawke's Bay, and Wanganui-Manawatu there have been increased arable plantings, particularly of malting barley for the export market. Meanwhile plantings have begun in other regions such as Wairarapa. Other crops include wheat (mainly for domestic use), herbage seeds and some herbs and oilseed rape (for both domestic and export markets).

Horticultural production can be found in pockets on the 2 main islands. The most dramatic increases in plantings in the past decade have occurred in the Bay of Plenty during the development of kiwifruit production. However, in other areas which have traditionally grown horticultural crops such as Northland, Hawke's Bay, Poverty Bay, Horowhenua, Nelson, Marlborough, and Otago there have also been increased plantings and changes in crops planted.

Major crops for the export market include kiwifruit, pipfruit, summerfruit (stonefruit), berryfruit, and grapes (mainly for wine).

Grain, vegetable and seed crops

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.

Table 15.45 shows the varieties of wheat, oats, barley, and peas threshed during the year ended 30 June 1984. It should be noted that some farms grow more than 1 variety of a crop and that if, for example, a farm grows 3 varieties of wheat it appears 3 times in the “Number of Farms” column. As a result, the aggregates of farms by individual varieties may exceed the totals of farms under particular crops.

Table 15.43. GRAIN AND PEAS AREA THRESHED: YEAR ENDED JUNE 1984

Statistical AreaWheatOatsBarleyPeasMaize
   hectares  
Northland 1261-379
Central Auckland77 184-216
South Auckland - Bay of Plenty  988-10,985
East Coast-366245 2,822
Hawke's Bay9804143,143504935
Taranaki40751465 418
Wellington6,39290915,76618641715
                North Island7 856175220 8522 36817 470
Marlborough1,3083062,3121,039 
Nelson46658297106
Westland46658297106
Canterbury45,5549,71671,96617,721 
Otago5,5372,41314,168572-
Southland8,4215,49315,535190-
                South Island60 82417 994104 56319 619106
                New Zealand68 68019 746125 41521 98717 576

Table 15.44. GRAIN AND PEAS YIELD: YEAR ENDED JUNE 1984

Statistical AreaWheatOatsBarleyPeasMaize
   tonnes  
Northland 25256-2,655
Central Auckland300 530-1,904
South Auckland - Bay of Plenty 8693,746-96,320
East Coast  1,059 27,737
Hawke's Bay4,0591,41213,5431,8128,102
Taranaki2,0681762 232 J 2,964
Wellington32,2753,53574,4036,83913,899
                North Island38 7026 01795 7698 651153 581
Marlborough5,6439598,9013,042 
Nelson201942,353370743
Westland201942,353370743
Canterbury205,47536,064321,08361,301 
Otago24,9619,26866,6312,054-
Southland39,75522,26976,273752-
                South island275 85468 754475 24167 519743
                New Zealand314 55674 771571 01076 170154 324

Table 15.45. GRAIN AND PEA VARIETIES THRESHED 1983-84 HARVEST

VarietyNumber of FarmsArea ThreshedTotal YieldAverage Yield Per HectarePercentage of Surveyed AreaPercentage of Total Yield
  hectares (000)tonnes (000)tonnespercentpercent
Wheat—
    Oroua6799,79241,98143.843.51
    Arawa1612,2809,09840.890.76
    Karamu7049,66746,92553.793.93
    Kopara4517,35332,39642.892.71
    Rongotea1,31527,143127,026510.6510.63
    Hilgendorf435992,12740.240.18
    Takahe5807,53733,84942.962.83
    Other3504,30921,15451.691.77
                Total4 23368 680314 556526.9626.33
Oats—
    Mapua (Makaru)1,29112,01847,02544.723.94
    Onward (Oware)1771,4145,13740.560.43
    Amuri1771,1073,76630.430.32
    Other white.2361,9827,07140.780.59
    Black supreme533111,04930.120.09
    Taiko1801,6465,88940.650.49
    Other coloured1781,2684,83440.500.40
                Total2 29219 74674 77147.756.26
Barley—
    Mata1081,2874,90840.510.41
    Goldmarker1,64724,631115,48359.759.67
    Kaniere2913,19212,29441.251.03
    Zephyr1,16510,88943,40444.273.63
    Hassan5566,61126,78342.592.24
    Magnum5146,86931,40152.702.63
    Gesigie3164,39019,70941.721.65
    Triumph2,01042,540199,609516.7016.71
    Other1,75024,806117,41959.749.83
                Total8 357125 415571 010549.2347.80
Peas—
    Garden varieties4815,15616,75232.021.40
    Field—Blue
    boiling3905,62420,68442.211.73
    Maple4154,72616,04731.851.34
    White2142,3638,10830.930.68
    Marrowfat1962,97810,58941.170.89
    Other peas1081,1403,99040.450.33
                Total1 80421 98776 17038.636.38
Maize—
    Maize (for threshing)1,00417,576154,32496.9012.92
    Other grain1411,3683,65530.540.31
                Total1 14518 944157 97987.4413.23

Wheat in New Zealand is primarily grown for domestic human consumption or for use as stock feed. Currently control of the distribution of both imported and locally produced wheat rests with the New Zealand Wheat Board, which is also responsible for the distribution of flour and associated by-products. However, this arrangement is undergoing significant changes and the following decisions were announced in October 1984:

  1. that the flour quota system be abolished from 1 February 1987;

  2. that prices for four, bran and pollard be decontrolled from 1 February 1987;

  3. that from 1 February 1987 the board's role be restricted to trading in wheat, and as from that date, the board be required to meet mills' specifications for wheat; and

  4. that a review of the board's role post 1 February 1989 be undertaken in 1988, and that the board's monopoly trading and import role cease at 1 February 1989.

Barley grown in New Zealand is used for the manufacture of stock feed and for malting. Production has increased steadily in recent years as growers have increasingly exported malting and feed quality product to overseas markets.

Maize pimarily grown in the eastern North Island, is used as poultry feed and increasingly as a supplementary feed for pigs and other livestock.

Oats are grown mainly for threshing and green feed. They are also used to produce milled rolled-oats, oatmeal, and oaten foods.

Potatoes. The production of potatoes is usually adequate to meet home market requirements.

Potato yields have risen to such an extent that a population of 3 million is now supplied from the same area as were 1 3/4 million people 30 years earlier. Most of this increased production has been the result of research, the introduction of new varieties, and better farming practice.

Table 15.46. POTATOES

SeasonArea DugYieldYield per Hectare Dug
For TableFor ProcessingFor SeedFor Pig FoodTotal
 hectares  tonnes   
1979-807,626151,78232,80322,5996,373213,55728.00
1980-817,646148,47531,49821,7367,066208,77527.31
1981-828,795165,85344,37522,8745,623238,72527.14
1982-839,053174,55950,43627,3725,675258,04228.50
1983-849,864194,30560,93829,26210,086294,59129.87

The New Zealand Potato Board was reconstituted by the Potato Industry Act 1977 to be predominantly a producer organisation. It consists of 9 members—a member appointed by the Minister of Agriculture representing the interests of the consumer, 6 grower members (3 nominated by the New Zealand Potato Growers Federation and 3 by the New Zealand Vegetable and Produce Growers Federation), and 2 merchant members representing the New Zealand Agricultural Merchants Federation and the New Zealand Fruit and Produce Merchants and Auctioneers Federation.

The principal functions of the Potato Board are to promote and assist in the orderly development of the potato industry in New Zealand, and to ensure as far as practicable an adequate supply of potatoes. It maintains a register of potato plantings and charges a registration fee. The board has the power to administer a legal minimum quality standard scheme for potatoes; to specify standards for table and seed potatoes; to foster, arrange, or undertake the disposal of surplus potatoes or sub-standard potatoes or the export or import of potatoes where necessary; to further sales by publicity or otherwise; to maintain statistics and disseminate information to growers; and to foster research and development in the industry.

Onions. Approximately 85 percent of the onion crop is normally grown in the North Island, principally in the Pukekohe district.

Table 15.47. ONIONS

SeasonAreaTotal Yield*Yield per Hectare*

* No longer collected.

 hectarestonnestonnes
1979-802,28979,15334.58
1980-812,13768,87432.23
1981-821,920--
1982-831,823--
1983-842,121--

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 Divisions 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.

Machine-dressed seed. The production of machine-dressed grass, clover, brassica, and other seed for the year ended 31 December 1984, is set out in Table 15.48 together with the corresponding total for 1983. The figures are taken from returns from seed dressing plants.

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.

Table 15.48. SEED PRODUCTION

Type of Seed19831984
 tonnes
Ryegrass—
    Hybrid1,2601,848
    Italian ryegrass (including Western Wolths)1,1141 44
    Perennial ryegrass9,0808,487
    Tetraploid9662,133
Other grasses—
    Browntop3432
    Chewing fescue1127
    Cocksfoot571386
    Crested dogstail2994
    Prairie grass69235
    Timothy8470
    Yarrow29
    Yorkshire fog96
    Tall fescue65
Clovers—
    Lotus4129
    Mixed clovers13749
    Suckling clover1723
    White clover7,7146 228x
    Red clover266438
Other—
    Lucerne89124
    Kale221344
    Maize1,6101,262
    Peas-
    Garden16,85814,278
    Field23,38733,296
    Rape474739
    Turnip44150
    Barley17,26122,297
    Oat6,2596,779
    Ryecorn1,0281,065
    Wheat11,79611,225
    Linseed367423

Horticulture

Fruit production. In the year to June 1984, 176 709 tonnes of fresh fruit at a value of $233.0 million was exported and a further $35.1 million was earned from processed fruit.

Table 15.49. AREAS PLANTED IN FRUIT

Fruit19831984Main Districts
Citrus—hectares 
    Grapefruit419278Bay of Plenty
    Lemons243200Bay of Plenty
    Mandarins466298Bay of Plenty, Northland
    Oranges848772East Cape, Northland
    Tangelos741569Bay of Plenty, Northland
Pip fruit—
    Apples6,7567,024Hawke's Bay, Nelson
    Pears652660Hawke's Bay, Nelson
Stone fruit—
    Apricots668670Otago
    Nectarines787948Hawke's Bay, Otago
    Peaches1,2741,190Hawke's Bay, Auckland
    Plums398338Hawke's Bay, Auckland
    Cherries-175Marlborough
Berry fruit—hectares 
    Blackcurrants1,302890Canterbury, Southland
    Blueberries487516South Auckland, Bay of Plenty
    Boysenberries571487Nelson, South Auckland, Bay of Plenty
    Raspberries513532Canterbury, Nelson
    Strawberries375364Auckland
    Other Brambles159168South Auckland, Bay of Plenty
Subtropicals—
    Avocados9921,062Bay of Plenty, Northland
    Feijoas323258Bay of Plenty
    Kiwifruit13,10116,013Bay of Plenty
    Tamarillos403396Northland. Bay of Plenty
    Passionfruit-85Bay of Plenty
Grapes (outdoor)5,9726,007Gisborne, Hawke's Bay

Grape growing and wine production. The estimated net area of the vineyards throughout New Zealand as at June 1984 was 6007 hectares. The main grape-growing areas are Gisborne, Hawke's Bay. Marlborough, Auckland, and Poverty Bay.

In Table 15.51 the figures of wine production and sales are based on an annual census of New Zealand winemakers licensed under the Wine Makers Act 1981 and producing fruit-wine or grape-wine during the current June year.

New wine put down during the 1984-85 season increased from 42.2 million litres the previous year to 60.3 million litres, an increase of 42.9 percent. Sales increased 2.2 percent.

Table 15.50. WINE STOCKS

Crape and Fruit WineYear Ended June
198319841985

* Differences between closing stocks one year and opening stocks the next are caused by changes in the number of licence holders operating from year to year and differences notified by wine-makers when preparing their figures.

 litres(000)
Winery stocks at start of season*58,10975,68272,101
Production during season58,02642,15360,289
Disposals during season39,18643,20544,135
Winery stocks at end of season*75,35573,46186,602
Losses during season, samples, spillages, own-consumption, etc.1,5941,1691,654

Table 15.51. WINE PRODUCTION AND SALES

Grape WineYear Ended June
1983-841984-85

* Includes all cocktails, liqueurs and wine-based products, 15 percent alcohol by volume and over.

 litres(000)
Production—
Table wine—White still22,94441,799
    Red and rose still2,3214,277
    Sparkling5,4837,887
                Total table wine30,74853,963
Fortified wine* (including all cocktail liqueurs)10,9365,663
                Total production41 68459 626
Sales
Table wine—White still24,05026,256
    Red and rose still2,8483,057
    Sparkling5,8595,480
                Total table wine32,75734,793
Fortified wine *9,8458,629
                Total sales42 60243 422
Stocks at 30 June  
Table54,75071,005
Fortified18,02114,972
                Total72 77285 977

Apples and pears. Over 1000 orchardists consistently sell apples and pears to the New Zealand Apple and Pear Marketing Board. Over 80 percent of the total crop received comes from Nelson and Hawke's Bay.

Table 15.52 shows the quantities of the main varieties of fresh apples and pears received by districts by the Apple and Pear Marketing Board during the 1984-85 season.

The New Zealand Apple and Pear Marketing Board was established by an Act of Parliament in 1948. The board has the power to acquire and market all apples and pears grown in New Zealand. The Act was amended in 1967 to set up the Apple and Pear Prices Authority. The current legislation is the Apple and Pear Marketing Act 1971.

The Apple and Pear Prices Authority comprises 2 New Zealand Fruitgrowers' Federation representatives, 2 Government representatives and an independent chairperson. The authority's function is to determine each season the price the board must pay for the fruit it receives. This price is a New Zealand average and, within it, prices to growers vary for the different varieties, grades and sizes.

The majority of the New Zealand apple and pear crop is purchased by the board, with private gate sales by growers limited by regulations to not more than 2 cases per customer or, with the permission of the board, to retailers. Manufacturers may be licensed by the board to purchase their requirements direct from growers.

The board decides what proportion of the fruit is to remain in New Zealand and what proportion is to be exported. It 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.

Apart from its fresh fruit activities, the board is also extensively involved in the processing of apples and pears with over 30 percent of the total crop handled being processed into fruit juices and other apple products for both domestic and export sales.

A defined mechanism exists for the distribution of any surplus achieved in the board's trading in any year. The first call on any surplus is to cover a declared capital charge for the year which is set prior to commencement of harvest. Any balance remaining up to a declared seasonal supplementary price is paid in full to the growers.

Should the board's trading provide a surplus in excess of the declared supplementary price. 50 percent of this further surplus is paid to growers and 50 percent is retained within a Stabilisation Account. This Stabilisation Account is used to fund losses sustained in any trading year.

Table 15.52. APPLES AND PEARS RECEIVED BY APPLE AND PEAR MARKETING BOARD IN 1984-85 SEASON

VarietyHawke's BayNelsonOther DistrictsTotal

Source: New Zealand Apple and Pear Marketing Board.

Apples—cartons (000)
    Granny Smith62 795.327 067.211 674.9101 537.4
    Stunner Pippin2 530.18 733.64067.215 330.9
    Golden Delicious3 230.79 914.63555.516 700.8
    Red Delicious38 123.215 805.37 619.661 548.1
    Cox's Orange Pippin4 645.713 999.83 165.421 810.9
    Other22 479.814 803.17 528.244811.1
                Total apples133 804.890 323.637 610.8261 739.2
Pears—
    Packham's Triumph1 202.31 475.0229.02 906.3
    Winter Cole1 345.3727.6293.32 366.2
    Winter Nelis1 256.8255.4529.82 042.0
    Other765.2730.0534.42 029.6
                Total pears4 569.63 188.01 586.59 344.1

Table 15.53. APPLE AND PEAR STABILISATION ACCOUNT

SeasonProfit or LossRetained by BoardDistributed to GrowersStabilisation Account

Source: New Zealand Apple and Pear Marketing Board.

 $(000)
1979-8014,5615,4439,11822,716 
1930-81-12,042-12,042--130 
1981-8217,28911,1736,1165,986 
1982-838,1084,3933,7157,750 
1983-8426,78613,62813,15819,073 
1984-8524,2498,93215,31724,036 

Further information

The Agricultural Economist—Ministry of Agriculture and Fisheries (quarterly).

Agricultural Statistics—Department of Statistics (annual).

Annual Reports of Producer Boards (N.Z. Wool Board, N.Z. Dairy Board, N.Z. Meat Producers Board, N.Z. Milk Board, N.Z. Potato Board, Wheat Board, Tobacco Board, N.Z. Poultry Board, N.Z. Apple and Pear Marketing Board, etc).

Dairy Industry: Information at a Glance—N.Z. Dairy Board (annual).

Report of the Department of Lands and Survey (Parl. paper C. 1).

The Future for New Zealand Agriculture—N.Z. Planning Council (published by Fourth Estate Books).

Report of the Ministry of Agriculture and Fisheries (Parl. paper C. 5).

Monthly Abstract of Statistics—Department of Statistics.

The New Zealand Beekeeper (annual).

N.Z. Fertiliser Statistics—Ministry of Agriculture and Fisheries (annual).

N.Z. Horticulture Statistics—Ministry of Agriculture and Fisheries (annual).

The N.Z. Meat Producer—N.Z. Meat Producers Board (monthly).

N.Z. Pork Industry Council (annual).

Productivity Statistics of New Zealand Agriculture, 1960-1975—Ministry of Agriculture and Fisheries.

Sheep Returns (Parl. paper C. 5A).

Chapter 16. 16 Forest industries

New Zealand's forest industries are mainly based on 1 045 000 hectares of forest plantations. The resource has been built up by afforestation with introduced species, mainly conifers, which produce usable wood in 25 to 30 years, a much shorter time than the slow growing indigenous species. There is also very restricted production from natural forests. The planted forests are almost all managed for wood production, about half of them by the State. It also manages approximately 75 percent of the natural forests, which are very much more extensive. They are mainly used for purposes other than timber production, and this aspect of forestry is described in chapter 14.

The plantation forest resource continues to increase, and although harvestable volumes of wood are unlikely to exceed current levels in the 1980s, in the next decade there will be a marked expansion in the supply of timber. As domestic demand for forest products is expected to grow slowly, virtually all of the increase in wood supply will be available for export. Approximately 40 percent of all softwood harvested in New Zealand is used in export products, providing a sound basis for future expansion of the wood processing industry.

16.1 Production forestry

Plantation forests. Introduced conifers form the bulk of the large and valuable plantation-forest estate; and among these radiata pine (Pinus radiata) is the supreme multi-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). In recent years, planting of the last two species has stopped because they have proved less versatile and slower growing than radiata pine. The largest forests are in the centre of the North Island, but medium and small plantations are distributed throughout most of the country. Radiata pine constitutes about three-quarters of the area of State plantations and about 95 percent of private plantations.

State plantation 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 being 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 plantation-forest estate by the end of the century. The annual rate of new planting by the State has increased considerably since 1961 and since 1974 has averaged some 20 000 hectares per annum, over 5 times the rate achieved in 1961. Private sector afforestation continues at a high rate, with 30 557 hectares planted in 1984.

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 uneconomic plantations, and improving the quality of the trees to provide diversity of marketable products. Present government policy is for trading departments to take a commercial approach to their operations. All plantation activities are assessed in terms of their economic viability. New planting is being concentrated on those areas that meet commercial rates of return. This is likely to lead to a reduction in new planting programmes.

Plantation special purpose species have also been evaluated and these are planted on suitable sites. Uses for these timbers are furniture, cabinet work, turnery, joinery, veneer and boat-building.

Natural production forests. Conservation measures in natural production forests involve restriction of the annual cut, rigid insistence on full utilisation, and block sales of carefully measured standing timber. 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. Selective harvesting of terrace rimu forest in south Westland provides a favourable forest environment for the regeneration and growth of rimu. In the central North Island, harvesting of timber from natural forest is now at very low levels and in some forests is restricted to recovering dead trees. The forest's natural regeneration is supplemented by planting native seedlings. 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, wood unsuitable for saw logs is being used for this purpose. Studies on the long-term management potential for saw log production are being made in tawa forests.

The kauri forests, now only remnants, are owned principally by the State. Management 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 1.00-130 years. Many large areas of beech forests are still intact and, in the case of red beech, there are extensive stands of young 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 and other feral animals, the browsing of which may check or even prevent effective regeneration, and difficulties associated with the utilisation of the non-sawlog component of the forest crop.

Private forestry. Plantation forest holdings other than State forests amount to 512 000 hectares. In 1985, approximately 500 hectares of new planting was carried out under the government's forestry encouragement loan scheme (for local authorities). Also, 2000 hectares of established planting was prued and thinned under this scheme. The phasing out of income tax deductions for forestry development expenditure was announced at the end of 1985. Approximately 33 252 hectares of new planting was carried out by the non-state sector outside government incentive schemes, but with tax deductability. Pruning and thinning was carried out on 34 440 hectares of established planting. The Forest Service provides guidance for private growers in all plantation matters. Because of the high interest in private forestry, increasing emphasis is being given to providing information and training services. Handbooks are available, a correspondence course is offered through the Technical Correspondence Institute, and short residential courses are held periodically. Farm Forestry Associations also assist in promoting private sector forestry and advising on the management of woodlots.

Training in forestry

The New Zealand Forest Service recruits school leavers up to 20 years of age as forestry trainees. They work and train for 12 months in the field while continuing their education, often by correspondence, to gain prerequisites for further study. Management-orientated trainees wishing to obtain the New Zealand Certificate in Forestry undertake 3 years of block study courses at the Forestry Training Centre as well as practical training in forests to gain a balanced education in forest management. Research and technical trainees are also catered for with course alternatives for the certificate, and an increasing number of Forest Research Institute technician recruits are studying for the New Zealand Certificate in Forestry rather than the New Zealand Certificate in Science.

Planning- or technically-orientated trainees wishing to do university study attend a 4-year degree course in forestry at the University of Canterbury, doing practical work during vacations. Private students may also study for the New Zealand Certificate in Forestry or the bachelor of forestry science degree and take post-graduate courses leading to a master of forestry science degree and Ph.D. in forestry. The basic skills training programme called Forest Skills Training, which is administered by the Logging and Forest Industry Training Board in Rotorua is successfully being adapted and used by the Forest Service as a formal approach to basic skills training and recognition. Prior to this the forest industry had adopted a Logging Skills training scheme also administered by the board; this scheme has been running successfully now for approximately 6 years.

Each year the Forestry Training Centre in Rotorua holds about 60 in-service management courses for forest industry personnel. The Timber Industry Training Centre, also in Rotorua, provides courses in sawmill practice, sawdoctoring, and timber machining. Accommodation, catering, and recreational facilities of a high standard are available at the Forest Training Centre Hostel for those attending courses.

Employment

Because the major manufacturing units are logically located near their raw material supplies, there is a concentration of employment in the forestry and wood products industries near the largest forest areas. This is seen in the central North Island where over half the country's plantation 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 town.; such as Rotorua, the industrial development of New Zealand Forest Products Ltd, Tasman Pulp and Paper Co. Ltd, and Caxton Paper Mills Ltd, led to the establishment of the 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.

Table 16.1. FOREST INDUSTRIES EMPLOYEES AND WORKING PROPRIETORS

As at FebruaryForestry*LoggingSawmillingTimber MerchantingPulp, Paper, and PaperboardOther§Total

* Includes silviculture, nurseries, etc.

† Includes felling, cutting, and haulage.

‡ Includes planing mills.

§ Includes other wood industries, plywood and veneer factories, manufacture of furniture and fittings, wooden and cane containers, and wood and cork products.

Source: New Zealand Forest Service.

19815,1793,0086,9993,30512,52014,76745,778
19825,2002,9277,0973,57712,38816,06847,257
19835,0552,7736,5823,52612,34614,58944,871
19845,4802,8966,4423,34512,14715,33545,645
19855,5952,5547,074 12,42515,059..

Census of forestry and logging 1983-84

The economic Censuses of Forestry and Logging form part of the series of integrated economic censuses of business activities in New Zealand being carried out by the Department of Statistics over a 5-year cycle. The 1983-84 census covered ail operations carried out by activity and ancillary activity units in the forestry and logging industries during the year ended 31 March 1984 (those with different balance dates submitted data for the year ended within the period 1 April 1983 to 31 March 1984).

Table 16.2. CENSUS OF FORESTRY AND LOGGING 1983-84: GENERAL STATISTICS

Statistical ItemUnitGroup 121 ForestryGroup 122 LoggingCensus Totals
Activity and Ancillary UnitsNo.6264401,066
Working Proprietors/Partners at 28/2/84No.350503853
Paid Employees at 28/2/84No.5,7352,6428,377
Salaries paid to Working Proprietors/Partners$(000)1,3073,3504,657
Salaries and wages paid to Paid Employees$(000)69,09041,894110,984
Stocks—
    Trading, including work-in-progress:
    Opening$(000)1,7784,4706,248
    Closing$(000)2,0774,0636,139
    Standing Trees:    
    Opening$(000)3,508,000-3,508,100
    Closing$(000)3,781,000-3,781,000
Income—
    Sales of Goods—Standing Trees (Stumpage)$(000)42,641150,030271,136
      —Logs (Roundwood)$(000)78,464  
      —Other Goods$(000)9,3554,67814,033
Sales of Services$(000)27,87299,884127,756
Direct Government Cash Grants and Subsidies$(000)37,3332937,362
Other Income (Excluding interest, etc.)$(000)4,1534874,640
Sales and Income (Excluding interest, etc.)$(000)199,818255,109454,927
Interest, Dividends, Donations, Patent Fees, and Insurance Claims Received$(000)7,9412978,239
                Total sales and other income (including interest)$(000)207,759255,407463,166
Expenditure—
    Purchases of—Standing Trees (Stumpage)$(000)1,09550,76151,856
    —Goods for Resale$(000)259-259
    —Fuel and Power, etc$(000)2,81912,15114,970
    Salaries and Wages paid$(000)69,09041,894110,984
    Sub-contract Payments$(000)62,04846,972109,020
    Depreciation$(000)3,5796,68110,260
    Other Expenditure (Excluding interest, etc.)$(000)122,37176,110198,481
    Expenditure (Excluding interest, etc.)$(000)261,259234,570495,829
    Interest, Dividends, Donations, Royalties, Patent Fees etc., paid$(000)36,8355,10841,943
                Total expenditure (including interest)$(000)298,095239,678537,773
Net Profit (Loss) after deducting Working Proprietors/Partners Salaries (excludes changes in values of standing trees)$(000)(91,344)11,971(79,373)
Operating Surplus (includes changes in values of standing trees)$(000)211,85720,132231,989
Value Added$(000)255,05870,611325,669
Gross Forest Development Expenditure (included in Total Expenditure above)$(000)187,793-187,793
Fixed Tangible Assets—    
    Additions to$(000)47,36414,56561,929
    Disposals of$(000)1,5575,9037,460

Table 16.3. CENSUS OF FORESTRY AND LOGGING 1983-84: REGIONAL FORESTRY SUMMARIES

Local Government RegionsActivity Units (including Ancillaries)Persons Engaged End FebruarySalaries and Wages to Paid EmployeesTotal Sales and IncomeAdditions to Fixed Assests

* As some enterprise groups and enterprises have activity units in more than one local government region totals do not sum.

 No. $(000) 
Northland686347,26810,4775,593
Auckland382563,15312,4242,451
Thames Valley101251,1052,8141,133
Bay of Plenty655684,99118,32710,854
Waikato213405,73234,291974
Tongariro497979,87642,6613,067
East Cape273944,4704,8945,680
Hawke's Bay373553,4126,2913,072
Taranaki4402,2827,7451,413
Wanganui20194   
Manawatu1523516236211
Horowhenua968948937302
Wellington733   
 698    
Wairarapa251491,1762,442819
                Total North Island3953 97644,930144,23635,568
Nelson Bays537597,11836,7556,733
Marlborough42684,3272,456799
West Coast21396   
 3,4591,680   
Canterbury232864,3926,355861
Aorangi14639331,314 
Clutha - Central Otago272212,5583,933399
Coastal - North Otago151121,3414,766240
Southland362043,4924,4841,085
                Total South Island2312 10924,16063,52211,796
                Total New Zealand*6266 08569,090207,75947,364

Table 16.4. CENSUS OF FORESTRY AND LOGGING 1983-84: REGIONAL LOGGING SUMMARIES

Local Government RegionsActivity Units (including Ancillaries)Persons Engaged End FebruarySalaries and Wages to Paid EmployeesTotal Sales and IncomeAdditions to Fixed Assets

* As some enterprise groups and enterprises have activity units in more that one local government region totals do not sum.

 No. $(000) 
Northland22725623,545344
Auckland15627303,753349
Thames Valley8384141,751172
Bay of Plenty891,00913,13976,2614,290
Waikato6775312,849100,6782,931
Tongariro583914,70516,5492,352
East Cape345192,969363
Hawke's Bay1541   
Taranaki11333241,896292
Wanganui11484102,668251
Manawatu11415032,097368
Horowhenua413   
Wellington4961441122
Wairarapa38   
                Total North Island3212 52234,216212,60611,835
Nelson Bays322263,07320,1271,326
Marlborough24   
West Coast13771,2337,094193
Canterbury26861,2304,826309
Aorangi8209237367
Clutha - Central Otago12717733,475291
Coastal - North Otago10322071,083104
Southland161071,0705,822440
                Total South Island1196237,67942,8002,730
                Total New Zealand*4403 14541,894255,40714,565

16.2 Timber and forest products

Roundwood. When by the 1930s the easy abundance of indigenous timber had gone, some of the plantation forests had reached the stage where harvesting could begin. By 1939, of the 1 700 000 cubic metres per annum of roundwood cut for industrial use, some 280 000 cubic metres came from the plantation forests. By 1949 the total annual removals of roundwood had increased to 2 500 000 cubic metres, with 820 000 cubic metres from the plantation forests. The plantation forests are now by far the more important source of wood. In 1984-85 they supplied 8 951 000 cubic metres, or 93 percent of the total supply. At 1 March 1985 the North Island contained 7381 plantations with a total stocked area of 767 269 hectares. Of this total, 335 831 hectares were in the Forest Service Planning District of Rotorua, principally in the counties of Rotorua, Taupo, Matamata, Whakatane, and Tauranga. At the same date there were 4816 plantations with a total stocked area of 273 745 hectares in the South Island. Waimea County in Nelson contained 73 454 hectares of exotic timber plantations, over a quarter of the South Island total. Table 16.5 shows the quantities of timber produced by the forests of New Zealand to supply the forest industries, which comprise 423 sawmills, 9 plywood and veneer plants, 3 particle board mills, 9 pulp and paper mills, and 2 fibreboard mills. This roundwood production does not include firewood.

Table 16.5. ROUNDWOOD PRODUCTION

Year Ended 31 MarchNatural ForestsPlantation ForestsTotal

Source: New Zealand Forest Service.

 cubic metres (thousand)
19815579,68810,245
19825149,4469,960
19836089,0199,627
19845998,7369,335
19856758,9519,626

Sawn-timber production. Radiata pine and other pines account for about 85 percent of the total cut of exotics; Douglas fir provides most of the remainder. Only 6 percent of the country's timber requirement comes from the natural forests, and this proportion is being reduced to the point where a small sustained yield in native timber can be maintained for special purposes.

Table 16.6. ROUGH-SAWN TIMBER PRODUCTION

Year Ended 31 MarchSoftwoods FromHardwoods FromGrand Total
Natural ForestsPlantation ForestsTotalNatural ForestsPlantation ForestsTotal

Source: New Zealand Forest Service.

cubic metres (thousand)
19811402,0042,144353382,182
19821302,1032,233343372,270
19831171,9822,099334372,136
19841121,9552,067244282,096
19851162,1622,278253282,306

Table 16.7. SAWN TIMBER PRODUCTION BY SPECIES

SpeciesYear Ended 31 March
19811982198319841985

Source: New Zealand Forest Service.

Natural Forestcubic metres (thousand)
Rimu and miro122112101100102
Matal32211
Totara22111
Kahikatea111211910
Tawa14121177
Beech1918171617
Other46723
                Total, native175164150136141
Plantation Forest
Pines1,7981,8861,7771,7501,936
Douglas fir168173164171175
Eucalypts22343
Other3945423451
                Total, plantation2 0072 1061 9861 9592 165
                Total (all species)2 1822 2702 1362 0962 306

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, but as with forest products in general, most post and pole requirements are now met from exotic resources. A dramatic increase in the volume of posts and poles treated (from 19 000 cubic metres in 1955 to 360 000 cubic metres in 1984-85) indicates the switch from native to introduced roundwood, together with the effective introduction and maintenance of timber preservation.

Export wood-chip industry. The industry originated in 1969 in the Nelson region where 2 mills now produce both native and exotic wood chips for export. They use trees unsuitable for sawn-timber production, enabling replanting with more productive species, and also provide outlets for forest and sawmill residues which would normally be wasted. Nelson remains the principal chip export port, handling about 50 percent of the country's total chip exports. Japan is the principal export destination.

Wood chips have been exported through the port of Mount Maunganui since 1972, through Lyttelton since 1975, through Port Chalmers since 1977 and through Bluff since 1982. Chip exports during the year ended June 1985 totalled 321 884 bone-dry units.

Pulp and paper industry. Over the last 10 years, total production of pulp has risen at an average annual rate of 4 percent, and production of paper at 3 percent. Production of pulp has risen from 455 000 tonnes in 1968-69 to 1 145 000 tonnes in 1984-85. The industry is mainly concentrated near the big plantation forests on the volcanic plateau of the North Island. There are 9 pulp and paper plants in New Zealand, 7 of which are in the North Island and 4 are integrated with sawmills to utilise fully the total input of wood. There are 7 pulp and paper companies.

The Tasman Pulp and Paper Co. Ltd was formed in 1952 to utilise wood from Kaingaroa State Forest and is now part of the Fletcher Challenge Corporation, the largest New Zealand company in terms of shareholders' funds. The company's plant is at Kawerau, Bay of Plenty. The pulp and paper mill began operation late in 1955. The annual rated capacity is 335 000 tonnes of newsprint and 165 000 tonnes of market chemical pulp. The company is now planning to install a fourth newsprint machine. Tasman Timber Ltd's sawmill on the same site has an annual rated capacity of 200 000 cubic metres of sawn timber.

New Zealand Forest Products Ltd utilises about 3 000 000 cubic metres of logs a year from its own radiata pine forests, and also small quantities of hardwood (tawa) from Slate forests. The integrated pulp mill, paper mill, sawmill, plywood mill, and reprocessing plant is situated at Kinleith, near Tokoroa.

Annual production capacities are about 500 000 cubic metres of sawn timber (including NZFP subsidiaries), 39 000 cubic metres of plywood, 408 000 tonnes of kraft pulp and 260 000 tonnes of paper. Wallboard products and multiwall bag plants are located at Penrose, Auckland, with annual production capacities of 11 million square metres of wallboard products and 100 million multiwall paper bags. The company has a 40 percent shareholding in UEB Industries Ltd, and is a joint owner with UEB of Fibre Products New Zealand Ltd, a firm which makes a range of moulded pulp products, including 40 million fruit trays a year. In April 1982 production of a new moulded pulp egg carton commenced, of which 30 million are manufactured each year. A corrugating medium machine at Tepapapa, which became operational in late 1982, is producing 25 000 tonnes of corrugating medium paper from waste paper collected in the Auckland area and a new sawmill with an annual output of 260 000 cubic metres is being installed at Kinleith in preparation for changes in the saw log supply. The establishment of a pulp and paper mill in Northland is being investigated.

Whakatane Board Mills Ltd, a subsidiary of New Zealand Forest Products Ltd, manufactures paper-board from ground wood and from semi-chemical and waste paper pulp produced on site. Total annual capacity is 110 000 tonnes. Wood supplies are drawn from its radiata pine forest at Matahina and hauled 42 km to the mill by road. A sawmill operates adjacent to the board mill.

Caxton Paper Mills Ltd, at Kawerau, manufactures a wide range of tissues and lightweight merchant and processing papers for domestic and export markets. Three machines are operating and annual production capacity exceeds 50 000 tonnes.

New Zealand Paper Mills Ltd, at Mataura, also a subsidiary of New Zealand Forest Products Ltd, has been in operation for more than 100 years. It has 2 machines producing a range of papers from kraft wrapping grades to special printing copy, 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 20 000 tonnes of paper.

Carter Oji Kokusaku Pan Pacific Ltd, was formed in 1969 after the Government invited tenders for the processing of 9 million cubic metres of wood from Kaingaroa State Forest. The Government awarded the sale of roughly two-thirds of the volume to Carter Consolidated Ltd. The new company has built an integrated sawmill and refiner groundwood mill at Whirinaki in the Napier district and has now converted the plant to thermo-mechanical pulp processing. Present productive capacity is about 240 000 tonnes of thermo-mechanical pulp and 100 000 cubic metres of sawn timber annually.

Winstone Samsung Industries Ltd's chemical thermo-mechanical pulpmill at Tangiwai produced its first pulp in the latter part of 1978. The plant, which uses exotic wood from Karioi State Forest, as well as sawmill residues, has a rated capacity of about 85 000 tonnes annually. By the end of 1985 the capacity is to be increased to 120 000 tonnes annually.

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 and paperboard.

Table 16.8. PULP AND PAPER PRODUCTION

Year Ended 31 MarchWood PulpNewsprintOther Printing and Writing PaperOther Paper and PaperboardTotal Paper and Paperboard
Chemical*Mechanical

* Chemical includes semi-chemical pulp.

† Mechanical includes groundwood pulp, thermo-mechanical and chemithermo-mechanical pulp.

Source: New Zealand Forest Service.

tonnes
1981640,583565,478322,56540,671360,299723,535
1982602,976530,813322,07036,834364,110723,014
1983571,183470,730268,79234,931367,096670,819
1984562,954499,357241,57237,825414,654694,051
1985572,839572,072297,85447,849424,395770,098

Wood-based panels. Five factories manufacture plywood, and the total output for the year ended 31 March 1985 was 55 283 cubic metres. Total production of veneer in the industry in 1984-85 was 77 493 cubic metres. New Zealand Forest Products' plywood plant at Kinleith began production of industrial and structural grades of plywood for both domestic and export markets in 1976. The annual plant capacity is 45 000 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 96 percent of total peeler log production. Now that the natural 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 harvesting timber from State natural forest to reserve logs suitable for peeling and divert them to veneer factories. Manufactured from wood pulp, the different forms of fibreboard (hardboard, softboard, and medium density fibreboard) have different properties and end uses. Production started in 1943 and has increased steadily. A mill in Canterbury began producing medium-density fibreboard by a dry process in 1976. This product has now established itself on domestic and export markets. Two further mills have been established, one in Taupo by Fletcher Wood Panels and another in Richmond by a joint venture company. Particle board is manufactured from roundwood and sawmill residues and is used by the domestic market for interior panelling, flooring and furniture manufacture.

Site development work has commenced at Kaitaia for a Triboard manufacturing plant. Commercial production is expected to start in early 1987. The board is intended for use in domestic and export markets.

Table 16.9. VENEER, PLYWOOD. FIBREBOARD, AND PARTICLE BOARD PRODUCTION

Year Ended 31 MarchVeneerPlywoodParticle BoardFibreboard

Source: New Zealand Forest Service.

 cubic metres
198187,28460,351155,267129,304
198290,28159,487154,719131,656
198385,40255,178139,569121,453
198468,40447,812157,960141,744
198577,49355,283188,302145,682

Wood preservation. In the year ended 31 March 1985, 46 percent of all sawn timber produced was preservative treated: by world standards the porportion 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 although this use is declining. 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) are used. Oil-based preservatives are applied by pressure, hot and cold baths, 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. Three types of light organic solvent preservatives have recently been approved for certain uses. Other timber (359 572 cubic metres), such as sleepers, poles, and fence posts, were treated by one of the preservation methods in 1984-85.

Table 16.10. SAWN TIMBER TREATED WITH PRESERVATIVES

YearOpen TankDiffusion* ImpregnationPressure ImpregnationTotal

* Mainly boron.

Source: New Zealand Forest Service.

 cubic metres
1980-8113312,113585,518897,644
1981-8210369,660628,751998,421
1982-832336,210618,682954,884
1983-843350,693636,827987,523
1984-8511402,785664,9531 067 749

Quarantine. The quarantine service provides a degree of insurance to the forest industry by limiting the movements of insects and disease into and out of New Zealand. This function is carried out by the NZ Forest Service timber inspectors who are responsible for the inspection and disinfection of both exported and imported wood and wood products, including logs, sawn timber and manufactured wood products.

Wood utilisation standards. In addition to the Timber Preservation Authority Specifications, there are a number of inter-related standards concerned with the processing and use of timber. These fulfill various functions including the promotion of judicious processing and use of timber, safety and consumer protection generally, as well as providing a sound basis for trading. Two important standards, viz. the National Timber Grading Rules (NZS 3631:1978) and the Code of Practice for Specifying Timber and Wood-based Products for Use in Buildings (NZS 3602:1975) are currently under revision.

Overseas trade

Forest products are important earners of overseas funds. For the year ended June 1985 exports of forest products were valued at about $796 million; Australia was the largest customer, taking 46 percent (by value) of exports, mainly in the form of pulp and paper, and Japan was the next largest, taking 22 percent, mainly pulp and logs. For the same period, imports of forest products into New Zealand were valued at $300 million.

Exports—There is an established market in Australia for sawn radiata pine and Douglas fir. Japan takes large volumes of logs, and a significant quantity of sawn timber. Logs have also been sold to the Republic of Korea and the People's Republic of China. There are restrictions on the export of native timber. Pulp and paper exports are now established exports of great value to New Zealand. Australia takes significant volumes of pulp and paper, and Japan takes large volumes of pulp. Both chemical and mechanical pulp are exported. Newsprint accounts for 65 percent of all paper exports.

Imports—The main categories of sawn timber imports are tropical hardwoods, Australian hardwoods, North American softwoods and radiata pine from Chile. Imported sawn timbers generally have specialist applications such as weatherboards with a natural finish, decorative furniture, panelling, and boat-building. Durable Australian hardwoods are imported for use as large poles, crossarms, wharf, bridge and constructional timbers, etc. Douglas fir, redwood, and western red cedar from North America are imported for structural uses, exterior joinery, and weatherboards. Most of the imported Chilean radiata pine has been used for pallets, but it is expected to be used more widely in future. Short-fibred pulp and special papers are imported and constitute 54 percent of the value of our total forest products imports.

Table 16.11. VALUE OF OVERSEAS TRADE IN FOREST PRODUCTS

Year Ended 30 JuneWood ProductsPulpPaper and Paper ProductsAll Forest Products

Source: New Zealand Forest Service.

 Imports $(000) c.i.f.
198125,8266,18863,79495,308x
198237,080x6,655100,873x144,608x
198335,969x7,588104,695x148,252x
198441,024x8,452136,084x185,562x
198554,26611,021234,971300,258
 Exports $(000) f.o.b.
1981205,662151,303175,849532,814
1982184,659x155,739x210,457x550,885x
1983176,930x161,427x165,353x503,710x
1984230,761x190,171x232,126x653,057x
1985318,951202,655274,352795,958

Table 16.12. VOLUME OF SAWN TIMBER IMPORTS

Year Ended 30 JuneHardwoodsSoftwoodsTotalLogs and Poles

Source: New Zealand Forest Service.

 cubic metres (thousand)
1981179265
19821713304
19831711272x
19841815322x
19852117373

Table 16.13. VOLUME OF TIMBER EXPORTS*

Year Ended 30 JuneNative TimberRadiata PineDouglas FirOther PlantationTotal PlantationTotal, All Sawn TimberLogs and Poles

* Small quantities are included in the exports.

Source: New Zealand Forest Service.

 cubic metres (thousand)
198164977517590596803
19825x4245314490496473
19833x3784811x436440440
19846376x54x10x440*445x540
19855430659504509360

Table 16.14. VOLUME OF OVERSEAS TRADE IN PULP AND PAPER

Year Ended 30 JuneWood PulpFibreboard*NewsprintOther Paper and PaperboardTotal

* In cubic metres.

† Excludes manufactures of paper and paperboard; excludes minor items for which no quantities are given.

Source: New Zealand Forest Service.

 Imports (tonnes)
19818,916531,95032,62734,577
198210,825402,63843 804x46 442x
198311,56736 221x42 213x49 434x
198411,0603,3776 995x56,31077 632x
198511,151121,11175,41596,526
 Exports (tonnes)
1981515,26230,943230,97497,328328,302
1982421 605x24,918199,000110 935x309 935x
1983451 207x24 991x116 075x118 800x243 875x
1984485,584949x188 755x130 137x318 892x
1985427,26520,403186,55986,460273,019

Further information

Census of Forestry and Logging 1983-84—Department of Statistics.

Report of the Director-General of Forests (Parl. paper C. 3).

Statistics of the Forests and Forest Industries of New Zealand—New Zealand Forest Service.

Chapter 17. 17 Fishing

17.1 Fishery resources

New Zealand's 200-mile Exclusive Economic Zone (EEZ) was implemented on 1 April 1978 and with an area of about 1.2 million square nautical miles is one of the world's largest. The Act establishing the EEZ does not extend territorial limits. It gives control over conservation and management of resources, but no claim, in real terms, to ownership. Control over all activities in the zone must be in accord with international law and the EEZ is policed by fishery protection patrols. (For further information on surveillance of the zone, see chapter 4 International Relations and Defence.)

The zone is divided into 8 fisheries management areas. In spite of the large size of the zone some two-thirds of its area is too deep for bottom fishing methods such as trawling and longlining. The fish resources of the zone, although substantial, are not rich by world standards. The inshore fisheries of New Zealand's territorial waters are, for the most part, fully exploited and future development depends largely on fishing the deeper waters of the zone. The sustainable biological yields in the New Zealand territorial sea and EEZ waters are currently estimated at about 350 000 tonnes of finfish, 105 000 tonnes of squid, and over 20 000 tonnes of tuna.

The advent of the 200-mile Exclusive Economic Zone provided the incentive for a considerable increase in investment in larger fishing vessels to fish the deep water outside the 200-metre isobath and in fish processing facilities. It also, through Government policy, led to the replacement of some licensed foreign fishing effort by co-operative fishing ventures between foreign and New Zealand companies.

The adoption of the Deepwater Trawl Policy in 1983 allocated quotas of deepwater species to New Zealand enterprises which may use their own or chartered vessels for catching.

Fisheries legislation was reformed by the Fisheries Act 1983 which introduced the concept of Fisheries Management Plans (FMP's). The purpose of the plans is to conserve, enhance, protect, allocate and manage the fisheries resources with the EEZ. The Act resulted in a reduction in the numbers of fishing permits issued due to a more restrictive definition of “commercial fisherman”. Each individual or company operating commercially must have a permit and each fishing vessel must be registered. The Fisheries Authority, independent of the Ministry of Agriculture and Fisheries, considers fisheries management plans as well as issuing controlled fishery licences.

The primary aims of current government fisheries policy are to:

  1. ensure a continuing harvest of high quality fish for an economically sound industry providing employment, contributing to export earnings and supplying the local market;

  2. encourage the development of aquaculture;

  3. protect and, where possible, improve the fisheries environment;

  4. enhance the natural stocks where this is practicable and economically feasible;

  5. conserve and enhance the opportunities for recreational fishing and the study of marine life.

Demersal fisheries

The 3 most important demersal (living near the sea bottom) species fished in shallower waters are red cod (Pseudophycis bacchus), barracouta (Thyrsites atun) and snapper (Chrysophrys auratus). Other important species are tarakihi (Nemadactylus macropterus), caught round the South Island and the east coast of the North Island; gurnard (Chelidonichthys kumu), taken by trawlers in the North Island and east coast of the South Island; trevally (Caranx georgianus), which is taken by trawlers and purse-seiners round the North Island; and jack mackerel (Trachufus spp.) trawled for on the north-eastern and western North Island shelf. Soles are taken mainly by trawl and flounders by set net.

The principal species taken by longline are snapper, particularly in the north-east of the North Island; and hapuku (Polyprion oxygeneios) and ling (Genypterus blacodes) in most areas, though blue cod (Parapercis colias) is the main line-caught species around Stewart Island and the Chatham Islands.

Further offshore, deeper water species such as hoki (Macruronus novaezelandiae) and silver warehou (Seriolella punctata) are caught on the Chatham Rise and off the east coast of the South Island. Off the west coast of the South Island hoki is the principal deepwater species; and on the Campbell Plateau to the south of New Zealand, catches are dominated by southern blue whiting (Micromesistius australis).

Ministry of Agriculture and Fisheries scientists using bongo nets to sample for quantities of fish eggs.

In deeper water still, at around 1000 metres and particularly on the Challenger Plateau and the Chatham Rise, catches consist largely of oreo dories (Allocyttus, Neocyttus and Pseudocyttus) and orange roughy (Hoplostethus atlanticus). Hoki and orange roughy are increasingly important species for the domestic trawl fleet.

Pelagic fisheries

The main pelagic (belonging to the upper layers of the open sea) species taken by purse-seining are trevally, kahawai (Arripis trutta), blue mackerel (Scomber austraiasicus) and jack mackerel.

Three species of tuna are fished commercially in New Zealand waters. Skipjack (Katsuwonus pelamis) are caught by purse-seiners round the north of the North Island in summer, and albacore (Thunnus alalunga) mainly by trolling off the east coast of the North Island and the west coasts of both islands. The southern bluefin tuna (Thunnus maccoyi) is caught mainly by Japanese longline vessels off the east coasts of both islands, but is also caught by New Zealand vessels off the west coast of the South Island.

Crustacea

Rock lobsters (Jasus edwardsii and J. verreauxi) are caught by potting off many parts of the New Zealand coast. All rock lobster fisheries are controlled. Rock lobster is the most valuable coastal resource in New Zealand, even though landings have stabilised at a level considerably less than the peak of over 10 900 tonnes in 1968 which was achieved with the development of the new Chatham Islands fishery.

Although the giant spider crab (Jacquinotia edwardsii), jack-knife prawn (Hymenopenaeus sibogae) and scampi (Metanephrops challengeri) are quite plentiful in some New Zealand waters, the only crustacean other than rock lobster which is becoming commercially significant at this time is the paddle crab (Ovalipes catharus).

Molluscs

The most valuable fishery in New Zealand waters is the squid fishery. The predominant squid are arrow squid (Nototodarus sloanii) and N. gouldi which are caught by trawl and jigging methods. The resource is estimated to be capable of yielding 80 000 to 100 000 tonnes per annum but is subject to considerable annual variation.

Other commercially significant mollusc resources are the dredge oysters (Tiostrea lutaria) in Foveaux Strait; scallops (Pecten novaezealandiae) in the Marlborough Sounds, in Tasman Bay and along the North Island's north-east coastline; and paua or abalone (Haliotis iris), which occurs around the rocky coastline, and of which about 500 tonnes per year are taken by free divers. Octopus, cockles and pipis have the potential for further commercial exploitation.

17.2 Fish catch

Coastal

The coastal fisheries are the traditional domestic fisheries in New Zealand, consisting mostly of the prime demersal inshore finfish, pelagic finfish, rock lobster and dredge oysters. Over the past decade a trend towards utilising larger trawlers (over 35 metres) has occurred and New Zealand fishing companies have begun to operate in deeper waters. Trawling is the principal method of taking demersal fish, accounting for 68 percent of the domestic fleets finfish catch in 1984. Trawling is more intensive along eastern coasts of both islands. Pelagic finfish are mostly caught by purse-seining which accounted for 10 percent of the domestic finfish catch in 1984. The remaining finfish are mostly caught by various line methods and set nets. In 1984, Nelson was the major fishing region with 21 percent of the total finfish landed.

Table 17.1. RECORDED COMMERCIAL LANDINGS OF FISH AND SHELLFISH

Class of Fish or Shellfish1981198219831984

Source: Ministry of Agriculture and Fisheries.

 Tonnes (000)
Orange Roughy0.310.618.121.1
Barracouta12.210.313.212.1
Snapper11.910.78.79.2
Hoki5.37.07.79.3
Red Cod2.34.06.711.3
Kahawai3.13.25.04.9
Tarakihi4.84.24.24.6
School Shark2.73.03.94.9
Skipjack3.23.73.93.9
Trevally4.64.83.83.8
Gurnard3.93.43.83.7
Rig3.03.33.83.6
Ling1.62.12.72.6
Jack Mackerel3.52.82.64.6
Eels1.00.91.41.4
Other24.824.328.031.3
    Total, finfish88.298.3117.5132.3
Rock Lobster4.64.85.05.5
Oysters Dredge9.59.49.79.4
Oysters Farmed1.51.72.21.0
Scallops1.61.84.04.7
Mussels Wild1.30.90.60.3
Mussels Farmed5.57.010.09.5
Squid1.00.61.40.7
Paua1.20.81.21.5
Other0.30.40.71.1
    Total shell fish26.527.434.833.7
    Total fish114.7125.7152.3166.0

Deepwater

The waters deeper than 200 m around New Zealand are fished by domestic vessels, foreign chartered vessels and foreign licensed vessels. The preferred deepsea finfish species are apportioned among the New Zealand companies by quota with an “others” category for other individuals and companies.

Table 17.2. DEEPWATER TRAWLING ALLOCATIONS TO NEW ZEALAND ENTERPRISES 1984-85

SpeciesAllocation Tonnes

Source: Ministry of Agriculture and Fisheries.

Barracouta27,650
Hake2,400
Hoki40,400
Ling9,620
Oreo dory20,600
Orange roughy38,200
Silver warehou6,240
Squid32,720

Domestic deepsea vessels have been purchased in recent years and may be crewed by foreign or domestic labour. Vessels chartered by joint venture companies (between a New Zealand and a foreign company) and foreign licensed vessels fish the jig squid fishery.

Table 17.3. COMMERCIAL FISHING EFFORT: NUMBER OF REGISTERED VESSELS IN NEW ZEALAND

Type of VesselAt 30 September
198319841985

Source: Ministry of Agriculture and Fisheries.

Foreign licensed vessels189189167
Foreign chartered vessels8611788
Domestic vessels4,3202,7472,519
Shore fishing permits550261233

The decline in domestic vessel numbers and shore fishing permits was due to the exclusion of part time fishers under the Fisheries Act 1983.

Freshwater

The only significant commercial freshwater fishery is the eel fishery. The freshwater fisheries for trout, salmon, whitebait and koura are recreational although unmonitored sales of whitebait by amateur fishers are thriving. Returning salmon are caught in certain rivers by salmon farmers and by commercial fishers during a trial period from 1985.

Aquaculture

The oyster farming industry is based on the stick and tray cultivation of the Pacific oyster (Crassostrea gigas). Farms are primarily situated in waters north of Auckland. Mussel farms produce predominantly green-lipped mussels (Perna canaliculus) although some blue mussels (Mytilis edulis) have been harvested on occasion. Most mussel farms are located in the Marlborough Sounds but mussels are now being reared in Bay of Plenty, Coromandel and Northland as well. Commercial farming of quinnat salmon (Oncorhynchus tshawytscha) is carried out as open ocean ranching along the east coast of the South Island where natural stocks of salmon exist in the braided shingle rivers, such as the Waitaki. Cage rearing of salmon is being developed in Stewart Island and the Marlborough Sounds.

17.3 Fish trade

In recent years fish consumption per capita has risen due largely to increased inclusion in restaurant menus as home consumption has actually reduced. Per capita consumption for 1983 is estimated at 22.2 kilograms green weight. Imported fisheries products consist largely of canned sprats, sardines, anchovys, herrings, salmon, crab sticks and prawns. The New Zealand fishing industry is export oriented with 70 percent of landings being consigned overseas in 1983.

Table 17.4. FISHERIES EXPORTS

Commodity ExportedYear Ended December
19831984
QuantityValueQuantityValue

* Excludes quantities of oysters (amounting to 793 522 dozen).

Source: Ministry of Agriculture and Fisheries.

  $(000) $(000)
 tonnesf.o.b.tonnesf.o.b.
Finfish or wetfish86,842169,72989,926242,695
Rock lobster2,73753,5482,62378,757
Shellfish (other crustacea and molluscs)*41,06486,18850,509193,909
                Total130 643309,465143 058515,361

As well as rock lobster, the most significant species exported in 1984 were snapper (6060 tonnes valued at $28.4 million), squid (44 979 tonnes valued at $90.7 million) and orange roughy (11 134 tonnes valued at $85.5 million).

The most important export markets for New Zealand's fisheries produce in 1984 were Australia ($82.5 million), Japan ($123.6 million) and the United States of America ($138.1 million).

New Zealand Fishing Industry Board

The New Zealand Fishing industry Board was formed in 1964 to promote the interests of all sectors of the fishing industry. It is a statutory organisation with income from an industry levy and government sources. Outside its major responsibilities for orderly and profitable development of the industry, the board deals with specialised problems at the request of individual fishers, processors, retailers, and fish farmers; as well as acting on behalf of the entire industry where, for example, liaison with the Government is required.

Practical involvement with the industry is maintained by the presence on the board of 2 fisher representatives, 2 fish processing representatives and a fish retailer. These are elected by their respective organisations. An independent chairperson, the Director-General of the Ministry of Agriculture and Fisheries or the Director-General's nominee and one other member appointed by the Minister of Fisheries, complete board membership.

Continual communication with fishing and governmental organisations in many other countries is fostered. This exchange of information enables the board to bring to the industry a great diversity of developments in technology and fisheries policy areas. Principal programmes are the co-ordination of a nationwide seafood promotion campaign, and the development, in conjunction with the Ministry of Agriculture and Fisheries of a new fisheries management regime based on individual transferable quotas.

A staff of 47, stationed in Wellington, is involved in fishing methods, aquaculture, processing, marketing, and the economics of the industry. Board staff liaise closely with the Fishing Industry Training Council, whose chairperson is also general manager of the board, in the area of industry training at all levels.

Assistance to the fishing industry

The Rural Banking and Finance Corporation provides financial assistance to the fishing industry. This includes loans for vessel replacement and improvements to vessels, and for the development of mussel and rock oyster farms. Loans are also made for cold storage and processing facilities.

Table 17.5. LOAN AUTHORISATIONS FROM THE RURAL BANK TO THE FISHING INDUSTRY

Loans1983-841984-85
NumberValueNumberValue

Source: Rural Banking and Finance Corporation.

  $(m) $(m)
Loans for catching603.92522.92
Loans for processing facilities112.6231.08
Rural export suspensory loans40.22--
                Total756.76554.00

Foreign licensed fishing

Since the Territorial Sea and Exclusive Economic Zone Act came into effect on 1 April 1978, foreign trawling activity has been strictly controlled and catch limits enforced. Quotas have been issued and licensed access agreements have been negotiated between New Zealand and the Republic of Korea, the Soviet Union and Japan.

Applications by foreign countries to fish must include plans showing areas to be fished, numbers and sizes of vessels, target species and other details. Apportionments are made to countries for special quantities by area. By-catch levels can be set for selected species. In the case of tuna caught by longline and purse-seine and for squid caught by jigging, no allocation has been made, but the total number of vessels is limited. All countries licensed to fish in the EEZ are charged fees based on the landed market value of the species caught.

Table 17.6. TRAWL ALLOCATIONS TAKEN UP BY FOREIGN NATIONS: FINFISH AND SQUID FISHERY

CountryYear Ended 30 September 1986
FinfishSquid

Source: Ministry of Agriculture and Fisheries.

 tonnes (000)
Korea, Republic of6,1502,240
U.S.S.R.10,0008,400
Japan56,1007,920

The Republic of Korea was authorised to operate 6 squid jigging vessels, and Japan 92 such vessels, with no tonnage restriction. Authorisations were also given for the Japanese to operate 93 tuna longliners without tonnage restriction in the southern bluefin tuna fishery, and for an unlimited number of vessels from Japan, Taiwan and Korea to operate in the albacore fishery in the northern regions of the EEZ (Taiwan was subject to the arrangement of acceptable insurances and bonds).

To enable local fishing interests to gain more knowledge of advanced fishing techniques, fish handling and fish processing, the Government also encouraged the operation of co-operative fishing ventures with foreign partners during the 5 years to March 1983. This development phase is ending.

17.4 Census of fishing

The economic Census of Fishing forms part of the series of integrated economic censuses of business activities in New Zealand being carried out by the Department of Statistics over a 5-year cycle. The 1983-84 census covered all operations carried out by activity and ancillary units in the fishing industry during the year ended 31 March 1984 (those with different balance dates submitted data for the year ended within the period 1 April 1983 to 31 March 1984).

The Census of Fishing included joint fishing ventures and covered the activities of all firms whose predominant activity was the landing of wetfish, whether from the ocean, coastal waters or inland waters. Fish farming (including oyster and mussel farming) and the gathering of molluscs and seaweed by hand were also within the scope of the census. The actual activities covered ranged from the purchase of materials and supplies to the sale of the caught fish.

The definitions of terms used in Table 17.7 are given in the glossary at the end of this book.

Table 17.7. CENSUS OF FISHING 1984: GENERAL STATISTICS BY INDUSTRY MAJOR GROUP
(Including Joint Fishing Ventures)

Statistical ItemTotals (Including Joint Ventures)Joint Ventures
Major Group 131 Ocean and Coastal FishingMajor Group 132 Fishing in Inland Waters and Fish FarmingCensus Totals

* Excludes crew members of joint fishing ventures totalling 2195.

† Includes $2,393,000 salaries and wages paid to foreign crews.

‡ Includes $56,899,000 representing assessed additional operating surplus included in charter fees paid by Joint Ventures.

§ Confidential.

Census CoverageNumber
Enterprise groups1,2872271,51416
Enterprises1,2922291,52118
Activity units1,3052341,53920
Ancillary activity units8-8-
Working Proprietors/Partners at end of February1,5223121,834-
Paid employees at end of February*2,0991282,22752
Census Values in Accounting Terms—$(000)
Salaries paid to working proprietors/partners3,7713744,144-
Salaries and wages paid to paid employees34,1771,09435,2703,088
Stocks:
    Opening8,8515489,4003,686
    Closing8,5486599,2074,171
Income:
    Sales of fish, shellfish, Crustacea, etc.296,3526,801303,153148,232
    Direct Government cash grants and subsidies20410214-
    Other income (excluding interest, etc.)7515871,338-
              Sales and Income (excluding interest, etc.)297,3077,398304,705148,232
Census CoverageNumber
    Interest, dividends, donations, royalties, patent fees and insurance claims1,9651092,074574
                Total Sales and Other Income (including interest. etc.)299,2727,507306,779148,806
Expenditure:
    Purchases of fuel and oil44,84455545,39912,649
    Employer contributions7964684215
    Salaries and wages34,1771,09435,2703,088
    Depreciation12,26067812,938165
    Indirect taxes1,446371,484562
    Other expenses (excluding interest, etc.)170,9384,239175,177124,362
                Operating Expenditure (excluding interest, etc.)264,4616,649271,110140,841
Interest, bad debts, donations, royalties and patent fees paid8,6204489,068668
                Total Expenditure (including interest, etc.)273,0817,096280,177141,509
Net Profit, after deducting working proprietors/partners salaries22,11614822,2655,781
Census Values in Economic Terms
Operating surplus89,44086090,30162,774
Value added137,9162,705140,62166,605
Fixed tangible assets:
    Additions to20,5961,79622,392§
    Disposals of5,3453105,656 

Further information

Catch—Ministry of Agriculture and Fisheries.

Fisheries Research Division Occasional Publication: Data Series—Ministry of Agriculture and Fisheries.

New Zealand Census of Fishing 1983-84—Department of Statistics.

New Zealand Journal of Marine and Freshwater Research—Department of Scientific and Industrial Research.

Report of the Ministry of Agriculture and Fisheries (Parl. paper C. 5).

Report of the New Zealand Fishing Industry Board (Parl. paper C. 6).

Report of the Rural Banking and Finance Corporation of New Zealand (Parl. paper B. 25).

Chapter 18. 18 Minerals

18.1 Mineral resources

In 1984, coal, ironsand, limestone, clays and building aggregate, sand and gravel were the main minerals mined. Total production of non-metallic (excluding coal) and metallic minerals in 1984 was $257.3 million. Coal production in the same year was $91 million. In 1984, private company expenditure on prospecting for minerals was recorded at $18.6 million, a major increase from the previous year's figure, which was $7.02 million; and Government expenditure on the coal resources survey in the same year was $4 million.

New Zealand has substantial deposits of coal in both the North and South Islands. Since 1975, when the Government-funded survey was begun, reserves of recoverable coal have increased by over fivefold. Reserves now total approximately 6300 million tonnes, of which South Island lignites comprise some 5522 million tonnes.

Expansion in the coal mining industry within the next 15 years will meet increased demands for coal for electricity generation and steel production. A 1000 MW power station has been commissioned at Huntly and it is expected that up to 1.7 million tonnes of coal per year will be required at this station by 1993. Another 500 MW coal-fired power station (North Island Thermal No. 1) is expected to be installed near Maramarua and commissioned in the late 1990s and an oil-fired thermal station (Marsden B) may be converted to coal with a possible consumption of 300 000 tonnes per year from 1995.

Work is continuing on the expansion of the steel industry, which is planned to increase annual demand for sub-bituminous coal from 450 000 tonnes per year in 1985 to 920 000 tonnes per year in 1990.

Coal resources

New Zealand reserves of recoverable coal consist mainly of lignite (88 percent). Sub-bituminous reserves are 9 percent and bituminous reserves less than 3 percent. This is in contrast to current production, which is lignite 10 percent, sub-bituminous 70 percent and bituminous 20 percent.

Table 18.1. RECOVERABLE COAL RESERVES. MARCH 1985

CoalfieldsRecoverable Coal Reserves
MeasuredIndicatedInferredTotal

Source: Ministry of Energy.

                Bituminoustonnes
Buller33,767,50014,913,50019,840,00068,521,000
Murchison-300,0001,400,0001,700,000
Garvey Creek4,251,200962,8561,947,5867,161,642
Reefton859,3042,098,0701,904,6104,861,984
Greymouth915,40819,574,00055,729,00076,218,408
Pike River--15,000,00015,000,000
Collingwood--100,000100,000
                Total39,793,41237,848,42695,921,196173,563,034
              Sub-bituminous
Maramarua2,478,00041,396,00015,00043,889,000
Huntly119,164,00067,400,000106,590186,670,590
Waikare52,020,00018,600,0008,000,00078,620,000
Rotowaro8,852,7233,065,000120,00012,037,723
Glen Massey-100,0002,500,0002,600,000
Whatawhata100,000-1,500,0001,600,000
Mangapehi469,5002,059,500460,2002,989,200
Kawhia/Tihiroa1,058,0004,593,50068,300,00073,951,500
Te Kuiti--6,000,0006,000,000
Mokau60,00073,560,000-73,620,000
Waitewhena1,395,00027,500,00028,180,00057,075,000
Ohura, Tangarakau, Retaruke, Aria-602,5008,600,0009,202,500
Heaphy--1,000,0001,000,000
Charleston--11,985,00011,985,000
Punakaiki172,000185,0002,325,0002,682,000
Inangahua760,506983,0005,795,0007,538,506
Canterbury4,000420,00022,445,00022,869,000
Shag Point--800,000800,000
Kaitangata927,040700,0005,806,0007,433,040
Ohai2,039,0003,771,0001,231,0007,041,000
                Total189,499,769244,935,500175,168,790609,604,059
                    Lignite
Green Island500,0003,800,0002,300,0006,600,000
Kaitangata23,900,00067,000,00032,000,000122,900,000
Pomahaka-8,800,00016,200,00025,000,000
North Otago-1,330,0006,870,0008,200,000
Central Otago780,000853,000,0003,467,499857,247,499
Eastern Southland8,381,9694,476,801,00017,535,0004,502,717,969
                Total33,561,9695,410,731,00078,372,4995,522,665,468
                Grand Total262,855,1505,693,514,926349,462,4856,305,832,561

Note: Table 18.1 incorporates State coal mines estimates as at 31 March 1985, reserves of private coal mines as at 31 December 1984, and exploration results to 31 December 1984.

Recoverable coal. Recoverable coal is the quantity of coal estimated to be able to be actually mined and delivered to the mine head. The figures are based on existing mining technology which may or may not be currently practised in a given mine in New Zealand. Estimating recoverable coal requires consideration of such factors as: geology (faulting, fracturing, seam thickness), geotechnology (coal seam roof and floor conditions, groundwater conditions, slope stability), mining feasibility (mining methods, development costs, mining productivity, mine boundaries, economics) plus safety considerations and environmental constraints. The extent to which these have been evaluated in calculating recoverable coal quantities varies considerably.

As well as a varying knowledge of mining considerations there is also varying geological understanding of coal reserves. This is expressed as “measured”, “indicated” and “inferred” according to the following definitions:

Measured coal—This is coal for which the tonnage is computed from dimensions revealed in outcrops, trenches, workings and drillholes, and for which the ash content is computed from the results of detailed sampling. The sites for inspection, sampling and measurement are so closely spaced and their geological character is so well defined that the size and shape of the coalfield are well established.

Indicated coal—This is coal for which the tonnage and ash content are computed partly from specific measurements, samples or production data, and partly from projection for a reasonable distance on geological evidence. The sites available for inspection, measurement and sampling are too widely spaced or otherwise inappropriately spaced to determine the geology or ash content well enough to classify it as “measured”.

Inferred coal—This is coal for which the tonnage estimates are based largely on a broad knowledge of the geological character of the deposit and for which there are fewer samples or measurements than required to place the deposit in a higher category. The estimates are based on an assumed continuity or repetition for which there is geological evidence. This evidence may include comparison with other deposits in similar type.

New Zealand Coal Resources Survey. This Government exploration programme, managed by the Mines Division of the Ministry of Energy, is exploring all New Zealand's major coalfields to provide information on geology, reserves, possible mining methods and costs, coal properties and uses, as well as environmental considerations. The information is freely available and is used by the coal industry and energy planners. The survey began in 1975 and will continue for some years.

During 1985, exploration took place in the following areas: Kawhia, Te Kuiti, Ohura - Tangarakau, Buller, Greymouth, Kaitangata and Ohai.

A notable success has been the location of a significant sub-bituminous coal resource in the western area of the Kawhia coalfield.

Reporting on the coal resources and geology is continuing for the Waikare coalfield, East Kawhia, Tihiroa, Te Kuiti, Ohura - Tangarakau, Buller (Upper Waimangaroa) and Kaitangata coalfields.

With significant coal resources having been located, emphasis is shifting towards evaluating the potential of mining and providing a basis for energy planning. Preparatory mining investigations, coal use and environmental assessments are being carried out.

Preliminary or interim mining studies have been completed for the Mokau, Maramarua and Kaitangata coalfields, with coal use assessment completed for the Mokau coalfield. The Maramarua assessment is nearly completed. Geological assessments of lesser evaluated coalfields are continuing, for example, for the Ohura - Tangarakau, Ohai, Orepuki coalfields and the Waiau Basin. Detailed coal resource and quality studies are completed for the Millerton, Stockton and Rockies sectors, and are continuing for the Denniston sector of the Buller coalfield.

Preliminary mining studies are also continuing for the Greymouth coalfield.

The Liquid Fuels Trust Board has completed its field studies for its second stage evaluation of the lignite resources. In order to assess the financial viability of converting the lignite to liquid fuel, geological, mining and lignite properties, environmental and social implications and process technologies have all been investigated in detail.

Census of Mining and Quarrying

The economic Censuses of Mining and Quarrying form part of the series of integrated economic censuses of business activities in New Zealand being carried out by the Department of Statistics over a 5-year cycle. The 1983-84 census covered all operations carried out by activity and ancillary activity units in the mining and quarrying industry during the year ended 31 March 1984 (those with different balance dates submitted data for the year ended within the period 1 April 1983 to 31 March 1984).

Ail activities from exploration or production to the point at which the goods are sold are within the scope of the census.

The statistical tables which follow give 1983-84 census total by the 4 industry divisions and by local government regions. The definitions used in these tables are given in the “Glossary”.

Table 18.2. CENSUS OF MINING AND QUARRYING 1983-84

Statistical ItemDivision 21 Coal MiningDivision 22 Petroleum and Gas Production and ExplorationDivision 23 Metal Ore Mining Exploration and ProspectingDivision 29 Other Mining and Quarrying ActivitiesCensus Totals

* Includes capitalised salaries and wages amounting to $5,563,000.

 Number
Activity and ancillary units724662344524
Working proprietors/partners at end of February 198461240153256
Paid employees at end of February 19841,7201,1143731,6854,892
 $(thousand)
Salaries and wages paid to working proprietors/partners311-1302,2172,659
Salaries and wages paid to paid employees*32,92129,7196,76627,31296,718
Stocks: (including work in progress)
    Opening46,26136,5273,94411,63598,367
    Closing60,95237,8873,20112,070114,111
Income:
    Sales of mined or quarried products100,659597,23858,714138,348874,402
    Sales of other products and services10,47731,034
    Direct Government cash grants and subsidies1,315123,76457727659,243
    Other income (excluding interest, etc.)4,57471,264
    Sales and income (excluding interest, etc.)101,974721,00259,291153,6751,035,943
    Interest, dividends, donations, royalties, patent fees and insurance claims received44933,0152,0511,05036,565
                Total sales and other income (including interest, etc.)102,424754,01861,342154,7251,072,508
Expenditure:
    Purchases of fuel and power3,5795,1273,72115,37327,801
    Purchases of all other materials and supplies, including goods for resale8,23389,5332,04021,122120,929
    Salaries and wages to paid employees31,62025,6276,69227,21591,155
    Depreciation4,95833,2593,3799,15650,752
    All other expenses (excluding interest, etc.)75,138366,63433,65059,204534,626
    Operating expenditure (excluding interest, etc.)123,529520,18149,482132,070825,264
    Interest, bad debts, donations, royalties and patent fees24,21226,2412,1466,62059,219
                Total expenditure (including interest, etc.)147,741546,42251,628138,690884,482
Net profit after deducting working proprietors and partners salaries and wages-30,938208,9568,84014,253201,111
Operating surplus-6,864202,1819,06622,040226,423
Value added37,082251,07219,89960,665368,719
Fixed tangible assets:
    Additions to26,20329,8883,58216,50176,173
    Disposals of5185941,0864,0536,252

Table 18.3. CENSUS OF MINING AND QUARRYING 1983-84

Local Government RegionsEnterprise GroupsEnterprisesActivity UnitsAncillary Activity UnitsPersons Engaged End FebruarySalaries & Wages Paid to Employees*Total Sales & IncomeAdditions to Fixed Tangible Assets

* Includes capitalised salaries and wages amounting to $5,563,000.

† As some enterprise groups and enterprises have activity units in more than one local government region totals do not sum.

 No.No.No.No.No.$(000)$(000)$(000)
Northland434356-2353,02220,6691,351
Auckland41505843385,93935,6463,430
Thames Valley14171821692,2379,9361,596
Bay of Plenty888-598014,465255
Waikato38395041,15421,662111,67413,735
Tongariro8882436023,5521,410
East Cape5571395702,355510
Hawke's Bay121313-1061,6858,432 
Taranaki181922198525,749204,3197,972
Wanganui121212-223162,004294
Manawatu81091345842,403632
Horowhenua223-12   
Wellington32444053868,204548,63325,750
Wairarapa101011-507453,844488
    Total North Island225266315203 63272,116957,93057,425
Nelson Bays182020-728454,335290
Marlborough9991671,3978,212844
West Coast525461170611,63037,94710,244
Canterbury1718203901,3305,348280
Aorangi111214-597673,123468
Clutha—Central Otago2222231494833,639302
Coastal—North Otago101010-831,2165,3501,079
Southland212126-3906,93446,6245,242
    Total South Island14815918361 51624,603114,57818,748
    Total New Zealand364421498265 14896,7181,072,50876,173

18.2 Petroleum prospecting and mining

Prospecting and mining for petroleum in New Zealand is governed by the Petroleum Act 1937. This gives the Minister of Energy the authority to grant petroleum prospecting and mining licences over land and marine areas including the New Zealand continental shelf.

As at 31 December 1985 there were 24 petroleum prospecting licences covering 107 287 square kilometres of New Zealand's land area, territorial sea and continental shelf. Eight petroleum mining licences covered 1058.62 square kilometres comprising the offshore Maui field, the Kapuni, McKee - Toe Toe, Pouri, Tuhua - Pukemai, and Kaimiro fields in onshore Taranaki, and 2 small onshore licences in Hawke's Bay and New Plymouth. A feature of 1985 was the official opening on 5 June 1985, of Petrocorp's McKee production facility which handles production from the McKee and Pukemai fields.

A very high level of activity in the search for petroleum continued in New Zealand during 1985. Fifteen onshore wells were drilled utilising 4 rigs, the highest level of onshore drilling activity here in recent history. A disposal well was drilled for the McKee production station, and another drainage point on the Toe Toe accumulation was provided by drilling Toe Toe 3A. Wharehuia-1 drilled in central Taranaki and Manutahi-1 drilled in southern Taranaki were both dry, while Waihapa-1B drilled in central Taranaki encountered minor hydrocarbon indications. Arnold River-1, Taipo Creek-1, Mawhera-1 and Glen Creek-1 all drilled east of Greymouth were all dry, while Niagara-1 drilled in the same vicinity encountered hydrocarbons which have yet to be fully evaluated. Kumara-2A which was drilled south of Greymouth encountered only minor indications of hydrocarbons, as did Matiri-1 drilled in the Murchison area. At the end of the year Cape

Farewell-1 was being drilled at the base of Farewell Spit, Toe Toe 4 was being drilled to provide an additional drainage point on the Toe Toe accumulation in Taranaki, and Rere-1 was being drilled west of Gisborne.

Two offshore rigs were utilised in the drilling of 5 offshore wells in New Zealand waters during 1985. The Diamond M Epoch completed Kea-1 commenced in 1984 and drilled Moki-2A both of which were south of the Maui field, and both dry. This rig also drilled Awakino-1 north of New Plymouth which encountered only minor indications of hydrocarbons. The Zapata Arctic encountered non-commercial quantities of hydrocarbons in Galleon-1 drilled offshore from Canterbury and drilled Solander-1 north-west of Stewart Island which was dry.

18.3 Mineral production

Prospecting regulations

Legislative control of mineral production is contained in the Mining Act 1971 (with Amendment), the Coal Mines Act 1979, the Iron and Steel Act 1959, the Quarries and Tunnels Act 1982, the Atomic Energy Act 1945, and the Continental Shelf Act 1964. The administrative agency is the Mines Division of the Ministry of Energy.

Table 18.4. PRODUCTION OF MINERALS AND METALS FROM MINES AND QUARRIES (YEAR ENDING 31 DECEMBER)

Mineral19831984
QuantityValue*QuantityValue*

* Assessed at pit mouth.

† Tonnes unless otherwise stated.

‡ Unsold.

Source: Ministry of Energy.

 tonnes$    tonnes$    
                        Fuels
State coal1 617 85461,963,8081 721 70666,922,712
Private coal855,67732,772,429804,84131,288,057
                        Metals
Gold (kg)300,6736,466,864671,98613,186,141
Iron ore1564,0212,64553,127
Ironsand (exported)2 486 01041,499,6862 224 17239,299,455
Ironsand (sold locally)214,4092,287,7442 414 46841,391,537
Ironsand (stockpiled)497,1958,319,763216,9912,603,892
Ironsand (mined)2 203 22435,466,536-26 695469,565
Tungsten ore (scheelite)10,904130,85013,367127,247
                    Non-metals
Basalt for industry25611,55437718,841
Bentonite1,95821,6556,418138,294
Clay for bricks, tiles97,944578,455146,840544,412
Clay for pottery, etc.23,9174,198,97625,0983,430,410
Dimension stone22,5851,021,67836,3591,228,876
Dolomite for agriculture11,444443,19411,179450,064
Dolomite for industry5,589210,7596,945275,084
Greenstone0.4353,0203.052
Limestone for agriculture1 495 56811,164,3791 621 3654,997,830
Limestone for roads237,5081,343,9461 523 74613,351,527
Limestone for industry206,5152,679,869214,1952,226,336
Lime and marl for cement1 496 7865,044,367359,3522,081,694
Pumice16,799150,03115,182130,717
Rock for reclamation2 254 0328,139,8102 519 8009,050,963
Salt81,00081,000,00057,0006,600,000
Sand, rock for building4 359 34928,368,9195 029 02732,992,246
Sand, rock for roads and ballast15 488 87567,036,71816 501 43278,672,087
Sand for industry234,4031,635,550387,2091,791,436
Serpentine64,055867,04476,9001,025,014
Silica sand148,3571,155,817133,2351,134,544
Sulphur1,09054,50086247,520

Metallic minerals

Iron. New Zealand's largest resource of potential iron ore is 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 tonnes of titanomagnetite, with a further 8.6 million tonnes of ilmenite in the North Island, and 43 million tonnes in the South Island.

A process has been developed where the titanomagnetite sands can be economically smelted on a large scale to produce a good grade of steel. A steelworks has been constructed at Glenbrook, 58 kilometres south of Auckland, by New Zealand Steel Limited and the plant began production late in 1969 using ironsand deposits from the north head of the Waikato River 19 kilometres away. Production of steel billets from ironsand commenced in November 1969.

New Zealand Steel Limited is expanding its Glenbrook plant to increase its output of steel from the present 120 000 tonnes to 750 000 tonnes by 1988-89. Coal consumption will increase from the present 250 000 tonnes per year to 1.5 million tonnes per year with the expansion. Slag from the steel contains vanadium and titanium. The vanadium will be extracted when the expansion is completed.

Near Waverley, 32 kilometres north of Wanganui, an ironsands mining unit produces titanomagnetite concentrates for direct export to Japan through offshore bulk loading facilities. In 1984, 565 235 tonnes were exported.

New Zealand Steel Limited has developed a similar undertaking at Taharoa near Kawhia and 1 517 567 tonnes were exported in 1984.

These 2 operations exported ore to the value of $39.3 million in 1984.

Gold. Gold occurs in 3 different ways:

Alluvial gold is gold that has been eroded from its original source and carried away by a river. It is found on beaches, in streams, rivers and gravels, mostly in the South Island. Alluvial gold is mined by panning, sluicing, washing through screens or by dredging.

Lode gold occurs in quartz veins.

Disseminated gold is finely dispersed in some volcanic rocks.

Both of the latter hard rock forms of gold can be mined by underground as well as opencast methods. Most present day New Zealand goldmining is of alluvial gold.

International gold prices make re-examination of bypassed areas and the tailings of former workings attractive. Past gold producing areas of New Zealand are currently being reassessed using modern prospecting techniques and refined geological concepts.

The main areas of interest for gold in the North Island are Northland, the Coromandel Peninsula and the central volcanic zone.

in the South Island, the main areas of interest for alluvial gold are Marlborough, north-west Nelson, West Coast, Westland, Central Otago and West Southland. All of the gold recovered from New Zealand in 1984 (671.986 kg) was from small alluvial operations in the South Island.

These small mining operations are rapidly surpassing the gold production levels of the Kanieri Gold Dredging Company. There are at least 100 small land-based or pontoon-mounted washing plants fed by hydraulic diggers working on the West Coast, and more in Otago. This number is increasing as more mining licences are granted. There are also a number of smaller screen and riffle box operations in both areas, fed by front-end loaders. In addition, the black sand mining operations on the West Coast beaches are of considerable interest to small-scale miners.

Tungsten. The principal ore of tungsten in New Zealand is scheelite. Some wolfram is found in Otago and Stewart Island but not in economic quantities.

The scheelite bearing quartz veins are generally small and broken, and the scheelite is erratically distributed in the veins. Access and transport present difficulties and production costs are relatively high.

Scheelite is mined on a small scale at Glenorchy and Macraes Flat in Otago and at Top Valley in Marlborough. In 1984, 13 367 kg were mined at a value of $127,247. These areas and also the West Coast and Southern Alps are currently being evaluated by big companies for large-scale mining potential.

Ilmenite sands. Beaches on the West Coast of the South Island, south of Greymouth, contain reserves of ilmenite containing 45 percent titanium dioxide and often economic grades of gold.

The major use of ilmenite is as a source of titanium dioxide, used as a pigment in paint, paper, plastics, and rubber. A secondary use is as a source titanium, a strategic metal widely used in the aerospace industry.

Areas of the West Coast are currently subject to prospecting and development proposals. The ilmenite is of marginally low grade and any major development of these resources can be expected to be a minimum of 5-10 years away. Earlier work undertaken by the Department of Scientific and Industrial Research (DSIR) has provided the basis for further company evaluation. The ilmenite has some unusual properties however, and the production of titanium pigment or titanium sponge would probably involve specially developed processes which have yet to be tested commercially. Total resources as assessed in 1976 at Barrytown are 12.77 million tonnes.

Copper, lead, zinc. Some areas of Northland, Coromandel, Nelson and Westland have potential for base metals and are currently being prospected. At Te Aroha, the Tui Mine closed in 1973 but is still held under a mining licence. Copper has also been mined at Parakao and Pupuke in Northland.

Silver. In the North Island, silver almost always occurs with gold in various proportions, The Hauraki goldfield has produced most of the silver mined in New Zealand but no major mining is being carried out at present. Silver has been found at Puhipuhi in Northland, north-west Nelson, South Westland and Central Otago, and most of these areas are being prospected at present.

Uranium. Uranium is known to occur in 2 parts of the Buller Gorge, but the reserves have never been fully assessed.

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. No mining is at present being carried out. Past production has been limited, the main bulk came from the sinter deposits in Northland, at Puhipuhi and Ngawau Springs.

Molybdenite. Molybdenite occurrences in north-west Nelson have attracted several mineral exploration companies. However, due to the decline in the price of molybdenum, drilling in these areas has been discontinued. The molybdenum areas are virtually unexplored and further detailed drilling will have to be carried out before their full potential can be assessed.

Other metallic minerals. Iron ore, antimony, arsenic, chromium, monazite, nickel and rutile have been mined in the past and some are presently being investigated. Platinum is found in New Zealand and is a minor byproduct of gold mining in Southland. Tin is known on Stewart Island, where less than 1 tonne has been mined. The aluminium ore, bauxite, is found in Northland where 20 million tonnes have been indicated by the DSIR.

Non-metallic minerals

Aggregates. The term 'aggregates' is used to describe a variety of rocks, gravels and sands. They are found throughout New Zealand and are usually mined by small operators to supply local needs. Hundreds of firms from Kaitaia to Invercargill extract more than 25 million tonnes of aggregates, worth more than $130 million annually. Major uses are for roading, reclamation and construction.

Clays. Clays are found throughout New Zealand and include bentonite, halloysite and kaolin. They are used in the manufacture of bricks, tiles, pipes and pottery, and as fillers in the manufacture of paper, paint, pharmaceutical and animal health products. Nearly 200 000 tonnes of clays, worth about $4 million, are extracted every year in New Zealand.

Bentonite—Bentonite is used as a bonding agent and for 'drilling mud'. It is found in Hawke's Bay and in substantial quantities in Canterbury. The latter is finely ground and processed into pellet form for bulk export and milled for local and overseas markets. Although bentonite is still being imported for drilling operations because long established and reliable overseas sources are often preferred, New Zealand bentonite is now being used as well.

Halloysite—Halloysite has been mined in Northland for more than 30 years. It is used in New Zealand and exported for use as industrial fillers and in the ceramic industry.

Dolomite. Dolomite rock is found near Collingwood. It is used in agriculture and home gardening and shipped to Whangarei for use in glassmaking. About 18 124 tonnes are extracted each year and are worth around $725,000.

Greenstone. The mineral nephrite, 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 previously obtained from the gravels of the Arahura and Taramakau Rivers near Hokitika, and from gold sluicing claims of the Kumara and Marsden districts. At present the main source is 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 the greenstone recovered in this way has been cut and polished in New Zealand for jewellery and small ornaments for the tourist trade.

The best known occurrences of bowenite, the serpentine variety of greenstone, are in Fiordland, but these are not systematically or commercially exploited.

Limestone. Limestone is found throughout New Zealand. More than 50 firms mine about 4 million tonnes, worth about $22 million each year. Limestone is used in cement manufacture, roading, pottery and agriculture. High-quality limestone from Te Kuiti and Nelson is processed for export. It is also used in New Zealand as a filler in paint, glass, rubber, plastic and paper industries. Marble, a pure form of limestone, is mined in Nelson. It is used as a filler and in building construction.

Perlite. Perlite is a volcanic glass which expands when heated. About 1000 tonnes of perlite are recovered each year from Atiamuri, north of Taupo. The perlite is used in Auckland to manufacture insulating boards, potting mix and lightweight concrete.

Pumice. Most New Zealand pumice was formed during volcanic eruptions in the Rotorua-Taupo area during the last 10 000 years. More than 5000 tonnes of pumice, worth around $130,000, are dredged and separated from the river sands at Mercer and Hamilton each year. Pumice is used in Auckland and the Waikato areas to manufacture wallboard, plaster and concrete.

Salt. At Lake Grassmere in Marlborough, salt is produced by the solar evaporation of sea water. Low rainfall, long hours of sunlight and the right wind conditions make this locality the most suitable one in New Zealand for salt production.

Salt was first harvested in 1952. About 57 000 tonnes are produced annually. It is harvested once a year, and used in New Zealand.

Serpentine. Serpentine is a magnesium-rich rock used as a fertiliser additive. Deposits are mined at Piopio near Te Kuiti, North Cape in the North Island and Collins Valley, and Mossburn in the South Island. About 69 000 tonnes, worth about $1,025,000, are mined each year.

Silica sand. Northland, North Auckland, Nelson and Canterbury have deposits of silica sand. About 133 000 tonnes, worth over $1 million, are mined each year. Approximately 59 000 tonnes are dredged off the spit at Parengarenga Harbour, Northland each year. The sand is barged to Auckland for use in container glass manufacture, and to Whangarei for use in window glass manufacture.

At Glorit and Kaukapakapa in North Auckland about 40 000 tonnes of sand are extracted each year for use as foundry sand and as filler in the building industry. There is also a silica sand deposit northwest of Glorit at Tapora. This deposit could be processed to yield a very high quality sand. In the South Island high quality silica sand found in Canterbury and Otago is used in the manufacture of table glassware.

Considerable amounts of lump silica are found near Ida Valley and Kaitangata in Otago and near Pebbly Hills in Southland. These deposits are suitable for use in the ferrosilicon industry. They are not mined at present but are under investigation.

Asbestos. Asbestos was mined at Takaka, Nelson, about 20 years ago, and substantial reserves of high quality (chrysotile) asbestos are known to be in the Pyke River area of Otago. However, further prospecting is required before mining can be considered. Asbestos is used in the building industry.

Diatomite. Diatomite occurs in the Kaimai, Oamaru, Rotorua, Taieri and Whangarei regions, but is not being mined at present. It is used in nearly all industrial filtration.

Phosphate. The only deposit of phosphate ever to have been worked in New Zealand is that in Claredon, Otago. Mining ceased in this area in 1944. Phosphate is known to occur offshore on the Chatham Rise as nodules on the sea floor.

Sulphur. A small amount of low-grade sulphur is currently extracted from Rotokawa, near Taupo, and used as a fertiliser additive. Investigation into the extraction of high-grade sulphur from the same deposit for use in the chemical industry is continuing.

Other non-metallic minerals. The following non-metallic minerals, some of which have been mined in the past, are also found in New Zealand. They are barite (industrial uses include glassmaking and fillers), feldspar (glassmaking, ceramics, enamels), magnesite (used in agriculture), mica (used in electronics), and wollastonite (insecticide, paper and plastics production).

Coal production and consumption

Coal occurrences in New Zealand are widespread. The major areas of coal formation have been divided into 7 coal regions (Northland, Waikato, Taranaki, Nelson-Westland, Canterbury, Otago and Southland). The important coal producing regions are Waikato, Westland and Southland.

The more important producing coalfields with the class of coal found in each are:

Bituminous coal—-Greymouth, Buller, Garvey Creek.

Sub-bituminous—Maramarua, Huntly, Rotowaro, Ohai.

Lignite—Eastern Southland.

Other coalfields which will become major producers are Waikare, (sub-bituminous), Mokau (sub-bituminous) and potentially, Central Otago coalfields (lignite) and Kaitangata coalfield (lignite).

New Zealand coals are young by world standards (15-75 million years) and the geological conditions that allowed coal formation continue to the present day (for example, peats in the Waikato). Coals of this age and bituminous rank, as occur in Westland, are not common and are only found in countries such as Japan and New Zealand which have an active geological environment.

The young age of New Zealand's coking grade coals has given rise to some valuable properties which, together with low to exceptionally low ash contents, makes them attractive to world markets. The active geological history during the time of coal formation and since has, however, resulted in difficult mining conditions.

Coal consumption. Coal has always been important to New Zealand's mineral industry. It had a higher production value than any other mineral between the First and Second World Wars. Usage slumped in the late 1960s but with the increased price of oil, and prospects of oil shortages, coal consumption prospects have risen, especially as industries have in some cases reconverted their heating and steam plants for coal firing. Coal from the Buller coalfield is exported to Japan and Korea. The recession in the international market has slowed plans to increase exports; however, 500 000 tonnes per year is still an immediate objective.

Table 18.5. PRIVATE AND STATE COAL MINING OPERATIONS

YearAnnual OutputsPersons Ordinarily Employed
UndergroundOpencastTotalSurfaceUndergroundOpencastTotal

Source: Ministry of Energy.

 tonnes (000)Number
19806751,4882,1634966594981,653
19817201,4762,1974566594651,580
19828021,4422,2444547074981,659
19838581,6142,4725047855051,794
19848431,6832,5266267335571,916

In 1984, the State operated 10 of the 32 underground mines. These produced 611 337 tonnes of coal. Nine of the 38 opencast mines were operated by the State and they produced 1 002 965 tonnes of coal.

Low temperature carbonisation works at Rotowaro (100 km south of Auckand) use the Lurgi process to include a range of products derived from coal taken from local State coal mines. During the year ended 31 March 1984, the works produced 4062 tonnes of carbonettes, 748 tonnes of Raycarbo, 1485 tonnes of char and 220 723 litres of creosote.

Table 18.6. PRODUCTION OF PRIVATE COAL MINES

YearOutput

Source: Ministry of Energy.

 tonnes(000)
1980856
1981851
1982853
1983866
1984878

Table 18.7. DISTRIBUTION OF STATE COAL SALES

UseYear Ended September
1981198219831984*1985

* March year, therefore 6 months only.

† Year ended 31 March.

Source: Ministry of Energy.

 tonnes (000)
Gasworks4511839
Electric power167210397163456
Dairy factories9597935568
Freezing works6974824185
Cement and lime works22523819787166
Brick, tiles and pottery54213
Paper mills4657683778
Steel production12113012374111
Hospitals1101111204299
Carbonising18181620513
Central heating5262581457
Domestic15013613833119
Export162272226146353
Other6865592654
               Total1 3331 4851 5879271 671

Further information

Annual Returns of Production from Quarries and Mineral Production Statistics—Mines Division, Ministry of Energy.

Census of Mining and Quarrying 1983-84—Department of Statistics.

The Geology of New Zealand—New Zealand Geological Survey.

Industrial Minerals and Rocks—Department of Scientific and Industrial Research.

Introduction to the Geology of the Coalfields of New Zealand—New Zealand Geological Survey.

Monthly Abstract of Statistics—Department of Statistics.

New Zealand Coal Reserves—Mines Division, Ministry of Energy.

Report of the Department of Scientific and Industrial Research(Parl. paper G. 21).

Report of the Ministry of Energy—(Parl. paper D. 6).

Details of N.Z. Geological Survey map coverage and publications are available from N.Z. Geological Survey, P.O. Box 30368, Lower Hutt.

Chapter 19. 19 Manufacturing

09.1 Industrial development

During the last 30 years there has been a continued diversification in New Zealand's industrial development, which has incorporated a number of major developments.

In recent years there has been a move away from import licensing towards the customs tariff as the main form of industry protection. This will lead to a more open and competitive environment for New Zealand manufacturers. It is envisaged that outside of industry plans import licensing controls will have substantially disappeared by 1988. Tariffs are being lowered and made more uniform.

Industries which are covered by industry plans are subject to their own separate timetables which in most cases contain specific dates by which import licensing will be removed and also contain procedures for the review of tariffs.

Forestry industrial developments. Since the war 9 pulp and paper and board mills have been established. Details about these industries are given in chapter 16, Forest industries.

Steel industry. In 1959 the Government set up the New Zealand Steel Investigating Company to determine the viability of establishing an iron and steel industry using indigenous raw materials—titanomagnetite ironsands, sub-bituminous coal, and limestone. New Zealand Steel Ltd, the company formed in 1966 as the successor to the New Zealand Steel Investigating Company, commissioned a direct reduction kiln and electric ore steel-making facilities at Glenbrook, 60 km from Auckland, in 1970. A period of growth and consolidation followed in the 1970s. New Zealand Steel Ltd manufactures about 150 000 tonnes of billet steel a year. The company also imports about 250 000 tonnes of coil steel a year for fur her processing into galvanised sheet, flat and pipe products.

A large expansion project New Zealand Steel has underway at Glenbrook will result in a fully integrated industry producing all the finished products from indigenous raw materials. The first part of the two-stage programme involves increasing iron and steel-making facilities to produce about 750 000 tonnes of slab and billet steel a year. Stage II provides for hot and cold rolling mills and associated facilities to process about 550 000 tonnes of continuously cast slab into a variety of finished fiat products.

A financial restructuring of the company and the expansion project was agreed between the Government and New Zealand Steel in December 1985. Consequently, the Crown will own approximately 80 percent of the shares in New Zealand Steel in return for assuming responsibility for servicing most of the debt incurred on the expansion project.

Pacific Steel Ltd was established in 1960 by New Zealand and British interests. Production of wire rod, reinforcing and flat bar and angles and channels commenced in 1962. The company utilises scrap metal collected through Pacific Scrap Ltd, and in addition purchases steel billets from New Zealand Steel Ltd.

Aluminium. New Zealand Aluminium Smelters Ltd, owned by Comalco Industries Pty Ltd, of Australia, and Showa Aluminium KK and Sumitomo Aluminium Smelting Company Ltd, of Japan, established a primary aluminium smelter at Tiwai Point, near Bluff, early in 1971. The first furnace was commissioned in April 1971. The smelter has grown from an initial capacity of 74 000 tonnes (1 potline) to 244 000 (3 potlines). The aluminium metal produced by the smelter satisfies most of the New Zealand market, but the majority is exported to Japan and other Asian countries.

The participants provide their own alumina and take and sell their shares of output in proportion to their ownership.

Oil refinery. The Marsden Point oil refinery commenced production in 1964. The refinery company was established by the 5 major oil companies, with government and private sector equity participation. Due to the demand for refined products, which exceeded production capacity, the refinery is now being expanded. A hydrocracker is being installed to allow more middle-distillate oils (diesel and kerosene, aviation fuels and lubrication oils and solvents) to be extracted, thus reducing imports of both oil and refined products.

Maui gas developments: ammonia-urea plant. Gas from the Maui field, which was discovered in 1969, has been allocated to a number of projects. These projects include a synthetic petrol plant which will provide one-third of New Zealand's estimated petrol requirements after 1985, a methanol plant, and an ammonia-urea plant. The methanol and ammonia-urea plants are now in full operation, while the synthetic gasoline plant will reach full production in early 1986.

Engineering. The engineering industry sector in New Zealand has a history stretching back to the early days of the colony. From simple beginnings it now plays a vital role in the growth of our industry. The industry has developed a capacity in both the heavy and light engineering sectors.

New Zealand's heavy engineering industry has been concerned with fabrication, installation, maintenance, and resource development in areas such as the development of primary processing facilities, and fertiliser plants. It has also been involved with major civil engineering projects such as hydro-electric dams (radial gates, draft tubes, scroll cases), oil refining (heat exchangers, pressure vessels), and forestry developments.

The light engineering industry has developed on the basis of import substitution policies and the postwar road and house-building programmes. Its role has been to provide materials for light industry, e.g., supplying the house-building and motor-vehicle componentry trades. It has also supplied the agricultural, horticultural and animal husbandry sectors with implements and products.

In the immediate post-war era, isolation led to the development of ingenious solutions to repair and maintenance problems. The industry grew through the 1950s and 1960s, as import substitution policies resulting from balance of payment constraints were developed in depth. In the 1955-65 period the engineering industry's capacity to utilise equipment to produce short production runs emerged. Since 1965 the drive for exports has resulted in increasing specialisation of equipment, though the heavy engineering industry did not show the growth expected in the early 1970s. From 1975 to the present day the effect of the oil shock and inflation has speeded the introduction of numerically-controlled machines.

Although most of the fabrication, installation and maintenance industry uses imported raw materials, local casting and machining, and the rod and wire-making industries use local raw materials. Planned major projects will provide work for the whole of the engineering sector in the next decade.

Motor vehicle industry. Motorcar assembly in New Zealand is undertaken by 9 companies in 13 plants. In 1984, of the new cars sold in New Zealand 92 percent were New Zealand assembled. Of these, 82 percent were of Japanese origin, 14 percent Australian, and 3 percent British.

Motor vehicle component manufacture in New Zealand started in 1939 when certain parts, specifically upholstery and batteries, were excluded from importation for use on New Zealand assembled vehicles. The industry expanded in the 1950s with the introduction of special incentives to encourage assemblers to use New Zealand products. Since then assembly companies have been required to use a growing range of parts made in New Zealand.

Electronics manufacture. The New Zealand electronics industry has 3 sectors: consumer electronics; industrial electronics including telecommunications; and electrical components.

The largest sector is consumer electronics, which accounts for about two-thirds of output and employment. It primarily produces television sets along with some audio and radio products, games and kitsets.

The industrial electronics sector is, however, becoming increasingly important. It is undergoing a rapid expansion and now produces nearly 80 percent of the industry's exports. Its products are used in agriculture, industry, medicine, and science.

The main electronic components produced in New Zealand are printed circuit boards, loudspeakers, antennas, transformers, and coils.

Plastics industry. The New Zealand plastics industry has developed almost completely since the Second World War, and mainly since the mid-1950s.

In 1982, after a study by the Industries Development Commission, the New Zealand Plastics Industry Development Plan to 1990 was implemented by the Government. The aims were to encourage the plastics industry to use its resources as efficiently as possible and to lower the level of protection under which the industry was operating. It was intended that the pressures toward greater international cost comparability would give the local industry a sounder and more sustainable base for export-led growth, and a greater capacity to service its domestic market without high assistance levels.

Since the commencement of the plan, the available evidence suggests that the sector is adapting well to greater outside competition. Average growth in the value of production over the past 3 years has been 27 percent, and exports have grown sharply. For the latest year available, June 1985, production of plastic products amounted to $828 million with direct exports totalling $101 million, 53 percent of which went to Australia. These figures show a substantial increase on 1980 production levels of $270 million and $35 million exports.

Textile industry. On 1 July 1980 the Textile Industry Plan was implemented. The plan featured a liberalisation of access to materials, and increased imports of finished goods under the protection of a revised tariff structure, with the object of improving competitiveness and developing textile industry exports. Production efficiency in the woollen milling sector improved significantly with the financial assistance provided under the industry plan.

The apparel import licence tendering scheme has provided access to a greater range of imported garments. This has created a more competitive environment for domestic manufacturers greater consumer choice and a mechanism for testing the level of customs tariffs set in accordance with the Textile Industry Development Plan.

As part of its review of the Textile Industry Development Plan the Industries Development Commission in 1983 reported on the carpet sector, proposing measures for the controlled introduction into the New Zealand market of both imported and locally made synthetic carpets. These proposed changes to New Zealand's long standing wool rich carpet policy were approved by the Government for full implementation in 1985.

Government decisions on the commission's recommendations for other textile industry sectors were announced in July 1985. These included liberalisation of access for textile goods through the establishment of a textile licence tendering scheme, and small annual increments in allocations under the apparel licence tendering scheme until such time as the question of trans Tasman access for apparel under ANZCERTA has been resolved. In addition, many textile products not made in New Zealand were exempted from import licensing control.

The footwear sector of the textiles industry is also long-established in New Zealand. There are over 100 units producing around 8.5 million pairs of shoes each year and supplying 80 percent of the market's total footwear requirements.

While the industry was originally based on leathers produced by the local tanning industry it now produces almost as many synthetic as leather shoes.

The industry enjoys significant levels of tariff and licensing protection. These are being reviewed at present and it is likely, in accordance with Government policy on industry assistance generally, that the present level of liberalisation of access will be increased.

Sugar industry. A number of far reaching changes affecting the sugar industry were announced in November 1985.

In the past New Zealand Sugar Co. Ltd, which owns the sugar refinery in Auckland, has imported sugar under long term agreements negotiated by the Government. The company received protection against imports of refined sugar and its output was subject to strict price control.

In the future the company will be responsible for negotiating its supplies of raw sugar. Also from 1 September 1986 the embargo on imports of refined sugar and related products will be replaced by 2 years of licence on demand with no quantitative controls thereafter, and the tariff on imports of refined sugar will be set at zero. Sugar will also be removed from price control.

Natural gas based developments. Construction was completed on the synthetic petrol plant in mid-1985, while the first fuel was produced in late October. Commercial production will be achieved in early 1986. Proposals for the sale of durene, a by-product of the synthetic fuel process, are still being considered. The Oil and Gas Division of the Ministry of Energy sought bids for a further major allocation of Maui Gas during 1985. A decision on that allocation has not been made yet.

Coal. Export contracts for about 315 000 tonnes of steaming and coking coal were secured in the 1985 year, with exports going entirely to Korea and Japan. Coal prices, in line with world market conditions, remain stable at a low level.

Lignite. The Liquid Fuels Trust Board is continuing investigation into the suitability of lignite deposits in the South Island for future development to produce transport fuels and/or petrochemicals.

Overseas investment. The Government publicly stresses its welcoming attitude to overseas investment, in particular where such investment is allied to the introduction of new technology and increased net foreign exchange earnings. The full development of New Zealand's resources will require both technology and capital from overseas during the 1980s. Cases will continue to be assessed on their individual merits by the Overseas Investment Commission, under a liberal investment policy which makes provision for up to 100 percent foreign ownership of New Zealand enterprises.

Resource conservation. The Department of Trade and Industry supports existing recycling industries and encourages the establishment of new ventures which can use economically materials which otherwise would be waste. The New Zealand Industrial Waste Recycling Register indexes usable industrial and commercial wastes and provides a free exchange service to firms and organisations throughout the country.

An increasing number of territorial local authorities are promoting the setting up of at-source separation systems for post-consumer waste. Some are managing the recycling activities in their region, and others are encouraging commercial contractors or voluntary groups to carry out resource recovery locally.

The meetings of the Local Authority and Industry Recycling Group, convened by the Department of Trade and Industry, bring together local authority and recycling industry representatives to discuss extension of resource recovery systems throughout New Zealand, and to share experience with those starting new recycling schemes. The meetings are held in different centres to facilitate regional participation. Sixteen meetings have been held since this series was initiated in April 1978.

Since 1979, a Resource Recovery Grants Scheme has been administered by the Department of Trade and Industry to assist new or expanded recycling ventures. Many grants have gone to local authorities and community groups, but small recycling collection firms have also received help. The materials collected are expected to be used in New Zealand; exported waste materials are not eligible. Usually the grants reimburse some of the expenses incurred by publicity needed to support a recycling scheme, or for other special expenses.

By the end of 1985-86, 95 grants had been made since the grants scheme's inception, with a total expenditure of $187,408.

Recovery of ferrous and non-ferrous metals, paper, reusable glass bottles, glass, oil, and solvents continued. Plastics recycling is extending, as products made from regranulated plastics become accepted on the market. Tyre rubber is being recycled, mostly from North Island collection of waste tyres, into a variety of items used in commercial fishing, and other industries including farming. The items for commercial fishing are also exported to the United States.

New Zealand has an excellent recycling record for the standard proprietary ABC (Associated Bottlers Co. Ltd) beer bottles, and other glass bottles which are designed for reuse. Some 93 percent of ABC's bottles hired to breweries, are returned by consumers for reuse.

The Resource Conservation series of published research studies and handbooks totalled 19 titles at the end of 1985.

Regional development

The regional development programme offers a number of assistance measures designed to reduce disparities between regions by encouraging the development of their resources, particularly through manufacturing and advanced processing.

The 11 designated priority regions to which project-based financial assistance is currently available are Northland, King Country, East Coast, Taranaki, Wanganui, Wairarapa, Marlborough, West Coast, Aorangi, Otago, and Southland. Government-appointed regional development councils in each of the priority regions assist in the consideration of applications under the programme. Four “non-priority” councils appointed for Nelson Bays, Canterbury, Hawke's Bay and Horowhenua have a general brief to promote the development of their region. They do not have access to the assistance measures.

Over a period of 18 months the regional development programme has been subject to a major review. The extent of the changes the programme will undergo in response to today's needs remains to be determined by Cabinet. The financial assistance currently available includes:

  1. preliminary investigation grants—available to new activities in agriculture, horticulture, forestry, fishing, mining, tourism, manufacturing, and advanced processing;

  2. regional development and small enterprise suspensory loans (which convert to grants on the fulfilment of conditions) and concessional loans (conceding a period of up to 5 years before interest and principal repayments begin). These loans are available to manufacturing or processing ventures for expansion or new ventures, the development of resource-based activities, and projects in horticulture and tourism which are new to a priority region; and

  3. regional studies assistance grants—to identify the development potential of a region's resources.

Other measures include the Unit Rate Scheme, a concession on South Island freight traffic to the North Island.

19.2 Assistance to industry

The Department of Trade and Industry compiles and distributes annually the publication Government Incentives and Assistance to Industry which lists the services available from government departments and government-funded organisations. Described very briefly below are some of the sources of assistance available to manufacturing industries.

Development Finance Corporation. A description of the Development Finance Corporation, which was established as an independent body in 1964, is included in chapter 26, Finance, banking and insurance. The Development Finance Corporation administers the government-funded Applied Technology Programme which provides specialised assistance for the development and commercialisation of innovative products and processes in New Zealand and overseas.

Small Business Agency. The Small Business Agency was established as a division of the Development Finance Corporation in 1978. The agency is government-funded and its role is to provide advisory and referral services to small and medium-sized businesses, and to encourage and promote a healthy small business sector. The agency also operates for the government the Loan Guarantee Scheme which assists eligible small businesses in obtaining finance.

Otago Business Development Centre. The government-assisted Otago Business Development Centre provides a management consultancy service for businesses in the South Island.

Industries Development Commission. The Industries Development Commission has the role of advising the government on measures to assist industrial development (see chapter 24, Overseas, trade).

Investment Unit. An Investment Unit is established within the Department of Trade and Industry to attract overseas investment. The functions of the unit are to:

  1. undertake activities to identify potential overseas investors and alert them to the advantages New Zealand offers as an investment location;

  2. act as a contact point in New Zealand for overseas investors, providing guidance on the consents required and the best way to prepare proposals and introductions to potential New Zealand partners;

  3. prepare and distribute explanations and publicity material;

  4. co-ordinate with government departments in the promotion of investment opportunities arising from government-funded research;

  5. advise the Department of Labour on the business elements of applications under the Entrepreneur Immigration Policy; and

  6. develop proposals for streamlining consent procedures.

Pacific Islands Industrial Development Scheme. The Pacific Islands Industrial Development Scheme (PIIDS), introduced on 30 November 1976, provides financial assistance and incentives for New Zealand companies developing approved manufacturing or processing operations in Cook Islands, Fiji, Kiribati, Nauru, Niue, Papua New Guinea, Solomon Islands, Tonga, Tuvalu, Western Samoa and Vanuatu. In 1985 the scheme was broadened to include agricultural activities which do not involve processing or manufacturing before sale but which are new to a particular Island country.

The objective is to foster economic development opportunities and further the growth of employment in the Island countries.

Electronics Industry Research and Development Grants Scheme. The scheme, administered by the Department of Trade and Industry is designed to encourage the electronics industry to undertake increased research and development. Grants are available to cover the salaries and wages paid to additional appropriately qualified personnel employed by eligible applicants on a properly supervised and administered programme of electronic industrial research and development.

Government Prototype Development Fund. The fund aims to increase co-operation between industry and government departments, or any other agency whose purchasing rules are controlled by the Government Stores Board, by providing New Zealand industry with a greater opportunity to develop and supply the technology-related purchasing needs of those government and quasi-government agencies. The scheme is administered by the Department of Trade and Industry and assistance is provided by way of grants. In the development projects involved, the public sector agencies will act as the sponsors of their commercial partner and will also contribute technical, supervisory and financial resources as is appropriate.

In its final year of operation the fund has attracted interest from a diverse range of industry sectors including medical/electronic engineering, telecommunications, metal machinery, agricultural engineering, radio communications, machine data monitoring and software. Grants of nearly $1.5 million have been approved from a total 3-year budget of $6 million. Applications amounting to a further $1 million are under action.

Major Projects Advisory Group. The group was set up in accordance with the government's policy of maximising the involvement of New Zealand goods, services and labour in the major development projects. The group advises the government of the scope for the use of New Zealand resources in major projects, on the effectiveness of its measures for maximising New Zealand content in the major projects, on the impact of major projects on New Zealand suppliers of goods and services; and communicates information on major projects to the private sector.

Industrial Design Council. The New Zealand Industrial Design Council was established under the Industrial Design Act 1966 to promote the development of industrial design with the object of improving the quality, efficiency, packaging, and appearance of goods produced in New Zealand. It works closely with relevant government departments, statutory bodies, and professional design organisations, and maintains regular contact with the manufacturers' and retailers' federations and other organisations interested in industrial design.

The council operates 3 award programmes:

  1. Designmark—the applicant must have achieved a satisfactory level of design management expertise and quality assurance and control, and its product must have a statisfactory New Zealand manufacturing content, not be a copy, and comply with relevant standards and regulations.

  2. New Zealand Design Award—the applicant must have contributed a high New Zealand design and manufacturing content to its product which must have been awarded a Designmark, show innovation, and demonstrate excellence in design.

  3. Prince Philip Design Award for New Zealand Industrial Design—some 40-50 recipients of a Council Award are invited, each year, to enter a specific product for assessment. Judgment is by a specialist panel and on the basis of strict criteria set by Prince Philip who confirms the panel's decision before the winner is announced.

A Register of New Zealand Design expertise is published and many referals are made during company and product assessments.

A corporate membership scheme was established in 1985 giving industry opportunity to invest in the council's work while gaining free assessments and other benefits.

Standards Council. The Standards Act 1965 established the Standards Council as the governing body of the Standards Association of New Zealand (SANZ). Its aims are to improve efficiency and stimulate development in industry and commerce by providing standards documents, which will also assist in promoting public and industrial welfare, health, and safety. The association administers the certification mark scheme, which encourages improved quality control in industry with consequent improvement in the quality of consumer goods.

It also provides a service known as Technical Help to Exporters (THE) which provides assistance to manufacturers whose products need to comply with the standards and regulations of overseas markets.

The council regards international standardisation as an important factor in facilitating international trade. The association is the New Zealand member of the International Organisation for Standardisation (ISO), the International Electrotechnical Commission (IEC), and the Pacific Area Standards Congress (PASC). For the 1983-85 term the Standards Association of New Zealand has been elected to serve as a council member of the International Organisation for Standardisation.

The SANZ library holds over 170,000 overseas or international standards. Copies of all standards, from whatever source, can be obtained from the association's sales service.

The association publishes new and revised New Zealand Standards and amendments. Details of these and of other national and international standards activities are given in a monthly publication, Standards. A catalogue, published annually, lists all the standards in use in New Zealand.

The association depends on the subscriptions of members and on sales of standards for a large proportion of its income. Sales of standards exceed $920,000 annually and the subscribing membership of the association, which includes most of the more prominent manufacturers and local authorities, totalled 1900 at December 1985.

Other bodies. 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 New Zealand Metal Casting Industry Association (previously the Foundry Industry Advisory Committee), and the National Electronics Development Association (NEDA). Several bodies exist principally to promote exports: ENEX (previously 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, and the New Zealand Export/Import Corporation is responsible for co-ordinating and expanding overseas trading opportunities. (For more information on trade organisations, see chapter 24, Overseas trade. There are also several bodies providing technical and advisory services for industry. Further details of these organisations are to be found under chapter 13, Planning, and science).

19.3 Business censuses

The Department of Statistics introduced a series of 5-yearly economic censuses of New Zealand business in 1978. A large part of business activity has been surveyed since then, with the businesses being grouped according to the New Zealand Standard Industrial Classification (NZSIC), which is itself consistent with international definitions.

The results of the completed censuses contained in the second 5-yearly series are shown in the 1982-83 to 1984-85 table of “General Summaries”.

Following extensive consultation with users of business statistics, significant developments are planned from 1986 onwards. Care is being taken to maintain comparability with previous series.

The developments are:

  1. The replacement of the 5-yearly cycle of economic censuses by an Economy Wide Census once every 5 years, the first to be in 1987.

  2. The introduction of an annual sample Enterprise Survey in 1986 of the non-agricultural sector of the economy.

  3. The introduction of an annual update of the department's Business Directory in February 1986.

The economy wide census. The move to an economy wide census is in response to a perceived need for a 'snapshot' of the economy where all New Zealand industries can be analysed simultaneously on constant data and their inter-relationships examined. This will also allow the many large businesses involved in numerous different industries to balance the data back to their books of account and the overall result should allow a marked improvement in the quality of data used in the National Accounts, Price Indexes, Inter-Industry tables and several major econometric models of the economy.

The enterprise survey. The annual Enterprise Survey is in response to frequent requests for an annual series of the most important financial data items such as profitability and value added for major industries in the economy. As a sample survey the results will be available much earlier than the existing pattern of census data. The availability of data by 53 industry groups will allow the National Accounts to be published in far more detail than the present 20 private sector production groups.

The Annual Business Directory update. The Annual Business Directory update is being introduced because many users of statistical data require detailed small-area, non-financial data about businesses in New Zealand covering such matters as their location, size, activity, degree of overseas ownership.

This information which has formerly been provided by using data collected as part of the 5 yearly rolling cycle of Economic Censuses will, from 1986 onwards, be provided from the department's Business Directory which will be updated annually. This will leave the Economy Wide Census and the Enterprise Survey free to concentrate on financial data. Since these surveys obtain their registers from the Business Directory, linking of the 2 sets of data will continue to be possible if required.

Definitions of terms used in the presentation of business census data are included in the Glossary. Please note that these may vary according to the year in question.

Further details, including results of all censuses at subgroup (industry) level of the NZSIC, are available in the Business Censuses series of publications.

Table 19.1. BUSINESS CENSUSES 1982-83 TO 1984-85: GENERAL SUMMARIES INDUSTRIAL GROUPS

 Census YearEnterprise CroupsEnterprisesActivity UnitsPersons Engaged

* Figures represent early estimates as censuses not yet completed.

Major Division 1: Agriculture, Hunting, Forestry and Fishing—Number
        Division 11: Agriculture—
              Major Group 112: Agricultural Contracting Services1984-852,0722,1032,26911,563
        Division 12: Forestry and Logging—
              Major Group 121: Forestry1983-844234496266,085
              Major Group 122: Logging1983-843913944403,145
        Division 13: Fishing1983-841,5141,5211,5474,061
Major Division 2: Mining and Quarrying1983-843644215245,148
Major Division 3: Manufacturing1983-8411,71912,76015,716305,841
Major Division 4: Electricity, Gas and Water—
        Group 4102: Gas1982-831819351,038
 1983-841718371,053
 1984-851618311,033
Major Division 5: Building and Construction1984-85....15 750*10 806*
Major Division 6: Wholesale and Retail Trade; Restaurants and Hotels—
        Division 61: Wholesale Trade1982-834,2525,0938,63081,817
        Division 62: Retail Trade1982-8324,89025,55930,188152,085
        Division 63: Restaurants and Hotels1982-837,8347,9108,62961,860
Major Division 7: Transport, Storage and Communication—
        Division 71: Transport and Storage1984-85....9 200*66 000*
        Division 72: Communication1984-85....1 050*37,000
Major Division 8: Finance, Insurance, Real Estate and Business Services—
        Division 81: Finance1982-839911,4613,06335,592
        Division 82: Insurance1982-832,3792,5003,19910,618
Major Division 9: Community, Social and Personal Services—
        Division 95: Personal and Household Services1982-837,6207,6688,23131,562

Table 19.2. BUSINESS CENSUSES: 1982-83 TO 1984-85: GENERAL SUMMARIES INCOME AND EXPENDITURE

 Census YearTotal ExpenditureTotal Income (adjusted for stocks)Net Profit (before tax)Value Added

* Includes increase in funds during year of $(OOO) 1,145,182: End of year value of funds $(million)8,682.

 $(thousand)
Major Division 1: Agriculture, Hunting, Forestry and Fishing—
        Division 12: Forestry and Logging-
              Major Group 121: Forestry1983-84298,095208,058-90,037255,058
              Major Group 122; Logging1983-84239,678255,00015,32270,611
        Division 13: Fishing1983-84280,177306,58626,409140,621
Major Division 2: Mining and Quarrying1983-84884,4821,038,252203,770368,719
Major Division 3: Manufacturing1983-8421,902,09723,3244311,422,3347,104,076
Major Division 4: Electricity, Gas and Water—
        Group 4102: Gas1982-8387,34996,1538,80432,100
 1983-8496,441105,6529,21133,561
 1984-85114,532126,95212,42139,851
Major Division 6: Wholesale and Retail Trade; Restaurants and Hotels—
        Division 61: Wholesale Trade1982-8322,854,100x23,819,411x870,7292,443,214
        Division 62: Retail Trade1982-8313,546,06714,310,304417,9311,927,766
        Division 63: Restaurants and Hotels1982-831,801,6791,936,14473,353627,686
Major Division 8: Finance, Insurance, Real Estate and Business Services—
        Division 81: Finance1982-833,454,9074,099,471669,8501,256,176
        Division 82: Insurance1982-831,877,8693,060,2011,225,653* 
Major Division 9: Community, Social and Personal Services—
        Division 95: Personal and Household Services1982-83811,397965,71174,311388,194

Census of Manufacturing. The first integrated economic Census of Manufacturing applied to the 1974-75 year. The census covers activity units (factories, workshops, etc.) in New Zealand, the predominant activity of which is manufacturing, processing, assembly, or repair, plus the activities of ancillary units (head offices, etc.) which service or predominantly service those activity units. Single activity unit firms having an average of less than 2 persons engaged full time are, however, not included in the census.

All activities of the manufacturing operations, from the purchase of material and supplies to the point at which the products are sold, are within the scope of the census, which is for the year ended 31 March, or the last accounting year prior to 31 March.

The integrated economic census classifies all the manufacturing industries according to the revised New Zealand Standard Industrial Classification (NZSIC), which is based on the 1968 United Nations International Standard Industrial Classification of All Economic Activities.

Because of the major changes introduced there was an unavoidable break in the continuity of manufacturing statistics. To provide some link with the previous census series, a limited number of main aggregates were collected for the 1973-74 year on the same basis as those collected for 1974-75. This link information has been published in a series of industry bulletins.

In the statistical tables which follow, the results of the 1983-84 manufacturing census are published at grand total, industry total and local government region. The 1983-84 census includes for the first time:

  1. “Small Enterprises”—manufacturing enterprises with less than 2 persons engaged.

  2. “Ancillary Enterprises”—enterprises whose predominant activity was supplying ancillary services to other manufacturing enterprises within the same group of enterprises.

Definitions for terms used are given in the “Glossary”.

A general statistical summary of the results of the 1983-84 integrated economic Census of Manufacturing showing the grand totals, totals for “small” and “ancillary” enterprises, and the equivalent 1981-82 coverage (balance), is given in Table 19.3.

Table 19.3. CENSUS OF MANUFACTURING

Statistical Item1983-84 Census Totals
Grand Total ComprisesGrand Total 1983-84
New Enterprises 1983-84Balance
“Smell”“Ancillary”

* Includes “capitalised” salaries and wages amounting to $24,811,000.

 Number
Activity and ancillary units15,7162,87618712,653
Working proprietors/partners at 28/2/84 (28/2/82)16,5133,1245713,332
Paid employees at 28/2/84 (28/2/82)289,3281,3444,581283,403
 $(thousand)
Salaries paid to working proprietors/partners228,41115,2031,205212,003
Salaries and wages paid to paid employees*4,415,01411,903109,7114,293,400
Stocks, including work-in-progress: opening3,544,00816,08233,9473,493,979
      closing3,562,26916,33635,0783,510,855
Income
    Sales of goods produced and services provided, including goods purchased for resale22,402,730157,2787,29522,238,157
    Direct Government cash grants and subs dies80,8322131,42179,198
    Other income (excluding interest, etc.)474,0361,665380,00792,364
    Sales and income (excluding interest, etc. and extraordinary items)22,957,598159,155388,72322,409,720
    Interest, dividends, donations, royalties, patent fees and insurance claims received; bad debts recovered348,5731,036221,526126,011
Total sales and other income (including interest, etc.)23,306,170160,192610,24922,535,729
Expenditure
    Purchases of all materials, components, supplies, fuels, etc.; payments for all services; and purchases of goods for resale without further processing12,487,72276,2327,88112,403,609
    Salaries and wages paid to paid employees4,390,20311,902109,5944,268,707
    Employer contributions158,9544965,287153,171
    Depreciation557,1195,40914,016537,694
    Indirect taxes53,4116532,08750,671
    Other operating expenses (excluding interest, etc.)3,328,03929,200156,4493,142,390
    Purchases and expenses (excluding interest, etc. and extraordinary items)20,975,449123,892295,31420,556,243
    Interest, bad debts, donations, royalties and patent fees paid926,6484,002237,753684,893
Total purchases and operating expenses (including interest, etc.)21,902,097127,894533,06621,241,137
Net profit after deducting working proprietors/partners salaries1,193,92317,34877,1081,099,467
Operating surplus2,000,40935,51794,5401,870,352
Value added7,104,07653,766224,2196,826,091
Fixed tangible assets
    Additions during the year2,506,75812,27358,3352,436,150
    Disposals during the year228,7745,31716,203207,254
    Book value at the end of the year9,105,95748,493380,0148,677,450

Table 19.4. CENSUS OF MANUFACTURING 1983-84 INDUSTRIAL GROUPS

IndustryEnterprise GroupsEnterprisesActivity UnitsAncillary Activity UnitsPersons Engaged End February
 Number
Export meat works and abattoirs182144932,168
Other abattoirs and rural slaughterhouses36383951,096
Meat packers and canners27284251,524
Ham, bacon, and smallgoods465259211,908
Poultry slaughterhouses23242831,321
Game packers89112118
Slaughtering, preparing and preserving meat n.e.c.4142434702
Cooperative dairy factories313259156,156
Milk processing plants384044191,056
Ice cream factories1516254697
Manufacture of dairy products n.e.c.1111124841
Canning and preserving of fruit and vegetables596670114,855
Land-based fish factories, etc.,8488115212,970
Vegetable and animal oils and fats2124228478
Grain milling and prepared breakfast foods1524262866
Bread bakeries111143162213,053
Cake, pastry, and pie (other than meat) factories102103113111,744
Cake and pastry kitchens330331355342,115
Biscuit factories10101221,159
Sugar, cocoa, chocolate, and sugar confectionery444553222,521
Food products n.e.c.667385182,678
Prepared animal feeds4952617767
     Food manufacturing1 1131 2461 48024870 793
Distilling, rectifying, and blending spirits910142199
Wine777987111,131
Brewing and malting, and tobacco manufacturers71422132,950
Soft drinks28284031,057
     Beverage and tobacco manufacturing118131163295 337
     Total: food, beverage, and tobacco manufacturing1 2281 3771 64327776 130
Wool scouring37444611,107
Woollen fibres, spinning, and weaving24253433,013
Man-made fibres, spinning, and weaving1515162594
Dyeing, printing, and finishing yams and textiles171818-340
Canvas goods and similar articles of other fabrics108109113-853
Other made-up textile goods17518018931,941
Knitting mills10611813394,550
Carpets and rugs32354162,464
Textiles n.e.c. including cordage, rope, and twine6870788885
     Manufacturing textiles5616066683215 747
Leather gloves and clothing51515851,136
Natural and artificial fur clothing2121213241
Clothing other than leather and fur7257668807718,563
     Manufacturing clothing (except footwear)7978389598519 940
Tanneries and leather finishing13142141,540
Fellmongery910132186
Fur dressing and dyeing, fur and skin articles n.e.c.3232331409
Leather and leather substitute products (excluding footwear and clothing)15315415831,325
     Manufacturing leather and products of leather, leather substitutes, and fur except footwear and clothing204210225103 460
     Footwear except of rubber, plastic or wood98105136114 856
     Total: textile, wearing apparel, leather industries1 6361 7541 98813844 003
Sawmills251282326236,895
Planing, preserving, and seasoning timber57626921,387
Builders carpentry, and builders joinery43144245463,548
Prefabricated and precut buildings43466091,134
Plywood, veneer, and board32393921,677
Sawmills, planing, and other wood mills n.e.c.3131331430
Wooden and cane containers3435352338
Basket and cane ware141415-46
Cork products and wood products n.e.c.21021121631,277
     Manufacturing wood, and wood and cork products except furniture1 0481 1231 2474816 732
Wooden furniture and upholstery792798848226,961
Mattress making89141455
Furniture and fixtures, excluding primarily of metal n.e.c.4445504412
     Manufacturing furniture and fixtures except primarily of metal842852912277 828
     Total: wood and wood products (including furniture)1 8841 9722 1597524 560
Pulp, paper, and paperboard601277,532
Corrugated board, paperboard and corrugated board boxes, cases21214683,013
Containers, and boxes of paper and paperboard n.e.c.1113161648
Wallpaper factories777-317
Pulp, paper, and paperboard articles n.e.c.47505491,455
     Manufacturing paper and paper products85961352512 965
Printing and publishing newspapers, periodicals, books7492121568,546
Job and general printing507533549578,192
Servicing industries for printing trade15415716021,451
Printing, publishing, and allied industries n.e.c.767679 357
     Printing, publishing, and allied industries79985790911518 546
     Total: paper and paper products, printing and publishing8759501 04414031 511
Basic industrial chemicals except fertilisers2222324694
Chemical fertilisers81115101,199
Pesticides99236340
Fertilisers and pesticides n.e.c.1414147117
Synthetic resins, plastic materials, and man-made fibres (excludes glass)687498162,594
     Manufacturing industrial chemicals115129182434 944
Paints, varnishes, and lacquers414249331,476
Drugs and medicines343640151,656
Soap and cleaning preparations27273061,061
Perfumes, cosmetics, and other toilet preparations45454861,309
Cleaning preparations n.e.c.1515163385
Ink67147480
Chemical products n.e.c.687189291,281
     Manufacturing other chemical products225238286997 648
     Petroleum refining1415195797
     Manufacturing products of petroleum and coal1622267378
Manufacturing rubber tyres and tubes23256081,823
Rubber products n.e.c.445158111,984
     Manufacturing rubber products6575118193 807
     Manufacturing plastic products n.e.c.292309330197 519
     Total: chemicals and chemical, petroleum, coal, rubber, and plastic products68977696119225 093
     Manufacturing pottery, china, and earthenware13614116011 232
     Manufacturing glass and glass products12212313022 368
Structural clay products1721335558
Manufacture of cement, lime, and plaster692451,038
Precast concrete123129166121,976
Concrete masonry44476710779
Ready-mixed concrete556310851,031
Plaster and fibrous plaster products2424271356
Monumental masonry and stone masonry5959662402
Non-metallic mineral products n.e.c.2124292359
     Manufacturing other non-metallic mineral products327368520426 499
     Total: non-metallic mineral products (except products of petroleum and coal)5826318104510 099
     Iron and steel basic industries50515763 753
Non-ferrous basic metal products212328102,656
Non-ferrous forgings and castings5961613788
     Non-ferrous metal basic industries778489133 444
     Total: basic metal industries125135146197 197
Cutlery and hand tools2729314439
Builders, joiners, etc., hardware4547485997
General hardware n.e.c.535353-114
Furniture and fixtures primarily of metal87909481,291
Metal joinery, fixtures, and fittings352363382173,789
Sheet metal roofing and related products18518620852,536
Structural steel, plate metal, and boiler shop products237249300204,964
Wireworking70799961,716
Nail and fastener manufacturing1114161380
Household and kitchen utensils4445451566
Servicing industries to the metal trades26627027841,683
Fabricated metal products (excludes machinery and equipment) n.e.c.414436466427,351
     Manufacturing fabricated metal products1 7481 8562 02011325 826
Manufacturing and reconditioning of engines and turbines15216318411,089
Manufacturing agricultural machinery and equipment35335437673,462
Tool, die, and jig making16016116331,280
Metal and woodworking machinery n.e.c.4545461552
Specialised industrial machinery and equipment (excludes metal and woodworking)12112313732,755
Office, computing, and accounting machinery4141662416
Industrial machinery and equipment (except electrical) n.e.c.742758890449,442
     Manufacturing machinery (except electrical)1 5981 6411 8626118 996
Electrical industrial machinery and apparatus152164182213,094
Radio, television, and communication equipment and apparatus181188202184,647
Household durables and range making16182232,528
Other electrical appliances and housewares n.e.c.33344031,444
Electrical cables and wires56671,063
Other electrical apparatus and supplies899395132,818
     Manufacturing electrical machinery, apparatus, appliances, and supplies4574985476515 594
Ship building and repairing25125526333,654
Motor vehicle assembly plants15202375,788
Motor vehicle body building, caravans, and trailers12413013592,007
Motor vehicle parts n.e.c.11111914283,570
Aircraft35394222,097
Other transport equipment n.e.c.27273653,952
     Manufacturing transport equipment5575876413421 068
Medical and surgical equipment and supplies n.e.c.2121236573
Laboratory, scientific, measuring and controlling equipment, n.e.c.3031317466
Photographic and optical goods1922276364
     Manufacturing professional, scientific, measuring and controlling equipment n.e.c., and photographic and optical goods707481191 403
     Total: fabricated metal products, machinery and equipment4 3674 6415 15129282 887
Jewellery and related articles18518719141,031
Musical instruments101010-46
Sporting and athletic goods7681811519
Brushes and brooms171726-462
Toys and games8888882585
Other manufacturing industries n.e.c.213218220131,718
     Other manufacturing industries589601616204 361
     Total: other manufacturing industries589601616204 361
     Grand total, manufacturing11 71912 76014 5181 198305 841

Table 19.5. CENSUS OF MANUFACTURING 1983-84 INCOME AND EXPENDITURE

IndustryPurchases and Operating ExpensesSales and Other IncomeValue AddedAdditions to Fixed Tangible Assets
 $(thousand)
Export meat works and abattoirs1,338,2831,460,676764,84495,935
Other abattoirs and rural slaughterhouses57,46861,35227,87610,900
Meat packers and canners206,822214,15835,65112,723
Ham, bacon, and smallgoods190,485197,42541,5844,863
Poultry slaughterhouses116,558125,81822,7523,314
Game packers13,98514,2492,207727
Slaughtering, preparing, and preserving meat n.e.c.41,74344,14711,3563,146
Co-operative dairy factories1,616,7441,657,887242,391198,402
Milk processing plants162,055169,14913,2065,280
Ice cream factories71,62374,02613,7663,940
Manufacture of dairy products n.e.c.94,85197,73520,9583,324
Canning and preserving of fruit and vegetables351,337379,646101,80820,748
Land-based fish factories, etc.,269,865272,28456,98615,016
Vegetable and animal oils, and fats77,41683,46919,7104,327
Grain milling and prepared breakfast foods139,162151,39229,4845,652
Bread bakeries223,623246,03364,86814,462
Cake, pastry, and pie (other than meat) factories70,36173,91124,9134,066
Cake and pastry kitchens46,60453,42421,6593,466
Biscuit factories61,18965,08022,2755,143
Sugar, cocoa, chocolate and sugar confectionery272,738305,27777,3817,431
Food products n.e.c.324,533345,59777,56013,341
Prepared animal feeds160,236170,59423,0634,417
     Food manufacturing5,907,6806,263,3291,716,298440,625
Distilling, rectifying, and blending spirits40,59845,47310,0251,599
Wine123,954111,64126,88310,121
Brewing and malting, and tobacco manufacturers347,575408,974133,26313,480
Soft drinks107,293116,92333,3127,182
     Beverage and tobacco manufacturing619,420683,011203,48332,382
     Total: food, beverage, and tobacco manufacturing6,527,1006,946,3401,919,781473,007
Wool scouring145,310151,24635,2269,830
Woollen fibres, spinning, and weaving226,243233,14562,7148,754
Man-made fibres, spinning, and weaving22,90026,73311,6771,581
Dyeing, printing and finishing yarns, and textiles12,95814,2736,966736
Canvas goods and similar articles of other fabrics32,22636,09812,3541,489
Other made-up textile goods93,689100,58328,8122,955
Knitting mills207,096229,42785,1729,399
Carpets and rugs176,738188,12454,2586,861
Textiles n.e.c. including cordage, rope and twine50,79156,14317,5992,726
     Manufacturing textiles967,9511,035,770314,77844,330
Leather gloves and clothing43,77040,04112,2433,505
Natural and artificial fur clothing6,4987,3762,790139
Clothing other than leather and fur549,689596,447250,74620,584
     Manufacturing clothing (except footwear)599,957643,864265,77924,229
Tanneries and leather finishing133,340130,53236,0274,735
Fellmongery17,25215,8516,769398
Fur dressing and dyeing, fur and skin articles n.e.c.26,31428,7376,8101,323
Leather and leather substitute products (excludes footwear and clothing)43,59046,67616,7481,659
     Manufacturing leather and products of leather220,495221,79665,3548,114
     Footwear (except of rubber, plastic, or wood)173,323188,15279,0955,663
     Total: textile, wearing apparel, leather industries1,961,7262,089,582725,00682,336
Sawmills436,605465,234159,01821,062
Planing, preserving, and seasoning timber122,297129,74035,2973,003
Builders carpentry and builders joinery157,023166,96954,3897,851
Prefabricated and precut buildings95,320100,23024,0712,126
Plywood, veneer, and board148,559160,41448,79117,744
Sawmills, planing, and other wood mills n.e.c.36,61939,23910,6822,338
Wooden and cane containers21,46023,4267,4501,404
Basket and cane ware9811,07922336
Cork products and wood products n.e.c.48,10252,70017,0603,675
     Manufacturing wood and wood and cork products (except furniture)1,066,9661,139,032356,98059,238
Wooden furniture and upholstery281,243301,264106,16511,183
Mattress making29,54333,75010,230513
Furniture and fixtures (excludes furniture manufactured primarily out of metal n.e.c.)13,91415,7365,354917
     Manufacturing furniture and fixtures (excludes furniture manufactured primarily of metal)324,700350,750121,74912,614
     Total: wood and wood products (including furniture)1,391,6661,489,782478,72971,852
Pulp, paper, and paperboard992,415978,042257,16471,447
Corrugated board, paperboard and corrugated board boxes, cases297,025312,52385,22116,410
Containers, and boxes of paper and paperboard n.e.c.59,12464,24817,881817
Wallpaper factories27,58027,44310,0021,779
Pulp, paper, and paperboard articles n.e.c.104,487113,35334,8294,256
     Manufacturing paper and paper products1,480,6311,495,608405,09994,709
Printing and publishing newspapers, periodicals, and books393,995433,785210,53929,121
Job and general printing399,688454,796178,53242,808
Servicing industries for printing trade51,76157,55530,0207,124
Printing, publishing, and allied industries n.e.c.11,93014,2985,842824
     Printing, publishing, and allied industries857,374960,434424,93479,877
     Total: paper and paper products, printing and publishing2,338,0052,456,042830,033174,587
Basic industrial chemicals except fertilisers92,20191,38638,19363,745
Chemical fertilisers331,879331,66542,75413,140
Pesticides53,29662,95515,3916,326
Fertilisers and pesticides n.e.c.11,37511,3842,324450
Synthetic resins, plastic materials, man-made fibres (excludes glass)273,330300,16181,16612,561
     Manufacturing industrial chemicals762,082797,552179,82896,222
Paints, varnishes, and lacquers164,951181,08344,3254,001
Drugs and medicines159,553181,23247,5777,449
Soap and cleaning preparations105,484117,33431,6825,097
Perfumes, cosmetics, and other toilet preparations92,33695,79626,7093,512
Gleaning preparations n e.c.30,20133,99110,2851,348
Ink46,01152,77716,2221,624
Chemical products n.e.c.123,801137,95538,8454,560
     Manufacturing other chemical products722,337800,169215,64427,591
     Petroleum refining230,400151,12643859,508
     Manufacturing products of petroleum and coal43,75645,18111,267740
Manufacturing rubber tyres and tubes125,494125,78233,38511,247
Rubber products n.e.c.-106,109113,63644,9144,900
     Manufacturing rubber products231,603239,41978,29916,147
     Manufacturing plastic products n.e.c.499,700535,485184,32942,953
     Total: chemicals and chemical, petroleum, coal, rubber, and plastic products2,489,8782,568,931669,4101,043,161
     Manufacturing pottery, china, and earthenware43,82048,76420,0572,073
     Manufacturing glass and glass products146,534164,57169,0228,029
Structural clay products34,23334,04112,4502,535
Manufacture of cement, lime, and plaster137,432142,75433,19614,243
Precast concrete119,835133,99251,05611,728
Concrete masonry190,965171,30796,0484,378
Ready-mixed concrete132,436141,71032,0986,572
Plaster and fibrous plaster products35,64142,80713,161596
Monumental masonry and stone masonry16,75818,9637,6801,073
Non-metallic mineral products n.e.c.19,83222,4838,3291,695
     Manufacturing other non-metallic mineral products687,133708,057254,01842,821
     Total: non-metallic mineral products (excludes products of petroleum and coal)877,487921,391343,09652,924
     Iron and steel basic industries447,293455,190121,949372,957
Non-ferrous basic metal products400,611426,992154,35316,841
Non-ferrous forgings and castings64,48268,44719,2382,960
     Non-ferrous metal basic industries465,093495,440173,59219,800
     Total, basic metal industries912,386950,630295,541392,757
Cutlery and hand tools21,21325,3469,490963
Builders, joiners, etc., hardware45,69052,53420,0801,916
General hardware n.e.c.2,2482,9511,294440
Furniture and fixtures (primarily of metal)67,27371,00223,6372,468
Metal joinery, fixtures, and fittings221,089237,33169,9859,425
Sheet metal roofing and related products203,651229,62269,2479,021
Structural steel, plate metal, and boiler shop products314,305346,050118,63411,285
Wireworking151,423163,51239,9184,543
Nail and fastener manufacturing29,43633,7419,502252
Household and kitchen utensils26,98231,64012,5351,252
Servicing industries to the metal trades53,26161,85729,5894,844
Fabricated metal products (excludes machinery and equipment n.e.c.)446,129504,707180,50725,094
     Manufacturing fabricated metal products1,582,6991,760,291584,41871,503
Manufacturing and reconditioning engines and turbines51,70158,60221,2572,925
Manufacturing agricultural machinery and equipment196,267215,19164,1028,286
Tool, die, and jig making47,32455,79625,1564,292
Metal and woodworking machinery n.e.c.24,48727,25910,8501,034
Specialised industrial machinery and equipment (excludes metal and woodworking machinery)190,569211,24460,5305,095
Office, computing, and accounting machinery26,17027,9388,8001,177
Industrial machinery and equipment (except electrical) n.e.c.528,910568,772186,36721,306
     Manufacturing machinery (except electrical)1,065,4271,164,802377,06244,114
Electrical industrial machinery, and apparatus190,046207,53770,49911,359
Radio, television, and communication equipment, and apparatus332,361360,56791,80310,532
Household durables and range making199,192213,52861,2259,819
Other electrical appliances and housewares n.e.c.82,13687,21325,7082,610
Electrical cables and wires104,916123,09037,5672,708
Other electrical apparatus and supplies154,655168,14457,3696,217
     Manufacturing electrical machinery, apparatus, appliances, and supplies1,063,3061,160,080344,17143,244
Ship building and repairing129,540132,80561,2824,401
Motor vehicle assembly plants726,536779,091119,94816,427
Motor vehicle body building, caravans, and trailers122,449133,23337,9294,162
Motor vehicle parts n.e.c.177,205179,29357,2605,983
Aircraft107,449130,52383,1065,393
Other transport equipment n.e.c.152,657147,46780,1366,153
     Manufacturing transport equipment1,415,8351,502,413439,66142,519
Medical and surgical equipment and supplies n.e.c.41,33644,88016,7442,668
Laboratory, scientific, measuring and controlling equipment n.e.c.21,15518,5273,678920
Photographic and optical goods20,70421,1526,573425
     Manufacturing professional, scientific, measuring and controlling equipment n.e.c, and photographic and optical goods83,19484,56026,9954,014
     Total: fabricated metal products, machinery and equipment5,210,4625,672,1451,772,307205,393
Jewellery and related articles46,56249,65015,4982,942
Musical instruments2,4702,67787944
Sporting and athletic goods27,56430,0569,1571,139
Brushes and brooms21,75823,1677,920755
Toys and games30,62731,3278,3461,776
Other manufacturing industries n.e.c.64,40874,45128,3734,086
     Other manufacturing industries193,388211,32870,17210,742
     Total: other manufacturing industries193,388211,32870,17210,742
     Grand total, manufacturing21,902,09723,306,1707,104,0762,506,758

Table 19.6. GEOGRAPHICAL DISTRIBUTION OF MANUFACTURING INDUSTRY 1983-84

Local Government RegionActivity UnitsAncillary Activity UnitsPersons Engaged End FebruarySalaries & Wages to Paid* EmployeesTotal Sales & Other IncomeAdditions to Fixed Tangible Assets

* Includes capitalised salaries and wages amounting to $24,811,000.

 Number$ (thousand)
Northland371206,32199,189544,487447,991
Auckland5,330400108,8121,529,5008,337,123770,748
Thames Valley202103,66152,133459,76849,919
Bay of Plenty7364513,676226,7561,180,72561,364
Waikato8037417,332277,8241,625,731122,543
Tongariro11031,80925,530105,8112,653
East Cape13643,42042,895154,31215,196
Hawke's Bay4922913,825213,6551,180,50465,396
Taranaki414329,579150,370952,609566,160
Wanganui232125,16474,037327,54414,972
Manawatu472399,846132,141730,97330,193
Horowhenua23193,53641,020196,5137,691
Wellington1,20420627,877411,7102,323,04096,231
Wairarapa15553,19341,633135,89910,594
             Total, North Island10,888888228,0513,318,39318,255,0382,261,652
Nelson Bays272194,71664,654327,01414,110
Marlborough13192,15925,382115,69725,425
West Coast13392,23329,580186,92414,301
Canterbury1,76917336,328498,3102,294,92588,542
Aorangi332.176,46782,998392,14819,049
Clutha—Central Otago14042,82237,799128,60011,249
Coastal—North Otago4875712,037162,849726,27031,172
Southland3662211,028195,049879,55441,257
             Total, South Island3,63031077,7901,096,6215,051,132245,106
             Total, New Zealand*14 5181 198305 8414,415,01423,306,1702,506,758

Table 19.7. ENGAGEMENT IN RESEARCH AND DEVELOPMENT BY MANUFACTURING ENTERPRISES*

Manufacturing Census (Year)Persons Engaged on Research and DevelopmentPercentage of Total Number Engaged in ManufacturingExpenditure on Research and DevelopmentPercentage to Total Value Added in Manufacturing

* Details published in all but the percentages exclude single-establishment enterprises employing less than 10 persons and ancillary units servicing more than 1 industry.

 No.%$(000)%
1975-761,4080.4715,4450.66
1976-771,3440.4315,4030.54
1978-791,3410.4522,5240.65
1981-821,4880.5044,0440.75
1983-84....52,3170.74

19.4 Production of selected goods

Table 19.8 shows the volume of production of selected goods. It should be noted that the figures refer to December years (except where otherwise stated) and not to production years as in most tables in this section. Quarterly or, in some cases, monthly production figures for these commodities will be found in the Monthly Abstract of Statistics, published by the Department of Statistics.

Table 19.8. VOLUME OF PRODUCTION OF SELECTED GOODS

CommodityUnit198219831984

* Includes white packed granulated sugar, bulk white granulated sugar, fine liquid sugar, castor sugar, brown sugar, coffee crystals and invert sugar.

† Year ended May.

‡ Figures related only to operations of superphosphate manufacturing works.

Electric ranges and rangettesNo.55,96657,20367,389
Television setsNo.129,78699,556102,377
Woollen and worsted yarntonnes20,20719,30724,847
Carpetssq metres (000)10,0918,92411,611
Refined sugar*tonnes (000)121.0137.9x154.6x
Buttertonnes (000)247.8254.0291.9
Cheesetonnes (000)111.9114.4109.3
Flourtonnes (000)220.9220.1208.9
Beerlitres (million)375.5367.9383.9
Passenger cars—totalNo.87,03063,23889,772
Trucks, vans, and busesNo.24,21719,03024,997
Papertonnes (000)702.5652.8762.1
Wood pulptonnes (000)1 039.41 031.31 158.1
Chemical fertiliserstonnes (000)1,7571,6941,844
Cigarettesmillion6,3346,1966,274

Quarterly economic survey of manufacturing

In 1974-75 the Department of Statistics introduced an enterprise-based economic Census of Manufacturing. Following completion of the first 2 annual censuses on the new basis, a quarterly survey of the main indicators for the manufacturing sector was developed, and this commenced with the June 1977 quarter.

The survey replaced the previous short-term survey of manufacturers' stocks (now discontinued) and was designed to provide rapidly more comprehensive economic indicators for the use of the Government, trade organisations, and business people, as well as providing data for use in the quarterly national accounts. With the co-operation of manufacturers, and because the survey is a sample one only, it is possible to publish results in a much more timely manner than is possible in the case of a full census.

Estimates of national totals are produced from a sample of approximately 1500 manufacturing units selected from the 1979 Census of Manufacturing. It was revised in June 1982. All manufacturing divisions of the New Zealand Standard Industrial Classification are represented. Allowance is made in the survey for the opening of new factories and the closure of established ones.

In order to provide a consistent long-term historical series, figures have been revised back to 1977 to conform to the new survey coverage.

The definitions used in the tables are given below.

Sales of goods, services, and all other income—The actual value of sales (whether in New Zealand or overseas) and all other income during the quarter. It includes sales of goods without processing or assembly, processing of other firms' materials, and all other income except direct government cash grants, subsidies, interest, dividends, royalties, patent fees, insurance claims received, sales tax and beer and excise duty. Also excluded are exchange gains and extraordinary items e.g. gains on sale of fixed assets.

Stocks—Stocks are as at the end of each quarter.

  1. Stocks of materials—Includes components, stores, fuels, containers, and other packaging materials.

  2. Stocks of finished goods and work in progress—Includes goods purchased for resale without further processing.

Additions to fixed assets—Purchase of new and secondhand fixed assets and the cost of work done by a firm's own employees, in producing, constructing and installing fixed assets for its own use. The revised survey extended the coverage of statistics to include additions to fixed assets of non-operating units.

Salaries and wages—This is the gross salaries and wages of all employees (full-time, part-time, and casual) during the quarter. It does not include drawings of working proprietors and partners.

Purchases and other operating expenses—Includes the value of purchases of all materials, components, supplies, containers and other packaging materials, fuels, electricity, and water. It also includes payments for commission and contract services, purchases for resale without processing or assembly, and all other operating expenses except interest, bad debts, donations, royalties and patent fees paid, exchange losses and extraordinary items e.g. losses on sale of fixed assets, sales tax, beer and excise duty, and fringe benefits tax.

Hours worked—Hours worked during the quarter relate to paid employees only and include overtime hours.

Table 19.9. CENSUS OF MANUFACTURING: ALL-INDUSTRY TOTALS

PeriodSales and Other Income*StocksAdditions to Fixed AssetsSalaries and WagesPurchases and Other Operating Expenses§Hours Worked
MaterialsFinished Goods

* Sales of goods and services and all other income excludes sales tax, beer and excise duty, direct government cash grants and subsidies, interest, dividends, royalties, patent fees and insurance claims received. Also excluded are exchange gains and extraordinary items e.g. gains on sale of fixed assets.

† Includes work in progress.

‡ Additions to fixed assets covers both operating and non-operating manufacturing establishments.

§ Includes other operating expenses except interest, bad debts, donations, royalties and patent fees paid, exchange losses and extraordinary items e.g. losses on sale of fixed assets, sales tax, beer and excise duty, and fringe benefits tax paid.

March year—$(million)(000)
198218,936.91,716.61,595.31,383.33,931.713,886.5540,639
198320,660.61,845.21,714.62,323.84,270.415,135.8533,302
198421,827.31,923.11,630.62,430.04,179.215,933.8509,223
198525,995.52,548.11,901.81,956.14,614.119,625.1538,357
Quarter—
1985—Mar6,791.32,548.11,901.8469.21,208.35,242.7132,733
            Jun7,169.82,668.52,044.4548.71,328.55,430.7144,207
            Sep7,048.52,590.02,090.0664.01,247.35,205.5139,066
            Dec7,460.82,529.42,026.2649.71,314.65,431.7134,572

Table 19.10. QUARTERLY ECONOMIC SURVEY OF MANUFACTURING YEARS ENDED 31 MARCH 1984

Industry DivisionSales and Other Income*StocksAdditions to Fixed AssetsSalaries and WagesPurchases and Other Operating Expenses§Hours Worked
MaterialsFinished Goods

* Sales of goods and services and all other income excludes sales tax, beer and excise duty, direct government cash grants and subsidies, interest, dividends, royalties, patent fees and insurance claims received. Also excluded are exchange gains and extraordinary items e.g. gains on sale of fixed assets.

† Includes work in progress.

‡ Additions to fixed assets coves both operating and non-operating manufacturing establishments.

§ Includes other operating expenses except interest, bad debts, donations, royalties and patent fees paid, exchange losses and extraordinary items e.g. losses on sale of fixed assets, sales tax, beer and excise duty, and fringe benefits tax.

|| Includes the processing of meat and dairy products, and other primary foods.

$(thousand)(000)
Primary food||4,324,834111,782200,262316,559886,1403,244,96383,666
Other food3,089,729289,594289,794149,924388,3522,443,64852,130
Textiles, clothing2,314,313269,343219,48573,290488,1251,628,29470,945
Wood and furniture1,676,224126,792112,360109,191343,2171,145,09142,523
Paper and printing2,956,067249,209141,087194,973569,6661,975,86261,996
Chemical3,028,645367,803253,890691,394428,2352,448,30947,651
Non-metallic mineral832,84847,37753,59949,666145,287561,21716,970
Basic metal1,168,171149,03080,150171,989161,874902,14714,719
Fabricated metal6,281,769898,911521,117188,2941,149,6624,978,712140,002
Other manufacturing industries322,93638,28030,02810,77753,534239,8387,760
    Total, all industries25,995,5332,548,1201,901,7731,956,0574,614,09219,625,083538 357

Further information

Census of Manufacturing 1978-79 (Volume)—Department of Statistics.

Census of Manufacturing 1981-82 (Volume)—Department of Statistics.

Report of the Department of Trade and Industry (Parl. paper G. 14).

Monthly Abstract of Statistics—Department of Statistics.

Chapter 20. 20 Building, construction, and housing

20.1 Housing

The housing market was buoyant in 1985 with sales of dwellings (including own-your-own flats) numbering 69 100, compared with 65 383 for 1984 (a 5.7 percent increase). Sales of own-your-own flats increased from 12 804 for 1984 to 14 522 for 1985 (a 13.4 percent increase). The Valuation Department's half-yearly House Price Index increased by 14.3 percent in the 12 months to December 1985. This is a lower rate of increase than the 15.3 percent movement in the quarterly Consumer Price Index over the same period. The total number of building permits for new dwellings reached its highest level for 9 years at 23 014(15 898 houses and 7116 owner-occupied flats) in the 1985-86 financial year.

The Valuation Department's half-yearly Section Price Index increased by 9.7 percent in the year to December 1985. The number of section sales decreased by 12.5 percent in 1985 compared with the previous year. Both price movement and turnover suggest a shortage of privately developed sections in some areas and this may be one reason for the increased building of owner-occupier flats during the past 2 years. In that period the number of permits for new flats increased at a faster rate than those for houses. This would appear to reflect a longer term shift in emphasis from houses to flats, resulting in greater housing density in city areas. Some of the factors influencing this are the general trend towards smaller household size and increasing building and servicing costs (including the increasing cost of sections).

The rent freeze was lifted on 28 February 1985. The rental component of the Consumer Price Index showed a 34 percent increase in the year after the freeze was lifted, with an 18 percent increase in the first quarter. By comparison, rents rose by 20 percent in the year prior to the freeze and 26 percent between June 1982 and February 1985. In contrast, monitoring of rents in newspaper advertisements suggested there was no significant increase in rentals for new tenancies following the lifting of the rent controls.

The net outflow of the population during the year ended 31 March 1986 is likely to have resulted in some easing of demand for rental properties. The effects would be felt more particularly in the main North Island urban areas.

Investment in housing. Deregulation of the finance industry, which began in mid-1984, has had a significant impact on the housing market. The structure and functions of financial organisations are changing as institutions compete for funds and market share.

Competition for depositors, together with the Government's tight monetary policy, has contributed to a significant increase in the interest rates available to all forms of term deposit. This has flowed through to lending rates. A survey of mortgage interest rates in March 1986 indicated that first mortgage rates were between 19 and 22 percent per annum and at that time some institutions had plans for further increases. By the beginning of the 1986-87 financial year, however, there was some optimism that interest rates had peaked and were beginning to turn down.

Housing as an investment is having to compete on an equal basis with consumer and business lending. Interest rates for housing finance have, as a result, increased to a level which will provide institutions with a return from residential mortgages which is comparable with other forms of lending.

Higher interest rates increase the number of people unable to afford private sector housing finance and add to the numbers applying for Housing Corporation loans. Both the number and value of housing loan approvals through traditional housing finance institutions (other than the trading banks) showed a reduction over the last 12 months. This development indicates the extent of the changes in market share which are occurring between institutions. However, the decline in housing loan approvals through some of the traditional institutions was more than offset by the increase in Post Office and Housing Corporation lending.

National Housing Commission. The National Housing Commission advises the Minister of Housing on all matters relating to housing, and inquires into and keeps under review, the housing needs of the population. 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 promoting co-operation between them.

Currently there are 6 appointed members, comprising the chairperson (the general manager of a lending institution), an architect, a professor of law, a builder, an economist, a sociologist, and 2 official members from the Housing Corporation. The second of the commission's 5-yearly reports on the present and future position of housing in New Zealand was published in mid-1983. Up to the end of 1985 the commission had issued 68 publications based on its continuing programme of research into a variety of aspects of housing.

Table 20.1. HOUSES AND FLATS COMPLETED

Year Ended 31 MarchGovernmentPrivate and Local AuthorityTotal New Houses and Flats
State RentalTenancies*

* Includes Education and Hospital Boards.

† City, borough and county councils, etc., comprising pensioner units, staff housing, etc.

198182558x13,40014,300
198226787x15,90016,300
1983298100x14,40014,800
198430011714,90015,300
19855594917,40018,000

The statistics are dependent on the supply of information by local authorities and indications are that they have been understated.

Housing demolitions. According to notifications received, the totals of dwellings demolished in recent years have been: 1980-81, 1357; 1981-82, 1170; 1982-83, 878; 1983-84, 883; and 1984-85, 1117.

Home ownership. As at 31 March 1985 more than half of New Zealand's estimated 1 170 000 dwellings have been built during the past 25 years. The average house built in 1984-85 is about 130 square metres in area, is single-storeyed, and normally built of timber. 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. There is relatively little housing built for private rental.

For information on tenure of dwellings and occupation of rented dwellings see chapter 6.

Joint family homes. The Joint Family Homes Act 1964 provides for a form of ownership in which a husband and wife enjoy equal rights of use, possession, and enjoyment of the family home. While a settlement subsists, neither party may deal separately with his or her interest in the property, but on the death of one of them the home becomes the property of the survivor. Settlements are exempt from gift and stamp duty, and on the death of one spouse an exemption from estate duty may be claimed. In the event of claims by creditors, or the Official Assignee in bankruptcy, the property is protected to the extent of $21,500. Own-your-own flats may be settled under the Act, and the benefits of settlement may be transferred from one family home to another.

In the latest years the numbers of joint family homes registered have declined sharply compared to the total number of documents lodged in Lands and Deeds offices, probably an effect of the Matrimonial Property Act 1976.

Table 20.2. JOINT FAMILY HOMES REGISTERED*

Year Ended 31 MarchHomes Settled

* Total numbers of land transaction instruments registered are shown in brackets.

Source: Department of Justice.

197915 061 (640 998)
198012 515 (624 866)
198110 071 (693 760)
19828 769 (809 575)
19838 152 (693 666)
19849 578 (752 005)

Rental housing

Tenancies. Under the Rent Appeal Act 1973 (administered by the Housing Corporation), Rent Appeal Boards have been appointed to determine an application, by either a landlord or tenant, to set an equitable rent for a dwellinghouse. The Act limits the amount of rent in advance and bond that can be demanded, as well as prohibiting a landlord demanding consideration other than rent or refusing to grant a tenancy because the prospective tenant has children. The Tenancy Act 1955 governs rents and conditions of possession of a few private tenancies in existence before 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 District Court to fix a fair rent, effect certain repairs, prevent oppressive conduct, or have the tenancy freed from controls under the Act. A Residential Tenancies Bill, which reforms and consolidates the law of landlord and tenant, and establishes a mediation service and Tenancy Tribunal to resolve disputes between landlord and tenant, is currently before a Select Committee.

Housing Corporation rental housing. Under the Housing Act 1955 the Housing Corporation builds and lets rental houses and flats, as well as making loans to local authorities to build rental accommodation.

Housing Corporation rental houses and flats (formerly known as State rental houses and flats) have been built since 1937. These are allocated to tenants on the basis of need.

The Housing Corporation acquires both developed sections and undeveloped land, which it subsequently develops, to provide sites for its houses. The construction of these houses is carried out under contract either to corporation design or on a “design and build” basis by builders. Some “design and build” contracts are also let for new houses on land owned by the builder as a further method of obtaining suitable sections. Some of the acquisition programme is met by purchasing existing houses on the private market or from other government departments.

Table 20.3. HOUSING CORPORATION NEW RENTAL UNITS CONSTRUCTED

Year Ended 31 MarchRental Units

Source: Housing Corporation.

19801,394
1981933
1982420
1983467
1984639
19851,073

The number of additional dwelling units taken over by the corporation during the year ended 31 March 1985 totalled 1073. The number of tenancies administered on 31 March 1985 was 57 547. Rent accounts in arrears at 31 March 1985 were 1.29 percent of the total compared with 1.57 percent a year earlier. Rents received from tenancies during 1984-85 amounted to $82.7 million compared with $83.2 million for 1983-84. Apart from interest, the largest single item of expenditure charged against rentals was the provision for maintenance of rental houses. For the year ended 31 March 1985 this amounted to $33.6 million compared with $31.6 million for the previous year. Rates payable to local authorities showed an increase for the year ended 31 March 1985 totalling $19.5 million compared with the previous year's figure of $19.0 million.

The corporation continues to direct an increasing proportion of its rental programme away from peripheral development into renewal and redevelopment, particularly in the main centres, in order to encourage better utilisation of the existing housing stock and provide greater diversity in the type of accommodation offered. The emphasis on this and other developments remains with smaller schemes where the social and economic impact on the existing urban pattern is less marked.

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 1985 was 16 513. This includes houses built at the sites of major construction jobs, such as electric power schemes.

Table 20.4. HOUSING CORPORATION EXPENDITURE

Year Ended 31 MarchGross ExpenditureIncrease or Decrease Over Previous YearFunded From Public AccountIncrease in Total Government Expenditure

Source: Housing Corporation.

 $(000)Percent$(000)Percent
1982410,300-5175,57721
1983433,600+6222,01710
1984475,100+10249,95612
1985599,200+26460,51711

20.2 House purchase and finance

Residential prices. Statistics compiled by the Valuation Department in Table 20.5 illustrate the trend in residential prices in 39 urban areas throughout New Zealand. The figures of average sale prices for sections, houses, and owner-occupier flats exclude family sales, sales of leasehold property, and other sales not subject to normal market forces.

Table 20.5. RESIDENTIAL PRICES

ItemDecember Years
 198019811982198319841985

Source: Valuation Department.

Average sale price of—$$$$$$
    Sections12,62614,39615,755x17,84920,33924,559P
    Houses34,37440,66750,92357,58266,38375,630P
    Owner-occupier flats31,74236,86748,58954,71761,85468,160P

Urban residential property and section price index. This index is designed to measure changes in the average level of prices paid for residential properties and urban 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.

Table 20.6. URBAN RESIDENTIAL PROPERTY AND SECTION PRICE INDEX*

CentreResidential PropertiesSections
January-June 1984July-December 1984January-June 1985January-June 1984July-December 1984January-June 1985

* Base: Each urban area separately 1973 = 1000.

Whangarei4,6244,6734,8675,3736,0957,507
Auckland4,0444,2964,6564,1634,6435,019
Hamilton3,8554,0084,3254,1234,4595,329
Tauranga3,6983,8574,0344,5914,5785,211
Rotorua4,1484,2464,6014,1564,3455,071
Gisborne4,2294,3314,5614,2394,7624,548
Napier-Hastings3,7373,8894,0403,9914,3134,728
New Plymouth4,0804,1444,2373,5913,8514,046
Wanganui4,5114,8525,1243,6953,7134,521
Palmerston North4,1424,3044,4634,1924,9845,078
Masterton3,5483,7714,2312,4642,8343,197
Wellington-Kurt3,5853,8434,1143,0513,3423,949
Nelson4,7384,9955,3604,6415,5035,444
Christchurch3,6493,8874,2613,4603,6474,344
Timaru4,0534,0894,5654,2095,0664,649
Dunedin3,3583,6883,9063,6114,2824,582
Invercargill3,8123,8443,9232,7932,9203,029
All Urban Areas Combined3,9014,1254,4323,9914,3824,853

Table 20.7. COMBINED URBAN RESIDENTIAL PROPERTY AND SECTION PRICE INDEX

Six Months EndedResidential PropertiesSections
1978—Jun17012,306
            Dec17402,212
1979—Jun17952,241
            Dec18342,164
1980—Jun19342,217
            Dec2,0622,292
1981—Jun2,3332,412
            Dec2,7172,650
1982—Jun3,1922,931
            Dec3,3393,181
1983—Jun3,4473,503
            Dec3,6493,620
1984—Jun3,9013,991
            Dec4,1254,382
1985—Jun4,4324,853

The above table provides index numbers for 17 principal market centres combined (Base: Weighted average 17 centres combined). The long-term series is obtained by linking the revised urban house property price index to the index which it supersedes.

Family benefit capitalisation. The Family Benefit (Home Ownership) Act 1964 provides for payment in a lump sum of the social welfare family benefit. The capitalised benefit can be used either to build a family home, or for essential alterations, or to repay mortgages. 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 $4,000. Family benefit advances totalling $18.21 million were authorised during 1983-84 by the Housing Corporation to applicants holding eligibility certificates issued by the Department of Social Welfare.

Home ownership accounts are offered by the Post Office Savings Bank, trustee and private savings banks, and many building societies. Depositors who operate these accounts can obtain either tax rebates while they are saving, or a government grant towards the cost of their first home.

Maori housing. The Department of Maori Affairs provides housing assistance to Maori and Pacific Island families under the Maori Housing Act 1935. From the inception of the Maori Housing programme to 31 December 1985, the department financed 23 001 new homes and 4414 existing houses. In addition, a limited number of advances are made for additions and repairs to homes, refinance of existing loans and finance to second homeowners. While the department continues to house individual Maori and Pacific Island families, the department's programme is changing to provide housing in a way that recognises cultural values and supports the whanau. In 1985 the department emphasised policies such as Papakainga housing, Kaumatua flats, Whareawhina and Wharetapiri which promote development of the whole community in line with its overall philosophy of Tu Tangata.

Housing finance

Important sources of housing finance are building societies, life insurance offices, trustee savings banks, solicitors' trust funds, and the government Housing Corporation. Most of the lending by institutions is in the form of table mortgages, being made initially for terms of usually up to 30 years with the Housing Corporation, about 15 years with building societies, and about 10 years with the private savings banks. The general experience of these institutions is that most house mortgages are redeemed in 7 to 12 years. 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.

Mortgage guarantee scheme for housing. The Housing Corporation has statutory authority to guarantee mortgages and operates a scheme whereby an approved lender may be guaranteed repayment of a housing loan. In 1984-85 there were 4124 guarantees issued, compared with 4998 in 1983-84.

Housing Corporation finance

The Housing Corporation generally provides finance to first home seekers receiving a modest income. Some second and subsequent home seekers who demonstrate a special need may also be assisted. For the year ended 31 March 1985, the Housing Corporation authorised 3295 loans valued at $106.23 million for new urban dwellings. Of the total 9659 housing loans authorised, 6364 were authorised for the purchase of existing houses.

Eligibility for loans. The major objective of the Housing Corporation's lending policy is to assist modest income families to acquire a first home. The availability of loan finance, and the interest rate payable are dependent on income. First-home seekers are those who have not owned, sold or held an interest in housing in New Zealand or overseas, during the last 5 years. Applicants must have a need to borrow and intend personally to occupy the property. Conditions which applied during the year were: sole persons without dependents were not eligible for loans; and applicants had to be New Zealand citizens or have been granted permanent residence status.

Income limits. The corporation uses family income (the combined gross income of the husband, wife or partner) when determining eligibility for loan purposes. Gross income includes overtime, secondary employment and other related earnings and allowances. Income certificates are required from employers so that the amount earned by each applicant may be verified.

The corporation gives absolute priority for loan assistance to eligible couples and families whose total gross income is equal to or less than the national average gross wage. Provided funds are available, the corporation has been able to assist other applicants whose family income is a little over the national average, particularly if they have dependent children or elderly relatives living with them.

The corporation does not have set loan limits. There are regional loan guidelines, which can be exceeded in special cases to take into account the circumstances of the individual family.

Employment related loans. Loan assistance may be offered to applicants in one or more of the following groups if they do not qualify for finance under other lending policies: an armed forces or rehabilitation applicant qualifying on service; an applicant who meets the requirements of the tied housing scheme (those who have lived in employer-provided accommodation for at least 10 years); or a public servant (with dependants) on transfer.

Table 20.8. COST OF HOUSES FINANCED BY HOUSING CORPORATION

Branch AreaYear Ended 31 MarchNew Houses (including Section)Existing Houses
NumberAverage CostNumberAverage Cost

Source: Housing Corporation.

   $     $    
Auckland/Manukau198484554,50077045,300
 198572559,30068952,300
Hamilton198433842,00029139,300
 198541542,90033345,600
Wellington/Lower Hutt198416948,40059543,000
 198518252,00030745,400
Christchurch198433650,00092338,000
 198520255,50072640,200
Dunedin19843643,10024732,300
 19852153,30025432,500

The information on costs of new and existing houses bought by income earners who meet Housing Corporation requirements comes from a 1 in 5 sample of loans authorised.

Housing of the elderly. Government policies encourage local authorities, religious and welfare organisations to meet the housing needs of elderly persons. A low-interest loan of up to $17,250 is available for up to 30 years on each pensioner unit built. Other costs can be met by government subsidies. The maximum total assistance is $28,000. This combination of low-interest loans and generous subsidies is directed at keeping rents at a level that tenants can afford.

The policy is administered by the Housing Corporation, which after the Health Department has established the need for pensioner accommodation in a particular locality, provides technical services, approves and administers the loan and subsidy.

The amount of subsidy approved in 1984-85 was $3.33 million to provide housing for 388 persons. Since the policy began in 1950, subsidy assistance has totalled $83,634 million for the accommodation of 13 871 persons.

A policy to assist the rehousing of elderly home owners in owner-occupier flats is proving popular with local authorities, and religious and welfare organisations. A particular feature of this policy is the bridging finance which is made available, so that elderly home owners can sell their existing home before contributing towards the cost of the new flat. The Housing Corporation has also assisted in funding the upgrading of older units and the construction of wardens' residences for large complexes.

Relocatable granny flats. In 1980 the Government approved of the Housing Corporation making fiats available to both local authorities and religious and welfare organisations to provide relocatable 'granny flats' for housing elderly persons on a home owner's property, with the same eligibility applying as for pensioner flats.

Total finance available to build the flats is $25,000 per unit—$10,750 subsidy plus a low-interest loan of up to $14,250.

The corporation is also able to make available an additional loan of $2,000 per unit at an interest rate of 8 ½ percent reviewable annually and with a maximum term of 10 years.

This additional loan is for the specific purpose of meeting the costs of installation of the unit on the site, connection of services, and removal back to the base depot.

Rural housing. The Rural Housing Act 1939 had as its object the provision of more houses on farm properties. Loans were 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 (568 in 1984-85) 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. The substantial proportion of assistance provided has been in the metropolitan areas with the emphasis on moderate-cost accommodation.

The Housing Corporation through the Community and Housing Improvement Programme (CHIP) has offered Government assistance for a wide range of activities in Neighbourhood Improvement Areas (NIAs) selected by local authorities as areas in need of special renewal attention including community housing.

Just over $59.65 million was authorised for community housing and urban renewal schemes between 1975 and 1983 when this programme was discontinued.

Local authorities are authorised under the Local Government 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 authorities to purchase land for subdivision for housing. Local authorities are encouraged to play a prominent part in the housing of their citizens.

Table 20.9. HOUSING CORPORATION LOANS AUTHORISED

 Year Ended 31 March
1984198519841985

* This scheme was introduced on 1 July 1984.

† Loans by the Housing Corporation on sections sold through the Housing Account.

‡ Advances changed to a subsidy during the year.

Source: Housing Corporation.

New houses—No.No.$(m)$(m)
    Modest income2,8992,60486.086.28
    Tenants scheme*-285-9.97
    Employment-related66240616.710.05
Existing houses—
    Modest income4,0293,40992.091.13
    Tenants scheme*-1,309-44.02
    Employment-related2,3081,64643.030.35
Home improvement2,6602,00320.0915.50
Refinance1937612.5116.18
Section loans3321343.771.65
Building suspensory loans2,2992,22711.5211.14
Home ownership supplemented loans5,363-36.2024.31
Tenancy savings scheme loans1,7091,5933.833.16
Housing for the elderly4014777.969.07
Rural housing loans61527.056.70
Urban special loans310.110.02
                 Total22 90916 907330.66359.46

Table 20.10. HOUSING CORPORATION LOANS BEING ADMINISTERED

Loans on Mortgages*As at 31 March
198319841985

* These figures do not include loans administered by the Housing Corporation on an agency basis (e.g., hotel investment account, gas companies) or industrial loans.

Source: Housing Corporation.

Urban (i.e. loans to individuals)162,167162,746162,647
Local authority12810178
Urban housing1,5301,5951,662
Rural housing1,0611,1261,188
                 Total164 886165 568165 575

20.3 Building and construction industry

Building statistics. The main 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. 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 permit value shown represents in the majority of instances the contract price or estimated cost of the building prior to the commencement of construction. The finished cost may be higher because of wage increases, the rising cost of materials, etc. This applies particularly to large buildings which usually take a considerable time to complete.

The values of building permits for the latest 5 years are analysed by types of building in Table 20.11. Permits cover alterations and additions as well as new buildings. Government and other buildings not requiring building permits are included.

Table 20.11. VALUE OF BUILDING PERMITS ISSUED

Type of BuildingYear Ended 31 March
19811982198319841985

* Includes alterations and additions.

† Includes ancillary buildings.

  Dwellings$(million)
Houses424.9669.9628.6843.1905.4
Flats96.1180.4166.5192.7282.2
Alterations and additions199.8269.6294.0330.5330.0
  Other Buildings*     
Hostels, boardinghouses16.325.815.613.013.1
Hotels, motels, etc.24.749.327.161.849.9
Hospitals and nursing homes18.628.923.439.845.9
Education buildings93.766.160.365.584.9
Social, cultural, and recreational buildings57.051.172.166.569.8
Shops, restaurants, taverns50.259.565.668.2109.5
Office and administrative123.5189.1188.9206.5347.7
Warehouses60.168.670.967.3100.2
Factories, powerhouses, etc.127.4269.9305.6221.8300.1
Farm buildings61.269.974.073.075.9
Miscellaneous buildings2.43.77.315.39.0
All buildings1,356.12,001.82,000.02,265.22,723.6

Table 20.12. LOCATION AND VALUE OF BUILDING PERMITS ISSUED 1984-85

Main Urban AreaNew Houses and FlatsOther Buildings Value*Total Buildings Value*
NumberValue

* Includes alterations and additions.

  $(m)$(m)$(m)
Whangarei45621.612.237.2
Auckland (Main) Urban Area4,949303.9351.3728.2
Northern Auckland Zone1,51295.138.6155.1
Western Auckland Zone91543.923.076.3
Central Auckland Zone1,00372.8222.6322.5
Southern Auckland Zone1,51992.167.0174.4
Hamilton65435.040.482.9
Tauranga73635.120.661.5
Rotorua38819.119.942.8
Gisborne1577.57.417.3
Napier27415.717.136.7
Hastings46221.612.439.6
New Plymouth39721.920.547.1
Wanganui32914.215.032.1
Palmerston North40921.128.555.4
Wellington (Main) Urban Area1,27076.4163.2271.4
Upper Hutt Valley Zone1357.66.617.0
Lower Hutt Valley Zone32318.634.963.4
Porirua Basin Valley Zone30419.16.429.9
Wellington City Zone50831.1115.3161.2
Nelson33917.912.634.4
Christchurch1,64595.487.0209.3
Timaru935.65.613.7
Dunedin39823.524.255.7
Invercargill20110.110.629.6
         Total, 17 Main Urban Areas13 157745.7848.51,794.8

Table 20.13. ANALYSIS OF BUILDING PERMITS AND AUTHORISATIONS 1984-85

Type of BuildingProducer EnterprisesFinancial IntermediariesGeneral GovernmentPrivate Non-profit OrganisationsRest of World and HouseholdsTotal

* Includes alterations and additions.

† Includes ancillary building.

‡ Rest of world only.

 $(000)*
Houses and flats50,2953779,3839,0941,448,5241,517,671
Hostels and boardinghouses2,607-6,8753,600-13,081
Hotels, motels, etc.49,477-76307-49,860
Hospitals and nursing homes9,5501,18032,4382,729-45,897
Education buildings639-69,53814,712-84,889
Social, cultural, and recreational17,181-14,86137,752-69,794
Shops, restaurants, taverns101,3496,954904323-109,531
Office and administrative203,76497,22442,7163,707271347,683
Warehouses97,7819981,095359-100,233
Factories, powerhouses, etc.274,25778424,303794-300,138
Farm buildings74,294-1,387219-75,900
Miscellaneous3,8902,3632,310401-8,964
                 All buildings885,084109,881205,88673,9971,448,7952,723,643

The high proportion of the total value of building permits represented by houses and flats built by the private sector (“Households”) highlights the importance of private investment in residential buildings as a key to stability in the building industry. The total for houses and flats during 1984-85 includes

21 782 permits or authorisations to a total value of $1,187.7 million for new dwellings. This includes authorisations by the Central Government for 532 new houses (value $27.2 million) and 292 new flats (value $14,4 million).

Compared with the previous year, in 1984-85 the value of permits and authorisations for houses and flats made up a higher percentage of the total (55.7 percent as compared with 60.3 percent).

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 of 'Social, cultural, recreational buildings' includes churches, halls, theatres, cinemas, clubrooms, community centres, and grandstands.

The average permit value for new houses and flats in 1984-85 was $54,525, compared with $51,214 in 1983-84, $49,695 in 1982-83, $44,739 in 1981-82 and $36,072 in 1980-81.

Table 20.14. NUMBER AND VALUE OF PERMITS FOR NEW FLATS AND HOUSES

Year Ended 31 MarchNew HousesNew FlatsTotal Dwelling Permits*Total Permits All Buildings*
Dwelling UnitsValueAreaDwelling UnitsValueArea

* Includes the value of permits for alterations and additions.

 No.$(m)sq metres (000)No.$(m)sq metres (000)$(m)$(m)
198111,108424.91 518.73,33496.1334.4720.81,356.1
198213,996669.91 980.05,0101804508.11,119.92,001.8
198311,854628.61 616.34,145166.5396.71,089.12,000.0
198415,488843.12 080.64,738192.7450.81,366.32,265.2
198515,664905.42 079.06,118282.2607.41,517.72,723.6

Work put in place. The Department of Statistics makes a quarterly 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, especially in times of relatively rapid inflation.

Table 20.15a. WORK PUT IN PLACE

Year Ended 31 MarchDwellings
New Houses and FlatsAlterations and AdditionsTotal
GovernmentOtherTotal
 $(million)
198133.8490.3524.1204.4728.5
198220.8697.7718.5258.4976.9
198325.3782.9808.3304.41,112.7
198422.1x899.8x921.9x326.9x1,248.7x
198538.21,092.21,130.4342.51,472.9

Table 20.15b. WORK PUT IN PLACE—continued

Year Ended 31 MarchOther Buildings*Grand Total
Hotels, Boarding housesHospitalsFactoriesCommercial BuildingsSchoolsMiscellaneous#x2021;Total

* Includes alterations and additions.

† And ancillary buildings.

‡ Includes churches and sports entertainment buildings

 $(million)
198141.847.1155.6274.572.4114.0705.41,433.9
198259.445.8218.8360.377.3142.7904.21,881.2
198367.243.0274.5399.372.5138.3994.72,107.4
198461.239.2323.7413.567.6158.71,063.92,312.6x
198569.846.1329.0527.571.7169.91,213.92,686.8

Table 20.16. BUILDING MATERIAL PRODUCTION

ItemUnit1982198319841985
Ready-mixed concretecu metres (000)1 222x1 297x1 490x1,618
Paint and varnish—
    Paints (not water) and enamels, lacquers, varnishes, and reaction clearslitres (000)18,92118,13121,03020,038
    Water paints, including aqueous emulsionslitres (000)11,63911,42512,36113,033
Fibre boardtonnes (000)83.886.699.5x100.4
Sawn timbercu metres (000)2 270x2 136x2 096x2,306
Particle boardcu metres142,630148,967179,925179,374
Plywoodcu metres58,97347,17752,99659,758
Cementtonnes (000)781760823863

Building Industry Advisory Council. The functions of the Building Industry Advisory Council are: (a) to give advise to Government through the Minister of Works and Development on matters affecting the building and construction industries; (b) to maintain an overall and continuing review of the industries; and (c) to give advice to the industries on the likely effects of building trends. The membership of the council consists of 9 representatives from sectors of the industries, namely building and civil engineering contractors, architects, professional engineers, workers, and suppliers, plus 1 representative from the 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.

Building Performance Guarantee Corporation. The Building Performance Guarantee Corporation was established in 1978 to offer an insurance scheme designed to protect the buyers of new homes against the consequences of poor workmanship, the use of inferior building materials, the bankruptcy of the builder, or other failures to complete a house in accordance with the contract.

20.4 Census of building and construction 1978-79

The fourth 5-yearly Census of Building and Construction was taken for the year 1978-79, and was the first fully integrated economic census covering the activities of establishments and ancillary units predominantly engaged in that activity. It excluded the activities of owner-builders and labour-only contractors to the building and construction industries, as well as the building activities of electric power boards. All activities from production to the point at which the goods or services are sold were within the scope of the census, which was for the year ended 31 March 1979 or the last accounting year prior to 31 March. The census formed part of the department's 5-yearly series of integrated economic censuses and for this reason any comparisons with the Censuses of Building and Construction prior to 1978-79 should be treated with caution.

In 1978-79, the building and construction industries were reclassified under the New Zealand Standard Industrial Classification as follows:

Buildings, residential and non-residential.

Construction, other than buildings.

Services to building and construction.

The statistical tables which follow give summaries of these 3 divisions. The definitions used in these tables are given in the Glossary.

Table 20.17. CENSUS OF BUILDING AND CONSTRUCTION 1978-79: GENERAL SUMMARY

ItemUnitTotal
EstablishmentsNo.10,754
Ancillary unitsNo.52
Total persons engaged at 15 April 1979No.73,217
Salaries and wages paid (excluding working proprietors' remuneration)$(000)545,993
Depreciation$(000)41,031
Purchases and other expenses$(000)1,895,241
Turnover$(000)2,667,143
Value added$(000)794,833
Capital expenditure less disposals$(000)106,266

Table 20.18. CENSUS OF BUILDING AND CONSTRUCTION 1978-79 OPERATING UNITS—SALARIES AND WAGES

IndustryOperating UnitsTotal Persons Engaged at 15 April 1979Salaries and Wages Paid
EstablishmentsAncillary Units
 No.No.No.$(000)
Buildings, residential2,94179,74049,660
Buildings, non-residential7741617,912176,666
Construction, other than building1,2732423,248192,667
Bricklaying284-7502,783
Concrete blocklaying117-3241,526
Other stone work17-86401
Concrete work127-4162,041
Solid plastering158-4341,790
Fibrous plastering68-3762,717
Job carpentry390-8282,796
Glazing58-175921
Roofing, tile56-2391,475
Roofing, metal64-3812,517
Roofing, fabric10-102852
Electrical1,03524,16924,007
Plumbing and drainlaying1,37815,39528,298
Heating and air-conditioning108-1,26710,007
Painting and paperhanging1,134-4,05921,786
Flooring198-6112,641
Insulating39-2191,504
Demolition work25-104712
Scaffold erection22-2912,293
Structural steel erection18-1481,516
Reinforced steel bending and placing17-68578
Other services to building and construction44321,87513,840
    Total, building and construction industries10 7545273 217545,993

Table 20.19. CENSUS OF BUILDING AND CONSTRUCTION 1978-79 OPERATING EXPENSES

IndustryDepreciationPurchases and Other ExpensesTurnoverValue AddedCapital Expenditure Less Disposals
 $(000)
Buildings, residential4,011343,565445,461101,8294,652
Buildings, non-residential4,569697,805900,445212,09631,369
Construction, other than building22,768516,138766,647259,31255,278
Bricklaying2558,02114,2756,336353
Concrete blocklaying984,3347,2523,012130
Other stone work321,3722,08181930
Concrete work3716,0289,9923,970604
Solid plastering1182,6836,4263,768187
Fibrous plastering764,1347,8773,779110
Job carpentry31513,12020,4097,068577
Glazing952,7024,4301,812187
Roofing, tile1169,85912,3012,653134
Roofing, metal15110,64714,5843,990134
Roofing, fabric392,1073,1821,10843
Electrical1,47261,489102,33541,3392,021
Plumbing and drainlaying2,65281,702132,75351,7783,992
Heating and air-conditioning34829,18942,13513,499409
Painting and paperhanging1,20426,52063,98138,0012,199
Flooring2956,37912,2065,996473
Insulating903,4005,6752,366128
Demolition work2251,4002,8701,528340
Scaffold erection1561,8534,9533,141207
Structural steel erection962,8535,2622,425105
Reinforced steel bending and placing375201,23172812
Other services to building and construction1,44157,42078,38022,4772,594
    Total, building and construction industries41,0311,895,2412,667,143794,833106,266

Table 20.20. CENSUS OF BUILDING AND CONSTRUCTION 1978-79 REGIONAL SUMMARY

Statistical AreaOperating UnitsPersons Engaged At Mid-AprilSalaries and Wages Paid During Year
EstablishmentsAncillaries
 No.No.No.$(000)
Northland313-2,44715,142
Central Auckland2,6601016,709128,544
South Auckland-Bay of Plenty1,627511,30284,154
East Coast14021,0426,706
Hawke's Bay49213,22921,581
Taranaki41832,74622,841
Wellington2,1232015,587121,100
                 North Island total7 7734153 062400,068
Marlborough146-6984,097
Nelson280-1,72611,821
Westland89-7034,623
Canterbury1,22759,17671,780
Otago81545,76540,374
Southland42422,08713,230
                 South Island total2 9811120 155145,925
                 New Zealand total10 7545273 217545,993

Table 20.21. CENSUS OF BUILDING AND CONSTRUCTION 1978-79 REGIONAL SUMMARY OF FINANCIAL STATISTICS

Statistical AreaDepreciationPurchases and Other ExpensesTurnoverValue AddedCapital Expenditure Less Disposals
 $(000)
Northland1,29354,78773,23921,1702,990
Central Auckland9,591446,643635,702189,02420,159
South Auckland-Bay of Plenty6,480252,454366,989122,73518,092
East Coast41021,00429,41110,1641,273
Hawke's Bay1,55082,486115,84931,7373,928
Taranaki3,02268,052102,49434,0502,468
Wellington7,762483,636643,179173,50922,319
                 North Island total30,1081,409,0621,966,863582,38871,230
Marlborough44710,48816,8586,515907
Nelson95834,28551,08717,2742,186
Westland58615,25221,5136,5762,343
Canterbury4,196245,757349,60598,60416,928
Otago3,302129,200187,30860,2639,115
Southland1,43351,19673,90823,2113,557
                 South Island total10,923486,178700,280212,44535,036
                 New Zealand total41,0311,895,241 2,667,143794,833106,266

Table 20.22. CENSUS OF BUILDING AND CONSTRUCTION 1978-79 ANALYSIS OF TURNOVER

ItemTurnover
 $(000)
Building and construction sales—
    Repairs and maintenance359,225
    Construction of new buildings1,263,389
    Construction, other than buildings945,532
Hire of plant46,238
                 Total sales2,614,384
Other income47,961
                 Total sales and other income2,662,345
Capital work done by own employees4,797
                 Total turnover2,667,143

Further information

Housing

Census of Population and Dwellings 1981, Volumes and Bulletins—Department of Statistics.

The Demand for Housing in New Zealand, Vol 1 and 2, 1979—National Housing Commission.

Housing Corporation of New Zealand Annual Accounts and Statistics—National Housing Commission.

Housing in New Zealand, 1983—National Housing Commission.

Housing Preferences in New Zealand, 1979—National Housing Commission.

New Zealand's Housing Requirements, 1976-86, 1976—National Housing Commission.

Report of the Housing Corporation of New Zealand (Parl. paper B. 13).

Report of the National Housing Commission (Parl. paper G. 30).

Housing costs and finance

Housing Finance—Seminar Proceedings, 1979—National Housing Commission.

Urban Real Estate Market in New Zealand—Valuation Department.

Report of the Valuation Department (Parl. paper G. 26).

Building and construction industry

Building Activity Bulletin BC/MP/00 (annual)—Department of Statistics.

Building Activity Bulletin BC/QP/00 (quarterly and annual)—Department of Statistics.

Building Statistics (annual)—Department of Statistics.

Census of Building and Construction 1978-79, Volumes and Bulletins—Department of Statistics.

Ministry of Works and Development (Parl. paper D. 1)

Report of the Building Performance Guarantee Corporation (Parl. paper B. 13A).

Chapter 21. 21 Energy

21.1 Energy demand and supply

Demand and supply today

From 1945 until recent years the demand for energy in New Zealand grew on average by 4 percent annually. This was a result of the expansion and diversification of the economy, rising living standards, increasing population, and the falling price of energy in real terms. Energy policies were aimed principally at providing reliable and cheap supplies to keep up with the demand. From late 1973 the emerging energy crisis brought about a new emphasis on conservation.

Table 21.1 illustrates the trends in the consumption of primary energy since 1924. The term “primary energy” refers to energy as it is first obtained from natural resources. Broadly, this means that coal is accounted for as it is mined, oil products as they are imported in various degrees of refinement, and natural gas as it is taken from the wells at Kapuni and Maui. Thirteen percent of our primary oil requirements were derived from Maui and Kapuni condensate in 1981, and in 1982, 20 percent came from the Kapuni and Maui fields. This decreased in 1983 to 17.6 percent from Kapuni and Maui crude oil.

Primary electricity is electricity generated from hydro and geothermal sources. For these, generation efficiencies are ignored, and the measure of the primary energy is the electricity generated. This is justifiable in the case of hydro-electricity, where the generation efficiency is high, but a large quantity of energy is wasted in producing electricity from geothermal heat. However, the wasted energy is low grade, and for the sake of simplicity is not shown in the table.

In a number of tables in this section, energy is measured in petajoules. The joule is the metric unit of energy and makes comparisons among the different forms of energy possible. For convenience, the petajoule (PJ) or 1015 joules is often used.

Table 21.1. TRENDS IN THE CONSUMPTION OF PRIMARY ENERGY

Calendar YearCoalWoodOilNatural GasPrimary ElectricityTotal*Imported Oil as Percentage of Total
ImportedIndigenous

* Because of rounding, totals may differ slightly from sums of individual figures.

† Do not include figures for international transport.

Source: Ministry of Energy.

 Petajoules
192475..10--0.58611
193456..19--37824
194472..30--710928
195466..59--1413942
196466..103--3420351
197462..1938145533258
197947..17518477035749
198054..18416377336451
198156113921467433742
1982462312732816937834
1983P451512132877437432
1984P3615112411157339228

Consumer energy is accounted for in the form and quantity in which it is distributed to the consumer. “Electricity” includes the electricity which is generated in thermal stations burning coal, oil, or natural gas and “gas” includes the small quantity of gas manufactured from coal, naphtha, and natural gasoline.

Table 21.2. TRENDS IN CONSUMER ENERGY CONSUMPTION

Calendar YearSolid*OilGasElectricityTotal

* Includes wood.

Source: Ministry of Energy.

 Petajoules
19245952166
193449192373
1944623028102
19545559216132
19644890230170
197441151758257
1980381581570281
1981511432369286
1982591422676303
1983P491373183300
1984P401394185305

Table 21.3. ENERGY SUPPLY AND DEMAND 1984

Supply and Demand of EnergySource of Energy
Solid FuelOilGasHydro GeothermalElectricityTotal

* Decreases in stock levels appear as negative stock changes. Such decreases in stocks have to be added to indigenous production (+ imports - exports) in order to obtain figures of energy consumed. Increases in stocks have to be deducted from production in order to obtain figures of energy consumed.

† Includes fuel used in gas manufacture, and production of solid fuels such as cones from carbonisation plants, etc.

Source: Ministry of Energy.

 Petajoules
Indigenous production67.3741.48115.1877.14-301.17
Plus Imports1.00142.23---143.23
Less Exports10.613.48---14.09
Less International Transport-20.68---20.68
Stock changes*6.392.400.09--8.88
             Primary energy consumed51.37157.15115.0977.14-400.75
Less used in electricity generation10.140.7547.0977.14-135.12
Less used in liquid fuel production-117.43--0.15117.58
Plus secondary production0.16110.000.95-95.90207.01
             Total energy available41.39148.9768.95-95.75355.06
Less
Consumption by energy sector and losses2.730.763.35-13.2220.06
    Non-energy use-8.1123.74--31.85
             Total consumer energy (calculated)38.66140.1041.86-82.53303.15
             Total consumer energy (observed)38.64110.3441.88-82.49303.35
Energy demand—
    Industry21.4325.4230.00-33.76110.61
    Transport0.08106.784.04-0.13111.03
    Domestic13.560.932.02-32.1748.68
    Commercial and other uses3.577.225.82-16.4433.05

Table 21.4. MARKET SHARES OF ENERGY RESOURCES 1984

SourceIndustry and CommerceTransport (Incl. International Transport)HouseholdsThermal Electricity Generation

Source: Ministry of Energy.

 Percent
Oil22.9896.761.901.30
Coal19.370.0627.8617.49
Gas (natural and manufactured)27.123.084.1581.22
Electricity30.520.1066.09-
                 Total100.00100.00100.00100.00

Oil usage. Until the oil crisis in 1973 and the four-fold increase in the price of oil, there had been a rapid growth in the use of oil in New Zealand. This had been a result of its declining cost in real terms, its versatility, its convenience and the increasing affluence of the population.

In the year ended 31 December 1985, New Zealand used a total of 3 522 000 tonnes of petroleum products. This figure for the internal consumption of petroleum products in 1985, is broken down in Table 21.5.

Table 21.5. INTERNAL CONSUMPTION OF PETROLEUM PRODUCTS

Petroleum Product198319841985

Source: Ministry of Energy.

 Tonnes (000)PercentTonnes (000)PercentTonnes (000)Percent
Light flash distillate naphtha1..----
Premium gasoline1,61350.21,55848.61,48342.2
Regular gasoline642.01474.61263.6
Aviation gasoline170.5180.6190.5
Aviation turbine kerosene1003.11133.53319.4
Kerosene140.4130.4130.4
Light diesel oil88927.792428.91,05429.9
Marine diesel60.280.370.2
Fuel oils (all types)2909.02026.32537.2
Bitumen902.8902.81113.2
Lubricants451.4451.4451.3
White spirits50.250.250.1
Paraffin waxes50.250.250.1
Petroleum coke702.2702.2701.9
                 Total3 210100.03 198100.03 522100.0

1985 was a transitional year for oil imports and production. The Marsden Point refinery was closed from August until almost the end of the year to incorporate expansion components. Accordingly, import figures depart from past trends and are not indicative of future trends. During the year 30 percent of New Zealand's petroleum imports came in as refinery feedstock, and 70 percent as refined products. For the 8 months it was operating, 50 percent of refinery output was petrol, 23 percent diesel, 20 percent oil fuel and 6 percent bitumen.

Oil stockholding. Pursuant to its membership of the International Energy Agency, New Zealand is required to hold 100 days' gross stock cover for oil imports. This is held by the oil industry (at main ports, the refinery, and up-country depots) and the Government (at Electricity Division oil-fired power stations and as a National Strategic Petroleum Reserve of 25 days' diesel cover at the uncommissioned Marsden B power station).

Oil stocks at the main ports are maintained within a Target Planning Zone (TPZ) of efficiency under normal operations, which range from 22-31 days' cover for motor gasoline, 33-41 days' cover for automotive diesel, and 95-162 days for aviation gasoline.

Gasfields. New Zealand currently has 4 gas fields in production. These are the Kapuni field which has been producing since 1970; the Maui field (the largest of the 4) which has been in production since 1979; and the McKee and Kaimire fields which both began production in 1984.

Maui gas and Kapuni gas is currently being used by the New Plymouth, Huntly and Stratford Power Stations, the methanol plant at Waitara, the ammonia-urea plant at Kapuni and by many domestic and industrial consumers. By mid-1985 it will also be used at the Synthetic Fuels Plant at Motunui where it will be converted into methanol and then into gasoline. Other possible uses and users of the gas are also being considered.

Gas depletion policy. Gas has been allocated to reticulation (including CNG), electricity generation, methanol manufacture, synthetic gasoline production, and ammonia-urea manufacture.

Any further projects based on Maui gas will be chosen on commercial grounds and a decision on which, if any, further projects proceed is expected in early 1985. At this stage commercial bids for the available gas are expected for electricity generation, further gasoline production and reticulation, gas liquids extraction and downstream processing, and liquefied natural gas (LNG) export.

Organisations for developing gas/condensate resources. On 31 March 1978, the State-owned Petroleum Corporation of New Zealand Ltd (Petrocorp) was formed to take responsibility for the Government's interests in petroleum and natural gas. Present subsidiaries are: Natural Gas Corporation Ltd (NGC), responsible for purchase, transport, and wholesale marketing of natural gas and liquefied petroleum gas (LPG); Offshore Mining Co. Ltd (OMC), responsible for the Government's participation in the Maui field through its 50 percent shareholding in Maui Development Ltd (MDL), which manages the Maui project for extraction and onshore delivery of gas and condensate; Petrochemical Corporation of New Zealand Ltd (Petrochem), which owns the ammonia-urea plant, jointly with Alberta Gas Chemicals Ltd, Petragas Chemicals New Zealand Ltd, which owns the chemical methanol plant; and Petroleum Corporation of New Zealand (Exploration) Ltd (Petrocorp Exploration), which holds the Government's interests in offshore petroleum exploration and also conducts its own onshore exploration programme. Liquigas has been formed to distribute LPG nationally to bulk installations. It consists of 6 participants: Rockgas, NZIG, Offshore Mining Company, Shell, BP, and Todd Petroleum.

Energy planning for the future

Until late 1973 there seemed to be little difficulty in meeting the expanding demand for energy from a combination of indigenous resources and imported petroleum, although New Zealand had been steadily moving into a position of increased dependence on imported fuel. The oil supply embargo announced in October 1973 by the Organisation of Arab Petroleum Exporting Countries sounded a clear warning of the danger this entailed. As well as dramatically illustrating the fact that oil was no longer a reliable form of energy in terms of supply, the four-fold price increases that followed the lifting of the embargo meant that oil was no longer a cheap commodity.

New Zealand's oil import bill rose from $114 million in 1973 to $1,684.9 million in 1983, and is now 5 percent of the gross national product.

The rising cost of imported petroleum, coupled with uncertainty about the reliability of future supplies, has made it necessary for New Zealand to adopt policies aimed at reducing petroleum consumption and decreasing its dependence on imported energy. This is being achieved on several broad fronts: by oil and gas exploration; by accelerating the development of all indigenous energy resources, especially those that can substitute for petroleum; by developing and promoting energy conservation programmes; and by expansion of refining facilities to diversify sources of imported oil. Supporting these strategies is a research and development effort which is spearheaded by the New Zealand Energy Research and Development Committee (NZERDC) established in 1974, and the Liquid Fuels Trust Board, established in 1978. In the international sphere, New Zealand, as a member of the International Energy Agency (IEA), is committed to a policy consistent with sound economic and social planning to reduce dependence on imported oil.

Ministry of Energy. Even before the outbreak of the oil crisis, concern had been felt about the lack of co-ordination in New Zealand's energy policy-making. This concern led to the formation of the Ministry of Energy Resources in 1972.

A further development in the co-ordination of energy policy took place in May 1977 when the Government announced that the Ministry of Energy Resources, the New Zealand Electricity Department, and the Mines Department were to be merged into a single department responsible for all energy policy, planning, and operations. The new Ministry of Energy came into being on 1 April 1978.

The ministry's principal function is the formulation, implementation, co-ordination, and continuing review of effective and efficient energy policies for New Zealand. It achieves this through an organisation consisting of a central planning/policy group and 3 operating divisions for electricity (Electricity Division), coal production and supply (Mines Division), and oil and gas (Oil and Gas Division).

Annual energy plan. Since 1980 the Ministry of Energy has prepared an overall energy plan which co-ordinates the plans of the divisions and relates these to the energy sector as a whole. The plan presents forecasts and developments for liquid fuels, electricity, gas, coal and conservation sectors. Development of the energy plan is co-ordinated by the Planning Division of the Ministry, with consultation with appropriate private sector, local body, and government agency interests. Public input into the energy plan is made both through the Energy Advisory Committee and directly to the Ministry of Energy.

Public participation in planning and Energy Advisory Committee. To provide a basis for continued public involvement in energy planning, the Energy Advisory Committee was established in 1980. The prime role of the committee is to review each annual Energy Plan and make recommendations for future planning based on submissions from the public. This provides public input into the energy planning process.

The committee has the following terms of reference:

  1. To examine the current process of forecasting and planning energy supply and demand;

  2. To assess the social, environmental, economic, and technical implications of current energy planning;

  3. To collect relevant opinion from the wider public through submission and representation;

  4. To advise the Secretary of Energy on these matters and to subsequently make these findings public;

  5. To carry out other such investigations as the Secretary of Energy may from time to time agree.

It consists of 12 members who are selected as representatives of consumers, environmental and social interests, and professional and academic interests.

Indigenous energy resource development policies. There are 2 main goals to planning of future energy supplies:

  1. The promotion of the development of indigenous energy resources both to contribute to national energy supply and to produce export-led economic growth;

  2. The reduction of New Zealand's dependence on imported oil by the steady introduction of substitutes selected to minimise increases in the cost of energy supply and use.

One of the main sectors where this policy is being implemented is the development of natural gas. The use of CNG as a vehicle fuel and the conversion of Maui gas to gasoline will displace imported oil and, along with coal, reticulated gas will provide an increasing proportion of industrial heat. These developments, together with increased condensate supplies resulting from the higher gas offtakes, should make New Zealand 50 percent self-sufficient in liquid fuels by 1987.

The policy is also being pursued in the coal sector, with plans to more than double New Zealand's coal production by 1996. Most of the new production in the South Island will go to exports, and in the North Island to electricity generation and steel manufacture.

Energy resources

The oil and gas estimated reserves include the Maui, Kapuni, and McKee fields. As can be seen, the major resources deficiency is in liquid petroleum fuels, and the country will continue to be a net petroleum importer. It will, however, become relatively less dependent on imports for a decade or so as natural gas is brought into greater use.

Table 21.6. ESTIMATED RECOVERABLE FOSSIL FUEL RESOURCES AS AT 1 APRIL 1984

FuelReserves

Source: Ministry of Energy.

CoalMeasured 300 million tonnes
 Indicated 5 800 million tonnes
 Inferred 300 million tonnes
         Total6 400 million tonnes (86 000 PJ)
OilProven and probable reserves with a 90 percent probability level: 20 million tonnes
 (900 PJ)
GasProven and probable reserves with a 90 percent probability level: 155 000 million M3
 (5 800 PJ)

The geothermal resource as it is known at present is restricted geographically to the thermal belt which extends from Mt. Ruapehu to White Island, Tauranga, and Northland.

Geothermal energy is used for electricity generation; process heat in industry; for industrial, commercial, and domestic space heating; and hot water heating.

Petroleum demand restraint regulations. During the oil shocks of the 1970s the Government used the Economic Stabilisation Act 1948 to implement a number of petroleum demand restraint measures.

Because of continuing instability in the world's oil markets and the necessity to have on the shelf contingency plans to deal with possible future disruptions to oil supplies Parliament agreed on the need for a separate Act to cover all petroleum demand restraint regulations and passed the Petroleum Demand Restraint Act 1981. The Act makes provision for the imposition of measures restraining the demand for petroleum products and ensuring equitable distribution of petroleum products that are, or likely to be, in short supply. The Minister of Energy must consult representatives of suppliers and users of petroleum products before giving directions under the Act.

The contingency plans include restricted periods of sale of petrol, odd and even purchasing days, maximum and minimum amounts for each transaction, restricted sales into containers, carless days, motor spirits rationing, and the allocation of other petroleum products.

New Zealand is a full member of the International Energy Agency and in terms of the International Energy Agreement Act 1976 the Government may amongst other things participate in oil sharing with other member countries of the IEA during international disruptions to oil supplies.

Geothermal development. A geothermal resource policy review is underway, to consider the preservation of some areas of geothermal resource, and the implementation of an effective management system to cope with conflicting demands on geothermal areas. This is especially noteable in Rotorua where there is widespread use of geothermal steam for energy purposes, but where the maintenance of surface activity for the benefit of tourism is also important.

By far the largest user of geothermal energy is the Electricity Division of the Ministry of Energy, which owns and operates the Wairakei power station, generating approximately 1000 GWh of electricity per year.

A second geothermal power station, Ohaaki, is under construction on the Broadlands field—with an estimated capacity of 860 GWh of electricity per year.

The Tasman Pulp and Paper Company at Kawerau is also a major user of steam. Other users include Zanpro Lucerne Company, which is producing dried lucerne pellets at Broadlands; Geothermal Greenhouses at Kawerau; and a number of smaller industrial, commercial and domestic users situated mainly in Rotorua and Taupo.

Ngawha field investigations have been postponed indefinitely, but the Mokai field which has high enthalpy fluids and high temperatures looks promising. Investigations are underway into the technical and economic feasibility of installing and operating small turbines of 2 to 15 MW to use steam from the Tauhara, Ngawha and Mokai fields.

Energy management

Energy management is defined as the more effective use of energy through reduction of waste and implementation of more efficient means of energy production and use by:

  1. Improving the efficiency of energy supply systems;

  2. Improving the efficiency of final demand systems without amenity loss;

  3. Decreasing the energy intensiveness of a given standard of living through acceptable and voluntary lifestyle changes;

  4. Encouraging the more appropriate matching of energy supply to energy use.

The following strategies are being employed:

  1. Pricing policy and energy taxes;

  2. Loans;

  3. Regulations and legislative measures;

  4. Information programmes;

  5. Technology development.

Major policy measures either under development or in place for the major sectors include the following—

Energy strategy development—In the past energy management has been viewed as a demand concept. Recent studies suggest that it is more appropriate to treat energy management as a supply resource that can be tapped to meet forecast demand for energy. A pilot project is developing supply curves for the domestic sector.

Transport.Sales tax on new cars—As from December 1984, the sales tax on new cars of up to 1350cc engine size is 30 percent and for all others, 33 percent. This replaces a sliding tax scale introduced in 1974, which rose to 60 percent for cars over 2700cc. The changes announced by the Government result from a major motor industry review carried out by the Industries Development Commission.

Petrol consumption labelling of new cars—Since 1 March 1983, most New Zealand assembled new cars are being tested to determine their petrol consumption. Two figures are obtained, representing urban and 80 km/h driving. The figures can be used to compare the petrol consumption of different makes and models and are designed to encourage new car buyers to purchase fuel efficient cars. The results are published in a biannual Petrol Consumption Guide as well as major New Zealand motoring magazines. They are also listed on labels attached to each new car tested at dealers showrooms. A review of the schemes operation is currently under way.

Testing of petrol saving devices—A programme was established in 1980 to test devices which are claimed to produce fuel economy benefits when fitted to motor vehicles. The programme is in 2 sections. Firstly, the Department of Scientific and Industrial Research conducts an engineering appraisal to ensure that the device is based on sound engineering principles and has the potential to reduce petrol consumption of motor vehicles. If the above criteria are met, the device then goes to the Automobile Association Auckland (AAA) for testing in a vehicle. So far 28 devices have been submitted for testing, 9 of which have been rejected by the DSIR, and 1 out of 9 tested by the AAA showed fuel consumption savings of 4 percent. The Auckland AA is still testing 1 device.

Community based petrol economy programmes—A prototype programme, held in Tauranga, to encourage motorists to practise known fuel-economy driving techniques, is being evaluated. Depending on results the method will be extended to other centres.

Fuel conservation in the heavy transport industry—A fuel management package for the road transport industry, entitled “The Professionals” was launched in October 1984. It is being marketed to heavy transport operators throughout the country. The package consists of a series of manuals and videos demonstrating fuel efficient management and driving techniques. The drivers part of the programme is designed to fit into a driver training scheme already operated by the Road Transport Industry Training Board. The drivers programme was trialed in 1984 and participating operators achieved on average 8 percent fuel savings.

Petrol conservation in fleets—The Ministry of Energy and AAA are jointly developing Fleetsave, a fleet management programme based on fuel efficiency and reduced lifecycle costs for light vehicle fleets.

Diesel use in fishing—The Fishing Industry Board administers a comprehensive fuel monitoring and fuel conservation education programme for fishing crews, co-funded by the Ministry of Energy.

Tractor economy programme—Since June 1984, a series of on-farm demonstrations have been held to show farmers how to select, operate and maintain their tractors and implements for maximum efficiency. The programme, called Tractor Facts, incorporates research undertaken by the New Zealand Agricultural Engineering Institute and the Ministry of Agriculture and Fisheries. Tractor Facts includes a video and manual which will be sold at more than 50 field days from 1986 to 1989.

Industry and commerce.Loans scheme for energy conservation—This scheme, which replaced the tax incentive scheme for energy conservation and use on 1 April 1982, is designed to encourage businesses, non-tax paying organisations and individuals to undertake capital expenditure on energy conservation and the use of indigenous energy resources. Loans at 10 percent are provided by the Development Finance Corporation on behalf of the Ministry of Energy for projects with expenditures between $5,000 and $500,000.

Details are given in Energy Conservation Brochure which is available from the Ministry of Energy.

Energy Advisory Service (EAS)—This service was set up within the Ministry of Works and Development in 1976, and provides expert engineering advice on all aspects of energy conservation. It was originally a totally free service but its operations basis was changed in 1982. The EAS now provides an initial on-site service, free of charge, culminating in a brief written report. Part of this report can outline further or more detailed work which may be necessary to identify specific costs and benefits of any suggested energy conservation measures. The detailed work can also be carried out by the EAS at an appropriate charge-out rate.

Publicity—The Energy Conservation Loans Scheme has been widely publicised. Speakers are provided for in-house and business groups. A range of pamphlets is available including a tabloid, Energy Conservation News and Conservation Planning—A Background Report to the 1983 Energy Plan.

Education: Energy Education Programme—In 1979 the Ministry of Energy and Department of Education jointly commenced a curriculum development programme to provide energy education relevant to primary and secondary schools.

Households: interest-free loans for home insulation—This scheme commenced in May 1975 and applied to all housing. On 1 April 1978 insulation in new homes became mandatory. The scheme was withdrawn on 31 December 1982. Approximately 133 250 loans were issued.

Interdepartmental Committee on Heating of Public Buildings (ICHPB)—This committee decides which fuels are to be used in public buildings (defined as receiving a Government subsidy of 50 percent of the capital cost, or $150,000 when the capital cost exceeds $300,000). The Government has authorised ICHPB to include energy conservation in its brief. Applicants must now conduct an initial survey to identify and list energy conservation opportunities, which are given detailed cost/benefit appraisals if the committee regards them as being promising.

Government buildings—Energy consumption in government sector buildings is about 12 PJ per annum, costing about $150 million per annum. Between 25 to 50 percent of this can be eliminated by improving energy efficiency in government buildings, eliminating energy waste, and improving energy-related decision-making within departments.

The Government Buildings Energy Management Programme is being developed to reduce energy use by some 6 PJ per annum, with resultant cost savings to Government.

Interest-free loans for domestic solar water heaters—Introduced in 1978, the scheme provides loans up to $500 repayable over 4 years.

Energy labelling of household appliances—Standards have been established for labelling. An energy-related standard is being developed for horizontal water heaters. A voluntary standard for refrigerators has been distributed. Research is currently being carried out to decide whether New Zealand should introduce a labelling scheme for household electrical appliances.

Insulation of Government-owned housing—A programme to insulate ceilings was introduced in 1978 and is substantially completed.

Cogeneration—Cogeneration is the simultaneous production of electricity and useful heat using a single fuel input. Two main systems are used, depending on the electricity to heat ratio required. Where more steam than electricity is needed, high pressure steam is generally produced and fed through a steam turbine electricity generator, before going on to be used in the production process. On the other hand, where more electricity than steam is needed, or where excess electricity produced can be sold back to the local supply authority, a gas engine or turbine is generally used to drive an electricity generator, with the exhaust heat used in the production process via a heat exchanger.

Work is currently being carried out on a series of proposals which will be designed to remove or reduce financial and institutional impediments currently resulting in a less than optimal level of cogeneration taking place.

Building and Solar Energy Service (BASES)—This is a 5-year programme to promote energy efficiency techniques and passive solar design, and educate supply and demand sectors for the building market in their use. The service provides information relevant to New Zealand conditions, professional advice, demonstrations and educational programmes, and test results. The booklet How to Heat Your Home and a set of architectural design manuals Design for the Sun are available from the Ministry of Energy.

Local authority energy projects—Technical assistance has been provided to the Blenheim Borough Council resulting in the Solar Heights Development being planned on low energy principles and incorporated in the District Scheme under Residential/Special Zone and Residential 2 (Solar) Zone.

Standards—Under the special programme for the development of energy-related standards announced in the 1978 Budget, standards have been published covering the use of LPG and CNG fuels in internal combustion engines, the storage and location of equipment at CNG refuelling stations, and methods of testing the petrol consumption of passenger cars.

Basically, the New Zealand standard (NZS 54-22) for the use of LPG and CNG in internal combustion engines has been incorporated by the Government into the new regulations, i.e., Traffic Regulations 1976, Amendment No. 7, 1981/311. The CNG refuelling station standard is widely accepted as the basis for setting up these stations.

Standards are in operation for compressors for CNG refuelling stations, metering of CNG, thermal insulating materials for buildings, and equipment for determining the carbon monoxide and hydrocarbons concentrations in vehicle exhausts.

Work is proceeding on standards for the energy consumption labelling of household appliances, and for solid fuel space heaters covering such aspects as efficiency, safety, pollution, and robustness. As soon as a study on hot-water cylinders with insulation of differing types and thickness is completed, a review of the standard for the cylinders, particularly the standing losses, will begin. Work is also progressing on a review of the insulation standard for domestic housing.

Alternative transport fuels—The Government is continuing to actively encourage the alternative fuel programme with grants, loans, information publicity and support.

Incentives in the way of grants and loans have been specifically directed to provide CNG and LPG refuelling facilities in the North Island in areas where the network is incomplete. In the South Island where CNG is not available all LPG refuelling stations qualify for a grant and can qualify for loan assistance.

The Government has taken steps to improve the quality of vehicle conversions and from 1 March 1985 only those installers which are registered and give a guarantee for performance are able to participate in the Alternative Fuel Vehicle Conversion Loan Scheme. At January 1986 more than 100 000 vehicles had been converted to CNG and 40 000 to LPG. There were 336 public CNG stations in operation and more than 30 under development and 443 public LPG stations in operation.

Energy research and development—New Zealand is able to obtain the results of much overseas energy research work through its international scientific contacts and its membership of the International Energy Agency (IEA). Many of this country's energy problems are, however, unique and can only be solved by our own efforts.

New Zealand has a varied energy research programme with work on a wide range of topics being conducted in government departments, and by universities, private companies, and individuals. About $14.8 million was spent on energy research, development and demonstration projects in 1983-84. Of this, $13.2 million was provided by the Government. Coal research is coming in for particular attention at the moment. The bituminous and sub-bituminous coal deposits of the West Coast and Waikato districts and the lignite fields of Southland and Otago are all being extensively studied, the work on the lignite fields funded by the Liquid Fuels Trust Board being the most comprehensive and costly of these investigations. Other significant programmes include continuing research on CNG and studies of a range of other alternative fuels including everything from methanol to tallow esters, work on a number of approaches to energy conservation such as passive solar technology and the cogeneration of useful heat and electricity, demonstrations of techniques for more efficiently using energy, further research on our geothermal resources and studies of ways in which the New Zealand energy supply system interacts with the wider economy and society.

New Zealand Energy Research and Development Committee. The New Zealand Energy Research and Development Committee (NZERDC) was formed in 1974. It funds energy research in universities, research associations, and the private sector. The Chairman is Prof. R. F. Meyer.

The committee receives a Government grant ($1.39 million in 1984-85) which forms part of the overall budget of the ministry of Energy. However, the ministry has only 1 representative on the committee, which usually consists of 9 members in all. The DSIR also has a permanent representative but the other members are drawn from a wide variety of backgrounds.

From its inception, until 31 March 1985, the committee's expenditure totalled $10.15 million. It has published about 200 reports, and in early 1985 had some 40 current contracts with researchers. Recent reports include the results of such studies as the social and economic effects of a disruption to New Zealand's energy supplies, the effects of varying gas composition on the performance of CNG-fuelled vehicles, the availability of historical statistics on energy use in the manufacturing sector, fluid bed combustion research and development, a regional study of land suitability and availability for energy farming, and the production of a handbook on energy data and conversion factors.

Liquid Fuels Trust Board. The LFTB was formed in 1978, and is funded by a 0.1 cent per litre levy on petrol sales. Its purpose is to promote, finance or otherwise undertake any activity that has as its purpose the reduction of the use of imported fuels for transport purposes in New Zealand. It is active in a number of areas.

Most of the board's expenditure is used to investigate potential uses of the South Island's lignite deposits, which are one of New Zealand's major energy resources.

In the biomass area, the board sees as promising the possibility of producing a diesel substitute from inedible tallow. The tallow would first need to be converted to an organic salt or ester to improve its qualities as a fuel, and would probably then be blended with diesel fuel if it came into everyday use.

The board has just commenced a major study on the options for converting Chatham Island's peat into an acceptable crude feedstock for supply to the Marsden Point refinery.

The utilisation of natural gas is in the implementation phase now and the board's involvement in this area has largely wound down as a consequence. However, it is still prepared to undertake ad hoc studies on matters that arise from time to time.

As well as the development of alternative fuels the board is investigating ways in which they may be more effectively utilised (e.g., by engine modifications) and in identifying possible impediments to their distribution and commercial use. The board is thus actively studying the factors related in introducing methanol as a transport fuel.

In the year ended 31 March 1984 the board's programme expenditure totalled $1,188,000.

Policies for energy use

Consumer energy is provided by oil (50 percent), electricity (25 percent), coal (13 percent), and gas (12 percent).

The largest end-use sector is industry (35 percent), followed by transport (32 percent), commerce/agriculture (20 percent) and domestic (13 percent). Energy policies aim to promote energy conservation, encourage the use of renewable resources, achieve an adequate level of security of energy supply, and promote the use of indigenous rather than imported energy sources.

These goals are pursued in the demand sector by pricing and incentive schemes. Expansion of the Marsden Point oil refinery is now under way and scheduled to be operational by mid-1986. This will increase the refinery's throughput, and in particular increase production of diesel and aviation turbine fuel. With the recent decision to shelve plans for a new aluminium smelter the demand for new power stations has eased, and potential supply problems in the mid-1980s are no longer expected.

21.2 Electricity

Since early this century New Zealand's lakes and rivers have provided the raw materials for a systematic programme of hydro-electric development.

During the year ended 31 March 1984, hydro energy produced 78 percent of the nation's electricity. A further 4 percent came from geothermal steam, and the balance from fossil fuels: coal, oil, and natural gas.

Wairakei Power Station is the country's only geothermal station. At Meremere, near Auckland, coal is burnt to produce steam, while at Marsden Point (Marsden A Power Station), heavy oil is used. A large dual-fuel steam station at New Plymouth relies on natural gas (with some heavy oil) and a coal-natural gas installation is being commissioned at Huntly. Gas turbines are used to generate electricity at Otahuhu (diesel oil and natural gas fuel), Stratford (natural gas), and Whirinaki (diesel oil).

Historical development

Electricity supply in New Zealand was pioneered by local bodies and private enterprise. Reefton had hydro-electric supply as early as 1888. In the following year Wellington 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 in 1914 at Lake Coleridge, and its capacity was increased in 4 stages up until 1930. In the North Island, the Government purchased in 1919 the Waihi Goldmining Company's plant at Horahora, on the Waikato River. By 1927 this had been enlarged and was supplying power as far north as Henderson and Takapuna. Horahora operated successfully until flooded by the Karapiro development in 1947.

Other early North Island stations were Mangahao, near Shannon (opened 1924) and Arapuni (1929). Also in 1929 the first of the series of Waikaremoana stations was commissioned. This plant, Tuai, was followed during the war by Piripaua, and in 1948 by Kaitawa.

Between 1920 and 1930 the number of consumers in New Zealand increased four-fold, and the capacity of the Government generating system was uprated by 135 590 kW. In the early 1920s steam stations were still producing about 60 percent of all electricity. However, during the decade they were gradually relegated to standby stations, and by 1930 produced only 1 percent of the national total.

The 1930s were lean times for capital-intensive developments and the only new project was the Waitaki scheme (1930). Two small hydro stations were acquired by the Government, one at Arnold, from the Grey Electric Power Board, and the other at Monowai, from the Southland Electric Power Board. Along with Monowai the Government took over responsibility for distribution in Southland and to this day supplies the Southland areas as the Southland Electric Power Supply. Development plans were further disrupted by the Second World War, but some stations were built and some existing ones extended. New stations included Cobb in north-west Nelson, Highbank in Canterbury, and the second Waikaremoana Station at Piripaua. At Lake Taupo, gates were built in 1941 to control the outflow of water. After the war, plans were pushed ahead for the development of the Waikato River, the North Island's main potential power source. Karapiro was opened in 1947 and in 1952 Maraetai, the largest station on the river, began producing electricity. Maraetai's capacity was doubled when 5 new turbines were commissioned in 1970-71. Although yearly output did not increase, much useful peak-time capacity was added. Other stations followed Maraetai. The third station of the Waikaremoana scheme (Kaitawa) was commissioned in 1948. Whakamaru was commissioned in 1956, followed by Atiamuri (1958), Ohakuri and Waipapa (1961) and Aratiatia (1964).

In the South Island, similarly large projects were under way. Waitaki was enlarged and new control systems at Lakes Pukaki and Tekapo gave it a more adequate flow of water in winter. Incorporated in the control works at Tekapo was a single-turbine power station which was commissioned in 1951. This has recently become known as Tekapo A. Another major project was completed at Roxburgh, on the Clutha River, in 1956. At the time it was the largest station in the country.

A large chain of Waitaki River stations began with the completion of Benmore in 1966, and Aviemore in 1968. On the Upper Waitaki, Tekapo B was commissioned in 1977, followed by Ohau A (1980), and Ohau B (1983).

The Manapouri scheme, which uses the waters of Lake Manapouri to currently produce 590 MW of electricity, arose out of a 1960 agreement between the Government and Comalco. Statutory authority to make use of land within the Fiordland National Park was conferred in 1963 by the Te Anau - Manapouri Development Act.

A further agreement in 1966 provided for the raising of Lake Manapouri from a natural level of 178 metres above sea level to an operating level of 185-190 metres. However, a strong campaign by conservationists opposed to the raising of the lake led, in 1970, to the institution of a Government-appointed commission of inquiry. The outcome was the construction of a dam at Mararoa which allowed the control of 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 and 202 metres by a dam near its outlet.

Construction at Manapouri was carried out by the Government as a result of a 1969 agreement with Comalco. The scheme was designed to make use of the 177 metres head between Lake Manapouri and the sea. Intakes at the west arm of the lake lead the water via vertical penstocks to the turbines, which are 213 metres underground. From there the water is discharged through a tunnel almost 10 kilometres long into Doubtful Sound at Deep Cove.

In the North Island, most development is centred around the Waikato. However, the Matahina scheme on the Rangitaiki River was completed in 1967, and a major project in the Tongariro area is nearing completion. The Tongariro scheme is a complex development which draws upon the headwaters of various rivers, and diverts part of their flow from one watershed to another.

Water from the headwaters of the Wanganui and some of its tributaries is collected by the western diversions and transferred into Lake Rotoaira. From there, it passes through a 6100 metres tunnel to the power station at Tokaanu and then into Lake Taupo. Tokaanu was the first of the Tongariro scheme stations. It was commissioned in 1974 and has 4, 50 MW generators.

The eastern diversions collect water from the Moawhango River and the eastern slopes of Mount Ruapehu. The water then passes through the Moawhango Tunnel and joins water from the Tongariro River before feeding through Rangipo Power Station (commissioned 1984), to join waters from the western diversions in Lake Rotoaira. Finally, the water is discharged into Lake Taupo via Tokaanu Power Station.

Much restorative planting and landscaping work is being carried out throughout the whole development, as are special measures to preserve fishing and fish spawning grounds in the area.

Thermal generation

New Zealand's first Government-built thermal plant began operating at Meremere in 1958. It burns coal, most of which is carried by aerial cableway from the Maramarua opencast mines. The remainder comes by road and rail from Huntly.

In the same year, New Zealand became only the second country in the world to generate power commercially from geothermal steam. Thirteen turbines were installed at Wairakei, a few kilometres north of Taupo, between 1958 and 1963. Steam is supplied to the station from bores 102, 152, and 203 millimetres in diameter which extend to depths varying from 174 metres to 1220 metres. Late in 1982, 4 generating units were removed from service. At 31 March 1985 the capacity of the station was 157 MW.

Marsden A Power Station, which uses heavy oil from the nearby refinery, first produced electricity in 1967. A year later, 4 natural gas-diesel oil fuelled gas turbines were in operation at Otahuhu and by 1979 that number had risen to 6. Another natural-gas-fuelled gas turbine station was completed at Stratford in 1976.

The 600 MW thermal station at New Plymouth with its 198 metres chimney began generating in 1974, and the last turbine was commissioned early in 1977. Until the Maui gas wells off the Taranaki coast were in production, the energy source was Kapuni natural gas, supplemented by some oil.

At Whirinaki near Napier, a 216 MW diesel-oil-fuelled gas turbine station was completed in 1977 but could not be operated commercially until oil pipeline and storage facilities were completed in 1978.

Thermal projects

The 1000 MW Huntly station is expected to be fully commissioned early in 1986. When it first produced electricity, Huntly was fired by Maui gas, but the Ministry of Energy is opening up a large coal mine nearby which will eventually provide most of the fuel.

The oil-fired intermediate load Marsden B station was completed in 1980, but never commissioned. Present plans are for conversion from oil to an alternative fuel (coal or natural gas), with commissioning in 1992.

When the Maui gas field development was planned, a contract was drawn up which required a large guaranteed gas demand. As a result, almost all the gas from the Maui field initially went to gas-fired power stations. Since then, that emphasis has changed, and a large proportion of the gas is to be used for petro-chemical industries such as fertiliser and synthetic petrol manufacture.

The Ohaaki Power Station, which is being built on the Broadlands geothermal field, will initially produce 80 to 100 MW. This may rise to 165 MW once more is known about the potential of the field. Ohaaki's first generating unit is expected to be commissioned in 1988.

Construction projects

In July 1968 the Government approved in principle the total development for hydro use of the Upper Waitaki Valley. The plan involves controlling the outflows of Lakes Tekapo and Pukaki, and to some extent Lake Ohau, and directing them through canals to power stations Tekapo B, Ohau A, Ohau B and Ohau C. The diverted water will eventually flow into the Waitaki River at Lake Benmore. Total capacity of the new stations will be about 850 MW, and the extra storage given by the scheme means output from the existing Waitaki River stations will be increased.

The Upper Waitaki project began with the construction of both the Twizel hydro town and the Tekapo B (2 × 80 MW) project which was commissioned in 1977. Then came Ohau A (4 × 66 MW) which was fully commissioned during 1980, followed by Ohau B (4 × 53 MW) commissioned in early 1984. It is planned to commission the last station, Ohau C (4 × 66 MW) during 1985.

Upper Clutha hydro-electric development

The following stations are planned for the Upper Clutha:

Clyde (under construction)432 MWplanned commissioning commencing 1988
Luggate96 MWplanned commissioning commencing 1992
Queensberry189 MWplanned commissioning commencing 1994

Investigations are also progressing on development plans for the Lower Waitaki and Lower Clutha rivers. It is planned to commence commissioning a 200 MW station on the Lower Clutha in 1997, otherwise no other commencing dates have been set.

Inter-island transmission

In 1965 the North and South Islands were linked by high voltage, direct current (HVDC) transmission lines and undersea cables. This allowed the transmission of electricity from the South Island to the North, where there was a greater demand.

Forty kilometres of submarine cable were laid across Cook Strait, and 570 kilometres of 500 KV transmission line had to be constructed between Benmore and Fighting Bay in the South Island, and Oteranga Bay and Haywards Substation in the North.

The inter-island link, at the time of its construction, was the largest scheme of its type outside the U.S.S.R., and it attracted a good deal of overseas interest. The World Bank lent $23.2 million to meet the overseas costs of the project.

In April 1976, the scheme was modified to allow transmission of electricity in both directions between the 2 islands.

Planning for electrical energy

Forecasting and forward planning of electricity, and other fuels, is part of an overall energy strategy.

The Electrical Supply Authorities Association prepares 5-year estimates of consumption based largely on local knowledge of industrial and housing development plans. These are incorporated by the Electricity Sector Forecasting Committee with wider long-term considerations to produce a 15-year forecast. This is submitted to the Secretary of Energy and co-ordinated with the reports of other energy sectors to formulate the Energy Plan.

Such co-ordination prevents the various energy forms from competing for the same markets, and it allows careful assessment of factors such as price changes and conservation measures.

The Energy Plan (Parliamentary Paper D. 6A) is tabled in the House of Representatives.

Electricity forecasting is one of the country's most long-term planning processes, and it is vital to both the electrical industry and the national economy. If estimates are too low, or if generating stations are not ready on time, supply difficulties could occur. On the other hand, if estimates are too high there may be a premature commitment of resources and capital which could seriously affect the funds available for other development and social programmes.

Forecasting Committee predictions are used by the Electricity Sector Planning Committee to help produce a power development plan for the next 15 years. This contains recommendations on what projects are required in order to meet estimated needs. Although plans for 15 years are made, only those for the first 7 years are fixed—the others can be adjusted as is required by changing circumstances.

In its 1985 report, the Electricity Sector Forecasting Committee gave a schedule of 3 sets of estimates, each reflecting different assumptions of population and economic growth for the 1985-86, 1999-2000, and 2003-04 financial years.

Table 21.7. ESTIMATES OF ENERGY CONSUMPTION

Year Ended 31 March1985 Electricity Sector Forecasting Committee Estimates
1985GWh
Actual26,765 
Estimates
LowMiddleHigh

Source: Ministry of Energy.

198627,90028,30028,600
198728,10028,80029,800
198828,30029,30030,700
198928,60029,80031,500
199028,90030,30032,300
199129,30030,90033,300
199229,60031,50034,100
199329,90032,00034,900
199430,20032,50035,800
199530,40033,20037,000
199630,70033,90038,100
199731,10034,80039,200
199831,50035,70040,700
199931,80036,60042,300
2,00032,40037,40043,600
2,00534,80041,90049,700

Finance for electricity

Expenditure on generation, transmission and distribution of electricity has risen from $1,913 million in 1975 to $5,669 million in 1985. These figures do not take into account depreciation. The Government's share of this expenditure was $4,056 million in 1985, which means the electrical supply authorities have an investment in generation and distribution systems of $1,613 million.

Continuing capital expenditure is required if both the government's generating and distribution network and the supply authorities' distribution systems are to be strengthened and expanded.

The electricity supply industry's level of dependence upon loans is reduced by the structure of bulk supply and retail tariffs, which allow up to 50 percent of capital requirements to be funded from revenue.

Legislation

Under the Ministry of Energy Act 1977, the ministry is obliged to prepare plans both to meet the expected demand for electric power, and for controlling the government generating and transmission systems. Other responsibilities include the efficient use of electricity and the promotion of conservation.

The Electricity Division has various responsibilities, including the functional design of stations, the detailed design and installation of turbines, generators and associated equipment; design and installation of substation equipment, transmission line survey, design and construction; and operation and maintenance of the electricity bulk supply network.

In general the hydraulic investigations and civil engineering aspects are carried out by the Ministry of Works and Development to the requirements of the Electricity Division.

Supply authorities

Electricity distribution is the responsibility of the Ministry of Energy and 61 supply authorities. The authorities are licensed to supply electricity to particular areas under the terms of the Electricity Act, 1968. They buy electricity in bulk from the Electricity Division of the Ministry of Energy and then sell it to individual consumers.

Thirty-six of the supply authorities are electric power boards and 1 an area electric authority, all these are ad hoc local bodies with the sole function of providing electricity and related services in their districts. One other ad hoc authority is known as an Energy Board and distributes both gas and electricity. Of the remainder, 22 are territorial authorities (municipalities or counties) which are responsible for electricity supply as well as a range of other services.

The Southland Electric Power Board falls outside both the above categories. The board suffered heavy financial losses in its early years and was taken over by the Government in 1936. Distribution in the area is now the responsibility of the Southland Electric Power Supply, a part of the Electricity Division.

Some supply authorities have generating plants of their own. At 31 March 1985, 16 power boards had a generating capacity of 212 532 kW, and 6 territorial local bodies had stations with a combined capacity of 97 197 kW.

Rural Electrical Reticulation Council

Although the vast majority of the country is supplied with electricity, there are still a few areas without it, such as the offshore islands and remote rural districts.

The Rural Electrical Reticulation Council was established in 1945 and now operates under the terms of the Electricity Act 1968. It has the responsibility of providing annual subsidies towards the cost of supplying electricity to areas which could not by themselves meet the expense of reticulation.

These subsidies are funded by annual levies (set at 0.075 percent during 1984-85) on all Electricity Division and supply authority electricity sales.

An important development affecting the council's operations was the introduction of the revised Electrical Supply Regulations on 1 October 1984. The new regulations change the basis on which electrical supply authorities and consumers share the cost of mains supply. They also replace the old guarantee system with new rules covering uneconomic supply.

The council's line subsidy policy, previously based on the old guarantee system, is being modified. These changes are nearly complete and have so far met with a largely favourable response from supply authorities.

The council subsidises not only distribution lines but also private generating facilities where these are a more economic alternative.

To assess the likely demand for electricity from a central generating plant on Stewart Island, a survey was carried out by the Southland Electric Power Supply and consultants, to record the number of private generating plants. The next stage will be for consultants, partly funded by the council, to design and cost a suitable reticulation system initially for the most settled area on the island. The options for generating will also be examined.

In 1985 the subsidy programme allowed the completion of a further 148 kilometres of electric line, and this took the total of subsidised line to 16 865 kilometres, During this period 100 new consumers were connected to an electricity supply, either to the public system or by the installation of private generating plant. Subsidy payments added up to $1,164,497 and of this $39,093 went towards private generation.

General statistics

Table 21.8. PUBLIC SUPPLY STATIONS

StationInstalled Capacity at 31 March 1985Static HeadAnnual Energy Generation Year Ended 31 March 1985Annual Load Factor Year Ended 31 March 1985
Number of UnitsMW*

* “In-situ maximum” rating.

† Includes 12.2 generated at Ohau 'C' during commissioning.

‡ New station (3 × 237 MW) partly commissioned.

Source: Ministry of Energy.

   metresmillionpercent
  Hydro   
Arapuni815653765.055.73
Aratiatia38434314.642.40
Atiamuri48125272.839.22
Karapiro39030482.254.72
Mangahao52027378.943.52
Maraetai1036061744.933.42
Matahina27261248.738.52
Ohakuri411235378.437.49
Rangipo2120206318.934.41
Tokaanu4200208664.434.66
Waikaremoana—
    Kaitawa23213588.9 
    Piripaua240113130.736.36
    Tuai352206199.9 ' 
Waipapa35116233.349.23
Whakamaru410038471.952.61
Arnold231326.795.38
Aviemore424037972.746.66
Benmore6540922 433.849.44
Cobb632594206.468.09
Coleridge935149176.852.17
Highbank12510180.634.31
Manapouri75901774 636.988.52
Monowai364737465.60
Ohau 'A'4264581 185.950.80
Ohau 'B'421248972.850.41
Roxburgh8320461 542.553.10
Tekapo 'A'12530125453.43
Tekapo 'B'2160146801.454,91
Waitaki710521510.253.39
North Island Supply Authorities46160...550.7..
South Island Supply Authorities39139...441.2..
South Island private plant.......0.2..
                 Subtotal2084,427 20 107.4-
Thermal
Huntly3711...2 814.242.03
Marsden2230...5.6..
Meremere6170...179.125.06
New Plymouth5600...2 119.641.50
Otahuhu6259...23.92.30
Stratford4208...288.815.01
Wairakei9157...1 206.389.13
Whirinaki4216...0.8..
North Island Supply Authorities38...0.2..
South Island Supply Authorities42...0.05..
North Island private plant.......16.1..
South Island private plant.......2.5..
              Subtotal472,561...6 657.3..
                           Total2556 988...26 764.6..

Table 21.9. SUPPLY AUTHORITIES: SUMMARY*

ItemUnit1984-85

* Includes the Electricity Division of the Ministry of Energy.

† “In-situ maximum” rating.

‡ Electricity Division only.

§ Includes starting oil.

|| Excluding stocks of materials.

Source: Ministry of Energy.

Generating stationsNo.94
Capacity of generatorskW (000)6,988
Fuel used
    Coaltonnes501,073
    Light oil§tonnes3,997
    Heavy oiltonnes16,547
    Natural gasterajoules48,911
Staff employedNo.15,592
Capital expenditure (less provision for depreciation)||
    During year (net outlay)$(m)411.1
    To date$(m)4,770.9
Generation and sales—
    Generation per head of mean populationkWh8,197
    Retail sales per head of mean populationkWh7,348
    Domestic consumption per domestic consumerkWh7,570
Income from total retail sales of electricity per kWh sold to consumerscents4.961

Table 21.10. INCOME AND EXPENDITURE

Item1984-85

* These figures represent transfers within the electrical supply industry and therefore do not represent additional income or expenditure to the industry.

Source: Ministry of Energy.

Income—$(thousand)
    Gross income (including bulk sales and standby charges, excluding rates)2,014,438
    Income from bulk sales to supply authorities*719,231
    Net income (excluding rates, bulk sales, and standby charges)1,295,207
Expenditure—
    Operating (including cost of energy purchased in bulk)1,070,187
    Cost of energy purchased in bulk*719,231
    Operating (excluding cost of energy purchased in bulk)350,956
    Trading, administration and general185,057
    Loan interest and depreciation461,946
    Net annual expenditure (excluding cost of energy purchased in bulk)997,959
Surplus297,249

Table 21.11. MEANS OF GENERATION OF ELECTRICAL ENERGY FOR PUBLIC SUPPLY

Year Ended 31 MarchGenerated by Means ofTotal
HydroSteamOil/Gas

Source: Ministry of Energy.

 kWh (million)
198118 927.93 050.0132.722 110.6
198219 538.83 106.8317.022 962.7
198317 987.15 636.3678.024 301.3
198420 198.95 084.0572.025 854.9
198520 107.46 343.5313.726 764.6

Table 21.12. GENERATION AND DISPOSAL

Sold RetailGenerated for Public Supply byNon-productiveYear Ended 31 March
Electricity DivisionSupply AuthoritiesOther SourcesTotal

Source: Ministry of Energy.

 kWh(million)
198121,5395561522,11119,5402,570
198222,2397101422,96320,1042,858
198323,6196661624,30121,3712,930
198424,9978411725,85523,0272,828
198525,7549921926,76523,9942,771

In Table 21.12 the excess generation of certain local organisations, which is bought for public supply, is given in the column “other sources”.

Table 21.13. DISTRIBUTION OF POWER

Year Ended 31 MarchDomestic*IndustrialCommercialFarmingPublic LightingRail and Bus TractionTotalNumber of Consumers

* Includes domestic water-heating units.

Source: Ministry of Energy.

 kWh(million)
19818,0357,7033,1934571233019,5401 363 165
19828,2657,7813,4274761262920,1041 377 682
19838,7338,2313,7345161282921,3711 396 783
19848,9819,4243,9624991303123,0271 417 606
19858,9989,9954,2246131353023,9941 436 730

The following graph shows the growth in the use of electric power, and the principal purposes for which the power was used.

The distribution of the expenditure per kWh sold retail during 1984-85 was as follows: operating expenses 1.463 cents; trading, administration and general 0.771 cents; and loan interest and depreciation 1.953 cents giving a total expenditure of 4.159 cents per kWh sold retail.

The income per kWh sold in 1984-85 was, by categories; domestic 4.835 cents; commercial 7.864 cents; industrial 3.665 cents; farming 7.650 cents; public lighting 5.751 cents; railway traction 7.830 cents; urban traction 5.684 cents.

21.3 Gas

Gas was produced from coal as an early source of light and heating in New Zealand and by 1916 there were 56 undertakings engaged in the marketing of gas to the public. From that date the number of manufacturing gas undertakings steadily declined because of the growth in the use of electricity as a cheaper source of energy. There are now only 3 manufactured gas plants operating. These are in Gisborne, Dunedin and Invercargill. Gisborne is changing to natural gas: 1985—initially using natural gas as feedstock with a total changeover to natural gas later this decade. Since 1970 the gas industry has been rejuvenated by the reticulation of gas in the North Island.

The oil consortium. Shell BP and Todd Oil Services Ltd., discovered natural gas at Kapuni in 1959. In 1967, further investigations confirmed that the field was sufficiently large to justify exploitation and the Natural Gas Corporation (NGC) was set up by the Government to develop this new energy resource. The NGC constructed a pipeline to supply gas treated at the Kapuni processing plant to Auckland, Hamilton, New Plymouth, Hawera, Wanganui, Palmerston North, Levin, Hutt Valley, and Wellington. Natural gas was supplied to these centres by 1971. A pipeline to supply untreated natural gas to the Stratford and New Plymouth electricity generating stations was completed in 1975. This pipeline was later converted to transport Maui gas to the 2 power stations, and to the Kapuni Treatment Plant, where it is used as feedstock in addition to Kapuni gas.

A second and larger natural gas field was discovered by Shell BP and Todd Oil Services Limited in 1969. Named the Maui field, situated off the Taranaki coast, it was brought into production in 1979, with the first gas coming onshore in May of that year. The increased reserves of natural gas, coupled with a further increase in oil prices, resulted in the construction of new natural gas pipelines to service areas outside the Kapuni system. By 1985 it is expected that all the major regions in the North Island will be supplied with natural gas. The NGC has constructed pipelines to Te Awamutu, Otorohanga, Kinleith, Te Kuiti, Tokoroa, Huntly, Tirau, Morrinsville, Kawerau, Cambridge, Putaruru, Tauranga, Te Puke, Opunake, Edgecumbe, Hawke's Bay, Rotorua, Mount Maunganui, Inglewood, Stratford, Eltham, Otaki, Waikanae, Paraparaumu, and Northland. It is planned to supply Gisborne and Wairarapa in 1985. A study into the supply of natural gas to the South Island showed it was uneconomic and that an alternative to imported oils would be provided by liquid petroleum gas (LPG). The Liquigas consortium is setting up depots in the South Island and a tanker will be supplying LPG to bulk depots in Dunedin and Christchurch by late 1984.

The Natural Gas Corporation's gas sales for the year ended 31 March 1984 was 34.9 million gigajoules, an increase of 12.4 million gigajoules on 1983. Sales of LPG and natural gasoline amounted to 24,883 tonnes, an increase of 2.4 percent over the previous year.

Census of gas

In 1975-76 the gas industries were reclassified under the New Zealand Standard Industrial Classification covering:

  1. The manufacture and distribution of gas by gasworks.

  2. The distribution of natural gas by gas undertakings.

This reclassification also introduced an integrated economic census of the gas industry, based on the year ended 31 March or the last accounting year prior to that date.

The 1984 Census of Gas covered:

  1. Three gasworks, 1 in the North Island producing gas from natural gasoline; and 2 in the South Island manufacturing gas from coal and oil.

  2. Fifteen businesses, all operating in the North Island as distributors of natural gas purchased from the Natural Gas Corporation of New Zealand.

Definitions of terms used are given in the Glossary.

Table 21.14. CENSUS OF GAS

Statistical ItemUnitCensus Totals
1983-841984-85
BusinessesNo.1818
Paid employees at 28 FebruaryNo.1,0531,033
Consumers—domestic at 31 MarchNo.104,639108,293
      —commercial/industrial at 31 MarchNo.11,04011,250
Gigajoules of gas soldmillion20,76224,244
Stocks
    Opening$(000)6,4946,548
    Closing$(000)6,6588,644
Sales and other income
    Gas, manufactured and natural including CNG$(000)91,767109,915
    Gas appliances, LPG and all other goods sold$(000)11,22711,906
    Other income$(000)2,4933,035
    Total sales and other income$(000)105,488124,856
Purchases and operating expenses
    Natural gas$(000)45,48057,309
    Feedstocks, fuel and power, and all other purchases$(000)15,44916,841
    Operating Expenses$(000)35,51140,381
                 Total purchases and operating expenses$(000)96,441114,532
Net profit$(000)9,21112,421
Value added$(000)33,56139,851
Capital expenditure, less sales$(000)19,07618,157

Further information

Annual Statistics in Relation to Electric Power Development and Operation in New Zealand—Electricity Division, Ministry of Energy.

Report of the Electricity Sector Forecasting Committee.

Report of the Electricity Sector Planning Committee.

Energy Plan (Parl. paper D. 6A).

Gas Sector Forecast and Plan 1985.

Report of the Liquid Fuels Trust Board of New Zealand (Parl. paper D. 8).

Report of the Ministry of Energy (Parl. paper D. 6).

Monthly Abstract of Statistics—Department of Statistics.

Report of the New Zealand Gas Council (Parl. paper D. 7).

Report to the New Zealand Government of the Fact Finding Group on Nuclear Power (Parl. paper D. 91977).

Nuclear Power Generation in New Zealand (Parl. paper H. 4 1978).

State Coal Mines 1985 Development Plan.

White Paper on Export Coal-Sales Contract (Parl. paper D. 11).

White Paper on Liquigas Assurances (Parl. paper D. 12).

White Paper on New Zealand Synthetic Fuels Corporation Limited Venture Contracts (Parl. paper D. 11).

White Paper on Petralgas Supply Contract (Parl. paper D. 13).

World Energy Supplies 1973-78—United Nations.

Background Reports to the 1985 Energy Plan—Ministry of Energy 1985.

EP 8501 Energy Demand Forecasting.

EP 8502 Energy Research, Development and Investigations: Programme Review and Priorities 1984-85.

Chapter 22. 22 Transport and communication

22.1 General survey

New Zealand is heavily dependent on transport and communication links. As a nation dependent on overseas trade, and geographically remote from many of its trading partners, it relies more heavily on sea transport than do many other countries.

The establishment of rail-road links to coastal ports and a regular service of refrigerated cargo ships enabled New Zealand to evolve from a subsistence economy to one of the world's major exporters of meat and dairy produce. However, the country is still largely dependent on overseas shipping companies to carry exports to overseas markets and bring in imports.

The Census of Transport, Storage, and Communication surveys industries involved predominantly in land, sea, and air passenger, and freight transport services; the operation of storage and warehousing facilities; communications services operated by the Post Office and other private organisations, such as telephone answering services.

The first census was taken for the year 1979-80 and is one of the Department of Statistics' 5-yearly series of integrated economic censuses.

Industries are classified under the New Zealand Standard Industrial Classification:

Railway transport

Road transport and supporting services

Water transport and supporting services

Air transport and supporting services

Storage and warehousing

Communications

The statistical tables which follow give summaries of these activities. The definitions used in the tables are given in the Glossary with the following exception:

Establishments—The actual depots have been classified as establishments for the larger enterprises; whilst home-addresses form establishments for many of the one-man operations in the general carrier and taxi industries.

Table 22.1. CENSUS OF TRANSPORT. STORAGE AND COMMUNICATION 1979-80 GENERAL SUMMARY

Item1979-80 Census
UnitTransport and StorageCommunicationsTotal
Establishments and ancillary unitsNo.8,4021168,518
Persons engaged at 28 February 1980, including working proprietorsNo.70,45635,770106,226
Salaries and wages paid$(000)709,009360,7951,069,804
Depreciation$(000)142,77929,915172,695
Purchases and other expenses$(000)1,514,570115,7831,630,354
Turnover$(000)2,582,182634,0523,216,234
Value added$(000)1,058,765548,0131,606,778
Capital expenditure less disposals$(000)180,72328,698209,421

Table 22.2. CENSUS OF TRANSPORT, STORAGE AND COMMUNICATION 1979-80 OPERATING UNITS, SALARIES AND WAGES

IndustryOperating UnitsPersons Engaged at End of FebruarySalaries and Wages Paid During Year
EstablishmentsAncillary Units

* Suppressed to avoid disclosure of confidential information.

 Number$(000)
Railway transport35-8,249*
Urban passenger bus services9364,00234,196
Route passenger bus services5511,40715,833
         Total, scheduled road passenger transport14875,40950,028
Taxi services2,295-3,3654,008
School bus contractors204-9412,842
Bus tour operators69-7636,953
Other road passenger transport13-30*
         Total, other road passenger transport2,581-5,099*
Logging haulage9313422,717
Stock haulage13731,28511,800
Refrigerated haulage56-3913,896
Heavy haulage9741,26210,410
Bulk haulage59152,55517,975
Furniture removal72-4083,001
Route haulage4935033,821
General carrier2,3942611,16674,971
Other freight transport by road491-9451,723
         Total, freight transport by road3,9804218,857130,315
Car and truck rental services17927965,895
Vehicle parking facilities68-1711,543
Other supporting services to land transport4315085,628
         Total, supporting services to land transport29031,47513,066
         Total, land transport7 0345239 089295,558
Ocean and coastal water transport2083,02745,831
Inland water transport42-2321,764
Harbour board operations4633,85456,455
Stevedoring72106,66795,004
Other supporting services to water transport12-2193,107
         Total, supporting services to water transport1301310,740154,566
         Total, water transport1922113 999202,162
Air transport carriers13127,207107,516
Aero clubs5411821,324
Airport operations42-1,65526,796
Other supporting services to air transport17-2065
         Total, supporting services to air transport11311,85728,184
         Total, air transport24439 064135,700
Travel agencies40292,30717,169
Freight agents288333,85036,308
Other services incidental to transport48-2601,587
         Total, services incidental to transport738426,41755,063
Storage and warehousing58-4954,320
         Total, services allied to transport796426 91259,383
         Total, transport and storage8 26611869 064692,803
Post Office40-35,094*
Other communication activities76-676*
         Total, communication116-35 770360,795
         Total, establishments and single industry ancillary units8 382118104 8341,053,598
Ancillary units servicing transport-181,39216,205
         Grand total8 382136106 2261,069,804

Table 22.3. CENSUS OF TRANSPORT, STORAGE AND COMMUNICATION 1979-80 OPERATING EXPENSES

IndustryDepreciationPurchases and Other ExpensesTurnoverValue AddedCapital Expenditure Less Disposals

* Suppressed to avoid disclosure of confidential information.

 $(000)
Railway transport18,648208,944377,658102,403*
Urban passenger bus services2,63825,44451,50326,56115,418
Route passenger bus services2,11714,21135,35820,5552,320
         Total, scheduled road passenger transport4,75539,65586,86147,11617,738
Taxi services2,05321,32343,21322,3222,016
School bus contractors1,3395,91513,4797,9882,109
Bus tour operators1,36532,43544,63512,8632,079
Other road passenger transport64170470311*
         Total, other road passenger transport4,8159,843101,79743,485*
Logging haulage1,79710,07517,5829,0712,957
Stock haulage4,46624,34346,68725,6626,733
Refrigerated haulage1,2049,33117,0298,7071,579
Heavy haulage4,80917,23035,07619,6674,019
Bulk haulage7,14352,22693,82646,8819,192
Furniture removal5477,98613,1325,464890
Route haulage8405,50711,8017,0551,766
General carrier25,636152,070303,417167,75634,568
Other freight transport by road8747,96316,5018,7431,202
         Total, freight transport by road47,315286,731555,051299,00662,907
Car and truck rental services5,58718,88937,53519,58611,718
Vehicle parking facilities463,2887,3134,3702,959
Other supporting services to land transport903,4459,0845,842866
         Total, supporting services to land transport5,72425,62353,93229,79815,544
         Total, land transport81,262620,7961,175,299521,808102,520
Ocean and coastal water transport18,130200,068269,46567,000-21,933
Inland water transport4784,8348,2683,543344
Harbour board operations12,35948,366146,48899,91031,124
Stevedoring1,69551,604142,68798,7304,252
Other supporting services to water transport2981,2074,5353,3353,223
         Total, supporting services to water transport14,353101,178293,710201,97538,600
         Total, water transport32,961306,080571,443272,51717,011
Air transport carriers18,974383,694493,348121,007-18,053
Aero clubs5183,9075,6711,856455
Airport operations2,43713,87438,52925,43813,034
Other supporting services to air transport119623923312-39
         Total, supporting services to air transport3,07418,40445,12327,60613,449
         Total, air transport22,048402,098538,470148,613-4,604
Travel agencies79030,88156,10625,6581,477
Freight agents2,387126,248181,95057,9024,904
Other services incidental to transport6152,7106,7524,091624
         Total, services incidental to transport3,792159,839244,80987,6517,005
Storage and warehousing1,7987,36518,49011,4322,927
         Total, services allied to transport5,590167,204263,29999,0839,932
         Total, transport and storage141,8611,496,1782,548,5111,042,022124,860
Post Office29,724102,633613,503540,40428,253
Other communication activities19113,15020,5497,609444
         Total, communication29,915115,783634,052548,01328,698
         Total establishments and single industry ancillary units171,7761,611,9613,182,5641,590,035153,557
Ancillary units servicing transport91818,39233,67116,74355,860
         Grand total172,6951,630,3543,216,2341,606,778209,421

Table 22.4. CENSUS OF TRANSPORT, STORAGE AND COMMUNICATION 1979-80 REGIONAL SUMMARY

Statistical AreaOperating UnitsPersons Engaged at End of FebruarySalaries and Wages Paid During YearCapital Expenditure Less Disposals
EstablishmentsAncillary Units
 No.No.No.$(000)$(000)
Northland28832,80024,9804,857
Central Auckland2,6994431,112321,24122,719
South Auckland - Bay of Plenty1,2411511,672108,97832,121
East Coast122-1,0128,2962,010
Hawke's Bay35253,72836,14911,143
Taranaki18522,46722,2365,118
Wellington1,3683926,173274,55470,531
             Total, North Island6 25510878 964796,436148,498
Marlborough8511,32013,8672,317
Nelson16642,29423,7696,513
Wetland71-8167,5541,795
Canterbury9981413,806140,24125,798
Otago50265,77555,71814,920
Southland30533,25132,2209,579
             Total, South Island2 1272827 262273,36860,923
             Total, New Zealand8 332136106 2261,069,804209,421

Motor spirit usage. Usage of motor spirits in New Zealand during the latest March years is shown in Table 22.5. The grades shown are regular (83 and 91 octane), premium (96 octane), 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.

Table 22.5. MOTOR SPIRITS USAGE

Year Ended MarchMotor Spirits — Oil Company Deliveries*
PremiumRegularOthersTotal

* Based on deliveries by oil companies to resellers, bulk sales, and use in own fleet.

† In May 1983, the octane of regular petrol changed from 83 to 91. Figures from that date are for 91 octane regular.

 litres (000)
19822 216 32452,7235162 269 563
19832 230 57644,0872622 274 928x
19842 218 156136,1972502 354 602x
19852 098 938198,7942382 297 970
19862 038 891168,9672692 208 128

Diesel fuel is widely used by heavy trucks and buses, but actual figures of consumption by these vehicles are not available.

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. Major changes to the transport licensing system contained in the Transport Amendment Act (No. 2) 1983 were implemented on 1 June 1984.

The Act established a new system of transport licensing based on the suitability of the licensee to operate in the field rather than a demonstrated need for the licence to be issued (qualitative rather than quantitative licensing).

The new licences are unrestricted as to area. Applicants must meet criteria relating to the nature of the service and their professional competence, financial arrangements and good repute to obtain a licence. The new provisions apply to goods-service, passenger-service and harbour ferry-service licences, but exclude taxicab-service licences which continue under the quantative system. Some protection is provided for scheduled passenger-services and harbour ferry-services over specified routes. A further provision in the Act provides for the removal of area and commodity restrictions from existing goods-service licences from 1 November 1983.

The Transport Licensing Authorities continue to hear licence applications. The Licensing Appeal Authority determines appeals on decisions of Licensing Authorities, and the Charges Appeal Authority determines appeals in relation to taxicab-service charges.

The Secretary for Transport no longer sets rates for goods, services, passenger services and harbour ferry services. However, charges for taxi-cab services are still set by the Secretary. Public bodies will continue to fix charges for their public passenger services.

A further major change relates to the 150 km rail limit. Prior to 1 November 1983 most goods could not be carried by road between places where a route was available which included at least 150 km of rail. The restriction did not apply to certain exempt goods such as livestock, fresh meat, and fresh fruit and vegetables, or where exemptions were granted by the Transport Licensing Authorities. The 150 km restriction also ceased to apply where use of the railway would increase the journey by more than one-third of the shortest road route available. However, since the Transport Amendment Act (No. 2) 1983 came into force on 1 November 1983, it is possible for goods-service operators to compete with rail (in cases where the rail restriction did apply) by payment of a long distance fee based on tonne-load capacity. The permit can be purchased for periods of from 24 hours to 1 year. The permit fee is reduced by about one-third each year (from 1 November 1983), and together with the 150 km limits will be completely abolished on 1 November 1986. From this date there will be open competition between road and rail.

22.2 Shipping

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 cargos, and a new concept of the co-ordination of transport through the substitution of capital-intensive for labour-intensive operations. There is no sign that this revolution is coming to an end. The continuing increase in capital and operating costs, particularly the cost of fuel, has intensified the search for improved efficiency in vessels and cargo handling methods.

Recent innovations include the hybrid-vessel, combining for example lift-on and roll-on capability for greater flexibility and speed of turn around, and improved hull and propellor design, as well as more fuel-efficient propulsion units.

New Zealand, as a country that lives by overseas trade, has had to adapt to such technological changes which extend throughout the entire transport chain from factory to port.

Port development

The New Zealand Ports Authority was established by statute in 1968. Its major function is to coordinate national harbour development arising from proposals submitted by harbour boards or other bodies and the authority. Besides this primary function, the authority also promotes an efficient and integrated ports network. When the cost of port development exceeds specific capital expenditure limits, the consent of the authority is required. Consents granted during the year ended 31 March 1985 amounted to $24,732 million.

Specialised container-handling facilities have been provided at the 4 terminals of Auckland, Wellington, Lyttelton, and Port Chalmers. The continuing trend for cargo to be handled by multi-purpose shipping has justified the provision of additional facilities at some other ports. Major developments have been undertaken at Port Taranaki to export hydrocarbon products produced in that region. In the future, port development will be required to service the predicted increase in export of forest products. The horticulture industry is another area of export growth. This latter increase of exports is seasonal in nature and creates considerable short-term demands on port facilities and labour.

Shipping services

New Zealand's heavy dependence on overseas trade and isolation from principal population centres and principal markets combine to make us more reliant on shipping than most other developed countries. Over 90 percent of New Zealand exports by value are carried by sea. A similar proportion of imports travel the same way.

Overseas liner services

United Kingdom/Europe: The New Zealand European Shipping Association and the New Zealand and United Kingdom Shipowners' Committee continued to play a pre-eminent role in the carriage of New Zealand exports to Europe. The New Zealand European Shipping Association serves Mediterranean and north continental ports, and comprises 3 British and 8 continental lines, the Australian National Line, and the Shipping Corporation of New Zealand (trading as the New Zealand Line); whilst the New Zealand and United Kingdom Shipowners' Committee serves the United Kingdom and comprises 3 British lines, the Australian National Line, and the New Zealand Line. Competition from independent lines operating outside conference arrangements remained strong.

East Asia/South East Asia. New Zealand's outward liner trade to East Asia/South East Asia is served by one conference, a joint service, and a number of independent operators. The New Zealand Line is a member of the Australian and New Zealand Eastern Shipping Conference, the New Zealand arm of which provides a direct container service between New Zealand and Japan.

A new trans-shipment service to China commenced during 1985. New Zealand vessels carry cargos to and from Australia for connection to China Ocean Shipping Company (COSCO) vessels.

Americas. United Kingdom, West German. Belgian and New Zealand carriers continued to supply most of the tonnage employed in liner services to these areas. During the year, changes to the U.S.A. regulatory system governing liner shipping opened the way for shipowners to establish rationalised services similar to those found in other New Zealand trades.

Trans-Tasman. A joint venture operation between the New Zealand Line and the Australian National Line commenced in mid-1983 with the introduction of an Australian-manned vessel. Support for the service was such that the planned introduction of a second dedicated vessel (staffed by New Zealanders) was brought forward to February 1984. Union Company continued its established roll-on/roll-off operations in the trade. A re-engining programme for the two turbine vessels Union Rotoiti and Union Rotorua commenced in December 1985. Tasman Pulp and Paper, specialised product carriers, continued their services carrying general cargo space. B.H.P's steel product carriers also offered general Cargo space, ex New Zealand. The New Zealand Line, Australian National Line and Pacific Forum Line continued to carry some trans-Tasman cargo in the course of their participation in other trades. The most recent addition to the trans-Tasman trade is Tasman Express Line which commenced operations in mid-1985 with 1 vessel, and has since introduced another into service.

Middle East. Direct container services to Middle East ports were provided by 2 United Kingdom flag carriers operating a joint service, and by a Japanese shipowner. Container services were also offered by some of the lines involved in the New Zealand—United Kingdom/Europe conference trade while a number of other operators supplied container trans-shipment services. As in previous years, chartered conventional tonnage continued to play an important part in this trade.

South Pacific

Pacific Forum Line (PFL): A regional shipping venture established in June 1977 under the asspices of the South Pacific Forum (the PFL) continued to operate 3 modern container vessels (1 of which is contributed by New Zealand) in a liner service linking ports in New Zealand, Fiji, Tonga, Western Samoa, American Samoa, Vanuatu, the Solomon Islands, Papua New Guinea, New; Caledonia, and Australia. A feeder service to Tuvalu and Kiribati was established in 1982.

Other services. The Governments of the Cook Islands, Niue and New Zealand maintained a shipping service between their countries using two small conventional vessels. The joint service also traded to Tahiti.

Other liner services from New Zealand to the South Pacific were provided by New Zealand, French, Fijian. Polish, Norwegian and Tongan flag vessels.

Overseas bulk services. In tonnage terms most of New Zealand's external trade is carried in bulk vessels. While a certain amount of bulk tonnage is dedicated to the trade—such as the two trans Tasman forest product carriers owned by Tasman Pulp and Paper and the bulk ore vessel used to carry alumina from Queensland to the Tiwai Point aluminium smelter—New Zealand's bulk shipping needs are served in the main by a fluid mix of vessels.

Cargos carried by these vessels (frequently registered in open registry countries like Liberia and Panama) include crude oil, phosphate rock and petroleum coke inwards, and ironsands, coal and forest products outwards.

Coastal liner services. A regular and frequent ferry service across Cook Strait between Wellington and Picton, at the head of the Marlborough Sounds, was provided by rail ferries operated by the Railways Corporation. Two of the ferries, the Arahura and Aratika carry both passengers and freight; a third vessel, the Arahanga is confined to the carriage of freight and provides passenger accommodation only for truck drivers and others whose vehicles are carried.

The New Zealand Line vessel Coastal Trader continued to provide a regular roll-on/roll-oft' service between the ports of Auckland, Lyttelton and Dunedin. The Union Company container vessel Union Nelson was withdrawn from the Onehunga/Nelson/Lyttelton service although Union Company vessels engaged in trans-Tasman trade will continue to carry cargo between New Zealand ports. Since June 1983 Pacifica Shipping Limited, a joint-venture of New Zealand and Norwegian interests, has operated a freight-only shipping service between Wellington and Lyttelton using a roll-on/roll-off vessel, The Spirit of Free Enterprise. Late in 1985 it was replaced by a larger vessel, the Spirit of Competition. Marlborough Sealink's freight-only inter-island service between Wellington and Picton folded after less than two months.

The Government continued to subsidise a freight-only shipping service to the Chatham Islands. The subsidised passenger/freight service to Stewart Island was terminated in September 1985 and has been replaced by a private operation established with the assistance of a Government grant.

Coastal bulk shipping. Bulk cement distribution was handled by 5 small cement carriers operated by New Zealand Cement Holdings Ltd (2), the Tarakohe Shipping Company Ltd (2), and Wilsons (N.Z.) Portland Cement Ltd (1), and 4 product bankers operated by the Union Company on behalf of the oil industry distributed petroleum products from the Marsden Point Oil Refinery, whilst the Liquigas LPG carrier Tarihiko operates under Shipping Corporation Management.

Shipping Corporation of New Zealand (SCNZ)

The corporation was set up pursuant to the Sing Corporation of New Zealand Act 1973 and commenced trading in 1974 as a wholly Government-owned national shipping line. SCNZ's objectives are set out in the 1974 Memorandum of Association and include:

Establishing, maintaining, and operating shipping services both on the New Zealand coast and in foreign trades;

Promoting, encouraging, and improving New Zealand's import/export trades;

Participating in negotiations and conferences within the shipping industry, particularly in connection with freight rates.

With effect from 1 September 1985 the corporation adopted the trading name New Zealand Line to emphasise its increased presence in the international maritime industry.

United Kingdom/Europe: New Zealand Line is a member of the liner conference serving the New Zealand/U.K.-Europe trade. The New Zealand Line is also a member of the Australia/New Zealand/Europe Container Services (ANZECS) and its flagship, New Zealand Pacific, is chartered to the ANZECS consortium. In return, the New Zealand Line has a 15 percent slot share in all ANZECS vessels.

Caribbean/United States Gulf Service. The New Zealand Line is a member of a joint service serving the trade between New Zealand and the Caribbean area in its Caribbean/East Coast/North America service.

North America. The New Zealand Line operates an intermodal service, the Australia New Zealand Container Line (ANZCL), between Australia, New Zealand and North America. From the West Coast North American ports, the cargos are carried by road and rail to destinations throughout Canada and the United States. Three vessels are employed in the service, New Zealand Line's container ship New Zealand Caribbean, and 2 time-chartered United Kingdom flagships, of which the 1500 TEU Discovery Bay represents a significant increase in service capacity, replacing the 766 TEU Dunedin late in 1985.

East Asia. The New Zealand Line is a member of the Australian and New Zealand/Eastern Shipping Conference, the New Zealand arm of which provides a direct container service between New Zealand and Japan. The New Zealand Line serves its 12 percent trade share by chartering container space aboard the 2 container ships Godwit (Japanese flag) and Aotea (U.K. flag) and the supplementary tonnage chartered to cover seasonal peaks.

South Pacific. The New Zealand Line manages and operates the Cook Islands/Niue/New Zealand Joint Shipping Service on behalf of the governments of the 3 countries. Two New Zealand Line vessels, Tiare Moana and Fetu Moana, serve the trade under charter to the New Zealand Ministry of Foreign Affairs.

The New Zealand Line also provides and administers the port agency operations in New Zealand in support of the Pacific Forum Lines (PFL). Solomon Islands-Papua New Guinea service and time-charters the Forum New Zealand to the PFL with financial help from the New Zealand Government.

Coastal trade. The New Zealand Line's roll-on/roll-off vessel, Coastal Trader, operates a weekly service between Auckland/Lyttelton and Dunedin.

Other activities. The New Zealand Line manages the LPG carrier Tarihiko and the seagoing crews for the MV Pacific Ataawhai and MV Northern Tide, and offshore and supply vessels employed in the Maui offshore gas field.

The New Zealand Line's Container Services Division offers a terminal agency service to operators at each of the 4 container terminals. The container terminal at Wellington is operated by Container Terminals Limited, a 51 percent owned subsidiary of the New Zealand Line.

The New Zealand Line is involved in various forms of broking activity in the international charter market, including ship broking and cargo broking, and acts as the New Zealand agent for a number of overseas shipping lines.

Registration of ships

As at 31 December 1984 there were 1990 ships on the New Zealand register, with a total gross tonnage of 328 622 tons and net register tonnage of 175 258 tons. This compared with 1885 ships totalling 307 783 gross tons and 164 164 net register tons in December 1983. New registrations of significance were the tug Rupe, the cargo vessel New Zealand Trader, the coastal gas tanker Tarihiko and the coastal oil tanker Taiko. Vessels removed from the register during the year included the rail ferries Aramoana and Aranui and the deep sea fishing vessels Cecilia Trosca and Finisterre which were sold to overseas buyers, the research vessel Tangaroa sold for scrapping, the tug Aorangi sold to the Ministry of Defence and the coastal fishing vessel Cornishman which was wrecked.

Table 22.6. REGISTERED VESSELS INVOLVED IN DOMESTIC AND OVERSEAS TRADE*

YearNumber of VesselsNet Registered TonnageNumber of Crew

* Ships in overseas trade mainly engaged in trans Tasman and Pacific Islands trading movements.

† 1 ton equals 2.83 cubic metres of cargo capacity.

Source: Ministry of Transport.

 Domestic
19801443,811516
19811443,811516
19821444,054517
19831546,260586
19841655,440516
 Overseas
19801675,609466
19811575,313439
19821575,808441
19831372,488356
19841273,777332

Port statistics

Statistics on shipping and cargo in New Zealand date back to 1841. In the earliest publications more prominence was given to the trade of New Zealand ports and the commodities handled than to the countries with which the young colony was trading. From 1968, however, a change in the method of collecting the statistics was made and from that date onwards full country data became available.

Earlier editions of the Yearbook record the massive growth in shipping that took place over the first 80 or so years since the founding of the colony and the associated port development. The decline in ship numbers since the 1920s accompanied by an increase in the tonnage of shipping can also be seen from the earlier tables. Special articles on shipping and cargo feature in the Yearbooks of 1895 (Shipping companies) and 1974 (New Zealand ports and shipping developments).

Shipping statistics today are compiled from returns lodged by port authorities. These returns also detail the amount of coastal cargo loaded or unloaded at ports. Overseas cargo details are obtained from Customs entry data.

In the year ended December 1984, 10 772 arrivals and 10 718 departures were recorded. The busiest port was Wellington with 2982 arrivals and 2981 departures although a good proportion of these figures come from the Cook Strait rail ferries and foreign fishing vessels calling at the port for registration and provisioning. By tonnage, Auckland handled over 8 million net registered tons of shipping in the 1984 year of which over 5 million net registered tons was for ships arriving in from overseas ports. Table 22.7 shows the arrivals and departures of vessels for the 1984 calendar year. The imbalance between arrivals and departures at minor ports is caused by difficulties in recording barge traffic and fishing vessels.

Table 22.7. ARRIVALS AND DEPARTURES BY PORTS FOR YEAR ENDED DECEMBER 1984

PortArrivalsDeparturesTotal
NumberNet TonnageNumberNet TonnageNumberNet Tonnage
Parengarenga7859,3588161,641159120,999
Houhora43,04443,04486,088
Mangonui107,61096,8491914,459
Opua2053,7182053,71840107,436
Whangarei3602 847 487x3582 803 165x718x5 650 652x
Auckland1,1038 198 860x1 057x8 111 848x2 160x16 310 708x
Onehunga146155,009147155,709293310,718
Tauranga4473 005 222x4452 982 931x8925 988 153x
Taharoa15466,91415466,91430933,828
Gisborne56199 871x56199 871x112399 742x
Port Taranaki5951 903 696x596x1 886 336x1 191x3 790 032x
Napier2941826 836x2951 833 369x5893 660 205x
Waverley6271,7646271,76412543,528
Wanganui38x14 635x3814,63576x29 270x
Wellington2,9827 926 968x281x7 918 760x5 963x15 845 728x
Other North Island ports21,5222152243,044
    Total, North Island6 156x26 942 514x6 110x26 772 076x12 266x53 714 590x
Tarakohe9780,1229880,808195160,930
Nelson3841 318 988x382x1314 856x766x2 633 844x
Picton1,7613 039 787x1,7573 022 429x3,5186 062 216x
Westport140172,728140172,728280345,456
Greymouth563,496553,4161116,912
Lyttelton9793 716 242x9743 697 410x1,9537 413 652x
Timaru2301 011 032x2301 013 258x4602 024 290x
Otago4412 652 717x4402 656 910x8815 309 627x
Invercargill (Bluff)3661 563 323x3701 617 636x7363 180 959x
Halfmoon Bay15143,94115i43,94130287,882
Chatham Islands114,334114,334228,668
    Total, South Island4,61613 606 710x4 608x13 627 726x9 224x27 234 436x
    Total, New Zealand ports10 772x40 549 224x10 718x40 399 802x21 490x80 949 026x

Shipping

Shipping movements are categorised to overseas or coastwise. Overseas arrivals and departures are those which have come directly from or have been cleared to a foreign port. Foreign fishing vessels working the Exclusive Economic Zone are also included in the overseas category. Coastwise arrivals and departures include the coastwise movements of overseas ships subsequent to the arrival from overseas and prior to final clearance, and also the movements of domestic shipping.

Table 22.8. OVERSEAS AND COASTWISE SHIPPING BY SELECTED PORTS FOR YEAR ENDED DECEMBER 1984

Selected PortsCoastwiseOverseas
No, of VesselsNet TonnageNo. of VesselsNet Tonnage
  (000) (000)
 Arrivals
Whangarei3112,00049847
Auckland4682,9176355,282
Tauranga2911,9661561,040
Port Taranaki1801,330415574
Napier2171,34777479
Wellington2,3066,4416761,486
Nelson193755191564
Picton1,7593,03228
Lyttelton6122,5853671,131
Timaru111792119219
Otago2191,836222817
Invercargill (Bluff)259911107652
                 Total all ports7 57926 5483 19314 001
Whangarei2981,83060973
Auckland6024,3254553,787
Tauranga1841,3332611,650
Port Taranaki1651,182431704
Napier2021,22393610
Wellington2,3506,8386311,081
Nelson199723183592
Picton1,7533,006416
Lyttelton6252,6173491,080
Timaru102662128351
Otago1861,3762541,281
Invercargill (Bluff)212642158976
                 Total all ports7 54426 4663 17413 934

Table 22.9 shows, for comparative purposes, shipping and cargo figures at periodic intervals. In the earlier years prior to the development of a rail network, the dependance on coastal shipping is obvious from the number of coastal arrivals and departures recorded compared with today. The reduction in numbers, however, has been offset by a tenfold increase since the turn of the century in the size of the ships engaged in coastal trade.

Table 22.9. SHIPPING AND CARGO TOTALS FOR SELECTED YEARS

YearCoastalOverseas
No. of Vessels*Net TonnageCargo TonnageNo. of VesselsNet TonnageCargo Tonnage

* Includes coastwise movements of vessels from 1980.

† Manifest tons to 1950, manifest tonnes to 1980, gross tonnes in 1984.

  (000)(000) (000)(000)
 Arrivals
187516,2581,498..926417..
190020,9096,872..616855..
192523,5195,5362,2552,3887,8322,487
195012,8334,3662,0371,5296,3643,617
19758,25711,0817,8213,69220,09810,273
19807,79622,7555,3322,89413,01410,425
19847,57926,5486,3013,19314,0017,938
 Departures
187516,9411,488..940418..
190020,8626,871..613825..
192523,5095,5492,2582,3817,832871
195012,8164,3052,0231,5396,2181,307
19758,29011,2077,2323,68819,9766,800
19807,79622,7045,1932,89713,09810,774
19847,54426,4666,2693,17413,9349,263

Overseas shipping

Overseas arrivals and departures are classified according to the country last visited and the next country to which the ship is cleared. Some port information within the foreign country is also recorded. This enables analyses by “previous' and 'next' country to be compiled. However, this should not be confused with the origin or destination of the ship or the cargo. For example, ships destined for UK/Europe will often be cleared for Panama upon their departure from New Zealand. Similarly, container vessels on the West Coast North America trade may call at an Australian port en route.

Table 22.10. OVERSEAS ARRIVALS AND DEPARTURES BY COUNTRY 1984

CountryArrivals from OverseasCleared for Overseas
Number of VesselsNet TonnageNumber of VesselsNet Tonnage

* Includes fishing vessels at sea.

Australia5955 232 2726264 935 901
China, Province of Taiwan30124,4562454,707
Fiji91487,03176339,343
Indonesia9139,36039232,370
Iran22269,13339425,220
Japan3553 142 5312092 348 351
Panama47506,36061814,318
Singapore65623,43165715,884
Tonga51145,02826113,527
United States of America68707,89071668,325
                 Total All Countries*3 19314 000 9343 17413 934 007

Trade routes

Since 1982 ports have been entering trade route information on the monthly returns of ship movements thereby enabling analyses of shipping and cargo by recognised trade routes to be undertaken.

Table 22.11. OVERSEAS ARRIVALS AND DEPARTURES WITH CARGO BY TRADE ROUTES 1984

Trade RoutesArrivalsDepartures
Number of VesselsNet TonnageCargo TonnageNumber of VesselsNet TonnageCargo Tonnage

* Includes Hawaii.

† Includes Mexico.

‡ Excludes fishing vessels at sea but includes coastwise visits of overseas ships.

United Kingdom-Europe3344 531 679608,2993424 673 1351 094 132
West Coast North America*1761 740 517571,9561451 338 019159,200
Japan and Asia1,0048 405 8281 744 9299638 002 7945 519 283
Trans Tasman8014 659 8812 131 6068765 619 861855,510
Singapore, India, Malaysia and Persian Gulf2702 414 6471 530 6052492 142 422558,042
East Coast North America1982 296 322350,2971621 981 729269,240
Africa769,73646,0431028,1997,091
West Indies and South America62345,889143,51777496,048121,617
Pacific Islands5323 137 546730,4705473 212 068633,397
Miscellaneous55,266-53,823-
                 Total3 38927 607 3117 857 7223 37627 498 0989 217 512

Under this scheme, the New Zealand ports servicing the various trade routes can be identified. The table following shows overseas departures by ports and trade routes. Note that the number of departures relates to the final clearance for overseas by the vessels concerned, intermediate departures from coastwise movements of overseas ships are not included in the table.

Table 22.12. OVERSEAS DEPARTURES BY PORTS AND TRADE ROUTES 1984*

Trade RouteNumber of VesselsNet TonnageCargo TonnageNumber of VesselsNet TonnageCargo TonnageNumber of VesselsNet TonnageCargo Tonnage

* Figures exclude fishing vessels but include coastwise movements of overseas ships.

† Includes Hawaii.

‡ Includes Mexico.

 AucklandTaurangaNapier
United Kingdom-Europe1141,75427022156403622077
West Coast North America6156166810217679
Japan and Asia1941,46527412694577985564365
Trans-Tasman2041,515153121776340201106
Singapore, India, Malaysia and Persian Gulf5750210216106484032974
East Coast North America75924129213-7353
Africa28-122383
West Indies and South America198622310464132
Pacific Islands155702196613691012918157
 WellingtonLytteltonOtago
United Kingdom-Europe541,14316323360472456290
West Coast North America35286381488624610
Japan and Asia106853808272842039460138
Trans-Tasman16190066113606878860572
Singapore, India, Malaysia and Persian Gulf18128213114237135
East Coast North America4864510835732126524
Africa12-14----
West Indies and South America32811140547110
Pacific Islands21206201351,0551251721413
Miscellaneous31----11-

Coastal cargo

All cargo is now measured in gross tonnes, instead of manifest tonnes, as part of a move towards better international comparability. Commodities recorded under coastal cargo have been limited to those items either carried in bulk or readily identifiable from ships' manifests.

For the year ended 31 December 1984 a total of 6.3 million tonnes of cargo was moved between New Zealand ports. Whangarei loaded out 2.4 million tonnes of refined petroleum products while Port Taranaki loaded 1.1 million tonnes of petroleum crude and liquified petroleum gas for other ports. Bulk cement totalling 696 000 tonnes was carried from works near Whangarei (254 000 tonnes), Tarakohe (132 000 tonnes), Westport (304 000 tonnes) and Otago (5000 tonnes) during the year. Rail ferry traffic between Wellington and Picton accounted for 688 000 tonnes of southbound cargo and 672 000 tonnes northbound.

Table 22.13. COASTAL CARGO—MAJOR ITEMS CARRIED 1984

CommodityUnloadedLoaded
 gross tonnes
Cement665,372695,658
Coal and coke9,345472
Petroleum products3 607 8283 614 508
Sand and shingle41,01558,959
Grain7,80934,036
Motor vehicles312,899322,131
Container goods271,021243,181
Other goods1 384 9471 299 570
                 Total6 301 2366 268 515

Overseas cargo

Cargo loaded during the 1984 year for overseas destinations totalled 9.3 million tonnes of which 2.3 million tonnes were ironsands from Taharoa and Waverley. Tauranga loaded 1.4 million tonnes and Auckland, 1.2 million tonnes while total cargo loaded for overseas at South Island ports amounted to 2.7 million tonnes.

Imported cargo totalled 7.9 million tonnes for the year ended 31 December 1984. Of this, Auckland unloaded 2.0 million tonnes, Whangarei 1.9 million tonnes and Tauranga 0.9 million tonnes. South Island ports accounted for 1.8 million tonnes of inwards cargo from overseas.

Table 22.14. OVERSEAS CARGO—COMMODITIES CARRIED 1984

SITC SectionUnloadedLoaded
Cross Tonnesc.i.f.Cross Tonnesf.o.b.
  $(m) $(m)
0. Food and live animals475 305362 530 7554,375
1. Beverages and tobacco29,58910617,33827
2. Crude materials1 77 7025453 846 9861,959
3. Mineral fuels3 137 5221,536392,81045
4. Animal and vegetable oils43,53563119,23093
5. Chemicals and related products968,2161,328106,303409
6. Manufactured goods1 045 8222,2161 516 9891,428
7. Machinery and transport equipment327,2993,51744,708629
8. Miscellaneous manufactured articles63,94694729,438465
9. Commodities and transactions not classified elsewhere4,425296713,881238
                 Total7 973 36011,0919 318 4389,667

Port and country data for cargo loaded are analysed in Table 22.15 which gives the gross tonnage of export cargo handled by the main exporting ports of New Zealand and the total tonnage handled. The country referred to in the table is the country of destination of the cargo as declared on the export documentation.

Table 22.15. OVERSEAS CARGO LOADED BY SELECTED PORTS AND COUNTRIES

CountyAucklandTaurangaNapierWellingtonLyttletonOtago
 gross tonnes
Austria3,19919878348165193
Australia131,012239,9914,84837,47860,39336,415
Bahrain8452436-642-
Belgium9,1976152497,7484,5849,476
Canada15,862-9,71017,2951,1346,519
Chile27211,08312718324927
China, Province of Taiwan12,07448,79811,8766,157-1,592
China, People's Republic of57,69433,18225,6786509,3207,663
Denmark1,33477219743744767
Egypt2,153-3,42289315005
Fiji52,18112,6531-1,664-
Finland1,27845113559161170
France12,7521,8436,40612,2587,49114,016
Germany, Federal Republic of28,6283,6812,46611,6785,10512,674
Hong Kong5,49327,6134,037974,438174
India3,3552,10019,13854012,643130
Indonesia16,22347,86919,1861,24911,326-
Iran16,86821,30935,7233605,703307
Iraq41710,120--903-
Italy7,5962,39282716,5526,7148,907
Japan193,889427,097292,30082,557403,383137,230
Korea, Republic of17,16124,63621,6196,54817,3083,144
Malaysia11,68469,1481,7016415,24863
Mexico6,77918,251-3442,54193
Netherlands11,2873,3462,2088,2513,1295,712
New Caledonia10,3095,361--9-
Papua New Guinea38,0283,4327,2302059,6524,342
Saudi Arabia7,4681,7399,1735,6542,1021,424
Singapore15,93023,3147,7931,53832,434726
Spain4,052922354,5418152,343
Thailand3,86616,5487054662-
Tonga6,22110093---
United Kingdom124,8702,3658,230123,82038,70276,531
U.S.A.190,22411,7021,164108,88632,37717,821
U.S.S.R.4,1293,79513,5431,0335,5758,564
                 Total All Countries1 178 2481 373 955602 527488 655727 346373 091

Merchant navy qualifications

The Marine Division of the Ministry of Transport conducts regular examinations for merchant service personnel who wish to obtain certificates of competency as master, mate, or engineer. There are different standards of certificates for foreign-going, home trade, and restricted limits ships. The foreign-going certificates as master, first mate, second mate, and first- and second-class steam and motor engineer, are valid in most Commonwealth countries. Examinations are also conducted for skippers, mates and engineers of deep sea, coastal, and inshore fishing boats. Voluntary examinations are held for yachtsmen.

Nautical schools

The Marine Division of the Ministry of Transport maintains nautical schools in Wellington and Auckland. Courses leading to the examinations for all grades of masters and mates certificates are available. Courses are also held for able seamen and ordinary seamen, for yachtsmen, and in radar.

Ship survey statistics

The Marine Division of the Ministry of Transport carries out surveys of ships as required by the Shipping and Seamen Act 1952. In the calendar year 1984, 1314 certificates of survey were issued, compared with 1243 in 1983, 1301 in 1982 and 1294 in 1981.

Sixty-three foreign-flag joint venture fishing vessels were surveyed and issued with an exemption certificate and certifying letter in lieu of a certificate of survey for the 1984-85 season, compared with 77 for the 1983-84 season and 72 for the 1982-83 season.

During 1984, 66 certificates were issued under the International Convention for the Safety of Life at Sea 1960, to which New Zealand is a signatory, compared with 49 in 1983, and 112 in 1982. In addition, 46 surveys were carried out on overseas registered ships towards the issue of certificates under the International Convention for the Safety of Life at Sea 1974 and the 1978 Protocol to that convention.

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 some 7000 kilometres of coastline and the waters in harbours and lakes controlled by the Ministry of Transport there are 194 navigational aids. These aids comprise 12 staffed lighthouses, 93 automatic lights, 71 day beacons, 6 navigational buoys, 1 fog signal, and 11 radio beacons. Their provision, maintenance, and servicing is a responsibility of the Marine Division of the Ministry of Transport, and involves an expenditure of approximately $2 million annually. Lighthouse tenders, aircraft, helicopters, and road transport, along with a number of workshops, are used to maintain this service to give the mariner reliable aids to navigation. Light dues collected from overseas and coastal ships meet the running costs of the service.

Wrecks

The Ministry of Transport investigates the circumstances of any wreck or shipping casualty which occurs in New Zealand waters. In cases which involve loss of life or serious damage, a Superintendent of Mercantile Marine, or other person appointed for the purpose, carries out a preliminary inquiry into the cause and circumstances of the wreck or casualty. The report of a preliminary inquiry is sent to the Minister of Transport, who may order a formal investigation to be held. Such an investigation is usually held by a judge, assisted by technical assessors, who has the power to cancel or suspend the Certificate of Competency of any officer whose wrongful act or default has resulted in or contributed to loss or damage.

In the case of any wreck on coasts, rivers or lakes, a Receiver of Wreck for that district has extensive powers for the preservation of life and protection of property. Contrary to popular belief a wreck or any article belonging to it remains the property of the owner until disposed of by that person, and it is illegal to plunder or purloin any items of wreckage.

Shipping casualties

Table 22.16. SHIPPING CASUALTIES FOR YEAR ENDED DECEMBER 1984

Type of ShipMachinery Breakdown and MiscellaneousCapsizing and CollisionStranding and GroundingFounderingFireTotal
Passenger-34119
Cargo242-210
Fishing9131712960
Dredges, tugs, etc.2-2--4
Pleasure16875442011318
             Total18195693323401

Fishing boat casualties resulted in the loss of 18 vessels with the loss of 4 lives. Pleasure boat accidents resulted in 18 deaths, including 2 deaths in river rafting mishaps.

Twenty preliminary inquiries were carried out by superintendents of mercantile marine. Three formal investigations were ordered. These were into the loss of the fishing vessel “Janet D” south of Cape Palliser on 31 August 1983; the loss of the fishing vessel “Hawea,” south west of kahurangi Point on 29 June 1984 and the stranding of the fishing vessel “Resolution II” near Pillar Point, Cape Farewell, also on 29 June 1984. No loss of life was involved in these casualties.

Other major casualties included the loss of the Taiwanese fishing vessel “Ho Chun No. 1” which was struck by the Japanese fishing vessel “Fukucho Maru No. 38” about 32 miles south of South West Cape, Stewart Island on 9 February 1984 and foundered. All crew members were rescued.

Safety of ships

The Shipping and Seamen Act 1952, administered by the Ministry of Transport, is primarily concerned with the safety of ships and those who sail in them. This Act contains the necessary authority for implementing the provisions of several international conventions to which New Zealand is a signatory and also contains provisions relating to the safety of all ships plying in New Zealand coastal waters, and all New Zealand registered ships on international voyages.

Marine pollution

The Marine Pollution Act 1974 gives effect to a number of international conventions relating to oil pollution, the most important of which are the International Convention for the Prevention of Pollution of the Sea by Oil 1954, as amended in 1962 and 1969, and the International Convention on Civil Liability for Oil Pollution Damage 1969.

This Act is currently being revised to give effect to Marpol 73/78 (International Convention for the Prevention of Pollution from Ships 1973 as modified by its Protocol in 1978).

The 1954 convention is concerned with the prevention of oil pollution resulting from normal shipping operations. Marpol 73/78 not only strengthens the 1954 convention but also introduces measures to mitigate the effects of pollution resulting from tanker accidents and deals with pollution of the sea by substances other than oil.

There is a contingency plan to deal with a major spillage of oil in New Zealand waters and oil pollution control equipment, including dispersants, is stockpiled in New Zealand to deal with such an eventuality.

The Marine Pollution Act also contains provisions for controlling the dumping of waste at sea from ships, and whilst prohibiting the dumping of substances known to be harmful to the marine environment allows the Ministry of Transport to issue permits for the dumping of other wastes, such as dredging spoil, under appropriate conditions and in approved sites.

22.3 Civil aviation

New Zealand ranks amongst the leading nations of the world in terms of air transport per head of population. Modern aircraft provide regular flights on a network of internal air services operated by the domestic division of Air New Zealand supplemented by private operators, while the international division of Air New Zealand competes with other international airlines and provides links with London, Los Angeles, and various nations in the Pacific and South East Asian regions.

Early days of commercial aviation in New Zealand, and the growth and development of the inter national service, are described briefly in the 1976 and earlier editions of the Yearbook.

Air transport services

The state-owned airline, Air New Zealand, is the major domestic air service operator. Safe Air, an Air New Zealand subsidiary, provides a dedicated freight service. The Mount Cook Group Ltd and Newman's Airways Ltd provide mainly tourist-orientated passenger services. There is also an increasing number of commuter operators providing regular services throughout the country. In addition, at most aerodromes there are light aircraft operators licensed for charter services. Some of these are aero clubs and flying schools providing facilities for flight training and private flying.

International air services are operated by Air New Zealand, together with Qantas, Pan American World Airways, UTA French Airlines, Singapore Airlines, British Airways, Continental Airlines, Japan Airlines, Air Pacific, Polynesian Airlines, Air Nauru, Canadian Pacific Airlines and Aerolineas Argentinas.

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.

Air services. The Air Services Licensing Act 1983 came into effect on 1 December 1983, replacing the 1951 Act. It established a new Air Services Licensing Authority, a 3-person independent body, with the primary function of receiving and determining applications for air service licences. Under the Act, an air service licence is essential for any air transport or aerial work service conducted for hire or reward. There is a right of appeal against the decisions of the Air Services Licensing Authority to the Administrative Division of the High Court. The legislation implements qualitative licensing for all domestic air services and seeks to maximise efficiency by removing quantitative constraints upon competition.

International air services are governed by intergovernmental air transport agreements and the International Air Services Licensing Act 1947, and the Civil Aviation Act 1964. International air tariffs are administered pursuant to the Act.

New Zealand is a party to the Warsaw Convention of 1929, as amended at The Hague in 1955, and these conventions define the financial liabilities of international air carriers towards their passengers. New Zealand has signed but has yet to ratify the Guatemala City Protocol which, although not in force, raises the limits of liability from $15,000 to $100,000. Air New Zealand is also a party to the airline agreement known as the Montreal Agreement, which for travel to and from the United States of America imposes a limit of US$75,000. This limit is now being extended world-wide in its application, pending the entry into force of the Guatemala City Protocol. Liabilities of domestic air carriers are governed by the Carriage by Air Act 1967 and the Carriage of Goods Act 1979.

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 have entered into 24 separate joint-venture agreements with the Crown.

The Aviation Crimes Act 1972, which came into full force in March 1974, gave effect 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.

In 1976 an amendment to the Civil Aviation Act 1964 established the Aviation Security Service as a branch of the Civil Aviation Division of the Ministry of Transport. The Aviation Security Service was charged with the screening of passengers and baggage and, where necessary, the searching of passengers, baggage, cargo, aircraft, aerodromes, and navigational installations. It was also to carry out security patrols, and in general, review, investigate, and inquire into security techniques, systems, devices, etc., co-operating where necessary with the Police, airport officials, government departments, and other responsible authorities.

Air navigation services and facilities

The Civil Aviation Division of the Ministry of Transport is responsible for the provision of all civil aviation air navigation facilities in New Zealand and at Rarotonga, Cook Islands.

These navigation facilities include electronic aids such as non-directional medium frequency beacons (NDB), very high-frequency omni-directional radio ranges (VOR), instrument landing systems (ILS), surveillance radar equipment (SRE), distance measuring equipment (DME), and very high frequency direction finding equipment (VDF). Visual aids include the visual approach slope indicator systems (VASIS) and precision approach path indicator (PAPI).

To promote the safe, orderly, and expeditious flow of air traffic the Civil Aviation Division has an extensive ground services organisation comprising air traffic services, aeronautical communication services, airport rescue fire services, and aviation security services. The Ground Services Branch also plays a major role in the search and rescue and aerodrome emergency organisations. Elements of the Ground Services Branch are located at most aerodromes served by regular scheduled air transport services in New Zealand. In addition to control towers and flight service stations at aerodromes, area control and flight information centres are established at Auckland, Wellington, and Christchurch airports and provide services to en route aircraft throughout the country. Rescue co-ordination centres are established at Auckland, Wellington, and Christchurch and are responsible for co-ordinating major search and rescue operations in their respective regions.

The Flight Standards Branch is responsible for airworthiness, flight supervision and standards and is also responsible for the licensing of all categories of aircrew and aircraft ground personnel. A calibration flight with specially equipped aircraft is continuously engaged on the checking and calibration of all air navigation facilities.

An Aeronautical Information Service Section prepares and publishes a New Zealand aeronautical information publication, notices to personnel, and information circulars, and collaborates with the Lands and Survey Department in the production of aeronautical maps and charts.

An aeronautical training college is established at Christchurch International Airport and regular courses are conducted in air traffic services, meteorology, telecommunications engineering, aeronautical communications, and rescue fire procedures.

Air New Zealand

Domestic air services. Air New Zealand provides regular services to centres throughout the North and South Islands with a fleet consisting at 31 March 1983 of 10 Boeing 737s and 15 Fokker Friendships. A Boeing 767 was introduced into domestic service in September 1985.

Table 22.17. DOMESTIC OPERATIONS OF AIR NEW ZEALAND

ItemYear Ended MarchPercentage Change
1983198419851983-841984-85

Source: Ministry of Transport.

Passengers carried2 029 9202 262 2182 602 793+11.4+15.1
Passenger kilometres created (million)15271,6441838+7.7+11.8
Revenue passenger kilometres (million)10131,1301,304+11.5+15.4
Revenue passenger load factor (%)66.368.771.0+3.6+3.3
Revenue tonne-kilometres created (million)180190212+5.6+11.6
Overall tonne-kilometres used (million)
    Passenger and baggage
    Freight114124141+8.8+13.7
    Mail
Overall revenue load factor (%)63.365.166.4+2.8+2.0

International air services. In the international field Air New Zealand provides services to Sydney, Brisbane, Melbourne, Hobart, Perth, Norfolk Island, New Caledonia, Tahiti, Cook Islands, Western Samoa, Fiji, Tonga, Singapore. Japan, Honolulu. Vancouver, Los Angeles and London. Its international fleet comprises 1 Douglas DC 8-54F, 1 Boeing 767, and 5 Boeing 747-200s, while Boeing 737-200s are used on short-haul Pacific operations.

Table 22.18. INTERNATIONAL OPERATIONS OF AIR NEW ZEALAND

ItemYear Ended March
198319841985

Source: Ministry of Transport.

Passengers carried944,905997,2431 100 009
Passenger kilometres flown (million)5,0435,5186,092
Seat kilometres available (million)8,1058,4728,770
Revenue passenger load factor (percent)62.265.169.5
Cargo and airmail tonne-kilometres (million)217265x286
Total revenue tonne-kilometres (million)696788865
Total revenue load factor (percent)63.568.773.8

Table 22.19. AIR NEW ZEALAND REVENUE AND EXPENDITURE

Item19841985

* Includes aircraft lease rentals, depreciation and amortisation, interest charges, and exchange losses.

 $(thousand)
Revenue—Passenger664,157847,568
    Cargo and Mail127,800156,702
    Charter16,38721,823
    Contract61,46177,696
    Other30,87156,216
'                 Total revenue898,925x1,160,005
Expenditure—
    Flying operations249,400308,346
    Engineering maintenance71,86993,860
    Aircraft and traffic servicing134,133159,261
    Passenger services73,13086,015
    Sales and marketing153,953200,864
    Administration and general36,17841,051
    Other*100,971x116,992
                 Total expenditure819,634x1,006,389
Profit or Loss from year's operations before extraordinary items and tax credits79,291153,616

Summary of domestic and international operations:

Table 22.20. SUMMARY OF DOMESTIC SCHEDULED AIR SERVICES

December YearKilometres FlownPassengers CarriedPassenger- kilometresFreight Carried (Tonnes)Freight (Tonne- kilometres)Mail (Tonne- kilometres)
 (000)(000)(000)(000)(000)(000)
198026,1052,4781 17188449.0x24 714x1,668
198125,6082,3561 134 23844.925,1981,378
198226,3622,2481 084 897x38.622,4621,397
198328,0032,4291 167 54536.821,9181,391
198434,8372,9501 39711545.725,4831,411

Table 22.21. SUMMARY OF INTERNATIONAL SCHEDULED AIR SERVICES

December YearPassengers CarriedFreight Carried*Mail Carried

* Includes excess baggage.

 (000)tonnestonnes
19801,81462,2672,890
19811 776x64 042x3 016x
19821,66470 484x3,099
19831,69376 903x3 256x
19841,85188,1173,502

International air services

Air New Zealand's international services have already been described. Other services through New Zealand include: Pan American World Airways—from the United States through Honolulu, to Auckland and beyond to Sydney; British Airways—from the United Kingdom via Australia to Auckland; Union de Transport Aeriens—from Tahiti to Auckland and beyond to Noumea; Qantas—a full range of trans- Tasman services; Singapore Airlines—direct from Singapore; Air Pacific—from Fiji to Auckland; Polynesian Airlines—from Apia via Tonga to Auckland; Continental Airlines—from the United States via Honolulu to New Zealand and beyond to Sydney; Air Nauru from Nauru to Auckland; Japan Air Lines from Tokyo to Auckland via Nadi; Aerolineas Argentinas—from Buenos Aires to Auckland; and CP Air—from Toronto via Honolulu to Auckland.

A minority financial interest is retained by Air New Zealand in the South Pacific companies Polynesian Airlines Ltd (PAL) and Air Pacific Ltd. Cook Islands Airways is a subsidiary company of Air New Zealand.

Table 22.22. INTERNATIONAL SCHEDULED AIR SERVICES

Sector and TrafficDecember 1982December 1983December 1984
InOutInOutInOut

* Auckland. Wellington, or Christchurch to Melbourne or Brisbane (and vice versa), Wellington or Christchurch to Sydney (and vice versa); Christchurch to Hobart (and vice versa): and Auckland to Perth, Darwin. Adelaide or Townsville (and vice versa)

† Other Pacific short-haul sectors are Auckland to Noumea. Norfolk Island, Tonga. Suva, Papeete, Pago Pago, Rarotonga, or Apia (and vice versa), and includes all traffic to/from Rarotonga international Airport.

‡Long-haul sectors are Auckland to Nauru. Honolulu. Singapore, San Francisco, Los Angeles, Hong Kong. Tokyo, London and Buenos Aires (and vice versa).

Source: Ministry of Transport.

Trans-Tasman—
    Auckland-Sydney-Auckland—
    Flights1,1221,0841,0661 063x1,1151,110
    Passengers196,562190,209207 578x176 223x240,562230,364
    Freight and mail (tonnes)9,26912,86310 057x12 763x11,79016,068
    Kilometres flown (000)2,4212,3392,3001 899x3,1802,413
Other trans-Tasman*
    Flights1,7291,6991,5111 515x1,5021,498
    Passengers353,142368,724350 668x354 093x375,305377,875
    Freight and mail (tonnes)9,41414,7898 851x17 489x10,46819,339
    Kilometres flown (000)4,2834 21053 831x3 842x4,1933,781
Pacific short-haul—
    New Zealand-Nadi-New Zealand—
    Flights600598641664622648
    Passengers61,20464,98964 004x68 570x74,89881,568
    Freight and mail (tonnes)1,6922,6981 731x3 490x1,8973,226
    Kilometres flown (000)1,2941,2891,3821,4321,3411,397
    Other sectors
    Flights941974908881778761
    Passengers67,00163,04166 398x62 741x72,49463,297
    Freight and mail (tonnes)1,6133,1161 817x1 899x1,6881,924
    Kilometres flown (000)1,6361,7281,6001,5481,3751,340
Long-haul
    Flights103310711,1951,1971,2221,221
    Passengers183,302167,298211 058x196,090193,841191,194
    Freight and mail (tonnes)6,67713,3219 821x15,93711,44715,852
    Kilometres flown (000)7,2097,4807,2407,3116,8988,223

Table 22.23. TRAFFIC ON INTERNATIONAL SCHEDULED SERVICES SHOWN BY AIRPORT IN NEW ZEALAND*

Airport and Type of Traffic198219831984
Into New ZealandOut of New ZealandInto New ZealandOut of New ZealandInto New ZealandOut of New Zealand

* Passengers and freight transit are excluded.

Source: Ministry of Transport.

Auckland International     Airport —
    Passengers654,093632,589682,634644,353746,646730,194
    Freight (tonnes)22,60237,32323,50641,49730,41745,549
    Mail (tonnes)1,7969931,8961,0571,9931,197
Wellington—
    Passengers70,39271,78064,27063,00960,30359,663
    Freight (tonnes)2,0063,0862,0393,7761,8513,018
    Mail (tonnes)115761435612567
Christchurch International     Airport—
    Passengers136,726149,892126,624135,098140,228148,618
    Freight (tonnes)2,0835,2532,2435,5602,7206,419
    Mail (tonnes)625662446643

Table 22.24. DISTANCES FROM AUCKLAND AIRPORT TO SELECTED OVERSEAS DESTINATIONS*

DestinationDistance

* These are airport-to-airport great circle distances.

Source: Ministry of Transport.

 km
Adelaide3,247
Apia2,893
Brisbane2,293
Hong Kong9,145
Honolulu7,086
Los Angeles10,480
Melbourne2,635
Nadi2,156
Niugini4,126
Norfolk Island1,091
Noumea1,859
 km
Pago Pago2,902
Papeete4,093
Perth5,400
Rarotonga3,013
San Francisco10,503
Singapore8,410
Suva2,141
Sydney2,158
Tokyo8,837
Tonga2,004
Townsville3,359

Distances to the Australian cities from the airports at Wellington and Christchurch differ slightly from the Auckland figures given above: Wellington-Sydney, 2235 km; Wellington-Melbourne, 2589 km; and Wellington-Brisbane, 2508 km; Christchurch-Sydney, 2124 km; Christchurch-Melbourne. 2413 km; Christchurch-Brisbane, 2495 km; and Christchurch-Hobart, 2024 km.

Air freight

Air freight involves mostly exports and imports to and from Australia and U.SA. Exports are mainly made-up textiles, meat, fish and live animals, notably racehorses. Air-freighted imports consist mainly of machinery, scientific instruments, pharmaceutical products, and textiles.

Table 22.25. OVERSEAS CARGO TRANSPORTED BY AIR FOR YEAR ENDED DECEMBER 1984

CommodityLoadedUnloaded
Gross Tonnesf.o.b.Cross Tonnesc.i.f.

* Not elsewhere specified.

  $(000) $(000)
Food and live animals26,476203,8422,94472,236
Beverages and tobacco182570239793
Crude materials1,14235,8272588,405
Mineral fuels364530365
Animal and vegetable oils, fats1312311
Chemicals and related products n.e.s.*2,62051,1963,153161,326
Manufactured goods9,927145,6757,830205,187
Machinery and transport5,831318,43512,817837,075
Miscellaneous manufactured articles9,214311,7606,715381,124
Commodities n.e.s.*88,476253184,639
                 Total55 4371.075,82934 2511,851,461

Table 22.26. OVERSEAS CARGO TRANSPORTED BY AIR FOR YEAR ENDED DECEMBER 1984

Country of DestinationLoadedUnloaded
Gross Tonnesf.o.b.Cross Tonnesc.i.f.

* Includes other countries.

 $(000)$(000)
Australia31,477515,81918,675715,090
Canada61813,96029537,032
Chile5516,189..24
Cook Islands5205,0831,0765,656
Fiji1,06517,0821696,997
United Kingdom1,17240,1132,662216,702
Hong Kong1,53522,78737524,441
Japan3,86233,8331,877105,487
Korea (Republic)756,314282,037
Malaysia2935,487361,900
New Caledonia4192,424379
Papua New Guinea2518,03718630
French Polynesia2,46514,25849169
Singapore1,60722,91935422,417
U.S.A.7,360245,7864,147432,974
                 Total*55 4371,075,82934 2511,851,461

Aerial work

Aerial topdressing as a means of improving hill pastures and checking and preventing soil erosion began commercially in 1949. The industry developed rapidly and is a major activity in spring and autumn. The extent of aerial topdressing in any particular year is largely a reflection of the level of farm incomes.

The amount of aerial topdressing by established operators has been declining since 1980 and now only 25 percent of total fertiliser and lime application is applied from the air. Since the introduction of the Air Services Licensing Act 1983, some 51 'owner-operators' have been granted aerial work licences, many of them former employees of established larger companies.

Aerial spraying is also a significant aerial work activity, with helicopters as the predominant 'tool', amounting to 76 percent of total spraying work.

Flight training is an aerial work activity easily affected by economic circumstances and total training hours have also been declining since 1979-80 when fuel costs increased markedly.

Table 22.27. SUMMARY OF AERIAL WORK OPERATIONS

Aerial WorkYear Ended 31 December
19801981198219831984

* March year.

Hours flown (other than training)144,048128,406114,775106,302104,100
Number of operators1076475105119
Material distributed—
    Fertiliser and lime (tonnes).1 205 3091 034 067879,150835,319811,448
    Seed (tonnes)2,1894,3862,7632,2132,064
    Spray (litres)49 284 63941 292 88738 823 17345 528 20355 954 934
    Animal poison (tonnes)4,5376,0252,6963,7294,710
    Supplies (tonnes)4,9224,9835,0472,3336,636
    Fencing (tonnes)2,7015,1803,5502,0482,533
    Dusts (tonnes)38541932722942
    Prills (tonnes)20283193144740
    Miscellaneous (tonnes)9,1337,78417,39117,69319,560
    Flight training (hours flown)*132,300114,500107,70093,536107,100

22.4 Railways

The New Zealand Railways Corporation is responsible for a network of railways extending over 4273 kilometres and linking almost all the principal centres of population in New Zealand. There are also a number of short private railways principally serving collieries and other industrial undertakings. The corporation also operates road services over more than 10 000 route kilometres of highway, and a rail and road vehicle and passenger ferry service across Cook Strait between Wellington and Picton.

The title New Zealand Railways is used for trading purposes.

As from 1985 certain information previously published in the Yearbook has been classified as confidential. Inquiries should be directed to the New Zealand Railways Corporation if more information is required.

Railways development

Recent years have seen notable progress in the development of the railway 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, computerised monitoring of freight wagons and rail traffic, 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 completion of the 9.5 km Mangaweka-Utiku deviation on the North Island Main Trunk line in

1981, and the opening of the Porootarao tunnel in 1980, have resulted in improved clearances and greater speed for modern railway rolling stock through the North Island Main Trunk line. Since a Traffic Monitoring System (TMS) was established nationwide in 1980, the system has performed to expectations and other stages are being implemented in a continual programme.

One of the most important decisions made in recent years has been the approval in December 1981 to start design work for electrification of the North Island Main Trunk railway between Te Rapa and Palmerston North. The 6-year electrification programme will cost an estimated $180 million, and tenders have been called internationally and locally for contracts covering locomotives, traction, overhead and power supplies, signals and communications, earthworks and tunnelling. As a third of all New Zealand main rail traffic passes over the main trunk line, electrification will result in reduced fuel costs and faster travelling times.

In the suburban passenger area, work has been completed on the extension of the suburban electrification from Paekakariki to Paraparaumu. The $1.9 million project was opened in May 1983. The first of the new multiple units, built by Ganz-Mavag of Hungary, went into service in 1982. The 44 2-car Hungarian units will improve suburban rail operations in the Wellington area.

The total route length of railways vested in the New Zealand Railways Corporation and open for traffic at 31 March 1984 was 4273 kilometres—2554 kilometres in the North Island and 1718 in the South Island. In addition, the corporation was working traffic over a further 7 kilometres of railways owned by 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 107.3 route kilometres of railways electrified on the 1500-volt direct current overhead contact system was in use at 31 March 1984.

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 then 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 (or, now, the Railways Corporation) to lay the tracks and install signals.

Track. All track is laid to a gauge of 1067 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 re-lay these lines with heavier rails from the main lines. Treated Pinus radiata sleepers, laid about 1480 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 2600 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 metres above the bed of the Mohaka River. Twenty-one New Zealand railway viaducts carry the rails more than 33 metres above the streams they cross.

Tunnels. There are 167 railway tunnels in New Zealand. The 3 longest tunnels are Kaimai (8.9 km), between Tauranga and Morrinsville; Rimutaka (8.8 km), between Upper Hurt and Featherston; and Otira (8.5 km), between Otira and Arthur's Pass.

Cook Strait Rail/Air Freight Service. An air freight service across Cook Strait was commenced in February 1947. In recent years this service has been considerably affected by the alternative service offered by the rail ferries, and has operated it a loss. The contract has now been withdrawn.

Cook Strait Rail/Ferry Service. Two ferries carrying road and rail vehicles and passengers are operated by the Railways Corporation between Wellington and Picton: The Arahura, and Aratika. A third vessel, Arahanga, carries rail wagons and road freight vehicles.

The 20-year-old Aramoana and the 17-year-old Aranui were replaced by the Arahura, which was built by the Danish firm Aaalborg Vaerft. A contract for the $45 million ferry was signed in January 1982, and it arrived in New Zealand in November 1983.

The new ferry virtually doubles the payload of both vessels and is capable of carrying 60 railway wagons, 100 cars and 800 passengers. There is room for 232 cars or commercial vehicles if no railway wagons are aboard.

It makes the Wellington-Picton crossing in 3 hours, compared to 3 hours 20 minutes taken by the other Cook Strait ferries.

Round trips made by the rail ferry fleet for the year ended 31 March 1985 totalled 1708.

Rolling stock

The Railways Corporation's fleet of goods and livestock wagons at 31 March 1985 totalled 23 267. 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 corporation another 242 privately-owned wagons are also in use, mainly for petrol and cement traffic.

Passenger services

In addition to the normal suburban services, New Zealand Railways Corporation run 3 prestige passenger trains. These are the Silver Fern, Northerner, and Southerner.

The Silver Fern daylight express railcar runs 5 days a week, between Auckland and Wellington. This service is licensed, air conditioned, and has hostesses.

The Northerner express runs nightly between Auckland and Wellington, and has both day and sleeping cars. The train, which has a licensed buffet car, stops at many of the smaller towns not served by the Silver Fern.

The Southerner runs 6 days a week between Christchurch and Invercargill. This train has hostesses and a buffet car.

A service also runs daily between Wellington and Gisborne, Christchurch and Picton, and Christchurch and Greymouth. Provincial passenger services to other districts are operated by Railways Road Services.

Motive power

Dieselisation of New Zealand Railways was begun in 1949 and completed by 1971. The most powerful diesel-electric locomotives in service are the American-built “DX” class.

The rebuilding and modernising of earlier “DA” and “DB” class locomotives under contract by the Clyde Engineering Company in South Australia has been completed. All 90 locomotives having returned to New Zealand are now in service as “DC” or “DB” classes.

All 18 units of the “DSG” class shunting locomotives built by the Toshiba Corporation of Japan are in service, and a single engined version of these locomotives known as the “DSJ” is also in service. Designed to replace the remaining rigid wheelbase shunters still in service, the “DSJ” was a joint project with Toshiba and New Zealand Railways. Toshiba supplied the engine-generator sets and other components. The NZR carried out the assembly work and built the structures.

A new programme for overhauling the electric multiple unit coaches (English stock) at Wanganui East Town Railway Workshops was introduced in 1983 and is continuing.

The number of locomotives in service at 31 March 1985 totalled 447, comprising 400 main line diesel-electric, 185 diesel shunters of various types, 11 electric, and 2 steam locomotives.

Revenue and expenditure

Figures in Table 22.28 cannot be compared with data published in previous editions of the Yearbook because from 1985 certain information has been classified as confidential. Figures for 1983 and 1984 have been recalculated according to the new system and, therefore, are comparable.

Table 22.28. NEW ZEALAND RAILWAYS CORPORATION REVENUE AND EXPENDITURE

Year Ended 31 MarchCross RevenueExpenditureNet Revenue
 $(thousand)
1983659,250635,03524,215
1984631,137607,53023,907
1985599,622619,600-19,978

Railway employees

The number of persons employed by the New Zealand Railways at 31 March 1985 was 18 213 (including 575 seagoing personnel) compared with 19 148 a year earlier.

22.5 Roads

Capital investment in New Zealand's roading and road transport system exceeds that of all other forms of transport services. There are 93 039.1 kilometres of formed roads and streets, and over 1.8 million motor vehicles. The 1979-80 Census of Transport, Storage, and Communication showed that, at the end of February 1980, 10 508 persons were engaged in the provision of road passenger transport services, 18 857 in providing freight transport by road, and 1475 in supplying supporting services to land transport such as car and truck rental services and vehicle parking facilities.

Roads and bridges

The cost of providing adequate roads in New Zealand as a proportion of annual investments is relatively high in comparison with many other countries, largely because of the nature of the country and the wide variety of terrain frequently encountered within relatively short distances. In most years the cost of repairing rain and flood damage is a heavy item under road maintenance.

Annual roading expenditure by central and local government is now over $550 million. Maintenance comprises over half the expenditure.

With increased financial stringency, the main emphasis of state highway activities in recent years has been on the maintenance and improvement of existing roading assets. There are 14 683 bridges of 3 metres and over with a total length of 329 224 metres.

Table 22.29. FORMED ROADS AND STREETS AT 31 MARCH 1985

Nature of SurfaceUrban AreasTown DistrictsRural AreasDistrict CouncilsState Highways and MotorwaysTotal

Source: National Roads Board.

 kilometres
Paved or sealed12 235.430.223 506.13 532.310 967.650 271.6
Metal or gravel558.90.338 507.73 138.7561.942 767.5
    Total, maintained roads12 794.330.562 013.86 671.011 529.593 039.1

Roads administration

The main statutes covering roads administration in New Zealand are the Public Works. Act 1981, the Local Government Act 1974, 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. In 1954 the board was formed following 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 private mos, commercial vehicle owners, counties, municipalities, the Ministry of Works and Development, and me 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 he board is a politically-orientated policy-making body; it is required to think nationally and to act nationally. The most important functions of the board are:

  1. To administer the National Roads Fund;

  2. To provide a roading system adequate for New Zealand's needs;

  3. To advise Government on all matters concerning roading including the provision of finance;

  4. To assist and advise local authorities on roading problems;

  5. To undertake at intervals of not more than 5 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 the fund the money is returned to the road user in the form of safer, smoother, more economical travel. 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; 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 the 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.

No staff are employed directly, but the Ministry of Works and Development provides an engineering and administrative service for which it is paid 6.8 percent of total National Roads Board expenditure. The Roading Directorate 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 the 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 95 percent of the 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 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 over-riding 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. The board then prepares a final programme of road works for the coming year. At the present time there are 2 sectors and funds are allocated on the following basis: for local authorities—not less than 39 percent of motor revenue; for state highways—not less than 47 percent of motor revenue: this leaves 14 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 21 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.

Fuel tax equal to 8.9c per litre from all lightweight petrol, LPG, and CNG powered vehicles using public roads is paid into the National Roads Fund. All heavy motor vehicles, including trailers, and ail remaining lightweight vehicles (mainly diesel powered), are required to purchase distance licences at a cost that varies according to their: nominated maximum gross weight, their axle configuration, and the distance they travel. The income from these road user charges is all credited to the National Roads Fund.

Table 22.30. STATEMENT OF RECEIPTS AND EXPENDITURE OF THE NATIONAL ROADS BOARD

Item1984*1985*

* Year ended 31 March.

† Receipts are less collection expenditure.

Source: National Roads Board.

 $(thousand)
Receipts—
    Petrol tax (net)131,958138,720
    Road user charges96,94896,600
    CNG/LPG3,2006,958
    Fees and charges—
    Contribution from Consolidated Account34,00093,000
Miscellaneous receipts—
    Repayments of advances to local authorities261-
    Rents1,3123,136
    Sales of land and buildings1,4132,873
Heavy traffic fees and fines909783
Interest on investments222462
Miscellaneous2,204485
                 Total receipts272,427343,019
Expenditure—
    Highways maintenance95,911108,215
    Highways construction43,93251,563
    Local authority roading subsidies and grants109,715144,925
    Special purpose roads2,2292,675
Administration and general expenses—
    Ministry of Works administration17,43521,432
    Fees and travelling expenses137129
    Miscellaneous expenses3,1563,628
    Property expenses 3,918
Bridging expenses—
    Bailey bridging, etc.457253
Unauthorised expenditure35
                 Total expenditure272,975336,742
Balance in fund at end of year8,46414,741

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 characteristies 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

Table 22.31. EXPENDITURE ON ROADING*

Class of Expenditure19811982198319841985

*Year ended 31 March.

†Excludes motorway structures.

‡Totals may not add because of rounding.

§Maintenance figures include the cost of flood damage restoration when applicable.

Source: National Roads Board.

 $(thousand)
Construction and improvement29,81233,85232,61042,87550,037
Bridges and other structures10,67011,56711,32211,03613,090
Maintenance,§ repairs, etc.68,08281,33095,910108,214119,577
                 Total108,564126,749139,843162,125182,704

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 estimated total length of motorways in use at 31 March 1985 was 121.8 kilometres.

New Sealing—During the year ended 31 March 1985, 30.1 kilometres of new sealing on highways was completed, giving an aggregate of 10 967.6 kilometres of sealed highway, 95.1 percent of the total length.

Roading Standards—In order to qualify for reading 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.

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 17 years to March 1985 there were 3400 bridges completed, totalling 76 851 metres.

For the year ended 31 March 1985, $157,081,600 was paid to local authorities from the National Roads Fund for roading.

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, money is provided annually by the Consolidated Account (Programme: Developmental Roading) 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 programme also finances access roads to lands being prepared for farm settlement by the Lands and Survey and

Maori Affairs Departments, as well as certain new roading of a national development character and the upgrading of existing roads to meet the requirements of major industries, e.g. forestry, tourism, or energy.

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 Account (Programme: Developmental Roading) for the year ended 31 March 1985 was $6,443,429.

National roading expenditure. Details of New Zealand public roading expenditure financed from the National Roads Fund, the Consolidated Account, and local authority funds (both from revenue and loans) are summarised as in Table 22.32:

Table 22.32. PUBLIC ROADING EXPENDITURE*

Item198319841985

* Year ended 31 March.

Source: National Roads Board.

 $(thousand)
State highways expenditure139,843169,777182,704
Special purpose roads2,2292,6751,230
Local Authority roading expenditure—
    From local authority funds144,942172,312197,629
    From National Roads Fund109,552144,932157,082
    From Consolidated Account (Developmental Roading)7,5286,3146,443
                 Total404,094486,010545,088

Table 22.33. ROADING EXPENDITURE RELATED TO GROSS NATIONAL PRODUCT

Year Ended 31 MarchRoading Expenditure: Central and Local Gov'tGross National ProductRoading Expenditure as Percentage of G.N.P.
 $(million)percent
1981326.4623,950x1.4
1982374.0928,7101.3
1983425.3331,5081.3
1984341.4933,8071.0
1985374.3639,5081.0

Registration and licensing of motor vehicles

The costs which follow are those in effect from 1 July 1985. The amounts for initial registration fees are: motorcars, from $47 to $232 according to age or engine capacity; motor cycles over 60cc, trailers, and traction engines, $47; mopeds and other motorcycles, $28; heavy trucks, $232; light trucks and vans, $139; tractors, $10; and any other motor vehicle, $92.

Annual relicensing costs for motor vehicles include the cost of the actual licence plus Accident Compensation levy, administrative costs, and, in some cases, cost of certificate of fitness, and transport licensing fees. For motorcars the total annual cost of relicensing is $68.75 ($47.00 for licence fee); for motorcycles over 60cc, $49.75 ($28.00); for other motorcycles, and mopeds, $25.80 ($18.00); for tractors, $44.80 ($37.00); and for light trailers, $28.20 ($28.00). Trade licences are issued for certain categories of dealers and manufacturers of motor vehicles. Other fees include those for drivers' licences. $2.50, and changes of ownership, $23.00.

All such fees, except those for drivers' licences which are payable to the local authorities, are credited to the Consolidated Account.

The various types of motor vehicles licensed as at 31 March in each of the last 5 years are itemised below.

Table 22.34. LICENSED MOTOR VEHICLES AS AT 31 MARCH

Type of Vehicle19811982198319841985

* Now included under specific vehicles, e.g. cars.

† Trailers formerly exempted from annual licence fees were entirely exempted from the requirement to be registered and licensed in 1984.

Source: New Zealand Post Office.

Cars*1 319 3051 360 4771 394 1091 431 7791 481 822
Rental cars6,1276,2477,1337,39510,117
Private taxicabs174265223399374
Light goods service vehicles (i.e., gross laden weight 2 tonnes and under)186,827200,342207,199213,943213,575
Heavy goods service vehicles (i.e., gross laden weight over 2 tonnes)77,72180,89380,82980,09070,254
Contract vehicles1,2821,331874713..
Omnibuses2,5752,4522,7303,0293,169
Public taxicabs2,9962,8522,6692,6202,582
Service coaches9539731,0501,1051,483
Motor cycles136,722144,327143,894141,156137,442
Power cycles (mopeds)1,7481,5911,4791,3791,441
                 Total, motor vehicles1 736 4301 801 7501 842 1891883 6081 924 467
Trailer, including trailer-type caravans and (until 1984) trailers exempted from payment of annual licence fees379,525390,052386,510390,924384,810
Dealers' cars4,3614,6234,8485,1055,116
Dealers' motor cycles341335294264222
Vehicles including cycles exempted from payment of annual licence fees (farm tractors etc.) or from some other form of motor vehicle taxation89,43588,74380,19374,31872 44
Miscellaneous10,89811,38411,35211,42411,270
                 Total, all vehicles2 220 9902 296 8872 325 3862 365 6432 398 229

Table 22.35. REGISTRATIONS OF NEW VEHICLES

December YearNew Cars and Station Wagonsc.c. RatingCars Previously Registered Overseas*New Motor Cycles
850 and Under851 to 13001301 to 16001601 to 20002001 to 50005001 and OverTotal

* Included in previous column.

198189629,98222,80431,7195,78019291,3731,90724,571
198274225,82524,03829,2865,38720185,4791,81222,306
198370420,97722,89926,1164,98417175,8511,76616,938
198497027,75827,32535,6446,47226898,4372,01915,975
198559623,28018,78932,3269,10833584,4342,91813,425

Table 22.36. NEW COMMERCIAL VEHICLES BY GROSS WEIGHT

December YearNew Commercial Vehicles By Gross Weight in KilogramsTotal Commercial Vehicles
2500 or Less2501 to 450045 01 to 90009001 to 14 50014 501 and OverOmnibus and Service Coaches
Source: New Zealand Post Office.
198120,9241,6171,15080593416725,597
198225,4851,9501,31090487618730,712
198319,6282,1331,24994691715125,024
198419,3243,4141,4761,3301,29619527,035
198515,0004,2201,4601,1691,16327223,284

Not included in the previous tables are new tractors, of which 2747 were registered in 1981, 2449 in 1982, 2201 in 1983, 2217 in 1984, and 1793 in 1985.

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.

Table 22.37. NUMBER OF LICENSED VEHICLES BY POPULATION

As at 31 MarchNumber of Persons in Population per CarNumber of Persons in Population per Motor Vehicle*

* Excluding trailers and caravans.

19802.5x1.8
19812.41.7
19822.31.7
19832.31.7
19842.31.7
19852.21.6

Transport to work.Table 22.38 shows the principal means of transport to work used by the full-time usually-resident labour force in 1981. The figures in this table have been rounded, using simple random rounding to base 3. Individual figures in this table will therefore not necessarily sum to give the stated totals.

Significant changes since previous censuses are the continued fall in the use of public transport, and the increase in the percentage of the labour force using bicycles. Ten years earlier, at the 1971 Census, 11.8 percent of the labour force were going to work by public bus and 2.3 percent by train. In 1981 the percentage travelling by bus had fallen to 7.2 and by train to 1.7. Bicycles were used by 3.8 percent of the work force in 1971 and by only 3.0 percent in 1976, but by 1981 the percentage of the work force using them had risen to 4.7 percent.

Table 22.38. TRANSPORT TO WORK 1981

Means of TransportOccupational GroupingPercentage of Full-time Workforce
Professional, Technical, Administrative, Managerial, Clerical, and RelatedSales and Service WorkersAgricultural, Animal Husbandry, and Forestry Workers, Fishermen and HuntersProduction Workers and Related Workers, Transport Equipment Operators, and LabourersOthers*19761981

* New workers seeking employment, workers reporting occupations unidentifiable or inadequately described, and workers not reporting any occupation.

† Includes unemployed persons.

‡New Zealand residents aged 15 years and over occupied full-time in the labour-force.

Drive car, truck, or van237,537124,59928,245226,6057,64748.346.9
Passenger in car, truck, van, or firm's bus44,30120,24711,65262,6372,2269.910.6
Public bus46,02916,90895130,5521,7409.07.2
Train13,5032,166966,1623902.21.7
Motor cycle or power cycle14,3677,1255,79030,0905853.84.4
Bicycle23,8658,9282,26526,5957173.04.7
Walk42,86130,22812,66043,0412,26811.29.8
Other means1,8241,2211,1822,3131740.50.5
Work at home11,28914,68878,00612,4352,7878.88.9
Not applicable or not specified9,1447,6175,44817,50231,1313.35.3
         Total444 720233 730146 292457 93549 662100.0100.0

Road safety

Enforcement of traffic and other laws. Traffic on roads in 5 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, 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 a close liaison is maintained with the Police. A traffic officer now has a wide range of tests available to him/her where he/she suspects that a driver is affected by alcohol or drugs or a combination of the two.

Those persons a traffic officer suspects are driving while under the influence of alcohol or who commit a driving offence may be required to give a breath screening test. If this proves to be positive the person may be required to give an evidential breath test. If this is positive, the person then has the option of either accepting the breath test reading or providing a blood sample for analysis.

Under legislation introduced on 1 December 1978 a person commits an offence and is liable for prosecution if either:

  1. His/her breath-alcohol concentration as recorded on an evidential breath testing device exceeds 500 micrograms of alcohol per litre of breath; or

  2. His/her blood-alcohol concentration exceeds 80 mg of alcohol per 100 ml of blood.

Wearing of seat belts is now compulsory for drivers and front-seat passengers in most classes of light vehicles registered after January 1955. As from 1 November 1979 all new cars registered must have seat belts fitted in the rear passenger seats and it is compulsory for rear-seat passengers to wear these.

From 1 September 1984, the law requires:

Children under eight

  1. If an approved child restraint is available it must be used.

  2. If there is no approved child restraint but a seat belt is available it must be used (where appropriate).

  3. If neither are available, the unrestrained child must travel in the rear seat (Unrestrained children are allowed in the front seat only if the vehicle has no rear seat or if the rear seat is fully occupied by children.)

Children aged eight to fourteen

  1. If a seatbelt is available, it must be used.

  2. If there is no seat belt available, the unrestrained child must travel in the rear seat. See proviso in three above,

Adults

  1. If a seatbelt is available it must be used.

  2. The driver is responsible for ensuring that children use available child restraints and seatbelts.

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 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/she so desires.

Speed limits. Until 1 July 1985 the maximum speed for highways generally was 80 kilometres an hour with lower limits prescribed for certain vehicles, e.g., 70 kilometres an hour for heavy goods vehicles.

The maximum speed limits for highways were raised on 1 July 1985 to: 100 km/h for cars, vans and light vehicles; 90 km/h for buses, heavy motor and articulated vehicles; and 80 km/h for school buses and any vehicles towing trailers.

A general speed limit of 50 km/h is fixed in cities, boroughs, town districts, or other localities declared to be closely populated localities. 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 6 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. Details on accident compensation are given in chapter 10.

Road safety education. Details on road safety campaigns are given in chapter 10.

Traffic offences

The following 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 offences are therefore rather higher than shown.

Table 22.39. TRAFFIC OFFENCES FOR YEAR ENDED 31 DECEMBER

Type of Offence198219831984

*In 1981 these offences relate to speeds in excess of the speed limits. In 1982 and 1983 they include infringements and Notice to Prosecute offences.

†Reclassification to amalgamate offences for which less than 100 offence notices were issued in each of the three years.

‡Change in legislation: 1983 figures now included under 'Failure to pay other fees'.

§Reclassification to amalgamate offences for which less than 100 offence notices were issued in each of the 3 years.

|| April 1983: Parking enforcement taken over by Local Bodies.

Source: Ministry of Transport.

Accident-promoting offences
    Driving or attempting to drive under the influence of drink or drugs232246238
    Breath/blood alcohol offences9,15710,1848,906
    Evidential/excess alcohol7,3668,4478,936
    Failure to fulfil duties after an accident1,2261,2911,282
    Reckless driving363258214
    Driving in a dangerous manner1,7501,4371,397
    Driving at a dangerous speed923631613
    Driving without reasonable consideration561430344
    Careless use of a motor vehicle12,44913,07114,048
    Overtaking offences1,058987948
    Failure to keep to the left6,0134,9794,511
    Failure to yield right of way2,9322,8142,547
    Failure to stop in half clear road3,0342,9243,027
    Exceeding 50 km/h*100,40678,12667,359
    Exceeding 70 km/h*2,9002,0972,485
    Exceeding 80 km/h*52,75040,06536,029
    Exceeding temporary speed limits2,0771,431860
    Exceeding by-law speed limits14310278
    Failure to stop at traffic Sights7,8567,3636,857
    Failure to stop at compulsory stop sign13,43312,1018,848
    Failure to give way at give way sign1,5541,5511,548
    Failure to yield right of way at pedestrian crossing589591520
    Failure to stop or give way for siren374347309
    Failure to comply with road signs4,9343,4423,243
    Failure to wear safety helmet2,5172,4752,846
    Provisional motor cyclist exceeding 50 km/h1547598
    Exceeding 70 km/h with trailer1 184x948826
    Exceeding 70 km/h with heavy motor vehicle1 029x8211,110
    Exceeding other limits48x4942
    Defective brakes282204164
    Lighting offences7,5975,5364,755
    Failure to dip lights16911399
    Mechanically defective or unsafe vehicle10,4938,3726,902
    Trailer offences328281341
Other (not elsewhere indicated)372427
         Total accident-promoting offences257 918x213 813192 357
Non accident-promoting offences
    Failure to obey officer2,5692,4052,446
    Owner failing to supply information766146125
    Failure to pay overloading infringement fee394515603
    Failure to pay speeding infringement fee1,141...
    Failure to pay other fees§592713
    Warrant of fitness offences52,56342,57835,779
    Certificate of fitness offences1,7131,6691,741
    Certificate of loading offences650572602
    Exceeding certificate of loading207..239
    No distance licence carried1,7351,2632,138
    Hubodometer offences4,2954,2884,652
    Driving without a time licence150131157
    Exceeding maximum gross weight or distance or time4,6113,9964,903
    Road user licence altered, defaced or not displayed984388852
    Driver's licence offences21,21814,13413,789
    Driving whilst disqualified3,4133,3963,438
    Probationary driver's offences761680566
    Vehicle licences and registration offences11,97811,1131,593
    Safety-belt offences17,4028,2587,983
    Noisy motor vehicles1,9751,3131,097
    Emitting excessive smoke200146119
    Loading offences2,2301,8512,042
    Other nuisances660389329
    Cycling offences2,8311,5291,602
    Pedestrian offences1404963
    Passenger offences268212191
    Bylaw offences (other than speed limit)§1,194616564
    Unlicensed goods service428582168
    Breach of goods service licence684758198
    Exceeding rail restriction limit539917178
    Rental vehicle offences11067108
    Taxi cab offences5911593
    No vehicle authority or not carried386418313
    Other transport service licence offences§632554381
    Other miscellaneous and not elsewhere indicated§3,4532,0501,943
         Total non accident-promoting offences142 398107 359102 671
Other notices issued—
    Parking infringements and offences||493,648211,56497,772
    Overloading infringements11,9119,65414,024
         Total other notices issued505 559221 218111 796
         Total all offences and infringements905 875542 390406 824

Urban passenger services

The Urban Transport Act 1980 established the Urban Transport Council (UTC) and provided for the centralisation under this single agency of responsibility for the allocation of financial assistance from central government sources for scheduled urban passenger transport services by road and rail. The UTC is also responsible for urban transport research, and advice to the Minister of Transport and local authorities on urban transport matters.

The UTC's detailed expenditure proposals are submitted to the Minister of Transport each October as a National Implementation Programme for the following financial year, with expenditure projections for the following 2 years. The National Implementation Programme comprises principally subsidies for approved urban transport expenditure by local authorities.

The National Implementation Programme for the 1985-86 financial year provided for the expenditure of $57.85 million. Of this total, $2.66 million was designated for residual parts of the Bus Replacement Programme, which was initiated prior to the establishment of the UTC.

22.6 Post Office

Following the arrival of Governor Hobson in 1840 the first post office was set up at Kororareka (now Russell). In the same year overland mail routes were begun, and offices were established in the north and at Port Nicholson (Wellington). In 1858 a Post Office Act was passed which made the Post Office an independent department of State. By this time 73 post offices had been opened to provide communication services for the settlers.

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 opening of morse telegraph offices. The North and South Islands were linked by telegraph cable in 1866 and by telephone cable in 1926.

In 1881 the telegraph and postal services were amalgamated. Under the Post Office Act 1959, the name of the department became the Post Office, and the Minister's title became Postmaster-General.

At 31 March 1985 there were 1269 post offices in New Zealand.

Table 22.40. ARTICLES POSTED

Year Ended 31 MarchLetters (Standard and Non-Standard)Other Articles (Including Packets. Newspapers, etc.)ParcelsTotalAir Letter Class Articles

Source: New Zealand Post Office.

 millionkg
1981545.0104 29.5658.7977,883
1982529.8120.59.9660.21 157 383
1983564.586.09.9660.41 283 450
1984588.190.49.3687.81 302 550
1985580.7140.49.8730.91 404 910

The average numbers of items posted in New Zealand per head of population during the year ended 31 March 1985 were: letters, 176.4; other articles (printed papers, commercial papers, newspapers, and magazines), 42.7; and parcels, 3.0.

Chartered air services are used to convey the bulk of surface mail between the North and South Islands.

Private boxes installed as at 30 September 1985 totalled 157 833.

Postal delivery service. There are just over 1400 postal deliveries throughout New Zealand serving 964 000 delivery points (918 000 private houses and 46 000 business premises). Delivery is made once daily, Monday to Saturday. The majority (1100) of the deliveries are made by bicycle whilst the remainder, mainly in cities and larger towns, are by foot.

Rural mail delivery. In addition to the delivery and collection of mail, the rural mail delivery system enables country residents to obtain other Post Office services such as postal .notes, money orders and stamps at or near their gates.

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 country residents obtain their newspapers, bread, parcels, etc. At 31 March 1985 a total of 103 365 boxholders and bagholders received service in this way. The cost to the Post Office to provide the rural delivery service is approximately $14 million a year.

Overseas airmails. The weight of airmail dispatched from New Zealand was about 46 percent of the total amount of mail forwarded overseas for 1984-85. in 1984-85, 775 280 kg of letters, newspapers and packets, and 427 830 kg of parcels were posted by airmail overseas.

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, Brisbane, Hobart, Adelaide and Perth).

New Zealand - United Kingdom air service—This service operates daily to London, the transit time New Zealand to the United Kingdom being normally 27 hours.

At London Airport, airmails for 17 European countries are transferred to the first available flights to destination and the majority normally arrive within 45 hours of departure from New Zealand.

New Zealand - Japan and Singapore Air Services—There are direct services from Auckland to Japan and Singapore. Airmail to countries in the Far East is dispatched to Singapore or Sydney for reforwarding.

Trans-Pacific services—The trans-Pacific service operating between New Zealand and North America commenced on 20 July 1940. Airlines now operate a daily service to the United States.

Pacific Island services—Airmails are forwarded by various air services operating from Auckland to the Cook Islands, Fiji, French Polynesia, Hawaii, Nauru, New Caledonia, Niue, Norfolk Island, Solomon Islands, Tonga, and Western Samoa (Apia). Local air services provide connections from Apia or Noumea to American Samoa, Kiribati, Vanuatu, Niue, and the Solomon Islands. There is a weekly air service run by Air Nauru from Auckland.

Table 22.41. OVERSEAS PARCEL POST

Year Ended 31 MarchOverseas Parcels ReceivedOverseas Parcels Dispatched
NumberWeightNumberWeight

Source: New Zealand Post Office.

  kg kg
1981625,3342 288 711346,1231 156 051
1982582,8011 953 876374,9491 185 625
1983498,5351 695 018344,4901 102 367
1984570,4662 009 547388,7951267 416
1985585,9091 865 663471,1961 511 476

Philatelic services. The New Zealand Post Office Philatelic Bureau in Wanganui handles thousands of mail orders for stamps, and services a large number of customers' Standard Deposit and Standing Order accounts.

Philatelic Sales Centres are situated in Auckland, Wellington, Christchurch, Dunedin, Hamilton, Rotorua and Gisborne.

Table 22.42. PHILATELIC SERVICES

Year Ended 31 MarchDeposit AccountsPhilatelic RevenueMailing List Subscribers
InlandOverseasTotal

Source: New Zealand Post Office.

    $ 
198222,64519,35642,0015,694,12796,143
198323,94519,93143,8765,092,86694,178
198424,87820,38245,2605,276,46694,146
198525,65820,83846,4966,620,72797,441

Table 22.43. NEW STAMPS RELEASED DURING 1985

DateIssueDenominations

Source: New Zealand Post Office.

16 JanuaryCentenary of St John Ambulance24c, 30c, 40c.
6 MarchVintage Transport—Trams/Cable Cars24c, 30c, 35c, 40c, 45c, 58c.
24 AprilNative Birds$1.00, $2.00.
12 JuneScenic—Bridges35c, 40c. 45c, 70c.
1 JulyRoyal Definitive Issue25c, 35c.
31 JulyHealth—Royal Family25c + 2c (x2), 35c + 2c & Miniature Sheet—$1.82.
18 SeptemberChristmas—Carols18c, 40c, 50c.
6 NovemberNew Zealand Military History —Navy25c, 45c, 60c, 75c & Miniature Sheet—$2.05.

Money orders. Inland postal money orders and telegraphic money orders for any amount may be purchased to send money within New Zealand, the Cook Islands, and Niue. Postal money orders may also be issued in New Zealand for payment by many foreign administrations, and an overseas telegraphic money order service is available to Australia, Fiji, Great Britain and Northern Ireland, the Irish Republic, Norfolk Island, and Western Samoa.

Postal notes. Postal Notes for 10c, 50c, $1, $2, $3, $4, and $5 are available for payment within New Zealand, Niue, and the Cook Islands.

Postal notes are negotiable, and their period of validity is unlimited. During the year ended 31 March 1985, 510 062 postal notes valued at $1,479,185 were purchased by the public.

British postal orders. British postal orders are both issued and paid in New Zealand. Denominations sold are 25p, 50p, 75p, £1, and £2 sterling. These orders are a medium for making small postal remittances to some Commonwealth countries, especially the United Kingdom. During the year ended 31 March 1985 the Post Office sold 330 013 British postal orders valued at $1,615,565 and paid 73 658 orders valued at $1,157,887.

Post Office Savings Bank

Details on the Post Office Savings Bank are given in chapter 26, Finance, banking and insurance.

Telephone services

The first telephone exchange was installed in 1881. The telephone system has since then been expanded to over 800 exchanges serving 1 254 896 subscribers at 31 March 1985.

Telephone exchanges are grouped into 180 toll-free-calling areas within which there is no charge for local calls. The long-term objective is to reduce the number of toll-free-calling areas to about 80. Toll fees are charged for calls between different toll-free-calling areas, at rates varying according to distance.

About one-fifth of the main telephones are business telephones. At 31 March 1985 there were 14 981 applicants awaiting service.

According to the latest comparative data available (January 1982), compiled by the American Telephone and Telegraph Co.. New Zealand ranks sixth in the number of telephones per 100 of population, the leading countries being Sweden (82.8 percent), U.S.A. (78.7 percent), Switzerland (74.9 percent), Denmark (68.0 percent), Canada (64.7 percent), and New Zealand (61.6 percent).

Subscriber Toll Dialling (STD) service is in operation in Auckland, Christchurch, Dunedin, Gisborne, Hamilton, Masterton, Napier, Nelson, Oamaru, Palmerston North, Rotorua, Tauranga, Thames, Wanganui, Wellington and in several smaller centres. It is being progressively extended as new telephone exchange equipment is brought into service. At 31 March 1985, STD service was available to 80.7 percent of subscribers.

A broadband toll link, comprising microwave, radio, and co-axial cable systems, connects main centres from Kaikohe to Invercargill.

Table 22.44. NUMBER OF TELEPHONE INSTALLATIONS

ItemAs at 31 March
19811982198319841985

Source: New Zealand Post Office.

Main telephones—
    Automatic1 084 5211 123 2571 151 7791 187 0581 230 307
    Manual46,92745,11941,03033,66424,589
Extension telephones663,075702,262741,762785,115845,933
Public telephones5,0054,9004,9174,8474,865
                 Total telephones1 799 5281875 5381 939 4882 010 6842 105 694
Telephones (all types per 1000 population)569592600616639
Applicants awaiting installations12,79511,9257,13011,26714,981
Number of toll calls (inland and outward international)98 233 085105 455 227113 815 142124 603 079141 248 096

Telegraph and telecommunications services

Telegrams. In line with world experience there is a continuing downtrend in inland telegram traffic. In the year ended 31 March 1985, 1.9 million messages were lodged compared with 2.0 million in the preceding year. Of these, 62 percent were lodged by telephone, 15 percent by telex, and 23 percent handed in over Post Office counters. At the delivery end, 53 percent were delivered by messenger, 36 percent telephoned to the addressee, and 11 percent telexed.

The public telegraph network comprises 83 teleprinter offices which interwork through Gentex (automatic circuit switching).

Bureaufax service. A Bureaufax service was introduced between Auckland and Wellington in 1980, and is now available at 36 post offices. This electronic document transfer service produces a facsimile of documents, including typewritten or handwritten manuscripts, charts and graphs. Documents are transmitted to both internal and overseas destinations, and use of the service is increasing steadily. During the year ended 31 March 1985, 69 935 messages comprising 335 906 pages were handled.

Telex service. Telex service is a subscriber-to-subscriber teleprinter communication service, operated through a worldwide network of automatic telex exchanges.

A manual international telex service with 16 subscribers commenced in New Zealand in 1960. Automatic inland and international service was introduced in 1964. Demand for telex service has increased steadily and, as at 31 March 1985, there were 5788 subscribers in New Zealand.

Computer-controlled telex exchanges were introduced in Auckland in June 1980 and in Wellington in May 1981. In addition to meeting the demand for new connections, the new exchanges enabled a reduction in the inland call charge because of reduced operating costs and the introduction of several special services.

Data communication services.Datel—This service provides for data communication over the switched telephone network at speeds of up to 2400 bits per second (measure of information flow). Subscribers' privately-owned terminals are connected to telephone lines through Post Office modems which convert the data signals to a form suitable for transmission over telephone circuits. Datel calls are charged at the same rates as normal telephone calls.

Datex. Datex is a 300 bit per second switched text and data communication service whereby subscribers can use their word processors or computers to communicate with other datex subscribers, or to telex subscribers at the slower speed of 50 bits per second. This service was introduced in November 1981 and as at 31 March 1985 there were 124 subscribers in New Zealand. Datex calls are charged the same as telex calls.

Leased data circuits. A service was introduced in June 1981 providing for the direct connection of subscribers' data terminal equipment by means of leased data circuits operating at speeds of 300, 1200, 2400, 4800, and 9600 bits per second.

Subscribers may also lease full voice-grade circuits for the transmission of data if they wish.

In addition to circuits leased for data communication purposes, circuits are available for lease for private voice, teleprinter and facsimile communication networks and music distribution and fire alarm systems.

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 system was brought under Government control. In accordance with the Commonwealth Telegraphic Agreement 1948, the New Zealand Post Office purchased the New Zealand assets 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 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 Canada. This cable system known as COMPAC reached the end of its design life during 1984 and was abandoned following commissioning of the ANZCAN cable system. In March 1967 the South-east Asia Commonwealth Telephone Cable (SEACOM) extended the COMPAC system from Australia to Papua New Guinea and (via Guam) to Malaysia, Hong Kong and Singapore.

An additional high capacity trans-Tasman submarine cable, a joint New Zealand - Australia project was brought into service in early 1976. Known as TASMAN, this cable has a total capacity of 640 telephone circuits.

A new 15 000 km cable, called ANZCAN, with a capacity of 1380 circuits began operation in 1984.

It links New Zealand, Australia, Norfolk Island, Fiji, Hawaii and Canada. From Canada it links up with the trans-Atlantic cables to connect with Britain and provides high quality circuits for telephone, telegraph and telex communication to most of the world's major countries.

Satellite communications. To keep abreast 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. A second antenna was brought into service at the station in 1984. This will allow Warkworth to communicate with the larger capacity satellite due to be positioned over the Pacific Ocean early in 1986.

In addition to providing additional internal and international telecommunication facilities, the earth stations are used for both “live” and recorded television relays. Two smaller earth stations have been constructed at Wellington (Mt Crawford) and Christchurch (Rangiora) and will begin operation during 1986.

High frequency radio links. With the introduction of satellite communications, services provided by HF (high frequency) radio have progressively been converted to satellite operation. However, HF radio links are still maintained with Niue, Ross Dependency (Scott Base), Chatham Islands, Raoul and Campbell Islands and Pitcairn Island.

International telephone service. Telephone communication by cable, satellite, and radio is now available to almost all countries of the world.

An International Gateway telephone exchange in Auckland handles all New Zealand's outgoing and incoming international telephone calls. International Subscriber Dialling (ISD) enabling New Zealand subscribers to dial overseas subscribers directly was introduced on 1 December 1979. The facility which is presently available to 80 percent of New Zealand subscribers is being progressively extended as is the number of countries to which the service is available.

International data service. Datel service (operated via the switched telephone network) is available to a number of countries. Operation at speeds up to 2400 bits per second is permitted.

International packet switched service. Packet switched service was introduced in September 1984 to Australia, United Kingdom, the United States and other overseas countries with packet switched networks.

International telex service. Since its inception in 1960 the international telex service has continued to grow steadily and at the present time is available with 183 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 call most overseas subscribers automatically without the aid of the international assistance operator. In August 1977 automatic telex service became available to ships at sea.

International bureaufax service. The international bureaufax service, which opened in September 1980, has continued to grow.

International telegram service. A worldwide service is available although the traffic volume is diminishing in line with the world trend.

Radio services to shipping. The first wireless-telegraph station in New Zealand for communication 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 9523.

Inland radio services

The use of radio as a means of communication continues to grow. In the Post Office very-high- frequency service 9091 subscribers are provided with radio-telephone service to 73 618 mobile units through 130 base stations throughout the country. A further 23 212 mobile units are provided with service through 5252 Government and private owner-operated base stations. The number of citizen sets licensed now totals 38 736. The amateur service provides facilities for experimental communications between people interested in radio as a hobby, and 6249 stations are operated by qualified amateur operators. There are now 173 820 radio transmitting stations of all types licensed compared with 162 562 in 1984.

Revenue

The revenue figures for each of the 4 businesses of agency, banking, postal and telecommunications, totalling $1,539.7 million include transfer revenues of $14.8 million, i.e., revenues earned for services rendered by each business for the other 3 businesses.

When these revenues (and expenditures) are consolidated to show the result for the Post Office as a single entity, all transfer revenues and expenditure are eliminated.

Table 22.45. POST OFFICE REVENUE 1984-85

Item1984-85

Source: New Zealand Post Office.

 $(thousand)
Agency Business
Fees from Government departments—
    Motor registration13,684 
    Broadcasting Corporation of New Zealand5,310 
    Other Government departments8,52027,514
Miscellaneous 3,518
                 Agency Revenue 31,032
Banking Business
Interest on Investments—
    Government and Government Corporation securities250,044 
    Mortgages and personal advances47,856 
    Other investments.023297,923
Other—
    Service charges 2,936
    Remittance services 649
                 Banking Revenue 301,508
Postal Business
Postage 209,996
Other—
    Private box, bag rents and rural delivery fees5,983 
    Philatelic sales6,621 
    Overseas traffic settlements5,849 
    Miscellaneous6,67925,132
                 Postal Revenue 235,128
Telecommunications Business
Telephone 443,091
Tolls 316,713
International services 114,497
Other—
    Telex22,555 
    Telegraph11,176 
    Radio8,903 
    Leased circuits32,182 
    Miscellaneous22,91297,728
                 Telecommunications Revenue 972,029
Total, Post Office Revenue 1,539,697

Table 22.46. POST OFFICE REVENUE AND EXPENDITURE*

Year Ended 31 MarchRevenueExpenditure

* Excludes taxation.

Source: New Zealand Post Office.

 $(thousand)
1980604,288533,433
1981710,678622,116
1982816,477740,402
19831,240,1931,042,541
19841,379,2331,089,490x
19851,539,6971,222,792

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 in 1984—85 on telecommunications development and buildings was financed from internal resources and there was consequently no need to borrow from the Loans Account.

In 1984-85, $241.8 million was spent on telecommunications development and $22.9 million on land and buildings. In addition, $51.8 million was invested in other assets such as motor vehicles, tools and plant, and office equipment. The capital liability of the Post Office is still $563.0 million and liability under capital equipment credit arrangement is $137.5 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: Health, Lands and Survey, Ministry of Works and Development (Road User Charges), Public Trust Office, Electricity (some electric-power receipts), Ministry of Transport, Customs (collection of Customs duty and sales tax). Treasury (Government Superannuation, National Provident Fund receipts, and motor vehicle registration and licence fees), and Reserve Bank (Kiwi Savings Stock).

Payments—Departments of Social Welfare (benefits, pensions and boarding out coupons), Health (refunds of medical expenses), Defence, and Ministry of Works and Development (refunds of Motor Spirits Duty).

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 95 electorates a postmaster or senior officer is appointed registrar of electors with responsibilities for the compilation, maintenance, and production of electoral rolls as directed by the Chief Registrar of Electors.

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

Table 22.47. POST OFFICE STAFF EMPLOYED

ClassificationAs at 31 March
19811982198319841985

Source: New Zealand Post Office.

Permanent staff33,61533,12833,11032,83633,541
Temporary, casual and non-classified staff6,0246,1516,6456,3686,892
                 Total staff39 63939 27939 75539 20440 433

Business staff. Staff employed in various branches of the Post Office undertake a range of activities either directly related to or in support of the main business operations. Where branch activities involve more than a single business, survey results are applied to produce the business staff figures.

Table 22.48. POST OFFICE BUSINESS STAFF EMPLOYED

Full-time Equivalent StaffAverage Staff Level
1980-811981-821982-831983-841984-85

Source: New Zealand Post Office.

Telecommunication services24,95724,58224,25324,13223,812
Postal services7,1427,3227,6827,6538,003
Banking services3,9514,3874,5454,7084,973
Agency services1,8951,6931,3871,3341,220
Electoral222165112130141
                 Total38 16738 14937 97937 95738 149

Vehicles. The Post Office fleet as at 31 March 1985 consisted of 7230 vehicles: 978 trucks, 4089 vans, 2160 cars and 3 motor scooters. Of this fleet 1568 are used on postal, telegraph delivery, banking and other general work, 5179 for engineering work and 465 are used for hire to other departments.

A programme of converting Post Office vehicles to compressed natural gas (CNG) continued during the year. As at 31 March 1985 a total of 3437 vehicles were operating on CNG.

It is proposed to install 28 CNG refuelling stations at large line depots and Public Service Garages. Twelve stations were operational as at 31 March 1985.

Further information

Transport—general

A New Direction for New Zealand (Parl. paper F. 13, 1974).

Interim Report on Transport (Parl, paper F. 14, 1975).

Monthly Abstract of Statistics—Department of Statistics.

Report of the Ministry of Transport (Parl, paper F. 5).

Transport Statistics—Department of Statistics.

Transport Storage, and Communication 1980—Department of Statistics, 1982.

Shipping

Report of the New Zealand Ports Authority (Parl. paper F. 5A).

Report of the Shipping Corporation of New Zealand (Parl. paper F. 13).

Report of the Waterfront Industry Commission (Parl. paper G. 2).

Turnround of Overseas Shipping—Waterfront Industry Commission (4-monthly).

Civil Aviation

Air New Zealand Annual Report—Air New Zealand.

Domestic Air Services Policy of New Zealand—November 1982 (Parl. paper F. 10).

External Civil Aviation Policy of New Zealand—December 1979 (Parl. paper H. 30).

New Zealand Civil Aircraft Accidents—Office of Aircraft Accident Investigation.

New Zealand Civil Aviation Statistics—Ministry of Transport (annual).

Railways

Report of the Railways Department (Parl, paper F. 7).

Roads

Breath Tests in New Zealand—Ministry of Transport (annual).

Local Authority Statistics—Department of Statistics (annual).

Motor Accidents in New Zealand—Ministry of Transport (annual).

Report of the National Roads Board (Parl. paper F. 8).

Report of the New Zealand Police (Parl. paper G. 6).

Report of the Road Safety Committee (Parl. paper I. 1 7A).

Report of the Urban Transport Council (Parl. paper F. 9)

Report of the Working Party on Road User Charges (Parl, paper F. 5B, 1979).

Road Traffic Safety Research Council (annual report and research projects).

Roading Statistics—National Roads Board (annual).

Statistics of the Licensed Road Transport Industry—Ministry of Transport (annual).

Survey on Driving Practices and Opinions 1975—Department of Statistics Bulletin, 1979.

Traffic Research Reports—Ministry of Transport.

Urban Transport in New Zealand (Parl. paper F. 5B, 1977).

Post Office

Report of the Post Office (Parl. paper F. 1).

Chapter 23. 23 Domestic trade and services

23.1 General summary

Domestic trade embraces retail and wholesale trade and part of the service field. The trend of retail trade is one of the most perceptive barometers of economic activity as it constitutes a large proportion of personal expenditure on consumer goods and services.

The seventh of New Zealand's 5-yearly Censuses of Distribution, which provide the basis for the current monthly and quarterly surveys of retail and wholesale trade, was taken for the year 1982-83. This was the second fully-integrated economic census covering the activities of establishments and ancillary units predominantly engaged in wholesale or retail trade, hotels and restaurants, etc., and the supply of personal and household services.

The census formed part of the department's second five-yearly series of integrated economic censuses.

Census of Distribution 1982-83

In 1982-83 the distribution industries were reclassified under the New Zealand Standard Industrial Classification covering:

  1. Wholesale Trade;

  2. Retail Trade;

  3. Restaurants and Hotels;

  4. Personal and Household Services.

The statistical tables which follow give summaries of those four divisions. The definitions used in these tables are given in the Glossary.

Table 23.1. CENSUS OF DISTRIBUTION 1977-78 AND 1982-83 GENERAL SUMMARY

Statistical Item19781983
No.No.
Census Coverage—
    Group enterprises..44,151
    Enterprises within those group enterprises..46,082
    Activity units47,79055,016
    Ancillary activity units547662
    Persons engaged within those activity units—full-time299,893236,577
      —part-time 90,747
Fixed Tangible Assets$(000)$(000)
    Purchases during the accounting year239,263733,850
    Sales during the accounting year 239,530
    Book value at the end of the accounting year 3,453,412
Census Values in Accounting Terms
    Purchases of—  
    Goods for resale13,128,75429,195,698x
Materials used in manufacturing232,6392,259,481
    Operating expenses—
    Employer contributions28,96167,723
    Salaries and wages1,346,5752,755,114
    Indirect taxes23,355101,076
    Interest etc. 613,690
    Depreciation143,302301,888
    All other purchases and operating expenses1,821,9743,718,573
                 Total purchases and operating expenses..39,013,243x
    Stocks—
    Closing312,2055,903,231
    Less Opening5,146,321
    Sales of—
    Goods and services17,163,71836,536,272x
    Manufactured goods241,6382.785,824
    Other income—
    Interest, etc...258,822
    Subsidies262,937212,138
    Other income481,602
                 Total sales and other income, adjusted for change in stock values..41,031,570x
    Net profit—
    Total sales and other income adjusted for change in stock values..41,031,570x
    Less Total purchases and operating expenses..39,013,243x
    Less Working proprietor/partners salaries and wages..581,999
                 Net profit..1,436,330
Census Values in Economic Terms (NZSNA)
                 Operating surplus—
    Total sales and other income, adjusted for change in stock values17,980,49841,031,570x
    Less Interest, etc. received..258,822
    Less Total purchases and operating expenses16,725,56139,013,243x
    Less Interest, etc. paid..613,690
         Operating surplus1,254,9372,373,197
Value added
    Operating surplus1,254,9372,373,197
    Employer contributions28,96167,723
    Salaries and wages1,346,5752,755,114
    Depreciation143,302301,888
    Indirect taxes23,355101,076
    Plus capitalised salaries and wages31..
    Less subsidies received..212,138
                 Value added2,797,1615,386,860

Table 23.2. CENSUS OF DISTRIBUTION 1982-83 WHOLESALE TRADE

Statistical ItemUnitDivision 61 Wholesale Trade
Enterprise groupsNo.4,252
EnterprisesNo.5,093
Activity unitsNo.8,263
Ancillary activity unitsNo.367
Unpaid workers at end of February 1983No.179
Working proprietors and partners engaged at end of February 1983No.5,153
Paid employees engaged at end of February 1983No.76,664
Full-time equivalent working proprietors and partnersNo.4,702
Full-time equivalent paid employeesNo.73,314
           Full-time equivalent total persons engagedNo.78,016
Ordinary hours worked by paid employeesHrs(000)141,016
Overtime hours worked by paid employeesHrs(000)3,737
           Salaries, wages and commission paid to working proprietors and partners$(000)94,582
Salaries, wages and commission paid to paid employees$(000)1,117,055
Stocks—
    Opening$(000)3,454,562
    Closing$(000)4,028,730
Income—  
    Sales of goods bought for resale, and services$(000)19,934,488x
    Direct government cash grants and subsidies$(000)10,305
    Other income (excluding interest, etc.)$(000)3,108,374
               Sales and income (excluding interest, etc.)$(000)23,053,167x
    Interest, dividends, donations, royalties, patent fees and insurance claims received$(000)192,076
               Total sales and other income (including interest, etc.)$(000)23,245,243x
Expenditure—
    Purchases of goods for resale; materials for use in accommodation, catering or other personal and repair services$(000)16,812,961x
    Salaries, wages and commission paid to employees$(000)1,117,055
    Depreciation$(000)118,690
    Other purchases and expenses (excluding interest etc.)$(000)4,439,600
           Operating expenditure (excluding interest etc.)$(000)22,488,305x
    Interest, bad debts, donations, royalties and patent fees$(000)365,795
                   Total expenditure (including interest etc.)$(000)22,854,100x
             Net profit/loss after deducting working proprietors and partners salaries and wages$(000)870,729
    Operating surplus$(000)1,139,030
    Value added$(000)2,443,214
Fixed tangible assets—
    Additions to$(000)306,413
    Disposals of$(000)128,669
Floor space—
    Selling spaceSq.m.1 812 106
    Other spaceSq.m.4 722 311
Total spaceSq.m.6 534 417

Table 23.3. CENSUS OF DISTRIBUTION 1982-83 RETAIL TRADE

Statistical ItemUnitDivision 62 Retail Trade
Enterprise groupsNo.24,890
EnterprisesNo.25,559
Activity unitsNo.29,961
Ancillary activity unitsNo.227
Unpaid workers at end of February 1983No.3,084
Working proprietors and partners engaged at end of February 1983No.35,784
Paid employees engaged at end of February 1983No.116,301
Full-time equivalent working proprietors and partnersNo.33,702
Full-time equivalent paid employeesNo.95,603
          Full-time equivalent total persons engagedNo.129 306
Ordinary hours worked by paid employeesHrs(000)176,007
Overtime hours worked by paid employeesHrs(000)6,630
          Salaries wages and commission paid to working proprietors and partners$(000)346,301
Salaries, wages and commission paid to paid employees$(000)1,071,292
Stocks—
    Opening$(000)1,566,797
    Closing$(000)1,736,209
Income—
    Sales of goods bought for resale, and services$(000)13,755,783
    Direct Government cash grants and subsidies$(000)200,393
    Other income (excluding interest, etc.)$(000)128,632
           Sales and income (excluding interest, etc.)$(000)14,084,809
    Interest, dividends, donations, royalties, patent fees and insurance claims received$(000)56,082
           Total sales and other income (including interest, etc.)$(000)14,140,892
Expenditure—
    Purchases of goods for resale; materials for use in accommodation, catering or other personal and repair services$(000)11,028,119
    Salaries, wages and commission paid to employees$(000)1,071,292
    Depreciation$(000)108,540
    Other purchases and expenses (excluding interest etc.)$(000)1,158,826
           Operating expenditure (excluding interest etc.)$(000)13.366,777
    Interest, bad debts, donations, royalties and patent fees$(000)179,290
               Total expenditure (including interest etc.)$(000)13,546,067
    Net profit/loss after deducting working proprietors and partners salaries and wages$(000)417,937
    Operating surplus$(000)887,447
    Value added$(000)1,927,766x
Fixed tangible assets—
    Additions to$(000)248,113
    Disposals of$(000)75,454
Floor space—
    Selling spaceSq.m.5 006 516
    Other spaceSq.m.2 764 957
Total spaceSq.m.7 771 473

Table 23.4. CENSUS OF DISTRIBUTION 1982-83 RESTAURANTS AND HOTELS

Statistical ItemUnitDivision 63 Restaurants and Hotels
Enterprise groupsNo.7,834
EnterprisesNo.7,910
Activity unitsNo.8,596
Ancillary activity unitsNo.33
Unpaid workers at end of February 1983No.846
Working proprietors and partners engaged at end of February 1983No.11,426
Paid employees engaged at end of February 1983No.50,434
Full-time equivalent working proprietors and partnersNo.10,991
Full-time equivalent paid employeesNo.35,611
           Full-time equivalent total persons engagedNo.46 602
Ordinary hours worked by paid employeesHrs(000)61,757
Overtime hours worked by paid employeesHrs(000)1,491
           Salaries, wages and commission paid to working proprietors and partners$(000)61,113
Salaries, wages and commission paid to paid employees$(000)372,091
Stocks—
    Opening$(000)64,993
    Closing$(000)75,344
Income—
    Sales of goods bought for resale, and services$(000)1,892,389
    Direct Government cash grants and subsidies$(000)564
    Other income (excluding interest, etc.)$(000)24,783
           Sales and income (excluding interest, etc.)$(000)1.917,735
    Interest, dividends, donations, royalties, patent fees and insurance claims received$(000)8,058
               Total sales and other income (including interest, etc.)$(000)1.925,793
Expenditure—
    Purchases of goods for resale; materials for use in accommodation, catering or other personal and repair services$(000)943,017
    Salaries, wages and commission paid to paid employees$(000)372,091
    Depreciation$(000)55,388
    Other purchases and expenses (excluding interest etc.)$(000)379,026
           Operating expenditure (excluding interest etc.)$(000)1,749,523
    Interest, bad debts, donations, royalties and patent fees$(000)52,156
               Total expenditure (including interest etc.)$(000)1,801,679
           Net profit/loss after deducting working proprietors and partners salaries and wages$(000)73,353
    Operating surplus$(000)178,564
    Value added$(000)627,686
Fixed tangible assets—
    Additions to$(000)134,333
    Disposals of$(000)20,890
Floor space—
    Selling spaceSq.m.2916 111
    Other spaceSq.m.1 048 759
Total spaceSq.m.3 964 870

Table 23.5. CENSUS OF DISTRIBUTION 1982-83 PERSONAL AND HOUSEHOLD SERVICES

Statistical ItemUnitDivision 95 Personal and Household Services
Enterprise groupsNo.7,620
EnterprisesNo.7,668
Activity unitsNo.8,196
Ancillary activity unitsNo.35
Unpaid workers at end of February 1983No.237
Working proprietors and partners engaged at end of February 1983No.9,466
Paid employees engaged at end of February 1983No.22,096
Full-time equivalent working proprietors and partnersNo.8,980
Full-time equivalent paid employeesNo.19,048
           Full-time equivalent total persons engagedNo.28 027
Ordinary hours worked by paid employeesHrs(000)33,359
Overtime hours worked by paid employeesHrs(000)585
           Salaries, wages and commission paid to working proprietors and partners$(000)80,003
Salaries, wages and commission paid to paid employees$(000)194,676
Stocks—
    Opening$(000)59,969
    Closing$(000)62,948
Income—
    Sales of goods bought for resale, and services$(000)953,612
    Direct Government cash grants and subsidies$(000)'876
    Other income (excluding interest, etc.)$(000)5,637
           Sales and income (excluding interest, etc.)$(000)960,126
    Interest, dividends, donations, royalties, patent fees and insurance claims received$(000)2,606
               Total sales and other income (including interest, etc.)$(000)962,732
Expenditure—
    Purchases of goods for resale; materials for use in accommodation, catering or other personal and repair services$(000)411,601
    Salaries, wages and commission paid to paid employees$(000)194,676
    Depreciation$(000)19,270
    Other purchases and expenses (excluding interest etc.)$(000)169,401
           Operating expenditure (excluding interest etc.)$(000)794,948
    Interest, bad debts, donations, royalties and patent fees$(000)16,449
               Total expenditure (including interest etc.)$(000)811,397
           Net profit/loss after deducting working proprietors and partners salaries and wages$(000)74,311
    Operating surplus$(000)168,156
    Value added$(000)388,194
Fixed tangible assets—
    Additions to$(000)44,991
    Disposals of$(000)14,517
Floor space—
    Selling spaceSq.m.560,623
    Other spaceSq.m.680,741
Total spaceSq.m.1 241 364

Retail trade survey

The sample survey of retail trade was revised in June 1982, based on 15 store-type groupings from the 1977-78 Census of Distribution. The survey coverage was extended to include three new store- type groups: automotive, fuel, and repairs; liquor including licensed accommodation; and accommodation; while restaurants and takeaways, previously part of the other food group, is now a separate store-type group. The survey now follows internationally accepted definitions as used in the New Zealand Standard Industrial Classification.

Table 23.6. RETAIL TRADE SURVEY

Quarter EndedButcherSupermarket/GrocerOther FoodFootwearClothing & TextilesFurnitureHousehold AppliancesHardwareChemistDepartment & GeneralRestaurants & TakeawaysLiquor incl. Licensed AccommodationAccommodation*Other StoresSubtotalAutomotive. Fuel & RepairsAll Stores

* Excludes licensed accommodation. Accommodation store types do not usually hold trading stocks.

†A further analysis of this category is available on request.

Retail Sales $(million)
1983 3105.1703.352.046.1157.9156.3139.063.5103.3240.0175.5342.641.3290.32,616.41,687.44,303.8
4115.3778.261.355.0178.6162.3154.877.2120.3315.2181.0410.539.7353.63,002.91,797.64,800.5
1984 199.4722.253.748.8146.7147.9155.271.7104.8228.7180.0367.548.7299.02,674.21,819.74,493.9
2106.6738.350.862.3184.2159.5164.870.0104.5274.8193.4367.340.1295.72,812.41,867.34,679.7
3110.5765.654.952.3166.5180.0202.074.2114.6266.2198.7367.455.9306.12,914.82,175.55,090.3
4117.3867.167.661.8209.1184.1195.491.7139.0339.4212.0467.645.1397.63,394.82,134.35,529.1
1985 1105.3822.660.054.2170.3159.6177.586.3119.9243.7211.7422.959.2332.43,025.62,058.25,083.9
2114.8860.153.268.3212.2192.8211.491.1130.9284.4231.9428.546.7349.73,276.02,221.55,497.5
3117.6901.755.158.7197.8208.6212.588.1143.4279.1246.3448.957.4365.53,380.92,313.85,694.7
198119816.0137.93.559.0165.091.488.441.944.2373.411.868.2204.11,094.9454.91,549.8
19827.8156.13.966.5178.1111.695.145.352.3194.514.169.8-231.91,227.1608.51,835.6
19837.3157.74.775.7191.8115.289.4x51.355.1213.415.972.8-233.01,282.9568.71.851.6
19848.8165.46.279.3191.6117.399.056.6x62.1x221.417.278.4-260.61,363.7610.51,974.2
19858.7193.37.190.5204.8128.3147.964.270.1252.222.598.1-281.71,569.6744.62.314.2

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 sales 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: December quarter, 1980 (=1000), so that application of the index to the original figures, gives a series in constant December quarter, 1980 dollars.

Table 23.7. RETAIL TRADE SEASONALLY ADJUSTED

Quarter EndedTotal Sales or TurnoverSales per Head of Population
In Current $In Constant Dec Qtr 1980 $ Seasonally AdjustedIn Current $In Constant Dec Qtr 1980 $
As RecordedSeasonally AdjustedAs RecordedSeasonally AdjustedSeasonally AdjustedPercentage Change*

* Each quarter on previous quarter.

 $(million)$$$%
1983—Dec4,800.54,497.7x3,393.9x1,479.91,386.5x1,046.3x+ 2.3x
1984—Mar4,493.94,660.7x3,488.1x1,375.31,426.4x1,067.5x+ 2.0
            Jun4,679.74,818.0x3,519.0x1,440.21,482.7x1,083.0x+1.4x
            Sep5,090.35,121.0x3,603.7x1,570.41,579.8x1,111.7x+ 2.7x
            Dec5,529.15,174.6x3,504.7x1,688.31,580.1x1,070.2x-3.7
1985—Mar5,083.95,331.63,467.01,542.71,617.81,052.0-1.7
            Jun5,497.55,667.83,530.81,679.71,731.71,078.8+ 2.5
            Sep5,694.75,679.13,460.01,747.31,742.51,061.6-1.6

23.2 Census of Services 1980-81

The first economic Census of Services formed part of the series of integrated economic censuses of business activities in New Zealand being carried out by the Department of Statistics over a five-year period. The census covers the following activities of the New Zealand Standard Industrial Classification for the year ended 31 March 1981:

  1. Real Estate and Business Services.

  2. Sanitary and Similar Services.

  3. Social and Related Services.

  4. Recreational and Cultural Services.

Table 23.8. CENSUS OF SERVICES YEAR ENDED 31 MARCH 1981

Census Coverage No.
    Establishments and ancillary units..20,110
    Paid employees, and working proprietors/partners..237,572
Census Values in Accounting Terms
    Expenditure—$(000)..
    Purchases, including fuel and power500,890..
    Levies and duty49,147..
    Employer contributions46,769..
    Salaries and wages2,310,933..
    Depreciation73,081..
    Indirect taxes13,095..
    Insurances17,234..
    Interest, etc.103,574..
    Other expenses721,897..
             Total expenditure..3,836,621
    Stocks—$(000)
    Closing stocks72,943..
    Less opening stocks60,964..
  11,979
    Income—
    Interest, etc.50,189 
    Subsidies13,303..
    Rents, etc.12,876..
    Other4,194,957..
  4,271,324
             Total income..4,283,303
    Net Profit—
    Total income adjusted for stocks4,283,303 
    Less total expenditure3,836,621 
  446,682
    Less salaries of working proprietors or partners 136,438
      Net profit 310,244
Census Values in Economic Terms
    Operating surplus—
    Total income, adjusted for change in stocks4,283,303 
    Less interest, etc., received50,1894,233,115
    Total expenditure3,836,621 
    Less interest, etc., paid103,574 
  3,733,047
             Operating surplus 500,068
    Value added—
      Operating surplus500,068 
    Levies and duty49,147 
    Salaries and wages2,310,933 
    Employer contributions46,769 
    Depreciation73,081 
    Indirect taxes13,095 
 2,993,093 
    Plus capitalised salaries and wages1,2792,994,372
    Less subsidies 13,303
Value added 2,981,069

Table 23.9. CENSUS OF SERVICES 1980-81 INDUSTRY LEVEL BY ESTABLISHMENTS, STAFF AND SALARIES

ServiceEnterprise GroupsEnterprisesOperating UnitsPersons Engaged at End of FebruarySalaries and Wages Paid to Employees
EstablishmentsAncillary Units
Real Estate and Business Services—  Number  $(000)
    Land and estate agents7097651,08154,53648,368
    Real estate valuing and appraising878793-3051,089
      Total real estate7968521,17454,84149,456
    Legal services9009021,030-9,64761,320
    Accounting, auditing, and bookkeeping services1,1671,2231,30519,99265,407
    Data processing and tabulating services139149193-3,45838,652
    Architects332333358-1,4088,967
    Consulting engineers20720828122,13421,707
    Land surveyors132132167-1,53015,791
    Quantity surveyors474766-3842,850
    Town planning consultant services111113-39148
    Engineering, architectural, and technical services, n.e.c.21521826831,38613,836
      Total engineering, architectural, and technical services9389471,15356,88163,299
    Advertising agencies9910213411,53118,633
    Commercial artists and display specialists21721722016783,542
    Market research agencies23252925352,567
    Public relations consultant services535454-1831,198
    Advertising services, n.e.c.767788-3422,004
      Total advertising services46547452543,26927,943
    Security services474875-1,46913,177
    Debt collecting and credit rating services293358-4693,450
    Security services474875-1,46913,177
    Debt collecting and credit rating services293358-4693,450
    Typing, duplicating, and other office services898996-215789
    Contract packing services212123-2842,652
    Mailing and delivery services121212-186436
    Management consultant services9095107-3902,832
    Business services, n.e.c.36537343542,82518,971
    Total business services, n.e.c. (except rental and leasing)64467180645,83842,308
      Total business services4,2304,3655,0121439,085298,928
    Machinery and equipment rental and leasing18018222761,1649,381
    Total, real estate and business services5,1965,3956,4132545,090357,765
Sanitary Services
    Collection and disposal of refuse33133233811,2279,499
    Sewerage and urban drainage25125125631,45114,633
    Total sanitary and garbage disposal services38738859442,67824,132
    Cleaning services7017107911513,02349,289
    Fumigation and pest control services292929-89372
    Total sanitary and similar services1,1151,1271,4141915,79073,793
Social and Related Community Services
    Pre-school education1692761,478542,81516,116
    Primary education2692692,513131,512373,920
    Secondary education265265361-20,659319,563
    Tertiary education343444115,891197,433
    Other education services46152460822,62719,929
    Ancillary units servicing education77-847714
    Total education services1,1851,3325,0046673,551927,675
    General practitioners1,6871,6871,708-5,34322,425
    Private medical specialists522522523-1,2824,142
    Private dental practices765768789-2,59911,908
    Optometrists and dispensing opticians156158182-5963,188
    Physiotherapists13313314313551,277
    Chiropractors777780-209612
    Public and private hospitals1431523562263,610700,239
    Other health services159295403144,71743,619
    Medical, dental, and other health services3,6353,7864,1843778,711787,409
    Medical laboratories181864621,14410,075
    Dental laboratories13313313613281,252
    Radiologists in private practice292937-2631,848
    Medical and dental laboratories and radiologists180180237631,73513,175
    Private veterinary practices18118221939364,971
    Other veterinary practices, incl. clubs444475-3575,099
    Boarding kennels and catteries, etc.717171-14090
    Veterinary services, boarding kennels, and catteries, etc.29629736531,43310,160
    Ancillary units servicing medical, dental, other health, and veterinary services ..1010-181,37317,041
    Total medical, dental, other health and vet. services4,1114,2634,78612183,252827,786
    Licensed Old People's Rest Homes318324392175,53626,012
    Total social and related community services5,5975,90710,182204162,3391,781,473
Recreational and Cultural Services
    Motion picture production47495013733,825
    Motion picture distribution and projection8186181701,7669,426
    Radio and television broadcasting131345104,29766,756
    Total motion picture and other entertainment services139147276816,43680,008
    Racing and trotting clubs156156157-3,5075,743
    Self-employed jockeys, horse trainers and TAB9909901,339-4,41013,430
    Total amusement and recreational services, n.e.c.1,1461,1461,496-7,91719,173
    Total recreational and cultural services1,2851,2931,7728114,35399,181
    Total services13 17913 71719 781329237 5722,312,212

Table 23.10. CENSUS OF SERVICES 1980-81 INDUSTRY LEVEL BY EXPENSES AND SALES

ServicePurchases and Operating ExpensesTotal Sales and Other IncomeValue AddedNet Capital Additions
Real Estate and Business Services$(000)
    Land and estate agents76,208100,26874,6764,131
    Real estate valuing and appraising2,8916,2704,737225
      Total real estate79,099106,53879,4124,356
    Legal services120,076207,931156,3153,901
    Accounting, auditing, and bookkeeping services117,770190,388145,7813,021
    Data processing and tabulating services102,930113,90065,36126,468
    Architects23,26435,92422,775382
    Consulting engineers43,68058,38838,3341,121
    Land-surveyors22,79626,39220,2991,200
    Quantity surveyors5,5849,5497,050110
    Town planning consultant services50879046733
    Engineering, architectural, and technical services, n.e.c.27,63432,98420,360820
    Total engineering, architectural, and technical services123,466164,027109,2863,666
    Advertising agencies159,746168,44829,9741,559
    Commercial artists and display specialists12,08115,8457,970601
    Market research agencies6,4677,0913,414199
    Public relations consultant services3,0043,7692,097105
    Advertising services, n.e.c.7,1078,0763,452200
    Total advertising services188,404203,23046,9072,665
    Security services22,36023,95816,0301,095
    Debt collecting and credit rating services10,99211,2184,016168
    Typing, duplicating, and other office services2,2482,6981,447121
    Contract packing services12,59013,1204,115822
    Mailing and delivery services1,9442,16772025
    Management consultant services7,60210,0095,390275
    Business services, n.e.c.44,64451,73328,5621,564
    Total business services, n.e.c. (except rental and leasing)102,380114,90460,2804,070
    Total business services755,026994,379583,93043,790
    Machinery and equipment rental and leasing56,60563,15921,5715,514
    Total real estate and business services890,7301,164,076684,91353,660
Sanitary Services
    Collection and disposal of refuse42,67545,33415,6841,691
    Sewerage and urban drainage58,96459,48734,0813,091
    Total sanitary and garbage disposal services101,640104,82149,7664,782
    Cleaning services66,62475,22360,1001,606
    Fumigation and pest control services1,5662,1071,06479
    Total sanitary and similar services169,830182,150110,9306,467
Social and Related Community Services
    Pre-school education21,35821,81114,4381,061
    Primary education427,582431,263382,06343,435
    Secondary education368,532372,637328,35942,367
    Tertiary education258,004259,904195,63121,080
    Other education services30,42531,96020,6051,424
    Ancillary units servicing education1,4301,17369610
    Total education services1,107,3311,118,748941,792109,377
    General practitioners53,604104,65175,9122,756
    Private medical specialists13,74028,50819,334736
    Private dental practices33,44557,20937,599586
    Optometrists and dispensing opticians17,04223,92011,032575
    Physiotherapists3,1715,8484,28896
    Chiropractors2,1263,8602,51282
    Public and private hospitals946,852931,634760,50289,076
    Other health services58,06259,61346,8611,869
    Medical, dental, and other health services1,128,0431,215,244958,03995,777
    Medical laboratories18,01223,26715,909201
    Dental laboratories3,7346,4674,220153
    Radiologists in private practice4,0636,6784,623164
    Medical and dental laboratories and radiologists25,80936,41224,752518
    Private veterinary practices23,30130,79413,6871,129
    Other veterinary practices, including clubs19,79020,4656,776117
    Boarding kennels and catteries, etc.1,0741,32053796
    Veterinary services, boarding kennels and catteries, etc.44,16552,58021,0001,342
    Ancillary units servicing medical, dental, other health and veterinary services65,78364,74918,9112,112
    Total medical, dental, other health and veterinary services1,263,8001,368,9841,022,70399,749
    Licensed Old People's Rest Homes47,22351,31832,1589,310
    Total social and related community services2,418,3542,539,0491,996,653218,437
Recreational and Cultural Services
    Motion picture production14,21315,5596,2821,224
    Motion picture distribution and projection41,05246,60117,907116
    Radio and television broadcasting149,119145,95783,2698,187
    Total motion picture and other entertainment services204,384208,117107,4589,527
    Racing and trotting clubs75,39276,41933,1542,232
    Self-employed jockeys, horse trainers, and TAB77,932101,51347,9622,055
    Total amusement and recreational services, n.e.c.153,324177,93381,1164,286
    Total recreational and cultural services357,708286,049188,57413,814
    Total services3,836,6214,271,3252,981,069292,377

Table 23.11. CENSUS OF SERVICES 1980-81 REGIONAL SUMMARIES BY STATISTICAL AREA

ServicesEnterprise CroupsEnterprisesOperating UnitsPersons Engaged at End of FebruarySalaries and Wages Paid to EmployeesPurchases and Operating ExpensesSales and Other IncomeValue AddedNet Capital Additions
EstablishmentsAncillary Units

* For further information on health, education, and recreational and cultural services refer to Chapters 7, 8, and 11 of this, Yearbook.

Real Estate and Business Services— Number    $(000)  
    Northland15215517419536,47412,36718,65113,965337
    Central Auckland1,8711,9282,1591215,311128,415356,965443,093234,94516,605
    South Auckland- Bay of Plenty73975085435,34139,22288,449125,60980,0084,443
    East Coast454546-4623,7206,1518,8327,190304
    Hawke's Bay189195215-1,75912,24324,18535,34925,012863
    Taranaki133134147-9947,42113,62120,94315,3411,309
    Wellington1,1871,2201,375610,82094,666242,565305,71 7175,22923,594
         Total, North island4,0604,2014,9702235,640292,162744,303958, 195551,68947,456
    Marlborough464651-2811,9803,4765,3784,02634
    Nelson108112123-6894,7548,92312,9329,551679
    Westland343436-1701,1802,2463,0492,24911
    Canterbury70972977635,31935,71885,421117,85372,3433,523
    Otago262267313-1,87013,83130,15943,03228,149953
    Southland126129144-1,1218,14016,20123,63716,904945
         Total, South Island1,2151,2611,44339,45065,603146,426205,881133,2246,205
         Total. New Zealand5 1965 3956 4132545 090357,765890,7 302,164,076684,91353.660
Sanitary and Similar Services—
    Northland33334814763,1936,0176,5434,197274
    Central Auckland27227831943,38518,26456,30259,26032,1791,016
    South Auckland Bay of Plenty16216320831,8829,15122,92424,87515,111443
    East Coast151519-893469131,10065120
    Hawke's Bay58586815212,5867,1087,8275,069227
    Taranaki363749-4752,1523,9544,4932,83758
    Wellington23023527964,10217,28733,61436,52123,15 2640
         Total, North Island7908009901510,93052,979130,832140,6198 3,1972,679
    Marlborough181822-2169311,5801,8181,14966
    Nelson303039-2081,2332,6912,7801,80411
    Westland111115-1469581,3451,3981,168 
    Canterbury17818020932,68010,01817,83818,81312,62 8713
    Otago65679119164,22010,10810,5396,6972,944
    Southland393948-6943,4555,4366,1334,28753
         Total, South Island32833242444,86020,81438,99841,53127,7333,787
         Total, New Zealand1 1151 1271 4141915 79073,793169,830182,150110,9306,467
Social and Related Community Services*
    Northland18219041754,11647,81365,92169,33453,7356,369
    Central Auckland1,6571,7002,4936440,326461,605623,248661,183521,07751,464
    South Auckland-Bay of Plenty7918341,5553022,477256,071346,392365,024289,68229,057
    East Coast899018422,15423,95131,45332,87126,678984
    Hawke's Bay25927248896,56872,71996,709101,88781,1715,711
    Taranaki21021939635,33652,12367,10670,57857,1396,094
    Wellington1,0741,1301,8383733,822363,558500,602519, 922405,61857,876
         Total, North Island4,1674,3767,371150114,7991,277,8401,731,4301,820,7991,435,101157,554
    Marlborough596211421,45717,17822,17522,90618,8651,071
    Nelson14415125754,36146,53759,49262,02251,1753,642
    Westland38399811,44614,61219,85520,05415,6892,508
    Canterbury8078381,3662123,399245,166338,069354,039272,09827,328
    Otago3363546331911,851133,242182,318190,861151,95321,796
    Southland14815334365,02646,89865,01668,36851,7734,537
         Total, South Island1,4611,5532,8115447,540503,632686,924718,251561,55260,882
         Total, New Zealand5 5975 90710 182204162 3391,781,4732,418,3542,539,0491,996,653218,437
Recreational and Cultural Services
    Northland21213512139745,1646,0862,89254
    Central Auckland266268361163,58329,81999,963114,66251,2771,250
    South Auckland-Bay of Plenty25525631971,9059,17538,12845,45322,3031,738
    East Coast10101421588064,2915,0522,31574
    Hawke's Bay54547356442,18011,44113,4286,372247
    Taranaki50506726871,4827,1778,5703,979132
    Wellington19.9204291203,58236,176115,455108,14059,4965,200
         Total, North Island8278351,1605310,83280,612281,618301,391148,63311,695
    Marlborough1212141462201,1971,56660841
    Nelson28283832529704,5735,4222,81155
    Westland11111511626173,9424.4492,015233
    Canterbury262262323131,7179,56438,57543,11020,1471,014
    Otago777710968355,69219,51620,33310,206575
    Southland939311345091,5058,2879,7784,155200
         Total, South Island465465612233,52118,56976,09084,65839,9412,118
         Total, New Zealand1 2851 2931 7728114 35399,181357,708386,049188,57413,814
Total Services
    Northland3 8839967485,75858,45489,467100,61474,7897,034
    Central Auckland4,0604,1725,3329662,605638,1021,136,4791,278,198839,47973,334
    South Auckland-Bay of Plenty1,9442,0032,9364331,665313,619495,892560,961407,10335,631
    East Coast15916026342,86328,82342,80847,85536,8331,383
    Hawke's Bay560579844159,49289,729139,443158,491117,6257,048
    Taranaki42944065957,49263,17791,858104,58479,2967,594
    Wellington2,6842,7873,7836952,326511,687892,236970,300663,49487,310
     Total, North Island9,83310,20914,491240172,2011,703,5932,888,1833,221,0032,218,619219,385
    Marlborough13413820132,00020,30928,42731,66924,6471,212
    Nelson31032145785,51053,49475,67983,15665,3414,386
    Westland949516421,92417,36727,38828,95021,1212,813
    Canterbury1,9522,0082,6744033,115300,466479,903533,816377,21632,578
    Otago7387641,1462615,472156,985242,101264,815197,00526,268
    Southland403413648107,35059,99994,940107,91677,1195,736
     Total, South Island3,4633,6085,2908965,371608,619948,4381,050,321762,45072,992
     Total, New Zealand3 17913 71719 781329237 5722,312,2123,836,6214,271,3252,981,069292,377

23.3 Credit sales

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. 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. 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 existed from July 1955 until September 1983, when limits on minimum deposit and the maximum period of credit were removed.

In 1981 the Credit Contracts Act was passed. This is an Act to reform law relating to provision of credit under contracts of various kinds in order to:

  1. Prevent oppresive contracts and conducts;

  2. Ensure that all the terms of contracts are disclosed to debtors before they become irrevocably committed to them;

  3. Ensure that the cost of credit is disclosed on a uniform basis in order to prevent deception and encourage competition; and

  4. Prevent misleading credit advertisement.

The quarterly survey of hire-purchase advances made by the Department of Statistics was revised for the June 1980 quarter and the revisions made retrospective to the June 1977 quarter to enable comparisons to be made. For the revised survey the list of businesses surveyed was updated to include large finance companies not previously covered and retail stores whose sales on hire purchase exceeded $0.5 million during the year ended March 1978.

Sales on hire purchase by businesses covered by the revised survey represented some 92 percent of total hire-purchase sales in 1977-78 as recorded in the 1978 Census of Distribution.

Only sales covered by the regulations governing hire purchase are included in the survey. Credit sales, charge accounts, laybys, and other forms of instalment or credit selling covered by the Census of Distribution are not included in the quarterly figures.

Table 23.12. HIRE PURCHASE

Quarter EndedMotor Buses. Trucks, and TractorsCars, Motor Cycles, Caravans, etc.Plant and MachineryHousehold and Personal Goods, incl. TV SetsTotal Advances Under H.P. AgreementsAmount Owing Under H.P. AgreementsPercentage of Amount Owing Overdue
Advances Under H.P. AgreementsAdvances as a % of Value of Purchases FinancedAdvances Under H.P. AgreementsAdvances as a % of Value of Purchases Financed.Advances Under HP. AgreementsAdvances as a % of Value of Purchases FinancedAdvances Under H.P. AgreementsAdvances as a % of Value of Purchases Financed
1983—$(m) $(m) $(m) $(m) $(m)$(m) 
            Dec58.072154.35928.07971.478311.71,229.21.9
1984—
            Mar46.567134.46130.07170.884281.71,340.71.9
            Jun54.165160.96126.37780.084321.31,453.71.8
            Sep59.065185.05923.87292.882360.71,606.11.7
            Dec66.373176.85832.47887.283362.71,725.31.8
1985—
    Mar61.768147.15833.77780.683323.11,806.32.0
            Jun61.166159.06029.77892.183341.91,907.52.1
            Sep55.669163.05926.07592.582337.21,977.72.0
            Dec49.367158.46131.47994.383333.42,028.52.4

Credit card sales

A form of short-term credit trading which has grown rapidly during the past 3 years is the use of credit cards as a substitute for cash. This has largely been the result of the introduction of bank credit cards by the 4 trading banks. On 1 July 1983 bank credit became available at Post Office Savings Banks. Table 23.13 gives the value of sales by trading bank cards, Trustee bank Visa, American Express and Diners Club.

Table 23.13. VALUE OF CREDIT CARD SALES

YearTotal Advances Outstanding*Billings
N.Z. Cardholders Spending in New ZealandN.Z. Cardholders Spending OverseasTotal

*As at December.

Source: Reserve Bank of New Zealand

 $(million)
1982230.4608.0x157.1766.0x
1983316.9850.2181.11,031.3
1984428.41,110.4x238.7x1,349.1x
1985483.51,305.1237.01,542.1

23.4 Regulation of commerce

Legislation relating to commercial practice

The Commerce Act 1975 is concerned with the effective development of industry and commerce through the encouragement of competition and to prevent irregularities in the areas of monopolies, mergers, takeovers and trade practices. The Commerce Amendment Act, which came into force on 1 April 1984, has modified the proceedings of the Commerce Commission, permitting greater informality and expedition in the vetting of merger and takeover proposals.

Trade practices—Part II of the Commerce Act is designed to encourage competition through the prevention of restrictive trade practices. Some of these practices, for example, collective tendering, are prohibited. Collective pricing agreements and individual resale price maintenance arrangements require prior approval of the Commerce Commission in terms of defined public interest criteria. Specific product distribution and market allocation practices do not require prior approval but can be subject to order if the Commission feels such practices are contrary to the public interest.

Monopolies—Monopolies and oligopolies are subject to investigation in accordance with public interest criteria.

Mergers and Takeovers—Certain classes of mergers and takeovers, involving total assets exceeding $20 million or certain defined industries, must be notified to the Commerce Commission for prior approval.

Control of Prices—A limited number of goods and services such as steel, cement, pharmaceuticals, some canned foods, sugar, flour and butter are subject to price control under the Commerce Act 1975. These are listed in the Positive List of Goods and Services, changes to which are notified by the Minister of Trade and Industry under the Commerce Act 1975. Price increases of goods and services on this list are subject to approval by the Secretary of Trade and Industry. The Secretary's decisions are subject to appeal to the Commerce Commission.

From 1 June 1984, under the Transport Amendment Act 1982, only taxi fares are subject to price control by the Ministry of Transport.

The Secretary for Energy, has control over prices of energy products included on the Positive List under the Ministry of Energy Act 1977.

Consumer Council and Consumers' Institute

Consumers' Institute works under the functions laid down in the Consumer Council Act 1966 and the policies of the Consumer Council. Its activities include comparative tests and surveys of consumer goods and services; research into and advice on legal, financial, health and welfare matters; representations to parliamentary committees and public inquiries; consumer education; liaison with business, trade and safety associations; and a complaints advisory service.

At the end of 1985,140 197 subscribing members received the monthly magazine Consumer. Several books were available through bookshops, and the quarterly Consumer Action was sent to schools.

Membership subscriptions and sales of publications provide about 70 percent of the institute's finances. The remainder comes from government grants and selected non-commercial sources. While the institute liaises and co-operates with others, it maintains complete independence and impartiality.

Consumer Affairs

In December 1985, following completion of the report of the Consumer Affairs Unit on the establishment of a Ministry of Consumer Affairs, the Government gave its approval to the establishment of a ministry.

The ministry will be a division of the Department of Trade and Industry but with direct responsibility to the Minister of Consumer Affairs. Although, at the time of publication, final decisions had not been taken on the functions of the ministry, it is likely that the ministry's broad role will be to initiate and coordinate programmes of consumer law reform and consumer education. Regional representation of the ministry has also been recommended so that it is accessable to all consumers, and so that the ministry is in touch with market conditions throughout the country. The ministry is expected to be formally established by June 1986.

Complaints advisory services on consumer matters continue to be provided by the Consumers' Institute, located in the four main centres, by Citizens Advice Bureaus and by voluntary Community Law Centres. Small Claims Tribunals, of which they are approximately. 36 located throughout New Zealand, and law courts are also courses of action open to complainants on consumer matters.

Liquor sales licensing

The principal source of legislation governing the sale of liquor in New Zealand is the Sale of Liquor Act 1962. As a general rule, that Act provides that no liquor may be sold without the appropriate licence or a club charter, and licences may only be authorised if it is shown that they are necessary or desirable in particular localities. The Act also serves to regulate the conduct of the licensed trade and the provision and standard of accommodation, amenities, and service provided for the public.

In 1981 that part of the Act dealing with the licensing of wine makers was transferred to a new Act, the Wine Makers Act 1981, which introduced a procedure for ensuring that wine which is to be exported is of an appropriate standard.

The Licensing Control Commission established under the Sale of Liquor Act has the following functions:

To ascertain the requirements of the public as to the provision of accommodation services and other facilities on licensed premises; to determine what new licences and club charters are necessary or desirable; and to authorise their issue. It is also the commission's function to prescribe and enforce standards of accommodation, facilities and services on licensed premises, and to hear appeals from licensing committees decisions.

There are 21 licensing committees throughout the country. These are serviced by the local District Courts. Each committee has five members, of whom four are nominated by the local authorities in the area. The chairman is a District Court judge. The functions of licensing committees are to issue licences, renew licences annually, and hear applications for the cancellation or suspension of licences on the grounds of lack of hygiene or fire safety or the failure of the licensee to conduct the premises in a proper manner.

There is a right of appeal to the Licensing Control Commission from most decisions of a licensing committee except on a matter of law or character, in which case the appeal is to the High Court. Some of the commission's decisions are themselves, subject to appeal to the High Court and an appeal may be brought in any case on a point of law. Such appeals lie with the administrative division of the High Court.

The types of licences which may be granted include hotel, tavern, and tourist house (premises and keeper's) licences, and wholesale, wine reseller's, booth, airport, ship, food and entertainment, and club licences. The food and entertainment licence and the club licence were introduced in 1980 to replace respectively the restaurant, theatre, cabaret, and caterer's licences and the general ancillary licence. Accordingly, at 1 April 1981 all existing licences of those former types converted automatically into food and entertainment or club licences. With both new types of licence the Licensing Control Commission has a discretion to fix hours (within broad statutory parameters) and conditions appropriate to the particular licensee.

A number of permits for specific purposes are also provided for under the Act. For example, a permit is available to the owners of unlicensed restaurants whereby patrons may bring their own liquor to the restaurant for consumption with their meal. In 1982 a wine distributor's licence was introduced, which authorises the holder to sell wine to other licensees only.

Licences in force at 30 June 1984 comprised 651 hotel keepers licences, 7 special hotel keepers licences. 4 extended hotel keepers licences. 403 tavern keepers licences, and 134 tourist house keepers licences. In addition there were 173 wholesale licences, 384 wine resellers licences, 142 wine makers licences, 550 food and entertainment licences, 1437 club licences, 31 ship licences, 5 airport licences, 13 limited wholesale licences and 3 wine bar licences. There were also 396 chartered clubs. A total of 967 Bring Your Own (BYO) permits and 2 vineyard bar permits were issued up to 30 June 1984.

Wine makers were formerly licensed under the Sale of Liquor Act. However, the Wine Makers Act 1981 provided for the general licensing of wine makers as from 1 April 1982.

The Sale of Liquor Act was amended in 1979 to empower a licensee or manager to refuse to admit to a public bar any person whom he has reasonable cause to believe will, if admitted to the premises, engage in violent, quarrelsome, insulting, or disorderly conduct, or provoke other persons to engage in such conduct on the premises. The Act was further amended in 1981 to allow the sale of imported wine by wine resellers.

New licences. The Licensing Control Commission decides after a public inquiry, at which all interested parties may make representations, whether the issue of any new hotel or tavern premises licences or wholesale or wine resellers licences are necessary or desirable in particular localities. In the case of a hotel or tavern premises licence the commission prescribes the minimum standards of accommodation, services, and other facilities that must be provided. There is provision for a poll of residents to be taken to determine whether they desire that a hotel or tavern be established in their locality. If the majority of votes recorded at the poll is against the issue of the licence, the commission may not authorise such

a licence unless special circumstances exist. Subject to the result of any such poll, the commission may then call for applications for the new hotel or tavern premises or wholesale licence and may grant it to the most suitable applicant. When the commission decides to issue a new wine reseller's licence, however, the matter is referred to the appropriate licensing committee, which then invites and considers applications for the licence. Applications for all other types of licences may be made at any time and are considered at public hearings in various centres throughout the country.

Hours of sale. The Sale of Liquor Act 1962 governs the hours of sale. A special general poll was held on 23 September 1967 concerning the closing hours for the sale of liquor in hotels, taverns, and chartered club bar rooms. Since 1917 the closing hour had been 6 p.m. The proposal for later closing was carried, and the new hours of 11 a.m. to 10 p.m., came into effect from 9 October 1967. Hotels and taverns may also seek authority to open earlier than 11 a.m., but may not be open for more than 11 hours each day. The Sale of Liquor Amendment Act 1976 allowed for further extensions upon application for individual hotels or taverns. Orders may be made permitting these to remain open until 11 p.m. on Friday or Saturday or on Christmas Eve and until 12.30 a.m. on the morning of New Year's Day. Any such extension is in addition to the 11 hours per day during which liquor may normally be sold to the public. With certain exceptions, sales from hotels and taverns are prohibited on Sundays and Christmas Day and Good Friday.

Legislation in 1960 authorised hotels to serve liquor to guests and lodgers partaking of a meal for consumption with that meal. An amendment in 1976 extended the hours, which are now from 9 a.m. on any day to 1 a.m. the following morning. A further amendment in 1980 applied these hours to those taverns which operate a dining room or restaurant facility.

Prior to the 1980 amendment, different hours were prescribed for restaurant, theatre, cabaret, and caterer's licences. With the change to the new food and entertainment licence, however, the commission is authorised to fix hours of sale between 9 a.m. on any day appropriate to the particular licensee and 3 a.m. on the following day. Different times may be fixed for different days of the week and for different periods of the year. Similarly, the hours under a club licence are set by the commission on an individual basis, but must generally be between 11 a.m. and 10 p.m. on any day. The permits for unlicensed restaurants authorise consumption by patrons of their own liquor until 11.30 p.m. on any day, and the vineyard bar permit authorises sales until 9 p.m. except on Sundays, Good Friday, or Christmas Day.

Drinking age. The Sale of Liquor Amendment Act 1969 made provision from 24 October 1969 for the sale of liquor to persons of the age of 20 years; liquor may also be supplied to persons of 18 years of age or above if the person is accompanied by a spouse of 20 or more years of age or a parent. The 1976 amendment to the Act also provided for a family lounge permit, whereby parents may take their underage children into designated parts of hotels, taverns, or chartered clubs. The 1980 amendment replaced the word “parent” in both instances by the phrase “parent or guardian”, and further provided that a child accompanied by, and in the care of, any other adult member of his or her family may now be admitted into a family lounge bar. Liquor may be supplied to an unaccompanied person of 18 years of age or above as part of a meal provided in accordance with the provisions of the Act.

Licensing trusts. The system of trust control in New Zealand is an alternative to the traditional means of controlling liquor outlets through privately-held licences supervised by licensing committees, and the Licensing Control Commission gives the public an indirect control over the conditions under which liquor is sold. Licensing trusts are elected by the residents and are responsible to them, similar to local bodies.

The first licensing trust in New Zealand was set up in 1944 following the carrying of restoration in the former Invercargill no-licence district. There are now eight district trusts: Ashburton, Clutha, Geraldine, Invercargill, Masterton, Mataura, Oamaru, and Porirua. In addition an increasing number of local trusts scattered throughout New Zealand are operating hotels and taverns. Because of the circumstances of the remaining no-licence districts and their relation to the metropolitan areas of Auckland and Wellington, legislation was introduced in 1963 providing a special procedure if any of those areas should carry restoration. A new form of trust control, known as suburban trusts, was introduced.

Prior to 1975, six suburban trusts had been constituted: Johnsonville; Terawhiti; Wellington South (in Wellington); and Mt Albert; Portage; and Waitakere (in Auckland). These trusts held licences under the Sale of Liquor Act and had a preferential right to all hotel, tourist house, or tavern premises licences or wholesale licences authorised by the commission in their areas. In 1975 these trusts and the Birkenhead Local Licensing Trust were converted into district trusts, which did not hold such licences and were then not subject to the jurisdiction of the Licensing Control Commission. They were also free to choose the nature of the liquor outlets and where and when they should be established.

The 1976 Amendment to the Licensing Trusts Act converted these trusts back to suburban trust status, bringing them under a degree of supervision by the Licensing Control Commission but not to the same extent as that which prevailed prior to 1975. The trusts are still free to establish what outlets they see fit without the need to hold licences under the Sale of Liquor Act, but the commission's approval must first be obtained. This allows the commission to consider the requirements of the particular area of which the suburban trust is part, as well as providing an appropriate forum in which objections to the trust's proposals may be heard. Local residents also have the right to apply to the commission for a poll to be conducted to determine if any proposed new premises should be established in their area.

There are also local licensing trusts which are established to operate a new hotel or tavern authorised by the commission. Local trusts are set up following the carrying of a poll to determine if the residents desire that a new licence be issued to a trust.

The Licensing Trusts Act was again amended in 1977, principally to permit licensing trusts to operate catering facilities on the same basis as holders of a food and entertainment licence may operate their premises under the Sale of Liquor Act.

In addition the same right to apply for later hours on Fridays, Saturdays, Christmas Eve, and New Year's Eve that private licences enjoy under the Sale of Liquor Act was conferred on licensing trusts by this amendment. The Licensing Trusts Act was further amended in 1980 to apply to licensing trusts those changes made by the Sale of Liquor Amendment Act 1980.

Further information

Census of Distribution 1977-78—Department of Statistics (bulletins and volume)

Report of the Consumer Council (Parl. paper G 29).

Department of Trade and Industry (Parl. paper G. 14)

Licensing Control Commission (Parl. paper E. 8)

Licensing Polls 1984 (Parl. paper E. 9B, 1984)

Monthly Abstract of Statistics—Department of Statistics

Chapter 24. 24 Overseas trade

24.1 Introduction

New Zealand has always been heavily dependent on overseas trade. Its economy developed as a complement to the British economy with the bulk of New Zealand's dairy, meat and wool exports going to Britain. From the beginning of the 1960s there has been increased emphasis on diversification away from this dependence on the British market for agricultural exports. This has been reflected in the growth of beef exports to the United States, of cheese and forest products exports to Japan, and of lamb exports to the Middle East, the United States, and Canada; the establishment of a growing trade in meat and dairy produce with the developing countries of South East Asia, the Middle East, and Latin America; the growth in exports to the U.S.S.R.; the expansion of trade with Australia and with other South Pacific countries; and the export of an increasing range of manufactured goods to supplement agriculture as a source of export earnings.

Transport to overseas markets

The bulk of New Zealand's exports are farm products that come to hand for shipment in seasonal cycles. The cyclical nature of the produce is mos'. pronounced for lamb, apples and pears, kiwifruit and other horticultural products, but also it applies to a marked extent to mutton, beef and wool. Butter, cheese and other dairy products are available throughout the year, however the volume is considerably greater between October to March than during the remainder of the year. The peak season for all the animal products is much the same, being roughly November to May, while for horticulture there are 2 peak periods, from October to December and again from February to May.

The seasonality presents transportation problems in the marketing process. Furthermore, most of the commodities are perishable and require continuous refrigeration for periods of 2 to 3 months between production and consumption. The demand for sea freight space lags a little behind the season, generally building up in January and declining in June. An examination by a streamlining committee of the demands that increased production was making on transport, storage, handling, and shipping services led in 1964 to the establishment of an Exports and Shipping Council; an independent body whose main purpose is to improve the efficiency and economy of New Zealand trade as it relates to transport services. Shipping received special attention as shipping costs absorb a substantial portion of market returns. In the early years of its formation the Exports and Shipping Council succeeded in bringing into effect many of the recommendations of the streamlining report on port, shipping, transport and other services. More recently airfreight has received similar attention as New Zealand's horticultural trade expands and competes with other industries for export air cargo space in peak periods.

Since 1980 the membership of Exports and Shipping Council has expanded in recognition of the need to take into account changes in production and transportation. The airlines, fishing, horticulture and forestry industries have become members. All the major industry organisations in New Zealand are represented on the council whose membership now includes the producer boards, freezing companies, railways, road transport operators, shipping groups, airline operators, harbour boards, chambers of commerce, manufacturers, forestry, fishing and horticultural industries. The New Zealand Ports Authority, Department of Trade and Industry and the Ministry of Transport have observer status.

The Exports and Shipping Council meets regularly and continues to serve as a forum for discussion between member organisations, and frequently, with a Minister of the Crown. The council encourages co-operation and the exchange of information through the presentation at meetings of profiles on industry plans and developments, particularly where these affect the movement and handling of goods by land, sea or air. By these means the council is well placed to advise Government of collective industry views on related policy issues.

Trade statistics

Source of data. Import and export statistics are compiled by the Department of Statistics using data from copies of entries submitted by the importers/exporters and their agents via the Customs Department.

Basis of valuation.Exports—Exports are shown on an f.o.b. (free on board) valuation basis in New Zealand dollars. In some cases, however, goods are sent on consignment and the selling prices are not known until goods are disposed of at their destination. In these cases f.o.b. values are assessed on the basis of prices current at the time of export.

Goods of foreign origin previously imported into New Zealand are valued in the same way as goods of New Zealand origin, irrespective of whether the goods exported are exempt from import duty, exported ex-warehouse, or exported under drawback. In some instances the ultimate destination of exports is not know 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 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 distinction is made between exports of New Zealand produce and re-exports of imported goods.

Imports—All v.f.d. (value for duty) and c.i.f. (cost including insurance and freight) values are shown in New Zealand dollars. These values are converted from the foreign currency at the time an import entry is lodged with the Customs Department. The exchange rate used for the conversion is set by Customs on a two-weekly basis. It should be noted that where there have been wide flutuations in the exchange rate for a specific country it is not feasible to convert the New Zealand totals back to a foreign currency total.

Two values are given for imports. The v.f.d. on which customs duty is based, equates approximately with the f.o.b. cost of the goods in the exporting country though the former often excludes special export packaging and other costs incidental to delivering the goods on board ship. Further differences may arise from price fluctuations between the purchase date and the date of shipment, and from different export and domestic price levels. The other valuation is the c.i.f. which represents the cost to the importer of buying the goods and bringing them to this country to the wharfside.

Import totals do not include gold and current coin.

General—It should be noted that Australia includes Cocos, Norfolk Island, and Christmas Island. The United States includes American Samoa, Guam, Pacific Islands Trust Territory, Puerto Rico, U.S. Virgin Islands and miscellaneous U.S. Pacific Islands.

Balance of merchandise trade

New Zealand's balance of merchandise trade for the 1984—85 trade year ended 30 June 1985, showed a deficit of $1,156.8 million. Total exports were valued at $11,315.8 million (f.o.b.) and imports at $12,472.6 million (c.i.f.).

Exports

The growth and diversification of the New Zealand economy are heavily dependent on increasing exports to pay for rising imports of goods and services and the overseas investment needed by industry and a growing population. 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. The traditional export commodities—dairy products, meat, and wool—remain the backbone of export trade. However, commodities produced by the fishing, forestry, horticultural, and manufacturing industries are of increasing importance.

The 4 major countries purchasing New Zealand produce during 1984—85 were Australia ($1,773.9 million), Japan ($1,658.9 million), the United States ($1,644.0 million) and the United Kingdom ($1,020.8 million).

Meat and meat preparations amounted to 20.2 percent ($2,228.1 million) of New Zealand produce exported. The main countries purchasing beef and veal were the United States ($654.9 million), Canada ($99.7 million) and Japan ($47.0 million). Lamb exports to Iran amounted to $333.5 million. The next largest customer was the United Kingdom ($332.4 million), followed by Japan ($38.6 million) and the United States ($33.6 million). Lamb exports totalled $1,019.2 million for the 1984-85 trade year.

Dairy product exports increased by 17.2 percent ($1,426.5 million) over the 1983-84 figure ($1,217.4 million). Major customers of cheese exports ($256.8 million) were Japan ($68.2 million), the United States ($63.2 million) and the United Kingdom ($28.7 million). Total butter exports amounted to $636.5 million during 1984-85. The United Kingdom purchased $233.9 million of butter. Other main countries were lran ($95.3 million), Iraq ($26.7 million) and Peru ($14.7 million).

The value of wool exports increased by 32.5 percent from $1,113.3 million in 1983-84 to $1,475.4 million in 1984-85. Japan purchased the largest amount ($197.1 million), with the People's Republic of China ($195.1 million), the United Kingdom ($186.8 million), Belgium ($94.8 million), France ($94.4 million) and the U.S.S.R. ($88.6 million).

The export of fish, including crustaceans and molluscs increased by $144.4 million over the previous year. The 1984-85 value was $513.7 million.

Kiwifruit exports amounted to $171.8 million, 34.9 percent of total fruit and vegetable exports ($492.5 million).

Other significant exports during the 1984-85 trade year were unwrought aluminium ($513.3 million), hides and skins ($356.3 million), casein ($216.2 million), wood pulp ($202.7 million), newsprint ($147.5 million) and sawn coniferous timber ($122.1 million).

Imports

Japan was New Zealand's principal supplier with $2,496.4 million (c.i.f.) worth of goods imported during 1984-85. Australia was the next largest supplier with $2,337.3 million, followed by the United States ($2,055.6 million) and the United Kingdom ($1,087.8 million).

Machinery and transport equipment were the largest single section of commodities imported in the 1984-85 trade year with a value of $4,109.6 million (c.i.f.). Of this amount, $1,214.0 million was for road vehicle purchases and $593.3 million for machinery specialised for particular industries.

The second largest group of imports was the manufactured goods classified chiefly by material ($2,433.2 million). Textile yarn, fabrics and made-up articles, etc. amounted to $759.2 million of the total group and iron and steel imports were valued at $635.2 million.

Imports of mineral fuels, lubricants and related materials came to $1,659.7 million, or 13.3 percent of total imports. A 40.0 percent increase in imports of chemicals was recorded in 1984-85. Imports in this area went from $1,080.8 million the previous year to $1,512.8 million.

Purchases of crude inedible materials (except fuels) amounted to $601.2 million. Of this, imports of crude fertilisers and crude minerals accounted for $197.6 million while metalliferous ores and metal scrap amounted to $207.1 million.

Other large value commodities imported during 1984-85 were fruit and vegetables ($181.7 million), coffee, tea. cocoa and spices ($128.5 million), sugar, sugar preparations and honey ($84.9 million) and beverages ($84.3 milion).

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.

Table 24.1. TRADE PER HEAD OF MEAN POPULATION

Year Ended 30 JuneExports (f.o.b.)Imports (c.i.f.)
 $$
19811,925.851,912.63
19822,190.322,398.66
19832,477.652,371.62
19842,659.222,781.40
19853,459.223,812.85

Table 24.2. VISIBLE BALANCE OF MERCHANDISE TRADE

Year Ended 30 JuneTotal Exports (f.o.b.)Total Imports (c.i.f.)Excess Exports(+) or Imports(-)
 $(000)$(000)$(000)
19848,623,7629,020,069-396,307
198511,315,80212,472,592-1,156,790

Visible trade is not the only factor to be taken into account in considering the balance of payments between countries. These other factors are given in chapter 29, National economy.

Trade agreements and organisations

Trade commissioner service. The Department of Trade and Industry assists in promoting overseas trade through its Trade Commissioner service. The Trade Commissioners' primary function is to protect and promote New Zealand's economic and commercial interests in general and its export interests in particular. There are currently Trade Commissioners at posts located in Adelaide, Athens, Baghdad, Bahrain, Bangkok, Bonn, Beijing, Brisbane, Canberra, The Hague, Hong Kong, Jakarta, Kuala Lumpur, Lima, London, Los Angeles, Manila, Melbourne, Moscow, New Delhi, New York, Noumea, Osaka, Ottawa, Paris, Perth, Port Moresby, Riyadh, Rome, San Francisco, Seoul, Singapore, Suva, Sydney, Tehran, Tokyo, Vancouver, Vienna, and Washington. There are marketing officers in Santiago and Mexico and in addition there is a Trade Correspondent in Tahiti and Hawaii. Trade Correspondents are normally appointed from Air New Zealand staff overseas and undertake trade work in addition to their Air New Zealand duties. A full list of the overseas representatives and their addresses is listed in Chapter 4, International relations and defence.

Trade Commissioners can help new exporters to become established, and established exporters expand and diversify their sales. They can help by reporting on market prospects for particular products; supplying information on access conditions (customs duty, sales tax, quotas) as well as other market requirements such as packaging, labelling, plant and animal health requirements, and by providing commercial intelligence and advice. Trade Commissioner reports can analyse the market conditions and recommend the most appropriate marketing methods. New Zealand businessmen and women may be saved much time and trouble by enlisting in advance the services of the Trade Commissioner, whose in-depth knowledge of local conditions and whose close connections with business and Government officials ensures that valuable advice is available.

In addition Trade Commissioners monitor the overall pattern of New Zealand trade with their territory and report on any significant developments such as changes in legislation or regulations which could affect New Zealand exports. They also help ensure that the Government officials and influential people in their territory are aware of New Zealand's export interests. From time to time they are required to make official representations to the government concerned, as well as representing New Zealand at international conferences.

Business people may write direct to the New Zealand Trade Commissioner in the country concerned. However, where possible, it is preferred that requests be made though the Department of Trade and Industry in New Zealand, where preliminary advice and assistance is available.

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 2 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 did not correct 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. New Zealand took an active part in these negotiations whilst making it clear that the extent of its contribution to a successful outcome was dependent upon improvements in conditions of trade relating to products of principal export interest. New Zealand's global tariff offer represented a “binding” of certain tariff rates provided for by the revised tariff introduced from 1 July 1978, and covered items with a trade value of around $579 million. In addition, New Zealand made offers in the context of bilateral negotiations whereby participants exchanged requests for and offers of trading concessions on both tariff and non-tariff barriers affecting agricultural and industrial products. New Zealand also participated in a series of multilateral negotiations aimed at the formulation of codes of conduct, elaborating on or in addition to the existing GATT rules on international trade.

Useful concessions were obtained by New Zealand on tariffs and access for our major export products, particularly as the result of bilateral negotiations with the United States, the EEC, and Canada. Some benefit is also expected to derive from the multilateral arrangements negotiated on dairy and meat products, as well as the extensive tariff reductions which will be made by participating countries over the next few years on manufactured goods. A major disappointment for New Zealand was that the negotiations failed to grapple with the basic problems of agricultural protectionism and access, leaving relatively untouched the differences in rules and attitudes which exist between trade in industrial and agricultural products.

New Zealand Export-Import Corporation. The New Zealand Export-Import Corporation was established under the New Zealand Export-Import Corporation Act 1974 with the objective of promoting and encouraging the development of New Zealand's overseas trade. The corporation operates as a commercial enterprise. It may act either on its own account or on behalf of manufacturers, producers, exporters or importers as required. The corporation is also entitled to act as a purchasing and selling agent for the Government and to undertake trade transactions on behalf of the Government.

The affairs of the corporation are managed by a board of directors comprising representatives of the private sector with wide commercial experience and 2 Government representatives, 1 each from the Department of Trade and Industry and the Ministry of Foreign Affairs.

The corporation currently maintains a Trade Centre in Sydney, and it has representatives based in Caracas, Venezuela and Kuala Lumpur, Malaysia. It holds the New Zealand interest in the Bahrain— New Zealand Cold Storage and Warehousing Company (BANZ) which operates a port and storage facility in Bahrain.

Emergency Protection Authority. The Emergency Protection Authority operates under Sections 10A to 10E of the Industries Development Commission Act 1961 and Section 4 of the 1979 Industries Development Commission Amendment Act. It was set up under an amendment to the Tariff and Development Board Act 1961 of 22 November 1967. Its function is to advise, when requested by the Minister of Customs, the Minister of Trade and Industry, or the Minister of Overseas Trade, whether urgent action is necessary to protect New Zealand industry in relation to the importation of any goods and if so the nature of such action.

Export awards. The Export Award Scheme administered by the Department of Trade and Industry affords recognition to individuals, companies and organisations which have made significant contributions to the expansion of New Zealand's export trade. Since the scheme was introduced in 1965, 146 New Zealand exporters have been granted an export award.

The Governor-General's Award for exceptional export performance, is open only to winners of the Export Award who have had at least a further 5 years exporting with exceptional sustained export performance. Twelve companies have been granted the Governor-General's Award since its inception in 1974.

The Added Value Export Award, also administered by the Department of Trade and Industry, was introduced in 1985. This award gives recognition to organisations in New Zealand which have demonstrated enterprise skill and initiative in successfully producing and exporting a product unique in its field and incorporating an outstanding degree of added value. To date 1 company has been granted this award.

Export credit insurance. The Export Guarantee Office (EXGO) operates in accordance with the Export Guarantee Act 1964. The office's function is to promote export trade by providing insurance against commercial and political risks arising from the export of goods or services. It also provides guarantees to lending institutions for amounts advanced to exporters of goods or services which are covered by a contract of insurance issued by EXGO. The Export Guarantee Office can provide a wide range of policies sufficient to meet most requirements.

Industries Development Commission. The Industries Development Commission superceded the Tariff and Development Board in 1975 and operates under the Industries Development Commission Act 1961 administered in the Department of Trade and Industry.

The commission acts as an independent advisory body to government and unlike government departments does not perform an executive or administration function on behalf of government.

The functions of the commission are set out in Section 7 of the Act and are generally to inquire into and report on matters relating to industrial development, protection at the frontier, industry assistance and other matters affecting the protection and development of industry and overseas trade whether by means of the tariff or otherwise.

References to conduct inquiries come from either the Minister of Customs, the Minister of Trade and Industry or the Minister of Overseas Trade.

Present emphasis of the commission's work has been on industry development studies. Work has been completed on the studies and the industry plans have been implemented. The industries covered by this programme represent a large and important part of New Zealand's manufacturing sector. During 1985 the commission completed its enquiry into the Egg Industry, and has reported to the Government on the Town Milk Industry.

Customs

The New Zealand Customs Tariff dates back to June 1841 when the first Customs Regulation Ordinance was passed. In the latter half of the nineteenth century and the first 2 decades of the present century, tariff policies were unsophisticated and tended to reflect the prevailing economic philosophy, the development of the country's agricultural base, and the British preferential system. From 1921, however, tariff policies directed at encouraging and protecting manufacturing industries were given greater importance. This policy evolution received a temporary check following the Ottawa Agreement of 1932 whereby, in return for concessions from the United Kingdom related to New Zealand's agricultural products, further preferences were accorded to British goods and some constraint placed on the use of the tariff for purely protective purposes. Recently the emphasis has moved away from quantitative restrictions towards tariffs as the principal means of protection for domestic industry.

The structure of the tariff was changed from 1 July 1962 when the Standard International Trade Classification was adopted. Since 1 July 1967, however, the tariff has been based on the Customs Cooperation Council Nomenclature (CCCN).

Consequential to the United Kingdom's decision to enter the European Economic Community, preferences on goods of United Kingdom origin were phased out, the process having been completed on 1 July 1977 with the exception of certain automotive products. Commonwealth Preferential Country rates were discontinued from 1 July 1978 but the former recipients of these preferences benefited in lieu from New Zealand's extended Generalised System of Preferences favouring developing countries.

On 1 July 1978 a fully revised Customs Tariff was introduced based on the recommendation of a Tariff Review Committee which had been given a 2-year period to put forward proposals to make the tariff compatible with modern trading conditions, industrial development requirements, and administrative facility. Tariff rates were set consistent with the committee's terms of reference which required, inter alia, an assessment to be made of rates necessary to accord domestic industry a reasonable level of protection against competing imports disregarding the existence of other forms of protection.

The tariff reduced the number of individual tariff items from approximately 4700 to some 2500 and also provided for the collection of statistics on a more detailed basis.

The 1978 review also identified a number of industries where further consideration was necessary and these formed the basis of an industry study programme. These included textiles and apparel, plastics and wine. Changes were made to the tariff as a result of these studies.

The tariff was reprinted with effect from 1 January 1983 in order to implement the tariff phasing required under the Australia - New Zealand Closer Economic Relations Trade Agreement. Another reprint with effect from 1 July 1986 was required to implement tariff changes announced by the Government in its Industry Assistance Reform economic package and amendments to the Generalised System of Preferences.

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.

Objectives of the tariff. The objectives of the Customs Tariff can be summarised as:

  1. The development of New Zealand industries.

  2. The implementation of New Zealand's tariff commitments in multilateral and bilateral trade agreements.

  3. Harmonisation with New Zealand's external political objectives including the provision of assistance to developing countries.

  4. The collection of revenue.

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 (in some instances) from 1 or more of the imported partly-manufactured materials which are enumerated in the regulations.

  3. Goods “wholly obtained”. (This provision applies only to South Pacific Forum Island countries and Developing Country Preferences and is instead of provisions (a) and (b).)

  4. 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.

Excise. Excise duties are levied on alcohol used in manufacturers' warehouses licensed under the Customs Act 1966, locally produced beer, potable spirits, tobacco, and cigarette papers. These are the traditional “revenue” goods of New Zealand for which the Customs Department has responsibility.

In addition to the responsibility for the collection of excise duty, the department also has to ensure the revenue is safeguarded on alcohol distilled in New Zealand for use as fuel, as a fuel extender, or for industrial purposes.

Table 24.3. CUSTOMS AND EXCISE DUTIES

Year Ended 31 MarchCustoms and Excise Duties (Including Foreign Fishing Vessel Tax But Excluding Beer Duty)Sales Tax (Including Travel Tax and Departure Tax)Beer DutyMotor Spirits DutyOther ReceiptsTotal
 $(thousand)
1981349,320791,41164,283284,0587,3381,496,410
1982475,0911,106,91774,338295,3908,8521,960,588
1983511,8441,237,035149,138331,93612,8582,242,811
1984606,2911,339,505199,264375,04617,7722,537,878
1985794,5961,590,445208,976393,27624,3923,011,685

Motor spirits duty paid into the National Roads Fund has been excluded from Customs duties. Customs revenue as a proportion of taxation is discussed in Chapter 27, Public sector finance.

24.2 Trade with other countries

Britain's entry into the European Community in 1973 gave added impetus to New Zealand's efforts to diversify its market for agricultural products. The enlarged Community, despite its restrictions on imports of agricultural products, remains New Zealand's largest single trading partner, accounting for 19 percent of New Zealand's exports and 20 percent of New Zealand's imports during the year ended June 1985.

New Zealand's principal exports to the Community are wool, leather, hides and skins, iamb and butter. Special terms of access to the Community market have been negotiated for the latter 2 products. When the Community introduced a common marketing regime for sheepmeats in 1980, New Zealand entered into a voluntary restraint agreement whereby New Zealand has undertaken to limit exports of sheepmeat to the Community to 245 500 tonnes annually in return for a reduction in the EC import tariff. The special arrangement for butter dates from Britian's accession to the Community and represents its acknowledgment of New Zealand's dependence on access to the British market for substantial quantities of butter.

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. Beef and veal exports can be subject to quotas under the terms of the Meat Import Act of 1979, and during 1982 and 1983 import restrictions were imposed under this law. No restrictions were imposed under the Meat Import Act in 1984 or 1985. Dairy products (except casein) are subject to fixed quotas. Dairy products exported to Canada are also subject to quantitative restrictions and provision exists for quotas on beef imports.

New Zealand and Japan have continued to develop closer economic and trade relations, with Japan becoming New Zealand's largest overall trading partner for the year ended June 1985. During this period overall bilateral trade has continued to increase in value by 30 percent. Close contact has been maintained with regular consultations between the 2 Governments at ministerial and official level. Continued efforts have been made to improve access for New Zealand agricultural exports, particularly dairy products, beef, leather, selected fruits, squid, and radiata pine.

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. Australia and New Zealand concluded a trade and economic co-operation agreement SPARTECA (South Pacific Regional Trade and Economic Co-operation Agreement) with the Forum Island countries in 1980.

At the same time our diplomatic and trading links with China, Korea, and the ASEAN countries, have been extended and a significant volume of trade has developed.

Australia has been New Zealand's most important export market in recent years. Between 1966 and 1982 trade between the 2 countries was governed by the New Zealand - Australia Free Trade Agreement (NAFTA). This was replaced from 1 January 1983 by a more broadly based trading arrangement ANZCERTA (Australia and New Zealand Closer Economic Relations Trade Agreement), establishing a closer economic relationship between the 2 countries that will ultimately result in the removal of all restrictions on trans-Tasman trade, by 1995 at the latest.

New Zealand's trade with the U.S.S.R. has grown substantially in recent years. Our exports are dominated by dairy products, wool, sheepmeats and animal products, while imports from the U.S.S.R. and other Eastern European Socialist countries include rail, marine and motor vehicles, a range of manufactured goods, and fertilisers.

Trade with Middle East countries has expanded despite the decrease in New Zealand exports to Iraq, and decreasing revenues of the oil exporting states. The main trade commodities are the traditional ones for each country—meat, dairy products and wool from New Zealand, and petroleum products from the Middle East. Iran remains particularly important as New Zealand's second market for lamb, and New Zealand's fifth biggest export market overall.

Table 24.4. DESTINATION AND ORIGIN OF EXTERNAL TRADE

December YearBritainAustraliaJapanUnited StatesOther Countries
 Exports percent
1920745..165
1930803..512
1940883..45
1950663..1021
1960534..1330
June
Year
1970368101630
19752212121242
19801412131447
19821415131444
19831312141554
19841014161347
1985915151447
 Imports percent
19204817..1817
1930478..1827
19404716..1225
19506012..721
19604318..1029
June
Year
1970302181328
19751920141334
19801519131439
1982920171637
1983920171737
1984920211535
1985817181542

Trade relations

Australia. Between 1966 and 1982 the New Zealand - Australia Free Trade Agreement (NAFTA) governed trans-Tasman trade. Under NAFTA there was a very substantial increase in 2-way trade particularly in manufactured goods. Between 1964-65 and 1981-82 New Zealand exports to Australia increased from NZ$34 million to NZ$1,029 million, while imports from Australia rose from NZ$128 million to NZ$1,365 million.

The central element of NAFTA was Schedule A which provided for the elimination of duties on goods included in the schedule. The agreement also contained a number of other arrangements which promoted reciprocal trade.

In spite of NAFTA's success in fostering a rapid expansion of trans-Tasman trade, by the late 1970s both New Zealand and Australia felt that NAFTA no longer provided the most appropriate framework for promoting trade between the 2 countries. It did not provide any automatic mechanism for improving access conditions by the removal of quantitative restrictions, nor did it guarantee that existing conditions of access would be maintained for those products not covered by NAFTA arrangements.

Closer Economic Relationship—Following negotiations during 1980-82 the CER Heads of Agreement was signed on 14 December 1982, and the agreement came into effect on 1 January 1983. The formal trade agreement, the Australia - New Zealand Closer Economic Relations Trade Agreement (ANZ- CERTA), was signed on 28 March 1983. It replaces the 1933 Trade Agreement between Australia and New Zealand, the 1965 New Zealand - Australia Free Trade Agreement (NAFTA), and the 1977 Agreement on Tariff and Tariff Preferences.

The impetus behind the agreement lay in the belief that such an arrangement would bring economic and social benefits to both countries, and expand economic and trading links with other countries, particularly those of the South Pacific and South East Asia. While the NAFTA had lead to significant growth in bilateral trade it was considered desirable that a new arrangement be entered into, based on eventual free trade of ail goods which would better service the interests of Australia and New Zealand in the changing international economic environment.

In general, the agreement provides for the phased removal of duty rates by 1 January 1988 and the progressive liberalisation of all remaining quantitative restrictions on trans-Tasman trade by 1995. Factors creating inequality of trading opportunity are to be equalised, and to that end, all performance- based export incentives are to be removed by 1987. The agreement applies to all goods from 1 January 1983 with the exception of a limited number of product groupings such as plastics and wine, for which a modified programme for liberalisation will apply. Other products such as rubber, apparel, certain iron or steel products and motor vehicles and components have been deferred temporarily pending the completion of industry reviews and agreement between the 2 countries on how these goods can best be brought into the agreement.

Apart from provisions for the elimination of barriers to trade the agreement includes undertakings and detailed procedures in respect of such matters as dumping and countervailing action, intermediate goods issues, export incentives and safeguard measures to ensure that trade between Australia and New Zealand develops under conditions of fair competition.

New Zealand's exports to Australia for the year ended June 1985 were 42.2 percent up on the 1984 figure, compared with an increase in New Zealand exports world-wide of 31.2 percent. New Zealand imports from Australia for the year ended June 1985 were 27.5 percent up on the 1984 figure. Total imports from all sources increased by 38.4 percent over the same period.

Table 24.5. TRANS-TASMAN TRADE

June YearNew Zealand Imports from Australia*New Zealand Exports to AustraliaVisible Balance of Trade with AustraliaRatio of Imbalance in Australia's Favour

* Value for duty (v.f.d.)

†Includes re-exports (fob.)

 NZ$(million)
19811,043.6814.7-228.91:1.28
19821,367.41,025.2-342.21:1.33
19831,345.1949.0-396.11:1.42
19841,654.3x1,291.4x-362.9x1:1.28x
19852,108.91,835.7-273.21:1.14

Japan. Exports to Japan have increased from $32.3 million in .1964 to $1,630 million in the year ended June 1985, making Japan New Zealand's second largest export market for this period. Major exports were aluminium (27.3 percent), dairy products (14.4 percent), forestry products (12.7 percent),

wool (12.1 percent), fish (9.3 percent), meat (8.2 percent), fruit and vegetables (6.2 percent), iron ore (2.5 percent), and hides and skins (1.3 percent). Japanese imports of beef, butter, skim milk powder, processed cheese, finished leather, and some fish, fresh and preserved fruit, fruit and vegetables are subject to global import quotas.

North America. The United States was New Zealand's third largest export market in the 1984-85 trade year, having taken exports worth $1,088.9 million. It is our major market for beef and veal, which in 1984-85 accounted for some 40 percent by value of total exports to the United States. However, this trade has been circumscribed since 1964 by the imposition of quantitative restrictions. A new Meat Import Act was passed in 1979 which sets an annual limit on imports using a countercyclical formula which increases the level of permissible imports when United States domestic production is low and vice versa. No restrictions were imposed under the Meat Import Act in 1985. Other main exports to the United States are casein (the United States is our largest market for casein), fish, wool, cheese, vegetables and fruit, hides and skins, lambs and a growing range of manufactured items. Since the 1950s, an array of import quota controls has been applied to dairy products, especially butter, cheese, and milk powder. These controls have severely limited New Zealand's ability to expand its sales of dairy products to the United States, although with the loss of the traditional British market it is now New Zealand's largest cheese market in value and (after Japan) second largest market in volume terms.

Canada is New Zealand's eleventh largest export market, having taken exports of $201.8 million in 1984-85. Beef and veal are again our main exports to Canada, followed by lamb and mutton, fruit and vegetables, wool, sausage casings, cheese, casein, metal manufactures, and textile yarns. The Canadian Meat Import Act of 1981 permits the Canadian Government to restrict beef imports. Quotas were imposed for the first time in 1985 to restrain EC exports with New Zealand exports being subject to a quota of 63.4 million pounds, which did not limit New Zealand sendings.

On 25 September 1981 a Trade and Economic Co-operation Agreement between the Governments of New Zealand and Canada was signed. This agreement came into force on 1 January 1982 and replaced the 1932 Trade Agreement and the 1970 amending Protocol as well as the 1973 Interim Preferences Agreement. It is designed to provide a framework for the development of a broader economic relationship between the 2 countries based on the present international trading environment. The agreement provides for the encouragement of bilateral trade and the facilitation of increased economic and technological co-operation.

The agreement provides that neither country should apply against goods originating in the other country, rates of duty higher than those in force on 1 January 1982. In cases where it is proposed to increase a rate of duty or reduce a margin of preference, provision has been made for consultation to take place. Consultations must also take place in an effort to reach a satisfactory solution where it is found that goods are being imported under conditions which constitute dumping.

The agreement also sets out new rules of origin, provision to consult on non-tariff measures, e.g., import licensing, and provisions in respect of agricultural, horticultural, and forestry products.

United Kingdom. While the United Kingdom has remained an important market for New Zealand's exports, it is no longer our predominant trading partner for either exports or imports. 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 2 countries.

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 European Community. Thus in 1950 the United Kingdom took 66 percent of New Zealand's exports, but by the year ended June 1985 its share had fallen to 9 percent. The United Kingdom is still New Zealand's largest market for butter, taking 43 percent by volume in the 1984-85 season. Although traditionally also our largest market for lamb, the United Kingdom has been surpassed for the second year in succession by Iran which took 32.7 percent by volume in 1984—85 compared with the United Kingdom's 32.6 percent.

Entry into the EC, involving the 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 EC policies affecting the import of goods from those countries. New Zealand phased out by 1 July 1977 the tariff preferences previously given to imports from Britain, with the exception of certain automotive products.

South Pacific. 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, Kiribati, Niue, Solomon Islands, Tuvalu, and Vanuatu have become full members. The signing of the South Pacific Regional Trade and Economic Co-operation Agreement (SPARTECA) by the Forum Island countries, which came into force on 1 January 1981, marked a major step towards economic development of the region. This agreement provides that Australia and New Zealand grant non-reciprocal duty-free and unrestricted access for most of the products exported by Forum Island countries. The agreement also includes provision for general economic, commercial and technical co-operation, safeguard provisions relating to dumped and subsidised goods and provides for special treatment and assistance to be extended to the smaller Island countries. It also recognises that the full potential of the access provisions can be achieved only through closer economic co-operation and development assistance aimed at enhancing the export capabilities of the Island countries. New Zealand officials have visited most of the Islands to publicise the benefits of the agreement, and to discuss with individual businessmen opportunities for the export of their products to the New Zealand market.

Exports to the South Pacific region increased from $181.8 million in 1980-81 to $405.5 million in 1984-85. The market offers wide scope for exporters, particularly of manufactured products. For 1984-85 the South Pacific region was New Zealand's fourth largest market for manufactured exports, accounting for $221 million.

Pacific Forum Islands. At the eleventh South Pacific Forum held in Kiribati in July 1980 the South Pacific Regional Trade and Economic Co-operation Agreement (SPARTECA) came into existence. Under this agreement New Zealand and Australia will provide on a non-reciprocal basis duty-free and unrestricted access into their markets for most of the products exported by the Forum Island countries.

The agreement took effect on 1 January 1981 and except for items subject to revenue duties and a few items of particular sensitivity to New Zealand the revised Customs Tariff introduced from that date reflected the duty-free access provisions of the agreement.

In New Zealand's case the preferential tariff applies only to goods of Pacific Island origin. These are either wholly obtained in the preferential area or partly manufactured in the area, where the Pacific Island and/or New Zealand content exceeds a nominated level. Except in special circumstances this is related to the development needs of smaller Island countries, and is set at 50 percent of factory cost.

Exports of New Zealand produce to the Pacific Island countries amounted to $388.6 million (f.o.b.) and imports (c.i.f.) from these islands came to $116.7 million in 1984-85. Exports increased by 28.2 percent and imports increased by 20.2 percent over the previous trade year. The 3 major countries New Zealand exported to during 1984—85 were Fiji ($121.4 million), Papua New Guinea ($98.0 million) and French Polynesia ($45.8 million). The top 3 import country suppliers were Nauru ($44.2 million), Fiji ($20.8 million) and Papua New Guinea ($18.0 million).

ASEAN countries. The member countries of the Association of South East Asian Nations (Indonesia, Malaysia, the Philippines, Singapore, Thailand, and since 1 January 1984, Brunei) are an increasingly important market to New Zealand for agricultural, forestry, and manufactured exports, although dairy products still account for over half of total exports to the region. New Zealand's exports to the ASEAN group have increased substantially over the last six years to reach NZ$419.7 million f.o.b. (or 4.9 percent of total exports) in the latest trade year 1983-84. Major imports from ASEAN are petroleum products. New Zealand's trade relations with ASEAN are governed by the ASEAN/New Zealand Joint Trade Study Group (established in 1976) which meets periodically to review trade developments. New Zealand also continues to place a strong emphasis on bilateral relations with each individual country and has a Trade Agreement with each ASEAN member (except Singapore, with which New Zealand has a Scientific, Industrial and Technological Agreement, and Brunei).

China. Trade between New Zealand and China has expanded substantially since normalisation of relations between the 2 countries in 1972. New Zealand exports to China increased from $1.7 million in 1971-72 to $297.3 million in 1984-85 (or over 2.5 percent of total exports). In recent years China has become a major market for wool. In 1984-85 China was the largest buyer of New Zealand wool by value, with sales amounting to $195 million. Other significant export items in recent years include iron and steel, tallow, aluminium, wood pulp and leather and dairy products. China's exports to New Zealand have increased at. a slower rate to reach $79 million in 1984-85.

Agriculture development is an important part of China's modernisation programme and in recent years New Zealand has participated in some livestock and pasture development projects in this sector. Prospects for co-operative manufacturing ventures in light industry have already been realised in some cases and further growth and diversification in the sale of goods and services is expected. A Joint Trade Commission meets annually to review developments in bilateral trade.

Korea. Exports to the Republic of Korea experienced a 10 percent growth between 1983-84 and 1984-85 from $190.9 million to $209.1 million. As in the previous year the 3 principal export earners were wool ($39.5 million), aluminium ($31.9 million) and tallow ($26.3 million). In the last trading year the single largest increase by value was that of lamb exports from $720,034 in 1983-84 to $10.1 million in 1984-85. By value other leading exports were hides and skins, mutton and hogget, pulp, logs, timber products, fish, and casein.

Korea, after Japan and China, is New Zealand's third largest export market in Asia.

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.

Latin America. Peru, Mexico, and Venezuela have become useful markets for New Zealand dairy products, especially for milk powder and anhydrous milk fat (AMF). Total New Zealand exports (including dairy products) to these countries in 1984-85 were $32 million to Peru, $68 million to Mexico, and $49 million to Venezuela. A New Zealand/Mexico Scientific and Technological Agreement (STC) was signed in Mexico in August 1983.

Eastern Europe. New Zealand's exports to Eastern Europe, including the Soviet Union, continued to decrease from the 1982-83 peak figure of $386 million to $209 million in 1984-85. The Soviet Union is our sixteenth largest export market and the most important market in the region, accounting for $146 million.

New Zealand's exports to the region reflect the Eastern European need to meet occasional shortfalls in domestic production of food (dairy products and mutton), and the requirement for raw materials for manufacturing (wool, tallow, and hides). Emphasis is being placed on diversification from the narrow range of traditional exports, and newer products exported to Eastern Europe include breeding sheep, seeds, milking equipment, animal identification ear tags, and pharmaceutical raw materials.

New Zealand imports from Eastern Europe dropped from $12 million to $6 million in 1982-83. Goods imported were chemicals, machinery, textiles, glassware, fertilisers, rail and motor vehicles.

Middle East. Exports to this region rose from $3 million in 1970-71 to a record $748 million in 1984- 85. Iran, which took $445 million of New Zealand goods, was the most valuable market; followed by Saudi Arabia ($124 million); and Iraq ($51 million).

A move to domestic fuel production, plus an increase in imports from other sources, caused a further drop in New Zealand's imports of Middle East oil. As a result, the figures for total imports from the region decreased from $459 million in 1981-82 to $268 million in 1984-85 from Saudi Arabia. In the 1984-85 June year, 136 000 metric tonnes of lamb were sold to Iran.

Developing countries. New Zealand 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, and special developing country rates were incorporated in the Customs Tariff as from 1 January 1972.

When New Zealand introduced a revised Generalised System of Preference (GSP) on 1 July 1976 the new scheme was based on the negative-list concept and significantly increased the GSP coverage granted previously. Every effort was made to keep the list of exceptions to the minimum to give the greatest possible coverage to the scheme. Based on figures for the year ended 30 June 1984, total value of imports from GSP beneficiaries was $1,533 million, compared with $1,550 million for the year ended 30 June 1983.

The revised GSP was based on an intention to maintain, in terms of GSP criteria, specified margins of preference for developing countries up to a level of 20 percent. Since 17 December 1976 special provisions have been made for the duty-free importation of specified handicraft products.

The emergence of some developing countries as newly industrialised or oil rich has necessitated a review of their entitlement to preferential tariff treatment into New Zealand. This review will also take into account the status of small island states and land-locked countries which are known internationally as lesser developing nations.

Developing Countries Liaison Unit. The unit is located in the Trade Policy Division of the Department of Trade and Industry, and was set up in 1977 to help developing country exporters find markets for their products in New Zealand. The assistance is available to 161 countries which are classified as developing countries in the New Zealand Customs Tariff.

The unit provides information on the New Zealand market for a wide range of products and puts developing country exporters in touch with potential New Zealand buyers. In addition, it assists visiting businessmen and trade missions from developing countries, and helps organise trade exhibitions in New Zealand.

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); the Federal Republic of Germany (1959, amended 1977); Japan (1958, amended 1962); the Union of Soviet Socialist Republics (1963, protocol 1973); the Polish People's Republic (1965); Republic of Korea (1967, amended 1976); People's Republic of Bulgaria (1968); Republic of Philippines (1968, amended 1976); Hungarian People's Republic (1970, revised and superseded 1978); The People's Republic of China (1973); Iran (1974); Socialist Federal Republic of Yugoslavia (1975); Arab Republic of Egypt (1977); German Democratic Republic (1978); Indonesia (1978); the Socialist Republic of Romania (1979); and the Republic of Iraq (1982).

Table 24.6. TRADE BY COUNTRIES, YEAR ENDED JUNE 1985

CountryExports f.o.b.Imports v.f.d.Imports c.i.f.
New Zealand ProduceTotalBy Country of OriginBy Country of Origin

*ESCAP member countries.

†ASEAN member countries.

O.E.C.D. Countries$(000)
    E.E.C. Countries
        Belgium149,697149,88377,43389,164
        Denmark16,36216,62347,66752,276
        Faeroe Islands---
        France213,794214,183159,600178,075
        Germany, Federal Republic of243,364246,301544,123611,388
        Greece66,09966,10812,77314,635
        Greenland--11
        Ireland12,66512,75432,63834,709
        Italy250,790250,971233,973256,275
        Luxembourg553,6454,114
        Monaco--4751
        Netherlands142,936143,459178,130202,045
        United Kingdom1,020,7571,030,104989,7141,087,780
        Vatican City State3335
        Destination unknown—E.E.C.52,01352,013--
                  Total, E.E.C. Countries2,168,4842,182,4052,279,7472,530,516
  Other O.E.C.D. Countries
        Australia*1,773,9001,843,0912,135,0242,337,258
        Austria10,79610,89727,17329,965
        Canada200,934201,874308,181347,653
        Finland7,2527,33730,23834,698
        Iceland8128123755
        Japan*1,658,8611,661,4912,287,3032,496,405
        Liechtenstein-28891
        New Zealand (Re-imports)*......42,51844,038
        Norway4,9605,00921,48524,476
        Portugal14,75414,91511,18312,543
        Spain61,43261,56339,31645,316
        Sweden12,52512,905118,451130,282
        Switzerland19,28820,48294,208101,575
        Turkey8,2078,2071,1951,395
        United States of America1,644,0351,667,8621,886,9272,055,614
                  Total, O.E.C.D. Countries7,586,2407,698,8549,283,07510,191,882
China
        People's Republic of China*297,269298,21378,91789,636
        Province of Taiwan168,215168,884166,622183,012
                  Total465,484467,097245,539272,648
Asia
        Afghanistan*10114751
        Bangladesh*-4,1414,1499,74711,721
        Bhutan*--11
        Brunei*91995711
        Burma*2362361,1441,370
        East Timor33--
        Hong Kong*181,328182,882168,597181,516
        India*47,98648,03349,48855,930
        Indonesia*98,43998,571371,033386,101
        Kampuchea, Democratic*--2324
        Korea, Democratic People's Republic of88--
        Korea, Republic of*213,641213,70883,62591,891
        Lao People's Democratic Republic*--685734
        Macau2323678726
        Malaysia*162,361162,84962,79569,203
        Maldives*1414--
        Mongolia*----
        Nepal*5665686985
        Pakistan*25,73425,7419,19110,148
        Philippines*54,65754,70440,77849,094
        Singapore*141,473145,797358,678386,268
        Sri Lanka*16,91316,92511,00912,591
        Thailand*46,89347,01423,63026,293
        Viet Nam*4,2934,296177209
                  Total999,6381,006,4901,191,3971,283,957
Oceania
        Cook Islands*20,86824,7824,8886,234
        Fiji*121,364137,08118,81420,811
        French Polynesia45,83646,903370594
        Kiribati*1,8802,1721616
        Nauru*2,3262,70337,64844,201
        New Caledonia18,63619,3534461
        Niue*2,7572,934192233
        Papua New Guinea*97,975103,22217,01317,986
        Pitcairn92107--
        Samoa*26,95329,01112,34914,461
        Solomon Islands*12,16213,0471,1411,365
        Tokelau4445--
        Tonga*26,31527,7898,75810,662
        Tuvalu*1,3691,41077
        Vanuatu*9,59911,024108117
        Wallis and Futuna Islands422423--
                  Total388,598422,005101,347116,746
Latin America and Caribbean Countries
        Antigua and Barbuda376376--
        Argentina7519496,0266,683
        Bahamas2,5792,5925,6735,747
        Barbados10,43610,436107127
        Belize881881....
        Bermuda6,5296,52923
        Bolivia--1414
        Brazil2,0782,35161,05769,230
        British Virgin Islands5252--
        Cayman Islands169169240250
        Chile14,65117,5231,3381,821
        Colombia3,6373,637613661
        Costa Rica7071639686
        Cuba19,79819,7981217
        Dominica104104--
        Dominican Republic14,21414,2141819
        Ecuador9,2459,24514,16828,312
        El Salvador8,2218,22191102
        Falkland Islands7979....
        French Guiana106106--
        Grenada772772--
        Guadeloupe3,0303,031--
        Guatemala1,9671,967206221
        Guyana--388650
        Haiti2,1502,1503538
        Honduras926926301395
        Jamaica4,7054,7076,2086,661
        Martinique1,2751,276--
        Mexico68,15968,16918,39221,639
        Montserrat----
        Netherlands Antilles1,4801,4805,6735,984
        Nicaragua2,6192,61933
        Panama10,75210,7562324
        Paraguay11--
        Peru32,59632,723335380
        St. Kitts-Nevis4444--
        St. Lucia139139--
        St, Vincent and the Grenadines22--
        Suriname9934
        Trinidad and Tobago22,13422,137258291
        Uruguay1,7461,7561315
        Venezuela31,88531,891718923
                  Total280,368283,888122,553150,900
Middle East
        Bahrain12,86412,893--
        Egypt14,81614,8776779
        Iran (Islamic Republic of)*445,038445,038200221
        Iraq51,37451,4178592
        Israel7788539,95010,863
    Jordan21,54521,5517,48110,630
        Kuwait23,83023,836367427
        Lebanon82082034
        Libyan Arab Republic1,8931,893--
        Oman18,44218,558--
        Qatar3,3233,323758886
        Saudi Arabia122,965124,210269,040302,184
        Syrian Arab Republic18,80218,802--
        United Arab Emirates26,43526,50911
        Yemen1,1261,126--
        Yemen, Democratic318318--
                  Total764,368766 021287,952325,387
Eastern Europe
        Albania--67
        Bulgaria961961910
        Czechoslovakia10,18710,1877,1218,105
        German Democratic Republic2,7332,7402,4292,828
        Hungary3,8563,8732,2392,722
        Poland36,05936,0592,9694,147
        Romania11111,3401,585
        Union of Soviet Socialist Republics145,906145,90612,46117,662
        Yugoslavia9,1469,1462,1332,381
                  Total208,859208,88430,70739,448
Africa
        Algeria133,018133,01811
        Angola6060--
        Benin----
        Botswana143143--
        Burundi----
        Cameroon, United Republic of646430'43
        Cape Verde22--
        Central African Republic--69
        Ethiopia1781788286
        Gabon3030--
        Gambia376376--
        Ghana--17,23219,337
        Ivory Coast50501.0441,170
        Kenya1,0651,0752,1752,760
        Lesotho12512511
        Liberia33--
        Madagascar--140151
        Malawi1,6211,6221,5751,681
        Mauritania----
        Mauritius23,39823,398207222
        Morocco8,9118,911312374
    Mozambique816816--
        Namibia2020--
        Niger1,1591,159--
        Nigeria2,9662,969101112
        Reunion343343--
        Rwanda----
        Sao Tome and Principe----
        Senegal23--
        Seychelles7070....
        Somalia-35....
        South Africa29,35529,60248,22753,552
        Sudan1,9302,283103115
        Swaziland33433422
        Tanzania, United Republic of29292,5363,468
        Togo....99
        Tunisia1,3601,36033
        Uganda--1,1691,269
        Western Sahara----
        Zaire155156253257
        Zambia8687919990
        Zimbabwe46484,8725,287
                  Total207,717208,37180,99990,899
Other countries
        Antarctic Foreign----
        Antarctic Stations (British)..---
        Antarctic Stations (U.S.A.)..5--
        Cyprus2,9032,90498124
        Gibraltar8686--
        Malta3,9833,983570601
        St Pierre and Miquelon----
        Destination Unknown—Non E.E.C.1085--
                  Total6,9837,062668725
                  Total, AH Countries10,908,25411,068,67311,344.23712,472,592
Bunkering ships or aircraft87,083201,187......
Passengers' duty free goods8,99030,670......
Ships' stores7,58015,272......
                  Total, Merchandise Trade11,011,90711,315,80211,344,23712,472,592

24.3 Import regulations and trade in commodities

Import licensing

Import licensing for private imports was introduced in December 1938. and has continued in varying degrees of intensity since that data. The objectives of import licensing have been diverse, but have included ensuring a stable market for industry, utilising domestic resources to the fullest extent, encouraging investment and productivity, and helping to protect the balance of payments.

In recent years, however, moves have been made towards replacing import licensing with a tariff- based regime of protection. These moves have resulted in additional licence being made available through Import Licence Tendering since 1981.

The tendering of 15 percent of basic licences, introduced in the 1982-83 licensing year, was continued in the 1985-86 licensing year, with $12.1 million of licence being tendered. Additional licence has been tendered under industry plans and as a result of the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA), which came into effect on 1 January 1983.

More recently the global import access was further increased with a minimum of 10 percent by value of the estimated domestic production less exports (for goods not covered by industry development plans) being put up for tender under the global tender scheme. In the first global tender round (Round 19) $438 million of licence was tendered in November 1984. An extra 5 percent increase in access ($720 million) was made available in the second global tender round (Round 30) in October 1985. From 1 July 1986 all items with average successful premiums of 7.5 percent or less in the 2 rounds of global tendering will move to licence on demand. In March 1986 items not going to licence on demand on 1 July 1986 will be reviewed to determine how they might go to licence on demand in the future. As a minimum, a further 5 percent increase in access will be tendered and licence made available from 1 January 1987. Licence on demand will operate for 1 year and then the goods will become exempt.

Administration. Before 1975 the administration of import licensing policy was the joint responsibility of the Customs Department and the Department of Trade and Industry. In 1973, the Department of Trade and Industry assumed sole responsibility for licensing administration. The Customs Department, however, retains an important role, particularly in the receipt of applications, the issue of licences, and the administration of certain policies delegated to it.

Import provisions are published in an Import Licensing Schedule which contains the policies followed by the Government for individual products, and a number of general licensing policies. The scheme is a permanent document and is maintained through a replacement page amendment service.

International commodity agreements

Sugar. New Zealand's annual requirement for sugar is approximately 160 000 tonnes. From 1973 the bulk of this was imported from Australia and Fiji under long-term agreements. Following the expiry of these agreements in 1983-84, the Government, under the broad terms of its policy of reducing the level of government intervention in industry, instituted a major review of New Zealand's sugar importing policy. The outcome of this review was a decision to progressively remove controls on the importation and pricing of sugar. These measures will begin to take effect from 31 August 1986.

To allow Fiji time to adjust to supplying the New Zealand market at prevailing world market prices, which are currently depressed, New Zealand has entered into a short-term agreement to compensate Fiji for any shortfall in earnings for a quantity of raw sugar exported to New Zealand. This agreement runs for 3 years.

New Zealand has been a signatory to the International Sugar Agreements in 1958, 1968 and 1978. These agreements have, in the past, incorporated mechanisms that regulate the supply and price of sugar on world markets. In 1984, negotiations for a new sugar agreement failed, and the present agreement contains no economic provisions. New Zealand has renewed its membership of the agreement so that it can continue to monitor the international sugar market and to act as an advocate for equitable operation of the market.

Coffee. New Zealand is a party to the International Coffee Agreement 1983. New Zealand was also a party to the previous 1968 and 1976 International Coffee Agreements.

Under the 1976 agreement provisions had been incorporated for adjusting basic quotas, regulating imports whenever quotas were in effect, and recording international coffee trade. As from 1 November 1980 the International Coffee Organisation has instructed importing countries to adopt the economic provisions of the International Coffee Agreement. As importers of coffee, therefore, we are required to limit our imports to a level within the global quota and to limit our annual imports from non-members to quantities established under the provisions of the agreement.

Trade in commodities

The pattern of New Zealand's export commodities is changing. Whereas, in the year ended June 1975 meat, dairy products, and wool earned 71 percent of New Zealand's export income (Reserve Bank figures) in the year ended June 1985 they earned 56 percent of the total export income. Over this 10-year period earnings from exports of manufactured goods, including forest products, rose from 16 percent to 28 percent of total export income.

Table 24.7. NEW ZEALAND'S MAIN EXPORTS

Year Ended JuneMeat and Meat PreparationsDairy ProductsHides. Skins, and PeltsWool
Milk and CreamButterCheeseCasein
 f.o.b. value $(million)
19811,520.9315.2398.0137.7117.2129.9892.6
19821,564.1408.5556.4181.5142.0152.9918.8
19831,870.7436.3657.7193.5199.0185.21,017.1
19841,722.4415.6562.4235.9198.5200.01,113.3
19852,228.1530.1636.5256.8273.8356.31,475.4
Year Ended JuneFish*Sausage CasingsTallowFruit and VegetablesPulp. Paper. and Paper- boardTotalRe-exportsTotal Exports

* Chilled or frozen. Includes crayfish.

† Including commodities not listed.

 f.o.b. value $(million)
1981132.646.847.7170.0312.95,830.0235.26,065.3
1982153.048.653.2215.1346.76,527.8206.06,733.8
1983194.850.558.2261.6305.77,502.9432.57,935.4
1984244.255.267.7405.3396.48,366.1257.78,623.8
1985366.878.5119.0492.5455.511,011.9303.911,315.8

Table 24.8. PRINCIPAL COMMODITIES EXPORTED

Commodity (New Zealand Produce)Unit of QuantityYear Ended June 1985
Quantity$(000)
RacehorsesNo.2,49066,258
Meat, fresh, chilled or frozen—
    Beef—
        Bone intonne9,07352,159
        Bonelesstonne207,770869,183
    Vealtonne5,55030,627
    Lamb—
        Carcassestonne (000)314,215725,388
        Boneless or cutstonne97,855293,838
    Muttontonne83,882131,254
    Other meat and edible offalstonne50,895104,420
Milk and cream—
    Condensed and evaporatedtonne1,0874,973
    Skimmed milk powdertonne168,247245,431
    Other driedtonne127,412260,131
    Other kindslitre (000)10,53815,329
Buttertonne216,943636,516
Cheesetonne85,796256,786
Fish, fresh, chilled or frozentonne87,771287,623
Crayfish, fresh and simply preservedtonne2,16479,168
Barley, unmilledtonne298,42657,855
Maize, unmilledtonne23,8776,713
Fruit and vegetables—
    Apples, fresh, whole fruittonne146,728108,138
    Kiwifruit, freshtonne62,210171,764
    Potatoes, freshtonne14,5864,418
    Peas—
        Dry, including splittonne43,27725,678
        For sowingtonne6,2234,014
        Frozentonne19,90622,040
    Onions, freshtonne51,16717,676
    Vegetables, frozen excluding peastonne13,15619,080
Chocolate and preparationstonne9,94029,132
Feeding stuff for animals—
    Lucerne meal and pelletstonne12442
    Meal of meat, fish, etc.tonne95,39140,458
    Poultry mash and pelletstonne4,1261,688
    Other kindstonne54,39460,343
Margarine and shorteningtonne12,04533,285
Hides, skins and furskins, raw—
    Cattle hides(000)75352,046
    Calf and kip skins(000)82316,967
    Sheep and lamb skins in fleece(000)1,8918,567
    Lamb pelts(000)33,964190,101
    Sheep pelts(000)8,88076,733
    Possum skins(000)1,3719,231
Sawlogs and veneer logs, conifercu. metre360,25837,215
Timber, sawn, sliced or peeled—
    Douglas fircu. metre25,9477,177
    Pinus radiatacu. metre246,24052,837
Wood pulp—
    Mechanicaltonne258,78092,498
    Sulphate, not dissolving gradestonne170,344110,247
Wool—
    Greasytonne133,252551,945
    Slipetonne20,58085,753
    Scouredtonne163,655837,726
Iron ore and concentratestonne (000)2,22741,967
Sausage casings, naturalhank (000)9,24378,515
Clover and grass seedstonne7,32816,216
Petroleum products—
    Distillate fuellitre (000)3025
    Residual fuel oillitre (000)35,79912,132
Tallow, inedibletonne130,905118,619
Caseintonne58,466216,182
Caseinatestonne12,38549,238
Newsprinttonne187,013147,546
Kraft paper and kraft cardboardtonne68,91357,069
Yarn of wool or hairtonne7,43192,274
Carpets and carpeting, excluding floor rugssq m (000)4,686102,714
Iron or steel—
    Bars, rods, angles, etc.tonne56,12224,985
    Universals, plates and sheetstonne41,23148,391
Aluminium, unwroughttonne228,045513,258
Finished structural parts and structures, n.e.s., of metaltonne6,57123,933
Domestic electric refrigerators and freezersno.63,78427,236

Table 24.9. TRADE BY S.I.T.C. SECTIONS AND DIVISIONS

Section and DivisionYear Ended June 1985
Exports of New Zealand ProduceImports v.f.d.
 $(000)
0 Food and Live Animals Chiefly for Food
  00 Live animals chiefly for food80,17978,289
  01 Meat and meat preparations2,228,0747,227
  02 Dairy products and birds' eggs1,426,4494,056
  03 Fish, crustaceans, and molluscs, and preparations thereof513,71342,988
  04 Cereals and cereal preparations136,11331,405
  05 Vegetables and fruit492,477137,146
  06 Sugar, sugar preparations, and honey22,06477,116
  07 Coffee, tea, cocoa, spices, and manufactures thereof30,979118,036
  08 Feeding stuff for animals (not including unmilled cereals)102,5324,046
  09 Miscellaneous edible products and preparations57,19611,798
             Total, section 05,089,776512,108
1 Beverages and Tobacco
  11 Beverages21,84875,771
  12 Tobacco and tobacco manufactures4,65232,775
             Total, section 126,501108,546
2 Crude Materials, Inedible, Except Fuels
  21 Hides, skins, and furskins, raw356,3099,426
  22 Oil seeds and oleaginous fruit38812,412
  23 Crude rubber (including synthetic and reclaimed)1,50445,958
  24 Cork and wood162,69423,845
  25 Pulp and waste paper205,0159,251
  26 Textile fibres (other than wool tops) and their wastes1,481,04735,738
  27 Crude fertilisers and crude minerals other than coal, etc.8,857153,394
  28 Metalliferous ores and metal scrap55,615190,378
  29 Crude animal and vegetable materials, n.e.s.142,06133,953
             Total, section 22,413,489514,355
3 Mineral Fuels, Lubricants, and Related Materials
  32 Coal coke, and briquettes42,2701,259
  33 Petroleum, petroleum products, and related materials57,6751,539,198
  34 Gas, natural and manufactured37267
             Total, section 3100,3171,540,523
4 Animal and Vegetable Oils, Fats, and Waxes
  41 Animal oils and fats123,8503,994
  42 Fixed vegetable oils and fate2,20558,244
  43 Animal and vegetable oils and fats, processed, and waxes of animal or vegetable origin2,4497,239
             Total, section 4128,50369,477
5 Chemicals and Related Products n.e.s
  51 Organic chemicals98,990224,676
  52 Inorganic chemicals4,006130,325
  53 Dyeing, tanning, and colouring materials12,21871,999
  54 Medicinal and pharmaceutical products51,446218,656
  55 Essential oils and perfumes, etc.45,12254,242
  56 Fertilisers, manufactured31,82283,401
  57 Explosives and pryotechnic products4264,994
  58 Artificial resins and plastic materials, and cellulose esters and ethers35,668384,095
  59 Chemical materials and products, n.e.s.313,251164,759
             Total, section 5592,9491,337,148
6 Manufactured Goods Classified Chiefly by Material
  61 Leather, leather manufactures, n.e.s., and dressed furskins139,66718,955
  62 Rubber manufactures, n.e.s.11,842101,529
  63 Cork and wood manufactures (excluding furniture)121,32519,138
  64 Paper, paperboard, and articles of paper pulp, of paper, or of paperboard283,040204,501
  65 Textile yarn, fabrics, made-up articles, n.e.s., and related products256,589695,245
  66 Non-metallic mineral manufactures, n.e.s.53,219147,624
  67 Iron and steel114,067565,208
  68 Non-ferrous metals564,971177,666
  69 Manufactures of metal, n.e.s.177,262250,169
             Total, section 61,721,9822,180,035
7 Machinery and Transport Equipment
  71 Power generating machinery and equipment10,443218,555
  72 Machinery specialised for particular industries78,883546,351
  73 Metalworking machinery8,14772,444
  74 General industrial machinery and equipment, n.e.s., and machine parts, n.e.s.96,192509,930
  75 Office machines and automatic data processing equipment2,095443,330
  76 Telecommunications, sound recording and reproducing apparatus and equipment25,977326,902
  77 Electrical machinery, apparatus and appliances, n.e.s., and electrical parts thereof125,409418,059
  78 Road vehicles (including air-cushion vehicles)37,8261,086,038
  79 Other transport equipment31,069175,166
             Total, section 7416,0413,796,774
8 Miscellaneous Manufactured Articles
  81 Sanitary, plumbing, heating, etc., fixtures and fittings, n.e.s.3,0909,582
  82 Furniture and parts thereof50,78514,696
  83 Travel goods, handbags, and similar containers3,4753,325
  84 Articles of apparel and clothing accessories85,57751,831
  85 Footwear12,04920,914
  87 Professional, scientific, and controlling instruments and apparatus, n.e.s27,365215,829
  88 Photographic apparatus, optical goods, watches and clocks3,715157,114
  89 Miscellaneous manufactured articles, n.e.s.227,310493,771
             Total, section 8413,367967,063
9 Commodities and Transactions Not Classified Elsewhere in the S.I.T.C.
             Total, section 9108,982318,208
             Total New Zealand produce exports11,011,907 
             Re-exports303,895 
             Grand total, merchandise trade11,315,80211,344,237

NOTE: n.e.s. not elsewhere specified.

Table 24.10. PRINCIPAL COMMODITIES IMPORTED

CommodityUnit of QuantityYear Ended June 1985
Quantityv.f.d. $(000)

* AI. litre—alcohol litre.

†Excludes hardboards, softboards, wallpaper, lincrusta, and window transparencies.

Sugar, not refinedtonne171,65670,931
Coffee, rawtonne7,04539,322
Wine of fresh grapeslitre (000)3,90323,307
Spirits, liqueurs, and other spirituous beverages over 40 percent proofa litre (000)*3,67438,754
Tobacco, unmanufacturedtonne3,79031,236
Crude rubber, including synthetic and reclaimedtonne22,83445,958
Natural calcium phosphatetonne (000)92575,025
Sulphur, other than sublimed, precipitatedtonne (000)21048,231
Crude petroleumtonne (000)1,504658,894
Partly refined petroleumtonne (000)18089,270
Motor spirit (in bulk)tonne (000)456261,386
Kerosene and white spirit (in bulk)tonne (000)303177,665
Distillate fuelslitre (000)545,757240,175
Aluminium oxidetonne455,583187,693
Potassium chloride (fertiliser)tonne209,95734,437
Paper and paperboardtonne95,946185,860
Textile yarn and threadtonne16,177144,445
Cotton fabrics, woven, excl. tractorsq m (000)61,609147,522
Woven textile fabrics of synthetic fibres excl. tyrecordsq m (000)37,18472,021
Iron and steel—
    Bars and rodstonne45,18344,151
    Angles, shapes and sectionstonne48,79327,872
    Universals, plates and sheetstonne410,540351,598
    Wiretonne17,67526,114
    Tubes, pipes and fittingstonne40,15372,947
Copper and copper alloys excl. foil, powders and flakestonne20,29372,220
Unwrought zinctonne24,67544,303
Internal combustion engines (not aircraft)no.120,76656,020
Tractorsno.5,74594,739
Electric motorsno,1 375 92036,166
Thermionic, cold cathode, photocathode valves and tubesno. (000)18317,571
Railway vehicles excl. containers and partsno.101,945
Motorcars—assembledno.8,54196,428'
      —unassembledno.99,438544,651
Buses, trucks, vans—assembledno.3,74520,136
      —unassembledno.24,069232,831
Aircraft, excl. parts, balloons, airshipsno.60779,915
Ships and boats excl. those for breaking up (incl. buoys)no.7,2015,392

24.4 External trade price and volume indexes

A revised method of processing the external trade price and volume indexes has been employed by the Department of Statistics since the September 1982 quarter, following the completion of a review of the methods of calculating these indexes. The basic methodology of chain-linked, Fisher Ideal indexes has been retained, but improvements have been effected in timeliness of release and statistical quality of the indexes. The range of available indexes has also been extended.

Major features of the revision—

  1. The valuation of commodity item unit-values on which the import price indexes are based is now cost insurance freight (c.i.f.). Previously the current domestic value (c.d.v.) of individual item unit values was used, with these values being rated up to c.i.f. values. The Export Price Indexes continue to be calculated on a free on board (f.o.b.) valuation basis.

  2. A commodity is regarded as having sufficient importance to be included as an explicit indicator of price or volume movement in the index when it contributes more than some specified share of its classification division value. This share is based on the variability of the commodity unit value and the total value of the division. In order to qualify for inclusion previously, commodities had to have a quarterly value of more than $16,000 or a value in the index base period of more than $20,000.

  3. Commodities for which quantity data are not available and those items unsuitable for pricing are included in the index by imputing price (unit-value) changes from other similar or related commodities. This imputation of price movements for unpriced items is now calculated at Standard International Trade Classification (SITC) group level, rather than at division level as previously.

  4. From the 1983 June year, the annual volume index is calculated by summing the quarterly volume indexes and the annual price index is calculated by summing volume weighted quarterly price indexes. Previously, June year annual indexes were calculated from consolidated annual data, and the quarterly price and volume indexes were aligned to these annual indexes.

  5. A large number of new indexes, at times limited to a single item, are now calculated. A number of these new indexes are classified by the New Zealand Standard Classification of Broad Economic Categories (NZSBEC). Commodities are, in general, allocated to NZSBEC on the basis of their main economic end-use.

  6. The base of the indexes has been changed to the year ended June 1982 (=1000), except for the Terms of Trade Index, which remains on the traditional base of the calendar year 1957 (=100).

Data used in the calculation of the indexes are derived from departmental external trade statistics, which are, in turn, processed from import and export entry forms lodged with the Customs Department. Import and export statistical quantities and values are consolidated on a monthly, quarterly and annual basis.

The indexes cover all commodities classified as merchandise trade. These are goods which add or subtract from the stock of material resources in a country as a result of their movement into or out of the country. Consequently, the term “merchandise” is not confined to goods which are the subject of a commercial transaction, but covers all goods which meet the above criterion.

Calculation method:Index type, weighting and chain-linking. All external trade index series are of the chain-linked Fisher Ideal type. This involves the calculation of two indexes (for both price and volume) for each current period. One (the so-called Laspeyres) uses the values of the previous year's data as weights and the other (the so-called Paasche) uses the values of the current period as weights. The averaging method known as the 'Geometric Mean applied to these two indexes produces the index for the current period on the previous year's base. The indexes are then linked on to the previous year's indexes to provide a continuous time-series.

Annual indexes—The annual price indexes (June, December and March years) are calculated by volume weighting the four quarterly price indexes. The annual volume indexes are the sum of the 4 quarterly volume indexes.

Prior to the revision, separate June year annual indexes were calculated from annual data. The quarterly indexes were aligned, so that the sum of the 4 quarterly volume indexes equalled the annual volume index, and the sum of the products ox the price and volume indexes, divided by the annual volume index, equalled the annual price index.

Quarterly volume indexes—The published quarterly volume indexes are expressed as annual equivalents, by multiplying each initial quarterly index by 4.

Table 24.11. EXPORT PRICE INDEX
Base: Year Ended June 1982 (= 1000)

Year Ended 30 JuneButterCheeseDairy ProductsMeatWoolMeat, Wool. and ByproductsAll Pastoral and Dairy ProductsFood. Live Animals, Beverages, and TobaccoManufactured Goods . Other Than FoodCrude Materials Other Than FuelsAll Groups
1979500528480684816750671593648781647
19805586785748381001916811719765961786
1981699765743927962931877851866932873
198210001000100010001000100010001000100010001000
19831052113410631033972102210361059109310151057
198410661095102310771110110510871083121611461125
198511011331115213081418139813121278149315101376

In Table 24.12 separate series are pared for December years and years ended June, the latter relating more closely to the farming year.

Table 24.12. EXPORT PRICE INDEX
Base: Year Ended June 1982 (= 1000)

YearAll Pastoral and Dairy ProduceAll Groups
19324645
19428279
1952193185
1962196189
1972310294
December Year
1975361367
1976488484
1977570556
1978608591
1979737716
1980841827
1981935934
198210221032
198310571090
198411761232
19324847
19428279
1952194186
1962191184
1972280269
June Year
1975352351
1976430431
1977547534
1978573561
1979671647
1980811786
1981877873
19824,0001000
198310361057
198410871125
198513121376

Table 24.13. IMPORT PRICE INDEX
Base: Year Ended June 1982 (= 1000)

Year Ended 30 JunePetroleum and Petroleum ProductsTextile Yam. Fabrics. etc.Iron and SteelMachinery Other than ElectricalElectrical Machinery and ApparatusTrans port EquipmentFood, Live Animals, Beverages, and TobaccoManufactured Goods Other than FoodCrude Materials Other than FuelsMineral Fuels, Lubricants, and Related MaterialsAll Groups
1979316700660736725697739666556316579
1980594800783780797746819784661594735
1981820899899887938842971891838820878
198210001000100010001000100010001000100010001000
198310761079105311311068108411051098108510761094
198410071158110212111097126512031188116610081155
198512631524142514811285162615231483144512641442

Table 24.14 shows a longer time series of all groups import prices index numbers on the same expression base for years ended March, June, and December.

Table 24.14. IMPORT PRICE INDEX
Base: Year Ended June 1982 (= 1000)

YearYear Ended
31 Mar30 Jun31 Dec
1956151153154
1966156157157
1976427457494
1979570579637
1980684735823
1981851878940
198296610001045
1983106810941134
1984114711551292
198513661442 

Terms of trade. The Terms of Trade Index conceptually provides a measure of the changing level of the volume of imports which can be purchased by a unit quantity of exports. The index is calculated as the ratio of the level of export prices to that of import prices. On expression base: calendar year 1957 (= 100) the formula for calculating the Terms of Trade Index is:

Terms of Trade Index = All Groups Export Price Index 100/All Groups Import Price Index ×100/1

with both price indexes expressed on a common base. The choice of the base year was arbitrarily made at the time and does not indicate that 1957 was a normal or standard year so far as price levels or the terms of the trade are concerned.

Table 24.15a. IMPORT AND EXPORT PRICE INDEXES AND TERMS OF TRADE INDEX—ALL COUNTRIES
Base: Calendar Year 1957 (= 100)

Year Ended JuneImport Price IndexExport Price IndexTerms of Trade Index
1957100100100
197113411283
197214013093
1973147165113
1974165185112
197521816978
197628820872
197732825879
197834727078
197936431286
198046237982
198155242176
198262948277
198368851074
198472754275
198590766473

Table 24.15b. IMPORT AND EXPORT PRICE INDEXES AND TERMS OF TRADE INDEX—ALL COUNTRIES
Base: Calendar Year 1957 (= 100)

PeriodImport Price IndexExport Price IndexTerms of Trade Index
Quarter—
1981—30 Sep60946076
  31 Dec62348277
1982—31 Mar62848978
  30 Jun65349676'
  30 Sep67150275
  31 Dec68050574
1983—31 Mar68949872
  30 Jun71753274
  30 Sep72153574
  31 Dec72553974
1984—31 Mar72454675
  30 Jun73854974
  30 Sep85862072
  31 Dec92167373
1985—31 Mar91968074
  30 Jun93867372
  30 SepP90764071

Volume index of external trade

For the index of the volume of external trade, both the import and the export series are chain-linked series with changing (price) weighting patterns, each year being calculated on base previous year and then linked on.

Table 24.16. EXPORTS
Base: Year Ended June 1982 (= 1000) for each commodity or class of commodities.

Year Ended 30 JuneButterCheeseDairy ProductsMeatWoolMeat, Wool, and By productsAll Pastoral and Dairy Products
198110249929991050101010241011
19821000100010001000100010001000
1983112394110561158113911511124
1984948118710351023109210541090
19851038106310771089113311161172
Year Ended 30 JuneFood, Live Animals, Beverages, and TobaccoManufactured Goods Other Than FoodCrude Materials Other Than FuelsAll Croups
19811003100310421013
19821000100010001000
1983111697110841077
19841108122810641129
19851194133511011216

Table 24.17. IMPORTS
Base: Year Ended June 1982 (= 1000) for each commodity or class of commodities.

Year Ended 30 JunePetroleum and ProductsTextile Yarn. Fabrics. etc.Iron and SteelMachinery Other than ElectricElectric Machinery and ApparatusTransport Equipment
198111988116958477431095
1982100010001000100010001000
198397489884010971126620
19849441039103511831386739
19859671079104112491755849
Year Ended 30 JuneFood. Live Animals, Beverages, and TobaccoManufactured Goods Other Than FoodCrude Materials Other Than FuelsMineral Fuels, Lubricants, and Related MaterialsAll Groups
19816648519721195903
198210001000100010001000
1983814901950973914
1984904104111069431027
1985994116111149661137

Further information

Report of the Customs Department (Parl. paper B. 24).

Report of the Department of Trade and Industry (Parl. paper G. 14).

Export News—Department of Trade and Industry.

Exports: Final 'Statistics—Department of Statistics (annual).

How to Export—Department of Trade and Industry.

Imports: Final Statistics—Department of Statistics (annual).

International Coffee Agreement. 1976 (Parl. paper A. 17 1979).

International Sugar Agreement, 1977 (Parl. paper A. 50 1979).

Report of the Ministry of Foreign Affairs (Parl. paper A. 1).

Monthly Abstract of Statistics—Department of Statistics.

New Zealand Standard Classifications—Department of Statistics.

New Zealand Statistical Classification of Exports.

New Zealand Statistical Classification of Imports.

New Zealand Standard Country Codes (NZSCC).

Report and Analysis of External Trade—Department of Statistics (annual).

Shipping and Cargo Statistics—Department of Statistics (annual).

White Paper on the GATT Multilateral Trade Negotiations (Parl. paper G. 14A 1979).

Trade agreements with individual countries are published as parliamentary papers in the “A” series.

Chapter 25. 25 Prices

Control and stabilisation of prices

The principal enactments affecting the control of prices of goods and services are the Commerce Act 1975 and the Economic Stabilisation Act 1948.

Under the former statute a Positive List of Controlled Goods and Services is published by the Minister of Trade and Industry increases in the prices of goods and services included in this list are subject to the approval of the Secretary of Trade and Industry or, in the case of specified energy products, the Secretary of Energy. Applicants for price increases who are subject to this form of control may appeal to the Commerce Commission if they are dissatisfied with the Secretary's decision. Goods and services at present on the Positive List include motor vehicles, cement, pharmaceuticals, fertilisers, same canned foods, sugar, flour, and butter.

The Commerce Act 1975, Part IV of the Commerce Act provides for goods and services to be placed under price control, and allows regulations to be made placing goods and services under price restraint. Prices for such goods and services are then fixed by the Secretary of Trade and Industry in the form of price orders or special approvals. The Secretary is required on request to give the reasons for a decision to the applicant. The Commerce Commission sits as an independent 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 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 initiative 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 initiative, the Secretary is required by the Act to take certain criteria into account.

Criteria considered by the Secretary of Trade and Industry or the Commerce Commission in dealing with pricing matters include the costs of production and distribution of the goods concerned; the ability of the applicant to absorb costs; profit margins and the return on capital employed by the applicant; improvements in productivity and efficiency; and market competition.

Price statistics

Prices of a large number of goods and services are collected periodically by the Department of Statistics with the primary object of compiling various index number series. The fields covered are external trade (imports, exports), household expenditure (retail prices, urban house property), wool auction prices, farming inputs, capital expenditure, and industrial production (input and output prices).

It is usually possible to subdivide an index series into component group indexes which are often more relevant to specific applications than a combined series. Component group indexes are published in the Monthly Abstract of Statistics and in the annual volume, Prices, Wages, and Labour (Part A: Prices). Subdivisions of indexes not shown in these publications may be available on request.

Price indexes are constructed from prices weighted to reflect the importance of each ratio to the sector as a whole. Changes in the importance of individual items to a sector require periodic revisions of weights.

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 from 1891, and increasing in comprehensiveness as to both commodity and geographical coverage over successive series since that time. The most recent revisions to the Consumers Price Index were made in 1965, 1974, 1977, 1980, and 1983.

The basic objective of the Consumers Price Index is to provide a multi-purpose indicator of retail price changes of those goods and services which are purchased by individuals living in New Zealand. The weights in the Consumers Price Index are based on the pattern of expenditure of the population and, over the full period for which the Consumers Price Index has been compiled, this has shown considerable alterations. Analysis of any long-term time series must involve consideration of the effects of such changes in the pattern of expenditure.

The salient features of the Consumers Price Index may be summarised as follows:

  1. The basic formula used is that of Laspeyres in its aggregative form.

  2. The number of published regimen items excluding fresh fruit and vegetables is 390.

  3. The sources of group and commodity weights are the average expenditure per household from the Household Expenditure Survey, supplemented by cross checks from other statistical sources. Where considered appropriate, the base weights assigned to selected items represent expenditure on kindred items not selected for pricing.

  4. Prices are surveyed, in the main, by statistical interviewers in 25 urban areas. For some items, including rentals, postal surveys are conducted. Property and some additional prices are obtained from other government departments.

  5. Index numbers are compiled for all food and food subgroups at monthly intervals, and for all other groups and subgroups at quarterly intervals.

  6. Index numbers are published for 7 chief urban areas and 12 secondary urban areas individually. Combined index numbers are also published for each of these two groupings and for all urban areas combined. Each centre and grouping of centres is published on its own base.

  7. 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; 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; grazing fees and fees for pony clubs; overseas holidays (other than air fares); baby-sitting tees:, life insurances other than those directly related to mortgage repayments; and interest charges on revolving credit schemes such as charge accounts and credit cards.

Full details on index methodology and changes between successive revisions are given in the publications listed under Further Information. Revisions are normally carried out every 3 years. The latest revision (on base December Quarter 1983 = 1000) was a limited one, mainly concerned with updating the commodity expenditure weighting pattern on which the index is based.

Changes in the expression bases do not alter percentage movements between index numbers, although some variation may be expected from the rounding of decimals.

The first Consumers Price Index table supplies all-groups index numbers and index numbers of individual groups and subgroups for 25 urban areas combined. The group and subgroup weights are also shown as percentages of the base expenditure.

Table 25.1a. CONSUMERS PRICE INDEX—(ALL GROUPS)—TWENTY-FIVE URBAN AREAS COMBINED
Base: Weighted average twenty-five urban areas, December Quarter 1983 (= 1000)

PeriodFoodHousingHousehold OperationApparelTransportationMiscellaneousAll Groups
Groups—
    Percentage of base expenditure18.3521.0016.006.3718.2220.06100.00
December year annual average—
    1983982983996974991988987
    19841039105510221023107910461047
    19851192123811531140125812161209
Quarter ended—
    1984-30 Sep1057106110281021110810601060
            -31 Dec1081110110491054116110871094
    1985-31 Mar1137114410831074120211581142
            -30 Jun1187121511441132125612101200
            -30 Sep1215126411821153128812351233
            -31 Dec1229132912041200128712601261

Table 25.1b. CONSUMERS PRICE INDEX—(ALL GROUPS)—TWENTY-FIVE URBAN AREAS COMBINED

Base: Weighted average twenty-five urban areas, December Quarter 1983 (=1000)—ctd
PeriodFoodHousingHousehold Operation
Fruit and VegetablesMeat, Fish, and PoultryOther FoodRentalsHome OwnershipFuel and LightHousehold FurnishingsHousehold Supplies and Services
Subgroups—
    Percentage of base expenditure2.704.5311.113.1717.832.438.515.06
December year annual average—
    198397095699499298110069911000
    198410101017105610691052102110271016
    198511211121123813751214121011601114
Quarter ended—
    1984-30 Sep10041022107410761058102810331019
            -31 Dec10311058110311161099103210631034
    1985-31 Mar11091091116211621140104611041065
            -30 Jun11781158121913731187126211411091
            -30 Sep11131146126814391233126511871133
            -31 Dec10831131130415261294126512091167
PeriodApparelTransportationMiscellaneousAll Croups
ClothingFootwearPublic TransportPrivate TransportTobacco and AlcoholOther SuppliesOther Services
Subgroups—
     Percentage of base expenditure5.121.253.0715.159.315.615.15100.00
December year annual average—
    1983972979997990981997991987
    198410221027102810901036105010611047
    198511411136114212821239118012141209
Quarter ended—
    1984-30 Sep10201027104711201045106910761060
            -31 Dec10521058106311811080109210921094
    1985-31 Mar10731078109212241189112711371142
            -30 Jun11331127112412831246117211881200
            -30 Sep11551144116413131253119312501233
            -31 Dec12021195118813071268122812811261

The calendar year annual average level of consumer prices rose by 15.5 percent between the 1984 and 1985 years compared with a rise of 6.1 percent between the corresponding 1983 and 1984 years. Although price increases were recorded in all groups of the index, the major contributions to the latest 15.5 percent increase came from the following subgroups: private transport; home ownership; food other than fruit, vegetables, meat, fish and poultry; tobacco and alcoholic drink items and household furnishings and dwelling rentals.

The following tables distinguish individual urban areas and groupings of urban areas, but the subgroup indexes are omitted.

The index numbers are specially designed to show price movements in each urban area. Changes calculated between any two index numbers for an urban area can be compared to changes for the same periods in other urban areas. Interpretations of such comparisons should be made with the understanding that only movements in the general level of retail prices in the urban areas are involved. How much cheaper or dearer it is to live in one urban area than another cannot be determined. The index has been designed with the assumption that expenditure patterns are the same in each urban area, but in reality completely identical goods, services and shops do not occur. The index, therefore, aims at pricing the same goods and services at the same stores each period rather than attempting consistency between urban areas. The differences in the samples between urban areas prevents comparisons of price levels.

Table 25.2. CONSUMERS PRICE INDEX—ANNUAL AVERAGE GROUP INDEX NUMBERS FOR INDIVIDUAL URBAN AREAS AND GROUPINGS OF URBAN AREAS
Base: Weighted average each urban area and grouping, separately, December Quarter 1983 (= 1000)

Urban AreaFood*Housing*'Household Operation*Apparel'Transportation*Miscellaneous*All Groups*
19841985198419351984198519841985198419851984198519841985
Auckland10451215105512431025116810111133108012591049121910491217
Hamilton10471219105412351018114310171149108112631049121410491213
Napier- Hastings10431176104812381024113810261150108012621049122310481206
Palmerston North10241249105212331026115810251124107812471045121610441197
Wellington-Hutt10371176105312331032117310181132107912601047120810481206
Christchurch10301182105712301010112710381152107712561046121610451202
Dunedin10391173105312271022114910381178107912591052121710491205
7 chief urban areas10391194105412361023115610211141107912581048121610481210
Whangarei10431206105412411023115310281161108112611050123010501217
Tauranga10441208105712491018115210401147107812591048121410491215
Rotorua10431214105412411016114410321140107712521051122710481214
Tokoroa10411206105812441035115610231129108012541043122110501213
Gisborne10451206105412381014114110181125108112611052122910481211
New Plymouth10351172105612401029115910251124107812531048122610481206
Wanganui10511184105612461028115010281144108112571045122710511211
Masterton10401159105412341031115610011107108112701052123310491206
Nelson10391194105512381020114810161126108112121040126610461208
Greymouth10431182105912471014112610361146107612571040121110471204
Timaru10361187105212341018114110241152107612561048121310451205
Invercargill10291166105812391014112510231133107812501015117910381190
12 secondary urban areas10401192105512411021114610261139107912581044121710471209
25 urban areas combined10391192105512381022115310231140107912581046121610471209

* Year ended 31 December.

†Includes 6 smaller urban areas, viz Whakatane, Taupo, Hawera, Blenheim, Ashburton, and Gore.

Average retail prices

In Table 25.3 food prices are for the month of November 1985. Other prices are averages prevailing in the calendar quarter. These weighted average prices of selected items are used in the calculation of the CPl and provide a reliable indicator of relative movements in price levels when compared with average prices for earlier periods. However they are not designed to give, and therefore do not necessarily provide, a statistically accurate measure of absolute average transaction prices at the stated time. Item specifications can differ between urban areas and over time, and this adds to the variability of the weighted average price data when used to measure changes at item price levels.

Table 25.3. AVERAGE RETAIL PRICES

CommodityUnitPrice
Apples, eatingkg2.55
Bananaskg1.67
Orangeskg1.63
Cabbagekg0.45
Carrotskg1.38
Onionskg0.87
Potatoeskg0.84
Peaches, canned425 g tin1.01
Peas, green frozen1 kg pkt1.97
Beef, blade steakkg6.56
    corned silversidekg6.38
    prime rib rolledkg5.36
    porterhouse steakkg9.17
    rump steakkg8.18
Hogget, cut leg,
    knuckle endkg4.08
    forequarterkg2.54
Lamb, leg, wholekg4.41
Pork, cut leg, knuckle endkg6.24
Pork, loin chopskg6.55
Bacon, middle rasherskg10.82
Mincekg4.49
Ham, cooked, pressed, slicedkg12.14
Sausageskg2.87
Fish, sole or flounder, wetkg5.12
    fresh, filleted—e.g. tarakihi-groperkg10.91
Salmon, canned220 g2.48
Chicken, deep frozenNo.6 (Med)5.26
Eggs, min. 636 g/dozenDozen1.89
Butter500 g1.48
Cheese, mild cheddarkg4.96
Milk, delivered600 ml0.40
Milk powder, full cream400 g tin2.62
Biscuits, chocolate wheaten200 g1.20
Bread, sliced, wrapped750 g1.00
Cake, block, light fruit500 g2.97
Oatmeal, fine porridge1.4 kg2.27
Flour, white1.5 kg1.35
Rice, long grain500 g0.65
Breakfast flake biscuits750 g1.88
Honey500 g ctn1.52
Jam, apricot400 g tin1.27
Coffee, instant100 g jar3.60
Tea250 g2.20
Margarine, table500 g1.77
Cooking oil, vegetable500 ml2.28
Salt, iodised2 kg bag0.98
Spaghetti in tomato sauce440 g tin0.95
Soup, tomato450 g tin0.91
Sugar, white1.5 kg pkt1.29
Aerated waters incl. bottle1.25 litre1.71
Ice cream, vanilla2 litre2.90
Chocolate, block150 g1.92
Meals, grill, steak and chipsEach8.35
Meals, coffee and 2 sandwichesEach1.90
Takeaways, chicken, hot snackBox2.97
Takeaways, hamburger, hotEach1.58
Timber, dressed, 150 mmPer 100 
× 25 mm finishing tanlineal 
alised radiata pinemetres298.87
Concrete blocks, 390 mm × 190 mm × 140 mmPer 100120.45
Paint (waterbased), high- gloss white4 litre tin48.05
Coal, domestic255 kg49.34
Electricity, domestic (incl. water heating)-30 days2520 MJ42.07
Gas, domestic-30 days1100 MJ10.55
Electric jug, chrome finish, 1500 W std elementEach49.25
Electric range, 4 elements, automaticEach968.03
Refrigerator, single temp., 0.26 cumEach733.80
Refrigerator, dual temp., freezer-fridge 0.32 cu mEach1,010.23
T.V. set, colour 56 cmEach1,512.54
Lawn mower, rotary type, 2 stroke, 46 cmEach694.64
Venetian blind, 175 cm wide, 130 cm dropEach193.61
Carpet, broadloom, 80/20 wool/nylon. 950 g/m2Metre176.54
Vinyl flooring, 183 cmMetre45.73
Pillow, dacron-filledEach12.37
Mixing bowl, stainless steel, 20 cmEach13.50
Fork, table, stainless steel, med. qualityEach0.96
Torch battery, dry cell, 1250Each0.90
Electric light bulb. 100 WattEach0.82
Household cleaning powder500 g1.19
Detergent, plastic container990 ml2.20
Disinfectant560 ml1.39
Fly spray, aerosol300 ml can2.63
Shoe polish38 g1.17
Soap powder1.10 kg2.19
Postal letter, standard, surfaceEach0.25
Telephone rental (private), main exchange1 year213.00
Drycleaning, man's two piece suitEach7.71
Licence, T.V., black and white1 year27.50
Licence, T.V., colour1 year45.00
Pantyhose, sheer, av. size, popular brandPair2.88
Shorts, casual sports, boy'sPair9.23
Socks, ankle, girl'sPair2.97
Nursery squares, 76 cm × 76 cm, cottonDoz.36.77
Baby's vestEach4.06
Dress patternEach4.19
Wool, hand knitting, crepe, double knitting50 g2.84
Slippers, felt, man'sPair15.37
Shoe repairs, cemented leather half sole, size 5 woman'sPair16.59
Bicycle, man's 10 speed, without accessories, N.Z. manufactureEach380.39
Petrol, 96 octane10 litres9.00
Cigarettes, filter tippedpkt of 201.75
Tobacco, cigarette50 g3.18
Beer in public bar—glass200 ml0.56
Wine, N.Z. sherry medium dry2.25 litre Flagon14.69
Aspirin, 24 tabletspkt1.77
Razor blades (not bonded)pkt of 51.94
Baby talcum powder330 g3.35
Toilet paper, 2 ply, 37.8 m4 rolls2.14
Toilet soap150 g0.56
ToothbrushEach1.62
Toothpaste100 g tube1.25
Suitcase, largeEach77.89
Umbrella, collapsible, woman'sEach14.32
Envelopes, 89 mm × 146 mm gummedpkt of 200.81
Writing pad, 203 mm × 127 mm. lightweight80 leaf pad1.23
Pencil, black leadEach0.39
Film colour slide (including processing), 35 mm, 25 ASA 20 exposuresEach16.24
Developing and printing, 126 colour film, 12 prints, 87 mm × 90 mmTotal8.66
Tennis balls, 2nd gradePair5.60
Newspaper, delivered, dailyEach0.30
Popular book, paperbackEach5.50
Opticians fee, full examination and spectacles with caseEach121.36
Dental filling, simple amalgam, one surfaceEach18.13
Dentures, full set, acrylicSet461.26
Football admission to ground, club gameEach2.11
Cinema admission, adult, eveningsSeat4.09
Rugby club subscription, per annumPer member38.77
Tennis club subscription, per annumPer member74.31
Funeral, burial ($00)Each14.48
      cremation ($00)Each12.33
Hair cut, woman's wetEach18.69
      man's dryEach6.93

International comparisons

Table 25.4 provides a comparison of Consumer Price Indexes of selected countries. Comparisons may be drawn between the movements in price levels experienced by domestic consumers in each country. The indexes do not convey any information about the relative price levels existing in each country. Indexes published by each country have been converted to a common base of December 1980

(= 1000). Comparisons of price levels for a range of basic foodstuffs are shown in Table 25.5. Prices are collected from official statistical publications provided by the country concerned and converted, using appropriate exchange rates, into equivalent New Zealand dollars.

Table 25.4. INTERNATIONAL COMPARISONS OF CONSUMER PRICE INDEXES
Base: December Quarter 1980 (=1000)

YearNew ZealandAustraliaCanadaFrance (Paris)JapanUnited KingdomUnited States
1980948969959957974963963
19811094106310791083102710771062
19821270118111961210105511701126
19831364130112641323107312231160
19841448135113191422109812841200

Table 25.5. INTERNATIONAL COMPARISON OF RETAIL PRICES OF BASIC FOODSTUFFS
(During the 4th quarter of 1984 in New Zealand currency)

ItemUnitNew Zealand (Average 25 Urban Areas)*Australia (Sydney)Great Britain (200 Areas)*Japan (Tokyo)*

* November month.

†December Quarter.

Sources: Australia: Australian Statistician. Great Britain: Department of Employment Gazette. Japan: Bureau of Statistics.

  centscentscentscents
Bread750 g84174110235
Flour1.5 kg125210107-
Tea500 g3734965422,198
Coffee (instant)100 g280424332-
Sugar1 kg80115121219
Milk (fresh)600 ml307161143
Cheesekg398-6651,120
Butter500 g117271258697
Margarine500 g146193106365
Baconkg1,0111,457746-
Beef—rib roastkg5218101,6623,020
Lamb—legkg462698931-
Pork—legkg6208426411,368
Pork chopskg660935--

Producers Price Index

The Producers Price Index (previously called the General Price Index) replaced and considerably extended the Wholesale Prices Index, which was discontinued from the March quarter 1978. The Producers Price Index measures quarterly price level changes commencing with the December quarter 1977. It is intended to provide a measure of average price changes over all industrial and government sectors of the economy.

Price indexes for inputs and outputs at both all-industry and group levels are contained in this index. The all-groups level of the Producers Price Index reflects price level movements as these affect the inputs and sales of business and government. Industry groups for which separate index series are available correspond with the New Zealand System of National Accounts production groups. It is conceptually impossible to calculate an output index for the non-market oriented groups of Central Government Services, Local Government Services, and Private Non-profit Services to Households. Their activities differ substantially in character from market-oriented industries in that their output is produced for free distribution or at prices which bear no relationship to the cost of production.

The use of identical industry classification in the national accounts and in the Producers Price Index is part of the Department of Statistics' long-term policy to integrate all economic statistics. With price deflation of the current value of each industry's input of goods and services and its output, it is possible to calculate the industry's real net output and contribution to the Gross Domestic Product. This will be in constant prices or, effectively, in volume terms.

The commodity expenditure weighting patterns and selection of price-surveyed items are based on data from the economic censuses of business activity undertaken by the Department of Statistics. Additional information for weighting purposes has been obtained from other government departments, producer boards, professional organisations and the business community. Specifications for the goods and services that are price-surveyed have been obtained in collaboration with suppliers of the price data to ensure representativeness of priced commodities and adherence to these specifications over time.

The weight assigned to an industry to obtain the all-industry group index is based on the New Zealand System of National Accounts Production Accounts for 1975-76. Commodity weightings within each industry index are based on data from the 1971-72 Inter-Industry Study. Adjustments have been made for significant variations in relative commodity weightings occurring between the date of the study and the index expression base.

Prices for inputs are producer prices (i.e., factory door prices including commodity taxes). Separate indexes are prepared for transport and distribution charges. Where reliable unit-values are available, these have been incorporated in the relevant input indexes. It is not intended to produce separate subindexes for the imported components of each industry's input.

Industry outputs are priced at approximate basic values (i.e., before the addition of commodity taxes or deduction of subsidies). These correspond to factory door prices or as close to this level as the firm's pricing policy allows. Downstream commodity taxes are excluded. In cases where price differentiation occurs between items both consumed locally and exported, separate pricing is usually obtained.

Tables 25.6 and 25.7 show price indexes of inputs (i.e., current purchases of commodities and services) and of outputs by industry groups. As already stated, input prices are producers' prices and include commodity taxes paid by, and subsidies received by, the producer.

Table 25.6. PRODUCERS PRICE INDEX-INPUTS
Base: December Quarter 1982 (=1000)

Industry CroupQuarter Ended
31 Dec 198231 Dec 198431 Mar 198530 Jun 198530 Sep 1985

*Includes industry groups 5 to 13.

†Includes industry groups 1 to 21.

  1 Agriculture10001159120512601301
          Sheep and beef farming10001184123512931336
          Dairy farming10001121115512111252
          Mixed cropping farming10001148118812481286
          Horticulture farming10001121117412361270
          Pig, poultry and other farming10001126115911821213
          All farming10001160120612611303
          Agricultural contracting10001124116912221251
  2 Fishing and hunting10001234124813511314
  3 Forestry and logging10001116119512591305
  4 Mining and quarrying10001095112011721194
  5 Food, beverages and tobacco10001268131413211336
          Primary food processing10001317135113371342
          Other food processing10001104116412101239
  6 Textiles, apparel and leather10001229126112951260
  7 Wood and wood products10001109119812801317
  8 Paper, printing and publishing10001098115512181236
  9 Chemicals, petroleum and plastics10001183125013081340
10 Non-metalic mineral products10001096114311981222
11 Basic metals10001163120412101162
12 Machinery and metal products10001210126813091321
13 Other manufacturing10001126115812071227
14 Electricity, gas and water10001064107312791287
15 Construction10001107116112261245
16 Trade, restaurants and hotels10001104114812081239
          Wholesale and retail trade10001102114312081240
          Hotels, restaurants, takeaways10001110116012091239
17 Transport and storage10001136118312331215
          Road transport10001113115512311235
          Transport and storage other than road10001146119412351208
18 Communication10001093113411911178
19 Insurance and financing10001176117813241348
20 Ownership of dwellings10001111116512201267
21 Community and personal services10001133117812381278
22 Central Government10001138117712391264
23 Local Government10001118115711991227
24 Private non-profit services10001105115112031249
              All manufacturing groups*10001206126012961306
All market groups10001164121212701287
         All industry10001162120912671285

Table 25.7. PRODUCERS PRICE INDEX-OUTPUTS
Base: December Quarter 1982 (=1000)

Industry CroupQuarter Ended
31 Dec 198231 Dec 198431 Mar 198530 Jun 198530 Sep 1985

*Includes industry groups 5 to 13.

†Includes industry groups 1 to 21.

  1 Agriculture10001310134813361311
  2 Fishing and hunting10001468150316251596
  3 Forestry and logging10001263150016501648
  4 Mining and quarrying10001031112212031224
  5 Food, beverages and tobacco10001221124512801269
          Primary food processing10001257127212911252
          Other food processing10001125116712241266
  6 Textiles, apparel and leather10001160120212301198
  7 Wood and wood products10001093115012251273
  8 Paper, printing, and publishing10001129117512061229
  9 Chemicals, petroleum and plastics10001087116712331320
10 Non-metalic mineral products10001075112211521189
11 Basic metals10001193129013031218
12 Machinery and metal products10001160121212611292
13 Other manufacturing10001112115312021220
14 Electricity, gas and water10001046105212521260
15 Construction10001102112811611196
16 Trade, restaurants and hotels10001145119212461271
          Wholesale and retail trade10001150119012431268
          Hotels, restaurants, takeaways10001124119912611286
17 Transport and storage10001063112211421148
                Road transport10001050114111691186
                Transport and storage other than road10001067111111261127
18 Communication10001000100010001137
19 Insurance and financing10001197120613081334
20 Ownership of dwellings10001172124014701533
21 Community and personal services10001132116812221257
All manufacturing groups*10001159120712511267
All market groups10001157120012551276

Capital Expenditure Price Index (CEPI)

A new series of price indexes, jointly called the Capital Expenditure Price Index, was released in May 1981 by the Government Statistician. These new indexes provided measures of price level changes of physical capital assets purchased by businesses and Government in New Zealand.

The concept of price employed is the “price to the final user” and does not include freight or installation costs unless these are normally Included in the final price. No account can be taken of special discounts. Sales tax has been included where applicable.

Each capital expenditure asset-type index is constructed by combining the relative price changes of representative items. The importance given to each item is determined by the expenditure made on all the assets which that item represents. The relative importance of any item, vis-a-vis other price items, is known technically as the “weight” for that item.

Because expenditure on capital items tends to be irregular, the weights used in the CEPI have, in general, been based on expenditure over a 2- to 5-year period ranging from 1975-76 to 1979-80. In deriving the weighting pattern for the CEPI the Department of Statistics has primarily used statistics on external trade, manufacturing, and building. These have been supplemented with data from a diversity of sources including other government departments, marketing and producer boards, manufacturers, wholesalers, and retailers.

It should be noted that the index numbers relate to the price levels ruling at the mid-point of each quarter.

Table 25.8. CAPITAL EXPENDITURE PRICE INDEX
Base: December Quarter 1979 (=1000)

Capital AssetQuarter Ended
Dec 1984Mar 1985Jun 1985Sep 1985
Residential buildings—
    Houses, flats, garages1842189619732,025
    Hostels1764179918531932
Non-residential buildings—
    Commercial buildings1728175818081880
    Factories1749177918271902
    Hospitals, rest homes1748178318361918
    Educational buildings1769180518591936
    Motels, hotels1732176918271896
    Farm buildings1723185519571988
Other construction—
    Transport ways1842188519171977
    Pipelines1666170618171870
    Electrical works1641168117751790
    Earthmoving and site work1790181918841948
Land improvements—
    Land clearing1806189519282,005
    Fencing1551158816401691
    Irrigation and land drainage1720172017891845
    Reclamation and river control1799182419171967
Transport vehicles—
    Cars, less than 1600 c.c.1791190819341966
    Cars, 1600 c.c. and above1757179418501899
    Commercial vehicles, less than 2500 kg1837190719531995
    Commercial vehicles, 2500 kg and over1697176418131831
    Buses190519582,1482,219
    Trailers1718178418841884
    Motor cycles1256129813651384
    Fishing boats2,0332,1312,1802,228
    Light fixed-wing aircraft3,0473,1673,3792,950
    Helicopters3,0503,0933,1112,635
Plant, machinery, and equipment—
    Agricultural tractors1545160216291666
    Self-propelled harvesting machinery1831185318541837
    Other harvesting and mowing machinery1564160216411701
    Soil preparation and cultivation machinery1736182019102,019
    Other agricultural machinery and equipment1664172417871823
    Farm motor cycles1482156816511662
    Self-propelled construction machinery19892,0822,1052,116
    Non-self-propelled construction machinery, quarrying machinery1741184218921957
    Food and drink processing machinery1783182318631917
    Bottling and packaging machinery1915197519951916
    Textile machinery179618992,0551977
    Woodworking machinery1717180018291850
    Printing and publishing equipment1583170617541788
    Metal working machinery1594175318271835
    Forklifts and mobile material-handling equipment1580160916461665
    Mechanical hoists, conveyors, etc.2,1472,2562,3242,383
    Electrical distribution equipment1876193619751992
    Electric motors, up to 7 kW (1-9 hp)1692177318401853
    Electric motors, 7 kW and over (over 9 hp)1616188019181973
    Industrial engines, non-electric1823189319742,026
    Airconditioning and cooling equipment1721173017561811
    Refrigerating equipment1489153117911765
    Industrial boilers and heating equipment18892,0242,1522,174
    Pumping and compressing equipment1657172718551837
    Office and shop equipment, electronic1089114411451145
    Office and shop equipment, non-electronic1358139514121465
    Office and shop furniture and fittings175019672,0202,107
    Duplicating and photocopying machines794794801803
    Scales and weighing machinery1226122812391227
    Shipping and transportation containers1803189119922,078
    Tanks, vats, and storage units1673178518241885
    Photographic and optical equipment1623174917901801
    Technical and scientific equipment ..186919912,0712,072
    Medical, dental, and hospital furniture and equipment1766186518661920
    Stereo equipment982102410341075
    Television receivers1182122212821332
    Peripheral data processing units1428147015231491
    Radio-telephone and telegraphic equipment1491161516441646
    Domestic-type furniture and furnishings1595166917311830
    Domestic-type appliances1533159416441654
    Domestic-type equipment and utensils1524156016091669
    Portable power tools1622175717801814
    Sport and recreation equipment1603167517641805

More information on the methodology of the index is available from the Department of Statistics.

Table 25.9. SUMMARY OF PRICE MOVEMENTS
Base: December Quarter 1977 (=1000)

YearProducers Prices* All Industries InputsConsumer Prices
FoodAll Groups

* Wholesale Prices Index replaced by General Price Index from December quarter 1977. This index was later renamed the Producers Price Index.

1941..138148
1951..224216
1961..311306
1971..475480
1974..618618
1975..683708
1976..810828
1977..948947
1978107210501060
1979126212311206
1980155014821412
1981181217311629
19822,08519451893
19832,1992,0242,032
19842,3552,1422,157
19852,7172,4572,490

Further information

Reports of the Consumers Price Index Advisory Committees (Parl. paper G. 28A, 1978, and Parl. paper H. 40 1971).

Report on Consumers Price Index Revision 1980—Department of Statistics.

Report of the Department of Trade and Industry (Parl. paper G. 14).

Report of the Government Statistician (Parl. paper G. 28).

Monthly Abstract of Statistcs—Department of Statistics.

Prices, Wages and Labour. Pt. A, Prices—Department of Statistics (annual).

Chapter 26. 26 Finance, banking and insurance

26.1 Banking system

The core of the New Zealand banking system comprises a central bank (the Reserve Bank of New Zealand) and 4 commercial or trading banks. There are also 12 trustee savings banks and the Post Office Savings Bank, while each trading bank has a private savings bank subsidiary. In addition, a large number of finance companies, trading companies, investment societies, etc., accept deposits and grant credits (short-term and long-term) to clients. Particularly since the 1960s, an expansion in the size and scope of near-banks (or non-banking financial institutions) has been a feature in New Zealand as in many other countries.

Reserve Bank of New Zealand

The Reserve Bank of New Zealand, the central bank, was established in 1933 as a privately-owned institution, but became a fully State-owned institution in 1936. The Reserve Bank of New Zealand Act 1964 and amendments provided the Reserve Bank with powers in line with modern central banking practice and monetary policy. It provided the Government and the Reserve Bank with flexible authority to take such monetary action as might be appropriate to the times with respect to any financial institution.

Functions of the bank. Section 8 of the Reserve Bank of New Zealand Act, as amended in 1973, states the primary functions of the bank, its basic relationships with Parliament, the Government, and the Minister of Finance, and lays down the criteria for Government monetary policy. The section reads:

  1. The primary functions of the bank shall be—

    1. To act as the central bank for New Zealand; and

    2. To ensure that the availability and conditions of credit provided by financial institutions are not inconsistent with the sovereign right of the Crown to control money and credit in the public interest; and

    3. To advise the Government on matters relating to monetary policy, banking, credit, and overseas exchange; and

    4. Within the limits of its powers, to give effect to the monetary policy of the Government as communicated in writing to the bank under subsection (2) of this section, and to any resolution of Parliament in relation to that monetary policy.

  2. For the purposes of this Act, the Minister may from time to time communicate to the bank the monetary policy of the Government, which shall be directed to the maintenance and promotion of economic and social welfare in New Zealand, having regard to the desirability of promoting the highest level of production and trade and full employment, and of maintaining a stable internal price level.

  3. The bank shall, as directed by the Minister, regulate and control on behalf of the Government—

    1. Money, banking, banking transactions, any class of transactions of financial institutions, credit, currency and the borrowing and lending of money;

    2. Rates of interest in respect of such classes of transactions as may from time to time be prescribed;

    3. Overseas exchange and overseas exchange transactions.

  4. The bank shall make such loans to the Government and on such conditions as the Minister decides from time to time, in order to ensure the continuing full employment of labour and other resources of any kind.

    The bank also has a number of other functions including:

    1. Banking functions for the Government, Government trading organisations, and the primary produce marketing authorities as well as for the trading banks.

    2. Management of the note and coin issue.

    3. Management of public and local authority debt.

    4. Management of foreign exchange reserves.

    5. The administration of various acts including the Overseas Investment Act 1973, the Trustee Savings Bank Act 1948, and the Private Savings Bank Act 1964.

    6. Maintaining relations with international organisations such as IMF, IBRD, and OECD.

    7. Economic research and advice.

Whilst the bank must give effect to Government monetary policy, or to resolutions of Parliament related thereto, the directors are given a fair degree of independence and responsibility in the management of the bank and the conduct of its business.

The exercise of the Reserve Bank's powers is at the discretion of the directors, but the consent of the Minister of Finance is required in certain special cases. The consent of the Governor-General in Council is required before the bank can engage in trade or have a direct interest in any commercial, industrial, or financial institution, or purchase, or lend against, the shares of a trading bank or financial institution. The Government is required to entrust to the bank, and the bank to undertake, free of charge to the Government, all Government banking transactions.

The Reserve Bank has 10 directors, comprising the Governor, the Deputy Governor, the Secretary to the Treasury, and 7 other directors appointed by the Governor-General in Council.

Regulation of banking and credit. In Part V of the 1964 Act, trading banks are required to make monthly returns to the Reserve Bank detailing their principal liabilities and assets. Statutory authority has been provided for obtaining such subsidiary returns and other information from trading banks as the Reserve Bank may require.

This section authorises the application of reserve ratios. Subject to the approval of the Minister, the trading banks may be required to hold balances at the Reserve Bank or to hold assets of specified kinds, including balances at the Reserve Bank. However since 11 February 1985, the Reserve Bank, with the approval of the Minister of Finance and as part of the move to abolish all compulsory ratios, is no longer applying reserve ratios to the trading banks.

The Reserve Bark is authorised to give directions to trading banks as to the policy to be followed in relation to advances, discounts, and investments and in relation to rates of interest or discount.

The Reserve Bank of New Zealand Amendment Act 1973 extended the controls previously exercised over the trading banks to include all financial institutions. The Amendment Act provided the monetary authorities with forms of control over non-bank financial institutions including the power to make recommendations or give directives, to specify rates of interest, to require the holding of specified assets, and to inspect books and request information. Apart from these direct controls over financial institutions, the Reserve Bank may influence the financial system by buying and selling Government securities. Fuller information on instruments of monetary control and their operation is given later in this section.

Statistics collected from trading banks, finance companies, building societies, the money market, the commercial bill market, life assurance companies, stock and station agents, and all savings banks appear regularly in the Reserve Bank Bulletin.

Table 26.1. LIABILITIES OF THE RESERVE BANK

YearBank NotesDepositsOverseas LiabilitiesOther LiabilitiesTotal Liabilities
StateMarketingOtherShort- termLong- termAllocation of Special Drawing Rights

Source: Reserve Bank of New Zealand.

$(million)
Monthly Average for Calendar Year
1983633.9916.7179.0142.771.11,337.6226.9211.43,719.3
1984679.51,902.7251.459.1218.81,302.9257.3153.64,841.3
1985731.31,828.3267.165.5182.51,423.4288.4294.35,080.8
At End of June
1983615.11,341.9168.5267.65.11,370.7229.3202.04,200.3
1984656.21,720.1243.235.2592.61,229.8226.6172.64,876.4
1985721.41,056.1273.266.9270.51,609.4314.0189.84,501.1

Table 26.2. ASSETS OF THE RESERVE BANK

YearGoldOverseas AssetsInvestments in New ZealandAdvances and Discounts
Short- termLong- termSpecial Drawing RightsStateMarketingTrading BanksOtherOther Assets

Source: Reserve Bank of New Zealand.

$(million)
Monthly Average for Calendar Year
19830.7362.015.117.61,262.989.81,298.0225.84.3474.3
19840.7975.616.85.01,727.480.61,336.8221.83.4567.2
19850.71,551.717.511.61,557.6180.81,362.464.90.5333.0
At End of June
19830.7322.815.225.21,823.771.11,316.256.47.8561.1
19840.7641.314.80.12,587.63.21,408.549.019.5151.7
19850.71,713.418.82.71,099.2119.91,390.95.90.5149.0

Trading banks

New Zealand has a branch banking system with private shareholder ownership, with the exception of the Bank of New Zealand which is fully State-owned. The general business of banking is governed by the Banking Act 1982. Part II of the Bills of Exchange Act 1908 and the Cheques Act 1960 comprise the laws relating to cheques drawn on a bank. The trading banks must also comply with the Credit Contracts Act 1981, which came into effect in June 1982.

Banks accept deposits from the public for either a fixed term or on an “on demand” basis. Whereas demand deposits can be operated on by cheque, time deposits cannot. Prior to September 1984 regulations prevented banks from offering interest on demand deposits. Cheques drawn on current accounts are efficient and widely used instruments for the settlement of commercial and private debts. Since 1979 cheques have been complemented by the introduction of bank credit cards which combine settlement and credit facilities.

With the enactment of the Private Savings Banks Act 1964 the trading banks established savings banks offering ordinary, investment, thrift club, home ownership, and special purpose accounts.

There are 4 trading banks in New Zealand, the Westpac Banking Corporation—which is incorporated in Australia, the Bank of New Zealand, the ANZ Banking Group (New Zealand) Limited, and the National Bank of New Zealand Limited. The trading banks jointly own a computer company, Databank Systems Limited. Databank has had a national network of computer centres operating since 1969. This network handles the daily operations of the banks, including the clearing of cheques.

Bank of New Zealand. The Bank of New Zealand was incorporated in 1861, by the New Zealand Bank Act, and became a wholly State-owned trading bank in 1945. At 31 March 1985 it had 233 branches and 140 agencies and 12 service centres in New Zealand, a branch and a sub-branch in London, 9 branches in Australia, and 24 branches and agencies in Fiji. It also has a branch in Singapore, 1 in New York, a representative office in Japan and in Hong Kong, and an agency in Los Angeles. The bank owns 50 percent of the shareholding of the Bank of Western Samoa and 20 percent of the capital of the Bank of Tonga. In common with other trading banks the Bank of New Zealand operates a savings bank in New Zealand. In addition, it has a 74.88 percent shareholding in BNZ Finance Company Limited and a 50 percent interest in the Sydney-based finance company, Hunter BNZ Finance Ltd. It holds a 30 percent interest in a joint venture with Bradbury, Wilkinson and Company Ltd of the United Kingdom in a security printing plant at Whangarei. The Bank also provides life insurance services, through its wholly-owned subsidiary company, BNZ Life Insurance Limited.

Trading income (including income from investments) of the Bank of New Zealand during the year ended 31 March 1985 was $420.9 million compared with $344.9 million the previous year and $285.1 million in 1982-83. Of the 1984-85 total of $420.9 million, operating expenses took $278.3 million and provision for taxation $66.3 million, leaving a net profit of $75.0 million compared with $55.2 million in the previous year and $35.9 million in 1982-83.

The total assets of the bank and its subsidiaries as at 31 March 1985 amounted to $8,647.3 million. Among the main items were advances, bills discounted, lease receivables, and sundry debts ($6,266.9 million), Government and local body securities ($1,314.5 million), and cash on hand, items in transit, and deposits with bankers ($806.1 million). Bank properties and equipment were valued at $230.2 million. The principal item of liabilities was deposits at $7,190.1 million.

Liabilities and assets of trading banks. Trading banks are required to submit at monthly intervals a return of certain liabilities and assets in respect of New Zealand business.

Table 26.3. 26.3 SELECTED LIABILITIES OF TRADING BANKS*

YearLiabilities in New ZealandLiabilities Outside New ZealandTotal LiabilitiesTotal Deposits Per Head of Mean Population
DepositsOther Liabilities
DemandTime

* Hading bank business only, excludes liabilities of savings bank subsidiaries, shareholders' funds, capital liabilities to overseas head offices, contingencies, interbank accounts, and transit items within New Zealand.

†Compensatory deposits included

Source: Reserve Bank of New Zealand.

$(million)
Monthly Average for Calendar Year
19812,040.24,235.2108.2173.76,557.31,987.6x
19822,214.04,895.0143.3242.17,494.42,233.5x
1982,38165,498.6125.2347.48,352.82,443.1x
19342,610.56,512.6354.3x432.79,910.1x2,800.0x
19852,713.68,925.4131.1671.612,441.73,549.8
At End of June
19812,088.54,124.575.3208.36,496.61,972.8x
19822,376.74,756.1188.3208.17,529.12,251.1x
19832,308.15,152.8133.4328.77,923.02,329.5x
19842,518.85,930.5306.6313.79,069.62,605.3x
19852,700.58,800.2114.2618.812,233.73,515.7

Table 26.4. SELECTED ASSETS OF TRADING BANKS

YearCoinReserve Bank NotesDemand Deposits Held in Reserve BankOverseas AssetsInvestmentsLoans*Other AssetsTotal Selected AssetsRatio of Loans to Total Deposits

* Includes advances, discounts and term lending but excludes interbank lending.

†Includes interbank lending, land and buildings.

Source: Reserve Bank of New Zealand.

$(million)
Monthly Average for Calendar Year
19817.973.81.0489.11,425.74,749.5221.26,968.275.7
19828.068.41.5560.31,333.35,793.2246.48,011.181.5
19837.865.00.2618.42,183.65,913.7276.09,064.775.0
19847.868.3-603.92,843.86,958.3x358.510,840.6x76.3x
19858.261.455.6943.53,495.68,789.6414.913,768.875.5
At End of June
19817.168.6-542.41,498.74,596.1179.46,892.374.0
19827.561.9-619.11,246.05,867.8254.58,056.982.3
19836.956.6-573.31.823.45,857.7307.38,625.278.5
19847.161.5-525.12,176.77,050.6295.710,116.783.4
19857.559.8-1,004.53,001.38.823.0435.313,331.476.7

Table 26.5. INTEREST RATES ON TRADING BANK OVERDRAFTS

Rate Charged. PercentPercentage of Total Overdrafts at Each Rate as at End of March
1982198319841985

Source: Reserve Bank of New Zealand.

    Less than 63.84.03.93.8
  6 and less than 80.30.30.90.6
  8 and less than 100.20.62.90.5
10 and less than 1210.26.436.40.5
12 and less than 1442.640.028.86.2
14 and less than 1623.924.315.029.4
16 and less than 1813.114,69.534.5
18 and less than 205.58.42.213.6
20 and over0.51.40.4.11.0
 100.0100.0100.0100.0

Table 26.6. INTEREST RATES ON TRADING BANK TERM LOANS

Rate Charged, PercentPercentage of Total Term Loans at Each Rate as at End of March
1982198319841985

Source: Reserve Bank of New Zealand.

    Less than 60.1-_0.10.0
  6 and less than 80.20.20.40.3
  8 and less than 100.1-0.10.4
10 and less than 124.20.717.12.8
12 and less than 147.38.613.92.3
14 and less than 1629.617.436.015.1
16 and less than 1851.051.725.331.1
18 and less than 207.420.56.938.5
20 and over0.20.90.29.5
 100.0100.0100.0100.0

Table 26.7. ANALYSIS OF OVERDRAFT AND TERM LENDING BY TRADING BANKS

Group11 March 198110 March 19829 March 198314 March 198413 March 1985

Source: Reserve Bank of New Zealand.

  1. Farming, forestry, hunting, and fishing—  $(million)  
    (a) Mainly dairy farming108.6154.0158.9193.5198.7
    (b) Mainly sheep farming168.1225.7219.6253.2233.9
    (c) Other farming190.1277.9295.8359.0394.6
    (d) Farm services45.349.849.863.576.0
    (e) Forestry, hunting, and fishing38.359.554.563.094.3
              Subtotal550.4766.9778.6932.2997.4
  2. Mining and quarrying9.126.718.328.024.6
  3. Manufacturing—
    (a) Dairy companies, factories, etc.51.460.524.695.8117.4
    (b) Freezing works, meat companies, etc.402.2402.2366.5347.5401.4
    (c) Other food, beverages, and tobacco115.0159.3142.8166.3220.0
    (d) Textiles, footwear, and clothing85.299.7110.4129.1180.1
    (e) Pulp and paper and paper products56.891.686.389.492.9
    (f) Metal products, machinery, and engineering211.9246.9266.6254.3368.7
    (g) Transport equipment88.690.676.591.9155.3
    (h) Other manufacturing275.1325.8373.1417.6576.8
              Subtotal1,286.01,476.51,446.71,592.02,112.7
  4. Construction167.2191.9174.8197.1273.3
  5. Electricity, gas, water, and sanitary services22.827.717.128.530.4
  6. Transport, storage, and communication133.5160.0205.1215.7252.0
  7. Commerce, trade, and finance—
    (a) Wholesalers, mainly importers195.3200.6204.7207.8318.2
    (b) Wholesalers, other80.3109.8116.4123.6154.1
    (c) Retailers225.8306.8304.1359.2483.2
    (d) Woolbuyers159.3174.1150.7218.5229.7
    (e) Stock and station agents87.0119.797.589.7117.1
    (f) Finance companies (mainly merchant banks/stand-bys)22.335.120.929.947.6
    (g) Other financial institutions105.0136.4117.0163.9445.7
              Subtotal875.01,082.51,011.31,192.61,179.5
  8. Local bodies, n.e.i.13.812.614.012.417.6
  9. Services286.4408.3464.2565.8708.0
10. Personal—
    (a) For housing purposes400.7596.1697.8881.71.000.4
    (b) Other496.8675.3660.5839.91,110.2
              Subtotal897.51,271.41,358.31,721.62,110.6
              Total4,241.55,424.55,488.56,486.08,322.2

Table 26.8. TRADING BANK CREDIT AUTHORITIES

YearUnexercised Overdraft and Term Loan AuthoritiesTotal Credit LimitsUtilisation of Credit Limits

Source: Reserve Bank of New Zealand.

 $(m)$(m)%
 Average for Calendar Year
19811,858.26,607.771.9
19822,062.8x7,856.0x73.7x
19832,714.1x8,627.8x63.6x
19843,069.510,005.069.3
 At End of June
19811,860.16.456.171.2
19821,979.4x7,858.8x74.8x
19832,564.4x8.422.1x69.6x
19842,625.09,675.772.9
19853,249.912,072.973.1

Savings banks

Savings banks include the Post Office Savings Bank, the trustee savings banks, and the savings banks operated by the trading banks. In recent decades there have been major changes in savings bank operations. Following an amendment to the Trustee Savings Bank Act passed in 1957, the 5 trustee savings banks that had survived from the middle of the last century were joined by 8 new trustee savings banks between 1959 and 1964. In 1972, 2 of these banks merged and there are now 12 trustee savings banks. Another major change was the formation of private savings banks by the 5 trading banks, following the passing of the Private Savings Bank Act in 1964. There are now 4 trading banks following the amalgamation in October 1982 of the Bank of flew South Wales and the Commercial Bank to form the Westpac Banking Corporation.

As from April 1973 trustee savings banks and the Post Office Savings Bank have been able to advance personal loans. In March 1973 the responsibilities for the administration of the trustee savings banks and the private savings banks was transferred from the Treasury to the Reserve Bank. Trustee savings banks and the Post Office Savings Bank have been allowed to offer cheque facilities since 1974.

Table 26.9 shows the total amounts of transactions in savings bank accounts, including accounts in the Post Office Savings Bank, trustee savings banks, private savings banks. National Savings accounts, and school savings bank accounts, but excluding National Savings bonds.

Table 26.9. SAVINGS BANKS TRANSACTIONS

YearEnded 31 MarchTotal Amount of DepositsInterestAmount of Withdrawals*Excess of Deposits Plus Interest Over WithdrawalsTotal Amount to Credit of Depositors at End of March

* Includes interest paid out on investment accounts.

   $(million)  
198112,819.5257.312,535.9540.94,792.6
198217,251.6309.617,074.5486.75,279.3
198319,195.8360.919,257.6299.15,578.4
198420,723.7416.020,535.8604.06,182.6
198522,873.5453.222,811.5515.26,701.9

Post Office Savings Bank. The business of the Post Office Savings Bank (POSB) started in 1867, when branches were established at Auckland, Wellington, Christchurch, Dunedin and Hokitika. At 31 March 1985, banking facilities were available through 912 offices and 357 agencies, of which 430 have on-line teller terminals for account transactions.

Total savings with the Post Office Savings Bank stood at $2,626.5 million at 31 March 1985, $229.4 million higher than at 31 March 1984.

Net holdings in Bonus Bonds have continued to grow and at 31 March 1985, savings held in this way totalled $486.1 million. During the 1984-85 financial year, prizes to the value of $36.1 million were distributed to prize-winning bondholders.

In May 1983 automatic transaction machines were made available for use by cheque account holders. The ATM service was extended mid-1984 to Bankcard holders and again, in January 1985 the service was extended to selected holders of passbook accounts. By December 1985 the “Access” network consisted of 96 ATM's including 26 inside POSB offices.

On 1 August 1983, first mortgages were introduced for those depositors who held matured POSB Home Ownership accounts.

The service was extended to all customers from August 1984.

During the 1984-85 financial year $205.9 million was advanced as housing loans. The amount outstanding as at 31 March 1985 was $469.3 million.

Personal loans advanced to depositors (apart from loans for housing purposes) during the 1984-85 financial year totalled $12.1 million. The amount of principal outstanding for personal loans and Bankcard as at 31 March 1985 was $53.1 million.

Table 26.10. ACTIVITIES OF THE POST OFFICE SAVINGS BANK

Year Ended 31 MarchNumber of Accounts at End of March*Total Amount of DepositsInterestTotal Amount of WithdrawalsExcess of Deposits, Plus Interest, Over WithdrawalsTotal Amount of Credit to Depositors at End of March

*Includes Ordinary National Savings and School Saving Accounts.

†Includes interest paid on investment accounts.

‡Excludes National Savings Bonds and coupons.

Source: Post Office.

 (000)  $(thousand)  
19813,1043,217,81975,2763,161,843131,2521,834,116
19823,1784,066,24285,9244,031,067121,0991,955,215
19833,2814,979,84793,7214,926,410147,1582,102,373
19843,3215,829,910109,6055,645,033294,4832,396,856
19853,3426,623,304123,9326,517,840229,3962,626,252

Table 26.11. TREND STATEMENT OF THE POST OFFICE SAVINGS BANK

 1984-851983-841982-831981-821980-81

*Adjusted to include Bankcard.

Source: Post Office.

Depositors' balances2,626.52,397.12,102.61,955.41,834.3
Government stock holdings2,061.52,019.41,817.01,682.01,652.0
Housing loans advanced No. (000):14.56.73.010.510.4
Value $M205.9131.631.4107.087.1
Housing loans outstanding $M469.3306.0208.3205.9122.2
Total loans outstanding $M522.4346.1*230.2239.5165.6
Total revenue $M301.5258.7226.1187.7157.2
Management expenses $M130.3111.4101.380.861.2
Interest expenses $M126.5112.096.988.580.0

Table 25.12. POST OFFICE SAVINGS BANK DEPOSITORS' AND BONDHOLDERS' BALANCES AT 31 MARCH*

Accounts19841985

*Ail depositors' balances are guaranteed by the Government.

Source: Post Office.

 $(000)$(000)
Current1,073,2991,009,577
Time764,987915,931
Cheque76,92395,857
Bonus Bonds431,732486,078
Other Bonds and Certificates49,229117,528
Balances in Transit8871,481
                 Total2,397,0572,626,452

Private savings banks. The Private Savings Bank Act 1964 came into force on 1 October 1964. Under this Act the trading banks all formed private savings banks. These banks may transact business only in premises ordinarily occupied and used by the parent bank. In addition to ordinary deposits, these banks may accept investments similar to the trustee savings banks, by way of deposits in Home Lay-by, Investment accounts, Thrift Club, and Special purpose accounts.

Table 26.13. PRIVATE SAVINGS BANKS

Year Ended 31 MarchNumber of Accounts at End of YearTotal Amount of Deposits During YearInterest CreditedTotal Amount of Withdrawals During YearExcess of Deposits Plus Interest Over WithdrawalsTotal Amount to Credit of Depositors at End of Year
 (000)  $(thousand)  
19811,5202,622.49678.8582,621,52679,8281,028,348
19821,5173,446,31574,0003,491,68928,6261,056,974
19831,4243,450,16476,6453,696,594-169,785887,189
19841,0702,943,15971,1043.131,762-117,499769,690
19859721,439,32748,0311,612,392-125,034644,656

Private savings banks' assets at 31 March 1985 included $300.1 million invested in Government securities, $2.4 million in local authority securities, and $408.6 million in mortgages and other loans. The requirement to hold Government securities for amounts equal to 54 percent of deposits in ordinary and investment accounts was abolished by Government in February 1985.

Trustee savings banks. The first trustee savings bank in New Zealand was established in Wellington in 1846. By 1870, 9 trustee banks were in existence but 4 did not survive. The 5 remaining banks, Auckland (1847), New Plymouth (1850), Dunedin (1864), Southland (1864), and Hokitika (1866), grew in strength and their activities became an important factor in New Zealand's economic structure. Since 1957 a number of new trustee savings banks have been established, and the total is now 12. The legislation dealing with trustee savings banks is contained chiefly in the Trustee Savings Banks Act 1948. in February 1985 the requirement of the Trustee Savings Bank to hold 38 percent of Government stock total deposits was abolished. At the same time the proportion of depositors balances to be kept as cash in hand or a current account of 5 percent up to $20 million and 2봒 percent of the amount in excess of $20 million was also abolished.

In addition to ordinary deposits, trustee savings banks may accept investments similarly to the Post Office Savings Bank, by way of deposits in investment accounts.

Table 26.14. TRUSTEE SAVINGS BANKS

Year Ended 31 MarchNumber of Accounts at End of YearTotal Amount of Deposits During YearInterest CreditedTotal Amount of Withdrawals During YearExcess of Deposits Plus Interest Over WithdrawalsTotal Amount to Credit of Depositors at End of Year
 (000)  $(thousand)  
19812,6646,979,186103,7786,753,179329,7851,930,109
19822,8569,739,069150,1829,552,450336,8012,266,910
19833,06710,813,699190,10010,681,856321,9432,588,853
19843,18911,997,778233,67611,804,457426,9973,015,850
19853,34414,915,714,283,05814,783,813414,9593,430,806

Table 26.15. TRUSTEE SAVINGS BANKS TRANSACTIONS 1984-85

BankNumber of Accounts at End of YearTotal Amount of Deposits During YearInterest CreditedTotal Amount of Withdrawals During YearExcess of Deposits Plus Interest Over WithdrawalsTotal Amount to Credit of Depositors at End of Year
 No.  $(thousand)  
Auckland1 198 0254,119,62991,4784,090,979120,1281,149,385
Waikato272,5221,967,73532,8271,956,03344,529283,662
Bay of Plenty157,2021,363,97413,1721,353,60023,546182,502
Taranaki141,8641,101,32813,1661,093,10721,387177,881
Eastern and Central197,622698,33514,352682,16330,524194,016
Wanganui80,294340,1217,095337,10410,11283,724
Wellington District152,092717,6449,080710,05916,665117,587
Westland38,838162,8773,693162,2774,29345,552
Canterbury669,8542,441,38453,7002,429,39765,687651,434
South Canterbury73,840308,4815,119305,1318,46968,869
Otago211,528874,29719,195854,23339,259239,867
Southland149,925819,90920,178809,73030,357236,324
                 Total3 343 60614,915,714283,05814,783,813414,9593,430,806

Tables 26.14—15 include National Savings Accounts.

Table 26.16 shows a summary of trustee savings banks' assets at 31 March 1985. The total assets include an amount of $45,000 securing National Savings deposits, all of which is invested in New Zealand Government securities. Under the Trustee Savings Banks Act, however, National Savings deposits are not regarded as assets of the Trustee Savings Banks, and for this reason are shown separately.

Table 26.16. SUMMARY OF TRUSTEE SAVINGS BANK ASSETS

BankMortgagesNew Zealand Government SecuritiesLocal Authority DebenturesCash in Hand and on Call at BankTotal Assets* (Includes Other Assets but not National Savings Deposits)National Savings DepositsTotal Held Including National Savings Deposits

*Total assets include $109 million in fixed deposits.

    $(thousand)   
Auckland534,020457,2324,369104,8671,191,993151,192,008
Waikato118,135109,23743243,252301,249-301,249
Bay of Plenty84,94867,584198-397181,914-181,914
Taranaki84,68366,0981593,135181,181-181,181
Eastern and Central96,20075,0944553,771199,928-199,928
Wanganui37,63328,280133,25484,032-84,032
Wellington District63,86042,067204,723123,429-123,429
Westland8,66117,8321641,66235,716-35,716
Canterbury292,462262,6508,26616,045642,171-642,171
South Canterbury32,42027,5662957,44773,525-73,525
Otago112,01395,91339215,511253,55630253,586
Southland101,694.102,1164,59116,530248,366-248,366
                 Total1,566,7291,351,66919,354219,8003,517,060453,517,105

Other banking institutions

Development Finance Corporation of New Zealand (DFC). The corporation is a New Zealand owned commercial enterprise providing financial and advisory services to businesses which contribute to the growth and development of New Zealand's economy. DFC's share capital is owned by the New Zealand government and vested in the Minister of Trade and Industry. DFC's directors are appointed by the Minister and comprise both leading business people and government representatives. The corporation is self-funding, raising its funds in the same way as other financiers—from the local and international markets.

DFC's statutory role is that of a development bank and as such provides medium to long-term commercial finance and advisory services to manufacturing industries but with an increasing emphasis on tourism, energy, horticulture, land diversification and other expanding sectors. Emphasis is given to projects which have potential for foreign exchange earning and employment creation.

Other forms of assistance include regional development loans, equity finance, hire purchase and leasing, underwriting, contract bonding, foreign exchange and money market dealing, and futures trading. Corporate finance activities include the packaging and managing of larger scale facilities such as syndicated loans.

A key objective of DFC's business lending operation is to improve the viability and efficiency of New Zealand's productive capacity. This may include replacing or upgrading obsolescent plant and facilities, assisting the rationalisation of industries, supporting export development and growth, or aiding import substitution. However, this list is not exclusive and it should be noted that DFC lends for a variety of commercial projects. DFC has recently introduced a range of personal financial management services for individuals who want to manage their cash flow for greatest flexibility and competitive returns.

Assistance for small businesses is provided by the Small Business Agency. It operates as a division of DFC, providing a combination of financing and advisory services to encourage the development of an efficient and innovative small business sector. It also offers a loan guarantee scheme to other institutions for small businesses.

DFC Ventures offers a full range of equity finance and venture capital assistance. This division administers the Applied Technology Programme, which provides grant and loan finance to help in the very early phases of new product and process developments. It also assists with international licensing and other technology transfers, and the commercialisation of new technology.

A Trade Finance Services division was established in October 1985 to provide financial and advisory trade services for exporters and importers. DFC's investment banking subsidiary specialises in financial structuring and risk management, and represents DFC in the foreign exchange and futures markets. DFC has also received approval to establish a merchant bank in Australia.

Stock and station agents. Many of the existing stock and station agents first commenced business as general merchants or retailers in the early days of the country's settlement. However, during the greater part of their history, the main financial operations have been in the supply of merchandise, machinery and implements, and the provision of finance to the farming community. The companies have developed a specialised banking business involving the maintenance of current accounts for farmers, the acceptance of time deposits, and the granting of secured and unsecured advances. It is a widespread practice for farmers to have current accounts with their stock and station agents to which the proceeds of the sale of livestock and produce are placed and farm and personal expenses charged. Any surplus may be left on current account or placed with the agents on fixed deposit. Stock and station agents have top-tier borrowing priority with the trading banks in order to obtain additional funds to lend for seasonal and farming development needs.

Financial data as at 30 June are given for the stock and station agents operating in New Zealand. The statistics refer to the whole of the companies' trading operations including, in some cases, activities additional to normal stock and station transactions, such as retail trading in consumer goods.

The deposit figures include only moneys received for an agreed term and rate of interest and exclude amounts secured by mortgage or debenture, and amounts in credit on current account. Secured advances to customers include those made on mortgage or chattel security. The figure for merchandise and commodity stocks includes all types of trading stock which are regarded as current assets, but excludes livestock, goods held on consignment, or motor vehicles used by the company.

Table 26.17. FINANCIAL STATEMENTS OF STOCK AND STATION AGENTS

ItemAt 30 June
19811982198319841985

* Included in “other investments”.

 $(thousand)
Deposits held72,03981,84599,080114,935118,033
Customers' credit balances on current account86,06695,966104,978101,675104,966
Advances to customers—
  (a) On current account (unsecured)183,930188,473185,058234,117184,437
  (b) Other advances (secured)65,14066,37966,19685,200122,777
Investments—
  (a) Government securities1,2231,1528892,8534,258
  (b) Fixed deposits*****
  (c) Other investments36,27515,60327,68226,32514,200
Cash balances (in hand and at bank)9,1871,5285,14718,75420,910
Bank overdrafts outstanding68,72384,32969,593107,742110,901
Merchandise and commodity stocks133,503155,370141,646154,478163,811
Interest rates paid on deposit— Percentage of Deposits 
Under 9 percent12.310.36.211.42.0
9 percent and under 10 percent8.54.35.218.74.4
10 percent and under 11 percent12.34.72.622.22.4
11 percent and under 12 percent9.66.514.821.12.1
12 percent and under 13 percent30.124.511.116.111.6
13 percent and under 14 percent21.025.918.54.06.9
14 percent and under 15 percent4.613.214.41.59.9
15 percent and under 16 percent1.58.020.83.213.0
16 percent and over0.12.66.41.847.7

Finance companies. The environment in which finance companies operate underwent further major changes in 1985. Following the removal of all interest rate controls in the second half of 1984, the process of deregulation continued in 1985 with the abolition of compulsory investment requirements applied to financial institutions, the floating of the New Zealand dollar and the announcement of plans for a significant easing of barriers to entry into the business of banking. There have been a number of institutional developments in the finance company area in the recent past—mergers, acquisitions, formation of new companies, etc.—and in the deregulated environment such changes seem likely to continue.

Although finance companies have faced increasing competition from trading banks, savings banks and other financial institutions for deposits over the last few years, total deposits (including debentures and notes) of “large” finance companies have continued to grow steadily, increasing by 23.1 percent during the year ended 30 September 1985, to reach a total of $4,370 million.

Net loans and advances, including leasing and factoring, rose by 31.6 percent in the year to September 1985, which is up on the increase for the year to September 1984 (26.2 percent).

Interest rates on secured deposits have been as high as 23 percent during 1985 as compared to the highest rate of 17.5 percent offered in 1984 after the removal of interest rate controls.

Table 26.18. DEPOSITS, DEBENTURES AND NOTES HELD BY FINANCE COMPANIES*

TermAs at 31 March
19811982198319841985

* Statistics are for large companies so designated by the Reserve Bank and owing to changes in coverage, annual figures are not directly comparable.

 $(million)
At call102.31590355.7510.3595.5
Under 3 months205.9269.9377.1508.6649.4
3-5 months158.7230.9428.3394.6449.1
6-11 months289.3298.9423.3614.4629.5
12-23 months369.6378.4432.0637.5936.0
2 years and over233.3448.5420.7505.6596.2
        Total1,359.11,785.62,437.13,171.03,855.7

Table 26.19. ADVANCES BY FINANCE COMPANIES*

Sectoral Analysis19841985

*Gross loans and advances by large finance companies outstanding at 31 March.

†Includes advances to dairy and meat processing companies.

Source: Reserve Bank of New Zealand.

Agricultural—$(million)
    Farming/fishing216.0235.7
    Forestry34.036.2
              Subtotal250.0271.9
Industrial—
    Manufacturing193.4296.1
    Heavy construction, engineering, mining, and quarrying129.9155.8
    Residential construction, property development198.0230.2
              Subtotal521.3682.1
Distribution /Transport—
    Transport, storage356.7428.7
    Motorcars—retail, H.P.512.4775.7
    Motorcars—wholesale,   floor-plan112.0139.9
              Subtotal981.11,344.3
Mercantile—$(million) 
    Wholesalers, importers52.269.5
    Exporters16.326.1
    Retailers222.1279,3
              Subtotal290.6374.9
Service industries n.e.i.290.4367.5
Personal—
    Housing—  
    New houses and flats120.382.4
    Existing houses and flats164.3222.0
    Other personal423.0438.9
              Subtotal707.6743.3
    Other, n.e.i.50.2155.0
              Total3,091.23,939.0

Merchant banks. The major expansion of merchant banking in New Zealand occurred in 1971, when the Government allowed overseas companies to participate in their establishment. The merchant banks offer a wide range of financial services to industrial clients and also manage investment portfolios and deal in and accept commercial bills. The merchant banks engage in underwriting new share issues by companies, advise on and finance mergers and takeovers, and lend money for expansion to growing companies. The merchant banks played an important role in the expansion of the commercial bill market.

Structure of financial system

The changing structure of the New Zealand financial system is shown by movements in the institutional breakdown of the broad money supply (M3).

Table 26.20. FINANCIAL INSTITUTIONS AND BROAD MONEY SUPPLY

Deposits etc.At 31 MarchPercentage at 31 March
198319841985198319841985

*Official money market dealers were removed from the group of M3 institutions in August 1984 following the elimination of their special regulatory status.

Source: Reserve Bank of New Zealand.

 $(million)percent
Trading banks7,114.57,562.48,944.544.242.2433
Private savings banks887.1769.7644.75.54.33.1
          Subtotal8,001.68,332.19,589.249.746.546.4
Post Office Savings Bank2,102.62,397.02,622.413.113.412.7
Trustee savings banks2,588.83,015.83,430.716.116.816.6
Stock and station agents177.0173.4193.91.11.00.9
Finance companies2,546.63,307.64,091.815.818.419.8
Official money market*40.857.8-0.30.3-
Notes and coins649.8651.6717.64.03.63.5
              M316,107.217,935.320,645.6100.0100.0100.0

Census of Services (Finance) 1982-83

The first economic Census of Services (Finance) formed part of the first series of integrated economic censuses of business activities in New Zealand being carried out by the Department of Statistics over a five-year period. The census covered the activities of all business classified into Division 81 of the New Zealand Standard Industrial Classification. A summary of the results is given below according to the various industrial classifications.

Table 26.21. GENERAL STATISTICS: FINANCE INDUSTRIES, 1982-83

Census Coverage  Numbers
    Enterprise Groups in Division 81  991
    Enterprises within those Enterprise Groups  1,461
    Location Units—Activity Units (e.g. offices, etc.)  3,029
    —Ancillary Activity Units  34
    Persons Engaged within those Activity Units —full-time  31,821
      —part-time  3,771
Fixed Tangible Assets  $(000)
    Purchases during the accounting year  104,800
    Sales during the accounting year  25,337
    Book Value at the end of the accounting year  574,819
Census Values in Accounting Terms
    Income— 
    Interest  3,347,670x 
    Dividends  138,837 
    Renting and leasing  33,254 
    Commissions and brokerage  159,933 
    Foreign exchange trading revenue  183,241 
    Management fees  102,030 
    Subsidies  4,516 
    Donations, royalties, etc.  3,983 
    Other Income  126,007 
               Total Income  4,099,471 
   $(000) 
Expenditure— 
    Salaries and wages  491,875 
    Commissions  1,933 
    Employer contributions  47,642 
    Interest  2,349,997 
    Insurance  3,731 
    Depreciation  39,396 
    Indirect taxes  7,793 
    Bad debts, royalties etc.  33,405 
    Management fees  100,657 
    Other operating expenses  378,477 
               Total Expenditure  3,454,907 
Net Profit-   
    Total income, less total expenditure  644,565 
    LESS Salaries and wages paid to working proprietors/partners  4,289 
    PLUS Net gain in extraordinary items  29,574 
               Net Profit before Taxation  669,850 
Extraordinary Items—GainsLossesNet 
    Exchange transactions59,3344,24855,086 
    Revaluation of financial and fixed assets14,89962,274-47,375 
    Sales of financial and fixed assets30,0298,16621,863 
               Totals104,26274,68729,574 
Census Values In Economic Terms 
    Operating Surplus— 
    Total Income  4,099,471 
    Less Donations, royalties, etc.  3,983 
   4,095,488 
    Total expenditure  3,454,907 
Less Bad debts, royalties, etc.  33,405 
    LESS  3,421,502 
        Operating Surplus  673,987 
    Value Added— 
    Operating Surplus  673,987 
    Salaries and Wages  491,875 
    Employer contributions  47,642 
    Depreciation  39,396 
    Indirect taxes  7,793 
   1,260,692 
Less Subsidies  4,516 
   1,256,176 

Table 26.22. INDUSTRY STATISTICS: FINANCE INDUSTRIES. 1982-83: ENTERPRISES & EMPLOYMENT

 Group Enterprises*EnterprisesActivity UnitsAncillary Activity UnitsPersons Engaged
Working ProprietorsPaid Employees
Full-timePart-timeFull-timePart-time

*A single group enterprise may operate in more than one industry.

†The “savings bank” activity of the N.Z. Post Office has been treated as ONE activity unit based at Wellington.

  Number  
Banking
Central Banking113---6707
Trading Banking667843--14,9861,362
Savings Banking181832616--7,583646
Financing, other than Banking
Building Society Operation33341812--1,050125
Credit Union Operation15252252---58211
Co-operative Savings Association Operation888---345100
Commercial Bill Dealing141673---80349
Official Short-term Money Market Dealing447----1
Franchise and Royalty Operation313131-711158
Other Financing, n.e.c.7008331,016111116634,486326
Investing
Trustee Operation67932--1,10359
Holder-investing n.e.c.118141141--391538
Services to Financing and Investing
Sharebroking and Dealing565656-1351532056
Mortgage and Finance Broking131414-52136
Other Services to Financing and
    Investing n.e.c.364044-151210135
               Total—Finance99114613 0293427374231 5483 029

Table 26.23. INDUSTRY STATISTICS: FINANCE INDUSTRIES, 1982-83: INCOME

 Income
Interest and DividendsCommissions and BrokerageOther IncomeTotal Income

* Figures combined to preserve confidentiality.

Banking$(thousand)
Central Banking1,235,51297,902265,7801,599,194
Trading Banking*
Savings Banking666,9084,7519,372681,031
Financing other than Banking
Building Society Operation158,4752,7876,178167,440
Credit Union Operation5,012-4215,433
Co-operative Savings Association Operation12,339356,12918,504
Commercial Bill Dealing*289,44612,42530,670332,543
Official Short-term Money Market Dealing
Franchise and Royalty Operation1,189164,5555,759
Other Financing, n.e.c.1,028,2778,89891,5961,128,771
Investing
Trustee Operation5,3896,29720,04831,733
Holder-investing n.e.c.69,478721,06670,616
Services to Financing and Investing
Sharebroking and Dealing62321,6331,98624,242
Mortgage and Finance Broking1141,3884181,920
Other Services to Financing and Investing n.e.c.13,7443,72514,81732,286
               Total—Finance3,486,507159,933453,0324,099,471

Table 26.24. INDUSTRY STATISTICS: FINANCE INDUSTRIES, 1982-83: EXPENDITURE

 ExpenditureNet ProfitCapital Expenditure Less Disposals
Salaries and WagesInterestOther ExpenditureTotal Expenditure

* Figures combined to preserve confidentiality.

†Suppressed to avoid disclosure of confidential information.

 $(thousand)
Banking
Central Banking231,994903,420241,5511,376,965222,22833,434
Trading Banking*
Savings Banking118,159398,875113,188630,22350,80923,204
Financing other than Banking
Building Society Operation17,94627,81931,00776,77290,6696,430
Credit Union Operation1,2302821,8313,3432,09078
Co-operative Savings Association Operation4,9128,5645,71819,194-691
Commercial Bill Dealing*      
Official Short-term Money Market Dealing15,726246,74931,621294,09438,4483,116
Franchise and Royalty Operation2442502,1852,6803,0793,153
Other Financing, n.e.c.73,210743,741158,183975,134153,6377,958
Investing      
Trustee Operation20,1303569,27829,7641,9691,312
Holder-investing n.e.c.4001,3851,7103,49567,122274
Services to Financing and Investing      
Sharebroking and Dealing5.4748197,48213,77510,466575
Mortgage and Finance Broking235921,5091,83684
Other Services to Financing and Investing n.e.c.2,21517,6467,77127,6324,6543,701
             Total—Finance491,8752,349,997613,0343,454,907644,56579,463

26.2 Monetary policy

Money and credit aggregates

The money supply and claims of monetary institutions by sector as at 31 March of each of the latest 4 years are shown in Tables 26.25 and 26.26. Table 26.25, showing the money supply, sets out the deposit liabilities of the major financial institutions accepting deposits from the public. Institutions included in the table are the trading banks, the Reserve Bank (currency in circulation), the private and trustee savings banks, the Post Office Savings Bank, finance companies, stock and station agents, and the official money market dealers. Table 26.26, showing the claims of monetary institutions by sector, deals with the asset side of those institutions' balance sheets. The domestic breakdown of assets is according to investments with the Government (predominantly holdings of Government securities), and with the private sector (including local authority securities, loans, etc.), plus the Reserve Bank's net advances to the marketing and stabilisation sector. The sum of these 3 classifications provides a “domestic credit” aggregate which, when adjusted for institutions' net overseas assets and a residual item, can be reconciled to the broad money supply (M3) aggregate.

Over the last 4 years the annual growth rate of the broad money supply (M3) has fluctuated around an average of 13.9 percent. In response to large net monetary injections resulting from low levels of government debt sale and easier credit conditions from the second half of 1983, annual M3 growth increased from a low of 7.0 percent in May 1983 to a peak of 16.7 percent in May 1984. Foreign exchange outflows prior to the July 1984 devaluation led to a sharp reduction in M3 growth to 14.0 percent in July. However, following the devaluation there were large foreign exchange inflows and M3 growth increased to 18.5 percent in December 1984 despite a substantial increase in the public debt programme.

A decline in M3 was recorded over the March 1985 quarter as the direction of net foreign exchange flows turned around again prior to the float of the New Zealand dollar on 4 March 1985. M3 rose strongly again over the June quarter, peaking at an annual rate of 23.4 percent in July 1985, before declining gradually over the latter half of the year. Despite an active public debt programme throughout 1985, annual rates of M3 growth remained relatively high. However, this strong growth was in part a reflection of the recent deregulation of the financial sector, which resulted in an increase in the deposit growth of M3 institutions (which were previously most heavily controlled by regulation).

Growth in the narrow money aggregate, M1, was also affected by the effects of financial sector deregulation and innovation. In particular, the relative Importance of currency and non-interest bearing cheque account deposits fell, partly in response to the more attractive rates of interest being paid on time deposits, and also as a result of growth in interest-bearing demand deposits not covered by the M1 series. For this reason, Ml growth was significantly lower than M3 growth throughout 1985.

A pick up in economic activity in the latter part of 1983 together with lower interest rates led to an increase in the demand for credit. As a result, private sector credit (PSC) growth increased steadily from a low of 2.6 percent in August 1983 to 20.0 percent in June 1984. Credit growth remained strong throughout 1984 and most of 1985, before showing signs of easing over the latter part of 1985. Over the year to December PSC growth was 21.1 percent.

The growth in all the major aggregates was somewhat distorted over this period due to the effects of deregulation and innovation. This had the effect of reducing the usefulness of the aggregates as indicators of monetary conditions.

Table 26.25. MONEY SUPPLY

Selected Monetary AggregatesAs at 31 March
1982198319841985

* Notes and coin on issue from Reserve Bank minus till money of trading banks.

†Net of deposits of included institutions with each other.

‡The official money market dealers were removed from the group of M3 institutions in August 1984 following the elimination of their special regulatory status.

Source: Reserve Bank of New Zealand.

 $(million)
Currency and cheque account deposits—
    Notes and coins*592.6649.8651.6717.6
    Cheque accounts—trading banks2,189.32,234.92,420.12,387.3
    —savings banks96.3117.3179.1232.9
               M12,878.23,002.03,250.83,337.8
    Annual rate of increase17.4%4.3%8.3%2.7%
Demand deposits
    Private savings banks551.1445.8372.5265.6
    Trustee savings banks868.2777.1669.4541.1
    POSB1,065.41,014.3984.4897.5
    Stock and station agents85.591.884.0107.8
    Finance companies256.9366.6543.1506.9
    Money market*58.235.150.5-
                 Total2,885.32,730.72,703.92.318.9
(Ml plus other demand deposits): (M2)5.763.55,732.75,954.75,656.7
Annual rate of increase12.5%-0.5%3.9%-5.0%
All other deposits—
    Trading banks4,104.84,879.65,208.36,557.2
    Private savings banks505.9441.3397.2379.1
    Trustee savings banks1,327.81,725.82,206.32,711.3
    POSB864.51,056.91,373.61,670.3
    Stock and station agents68.385.289.486.1
    Finance companies1,762.72,180.02,764.53,584.9
    Money market5.45.77.3-
                 Total8,689.410,374.512,046.414,988.9
(M2 plus Time and Fixed Deposits): (M3)14,402.916,107.218,001.320,645.6
Annual rate of increase16.8%11.8%11.8%15.1%

Table 26.26. CLAIMS OF MONETARY INSTITUTIONS BY SECTOR

SectorAs at 31 March
1982198319841985

Source: Reserve Bank of New Zealand.

 $(million) (annual % changes in parentheses)
Government4,849.8(10.8)5,440.4(12.2)6,429.8(18.2)6,076.5(-5.5)
Marketing and stabilisation704.8(17.4)1,245.0(76.6)1,005.7(-19.2)1,128.6(12.2)
Private sector10,344.3(30.0)10,764.2(4.1)12,433.9(15.5)15,111.8(21.5)
Domestic credit15,898.9(22.9)17,449.6(9.8)19,869.4(13.9)22,316.9(12.3)
Overseas-864.3 -622.8 -980.7 -449.5 
Residual-631.7 -719.6 -887.4 -1,221.8 
                 Total14,402.9(16.8)16,107.2(11.8)18,001.3(11.8)20,645.6(14.7)

Recent monetary conditions and policy

The period since the mid-1970s has been characterised by several periods of rapid monetary expansion. Consequently emphasis has been placed in recent times on developing a more active and flexible Government debt policy, both to offset fluctuations in the money supply and credit, and to finance the Government deficit in a non-inflationary manner. For the period late 1981 to mid-1984 this emphasis was tempered by the Government's concern to minimise upward pressures on interest rates. However, the second half of 1984 saw a return to a more market-oriented approach, accompanied by some of the most dramatic reforms in the history of the New Zealand financial system.

Policy developments prior to July 1984. The Government adopted a more aggressive public debt policy early in 1983 in response to an easing in monetary conditions. Although it was initially successful, liquidity conditions eased again and monetary growth resumed following the withdrawal of the first Kiwi Savings Stock issue in June 1983. During this period, a significant change in public debt policy occurred. The tap system for selling ordinary government stock was replaced by a tendering system from September. However, the success of the stock tenders as an instrument of monetary control was limited by an unwillingness on the part of the Government to accept sufficiently high yields to sell all of the stock offered. The effectiveness of retail debt policy was also limited by interest rate concerns.

In the absence of an active public debt policy, the Government introduced a lending guideline in 1983 to restrict credit growth. From September the rate of lending growth of the major institutions generally exceeded the guideline. The Government reacted by warning institutions to reduce lending growth, increasing ratio requirements, and raising the trading banks' penal borrowing rate for reserve asset purposes.

Controls on lending interest rates were also strengthened over this period. Regulations, backdated to November 1983, controlled the maximum rate of interest charged on mortgages and limited mortgage rate increases. Other lending interest rates remained subject to the Financial Services Regulations 1982, which limited interest rates to the levels current in June 1982. Further controls on lending interest rates were imposed in May 1984, and on 11 June, Interest on Deposit Regulations also specified the maximum rates payable on deposits.

Policy developments since July 1984. On 18 July 1984 a 20 percent devaluation of the New Zealand dollar was announced and the foreign exchange market re-opened after a 3-day closure. Accompanying the devaluation was the removal of a range of interest rate controls which had been introduced by the previous administration.

Over the remainder of 1984 and 1985, a number of other monetary policy measures were implemented, which generally reinforced the move away from direct controls in favour of a more generalised public debt policy as the main instrument of monetary control. These are described below.

Interest rate controls. In addition to the removal of a number of interest rate regulations which accompanied the devaluation of 18 July 1984, 2 further longstanding interest rate controls were subsequently removed on 30 August 1984. These were the Reserve Bank directive preventing trading banks from paying interest on cheque account balances or on deposits for terms of less than 30 days (30 day rule) and the limit of 3 percent on interest paid by savings banks on ordinary accounts. This effectively removed all Government controls over domestic interest rates.

Credit growth guidelines. On 31 August 1984 the 1 percent per month credit guideline was abolished. With the move towards a more active public debt programme as the principal tool of monetary policy, there was no longer a need for restrictions which concentrated on developments within particular institutional groups. The marginal ratio applied to finance companies' lending in excess of 1 percent per month had been removed on 18 July 1984.

Ratio policy. All compulsory ratios on financial institutions were abolished from 11 February 1985. Since June 1973, trading banks had been subject to a reserve assets ratio requirement (previously a cash ratio). The ratio was expressed as a percentage of total trading bank deposits and reserve assets consisting of trading banks' holdings of notes and coins, Government securities, and the time and demand balances of the trading banks at the Reserve Bank.

Public sector security ratios. Most other financial institutions had also been subject to Government- imposed ratio requirements specifying minimum required holdings of public sector securities. The public sector security ratios are set as a proportion of some major aggregate of the institution, generally total deposits or total lending. The ratios varied considerably between institutional groups. Further details on ratios and their operation, as they applied prior to February 1985, can be found in the 1984 Yearbook (pp. 780-782).

Exchange control. On 24 December 1984 exchange control regulations prohibiting the purchase of foreign currency by New Zealand residents for investment purposes were abolished. This major change of policy followed earlier announcements on overseas borrowing and investment policy. On 31 October the rules which limited private overseas borrowing to a fixed term of at least 12 months and to an interest rate not greater than 2 percentage points above the London or Singapore inter-bank rate were abolished, although specific currency exposure limits remained in force for financial institutions. On 21 November rules restricting the access to the New Zealand capital market of overseas-owned companies operating in New Zealand were revoked.

Exchange rate management. On 4 March 1985, the New Zealand dollar was floated. Under this arrangement the Reserve Bank's involvement in the foreign exchange market is limited to conducting minor market dealings in order to monitor market trends and developments, and to financing the Government's current account deficit. The Reserve Bank is no longer involved in setting the exchange rate or acting as a residual source of overseas or domestic currency (although the bank retains the option, not exercised to date, of entering the market in order to smooth exchange rate adjustments should excessive volatility occur). As a result, the foreign exchange market is no longer a source of liquidity for the private sector as a whole, since any individual wishing to exchange foreign currency for New Zealand dollars must find someone other than the Reserve Bank who wishes to purchase that currency.

Liquidity management. A number of policies designed to encourage more active portfolio management on the part of financial institutions were implemented during the last 6 months of 1984 and early 1985. Government security discount margins were doubled on 24 July 1984. This made it more expensive for the market to obtain liquidity by selling Government securities to the Reserve Bank. Further adjustments to discount policy included the opening of the Reserve Bank's discount window for Government securities and the granting of access to the bank's portfolio of Government securities with 6 months or less to maturity to all persons rather than just the settling banks. The discount window for Government securities with more than 6 months to maturity was subsequently closed on 24 December. In addition, since 1 January 1985 the 4 trading banks and the Post Office Savings Bank, which carry out the settlement process with the Reserve Bank, have been paid interest, initially set at 5 percent, on their demand deposit balances.

In a transitional move towards introducing a tender system for Treasury bills, the yield on 13 week bills was increased on 19 October 1984 to 13.5 percent per annum, while 26 week bills were reintroduced, after being closed on 6 September 1984, at a yield of 14 percent per annum. On 25 January 1985 the tap issue of Treasury bills was withdrawn and replaced with a weekly tender system, beginning on 29 January.

From 21 December 1984 the Reserve Bank has been more active in dealing in the market for short- term paper on a day-to-day basis in order to smooth out major fluctuations in liquidity. On 3 December 1985, a number of modifications to liquidity management were made in order to make its operation easier for the market to understand and interpret. It was announced that the maximum term to maturity of government securities eligible for discount with the Reserve Bank was to be reduced to 1 month from 1 April 1986. During the transition, no securities maturing after 30 April 1986 were to be discountable (subsequently changed to 15 May 1986), so that the maximum term to maturity of eligible securities was to be progressively reduced to 1 month. In addition, the interest rate payable on the demand deposits of the settling institutions held with the Reserve Bank was raised, initially to 65 percent of 7 day market rates. The Reserve Bank also indicated that it would be adopting a more active approach to liquidity management, in order to obtain greater stability in the level of liquid assets, and would allow a higher level of settlement cash in the system. These modifications did not involve any change in the overall stance of monetary policy.

Finally, the Compensatory Deposits Scheme which had operated in each March and September tax periods since 1978 was discontinued after the March 1985 tax period.

Retail debt policy. Retail debt policy has played a less active monetary policy role since mid-1984, the main instrument of monetary policy being wholesale debt sales through the stock tenders. The issue of Our New Zealand Bonds was closed on 2 November 1984, and on 8 November Inflation Adjusted Savings Bonds were withdrawn from the market. A new retail public debt issue was subsequently offered when the third issue of Kiwi Savings Stock opened on 26 November. The third issue became redeemable after 15 September 1985 on 7 working days' notice, although if redeemed prior to the maturity date the rate of interest payable fell from 16 percent per annum and 15.5 percent per annum on 2- and 4-year stock respectively, to 10 percent per annum. Unlike previous issues, the third issue was transferable with holders able to transfer all or part of their holdings before maturity.

On 22 February 1985 the third issue of Kiwi Savings Stock was closed and replaced with a fourth issue available from 28 February with an interest rate of 17 percent per annum for either a 2 or 4- year term. Similar provisions for early redemption applied as for the third issue.

On 5 July 1985 the fourth issue of Kiwi Savings Stock was closed. It was replaced with a fifth issue on 15 July 1985 which offered the same interest rate and similar provisions for early redemption. When the fifth issue of Kiwi Savings Stock closed on 4 November 1985, it was replaced with a new instrument called Kiwi Bonds. This carried similar terms and conditions to Kiwi Savings Stock, with the main difference being that the interest rate offered was to be adjusted more frequently in future and maintained at a level in line with, but slightly below, the yields on government stock of comparable maturities. The bonds become redeemable after 6 months, and if redeemed before maturity, the rate of interest paid is 6 percentage points lower than the rate at which they were issued. The first issue of Kiwi Bonds was opened on 25 November 1985, offering an interest rate of 18.5 percent for a 2-year term and 17.5 percent for a 4-year term.

Government stock tenders. The tendering of medium-term Government stock has become the main instrument of monetary policy since July 1984. This was directed initially at mopping up the surplus liquidity which resulted from large capital inflows following devaluation, and subsequently at financing the on-going liquidity injection from the public sector deficit. The liquidity management policy tools, including Treasury bill tendering and Open Market Operations are intended to support the stock tender programme by ensuring that short-term liquidity conditions are consistent with the medium-term monetary policy objectives.

Over the 6 months to December 1984 the Government held 7 tenders, raising a total of $2,372 million (nominal value). The yields accepted in the tenders rose steadily over this period. In the fifteenth tender, held on 13 December, the weighted average yields on successful bids were 17.3 percent for November 1987 stock, 17.0 percent for May 1990 stock, and 16.8 percent for October 1994 stock.

Over the year to December 1985 10 tenders were held, raising a total of $3,000 million. Yields accepted in the tenders fluctuated over quite a wide range during 1985. Yields on 5-and 10-year stock reached around 20.4 percent and 19.2 percent respectively in May, and similar levels again in October, before falling over the latter part of the year to 17.2 and 17.0 percent respectively.

Official short-term money market. On 31 August 1984 it was announced that the special status accorded to the 4 official short-term money market dealers would be withdrawn with effect from the end of September. This move involved, in particular, the removal of the lender of last resort facility which had been available to these institutions since their inception in 1962. The official money market was originally established at a time when facilities for placing call or short-term deposits were extremely limited. That situation had changed over the years and, particularly with the abolition of the 30-day rule, the special status given to these dealers was no longer necessary for the continued development of the short-term money market.

Authorisation for new banks. The Minister of Finance announced on 11 November 1985 that the Government was intending to allow more existing institutions to call themselves “banks” in the near future. Pending the passage of proposed legislation, any financial institution which passed certain qualitative criteria would be granted bank status. Apart from foreign exchange dealing, there would be no official limitation on the range of banking activities in which the new banks could engage.

Prudential supervision. Plans for increased prudential supervision of financial institutions were announced on 11 November 1985 by the Minister of Finance. Subject to the passage of legislation, the proposals are aimed at maintaining confidence in the financial system as a whole. The soundness of individual financial institutions will continue to be the responsbility of the directors and management of each institution and the Reserve Bank of New Zealand will be given additional powers to monitor the activities of these institutions through regular statistical returns and consultations. Should any difficulties arise which might impinge on the long-term stability of the financial system, reserve powers will be available to facilitate the orderly process of exit of an institution by merger or sale, to avoid the possibility of a loss of confidence in one institution spreading to cause damage to the financial system and the economy. The proposals do not include any guarantees or insurance for depositors.

26.3 Currency and Overseas Exchange

Decimal currency. Under the Decimal Currency Act 1964 a system of decimal currency was introduced in New Zealand in 1967 with the dollar as the monetary unit. There are coins for $1 (not in general circulation), 50c, 20c, 10c, 5c, 2c, and 1c, and Reserve Bank notes for 1, 2, 5, 10, 20, 50, and 100 dollars. The $50 note was introduced in 1983. The coins are cupro-nickel, except for the one and two cent pieces which are bronze. Notes and coins have distinctive New Zealand designs.

Issue of notes and coin. Since 1934 the Reserve Bank has had the sole right to issue bank notes in New Zealand. It has authority for calling in, with the consent of the Minister, any note or series of notes issued by the bank. Notes called in cease to be legal tender, but remain a liability of the bank. Provisions covering the defacing of bank notes and counterfeiting are in the Reserve Bank Act. Coin is the responsibility of the Treasury but is distributed by the Reserve Bank. Notes and coin are issued solely in response to the demands of the public. In assessing likely requirements there are seasonal factors to be considered, as well as basic economic conditions such as national income, the levels of salaries and wages, changes in price levels generally, and the total volume of money. In addition, methods and frequency of payments affect the amount to be issued.

Legal tender. Under the Reserve Bank of New Zealand Act 1964, notes issued by the Reserve Bank are constituted legal tender for any amount. In terms of the Decimal Currency Act 1964, dollar coins are legal tender for any amount, coins of 5, 10, 20, and 50c for any amount not exceeding 5 dollars, and coins of 1c and 2c for any amount not exceeding 20c.

New Zealand exchange rates

The relationship between the New Zealand pound and sterling in the 1960s and earlier years was described in the 1976 and earlier Yearbooks.

During 1971 the value of the United States dollar underwent severe pressure on overseas currency markets. The United States Government reacted by suspending the gold convertibility of the dollar in August 1971. The US dollar was then floated against all other currencies, against which it rapidly depreciated.

The consequent breakdown of the Bretton Woods international monetary system and the introduction of widespread floating necessitated a re-establishment by the International Monetary Fund of a system which, while being more flexible, would promote an orderly basis for conducting foreign exchange transactions. The Smithsonian Agreement of December 1971 introduced a temporary regime intended to facilitate the resumption of fixed par values and stable exchange rates on a more liberal basis. The United States dollar was devalued at this time by a change in the official price for fine gold from US$35 to US$38 per troy ounce and, at the same time, there was a general realignment of several other important currencies.

As part of the arrangements, member countries had the choice of maintaining their existing par values against gold as the basis for their exchange rates, or of establishing a “central rate” against another currency as its “official” exchange rate. To retain an existing par value resulted in a currency revaluation against the United States dollar (after the change in gold price to US$38 per ounce); New Zealand along with the United Kingdom and Australia opted for this arrangement. At the same time New Zealand, like Australia, nominated the United States dollar as its intervention currency instead of sterling as previously. This enabled New Zealand to quote fixed rates upon the United States dollar while the rates for sterling fluctuated from time to time according to the relationship between the US dollar and sterling in free overseas currency markets.

In addition, the Smithsonian arrangements established wider margins within which spot exchange rates were permitted to move and New Zealand availed itself of this facility. The revised margins were 2바 percent either side of parity or central rate (previously 1 percent) and, where an intervention currency was used to establish rates for other currencies, twice this margin for currencies other than the intervention currency. New Zealand established its fixed United States dollar selling rate (US$1.1887) at the maximum permissible level below the United States dollar (US$1.2160).

It was evident soon after the Smithsonian Agreement was introduced that the arrangements made to promote exchange stability were not flexible enough to accommodate the rapidly changing economic circumstances between nations. A further breakdown occurred in 1972 when 18 currencies including sterling were floated, and the United States dollar again came under severe pressure. In February 1973 the United States dollar was devalued by 10 percent to US$42,222 per fine ounce of gold (from US$38). New Zealand maintained its gold parity, thus appreciating against the United States dollar to an equivalent par value of US$1.35111 =NZ$1. The fixed telegraphic selling and buying rates NZ/USA became US$1.3207 and US$1.3337, respectively.

New Zealand's currency basket and recent exchange changes. With the continuation of widespread floating through 1973, the New Zealand dollar, tied to the United States dollar, was experiencing a gradual depreciation against most other currencies, since most were strengthening against the United States dollar on the overseas currency markets. This depreciation was not warranted as far as New Zealand's balance of payments was concerned, and as it was inducing inflationary pressures, it was decided to terminate the fixed relationship between the New Zealand and the United States dollar.

On 9 July 1973, the New Zealand dollar was adjusted upwards by 3.24 percent relative to the United States dollar, the amount needed to restore the relationship existing in mid-February, immediately following the devaluation of the United States dollar. From that date, until 4 March 1985, New Zealand's exchange rates were calculated in a manner which preserved the average value of the New Zealand dollar against a “basket” comprising the currencies of New Zealand's main trading partners. Thus, from 9 July 1973 until the revaluation in September 1973, the average value of the New Zealand dollar was held at the level that existed on 15 February 1973. The average was a trade-weighted one, and thus movements in the overseas value of the currencies in the basket were reflected in alterations in their value against the New Zealand dollar according to their relative importance in New Zealand's international trade and other current overseas payments. The currency composition of the basket was updated regularly in accordance with changing trade patterns. This method of calculating New Zealand's exchange rates obviated some of the fluctuations that would occur in some rates if its currency were pegged to one particular currency. At that time New Zealand advised the IMF that it would no longer maintain a fixed relationship relative to the United States dollar.

On 21 June 1979 the New Zealand dollar was devalued by 5 percent against the basket of currencies to assist exporters to retain their profitability overseas. From this time onward, it was decided to make small adjustments to the exchange rate reflecting the rate of cost increases in New Zealand relative to the increases in the costs of its trading partners, but these adjustments were suspended in June 1982 as part of the wage and price freeze introduced at that time. Following the devaluation of the Australian dollar by 10 percent, the New Zealand dollar was devalued by 6 percent against the basket of currencies on 8 March 1983.

Until August 1983 the Reserve Bank fixed the exchange rate each morning and stood ready, throughout the day, to buy foreign exchange from or sell it to the authorised foreign exchange dealers at a fixed margin. From 8 August 1983 the Reserve Bank varied its United States dollar/New Zealand dollar exchange rate throughout the trading day according to international currency movements, although the basic principal of fixing against a trade weighted basket of currencies remained unchanged.

On 18 July 1984 the New Zealand dollar was devalued by 20 percent following a strong outflow of foreign exchange. Devaluation was regarded as being necessary to protect reserves from further depletion, to avoid additional external borrowing, and to ensure that the short-term debt did not accumulate too rapidly.

On 2 March 1985 the decision to float the New Zealand dollar was announced. Accordingly, since 4 March 1985 the Reserve Bank has ceased to quote official buy and sell rates for the United States dollar/New Zealand dollar. Banks and authorised foreign exchange dealers are free to deal with their customers in currencies at negotiated rates, and spot and forward exchange rates are determined on the basis of demand and supply conditions in the exchange markets. The authorities have, however, retained the discretion to intervene in the foreign exchange market when necessary to counter disorderly conditions. The move was part of a series of measures taken since July 1984 to reform monetary policy and deregulate the economy, particularly the financial sector.

Exchange rate index. Following on from the devaluation of 21 June 1979, an Exchange Rate Index was introduced. This index, which measures the value of the New Zealand dollar against the basket of currencies, stood at 65.9 at the end of January 1986. The index has a base of 100.0 at the end of June 1979.

Under the fixed exchange rate system that operated until 4 March 1985, the index was relatively stable, changing only when there was a discrete adjustment by the authorities to the value of the New Zealand dollar. Under a floating exchange rate the index alters throughout the day.

A new international exchange rates system. During the period since the Smithsonian Agreement, extensive international discussions have taken place on aspects of international monetary reform, including the question of an agreed set of principles to replace that agreement. These discussions resulted, inter alia, in a quite wide-ranging amendment to the International Monetary Fund's Articles of Agreement. The amendment was formally implemented on 1 April 1978. The amended articles introduced a revised code of conduct for exchange rate policies and practices of member countries intended as a permanent international framework. Although the amended articles allow for the reintroduction of a par value system (i.e., a fixed rate system) along the lines of the one in existence prior to 1971, it is now understood and widely accepted that a more flexible framework is required in present circumstances. Under the amended articles, the International Monetary Fund (IMF) has adopted a set of principles for the guidance of members, which call for countries to collaborate with the IMF and with each other in order to assure orderly exchange arrangements and to promote a stable system of exchange rates. These objectives are similar to those sought in the past, but attention is now focused more on surveillance of economic policies which have a bearing on exchange rates, rather than on the rates themselves. Thus, members are now permitted greater flexibility in altering their exchange rates consistent with the articles, and have greater freedom to alter their exchange rate practices than existed formerly. IMF surveillance of exchange rate policies in the current international environment will be largely a judgmental matter, in which due consideration is to be paid to the social and economic circumstances of the individual countries.

The “currency basket” method and subsequently the floating exchange rate system used in New Zealand to determine exchange rates have been in line with the amended IMF framework, and thus the introduction of the amended articles had no implications for New Zealand's exchange rate practices.

Official overseas reserves

Table 26.27. OFFICIAL OVERSEAS RESERVES

As at Last Wednesday of Each QuarterTotal Foreign Exchange Reserves*GoldReserve Position at IMFSpecial Drawing Rights (IMF)Total Official Reserves

* Comprises Treasury overseas reserves and Reserve Bank foreign exchange and overseas investments.

†International Monetary Fund.

Source: Reserve Bank of New Zealand.

 $(million)
1963—Mar129.20.522.5-152.2
1973—Mar784.20.745.152.1882.1
1981—Dec783.30.738.627.7850.3
1982—Mar534.70.7-27.3562.7
            Jun596.50.7-3.4600.6
            Sep755.10.7-2.8758.6
            Dec933.50.7-2.5936.7
1983—Mar1,662.90.7-2.61,666.2
            Jun1,230.40.7-25.31,256.4
            Sep1,151.70.7-24.91,177.3
            Dec1,189.70.7-49.71,240.1
1984—Mar1,082.00.745.4-1,128.1
            Jun1,462.60.7-0.11,4634
            Sep1,955.20.7-0.31.956.2
            Dec3,683.70.7-14.03,698.4
1985—Mar1,930.20.7-8.71,939.6
            Jun2,721.40.7-2.72,724.8
            Sep2,503.50.7-16.52,520.7
            Dec3,214.00.7-13.03.277.7

Overseas exchange transactions

The overseas exchange transactions statistics provide a record of cash transactions between New Zealand and the rest of the world arising from exports and imports of goods and services plus private and official overseas borrowing and investments which involve a cash remittance or receipt.

The overseas exchange transactions statistics prepared by the Reserve Bank must be distinguished from the balance of payments figures produced by the Department of Statistics which measure the value of the goods and services exchanged between New Zealand and the rest of the world and movements in New Zealand's claims and liabilities with foreigners, irrespective of whether or not a cash transaction is involved. Chapter 29 National economy contains a full description of the difference between the balance of payments figures and the overseas exchange transactions statistics. Conceptually, balance of payments figures are to be favoured over overseas exchange transactions figures for economic analysis.

Table 26.28. OVERSEAS EXCHANGE TRANSACTIONS: YEARS ENDED DECEMBER

Item19811982198319841985

Source: Reserve Bank of New Zealand.

 NZ$(million)
Exports—Receipts
    Meat1,713.21,610.91,692.52,151.71,737.6
    Wool979.5951.11,105.91,220.51,140.3
    Dairy products1,315.81,454.5x1,658.8x1,574.21,813.7
    Other animal products397.9440.5492.9543.5568.7
    Forest products590.3599.3631.4751.9535.7
    Other primary products353.0438.0528.2797.1690.2
    Manufactured exports1,124.31,312.61,434.11,769.31,781.6
    Miscellaneous44.648.869.387.245.9
               Total export receipts6,518.66,855.77,613.08,895.48,313.7
Other current receipts—1,478.71,755.42,152.62,730.63,076.3
               Total current receipts7,997.38,611.19,765.611,626.011,390.0
Capital transfers—Receipts
    Government borrowing1,190.1x1,714.8x1,827.43,757.03,006.2
    Other official receipts743.7x263.5x1.9852.5212.0
    Private (includes Government Corporations)564.71,509.71.818.93,444.84,396.8
               Total capital receipts2,498.43,488.03,648.28,054.37,615.0
IMF—
    Allocations of SDRs31.2----
               Total receipts10,526.912,099.113,413.819,680.319,005.0
Imports—Payments
    Private5,451.36,277.35,998.87,996.27,667.5
    Government255.7315.7337.4350.4520.1
               Total import payments5,707.06,593.06,336.38,346.68,187.6
Other current payments3,243.93,863.24,323.25,425.85,637.2
               Total current payments8,951.010,456.110,659.513,772.413,824.8
Capital transfers—
Government debt repayments203.2743.71,225.61,648.02,417.6
Other official payments58.3206.5284.2920.6486.0
Private (including Government Corporations)526.5641.8905.21,396.63,087.5
               Total capital788.01,592.02,415.13,965.25,991.1
               IMF repurchases135.745.04.8--
               Total payments9,874.712,093.113,079.417,737.619,815.9
Balance on trade transactions811.6262.71,276.9548.8126.1
Balance on invisible transactions-1,765.2-2,107.8-2,170.6-2,695.2-2,560.9
Current account balance-953.6-1,845.1-893.7-2,146.4-2,434.8
Official capital account balance1,672.31,028.1319.52,040.9314.6
Private capital account balance38.2867.9913.72,048.21,309.3
IMF transactions (incl. SDRs)-104.5-45.1-4.8--

Membership of international financial institutions

International Monetary Fund. New Zealand became a member of the International Monetary Fund (IMF) in 1961 under the International Finance Agreements Act 1961. The major objectives of the International Monetary Fund are to promote exchange stability and orderly exchange arrangements among members, and to provide temporary finance, subject to adequate safeguards, to permit members to correct external payments imbalances without resorting to measures that might adversely affect other members. Most of the IMF's lendable resources come from members' subscriptions (quotas). The bulk

of a member's quota is paid in its own currency and the remainder, which constitutes the member's reserve tranche position, is paid in gold, foreign currency or Special Drawing Rights (SDRs). A member can draw on its reserve tranche automatically but the IMF imposes strict conditions in terms of economic policies that are expected to be followed if additional drawings are made. The level of quotas is periodically reviewed as the value of world trade increases. The eighth review in 1983 agreed upon an increase of 33 percent in New Zealand's quota which was paid on 30 December 1983. To supplement international reserve assets, SDRs are allocated to members from time to time in proportion to their quotas. There have been no allocations since the beginning of 1981 when New Zealand was allocated SDR 23.664 million.

Table 26.29. NEW ZEALAND AND THE INTERNATIONAL MONETARY FUND

As at End of YearQuotaDrawing Outstanding*General Account Position*Special Drawing Rights (SDRs)SDR Value
Gold, Foreign Currencies and SDRsN.Z. Currency SubscriptionReserve TrancheOil FacilitiesCompensatory FinancingIMF Holdings of N.Z. CurrencyHoldings as % of QuotaN.Z.'s AllocationHoldings by N.Z.

* Drawings are made by obtaining usable foreign exchange from the Fund in return for New Zealand currency which the Fund then holds in its General Account until drawings are repaid.

†From time to time the IMF allocates SDRs to members with the objective of increasing international liquidity and promoting world trade. Holdings alter when SDRs are sold or purchased in exchange for foreign currency, or when payments in SDRs are made to the IMF in settlement of interest or other charges.

Source: Reserve Bank of New Zealand.

 SDR(million)NZ($)
198179.5268.552.033.7-354.1102141.319.60.7083
198279.5268.579.52.9-350.9101141.31.70.6623
1983107.9353.779.5--433.294141.32.70.6252
1984107.9353.7107.9--461.6100141.36.80.4864
1985107.9353.7107.9--461.6100141.36.00.4543

World Bank. The World Bank group is comprised of the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA) and the International Finance Corporation (IFC). The common objective of these institutions is to help raise standards of living in developing countries by channelling financial resources from developed countries to them. The IBRD's lending operations are directed towards developing countries at more advanced stages of economic and social development, whereas the IDA provides loans of a highly concessional nature to the poorest of the developing nations. The IFC promotes growth in the private sector of developing countries by lending or investing in business enterprises without Government guarantees.

New Zealand joined the IBRD in 1961. It has subscribed to a total of 3607 shares in the bank, which is about 0.6 percent of the total capital. The shares have a total par value of US$392.3 million, although over 90 percent of this amount has not been called-up but, together with the uncalled subscriptions of other member countries, acts as a guarantee for the IBRD's borrowing in the financial markets. The called-up element of New Zealand's share subscriptions has been paid in US dollars (US$3.0 million) and New Zealand currency and promissory notes worth about $63.1 million (US $31.9 million).

New Zealand joined the IDA in 1975, having earlier made a voluntary contribution of $5 million to the association. Since becoming a member, New Zealand has contributed a further $29,2 million to IDA through having participated in its fourth, fifth, sixth, and seventh replenishments of funds and its fiscal year 1984 account. New Zealand owns 923 fully-paid shares in the IFC, which have a total par value of US$0.9 million.

Asian Development Bank. The Asian Development Bank's (ADB's) principal function is to promote and finance the economic and social advancement of its 28 developing member countries in the Asia- Pacific region. It has 31 member countries in the Asia-Pacific area and 15 member countries in Europe and North America. The ADB's financial structure is similar to that of the World Bank.

New Zealand first took up shares in the ADB when it was established in 1966. The country currently holds 27 309 shares, which make-up about 3 percent of the bank's total share capital. The bank's capital was last increased in 1983, and New Zealand agreed then to subscribe to the 13 916 shares to which it was entitled under the increase. The paid-in portion of these shares (5 percent) amounts to US$8.4 million, which is payable in 5 equal annual instalments. The first instalment was paid in December 1983. In 1985, New Zealand paid the third instalment of the capital increase which amounts to about $2.6 million (US$1.7 million).

New Zealand also makes contributions to the ADB s Asian Development Fund (ADF) and Technical Assistance Special Fund (TASF). The ADF is the bank's facility for lending to its poorest developing member countries, to which New Zealand contributed a total of approximately $15.4 million up to the end of 1982. In 1983, New Zealand made a commitment to contribute $6 million to the ADF's third replenishment, payable in instalments over the period 1983-85. It was decided to increase the total contribution amount for the third replenishment to $8 million in 1984. New Zealand has granted a total of $1,125,000 to the TASF since 1969, with the most recent contribution of $75,000 having been made in the 1984-85 fiscal year.

26.4 Investment and mortgages

Mortgage law. The borrowing of money on mortgage is a principal means of financing the erection or purchase of houses and commercial buildings, and the purchase of farms. Under the Land Transfer Act 1952 “mortgage” means any charge on land created under the provisions of that Act for securing:

  1. The repayment of a loan or satisfaction of an existing debt.

  2. The repayment of future advances, or payment or satisfaction of any future or unascertained debt or liability, contingent or otherwise.

  3. The payment to the holders for the time being of any bonds, debentures, promissory notes, or other securities, negotiable, or otherwise, made or issued by the mortgagor before or after the creation of that charge.

  4. The payment to any person or persons by yearly or periodical payments or otherwise of an annuity, rent charge, or sum of money other than a debt.

Under the Land Transfer Act mortgages on land take effect as securities and do not operate as transfers of the estate or interest charged.

Table 26.30. SUMMARY OF MORTGAGES REGISTERED

Year Ended 31 MarchMortgage RegistrationsTotal AreaAmount Secured
Under 2 Hectares2 Hectares and OverTotalUnder 2 Hectares2 Hectares and OverTotal
 No.No.No.ha(000)$(m)$(m)$(m)'
1981139,36528,212167,5775,2201,745.8909.42,655.2
1982167,25633,162200,4185,6132,289.11,256.73,545.8
1983136,31729,682165,9994,9272,182.01,381.63,563.6
1984151,13427,988179,1223,1662,660.11,354.54,014.6
1985158,26227,540185,8023,1172,930.21,378.44,308.6

NOTE—These figures exclude certain miscellaneous registrations, but may include minor duplications.

The 185 802 mortgage registrations in 1984-85 were in the following categories: first table, 56 210; first flat, 44 320; subsequent table, 39 535; subsequent flat, 39 605; increases in amount, 6132.

Table 26.31. VALUE OF MORTGAGES REGISTERED BY DISTRICT

Land Registration District1983-841984-85
NumberAmountAreaNumberAmountArea

* North Auckland Land Registration District includes Auckland urban area.

  $(m)hectares (000) $(m)hectares (000)
North Auckland*59,1941,295.826459,4041,342.2197
South Auckland27,286730.449228,091734.3453
Gisborne2,42070.61652,41661.4142
Hawke's Bay7,295167.92077,543182.4264
Taranaki5,237137.31275,609153.2182
Wellington30,444624.439233,971795.0465
Marlborough2,10348.51112,15447.2110
Nelson4,28383.3874,59794.389
Westland83514.83591618.424
Canterbury24,574516.969625,156533.6542
Otago9,830199.036410,509216.4367
Southland5,621125.82265,436130.3282
               Total179 1224,014.63 166185 8024,308.63 117

Table 26.32. MORTGAGES REGISTERED BY AMOUNT SECURED

Amount Group1983-841984-85
NumberAmountPercentage of Total AmountNumberAmountPercentage of Total Amount
$ $(000)% $(0001)%
Under 4,00010,57320,4470.5211,85721,8530.51
4,000-5,99911,49556,38514013,44466,2361.54
6,000-7,9997,02946,9341.177,18148,2181.12
8,000-9,9995,46847,0391.174,75840,7620.95
10,000-14,99917,425196,4924.8916,491185,2904.30
15,000-19,99912,990214,8405.3512,322202,6804.70
20,000-49,99950,3931,503,56937.4554,3911,650,83938.32
50,000-149,99912,712987,17224.5913,9741,052,63824.43
150,000 and over3,430941,71823.463,4481,040,06224.14
Unspecified47,607--47,936--

Rates of interest. The average rate of interest for 1984-85 was 13.12 percent. The comparable rate for 1983-84 was 14.20 percent.

An analysis showing numbers and amounts of mortgages classified by interest rate groups is given in Table 26.33. Some mortgages, mainly trading bank ones, do not specify the rate of interest.

Table 26.33. INTEREST RATES OF REGISTERED MORTGAGES

Mortgage Interest Rates1983-841984-85
NumberPercentageAmountPercentageNumberPercentageAmountPercentage
  %$(m)% %$(m)%
Under 88,0647.5341.310.312,32911.2521.014.9
8 and under 91,0511.033.71.01,0931.030.00.9
9 and under 1334,42632.0526.216.039,83136.11,089.831.1
13 and under 1510,88610.1513.615.623,87721.6682.619.5
15 and under 1717,52816.3577.617.510,6339.6349.010.0
17 and under 1923,91622.3807.024415,22013.8535.715.9
19 and over11,64610.8500.115.27,3526.7295.78.3
         Total107 517100.03,299.5100.0110 335100.03,503.8100.0
         Unspecified71,605...715.1...75,467 804.8...
         Grand Total179 122...4,014.6...185 802...4,308.6...

Interest rates and mortgage class. In this section mortgages are tabulated by class, i.e., as first flat, subsequent flat, first table, subsequent table, and as increases on existing mortgages. The majority of housing mortgages, especially those from government agencies, are table (or instalment) mortgages. At the 1981 Census, out of a total of 1 003 113 occupied permanent private dwellings, 423 462 were owned with mortgage, 287 343 dwellings were owned without mortgage, 253 389 were rented or leased, and the balance of the dwellings were free with job, loaned without payment, or the tenure was unspecified.

Mortgages for which the interest rates are not specified are excluded from the calculations of average rates in Table 26.34.

Table 26.34. ADVANCED AND AVERAGE MORTGAGE INTEREST RATES BY CLASS

Year Ended 31 MarchClass of Mortgage
First FlatSubsequent FlatFirst TableSubsequent TableIncrease of MortgageTotal
 Amount Advanced $(million)
1981795.2322.31,072.1334.4131.22,655.2
19821,149.3433.71,291.8448.7222.33,545.8
19831,167.9583.41,116.4509.6186.23,563.6
19841,317.5696.61,274.4559.9166.14,014.6
19851,244.4821.01,445.0650.6147.64,308.6
 Average Interest Rate (percent)
198114.2213.8211.8213.0510.7912.89
198215.5714.9613.3414.2511.6314.30
198316.6716.6013.4615.2211.4915.16
198415.7415.6212.2414.2210.8514.20
198514.1814.4411.6513.2210.7013.12

Sources of mortgage finance.Table 26.35 indicates the sources of finance for mortgages registered. Of the new mortgages registered in 1984-85, 23.88 percent of the aggregate advances were obtained from government agencies (of which the principal one is the Housing Corporation) compared with 24.35 percent in 1983-84.

Table 26.35. SOURCES OF MORTGAGE FINANCE

Year Ended 31 MarchProducer Enterprises*Central GovtLocal GovtTrading BanksTrustee Savings BanksBuilding SocietiesInsurance and Pension FundsHouseholdsOtherTotal

* Includes solicitors nominee companies.

† Includes related savings banks.

$(million)
Under 2 Hectares
1981338.3412.52.154.3229.3158.3135.8230.1185.11,745.8
1982522.1102.73.872.3313.9233.2170.5290.4280.22,289.1
1983600.0397.76.931.292.4200.1177.9327.0348.72,181.9
1984725.7523.18.536.974.0218.6172.2363.4537.72,660.1
1985802.4580.59.447.689.6273.5221.2418.3487.72,930.2
2 Hectares and Over
1981155.1301.00.35.532.318.983.0247.166.2909.4
1982201.9405.30.18.457.826.0117.9315.4123.91,256.7
1983240.6425.80.16.640.327.7137.6366.1136.81,381.6
1984244.3454.50.86.716.525.0105.3313.1188.31,354.5
1985265.4448.2199.512.235.2150.4305.8149.81,378.4

Points to note in considering statistics of mortgages by source of finance are that most trading and trustee bank mortgages specify neither interest rates nor the amounts involved; and that from 1976 the Government Life Insurance Corporation and the State Insurance Office have been included among Insurance and Pension Funds.

Rural Banking and Finance Corporation

The Government first entered the field of mortgage finance in 1894 with the passing of the Government Advances to Settlers Act—the objective being to provide loans at economic interest rates and on stable terms and conditions to farmers for land development purposes. The functions of the office, later known as the State Advances Department, were subsequently enlarged to allow loans for the erection and purchase of houses, and loans to local authorities for the provision of public facilities. A public corporation was established with the passing of the Mortgage Corporation Act 1934-35, the share capital of $2,000,000 being subscribed equally by Government and public. In terms of the State Advances Corporation Act 1936, the Government acquired the privately-owned share of the Mortgage Corporation, extended its functions, and changed its name to the State Advances Corporation of New Zealand. Under the Rural Banking and Finance Corporation Act 1974 the rural lending activities of the State Advances Corporation passed to the newly-established Rural Banking and Finance Corporation from 1 April 1974.

The Rural Banking and Finance Corporation provides loans to individuals or organisations engaged in any type of farming, to the fishing industry, or to support industries in these areas. The corporation consists of a chairperson and 4 other directors appointed by the Minister of Finance. Two of the directors are appointed after consultation with the Federated Farmers of New Zealand (Inc.).

The principal functions of the Rural Bank are to tarry on the business of making loans and providing other assistance at its discretion for farming, other primary industries, and related service industries. Its powers include the acquisition of land and other property by purchase or lease and the management, development, sale, or lease of such property. The Rural Bank also has powers to give guarantees and indemnities to other lenders. In the execution of its functions and powers it is required to give effect to Government policy.

Farm purchase. Loan finance is granted by the Rural Bank for the purchase of farm properties. Present policy is directed toward assisting young farmers and farm workers who can demonstrate a need for finance from the Rural Bank, and who have not previously owned an economic property. Loans may be granted for the purchase of land and improvements and for stock and plant.

Farm workers holding. These loans provide a bona fide farm worker with the opportunity to purchase a “stepping stone” unit which can be operated part-time in conjunction with his/her farm employment. The farm worker is therefore assisted to accumulate experience and assets towards future farm ownership.

Farm development. Loan policy in the area of farm development is to stimulate increased production and the intensification of small holdings, strengthen marginal farms, and provide buildings and other essential improvements. In appropriate cases, loans may be advanced on second or subsequent mortgages.

Irrigation and rural water supply. Loans are available from the Rural Bank for on-farm works associated with community schemes, new private irrigation schemes, or the extension of existing schemes.

The policy normal development lending criteria must be met, and the loans are available on normal development repayment terms of up to 25 years with interest at the then ruling rate. No principal repayments are required during the first 3 years and interest charges are also deferred for the initial 3 year period and then added to the principal sum repayable.

Suspensory loans of up to 50 percent of eligible expenditure may be provided for approved West Coast drainage schemes.

Refinance. The Rural Bank has limited funds for refinancing onerous farm debts but is normally unable to provide assistance to repay existing term mortgages unless the mortgagor is facing serious hardship through inability to obtain a renewal.

Loans on stock and plant. Loans which are essentially for the purchase of stock and plant, e.g., sharemilking propositions, are available on the security of the stock and chattels being purchased.

Sharemilkers' suspensory loans. Sharemilkers or other short-term lessees, purchasing their first farm, facing a tax liability through having to reduce stock may qualify for a suspensory loan if the carrying capacity of the farm they are purchasing is less than that of the property they have been farming and ' the stock reduction is more than 20 head. The loan is calculated on $30 per cow reduction with a maximum of $7,000 and is interest free. Subject to the borrower owning and farming the property for 10 years the suspensory loan may be written off.

Co-operative rural intermediate credit associations. Loans may be granted by the Rural Bank to co-operative rural intermediate credit associations operating in terms of the Rural Intermediate Credit Act 1927 and amendments.

Farm mortgage guarantees. In recognition of the need for farmers to have access to more capital than the Rural Bank can make available by direct loans, the Rural Bank operates a Farm Mortgage Guarantee Scheme. Under this scheme the Rural Bank protects prudent lenders with a soundly administered mortgage against loss of capital.

Climatic relief. This on-going financial facility is available to farmers as a relief measure following severe losses or damage due to adverse climatic or other conditions.

The loans can be used for purposes such as the purchase of grazing, grain, hay, and other stock feed, fertiliser, replanting or resowing of crops, orchards, etc. This can also include living expenses and normal maintenance where there has been a serious loss of income. Repayment terms are flexible and are tailored to meet the particular circumstances of the applicant.

Farm ownership savings. The Farm Ownership Savings Scheme, administered by the Rural Bank, allows farm workers, sharemilkers, others associated with farming, and also students the opportunity of opening savings accounts for the purpose of buying a first farm or for the purchase of stock and plant to go sharemilking or share farming for the first time. These accounts can be opened with the Post Office Savings Bank, trustee savings banks, private savings banks, and some building societies. Depositors have the option of operating one or other of the following types of accounts under the scheme:

  1. Ordinary Farm Ownership Accounts which provide for tax free purchase grants; or

  2. Special Farm Ownership Accounts which allow depositors tax benefits on their savings.

Fishing lending. Under its lending policies the Rural Bank provides financial assistance to the fishing industry. Loans are available for such purposes as vessel replacement, improvements to vessels, fishing gear and equipment, re-engining of vessels and for fish packing and processing facilities. The bank is also able to assist with finance for the development of mussel and rock oyster farms.

Commercial lending. The banks commercial lending activity is funded from moneys raised from market sources. Commercial loans are available to borrowers who do not qualify for assistance under the bank's standard lending policies. They cover a wide range of proposals including refinance land purchase, development, the provision of post harvest facilities such as packhouses and coldstores, forestry development, veterinary clinics and plant and machinery, etc.

Table 26.36. RURAL BANK LOANS AUTHORISED

Loans1983-841984-85
NumberAmountNumberAmount

Source: Rural Banking and Finance Corporation.

Standard Lending— $(m) $(m)
Farm settlement685101.19742110.01
Workers holding (“stepping stone” units)24014.2227416.99
Additional land (strengthening existing farms)22317.2622019.26
Sharemilkers suspensory (farm purchase)1410.401090.36
Development6,080161.305,300152.73
Stock and plant loans (sharefarmers)1,11933.1998733.13
Advances to RIC associations250.60160.22
Refinance822.3723412.83
Climatic relief1,35126.3458314.92
Estate Duty150.80110.67
Department of Lands and Survey settlement282.38303.72
Fishing industry756.76554.00
Rural industrial lending49323.5523210.70
               Total10 557390.368 793379.54

Table 26.37. RURAL BANK INDUSTRIAL AND FISHING LENDING

Item1983-841984-85
NumberAmountNumberAmount

Source: Rural Banking and Finance Corporation.

Rural Industrial Lending $(m) $(m)
Rural industries633.99993.90
Producer boards107510.50
Cool stores and packhouses8210.27322.79
Agricultural plant and machinery (including special plant)2685.86--
Agricultural contractors682.23842.98
Rural Export suspensory loans110.45160.53
               Total49323.5523210.70
Fishing Industry Lending
Loans for catching603.92522.92
Loans for processing facilities112.6231.08
Rural Export suspensory loans40.22--
               Total75676554.00

Building societies

Building societies are a popular means of saving and investment in New Zealand and have 809 000 members. At 1 April 1985 there were 33 building societies with total assets of more than $1,588 million. They provided finance for home ownership of $317 million in 1984. Building societies have assisted the national economy by attracting and encouraging savings. They are encouraged by legislation, as in other countries. The relevant legislation is the Building Societies Act 1965 and its amendments, the Building Societies Savings Bank Regulations 1966, and the Building Societies Regulations 1967.

Permanent and terminating societies. The Building Societies Amendment Act 1980 had a profound effect on the future development of building societies in New Zealand.

For some years concern had been expressed at some aspects of the operations of terminating societies i.e., those societies that conducted ballots and tenders for loans within contractual savings groups. In particular, concern had been expressed about the amount that members forfeited through not maintaining their contractual obligations, and in general, about the cost of operating such institutions which resulted in low returns on members' savings.

Terminating societies had long since lost favour with the public and with the authorities in other countries, and reform in New Zealand was considered long overdue, a view reinforced by the declining membership of such societies. It was considered significant that virtually all terminating societies were actively promoting an allied permanent society.

The Amendment Act prohibited the sale of terminating group shares from 1981, although terminating groups in existence at that date continue to termination. The Amendment Act empowered building societies to offer bonus balloting shares. These shares form a bonus ballot share fund. Part of the interest earned by this fund is distributed by way of monetary prizes decided by ballot. However not less than 80 percent of the interest earned by the fund is credited to the bonus balloting shareholders as interest. In 1984 bonus ballot shares represented 28 percent of building societies shareholdings.

The shares that were issued in terminating groups involved the member in long-term contractual savings. Generally the products offered by permanent societies are far more flexible and range from savings share accounts to fixed term shares and deposit accounts not dissimilar to those available from savings banks.

The Building Societies Act still refers to permanent and terminating societies for technical reasons but no longer restricts the activities of societies to one function or the other and so the merging of allied terminating and permanent societies has been facilitated.

Largely as a consequence of the new legislation, a significant rationalisation of building societies has recently occurred, indicated by the reduction in the number of societies from 53 at the beginning of 1980 to 33 on 1 April 1985.

Since all societies had from 1981 a common range of available products to market, it was logical that allied terminating and permanent societies should merge. This was effected by transferring the engagements of the permanent society to the parent terminating society. At the same time, a number of smaller societies transferred their engagements to larger and stronger units better equipped to operate on the new basis.

Activities of building societies. Societies do not have a common balance date. Tables 26.38-42 have been prepared from the annual returns of societies as at their various balance dates during the 1984 calendar year.

Table 26.38. BUILDING SOCIETIES: SUMMARY OF RESULTS

Item198219831984

*At beginning of year.

Source: Registrar of Building Societies.

Number of societies*373433
Paid-up capital $(000)790,567902,1701,105,230
Number of shareholders674,175704,327808,945

Table 26.39. BUILDING SOCIETIES: RECEIPTS AND PAYMENTS

Item198219831984

*Nine societies are authorised by the Act to accept deposits on conditions substantially similar to the conditions pertaining to the Post Office, trustee, and private savings banks.

Source: Registrar of Building Societies.

    Receipts$(thousand)
Share subscriptions (excluding subscriptions on borrowing shares)903,3241,572,5941,908,555
Deposits received
    Savings*9,7269,8258,860
    Other362,137536,964748,852
Interest and principal repaid—
    Advances on mortgage (including subscriptions on borrowing shares)225,716278,148280,477
    Advances on shares9,68420,05914,109
Investments realised511,815601,9821,105,927
    Payments
Share moneys withdrawn796,1001,486,4561,718,061
Deposits and interest withdrawn—
    Savings*8,72610,9057,586
    Other376,328502,812702,517
Advanced on mortgage249,181241,490317,048
Advanced on shares14,06516,93611,138
Investments made521,400686,5511,213,417

Table 26.40. BUILDING SOCIETIES: INCOME AND EXPENDITURE 1984

ItemAmount

* Terminating shares only.

† Mainly levies on members as provisions against losses on mortgage.

Source: Registrar of Building Societies.

    Income$(000)
Interest earned on—
    Advances143,266
    Investments50,003
Fees, commissions and fines3,897
Income from properties2,885
Net credit from shares forfeited or withdrawn at a discount*1,784
Mortgagors' contributions to reserves407
Other4,088
               Total income206,330
    Expenditure$(000)
Interest incurred on borrowings38.777
Directors' emoluments518
Auditors' fees375
Salaries18,619
Other administrative expenses25,576
Selling and establishment expenses—written off312
Payments for ballot loan rights—written off*4,448
Expenses on properties, including depreciation2,160
Discount on shares paid in advance—written off*
Other5,628
               Total expenditure96,413
               Excess of income over expenditure109,917

Table 26.41. BUILDING SOCIETIES: PURPOSES OF MORTGAGE ADVANCES

Purpose of Loan198219831984

Source: Registrar of Building Societies.

$(million)
Dwellings—
    Erections36.628.732.2
    Purchases145.6127.3156.3
    Other purposes46.068.391.9
Business and other properties21.017.236.6
               Total249.2241.5317.0
Number of advances12,38010,47912,437

Table 26.42. BUILDING SOCIETIES: SUMMARY OF BALANCE SHEETS 1984

ItemValue or Amount

Source: Registrar of Building Societies.

 $(000)
Land and buildings47,627
Other fixed assets21,603
Advances on security of mortgage (less credits on borrowing shares)1,061,398
Advances on security of shares17,521
Investments429,986
Cash and bank2,334
Appropriations in trust debit balances
Other7,797
 1,588,266
Paid-up capital (excluding borrowing shares)1,105,230
Reserves69,479
Retained profits32,639
 1,207,348
          Less fictitious assets466
 1,206,882
Deposits—
          Savings Bank1,988
          Other339,539
Taxation liabilities and provisions2,775
Provisions6,708
Bank overdraft11,628
Other18,746
 1,588,266

Credit unions. As at 31 December 1983 there were 295 credit unions registered under the Friendly Societies and Credit Unions Act 1982 with funds totalling $78 million.

Public Trust Office

The main purpose of the Public Trust Office is to make available to the public a trustworthy administrator of the estates of deceased persons at a reasonable cost, the integrity of the Public Trustee and his officers being guaranteed by the State. The office is under the administration of the Public Trustee, a corporation sole with perpetual succession and a seal of office. Since establishment the range of its services has been considerably extended. The Public Trustee now acts in many capacities, e.g., as administrator in intestate estates; executor and trustee under wills; trustee under marriage and other settlements; trustee of benefit or relief funds; agent or attorney for absentees or persons wanting to be relieved of business worries; sinking fund commissioner for local authorities; administrator of unclaimed lands and property; manager of the estates of protected patients; manager (when so appointed by the court) of the estates of aged and infirm persons unable to attend to their own affairs; and trustee of compensation moneys. The wills of persons wanting the Public Trustee to act as their executor and any subsequent will or codicil may be prepared and held in safe custody by him, free of charge. With certain qualifications the Public Trustee may act jointly with another person or persons.

In lieu of obtaining probate or other grant of administration, the Public Trustee may file in an office of the High Court an election by him to administer an estate (testate or intestate) if the gross value of the property in New Zealand is estimated not to exceed $40,000. If after the filing of the election the value of the property is found to exceed $60,000 the Public Trustee must obtain a grant of probate or administration in the ordinary way.

During the year ended 31 March 1985, 4369 estates and funds valued at $196.9 million were accepted for administration. Estates and funds under administration at 31 March 1985 numbered 32 131 and were valued at $826.1 million.

Capital moneys becoming available for investment either form part of the Common Fund of the office or are invested in securities authorised by S. 30A of the Public Trust Office Act 1957. Testators or settlors also have the option of specifically excluding investment in the Common Fund in which case the provisions of S. 4 Trustee Act as amended by S. 3 Trustee Amendment Act 1974 apply.

Interest is allowed on moneys in the Common Fund at the rate fixed from time to time by the Governor-General in Council and is free of all commission and other charges. Both capital and interest are guaranteed by the State, thus affording the complete security that it is the object of the office to provide. On the other hand, moneys invested pursuant to S. 30A or directed to be invested in specific securities do not carry the State guarantee and, subject to the Public Trustee's ordinary liability as a trustee, any loss resulting from their investment falls upon the estate concerned. Commission is charged on the collection of the interest.

Charges and commission rates are contained in the Public Trust Office Regulations 1958.

New investments completed during the year ended 31 March 1985 totalled $7.9 million. The investments held by the office at 31 March 1985 totalled $141.4 million. These figures relate exclusively to Common Fund investments, and do not include other special investments made on behalf of estates. or investments which constitute assets of estates when the latter came under the Public Trustee's administration and which are still held as assets of those estates.

During the year ended 31 March 1985, 28 532 wills appointing the Public Trustee executor were deposited with him for safe custody. The total number of such wills held on deposit at 31 March 1985 was 334 346. During the year ended 31 March 1985 effect was given in 12 439 cases to changes desired by testators.

Maori Trust Office

The Maori Trust Office is a corporation sole. Although legally separate and independent, there is a close working relationship between the Maori Trust Office and the Department of Maori Affairs. The Maori Trustee is the Deputy Secretary for Maori Affairs. The Maori Trustee's objective is the effective management and development of Maori resources to the economic and cultural advantage of the Maori people.

The Maori Trust Office operates as a competitive and businesslike agency, but is committed to the principle of encouraging Maori self-determination and decision making, and to the use of its expertise to support Maori management (receiving an appropriate return for its services). Part of its profit is allocated to provide assistance to the needy according to clear guidelines. The assets administered by the Maori Trustee are Maori assets used for the benefit of Maori people.

Investment. $10 million of trust funds are held on behalf of beneficiaries (Common Fund) and a further $10 million have been generated from past investments (General Purposes Fund). The majority of income is derived from the investment of these funds.

Common Fund. Moneys must be invested in trustee securities which include:

  • — Government and local authority stock and debentures.

  • — Government approved securities including Trustee Banks, Building Societies, National Provident Fund, Development Finance Corporation, and certain other Government-backed organisations.

  • — Shares and debentures in companies which meet certain criteria.

  • — First mortgage over land.

General Purposes Fund moneys may be used for the benefit of Maoris on such terms as the Maori Trustee thinks fit and are approved by the Board of Maori Affairs. In addition, the Maori Trustee makes grants from the General Purposes Fund to the New Zealand Maori Council, the Maori Education Foundation, the Maori Purposes Fund Board, and donations for philanthropic purposes. The benefit of the Maori people is important in the choice of investments as well as in the distribution of profits. A proportion of funds are reserved for applications which are of special merit but which may not meet normal investment criteria. High priority is given to loans to Maori groups. Loans to individuals get lower priority, unless their proposals benefit the wider Maori community e.g., service industries in predominantly Maori communities.

Business loans. $807,000 which was allocated to small businesses by the Department of Maori Affairs under 8460A of the Maori Affairs Act is now administered by the Maori Trustee. Loan criteria are the same as for allocations from the General Purposes Fund.

Estate administration. The Maori Trustee offers a sympathetic cost-competitive estate administration service. The objective is to have every estate completed quickly and to recover the cost of administration. However, the Maori Trustee will accept a certain amount of unprofitable estates work where there are sound reasons.

Maori land law is complex but the Maori Trustee has advantages of: a special knowledge of the law; a good understanding of Maori aspirations; close liaison with the Maori Land Court; and certain statutory advantages.

Alienations. A major part of the Maori Trustee's income is derived from the collection and distribution of alienation moneys.

The Maori Trustee's services are offered for rent collection and distribution, and also for appointment as custodian trustee, investigatory trustee, or responsible trustee. Arguments in favour of owners using the Maori Trustee are: the existing system allows efficient distribution to owners and the service will be further improved with the advent of a new computer; the Maori Trustee is able to use rent money as a base for lending and also applies his profits to Maori purposes including the continued provision of advisory services and loan finance; and the Maori Trustee offers a rent distribution service to trusts or some incorporations.

Friendly and medical care societies

Friendly societies or lodges had a membership of 47 517 at the end of 1983 compared with 113 000 in 1938 before the introduction of social security. They provide sickness and death benefits for members. The funds of the societies (including central bodies) totalled $70 million as at 31 December 1983.

The provisions 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 medical care society providing only such benefits, including the costs of private hospital treatment. A medical care society may be registered under the Friendly Societies and Credit Unions Act 1982, but several use other forms of registration. 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 460 000 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.

26.5 Companies and bankruptcy

Companies

The limited liability company is the commonest form of institutional arrangement in New Zealand business. The incorporation of persons into a separate entity for trading purposes provides a convenient method for the investment of capital and for the limitation of liability of the people associated in the company. The incorporation of a company with limited liability provides the framework of commercial and industrial life; private companies have become a usual form of business organisation for the smaller trader.

Legislation. Comprehensive legislation relating to companies is contained in the Companies Act 1955, which came into force on 1 January 1957. An important principle in the legislation is the protection of shareholders, creditors, and the general public by the requirement that there must be the fullest practicable disclosure of information concerning the activities of companies. The annual financial statements must exhibit a true and complete account of a company's affairs and transactions. A prescribed form of presentation is required, and comparative figures for the previous year must be shown.

Offers to the public require the issue of a prospectus, which must be registered with the Registrar of Companies. The Securities Act 1978 set up a Securities Commission (see below) whose responsibilities include recommending rules in this area. As a result of their recommendations, the Securities Regulations 1983 came into force in September 1983. The regulations cover restrictions and the content of registered prospectuses and advertisements.

Any number of persons from 2 to 25 may form a private company; a public company must have at least 7 members. A private company of not less than 7 members may, under certain conditions, be reregistered as a public company.

The Companies Amendment Act 1963 regulates takeovers by ensuring that shareholders in offeree companies have enough time and information to make a proper decision. The Companies Amendment Act 1964 deals with registration under the Land Transfers Act 1952 of occupation licences issued by flat-owning companies.

Securities Commission. The Securities Commission is a body corporate established under Part I of the Securities Act 1978. It consists of 5 members and 5 alternate members appointed by the Governor- General on the recommendation of the Minister of Justice. The chairperson is a barrister and solicitor appointed on a full-time basis. Other members and alternates are engaged on a part-time basis, and are expected to have wide experience in commercial affairs.

The functions of the Securities Commission are as follows:

  1. Law Reform—

    1. To devise and recommend regulations under the Securities Act 1978.

    2. To keep under review the law relating to companies, securities and issuers of securities, and recommend changes.

  2. Surveillance of Practice—To review securities practices and comment on them with power to hold enquiries in particular cases, if necessary in public.

  3. Education—To promote public understanding of the law arid practice about securities.

  4. Exemptions—To exempt persons and classes of persons either temporarily or on a long-term basis, from compliance with various provisions of the Securities Act and Regulations.

  5. Substantive Jurisdiction in Particular Cases—To suspend or cancel the registration of prospectuses, to prohibit the publication of advertisements, to exercise powers for the protection of investors in contributory mortgage schemes, to approve persons to act as trustees and statutory supervisors, to recommend that entities in difficulties should be placed under statutory management, and to hear appeals against decisions of the Registrar of Companies.

The commission's current law reform programme includes a review of the law and practice relating to:

  1. Company Mergers and Takeovers

  2. Contributory Mortgages

  3. Financial Reporting

  4. The duties, responsibilities and liabilities of officers of entities that have issued securities to the public, with particular reference to the use of information relevant to the value of securities and insider trading.

  5. Secondary market operations, with particular reference to the Sharebrokers Act 1908.

Table 26.43. COMPANY REGISTRATIONS

YearNew Companies RegisteredCompanies Dissolved or Struck OffCompanies Placed Under ReceivershipCompany LiquidationsTotal Number of Companies
Court OrderVoluntary

Source: Department of Justice.

19816,7533,027222323380117,957
19826,3705,735259351274118,589
19836,9672,691331419293122,892
19849,6444,379288385282127,387
198510,0451,777312441294135,545

Analysis of public company financial statements

Since 1953 the Reserve Bank of New Zealand has undertaken an analysis of the annual financial statements of a sample of public companies in New Zealand to obtain information concerning company finance and the capital market. Almost all companies whose shares are listed on the Stock Exchange are included, together with a few others. Results of these analyses are published in an annual supplement to the Reserve Bank Bulletin.

In 1977 the coverage was extended to include non-listed and overseas companies. Overseas companies are those with 25 percent or more of their voting share capital controlled by overseas interests, and include any branch of an overseas incorporated company. Public companies (listed or non-listed) which are owned overseas but operate mainly in New Zealand, and whose income is derived largely from New Zealand sources, are included in the 'overseas company' category.

The 1984 survey analysed 618 companies during the year ended December 1984, comprising 120 listed public companies, 153 non-listed public companies, and 345 overseas companies. Table 26.44 is drawn from this survey.

Table 26.44. SURVEY AND ANALYSIS OF COMPANY ACCOUNTS

Annual Accounts19831984

* After deduction of salaries, selling, administration and commission expenses.

Source: Reserve Bank of New Zealand.

 $(million)
    Trading profit*2,936.73,692.4
    Investment131.3158.9
    Other non-trading266.9408.9
 3,334.94,260.2
Less
    Depreciation464.0579.0
    Interest1,213.71,462.0
    Directors' fees8.69.5
    Tax393.9551.7
    Minority interests42.974.3
    Other expenses210.4211.3
               Total deductions2,333.52,887.8
               Net profit after tax1,001.41,372.4
Extraordinary items (net of tax)*0.81.6
Goodwill written off-11.5-8.9
               Net profit after extraordinary items and good will990.81,365.7
Appropriations—
    Ordinary dividends421.8531.3
    Preference dividends25.923.9
    Retained earnings3,635.34,268.6

As many companies in the 'Investment', 'Non-life insurance', and 'Other financial' subgroups do not provide sufficient detail to distinguish between income from investments, and revenue from other trading activities, the components of investment income where shown have been incorporated into trading profit for these subgroups in Table 26.44. 'Other expenses' includes rental and leasing charges, audit fees, and any loss on foreign exchange transactions or disposal of fixed assets. This differs from the 1983 survey, when salaries, selling and administration expenses and commissions were included in 'other expenses' where disclosed.

Net profits and net profit ratios. Net profits (after tax) and net profit ratios are shown in Table 26.45. This analysis is comprised principally of companies with balance dates between June 1983 and October 1984 and essentially therefore reflects trading conditions during the 1983-84 financial year.

Table 26.45. SURVEYED COMPANY PROFITS

Type of Company*Number of CompaniesNet ProfitReturn
TotalChange From Previous YearOn Share holders FundsOn Total Resources

* For note on balance dates see opening paragraphs of this subsection.

† The return on shareholders' funds is net tax- paid profit expressed as a percentage of shareholders' funds. This ratio demonstrates the earning power of the funds invested in the business by the shareholders.

‡The return on total resources is an expression of the percentage of net tax-paid profit to total tangible assets. This ratio is an indicator of the earning power of the business.

Source: Reserve Bank of New Zealand.

 $(million)percent
Manufacturing
    Meat freezing and preserving1425.53.09.14.7
    Food and beverages36171.947.013.97.2
         All food50197.544.113.06.7
    Apparel and textiles2143.84.612.45.5
    Forestry and wood12257.9126.114.36.1
    Printing and packaging3340.28.218.911.2
    Drugs and chemicals5559.73.213.13.4
    Non-metallic minerals1729.11.210.55.9
    Metals and machinery51117.735.312.56.1
    Electrical appliances and equipment2949.310.716.69.0
    Rubber, plastics and other manufacturing2737.78.716.48.5
       Manufacturing other than food245635.4197.913.96.0
       All manufacturing295832.9242.013.76.2
Other (excluding financial)     
    Building and construction1039.59.013.56.1
    Micellaneous services258.60.815.88.5
    Mainly wholesale116176.319.112.26.2
    Mainly retail4173.624.915.87.0
    Pastoral1534.64.311.84.3
    Tourism and transport2236.717.512.35.2
    Investment4467.632.114.83.7
       Total other (excluding financial)273437.0108.113.25.5
       Total (excluding financial)5681,269.8350.013.55.9
       Financial5095.424.418.81.8
       Grand Total6181,365.4374.613.85.1

NOTE—Totals may not add because of rounding.

Bankruptcy

The law relating to bankruptcy in New Zealand is contained in the main in the Insolvency Act 1967 and the Insolvency Regulations 1970. Jurisdiction in bankruptcy matters is vested in the High Court.

All proceedings in bankruptcy are commenced by a petition filed in the court. A petition may be filed either by the debtor or by a creditor. The filing of a debtor's petition is equivalent to an order of the court adjudging the debtor a bankrupt, no order being required in this case. Not less than $200 in the aggregate must be owing by the debtor to the creditor or creditors filing a petition.

The Official Assignee is empowered to sell the bankrupt's property, to claim debts due to the bankrupt estate, to carry on the business of the bankrupt so far as is necessary or expedient for its beneficial winding up, or to divide the property among the creditors. The bankrupt may be appointed by the Official Assignee to manage his estate or carry on his business on behalf of the creditors.

Creditors may accept a composition in satisfaction of the debts due to them. In such a case, after approval of the court, a deed of composition is executed and filed, and the bankruptcy annulled.

On application being made by the bankrupt, the court is empowered to grant him/her an order of discharge, either absolute, suspended, or conditional. The application may be opposed either by the Official Assignee or by any creditor who has proved his/her claim. A public examination of the bankrupt may be demanded by the assignee on a resolution by creditors. A person adjudged bankrupt is discharged 3 years after the date of adjudication unless discharged sooner.

Another form of financial failure is covered by private assignments, which are not included in official bankruptcy statistics. There was 1 in 1981, 6 in 1982, 19 in 1983, 16 in 1984, and 45 in 1985.

Table 26.46. TRANSACTIONS IN BANKRUPTCY

YearBankruptcies*Court Orders for Liquidation of CompaniesTotal Commercial Failures
Petitions by DebtorsAdjudications on Petitions by Creditors

* The Bankruptcy figures include orders under Part XVI and XVII of the Insolvency Act 1967 and Part IV of the Administration Act 1969. These figures have not been adjusted for annulments granted during the year. Company liquidations include voluntary liquidations.

1981303254264821
1982324244312881
19834664033701,239
19844094053451,159
19854454243721,241

In the case of a partnership, each partner is counted in the total of transactions and also the partnership. The general bankruptcy statistics do not cover assignments and compositions, but relate only to cases dealt with by official assignees, in some cases of company liquidation, subsequent court orders are given for the winding up of companies to be transferred to private liquidators.

Table 26.47. BANKRUPTCY STATISTICS

YearAverage Debts Proved per EstateProportion of Dividends, etc., to Debts
 $percent
198030,2283.7
198137,7885.7
198235,8278.1
198343,7324.2
198444,4346.1
198543,2196.0

Apart from dividends, preferential and secured claims, and Government commission, payments made from assets realised include cost of actions, solicitors' fees, and expenses incurred in managing estates for the benefit of creditors.

In Table 26.48 bankruptcies during the last 3 years are classified according to amount groups of stated liabilities. With all partnerships the liabilities for each partner are included, but not the partnership. Company liquidations are included.

Table 26.48. BANKRUPTCIES ACCORDING TO AMOUNT

Liabilities198319841985

* Excludes 2 partnerships.

† Excludes 3 partnerships.

Nil167718
Under $2,000908878
$2,000 and under $5,000174175145
$5,000 and under $10,000206158165
$10,000 and under $20,000173181192
$20,000 and under $50,000202193194
$50,000 and under $100,0008793120
$100,000 and over110105119
No statement of amounts received18187207
               Total1 2391 157*1 238

NOTE: With partnerships the liabilities for each partner are included, but not the partnership. Company liquidations are included.

Table 26.49. OCCUPATIONAL GROUPS OF BANKRUPTS

Occupational Croup19811982198319841985
Professional, technical, and related workers1212272430
Administrative and managerial workers2128595453
Clerical and related workers95112121
Sales workers907611310096
Service workers5430448090
Agricultural, animal husbandry, and forestry workers, fishermen, and hunters568111764104
Production and related workers, transport equipment operators, and labourers189212323297326
Not gainfully employed/actively engaged116120161172146
               Occupational group total547564355812866
Partnerships121223
Annulments932--
               Total bankruptcy petitions557569869814869

Table 26.50. OCCUPATIONAL STATUS OF BANKRUPTS

YearWorking for Salary or WagesEmployer of LabourWorking On Own Account But Not Employing LabourNot Gainfully EmployedAnnulment Partnership and Status Not KnownTotal
19811628316713510557
19821601031701315569
19832548325726114869
1984242911832962814
19852961342461903869

Table 26.51. BANKRUPTCIES AND NEW COMPANY REGISTRATIONS

YearBankruptcies*New Company Registrations
Number of BankruptciesAmount Realised by Official AssigneeAmount of Debts ProvedNumber

*Since 1954 company liquidations have been included in the total.

†Public, private, and overseas.

  $(000)$(000) 
1931848217.62,084.4795
194116570.9142.0288
195114596.5273.62,020
1961425303.61,415.83,567
1971477604.43,471.75,490
19818213,449.231,024.36,753
19828814,538.831,564.06,370
19831,2395,846.554,183.56,967
19841,1596,607.851,498.59,689
1985,.1,2416,402.053,634.0..

26.6 Insurance

Life assurance

The development of life assurance has gone beyond its original function of providing a source of income for old age and for dependants in case of death. In particular, it has become increasingly important as the basis of many private superannuation schemes. Whole-life assurance has been widely supplemented by endowment assurance. Under this category there are policies with titles such as “family-income”, “education”, “mortgage-protection”, or “retirement”, and persons taking out policies regard them as a means of systematic saving.

The steady flow of funds to insurance companies by the payment of premiums are in the form of contractual saving, and the investment of these funds has become a major influence on the financial market. Life assurance companies are leading lenders of long-term funds to the private sector and important investors in Government and local authority securities. Life assurance assets in 1983-84 totalled $5,568 million, of which 21.7 percent was invested in mortgages on property, 27.0 percent in Central Government and local authority securities, and 23.7 percent in company stocks, shares and debentures.

In the year 1983-84 there were 196 812 new policies issued for a total sum assured of $8,334.4 million, or approximately $2,578 per head of population. The total number of policies in force at the end of the year was 2 803 584 for a total life assurance of $40,010 million. (These totals exclude annuities.)

The statutory provisions affecting life assurance in New Zealand are in the main contained in the Life Insurance Act 1908, the Inalienable Life Annuities Act 1910, and the Government Life Insurance Act 1953.

There are 34 life assurance offices conducting business in New Zealand at the present time. Of these, 16 are purely New Zealand institutions—namely, the Government Life Insurance Office, Capital Life Assurance Ltd, Cuna Mutual Insurance Society, National Insurance Co. of New Zealand Ltd, New Zealand Insurance Life Ltd, Metropolitan Life Assurance Co. of New Zealand Ltd, Superannuation and Mutual Savings Ltd, Primary Industries Insurance Co. Ltd, A.A. Mutual, Tasrnan Mutual Life Assurance Co. Ltd, Fidelity Life Assurance Co. Ltd, Marac Life Assurance Ltd, Equitable Life and General Insurance Co. Ltd, Invincible Life Assurance, Medical Life Assurance Society Ltd, and Greenwich Life Insurance Co. Ltd, whilst 2 Provident Life Assurance Co., and Monarch Life Insurance Co. of New Zealand, are registered in this country. The balance dates of the offices vary between July and June of the following year. The statistics given here relate exclusively to business transacted in New Zealand.

Summary of Life Business. The statistics in Tables 26.52-55 are compiled from annual returns furnished by the insurance companies for the period up to 30 June 1984. Five offices transact industrial assurance. This is essentially the same as ordinary assurance except that the premiums are payable at shorter intervals than 3 months and are usually collected personally by agents. In Table 26.52 data referring to ordinary assurance business and industrial assurance business have been amalgamated.

Table 26.52. LIFE ASSURANCE COMPANIES REVENUE AND EXPENDITURE

Item1981-821982-831983-84

*New and renewal premiums for 1981-82 were substantially influenced by a $182.9 million premium received by National Mutual Life Association of Australasia Co. Ltd, on taking over the life business of Commercial Union General Insurance Co. Ltd.

 $(thousand)
 Revenue
New and renewal premiums*702,897580,589646,026
Interest, rents, etc.390,423476,099505,019
Transfers4,5402,8246,343
               Total (includes other)1,221,6851,175,6541,541,518
 Expenditure
Claims179,305203,845210,395
Annuities3,5304,5055,078
Surrenders155,386176,887195,662
Commissions64,69880,24784,175
Other management expenses100,345118,231124,100
Rates and taxes45,87854,97591,177
Transfers3,8092,3431,866
               Total (includes other)564,930671,015730,485

Table 26.53 gives a summary of life assurance business during the latest available 5 years. Annuity policies are excluded. Of these, 549 were issued during 1983-84, and there were 3943 annuities in force at the end of 1983-84.

Table 26.53. LIFE ASSURANCE BUSINESS

YearNew Policies IssuedPolicies DiscontinuedPolicies in Force
NumberSum AssuredNumberSum AssuredNumberSum Assured

* Because of changes in the accounting procedures of some companies the value of policies existing at the end of the year will not balance.

† Includes companies previously not surveyed.

 (000)$(m)(000)$(m)(000)$(m)
1979-80*2275,229.11902,025.12,82225,593.0
1980-812085,863.22082,471.22,82328,985.0
1981-82*2127,449.62152,594.42,82234,065.8
1982-832148,790.52323,648.92,81039,423.9
1983-84*1978,334.42303,850.12,80440,010.3

Calculated on a full year basis, existing policies' annual premiums amounted to $659.4 million for 1983-84 compared with $603.4 during 1982-83, and $533.0 million during 1981-82.

Total discontinuances include surrenders and lapses, as well as policies maturing or terminated by death. Ordinary and industrial policies have been combined in Table 26.54.

Table 26.54. LIFE ASSURANCE POLICIES DISCONTINUED

Cause of Discontinuance1981-821982-831983-84
 $(million)
Death59.169.059.8
Maturity105.7144.2107.3
Surrender1,415.41,794.92,023.8
Lapse711.0967.7970.2
Other causes302.1673.1689.1
         Total2,594.33,648.93,850.2

Table 26.55. AVERAGE AMOUNT ASSURED IN LIFE POLICIES

YearAverage Amount*

* Excludes annuities and industrial policies.

    $
1978-7918,927
1979-8023,195
1980-8128,247
1981-8235,187
1982-8341,083
1983-8442,352

A prominent feature of new insurances of recent years has been the increase in the average amount of the sum assured per policy.

Reasons for the growth in the average amount of the sum assured per policy shown in Table 26.55 include the changing types of policies being issued, and the increasing numbers of such policies which have a high cover (for example, cover for staff superannuation purposes by business concerns, temporary insurance with a high death-risk cover, multiple death benefit and family benefit policies having a high initial cover, and “unit” policies whereby a single premium provides a high initial death cover). A further reason is the relatively high rate of inflation in recent years.

Liabilities and assets. The principal items in the balance sheets of life assurance companies are summarised in Table 26.56 for the 3 latest years. As in the previous tables the figures relate to New Zealand business only. In the case of some companies other branches of insurance business are included.

Table 26.56. LIABILITIES AND ASSETS OF LIFE ASSURANCE COMPANIES

Liabilities1981-821982-831983-84
 $(thousand)
Paid-up share capital6,0476,7949,311
Life assurance and annuity funds4,020,1194,518,0975,325,323
Depreciation, reserves, and other special funds65,53975,779108,721
Claims admitted, but not paid20,87823,97024,411
Other liabilities73,452111,725100,057
               Total4,186,0324,736,3625,567,821

Table 26.57. ASSETS OF LIFE ASSURANCE COMPANIES

AssetsAmountPercentage of Total
1981-821982-831983-841981-821982-831983-84
 ${millionPercent
Mortgages on property, etc.1,007.71,132.31,208.624.123.921.7
Loans on policies194.7218.9224.54.64.64.0
Central Government securities765.2848.8992.118.317.917.8
Local authority securities372.9457.2509.58.99.69.2
Real estate794.9903.91,011.619.019.118.2
Company shares and debentures843.9952.51,320.920.220.123.7
Outstanding premiums38.537.450.60.90.80.9
Interest accrued, etc.62.681.492.41.51.71.7
Cash57.245.188.61.41.01.6
Other assets48.458.968.91.11.21.2
               Total4,186.04,736.45,567.8100.0100.0100.0

From 11 February 1985 there has been no requirement for life assurance companies to hold Government stock as other prescribed investments. Prior to this date life offices were required to hold not less than 31 percent of gross selected assets in public sector investments, plus a further 20 percent of their assets in housing and farming investments.

For 1983-84 the average rate of interest earned on the life funds of insurance companies was $18.80 percent, compared with $13.72 percent during 1982-83 and $13.77 percent during 1981- 82.

In composite-insurance offices, receipts of life assurance and annuity business must be treated as a separate fund, and the interests of the policyholders are safeguarded by the fact that these funds are available only for liabilities arising from such business.

Accident insurance

Until 1974 there were 3 principal classes of accident insurance transacted in New Zealand. These were: (a) personal, covering accidents, sickness, etc.; (b) employers' liability under statutory or common law; and (c) motor vehicle insurance. Other classes of accident insurance include the insurance of plate glass, television sets, luggage, and livestock.

The Accident Compensation Act 1972, which became effective from 1 April 1974, provided continuous cover against accidents for all persons in regular employment, whether at work or not, through an earners' scheme financed by levies averaging 1 percent of incomes and payable by employers on behalf of employees. The levies replaced employers' liability premiums under the Workers Compensation Act. See Chapter 10 for a description of the Accident Compensation system.

Before 1974 there were 2 classes of motor vehicle insurance—comprehensive coverage, and compulsory third-party risks cover. Owners of motor vehicles were compelled to insure against their liability to pay damages on account of the death or bodily injury of another person caused through the car- owners' negligence. However, this compulsory scheme was replaced from 1 July 1974 by a new scheme under the Accident Compensation Act 1972. This provides financial compensation for personal injuries suffered in motor vehicle accidents irrespective of blame. It is financed by levies similar to the previous insurance premiums paid by motor vehicle owners.

The number of accident insurance offices represented in the statistics for 1983-84 was 47. The head offices of the companies concerned were in the following countries: Great Britain, 6; Australia, 9; United States, 3; Hong Kong, 1; New Zealand, 27; and Sweden, 1.

Table 26.58 shows the principal items of revenue and expenditure. Premiums and claims are net, i.e., after deductions for acceptances of reinsurance, whether effected locally or overseas, have been taken into account.

Table 26.58. ACCIDENT INSURANCE COMPANIES REVENUE AND EXPENDITURE

YearNumber of OfficesRevenueExpenditure
PremiumsOther RevenueTotal*ClaimsCommissionSalariesOther ExpensesTotal*

* Excluding reserve provisions.

$(million)
1979-8054197.816.62,144130.014.323.524.9192.7
1980-8153227.018.4245.1163.816.427.323.5231.0
1981-8251299.023.0322.0221.021.236.434.2312.8
1982-8349327.625.2352.9232.523.934.331.4322.0
1983-8447374.129.3403.5266.229.131.748.1375.0

Premium receipts in 1983-84 were 14.2 percent above the 1982-83 figure, while claims had risen by 14.5 percent.

A review of the expenses incurred in transacting all accident insurance is contained in Table 26.59. The fluctuations over a period of 5 years are shown in the form of percentages of revenue to expenditure under various heads. The percentages do not take into account reserve provisions.

Table 26.59. ACCIDENT INSURANCE COMPANIES ANALYSIS OF EXPENDITURE

YearClaims to PremiumsCommission to PremiumsSalaries to PremiumsOther Expenses to PremiumsTotal Expenses (Other Than Claims) to PremiumsTotal Expenditure to PremiumsTotal Expenditure to Total Revenue
Percent
1979-8065.77.211.912.631.797.489.9
1980-8172.27.212.010.429.6101.894.1
1981-8273.97.112.211.430.7104.697.2
1982-8370.97.310.59.627.398.391.3
1983-8471.27.88.512.929.1100.292.9

Working expenses amounted to $89,074,000 in 1981-82, $88,102,000 in 1982-83 and $97,485,000 in 1983-84. The ratio of working expenses to premium income for each of the 3 years were respectively 29.8, 26.9 and 26.1 percent. These figures include commissions, salaries and other working expenses, however, claims and New Zealand Government taxes are excluded.

Fire insurance

In 1984 there were 36 fire insurance companies conducting business in New Zealand. Of these, the head offices of 22 were in New Zealand, 6 were in Great Britian, 4 in Australia, 2 in the United States, 1 in Hong Kong, and 1 in Sweden. The statistics in this section relate to the latest financial year of each company. Fifteen of these closely approximate to the calendar year 1983 and 21 extend up to the following June.

Table 26.60 relates to the business conducted with the insuring public. Reinsurance transactions are not taken into account.

Table 26.60. FIRE INSURANCE SUMMARY OF BUSINESS

YearPolicies as at Balance DateGross Cover as at Balance DatePremium IncomeGross LossPercentage of Claims to Premium Income
 No.$(m)$(000)$(000)percent
1979-802 233 49868,516.0192,41785,24844.3
1980-812 305 63478,936.3207,96598,72447.5
1981-822 267 020103,505.4239,436134,81746.6
1982-832 305 464128,493.5380,185156,23141.1
1983-842 261 601134,435.3438,955187,54642.7

Table 26.61 shows whole-world liabilities of fire insurance companies. The figures refer to all departments of business underwritten. Funds of life departments are added for completeness, but by the Life Insurance Act 1908 life funds must be accounted for separately, and form a security for life-policy- holders which is not available for other classes of insurance transacted.

Table 26.61. LIABILITIES OF FIRE INSURANCE COMPANIES

Item1981-82 Total1982-83 Total1983-84
Overseas CompaniesLocal CompaniesTotal
 $(million)
Paid-up capital585.7608.2526.1133.9660.0
Reserves4,020.15,128.75,108.4324.45,432.8
Other liabilities8,346.710,211.39,849.71,269.811,119.5
         Total12,952.415,948.215,484.01,728.017,2120
Life funds14,362.925,207.027,362.0204.927,566.9
               Total liabilities27,315.441,155,342,846.11,932.944,779.0

Table 26.62 gives the amount of assets in New Zealand as at the end of each of the latest 5 years classified under various heads. The figures given include all investments in New Zealand securities and do not relate merely to the assets held by the New Zealand branches of the companies concerned. The assets of other departments—accident, life, marine, etc.—are also included.

Table 26.62. ASSETS OF FIRE INSURANCE COMPANIES

Assets in New Zealand1979-801980-811981-821982-831983-84
 $(million)
Real estate109.5112.2125.2142.3168.4
Central Government securities35.736.433.340.869.0
Local authority securities29.830.129.431 330.6
Company shares and debentures176.0205.6234.0272.9370.7
Mortgages, etc.73.476.183.887.172.8
Outstanding premiums70.679.7104.3131.7127.7
Cash and other assets in New Zealand89.8108.3143.3169.3270.4
               Total, New Zealand assets585.0648.4753.4875.51,109.6

Table 26.63 gives a statement of the total revenue and expenditure, both gross and net, of all offices in respect of New Zealand business. The gross figures include reinsurance business accepted, while the net figures comprise insurances with the public, plus reinsurances accepted, and less amounts reinsured with other offices.

It should be noted that at the closing date of the accounts it is customary to transfer to a reserve a proportion of the income received during the year. If the amount transferred to reserve in the latest year is greater than that transferred at the end of the previous year the net effect is equivalent to an increase in the latest year's expenditure and appears in the statement of net expenditure. Similarly, if the amount transferred in the latest year is less than in the previous year, the net effect appears in the statement of net revenue.

Table 26.63. FIRE INSURANCE COMPANIES REVENUE AND EXPENDITURE

Item1982-831983-84
GrossNetGrossNet
Revenue$(thousand)
Change in reserve provisions...273...2,307
Amount of fire premiums received during year343,935249,153404,239286,408
Interest and dividends...28,541...37,502
Rents...2,656...3,309
Other revenue...3,636...4,453
             Total343,935284,258404,239333,974
Expenditure    
Change in reserve provisions28,12221,65420,23114,094
Amount of fire claims paid during year, including adjustment and other expenses of settlement, but less salvage169,204130,287205,020142,827
Fire Service Commission levies30,47026,91936,32132,523
Central Government taxes7,7697,85812,14512,044
Rents3,3653,3653,8663,866
Depreciation2,6682,6673,5833,582
Allowance and commissions on premiums to agents, subagents, and others33,40316,73040,12224,197
Salaries and wages, including commissions, on profits or bonuses37,63337,65441,52440,670
Other expenses of management22,81524,26727,42036,859
             Total335,451271,404390,232310,665

Government life insurance

The New Zealand Government Life Insurance Office was founded in 1869 at a time when New Zealanders had comparatively poor facilities in regard to life assurance. The payment of all policies has always been guaranteed by the Government. A major change occurred in the management of the Government Life Insurance Office on 1 October 1983 when it became a corporation. The Government Life Insurance Corporation Act 1983 provides for the appointment of a Minister in charge of the corporation, a board of 6 directors appointed by the Governor-General on the recommendation of the Minister for a term of 3 years, and a managing director who will also act as deputy chairman. One of the appointed director acts as chairman.

At the end of September 1983, policies numbered 432 695 and the total sum assured reached $4,843 million.

Table 26.64. GOVERNMENT LIFE INSURANCE INCOME AND EXPENDITURE

YearPremium Income (Including Purchase of Annuities)Total IncomeManagement Expenses and CommissionsTotal ExpenditureRatio of Management Expenses to Total IncomeRatio of Management Expenses to Premium Income
 $(thousand)percent
197951,83196,19012,15452,46512.6423.45
198056,468112,30913,92259,52212.4024.65
198164,503131,24016,49176,26812.5725.57
198266,307140,34618,75179,33813.3628.28
198353,111115,25714,12164,71512.2526.59

During the year ended September 1983, 6021 policies became claims by death of the life assured or by maturity. The amount paid in respect of these claims was $21,598,000. A further sum of $1,023,000 was paid to annuitants, and $16,702,000 was paid to policyholders who cashed bonuses or surrendered policies.

Annuities are included, but bonuses are excluded in Table 26.65.

Table 26.65. GOVERNMENT LIFE INSURANCE ANNUAL BUSINESS

YearNew BusinessPolicies DiscontinuedPolicies in Force at End of Year
Number of PoliciesSum AssuredAnnual* PremiumsNumberSum AssuredAnnual PremiumsNumberSum AssuredAnnual Premiums

* Excludes single premiums.

  $(m)$(m) $(m)$(m) $(m)$(m)
197930,934500.15.029,783201.02.6467,2142,861.746.7x
198027,374578.38.631,407199.94.2463,1813,240.151.1x
198126,734750.010.036.177279.85.8453,7383,710.355.3
198225,595860.712.038,085349.86.3441,2484,221.161.0
198317,065538.97.325,618310.85.4432,6954,449.563.0

Table 26.66 shows the progress of business of the Government Life Insurance Office from the date of establishment in 1869.

Table 26.66. GOVERNMENT LIFE INSURANCE TOTAL BUSINESS

 PoliciesAnnuities
NumberSum AssuredReversionary BonusesAnnual Premiums
 $(million)$(000)
Total issued1 213 0397,2174610.4118,13833,078
Total void780,3442,768.3216.855,16625,528
Total in force at 31 Dec 1982432,6954,449.1393.662,9727,550

Table 26.67. GOVERNMENT LIFE INSURANCE TOTAL ASSETS

Class of InvestmentYear Ended 30 September
AmountPercentage
198119821983198119821983

* Mainly premiums and interest due and accrued interest.

Mortgages on property182.0192.6194.027.6827.0325.20
Loans on policies31.934.636.74.864.864.77
Government securities129.4131.0146.319.6818.3819.00
Local authority securities62.174.079.09.4410.3910.26
Real estate136.5145.3150.220.7620.3919.5.1
Company shares and debentures92.3116.0136.414.0416.2817.72
Miscellaneous assets*23.319.027.23.542.673.54
               Total657.5712.5769.9100.00100.00100.00

State Insurance Office

The State Insurance Office is empowered to carry on any class of insurance business other than life assurance. As the State Fire Office it commenced business in 1905. In 1925 accident business was transferred to it from the Government Life Insurance Office and since 1947 it has undertaken marine insurance.

Table 26.68. STATE INSURANCE OFFICE BUSINESS

YearNet PremiumsClaimsWorking Expenses

* Includes taxation.

 $(thousand)
197980,31949,42616,703*
198089,38062,39512,238
1981113,08179,31715,229
1982141,19993,81618,276
1983158,518111,24518,476

As was the case with private accident insurance companies, the main classes of accident insurance transacted by the State Insurance Office prior to 1974 were motor vehicle (comprehensive and third- party risk), employer's liability, personal accident, public risk, and plate glass. With the implementation of the Accident Compensation Act on 1 April 1974, all classes of business involving the insurance of liability fur personal injury by accident ceased to be risks insured by the office. The major classes of business affected were employer's liability insurance and Transport Act insurance.

The total assets of the State Insurance Office at 31 December 1983 amounted to $221.1 million, which included $126.1 million in the form of investments ($19.4 million in Government securities, $11.0 million in local body securities), and $68.1 million in fixed assets, mainly land, buildings, and plant. Of the total liabilities, reserves amounted to $101.1 million, unexpired risks to $73.2 million, and unadjusted claims to $18.3 million.

Earthquake and war damage insurance is administered by the Earthquake and War Damage Commission whose activities are described in Chapter 10.

Table 26.69. EARTHQUAKE AND WAR DAMAGE INSURANCE FINANCIAL STATEMENT

Item1980-811981-821982-831983-841984-85

*At end of each period.

 $(thousand)
Income—
    Premiums—
        Earthquake and war damage34,52344,51251,34863,37766,248
        Disaster3,8374,9475,7277,0447,361
    Interest39,35848,23462,88782,754106,614
        Discount on investments---5,50615,952
               Total77,71897,693119,962158,681196,175
Expenditure—
    Increase in provision for unearned premium1,7566,0045,7243,5662,112
    Other adjustments on overseas investments-9081,720-6,273--
    Claims—
    Earthquake and war damage55954145237104
    Disaster7041,6746678,2241,789
    Salaries and expenses of management17022723524.1248
    Discount to insurance offices9581,2221,4861,6811,814
               Total3,23910,9011,98413,9526,067
Surplus74,48086,793117,978144,730190,108
Earthquake and War Damage Fund*480,786564,668676,780820,4891,001,319
Disaster Fund*10,27213,66119,52820,54929,829

26.7 Census of Services (insurance) 1982-83

The first economic Census of Services (Insurance) formed part of the first series of integrated economic censuses of business activities in New Zealand being carried out by the Department of Statistics over a five-year period. The census covered the activities of all businesses classified into Division 82 of the New Zealand Standard Industrial Classification. A summary of results is given below according to the various industrial classifications.

Life insurance (industry 82110). This division covers businesses primarily providing life insurance cover, life reinsurance, and mortgage repayment insurance. Also included are other “insurance” activities carried out by those businesses, such as industrial insurance, personal accident insurance, and superannuation funds operated on behalf of others.

Table 26.70. LIFE INSURANCE: INDUSTRY COVERAGE 1982-33

 Number
Enterprise Groups in the industry36
Enterprises within those groups41
Activity units (e.g. offices, etc.)274
Ancillary activity units7
Persons engaged within those activity units—full-time3,044
      —part-time218
Self-employed commission agents—full-time2,856
      —part-time154

Table 26.71. LIFE INSURANCE: INDUSTRY VALUES. 1982-83

Income— $(000)
    Premiums and Superannuation contributions net of reinsurance654,342 
    Interest345,189 
    Dividends56,999 
    Rent and leasing (Gross)83,925 
    Management fees9,645 
    Other Income1,727 
               Total Income 1,151,827
Operating Expenses—  
    Claims, payments and pensions—on maturity130,667 
      —on death/accident89,135 
      —on surrender183,965 
    Salaries and wages55,748 
    Commissions—self-employed agents81,568 
    —other8,579 
    Employer contributions10,702 
    Interest1,073 
    Depreciation20,881 
    Indirect taxes8,778 
    Insurances396 
    Donations and grants183 
    Management fees17,435 
    Other operating expenses75,945 
               Total Operating Expenses 685,057
Balance of Income over Operating Expenses for the year 466,771
Plus—Net Gains from revaluation of financial and fixed assets34,603 
  —Net Gains on sale of financial and fixed assets and exchange transactions31,75466,357
               Subtotal 533,128
Less—Net transfers to Reserves436 
  —Policy transfers to Overseas Branches6,262 
  —Income tax52,518 
  —Dividends and Bonuses/to Shareholders2,37861.593
               Increase in Policyholders' Funds 471,534
               End of Year Value of Policyholders' Funds 4,484,297

Table 26.72. EXPENSES OF REAL ESTATE PROPERTY ACTIVITIES OF LIFE INSURANCE COMPANIES

Gross Rental IncomePercent
Wages1.98
Rates8.67
Other operating expenses12.00
Gross margin before interest and depreciation77.35
 100.00

Table 26.73. LIFE INSURANCE: INDUSTRY SIZE-GROUP ANALYSIS—PERSONS ENGAGED, 1982-83

Persons Engaged per Enterprise Size CroupsEnterprisesUnitsPersons Engaged at End of February 1983Total Income per Fulltime Equivalent Persons EngagedBalance of Income per Fulltime Equivalent Persons EngagedBalance of income per Total Income*
ActivityAncillary

* Total income less operating expenses.

    No.No.No.No.No.$$$
    01073-......17.3
  1-9910-37414,261194,69247.0
  10-396122108191,71270,16936.6
40-99513-296240,55780,95433.7
100-1996812837262,946103,29939.3
200 and over5151-1,984418,747177,32842.3
         Total4127473 262365,312148,04040.5

Medical insurance (industry 82120). This division covers benefit societies providing medical, hospital and dental insurance, and funeral benefits. Included are employee benefit, benevolent and welfare societies, and friendly societies.

Table 26.74. MEDICAL INSURANCE—INDUSTRY COVERAGE, 1982-83

 Number
Enterprise groups in the industry33
Enterprises within those groups41
Activity units (e.g. offices, etc.)64
Ancillary activity units0
Persons engaged within those activity units—full-time198
      —part-time18
Self-employed commission agents—full-time124
    —part-time46

Table 26.75. MEDICAL INSURANCE—INDUSTRY VALUES, 1982-83

Income— $(000)
    Premiums, levies and contributions received49,141 
    Interest7,403 
    Dividends, rents and other income541 
               Total Income 57,086
Operating Expenses—
    Claims and benefits paid38,102 
    Salaries and wages2,533 
    Commissions2,013 
    Employer contributions91 
    Interest54 
    Depreciation423 
    Indirect taxes86 
    Donations and grants172 
    Management fees414 
    Other operating expenses2,153 
               Total Operating Expenses 46,042
Balance of Income over Operating Expenses for the year 11,044
Less—Net transfers to Reserves and Income Tax 206
               Increase in Funds 10,838
               End of Year Value of Funds 60,233

Table 26.76. MEDICAL INSURANCE—INDUSTRY ACTIVITY ANALYSIS. 1982-83

Type of EnterpriseEnterprise GroupsActivity UnitsPaid EmployeesStart of Year Value of Funds 1982Total IncomeTotal Operating ExpensesNet Transfers to and from Reserves, etc.End of Year Value of Funds 1983
 No.No.No.$(000)$(000)$(000)$(000)$(000)
Private Benefit Societies112821415,83848,37841,374+ 18223,024
Employee Benefit Societies91423,7804,0622,550-5374,755
Friendly Societies1422-29,7764,6462,118+ 15232,456
               Total336421649,39457,08646,042-20660,233

Fire and general insurance (industry 82130). This division covers businesses providing fire insurance cover for commercial and domestic properties; motor vehicle insurance cover; aviation insurance cover; and other fire and accident insurance. It also covers businesses concerned primarily with fire and general reinsurance.

Table 26.77. FIRE AND GENERAL INSURANCE—INDUSTRY COVERAGE, 1982-83

 Number
Enterprise groups in the industry43
Enterprises within those groups55
Activity units (e.g. offices, etc.)398
Ancillary activity units9
Persons engaged within those activity units—full-time5,042
      —part-time209

Table 26.78. FIRE AND GENERAL INSURANCE—ANALYSES BETWEEN GROSS PREMIUMS WRITTEN/NET PREMIUMS EARNED AND GROSS/NET CLAIMS INCURRED 1982-83

*IBNR denotes “Incurred but not received.”

Premiums—$(000)
    Gross written premiums, less local facultative reinsurance ceded709,942
        Adjusted for other reinsurance premiums— 
                N.Z. resident offices—received from+14,528
      —ceded to-38,824
                Off-shore—received from+ 14,658
    —ceded to-93,596
                Net written premiums606,708
        Adjusted for movement in unearned premium reserve-41,137
                Net premium earned565,571
    Gross incurred claims, less local facultative reinsurance recoveries436,147
        Adjusted for other reinsurance claims incurred— 
                N.Z. resident offices—paid to+ 7,009
      —recovered from-15,932
                Off-shore—paid to+ 9,539
    —recovered from-71,343
                Subtotal365,419
        Adjusted for IBNR* and other internal adjustments+ 8,601
                Net incurred claims374,020

Table 26.79. FIRE AND GENERAL INSURANCE—INDUSTRY VALUES IN ACCOUNTING TERMS. 1982-83

*Net gain on extraordinary items (14 129 gains less 631 losses)

Operating Expenses$(000)
    Net incurred claims374,020
    Fire Services levy27,512
    Salaries and wages81,617
    Commissions and brokerage55,821
    Employer contributions10,977
    Interest2,120
    Depreciation6,290
    Indirect taxes1,408
    Insurances722
    Donations and grants124
    Management fees4,802
    Other operating expenses52,619
      Total Operating Expenses618,032
Income$(000)
    Net premiums earned565,571
    Interest35,028
    Dividends31,748
    Rent and leasing (Gross)7,649
    Management Fees6,933
    Reinsurance Commissions17,910
    Other Income3,565
      Total Income668,405
               Net Profit, before tax and extraordinary items*50,372
Fixed Tangible Assets
    Additions during year27,181
    Disposals during year6,439
    Book value at end of the year134,446
 13,499

Table 26.80. FIRE AND GENERAL INSURANCE—INDUSTRY VALUES IN ECONOMIC TERMS (NZSNA). 1982-83

* This Value Added represents 0.4 percent of New Zealand Gross Domestic Product (GDP) for the year ended March 1983.

Operating Surplus— $(000)
    Total Income 668,405
    Total Operating Expenses618,032 
    Less Donations and grants124617,909
               Operating Surplus 50,496
Value Added— $(000)
    Operating Surplus50,496 
    Fire Services Levy27,512 
    Salaries and wages81.617 
    Employer contributions10,977 
    Depreciation6,290 
    Indirect taxes1,408 
               Value Added 178,301*

Superannuation and pension funds (industry 82210). This division covers the operation of recognised superannuation, pension and mutual funds. The figures include the operations of the Government Superannuation Fund and the National Provident Fund. Tables 26.81 and 26.82 list the general coverage of the industry.

Table 26.81. SUPERANNUATION AND PENSION FUNDS—INDUSTRY COVERAGE, 1982-83

 Number
Enterprise groups/enterprises within the industry1,950
Activity units1,950
Persons engaged58

Table 26.82. SUPERANNUATION AND PENSION FUNDS—INDUSTRY VALUES, 1982-83

Income— $(000)
    Members' contributions334,283 
    Employers' contributions328,154 
    Interest321,266 
    Dividends65,474 
    Rent and leasing26,276 
    Other income31,049 
               Total Income 1,106,501
Operating Expenses—
    Claims, payments and pensions—on maturity or retirement303,734 
    —on death/disability7,804 
    —on surrender120,916 
    Salaries and wages748 
    Commissions, all kinds173 
    Interest39,784 
    Depreciation1,659 
    Employer contributions and indirect taxes622 
    Insurances2,883 
    Management fees2,525 
    Other operating expenses3,928 
               Total Operating Expenses 484,777
    Balance of Income over Operating Expenses for the year 621,724
Plus Net gains:
  —from exchange transactions423 
  —from revaluation of assets27,791 
  —on sale of assets12,826 
  —on transfers from reserves7141,111
               Subtotal 662,835
Less—Income tax 26
               increase in Funds 662.810
               End of Year Value of Funds 4,137,328

Services to insurance and superannuation (industry 32301). This division covers insurance broking and agency services; adjustment (loss adjusters), assessing and consultancy services; the selling of insurance on a commission or fee basis (other than self-employed commission agents who do not employ labour); the management of pension and superannuation funds on a commission or fee basis; other services not elsewhere classified.

Table 26.83. SERVICES TO INSURANCE AND SUPERANNUATION—INDUSTRY COVERAGE. 1982-83

 Number
Enterprise groups in the industry341
Enterprises within those groups413
Activity units, (e.g. offices, etc.)494
Ancillary activity units3
Persons engaged within those activity units: 
    Working proprietors/partners—full-time312
      —part-time92
    Paid employees—full-time1,164
    —part-time263
    Self-employed commission agents—full-time145
      —part-time724

Table 26.84. SERVICES TO INSURANCE AND SUPERANNUATION—INDUSTRY VALUES. 1982-83

Income— $(000)
    Interest7,068 
    Dividends394 
    Renting and leasing638 
    Commissions and brokerage53,209 
    Management fees3,292 
    Other Income11,781 
               Total Income 76,382
Operating Expenses—
    Salaries and wages21,730 
    Commission, to self-employed agents4,544 
    Employer contributions1,452 
    Interest641 
    Insurance767 
    Depreciation1,498 
    Indirect taxes183 
    Bad debts, royalties, etc.226 
    Management fees1,678 
    Other Operating Expenses21,245 
               Total Operating Expenses 53,961
Net Profit—
    Balance of Income over Operating Expenses for the year 22,421
Plus—Gains in extraordinary transactions 323
               Subtotal 22,744
Less—Salaries and wages paid to working proprietors and partners 6,144
Net Profit, after adding extraordinary items and deducting salaries and wages paid to working proprietors and partners 16,600

Further information

Banking, Monetary Policy, and Overseas Exchange

Census of Services 1982-83—Department of Statistics.

Economic Trends and Policies—New Zealand Planning Council, Economic Monitoring Group (periodic).

External Economic Structure and Policy—Reserve Bank of New Zealand (1981).

Financial Policy Reform—Reserve Bank of New Zealand (1986).

Financial Statement, (“Budget”, Parl, paper B. 6).

Inflation—New Zealand Monetary and Economic Council (1977).

Monetary Policy and the New Zealand Financial System—Reserve Bank of New Zealand (2nd ed., 1983).

Monthly Abstract of Statistics—Department of Statistics.

New Zealand News Review—Reserve Bank of New Zealand (four-weekly).

Report of the Bank of New Zealand (Parl. paper B. 15).

Report of the Development Finance Corporation of New Zealand (Parl. paper B. 26).

Report of the Post Office (Parl. paper F. 1).

Report of the Reserve Bank of New Zealand (Parl. paper B. 16).

Report of the Small Business Agency (Parl. paper B. 26A).

Reserve Bank of New Zealand Bulletin—Reserve Bank of New Zealand (monthly).

Weekly Statistical Release—Reserve Bank of New Zealand (weekly). Refer also to the bibliography New Zealand Books—near the back of this Yearbook.

Investment and mortgages

Monthly Abstract of Statistics—Department of Statistics

Report of the Department of Justice (Parl. paper E. 5).

Report of the New Zealand Fishing Industry Board (Parl. paper C. 6).

Report of the Registrar of Building Societies (Parl. paper B. 14).

Report of the Registrar of Friendly Societies and Credit Unions (Parl. paper B. 18).

Report of the Rural Banking and Finance Corporation of New Zealand (Parl. paper C. 6).

Companies and bankruptcy

Monthly Abstract of Statistics, May 1985, Appendix III (Bankruptcies)—Department of Statistics.

Report of the Department of Justice (Parl. paper E. 5)

Insurance

Census of Services, Finance and Insurance, 1933—Department of Statistics.

Insurance Statistics—Department of Statistics (annual).

Monthly Abstract of Statistics, July 1985, Appendix III (Life Insurance), Appendix IV (Fire and Accident Insurance)—Department of Statistics.

Report of the Earthquake and War Damage. Commission (Parl. paper B. 11).

Report of the Government Life Insurance Corporation (Parl. paper B. 22).

Report of the State Insurance Office (Parl. paper B. 21).

Chapter 27. 27 Public sector finance

27.1 Central government finance

The central government is concerned with the future of the nation and therefore with the economic, social, and cultural development of the people as a whole and the quality of their environment. In New Zealand the State is fairly broadly concerned in national development and social welfare. The central government budgets for, and controls expenditure on, capital works such as electricity supply, land settlement, housing, public buildings, forest development, railway and road construction, and telecommunications, and other functions such as social welfare, health, education, defence, and paying interest on the public debt.

Taxing, charging, and borrowing are the 3 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 expenditure, such as subsidies and transfer payments (for example, pensions, superannuation payments, and family 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, a high level of 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.

The central government, by budgeting for a surplus (revenue exceeding expenditure) or a deficit, or by varying the impact of taxation on the level of Government expenditure on certain sectors of the economy, is able to regulate internal economic activity.

Structure of the public accounts

The general structure of the public accounts is in the form established by the Public Finance Act 1977 effective from 1 April 1978. The public accounts comprise 6 accounts in place of the 7 which formerly appeared. These 6 are as follows:

Consolidated Account and National Roads Fund. Before the coming into force of the Public Finance Act 1977 there were 3 general accounts: the Consolidated Revenue Account (now renamed the Consolidated Account), the National Roads Fund (non-trading account), and the Works and Trading Account.

All taxation is credited to either the Consolidated Account or the National Roads Fund. The Consolidated Account also receives most miscellaneous revenues, and ordinary Government expenditure is debited to it. Previously the Works and Trading Account received all the trading, revenues of the trading enterprises within the Public Account, met their operating costs and capital expenditure, and also met the expenditure by administrative departments on capital works such as water and soil conservation, the development of natural resources, airports, some roading, and public buildings. The funds available in the Works and Trading Account for works were supplemented by transfers from the National Development Loans Account (now the Loans Account), capital equipment credit arrangements, and contributions from the Consolidated Account.

Under the Public Finance Act 1977 the basic form of the public accounts was changed by the abolition of the Works and Trading Account. This was accomplished by providing separate bank accounts outside the Public Account for the Ministry of Energy (in respect of the trading activities of the Electricity Division and the State Coal Mines) and the Railways Corporation, and transferring the remaining activities to the Consolidated Account.

The National Roads Fund was retained unchanged under the restructuring. Highways taxation is credited to the National Roads Fund, which meets both capital and maintenance expenditure on roading, but a proportion of the motor spirits duty and the mileage tax is credited to the Consolidated Account.

Loans Accounts. There are 2 loan accounts, the Loans Account and the Loans Redemption Account. The Loans Account receives loan money raised for works and development. A proportion of this is transferred to the Consolidated Account, and most of the balance is advanced by way of capital to the Housing Corporation, the Rural Banking and Finance Corporation, the Ministry of Energy, and other State enterprises outside the public account.

Money received into the Loans Redemption Account includes an annual contribution from the Consolidated Account towards the repayment of the public debt, the proceeds of every issue of Treasury bills, and money borrowed for the purpose of repaying or converting loans to the Crown. The main purpose of the account is the repayment or conversion of loans, but money not required for these purposes may be transferred to the Loans Account.

Reserve Account and Trust Account. Any money in the Consolidated Account regarded as surplus to the immediate requirements of the account may be transferred to the Reserve Account and invested in New Zealand or overseas. The Minister of Finance has authority to realise these investments and retransfer the proceeds to the Consolidated Account at his discretion.

Money held in trust or awaiting disposal is paid into the Trust Account. Funds in the Trust Account may be invested in Government or other approved securities.

Suspense Account. In addition to these 6 accounts there is a Suspense Account, This is simply a holding account for receipts banked to the credit of the Public Account but not yet allocated to 1 of the 6 accounts.

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

Table 27.1 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.

It is to be remembered that the Public Account as shown in this section is 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.

Fuller explanations of some items are given with the similar table in the Budget (Parl. paper B. 6).

Table 27.1. GOVERNMENT EXPENDITURE: PUBLIC ACCOUNT

Item1982-831983-841984-85
GrossNet*GrossNet*GrossNet*

*Net expenditure is generally arrived at by deducting trading and departmental receipts from gross expenditure.

†Milk subsidy now funded through Vote: Agriculture and Fisheries.

‡Includes decreases in the imprest accounts of $4.3 million in 1982-83, and $0.7 million in 1983-84, and an increase of $30.0 million in 1984-85.

Source: The Treasury.

 $(million)
Administration—
    General administration393.5333.6441.9386.0501.0420.4x
    Law and order325.8266.3335.9271.3366.6292.1
    Government services245.3195.3237.2165.3261.6179.4
    Miscellaneous services63.414.152.98.714.610.9
    Stabilisation23.223.29.99.9
 1,051.2832.51,077.88,4121,143.8902.8
Foreign relations—
    Defence652.1644.1673.0660.2756.4745.1
    Foreign Affairs169.0164.1175.2169.2201.5196.8
 821.1808.2848.2829.4957.9941.9
Development of industry—
    Land use992.8687.71,287.4986.21,245.8838.7
    Fuel and power1.187.3282.61,343.8340.71,522.0260.6
    Other industrial services488.9459.5591.1555.5657.5613.2
 2,669.01,429.83,222.31,882.43,425.31,712.5
Education—
    Education1,652.41,638.81,690.51,674.31,746.91,728.6
Social services—
    Social Welfare3,700.23,673.34,005.73,973.94,387.04,352.7
    Other social services135.770.9144.875.5266.3104.8
 3,835.93,744.24,150.54,049.44,653.34,457.5
Health—
    Health1,767.91,766.11,807.91,804.91,914.51,911.5
Transport and communications—
    Transport597.5491.9706.9537.2663.0545.7
    Communications1,053.23.71,100.1(0.1)1,449.7(2.4)
 1,650.7495.61,807.0537.12,112.7543.3
Debt services and miscellaneous—
    Debt services1,492.61,492.62,041.92,041.92,562.62,562.6
    Miscellaneous investment transactions94.656.8227.0198.5158.6152.7
    Miscellaneous financing transactions407.9407.9390.7390.7404.1404.1
 1,995.11,957.32,659.62,631.13,125.33,119.4
               Total15,443.312,672.517,263.814,250.019,079.615,317.5

Table 27.2. GOVERNMENT EXPENDITURE AND HOW IT IS FINANCED

Item1982-831983-841984-85

*Net expenditure as in previous table.

† Includes the sale by the Reserve Bank of $9.5 million of Government securities in 1980-81, the purchase of $554.5 million of securities in 1981-82, and the sale of $480.6 million of securities in 1982-83.

‡Excludes suppliers' credit and currency realignment adjustments.

Source: The Treasury.

 $(million)
Expenditure*
    Administration832.5841.3902.7
    Foreign relations808.2829.4941.9
    Development of industry1,429.81,882.41,712.5
    Education1,638.81,674.31,728.6
    Social Services3,744.24,049.44,457.5
    Health1,766.11,804.91,911.5
    Transport and communications495.6537.2543.3
    Debt services and miscellaneous investment transactions1,549.42,240.42,715.3
            Subtotal12,264.613,859.314,913.3
Miscellanéous financing transactions407.9390.7404.1
            Total expenditure12,672.514,250.015,317.4
Financed from
    Taxation—
    Income tax7,455.57,453.38,348.5
    Customs, sales tax, and beer duty1,872.72,117.82,564.6
    Highways tax233.0242.3334.1
    Motor spirits tax184.4224.1224.8
    Other taxation351.9393.7441.6
            Total taxation10,097.510,431.211,913.6
    Interest, profits, and miscellaneous receipts808.1718.1620.5
            Total taxation, interest, etc.10,905.611,149.312,534.1
    Amount to be financed from borrowing1,766.93,100.72,783.5
Borrowing in New Zealand3,974.95.093.14,887.9
  Less repayments in New Zealand2,290.92,526.72,999.6
1,684.02,566.41,888.3 
  Plus sales (less purchases) of investments-555.4-184.4-386.1
    Net borrowing in New Zealand+ 1,128.6-2,382.0+ 1,502.2
    Internal surplus (+) deficit (—)-638.3-718.7-1,281.3
Borrowing overseas2,797.51,702.75,003.5
  Less repayment overseas1,574.81,019.33,563.9
1,222.7683.41,439.6 
  Plus sales (less purchases) of overseas investments-580.9+37.5-137.3
    Net borrowing overseas641.8720.81,302.3
    Cash surplus (+) deficit (-)+ 3.5+2.2+21.0

Table 27.3 shows details of expenditure from the principal public account, the Consolidated Account. Most of the revenue of the Consolidated Account is derived from taxation. This is shown in detail in section 27.2.

Table 27.3. GOVERNMENT EXPENDITURE: CONSOLIDATED ACCOUNT

ItemYear Ended 31 March
1982198319841985

*The total claim on the Reserve Bank indemnity for 1984-85 includes full payment for realised and unrealised exchange losses. In previous years only realised losses were settled. The policy of settling the indemnity by the issue of non-interest bearing stock was discontinued. For 1985 settlement has been made by a cash payment from the Consolidated Account rather than Loans Account.

†In terms of Section 52A of the Public Finance Act 1977. the revolving fund for procurement and supply of stationery was from 1 April 1982 extended to all activities. Thus receipts are now credited to the Trust Account. The payment records the transfer of part of the sum appropriated by Parliament for the purposes of the fund.

‡Programme V Electoral. From 1 April 1980 the cost of preparing the electoral rolls has been incorporated in the Post Office vote. Previously it was part of the Justice vote.

Source: The Treasury

Permanent appropriations—$(thousand)
    Under Special Acts, Legislature—
    Civil List4,7874,9004,9835,408
Debt services—
    Interest1,202,9281,475,7922,014,8752,530,033
    Transfer to Loans Redemption Account116,171143,814187,328218,787
    Administration and management8,11216,82226,97732,591
               Total—Debt services1,327,2111,636.4282,229.1802,781.411
    Superannuation89,58368,975112,901130,871
    Miscellaneous51,54052,00149,921797,289*
               Total—Permanent appropriations1,473,1211,762.3042,396.9853,714,979
Annual appropriations—
    General Administration—
      Vote—
      Accident Compensation99105105119
      Audit5,0705,7086,0337,072
      Broadcasting155180195187
      Building Performance Guarantee Corporation18191919
      Commission for the Environment9951,0611,1021,339
      Government Life Insurance Corporation....1032
      Customs26,47231,01532,59634,685
      Inland Revenue60,75267,66368,52173,436
      Internal Affairs75,47371,64164,62174,143
      Legislative10,38512,36212,24112,693
      Prime Minister's Department1,6051,8402,0172,094
      Railways-10210287
      State Services Commission82,22185,03965,67165,620
      Statistics24,25516,99516,94417,861
      Treasury12,13512,84213,04714,574
      Valuation12,29813,30013,95514,319
               Total—General administration311,933319,872x297,179318,280
    Law and order—
      Vote—
      Crown Law1,8672,2012,5012,859
      Justice121,650130,702135.859153,871
      Police169,374181.223185,703196,978
      Security Intelligence Service3,8794,4264,3774,589
               Total—Law and order296,770318.552328,440358,297
    Government services—
    Vote—
      Government Printing Office35,1416,5457,61211,410
      Works and Development179,052204,130181,145193,380
               Total—Government services214,193210,675188,757204,790
    Stabilisation—
    Vote—
            Stabilisation126,49423,2419,940 
               Total—Administration949,390872,340824.316881.367
    Foreign relations—
    Defence—
      Defence593,647652,131672,978756,408
    Foreign Affairs—
    Foreign Affairs142,531168,662174,856201,237
               Total—Foreign relations736,178820,793847.834957.645
    Development of industry—
    Land use—
      Agriculture and Fisheries328,681526,325792,957635,955
      Forest Service236,084258,833281,493369,687
      Lands and Survey124,426131,357143,569148,446
      Maori Affairs31,46733,59536,92235,535
      Rural Banking and Finance Corporation15,54714,56412,527x27,875
               Total—Land use736,205964,6741,267.4681,217.498
    Fuel and power—
    Energy178,508188,877277,230110,729
    Other industrial services—
    Labour252,070300,753393,342454,970
    Scientific and Industrial Research82,19294,39399,126105,124
    Tourist and Publicity19,25419,93825,99230,042
    Trade and Industry69,17272,96371,60466,387
               Total—Other industrial services422,688488,047590,064656,523
               Total—Development of industry1,337,4011.641,5982,134.7621,984.750
    Education—
    Education1,503,8601,652,3731,690,4881,746,868
    Social services—
    Housing Corporation73,77772,73780,056171,217
    Internal Affairs7,8206,7334,5562,932
    Maori Affairs26,42027,71229,85031,838
    Social Welfare2,990,9943,700,2584,005,6584,386,995
               Total—Social services3,099,0113,807,4404,120,1204,592,82
    Health—
      Health1,603,1181,767,7511,807,8911,914,293
    Transport and communications—
    Transport—
      Roads, etc.41,81041,76299,54832,846
      Transport148,438282,632270,227257,165
    Post Office7,2134,9893,9899,148
               Total—Transport and communications197,461329,383373,764299,159
               Total—Annual appropriations9,426,41910,891,67811,799,17512,377,064
    Unauthorised expenditure50,00013088241
    Transfer to Reserve Account100,000308,500--
    Capital losses on investments (net)----
    Exchange differences on overseas transactions74,30429,711Cr:23,31970,087
               Total payments11,123,84412,992,32314,172,92916,162,371

Table 27.4. LOANS ACCOUNTS: RECEIPTS AND PAYMENTS

ItemYear Ended March
198319841985

* Includes capital equipment credit arrangements.

†The principal features of the “tap” issue method of selling Government stock are that each issue remains open for subscription for up to 6 months, and that the issue price is adjusted monthly so that the yield reflects the period to maturity for which stock is actually held.

‡For 1984 settlement of the Reserve Bank Indemnity has been included as a permanent appropriation payment in the Loans Account. For comparative purposes the settlement for 1983 has also been included as a permanent appropriation payment. For 1985 settlement has been made by a cash payment from the Consolidated Account.

Sources: The Treasury

      Receipts$(thousand)
Loans raised—
    In New Zealand2,973,8465,244,5235,403,302
    Overseas*2,341,2711,726,047x2,854,288
    Loans subscriptions unallocated211--
International Finance Agreements Act 1961—
    Non-negotiable, non-interest-bearing stock and notes issued to international financial institutions51,885203,6466,913
Premiums on “tap” issues216- 
Securities issued: Reserve Bank indemnity391,089116,703-
               Total receipts5,758,5187,290,9198,264,503
            Payments   
Permanent appropriations—
    Subscriptions—ADB-1,0401,401
    —IBRD370412539
    —IMF345,376-
Encashment of securities—ADB6,23040100
      —IBRD100100120
Charges and expenses of raising loans
    New Zealand51,049x87,965345,584
    Overseas24,863x20,69157,754
Reserve Bank Indemnity391,089116,703
               Total, permanent appropriations473,704272,327405,498
Annual appropriations—
    Development of industry—
    Energy252,842268,601233,290
Social services—
    Housing Corporation28,40030,20060,200
Miscellaneous investment and financing transactions—
    Capital participation—
    Bank of New Zealand19,25019,250-
    New Zealand Steel Development Ltd.24,115125,00096,000
    Petroleum Corporation of New Zealand Ltd.40,77531,53858,057
    Tourist. Hotel Corporation of New Zealand3,1904,2942,430
    Housing Corporation120,880139,700229,100
    Rural Banking and Finance Corporation287,000251,000175,000
               Total, annual appropriations776,452869,583854,077
Loan receipts from previous year allocated-211-
Capital equipment purchased under credit arrangements67,759116,56270,032
Transfer to consolidated account1,500,0002,430,0002,115,000
Transfer to loans redemption account2,880,0003,390,0004,785,000
Security in favour of—
    Asian Development Bank (ADB)-1,5382,083
    International Bank for Reconstruction and Development (IBRD)3,3313,6634,830
    International Monetary Fund (IMF)48,554198,445-
               Total payments5,749,8007,282,3298,236,520
    Excess of receipts over payments8,7188,59027,983
 5,758,5187,290,9198,264,503

Works programme and roading expenditure

Details of the works programme and roading expenditure are shown in Table 27.5. The table concentrates on capital works spending and is related more closely to the Estimates of Expenditure. It presents capital works data as it appears before Cabinet, i.e., on a works programme basis. Only those programmes coming within the purview of the Public Finance Act 1977 appear.

The classification “Accounts Outside the Public Account” used in the table refers to works programmes of organisations which are at least partly funded from accounts outside the Public Account. “Accounts Inside the Public Account” includes those programmes totally funded from the Public Account.

Table 27.5. CAPITAL WORKS EXPENDITURE

ItemYear Ended 31 March
198319841985

* Capital works expenditure on psychiatric hospitals has been taken over by the hospital boards.

Source: The Treasury.

 $(thousand)
Accounts within the Public Account—
    Agriculture and Fisheries10,3748,9739,812
    Defence18,81418,41716,564
    Education—
    School buildings75,57081,03777,128
    Technical institutes18,62115,55716,390
    Teacher colleges843841611
    Universities24,94726,30627,874
    Foreign Affairs3,1412,3903,466
    Forest Service—
    Management16,82521,34421,003
    Sawmilling2,9771,6346,009
    Health—
    Miscellaneous1,2511,074634
    Psychiatric hospitals5,4114,514*
    Justice—
    Courthouses7,0424,0766,113
    Prisons5,0344,5274,996
    Lands and Survey—
    National parks and reserves1,4371,4561,733
    Land Settlement8,9309,65710,010
    Maori Affairs1,9271,9122.660
    Police7,2935,6506,822
    State Services Commission9,8658,51611,158
    Scientific and Industrial Research10,1409,91913,125
    Research Association building grants969700488
    Social Welfare2,9462,8852,614
    Transport3,223 '3,3424,833
    Works—
    Developmental roading7,5296,3146,443
    Public buildings6,5396,2274,706
    Irrigation and rural water supply24,60320,92522,467
    Catchment works27,79130,36233,410
    Development of natural resources9,9188,7189,690
    Miscellaneous public buildings5,4157,06813,259
               Total Within the Public Account818,875818,941884,018
Accounts Outside the Public Account—
    Energy—
    Policy and planning, Oil and Gas19,17026,10010,520
    Mining7,76015,30017,300
    Geothermal11,3107,0007,200
    Electricity284,846269,258229,557
    Housing—
    Construction31,90035,54459,183
    Investment917651453
    Post Office—Buildings23,89826,28026,903
    Rural Bank97972543
               Total Outside the Public Account379,898381,105351,664
               TOTAL698,773695,046685,682

National Roads Fund. The National Roads Act 1953 established a National Roads Fund within the Public Account, the revenue of the fund being derived mainly from motor taxation together with an annual contribution from the Consolidated Account. Expenditure from the fund is for the purpose of developing state highways to modern standards and of subsidising the roading programmes of local authorities.

Table 27.6. NATIONAL ROADS FUND: RECEIPTS AND PAYMENTS

ItemYear Ended 31 March
1982198319841985

Source: The Treasury.

 $(thousand)
                       Receipts
Motor spirits duty (less refunds)129,000132,786130,720157,594
Road user charges (less refunds)82,53396,94896,600164,098
Other taxation, etc.203,2236,96512,451
Contribution from Consolidated Account35,00034,00093,00025,000
Receipts from Land and Property--6,2705,152
Miscellaneous5,2525,3581,4311,801
Interest179221463176
Excess of payments over receipts-548-6,697
               Total251,984273,084343,449372,969
                             Payments
State highways maintenance81,35695,980108,345120,167
State highways construction45,49843,97251,60162,596
Subsidies to local authorities99,066109,715144,925158,157
Administration and general expenses21,71323,41428,39127,132
Unauthorised expenditure4353
Excess of receipts over payments4,347-6,277-
               Total251,984273,084343,449372,969
                Balance at end of year9,0128,46414,7418,044

Table 27.7. PUBLIC ACCOUNTS: SUMMARY OF BALANCES

AccountBalance at 31 March
1982198319841985

*Cash received but not yet allocated.

Source: The Treasury.

 $(thousand)
Consolidated Account83,621104,113108,688117,153
Loans Redemption Account143,571999,7531,104,1091,790,992
Loans Account59,31368,03176,621104,604
National Roads Fund9,0128,46414,7418,044
Reserve Account250,336506,014518,345383,909
Suspense Account*197426134886
Trust Account40,58335,27247,81439,347
               Total586,6331,722,0731,870,4522,444,935

Table 27.8. PUBLIC ACCOUNTS: COMPOSITION OF TOTAL BALANCES

NatureAt 31 March
1982198319841985

Source: The Treasury.

 $(thousand)
Cash88,05091,50993,688114,773
Imprests81,81177,49376,794106,792
Investments in New Zealand6,109561,547745,9151,131,915
Investments overseas410,663991,524954,0551,091,455
               Total586,6331,722,0731,870,4522,444,935

27.2 Central government revenue

System of taxation

The following precis of the New Zealand tax system takes into account all relevant amending legislation effective up to the year ended 31 March 1986.

Income tax is levied under the Income Tax Act 1976.

Tax year. The New Zealand tax year is from 1 April to 31 March.

New Zealand residents. New Zealand residents are liable to New Zealand tax on all income including income from outside New Zealand. Credit is allowed for any overseas tax paid, but this is limited to the New Zealand tax payable on that income.

A New Zealand resident is defined for tax purposes as a person whose permanent place of abode is in New Zealand. In general where a person is present in New Zealand for a period of not less than 365 days, he or she will be classified as a New Zealand resident throughout that period. Conversely a person absent from New Zealand for a period of not less than 365 days will generally be treated as not resident during that absence. This means that people who come to New Zealand with the intention of residing permanently or to stay more than 365 days are taxed on their total income from all sources, both inside and outside New Zealand, as from the date of arrival.

Income tax. Income tax is chargeable on most forms of income received by individuals, companies, and estates.

Income, because of its many forms, is not exhaustively defined, but includes income from the following: property; labour or effort: pensions, estates, and trusts (pensions paid by countries with which New Zealand has a double tax agreement, are generally exempt from tax in the country of origin and subject to tax in New Zealand. If a pension is taxed in the country of origin, credit is allowed in a New Zealand income tax assessment for the overseas tax paid to the extent that it does not exceed New Zealand tax payable on that income); value of benefit allowances received in cash or kind; and wages or income (earnings-related compensation) paid by the Accident Compensation Corporation where a taxpayer is unable to work because of personal injury or incapacity.

Capital gains. There is no capital gains tax but certain “gains” are deemed to be income.

These are profits on the sale of patent rights, and profits on the sale of property (land and buildings). Generally profits from ordinary sales of a person's private residence, business, or farm property, are exempt from tax.

Apart from ordinary sales of a person's residence, business, or farm property, profits on sale of property are subject to income tax where the owner:

  • —acquires the property for the purpose or intention of resale;

  • —deals in property;

  • —is a builder;

  • —makes a profit which is primarily due to rezoning or likely rezoning;

  • —subdivides the property within 10 years of purchase;

  • —subdivides the property more than 10 years after purchase and carries out extensive subdivisional work before selling. (Only the “development profit” is taxable in this case.);

  • —has been deriving income from the property and has claimed a deduction for interest and/or developmental expenditure. The amount of interest and/or development expenditure recovered on sale is treated as assessable income in the year of sale.

Fringe benefit tax. This new tax took effect from 1 April 1985. It is a tax at 45 percent of the value of taxable fringe benefits provided by an employer to an employee. It is payable by the employer quarterly during the year. There are 3 main groups of taxable fringe benefits. These are:

  1. The private use or enjoyment of a motor vehicle, or the availability of a motor vehicle for private use, or enjoyment, by an employee;

  2. Low interest loans; and

  3. Other employment-related benefits, i.e., free, subsidised or discounted transport, goods, and services (other than transport).

“Pay as You Earn” system. A “Pay as You Earn” (PAYE) system of collecting income tax is used for individuals.

Income for PAYE purposes falls into 2 general classes—

Salaries and wages and all other forms of remuneration. With these, PAYE tax is deducted at time of payment.

Business, farming, investment, and professional incomes. With these incomes, tax is not deducted at time of receipt but the taxpayer pays “provisional tax”, usually based on the income tax paid for the previous year.

In both cases an adjustment or “square-up” is made when the return of income for the particular year is furnished.

Tax, which is called “terminal tax”, is assessed on the basis of the annual return, and credit is allowed for the tax deductions or provisional tax paid during the year.

If mere is an overpayment the taxpayer will receive a refund or credit against future tax—if insufficient tax was paid there will be further tax to pay.

The Tax Code Declaration also incorporates a Tax Deduction Certificate. This is returned to the employee on termination of employment or at the end of the financial year.

The certificate shows the total amount of income earned; tax deducted; extra pays; superannuation deducted; the period of employment; and tax free allowances.

This information is used when the employee fills out a tax return at the end of the tax year.

Annual returns of income. Most salary and wage earners file tax returns each year and over 70 percent of these receive refunds of overpaid tax.

Refunds can arise as a result of exemptions and rebates being claimed which are not allowed for in the tax code declaration, or being employed for part of the year only.

Most salary and wage earners use the return form 1R 5. It is required to be completed and sent to the inland Revenue Department by 7 June.

Salary and wage earners are assessed on their total taxable income, less any deduction for expenses and special exemptions. Rebates and the taxes previously paid are deducted from the tax assessed to give either a refund or further tax to pay. For more about exemption and rebates see below.

All other individuals. Individuals who are self-employed or in partnership or who receive income from investments, pay provisional tax. Provisional tax is payable in instalments—generally in 2 payments, one in September and the other in the following March.

Provisional tax is calculated using as a base the income received during the previous financial year.

Provisional taxpayers use form IR 3 which is to be furnished by 7 September. Expenses are deducted from the gross business or investment income and tax is calculated on the net income less any special exemptions. Credit is given for the provisional tax already paid and for any rebates. If there is an overpayment the taxpayer will receive a refund or credit against future tax. If insufficient tax was paid there will be further tax to pay.

Deductions for expenses.Persons in business—Expenses which are incurred in producing income and relevant and incidental to deriving that income, may be claimed as a deduction from income. Expenses of a private, domestic, or capital nature are not deductible.

Salary and wage earners—Salary and wage earners may claim 2 percent of salary or wages up to a maximum claim of $52 without receipt. Actual and reasonable income-related expenses which are supported by receipts or other appropriate evidence, may also be claimed less any reimbursing allowances paid by employers.

Exempt income. Income is exempt from tax in New Zealand only if provisions are made in the New Zealand Income Tax Act 1976.

Some of the more common items exempt from tax are the following: maintenance or alimony payments; the first $200 of interest and dividends from all sources; Social Welfare benefits (except the National Superannuation Benefit and the unemployment benefit paid to beneficiaries who do not have a dependent child or children); war pensions and service disability pensions paid by any Government; interest on National Development Bonds (not exceeding $500 in any 1 year); income derived by charitable and certain non-profit organisations; lottery and raffle prizes.

Special exemption. A special exemption is deducted from the income before tax is calculated.

Table 27.9. SPECIAL EXEMPTION FOR YEAR ENDED 31 MARCH 1986

ExemptionAmount
Source: Inland Revenue Department.
Life insurance, personal accident and sickness premiums paid for self, wife, or children, and superannuation.The amount paid or contributed up to a maximum exemption of— $1,200 if a member of an employer-subsidised superannuation fund for the whole year with proportionate increases if a member for only part of the year. $1,400 in other cases.
NOTE: Existing life insurance and superannuation contracts will continue to qualify but contracts entered into after 8 November 1984 are limited to designated superannuation schemes, policies of pension insurance and specified medical funds. Premiums paid to overseas life insurance companies are allowable.

Rebates. Rebates are deducted from the total tax payable.

Table 27.10. REBATES FOR THE YEAR ENDED 31 MARCH 1986

RebateAmount

*In order to correctly calculate both the principal income earner and family rebates where a person enters or leaves New Zealand, the income derived during that part of the year he or she was resident in New Zealand is grossed up to its full year equivalent.

Source: Inland Revenue Department.

Principal income earner*Allowable to individuals other than children; spouses of principal income earners; national superannuitants; principal income earners eligible for the new family rebate.
 Individuals whose income—
 Is up to (and including) $6,117, qualify for a rebate of 8.5 cents for $1 of income.
 Exceeds $6,117 but does not exceed $12,000, qualify for a rebate of $520.
 Exceeds $12,000 a rebate of $520 diminished by 16.5 cents per $1 of the excess.
Family rebate*Allowable to the principal income earner of a family with a child for whom the family benefit is paid. It is also available to widows, widowers and other solo parents who are in receipt of the family benefit.
 The full rebate of $1,924 is claimable where the combined incomes of the spouses do not exceed $9,800 for the year.
 Where the combined income is—
 Over $9,800 and up to $14,000. the rebate will abate at 15 cents for each $1 of income in excess of $9,800.
 Over $14,000 the rebate will abate at 20 cents for each $1 of income in excess of $14,000.
 No rebate is payable for combined incomes of $20,470 and over.
Housekeeper (under certain circumstances)Limited to the smaller of 33 cents for each complete dollar of payment or $310.
Dependent relativeLimited to the smaller of 33 cents for each complete dollar contributed to the support of a relative, or $60.
 A maximum of 2 dependants may be claimed.
Special home, farm, or fishing- vessel ownership account45 cents for each $1 of annual savings increase in Special Home, or Farm Ownership or Fishing Vessel Ownership Account.
 Maximum rebateable savings are: Home Ownership—$3,000 per year (rebate $1,350); Farm Ownership—$5,000 per year (rebate $2,250); Fishing Vessel Ownership—$5,000 per year (rebate $2,250).
First home mortgage rebateA rebate of 31 cents for each dollar of qualifying interest is allowable to first home owners who also occupy the property. The maximum rebate is $1,000 in any 1 year and the rebate is allowable in respect of the first 5 years of ownership. The property must have been acquired prior to 9 November 1984.
Donations and school fees33 percent of all qualifying charitable donations and school fees. The maximum rebate being $200. The minimum qualifying payment for charitable donations is $5.

Rates of tax

Table 27.11. RATES OF TAX FOR YEAR ENDED 31 MARCH 1986

Taxable IncomeBasic Tax Rate* (with surtax where applicable)Total* (including surtax)

*A temporary surtax of 10 percent on the basic tax rates will be applied to income over $25,000 as from 1 April 1985.

†The amount given is the total amount of tax paid on the highest taxable income for each group.

From 1 April 1985 there is a 25 percent surchage on a National Superannuitant's income other than his national superannuation. An exemption of $6,240 applies to that other income before the surchage takes effect. For married couples their combined exemption is $10,400.

Source: Inland Revenue Department.

 cents$
    0- 6,00020.001,200.00
  6,001-25,00033.007,470.00
25,001-30,00045.109,720.00
30,001-38,00056.1014,208.00
    Over 38,00066.00...

Taxes for visitors: Who is a visitor?—Generally a person who comes to New Zealand and intends to stay less than 365 days is taxed as a visitor or non-resident. If he/she stays for a longer period he/she is normally deemed to be a resident for tax purposes. A person not resident in New Zealand is liable to New Zealand tax on income from New Zealand but not on income from outside New Zealand.

How the visitor is taxed—A visitor to New Zealand is taxed on income from a New Zealand employer for personal services while in New Zealand; income from an overseas employer for personal services in New Zealand (there are certain exemption periods which are outlined in the following paragraphs); and any other income from New Zealand sources.

Income from a New Zealand employer—The employer deducts the tax from the salary or wages of a visitor in the same way as for a resident.

A special exemption and rebates are allowable in an annual assessment—In an assessment the visitor is allowed a proportion of the rebates allowable to the New Zealand resident. The proportion is based on the amount of time spent working in New Zealand. Visitors are not entitled to claim the special exemption in respect of life insurance, or superannuation payments.

Income from an overseas resident—A visitor (other than a public entertainer) who performs personal (including professional) services in New Zealand for an overseas employer is exempt from New Zealand tax provided:

  1. the length of the visit or visits is not more than 92 days in any income year;

  2. the income received from the performance of those personal services in New Zealand is chargeable with tax in the country where the visitor is normally resident.

Public entertainers—Public entertainers are subject to a withholding tax of 20 percent on the gross income derived by them. This is a final tax unless the entertainer considers that the true rate will be lower. To be taxed at a lower rate a return of the income received and expenses incurred in New Zealand must be furnished.

Visitors from “Double Tax” countries—Agreements to avoid double taxation have been entered into between New Zealand and Australia, Belgium, Canada, Denmark, Fiji, Finland, France, Federal Republic of Germany, Japan, Italy, Korea. Malaysia, The Netherlands, Norway, Philippines, Singapore, Sweden. Switzerland, the United Kingdom, and the United States. A visitor from 1 of these countries who gets income for personal services in New Zealand from an overseas employer should refer to the relevant agreement. Depending on the circumstances and the terms of the particular agreement, the exemption period of 92 days could be extended.

Non-residents.Who is an absentee?—An absentee is a person not resident in New Zealand during any part of the income year, but who derives income from a New Zealand source.

Withholding tax on non-residents—The Tax Act imposes a withholding tax on the following classes of income derived from New Zealand by non-residents—dividends, interest, and royalties as defined payments.

The rate of tax is 30 percent on the gross payments of dividends, and 15 percent on gross payments of interest and royalties. It is a final tax on dividends, cultural royalties, and on interest except where the borrower and the lender are associated persons. On other royalties, “know how” payments, and interest where the payer and payee are associated persons, it is a minimum tax. A later assessment may be made if the rate of income tax on the income is greater than the withholding tax.

These provisions may be varied by the double tax agreements and the relevant agreement should be referred to.

Capital brought into New Zealand. Capital brought into New Zealand is free from tax. However income earned from investing that capital is taxable. There is no limit on the amount that may be brought into the country.

Taxation of companies. Companies in New Zealand are taxed in a different way to individual taxpayers.

The main differences are that—

  1. A company does not get any of the special exemptions or rebates which the individual taxpayer may claim.

  2. A company does not get the interest exemptions.

  3. Dividends received by a company incorporated in New Zealand are exempt from income tax. This exemption does not apply to life insurance companies.

  4. The rate of income tax is different.

New Zealand companies.Income tax—Resident companies pay tax on their income at the flat rate of 45 cents in the dollar.

Excess retention tax—Privately controlled New Zealand investment companies are liable for an “excess retention tax”.

Excess retention tax is payable if the investment company does not pay a dividend equal to at least 40 percent of its tax-paid profits and 100 percent of its dividends from other companies.

The rate of excess retention tax is 35 cents in the dollar on any “insufficient distribution”.

A refund of excess retention tax paid will be made if, in a later year, the investment company declares a dividend greater than the amount needed for that year.

Special types of companies. Differing methods of assessment apply to overseas shipping companies, life insurance companies, and certain types of mining companies.

Non-resident companies. Non-resident companies are taxed in the same way as resident companies except that they pay an additional tax of 5 percent of their income on top of the 45 percent rate payable by a resident company. Dividends paid to non-residents are subject to a non-resident withholding tax of 30 percent of the gross income. A withholding tax of 15 percent is payable on interest and royalties. Both of these rates may be limited by the various double tax agreements. This is the final liability except for interest paid between associated persons and royalties (other than “cultural” royalties), when there may be an end-of-year assessment.

These provisions may be varied by a double taxation agreement and the relevant agreement should be referred to. Special concessions apply to non-resident investment companies receiving dividends or interest from approved “development investments”, and processers of minerals to the primary metal stage under a “special development project”.

Incentive legislation. There are tax incentives to help New Zealand's export drive and to encourage agricultural development, mining, fishing, winemaking, and other industries. Some of these are being phased out. Full details of these are obtainable from the Inland Revenue Department.

Land tax. Land Tax is assessed on the total “land value” of land owned at 31 March each year after allowing any special exemption. Both companies and individual taxpayers are liable to land tax which is due and payable on 7 October each year. The last day for payment is 7 November.

Various types of land, including land used solely or principally for farming or agricultural activities, and various land owners are exempt from land tax.

Special exemption—The exemption is $175,000 reduced by $1 for every $1 by which the “land value” of the land exceeds $175,000. Thus no exemption is allowable when the “land value” exceeds $350,000.

Rate of land tax—Land tax is charged at a fiat rate of 2 percent of the taxable land value (land value after exemptions).

Special adjustments—There are special adjustments for absentee owners and in addition companies and estates can be subject to a special basis of assessment.

Estate duty. Generally estate duty is a tax on the total net wealth of a deceased person.

The following reliefs have been abolished: widows; widowers; infant children; orphan infant children; and lineal ancestors or lineal descendants in the estates of deceased servicemen.

Table 27.12. SCALE OF RATES OF ESTATE DUTY

Final Balance of EstateRate
(Note: “Excess” means excess of the final balance on complete dollars)

Source: Inland Revenue Department.

                        $                              For deaths on or after 1 April 1984
Not exceeding 450,000Nil
Exceeding 450,00040 percent of excess over $450,000

Special exemptions from estate dutyJoint family homes—A home registered under the Joint Family Homes Act 1964 is excluded from the dutiable estate of the first spouse to die.

Matrimonial home allowance—Where the deceased had an interest in a matrimonial home (other than a joint family home) that interest is excluded if the home or other property of equivalent value passes to the surviving spouse.

Pensions from superannuation funds—These are excluded from the estate up to $2,000 per annum if payable to the deceased's spouse for the rest of his or her life or until remarriage.

Personal chattels—The value of any furniture and personal effects passing to the surviving spouse is excluded from the dutiable estate. In addition, the first $6,000 of personal chattels passing to any other person is also excluded from the estate.

Charitable bequests—Bequests to charities of up to $25,000 are exempt from duty.

The information pamphlet Estate and Gift Duties, available from the Inland Revenue Department, supplies more information.

Stamp duty. Stamp Duty is payable on documents, executed in New Zealand or elsewhere, affecting property situated, or to be situated, in New Zealand.

Table 27.13. RATES OF STAMP DUTY

Type of DocumentRate of Duty

Source: Inland Revenue Department.

Transfer of—
    Mortgage, debenture, shares, share rights, mining rights40 cents for each $100 or part of $100 of the value of the property.
    All other property, including land1 percent for the first $50,000 of the value of the property; 1.5 percent for the excess over $50,000 up to $100,000; 2 percent for the excess over $100,000.
Leases—
    Rentals40 cents for each $100 or part of $100 of 1 year's rent.
Deed$10.
Duplicate or counterpart$1.
Cheques (as from 4 July 1980)5 cents for each bill of exchange.

The information pamphlet, Stamp Duty, available from the Inland Revenue Department, supplies more information.

Gift duty. In those cases where gifts made before 1 April 1984 aggregated with gifts made on or after that date, the duty on the gifts made prior to 1 April did not change unless the aggregated figure exceeded $27,000.

The level at which gift statements are required to be filed has been raised to $12,000.

The exemption in section 71 of the Act for small gifts made by a donor in good faith as part of the normal expenditure has increased from $1,000 to $2,000. The exemption applied to all qualifying gifts made on or after 1 April 1984.

For estate duty purposes, however, the $1,000 limit applied to gifts made at any time by any person who died on or after 21 June 1979.

Table 27.14. RATES OF GIFT DUTY*

Value of Item “b” in section 62Rate
(Note: “Excess” means excess of the value in complete dollars)

*Applies to all dutiable gifts made on or after 1 April 1984.

Source: Inland Revenue Department

                          $ 
Not exceeding 27,000Nil
                        27,001-36,0005 percent on excess over $27,000
                        36,001-54,000$450 plus 10 percent of excess over $36,000
                        54,001-72,000$2,250 plus 20 percent of excess over $54,000
      Exceeding 72,000$5,850 plus 25 percent of excess over $72,000

Table 27.15. NET REVENUE FROM ESTATE AND GIFT DUTY

Year Ended 31 MarchEstate DutyGift DutyTotal Estate and Gift Duties

Source: Inland Revenue Department.

 $(thousand)
198137,2171,78739,004
198230,1592,22532,384
198329,9181,90331,820
198431,2711,78033,051
198529,4052,33331,738

Credit card transaction duty. A duty of 5 cents is charged for each transaction entered into by the holders of multi-purpose credit cards. It applies to every transaction entered into on or after 10 July 1981.

Taxation review authorities. The Inland Revenue Department Act provides for the establishment of 1 or more authorities. There are at present 4 authorities. Every authority shall consist of 1 person who is a barrister or solicitor of the High Court of not less than 7 years practice and is appointed by the Governor-General. The functions of the authority are to sit as a judicial authority for hearing and determining such objections to assessments of tax or duty or the decisions or determinations of the Commissioner as are authorised by the relevant legislation. A determination of an authority is subject to an appeal to the High Court as to any question of fact where the tax or duty exceeds $2,000 and to any question of law.

Income tax revenue

A summary of income tax revenue and total public account taxation revenue in the aggregate and per head of mean population is given for a series of years in Table 27.16.

Table 27.16. INCOME TAX REVENUE: SUMMARY*

Year Ended 31 MarchIncome TaxTotal Public Account Taxation
AmountPercentage of Total Taxation (All Sources)Amount
TotalPer Head of Mean PopulationTotal*Per Head of Mean Population

*Includes taxation revenue paid into both the Consolidated Fund and the National Roads Fund.

Source: The Treasury.

 $(million)$%$(million)$
1970779.2279.3966.01,181.0423.46
19752,136.0701.0174.52.865.3940.37
19804,465.61,429.1074.26,020.01,926.52
19815,298.91,683.9675.27,050.52,240.59
19826,514.72,060.2574.08,798.02,782.33
19837,455.52,335.5473.810,097.53,163.17
19847,453.32,304.0371.510,431.2x3,224.64
19858,348.52,556.7370.111,913.6x3,648.61

Table 27.17. RECEIPTS OF TAXATION

ItemRevenue for Year Ended 31 March
19811982198319841985

* Additional to portions paid into National Roads Fund.

Source: The Treasury.

Consolidated Account—$(million)
    Direct taxation—
        Income tax5,298.96,514.77,455.57,453.38,348.5
        Estate and gift duty39.132.431.833.031.7
        Land tax11.633.834.436.243.7
                   Total, direct taxation5,349.66,580.97,521.87,522.5x8,423.9
    Indirect taxation—
        Customs duty349.3475.1511.8606.3794.6
        Beer duty64.374.3149.1199.3x209.0
        Motor spirits duty*139.5147.2184.4224.1x224.8
        Motor vehicles fees and charges46.546.786.197.4102.0
        Sales tax775.61,084,11,211.71,312.3x1,561.0
        Film-hire tax0.91.11.21.61.4x
        Racing duty*46.151.057.062.667.0
        International departure tax12.414.414.714.715.6x
        Domestic air travel tax3.48.510.612.513.9x
        Energy resources levy19.624.240.244.2x52.8
        Stamp duties—
            On instruments39.659.354.866.787.1
            On cheques, etc.8.313.014.015.016.3
            Lottery duty6.46.86.99.710.2
                   Total, indirect taxation1,511.92,005.62,342.72,666.43,155.5x
                   Total taxation receipts to Consolidated Account6.861.58,586.59,864.510,188.9x11,579.5x
National Roads Fund—
    Highways taxation189.0211.6233.0x2.3x334.1
                   Total public account taxation7,050.58,798.010,097.510,431.2x11,913.6x

Table 27.18. COMPARISON OF PUBLIC ACCOUNT TAXATION AND NATIONAL DISPOSABLE INCOME

YearNational Disposable IncomePublic Account Taxation
TotalPercentage of National Disposable Income

Source: The Treasury.

 $(million)percent
1980-8122,3237,050.531.6
1981-8226,8478,798.032.8
1982-8329,47510,097.534.3
1983-8431,47610,431.2x33.1
1984-8531,47611,913.6x33.1

Customs and excise taxation

Revenue under the heading of Customs does not include receipts from motor spirits tax paid into the National Roads Fund.

Table 27.19. CUSTOMS AND EXCISE REVENUE

Year Ended 31 MarchCustoms and Excise Duties*Beer DutyTotal Customs and Excise- DutiesProportion of Total Taxation

* Including foreign fishing vessel tax but excluding beer duty.

†Sales tax on beer abolished and replaced with increased rates of beer duty from 5 August 1982.

Source: The Treasury.

 $(thousand)percent
1981349,32064,283413,6035.9
1982475,09174,338549,4296.2
1983511,844149,138660,9826.5
1984606,291199,264805,5557.7
1985794,596208,9761,003,5728.4

Information in regard to Customs and excise duties generally is contained in Chapter 24, Overseas trade.

Roads taxation

Prior to 31 March 1978 the National Roads Fund derived its revenues from a tax on motor spirits, heavy traffic licence fees, and a mileage tax on vehicles not using motor spirits. From 1 April 1978 Road User Charges replaced Heavy Traffic Licence Fees and Mileage Tax. Other revenues of the fund, which are not classed as taxation, consist of a Government contribution, interest earned, and miscellaneous receipts—e.g., from the sale of materials, etc. For 1968-69, tax on petrol paid to the fund was 14.8c per gallon. From 1 April 1969 the rate was increased to 17.1c per gallon by the transfer to the fund of 2.3c per gallon previously credited to the Consolidated Revenue Account, and from 1 April 1971 to 18.1c per gallon by the transfer of a further 1c a gallon. From 1 April 1978 tax paid to the fund was reduced to 4.25c per litre, this was increased to 6c per litre from 1 April 1980, 6.4c per litre from 1 October 1982, and 8.9c per litre from 8 November 1984.

The Local Government Act 1974 authorised territorial local authorities to levy a local authorities petroleum tax on motor spirits and diesel fuel. The proceeds of any tax imposed are distributed among the constituent local authorities according to their proportions of total rate revenue. This legislation was designed to spread the rating burden of taxpayers. The maximum tax rate permissible is, at present, 0.66 cents per litre on motor spirits, and 0.33 cents per litre on diesel fuel.

A tax on compressed natural gas (CNG) was imposed from 1 April 1982 initially at the rate of $1.74 per gigajoule. It is now $2.59 per gigajoule.

Liquefied petroleum gas (LPG) was also taxed from October 1982 at the rate of 4.93 cents per litre.

Table 27.20. NATIONAL ROADS FUNDS: TAXATION RECEIPTS FOR ROADS PURPOSES*

Year Ended 31 MarchMotor Spirits DutyCNG/LPGHeavy Traffic and Other FeesRoad User ChargesTotal

*Refunds have been deducted.

†Less rebates and collection expenses.

Source: National Roads Board.

 $(000)
1981120,193--68,370188,563
1982128,535--82,533211,068
1983131,9583,20090996,948233,015
1984138,7206,959..96,600242,279
1985157,59012,450-164,100334,140

Estates passed for death duty

Statistics relating to deceased persons estates certified for duty during the year ended 31 March 1984 are given in the following tables. Estates of Maoris are included, but not hereditary interests in Maori land.

Table 27.21. ESTATES CERTIFIED BY SIZE OF ESTATE VALUE

Net Value of EstateEstates of MalesEstates of FemalesTotal EstatesAggregate Net Value of EstatesEstate Duties Assessed
    $(000)No.No.No.$(000)$(000)
Under 42031843877971
  4 and under 61441332771,404-
  6 and under 81611673282,294-
  8 and under 101662083743,372-
  10 and under 121551583133,428-
  12 and under 141791823614,681-
  14 and under 161952244196,285-
  16 and under 182041703746,362-
  18 and under 202112104218.000-
  20 and under 222252204459,354-
  22 and under 2423320643910,107-
  24 and under 306346241,25833,872-
  30 and under 3548845093830,489-
  35 and under 4046640086632,3964
  40 and under 4540638679233,63421
  45 and under 5035833469232,851-
  50 and under 606065381,14462,5384
  60 and under 7045734380051,957-
  70 and under 8035528363847,71721
  80 and under 9027119346439,357-
  90 and under 10022518140638,464-
100 and under 12035521056562,1299
120 and under 14023113036146,669-
140 and under 16015710526239,166-
160 and under 20020610631255,18161
200 and under 2601957527061,284-
260 and under 3501594320259,974179
350 and under 40038145219,345798
400 and under 45025103514,8531,058
450 and under 5002142511,9091,296
500 and over55227757,44711,481
Total, 1983-847 7846 51314 297887,31614,933
Total, 1982-838 0266 52014 546812,02621,914

The average net value per estate certified during 1983-84 was $62,063. Estates of males averaged $69,780 in value and estates of females $52,840. Duty assessed on estates of males amounted to $10.9 million and on estates of females $4.1 million.

Table 27.22. AVERAGE ESTATE DUTY ASSESSED

Net Value of EstateAverage Duty AssessedAverage Duty as Percentage of Average Net Value of Estate
Estates of MalesEstates of FemalesCombined AverageEstates of MalesEstates of FemalesCombined Average
    $(000)$$$%%%
350 and under 4001612154.43.34.1
400 and under 4503030307.27.07.1
450 and under 50052525210.910.810.9
500 and under 60073877713.515.814.2
600 and under 650100779116.112.214.5
650 and under 70011814312817.321.318.9
700 and under 750153-15320.9-20.9
750 and under 80012217813415.923.117.3
800 and under 900150-15018.0-18.0
900 and under 1000230-23024.4-24.4
1000 and over49843147632.029.631.3
All estates, 1983-841,3946261,0442.01.21.7
All estates, 1982-832,3584581,5073.61.02.8

Table 27.23. ASSETS AND DEBTS BY SIZE OF ESTATE CERTIFIED FOR DUTY DURING YEAR ENDED 31 MARCH 1934

ItemNet Value of Estate*
Under $6,000$6,000 and Under $10,000$10,000 and Under $20,000$20,000 and Under $24,000$24,000 and Under $40,000$40,000 and Under $100,000$100,000 and Under $200,000$200,000 and OverAll Estates

*No allowance is made for the Matrimonial Home Allowances.

†Excludes any interests in Joint Family Homes.

‡Only debts allowable under the Estate and Gift Duties Act are included

 Average per Estate $
Gross Assets—
    Cash (000)1,8013,91012,3656,68927,16774,93440,95828.203 196,026
    Average per estate2,7135,5706.5497,5668,87215,18127,30542,66713,711
    Furniture, effects, etc. (000)2023181,3898523,85910,6665,8495,51728,653
    Average per estate3044547369641,2602,1613,8998,3472,004
    Farm stock, implements, etc. (000)812922809342,8237,78411,682
    Average per estate1221525261891.88211,777817
    Private business interests (000)6835206382492.6073,91210,59817,714
    Average per estate1025010943815282,60816,0341,239
    Assurance policies (000)3604972,5001,5485,91315,5618,8546,66241,895
    Average per estate5427081,3241,7521,9313,1535,90310,0782,930
    Loans (000)1223521,9351,1756,48729.82227,11434,664 101,671
    Average per estate1845011,0251,3292,1186,04218,07652,4427,111
    Shares, etc. (000)3275532,8501,7608,77437,06341,83851,464 144,631
    Average per estate4937881,5101,9912,8667,50927,89277,85810,116
    Real property (000)5308289,2917,65442,390 60,53664,906 119,338305,473
    Average per estate7991,1794,9218,65813,84424,17740,35898,19421,366
    Other property (000)1401546734542,78410,9535,8438,73429,736
    Average per estate2102193565149092,2193,89613,2132,080
    Notional estate (000)942231,1248804,39015,16110,05510,63042,557
    Average per estate1423185969951,4343,0726,70316,0812,977
    O'seas property (000)11102494481,7782,7788,37713,535
    Average, per estate2254561463601,85212,674947
Debts—         
    Unsecured (000)1,0329122,6681,1374,2718,3104,2428,46431,036
    Secured (000)4212961,0405241,5133,9903,1744,26415,221
    Total (000)1.4531.2083,7081,6605,78412,3007,41712,72846,257
    Average debt per estate2,1881,7201,9641,8781,8892,4924,94419,2553,235
    Net value of estate (000)2,2015,66628,75619,46196,757306,518203,145224,813387,316
    Average per estate3,3158,07115.23122,01431,59962,098135,430 62,063340,110

Realty comprised 32.7 percent of gross New Zealand assets in 1983-84 while the proportion of cash was 21.0 percent. The comparable figures for 1982-83 were 31.5 and 20.0 percent.

Table 27.24. DECEASED PERSONS ESTATES BY OCCUPATIONS FOR YEAR ENDED 31 MARCH 1984

Occupational GroupUnder $20,000$20.000 to 39.999$40.000 to 59.999$60.000 to 99,000$100,000 to 139.000$140,000 to 259.000$260,000 and OverTotal

* Including retired persons and unpaid household workers

 Number of Estates
Physical life scientists, technicians, etc.24453--18
Architects, engineers, technicians, aircraft and ships officers2732343319223170
Medical, dental, veterinary, and related workers26464238222711212
Teachers, clergy and jurists34604657132914253
Artists, authors, athletes, sportsmen and related workers1417131154367
Professional, technical, administrative and managerial workers73133117135918260691
Clerical and related workers11618612110843293606
Transport and communication workers17201973--66
Sales workers781209891392511462
Protective service workers, armed forces, etc.1731141942-87
Housekeepers, cocks, waiters, maids, etc.34271218914-114
Caretakers, launderers, hairdressers, and related service workers282616153--88
Farmers and farm managers1071611552441772161591,219
Agriculture, animal husbandry, and forestry workers, fishermen and hunters576433411392219
Miners, quarrymen, well drillers, production supervisors, etc.323330114--110
Metal and chemical processers etc.1819137---57
Spinners, weavers, knitters, dyers, etc.51083-3-29
Food, beverage, and tobacco processers657132281272217
Tailors, dressmakers, shoemakers and leather goods makers etc.171691022-56
Machinery fitters, assemblers, instrument makers, electrical fitters and related electrical and electronic workers94140687715143411
Jewellery, glass formers, potters, printers, and production workers n.e.c.5662373355-198
Painters, bricklayers, carpenters, cabinet makers and other related construction workers1611801228430254606
Stationary engine operators, material and freight handlers, transport equipment operators132165103752515-515
Labourers, and occupations not stated or not in employment*2,0532,3121,4851,1593903151137,826
               Total3 2623 9352 6312 30992784538814 297

Racing taxation

The Government taxation on totalisator turnover is at the rate of 8.5 percent of gross on-course investments and 9 percent of gross off-course investments for each day of a race meeting conducted by a totalisator or club. For race meetings conducted by a restricted totalisator club the rate for each day of a race meeting is 5 percent of the amount (if any) by which the gross investments on that day's races exceeds $300,000. A totalisator club is entitled to a rebate of duty equal to 2½ percent of the first $100,000 of the gross investments received by the club in any one year.

Table 27.25. TOTALISATOR DUTY

ItemYear Ended 31 July
19811932198319841985

Source: Inland Revenue Department.

 $(thousand)
Totalisator duty46,95353,68459,62762,59966,945

Totalisator turnover for the year ended 31 July 1985 rose by 5.11 percent, from $729.5 million in the previous year to $766.8 million.

Company taxation

The definition of a company for the purposes of these statistics is extended to include Government trading undertakings, co-operative companies, industrial provident societies, etc., which are liable to be assessed for income tax. Company tax returns are also completed by some unincorporated bodies and some groups of individuals (not partnerships or estates) and these are included in the survey sample.

The 1981-82 income year is the first year in which company income statistics have been based on a sample of company tax returns received by the Inland Revenue Department. Prior to 1981-82 the statistics were produced from all of the returns received. The sampling scheme has been designed so that the existing range of the company financial statistics will continue to be produced to acceptable statistical standards, whilst allowing resource savings in the processing of the statistics.

The sample was drawn from the 1978-79 income year data and also included all new companies that commenced operations after that date. The statistics are subject to varying levels of sampling error. Detailed information on the sampling methodology is available on request.

Table 27.26 contains provisional estimates of the assessable income and tax assessed (after deduction of tax credits) of companies for the 1982-83 and 1983-84 income years. The figures are subject to revision when data from the main company income sample become available.

The calculations are based on income values from a probability sample of just under 5000 income tax returns. Where the selected sample returns are not yet finalised estimates have been made.

In general the error arising from sampling is not expected to exceed plus or minus 20 percent of the estimated values in each industry division and should not exceed plus or minus 10 percent of the estimated values for the all industry totals.

Table 27.26. PROVISIONAL ESTIMATES—ASSESSABLE INCOME AND TAX OF COMPANIES

Industry DivisionIncome Year
1981-82*1982-831983-84
Assessable IncomeTax AssessedAssessable IncomeTax AssessedAssessable IncomeTax Assessed

* Final estimate

†Revised estimate

‡After deduction of export tax credits

§These figures have a large sampling error and should be treated with caution. It is necessary to allow for a possible error from sampling of up to plus or minus 50 percent of the estimated value.

 $(million)
Agriculture, hunting, forestry and fishing29.111.825.910.532.313.2
Mining and quarrying85.936.6184.282.5173.877.7
Manufacturing888.9321.2852.5316.91,066.9367.4
Electricity, gas and water2.31.02.91.34.72.1§
Building and construction61.026.375.1§30.7§90.837.0
Wholesale and retail trade and restaurants and hotels650.6281.1502.7214.2640.3264.3§
Transport, storage and communication48.618.550.2§20.3§71.0§30.3§
Financing, insurance, real estate and business services614.0234.0705.2274.1900.5354.3
Community, social and personal services38.717.334.815.640.618.2
               Total2,419.2947.92,433.6966.13,020.81,164.4

Table 27.27. INCOME OF COMPANIES

Income YearNumber of ReturnsAssessable Income Before Losses*Assessable IncomeOrdinary Dividends ReceivedIncome Tax AssessedExport Tax Credits

* Assessable income before deduction of losses carried forward from previous years.

†Includes non-resident with holding tax.

  $(m)$(m)$(m)$(m)$(m)
1977-7880,4301,275.21,036.7221.5452.2...
1978-7981,3651,629.01,330.2272.3577.8...
1979-8080,8331,718.81,464.8280.8630.5...
1980-8180,8262,186.21,865.4364.8748.5185.5
1981-8282,1902,728.52,419.1535.1962.3259.6

A strict comparison of the figures for any year with those of another is not possible, as changes in compilation practice and numerous amendments in income tax law have affected the comparability of the figures.

Table 27.28. INCOME AND EXPENDITURE OF COMPANIES 1981-82

Industry DivisionStocks at End of PeriodIncomeExpenditure
Sales and ServicesInterest Rents and RoyaltiesPurchasesSalaries and WagesInterest Rants and RoyaltiesDepreciationCross Profit—
 S(million)
Agriculture, hunting, forestry, and fishing187.61,325.425.3250.8275.9116.666.3805.8
Mining and quarrying38.7573.310.2-62.1120.227.6-
Manufacturing3,445.021,183.8131.811,063.43,860.4611.6405.36,616.6
Electricity, gas, and water2.468.30.546.17.80.41.611.7
Building and construction265.22,806.318.71,331.6599.059.047.6895.3
Wholesale and retail trade and restaurants and hotels4,204.931,755.6173.825,328.42,445.7721.0205.05,261.6
Transport, storage, and communication13.52,662.435.874.0643.5126.0x120.6-
Financing, insurance, real estate, and business services68.83,161.53,362.4127.2958.82,217.8121.2-
Community, social, and personal services45.41,032.415.6259.5377.842.027.0236.4
               Total 1981-828,271.664,569.13.774.038,481.19.231.04,014.6x1,022.213,827.4
                         1980-817,122.551,955.22,895.231,214.37,641.63,215.1867.511,037.8
                         1979-806,222.843,475.62,342.226,569.66,525.32,517.4792.68,872.1

Table 27.29. INDUSTRIAL GROUP BY INCOME AND EXPENDITURE

Industry GroupType of CompanyReturnsAssessable IncomeIncome Tax AssessedExport Tax CreditsSalaries and WagesDividends Paid

* Numbers are rounded to the nearest 10.

  Number*$(m)$(m)$(m)$(m)$(m)
Agriculture, hunting, forestryOverseas403.70.61.32.8
    and fishingAll7,11029.111.83.9275.938.8
Mining and quarryingOverseas5045.620.67.90.5
 All34085.936.70.162.112.3
Manufacturing—
    Food, beverages, andOverseas4059.623.64.8221.214.3
    tobaccoAll1,040200.277.430.11 096.674.3
    Textiles, wearing apparelOverseas303.41.51.529.61.4
    and leather goodsAll1,26064.719.224.0442.613.8
    Wood and wood productsOverseas 7.83.5 5.10.8
    including furnitureAll6063.423.820.5300.433.2
    Paper and paper products,Overseas2,53023.09.21.640.110.0
    printing and publishingAll 105.438.739.8435.466.9
    Chemicals and chemicalOverseas100109.745.36.1167.528.2
    petroleum, coal, rubber and plastic productsAll720145.558.612.1334.436.7
    Non-metallic mineralOverseas2029.110.23.148.410.1
    products, except products of petroleum and coalAll43042.615.55.1138.016.4
    Basic metal industriesOverseas104.61.80.639.61.6
 All11019.67.43.2102.012.2
    Fabricated metal products,Overseas180102.141.85.6308.421.2
    Machinery and equipmentAll3,820239.488.433.0975.158.4
    Other manufacturingOverseas202.41.00.27.80.8
    industriesAll4808.13.01.835.81.2
    Electricity, gas and waterOverseas403.51.60.120.00.3
    Building and constructionAll6,87063.326.93.9606.811.6
    Wholesale and retail tradeOverseas430200.487.75.5277.656.8
    and restaurants and hotelsAll25,150650.6281.344.12 445.7185.1
    Transport, storage andOverseas405.01.41.182.00.9
    communicationAll2,85048.618.933.7643.519.2
    Financing, insurance, realOverseas420273.5106.20.1339.379.0
    Estate and business servicesAll24,310614.0237.53.8958.8419.4
    Community, social andOverseas308.94.0-45.93.1
    personal servicesAll5,17038.717.10.7377.86.5
         TOTALOverseas1 520882.4360.131.71 643.4228.7
 All82 1902 419.1962.3259.69 231.01 006.0

One point which should be noted is that the purchase figures for the “Agriculture, hunting, forestry, and fishing industry division” and the “Mining and quarrying industry division” do not include purchases for forestry companies or for mining and quarrying companies. It was found that there was a considerable lack of uniformity in such data for that type of company. This was probably connected with differing treatments of royalty and equivalent payments.

The amount of gross profit shown in the accounts is used in these statistics, despite the wide variations in the conceptions of gross profit. No attempt has been made to secure uniformity of calculation for individual companies, but of course the total gross profit for each industry should correspond with that industry's average conception of gross profit. In some industries, such as the transport industry, it is not normal practice to calculate gross profit, and in some cases the gross profit is recorded in these statistics as nil. Estimates of the amount of gross profit were, however, made when any company did not calculate the gross profit, and it was the custom of the industry concerned to show this figure.

The abridged version of the full industry classification for which data are given in this publication does not reveal the individual industries where the gross profit is not generally calculated. Apart from “Mining and quarrying”, and “Transport, storage, and communication”, there are a number of industries included in “Community, social, and personal services” which do not show a gross profit.

Companies with overseas affiliations. The Department of Statistics has identified most companies operating in New Zealand that are considered to be subject to some degree of overseas control. Two types of company were selected as meeting these two criteria; first, branches of overseas organisations operating in New Zealand, and second, New Zealand registered companies with 25 percent or more of their equity shareholding subject to overseas control. The second category includes companies in which overseas residents have a 25 percent or greater shareholding and also companies which are subject to this degree of control without themselves having any overseas owners. For instance if a New Zealand company was 50 percent owned by another New Zealand company which itself was 50 percent overseas owned, the company would qualify as having 25 percent overseas control. These are generally termed 'second generation' companies.

Overseas companies whose only New Zealand income is from such sources as investments, patents rights, royalties and copyrights are not included in the 1520 companies contained in the sample. Also excluded are those overseas companies such as air and shipping lines, which enjoy exemption from New Zealand income tax under the terms of double taxation agreements with their own countries.

The 25 percent minimum equity criterion used to classify a New Zealand company as subject to some degree of overseas control, approximates the definition of international private direct investment used by such organisations as the International Monetary Fund. Although the measure of overseas control of New Zealand firms varies according to a great number of circumstances, minimum holding of 25 percent does provide a consistent and practical criterion for assuming its presence.

In Table 27.9 the five significant variables for the 1520 overseas controlled companies are shown in industry groups together with the totals for all companies, including the overseas controlled companies, in those industry groups. Care should be taken in comparing these results with earlier years as changes in overseas ownership occur frequently.

It also needs to be noted that the New Zealand companies include government trading departments, which may follow profit policies different from private sector companies, and for which capital values are not always included in paid-up capital. The figures suggest that there is some concentration of branches and subsidiaries of overseas companies in the manufacturing groups and mining and quarrying; these industries offer scope to large concerns with access to capital and technical expertise.

27.3 Public debt

The principal legislative measure which is concerned with public indebtedness is the Public Finance Act 1977. The money comprising the public debt has been borrowed on the security of the public revenues of New Zealand. No portion of the public estate is pledged for either principal or interest.

At 31 March 1984, and 31 March 1985, 37.6 percent and 43.9 percent respectively of the public debt was owing to overseas investors, and 22.5 percent and 20.6 percent respectively was held by Government departments or institutions such as the Post Office, the Government Superannuation Board, and the Earthquake and War Damage Commission.

Most of the present public debt was borrowed for national development. A National Development Loans Account, into which money for national development was to be paid, was established within the Public Account as from 1 April 1942. Money from this account, now renamed the Loans Account, is transferred as required to the Consolidated Fund or to accounts now outside the Public Account such as Electricity Supply or the Housing Corporation. Transfers and appropriations during the latest 3 years are given in Section 27.1.

Table 27.30. TOTAL PUBLIC DEBT OUTSTANDING

Type and CurrencyOutstanding at 31 MarchIncrease or Decrease
19841985

*Treasury bills.

Source: The Treasury.

External debt—$(thousand)
    Pounds sterling1,115,6671,659,084+543,417
    Deutschemarks1,076,2121,454,096+ 377,884
    Dutch guilders139,594151,489+ 11,895
    Japanese yen1,476,5583,820,598+2,344,040
    Swiss francs1,923,2261,849,618-73,608
    Canadian dollars26,60328,604+2,001
    Australian dollars15,82810,517-5,311
    United States dollars2,432,5333,416,701+984,168
    Miscellaneous20,07918,787-1,292
Internal debt—
    Long-term13,107,87015,537,137+ 2,429,267
    Floating debt*544,495299,670-244,825
               Total21,878,66528,246,301+ 6,367,636

The net increase of $6,367.6 million in the public debt during the year ended 31 March 1985 represented a 29.1 percent rise. The external debt rose by 50.9 percent and the internal debt by 16.0 percent.

Table 27.31. EXTERNAL AND INTERNAL PUBLIC DEBT

Outstanding at 31 MarchExternal DebtInternal DebtTotal Debt
AmountPercent of Total DebtAmountPercent of Total DebtAmountPercent Increase on Previous Year

Source: The Treasury.

 $(million)%$(million)%$(million)%
19761,463.226.34,094.773.75,557.932.3
19771,826.629.04,462.671.06,289.213.2
19782,446.732.75,037.167.37,483.819.0
19792,920.133.15,899.466.98,819.517.8
19803,567.534.56,778.965.510,346.417.3
19814,236.136.57,381.063.511,617.112.3
19825,549.438.68,832.061.414,381.423.8
19837,764.741.410,968.058.518,732.830.3
19848,226.337.613,652.4x62.421,878.7x16.8
198512,409.543.915,836.856.1x28,246.329.1

A significant feature in Table 27.31 is the growth of external debt as a percentage of the total public debt.

Table 27.32. GROSS INDEBTEDNESS OF CENTRAL GOVERNMENT

As at 31 MarchAmountPer Head of Population

Source: The Treasury.

 $(m)$
198010,3463,286.14
198111,6173,663.65
198214.3814,508.13
198318,7335,799.62
198421,8796,700.05
198528,2468,582.02

Table 27.33b. INTEREST PAYMENTS

Year Ended 31 MarchInterestInterest on Overseas Debt as Percentage of Exports of Goods and Services*Recovery of Interest from Government Enterprises and InvestmentsNet Interest CostNet Cost as a Percentage of Total Taxation
OverseasNew ZealandTotal

*Revised to include exports of goods and services.

†Revised to include interest credited to the Reserve Account.

Source: The Treasury

 $(thousand)
1981256,345635,152891,4974.4605,794285,7034.1
1982416,265786,6631,202,9285.0677,770525,1586.0
1983514,955960,8371,475,7925.6740,189735,6037.3
1984620,1991,394,6762,014,8755.8815,1971,199,67811.5
1985896,8081,633,2252,530,0336.7P1,018,2361,511,79712.7

Table 27.34. MATURITY YEARS OF DEBT

Loans Maturing in Financial Year Ended 31 March*DueTotal Debt (Nominal Amount)
OverseasNew Zealand
PublicDepartmental and Other

*In respect of many of the loans the Government has the option to redeem the securities at an earlier date.

†At 31 March 1984 the obligation in respect of premiums on redemptions was $181,733,327.

Source: The Treasury.

 $(thousand)
19851,458,545705,730240,0262,404,301
19861,061,4351,488,565701,5283,251,528
1987676,066707,428x589,8551,973,349
19881,475,321685,5391,281,5483,442,408
19891,501,3741,792,9201,393,9814,688,275
1990502,890147,17082,250732,310
1991278,973179,38577,944536,302
1992395,451238,044111,712745,207
1993466,182178,674203,293848,149x
1994165,45656,90298,560320,918
199524,231....24,231
2,000..6,85055,00061,850
2,009220,376....220,376
Treasury Bills..502,49542,000544,495
Inflation Adjusted Savings Bonds..774,502..774,502
Premium Stock..275,88321,992297,875
Kiwi Savings Stock..993,76118,8281,012,589x
               Total8,226,3008,733,8484,918,51721,878.665

Table 27.35. STATEMENT SHOWING MATURITY DATES OF PUBLIC DEBT OUTSTANDING AS AT 31 MARCH 1985

Loans Maturing in Financial Year Ended 31 March*DueTotal Debt (Nominal Amount)
OverseasNew Zealand
PublicDepartmental and Other

*In respect of many of the loans the Government has the option to redeem the securities at an earlier date.

†At 31 March 1985 the obligation in respect of premiums on redemptions was $248,116,049.

Source: The Treasury

 $(thousand)
19861,217,9901,180,4031,114,8363,513,229
1987854,9381,170,296738,5032,763,737
19881,951,3831,092,344977,4904,021,217
1989744,6881,849,3181,159,3753,753,381
19901,312,160450,343174,8261,937,329x
1991759,824688,652280,2141,728,690
19921,105.678426,469234,2971,766,444
1993773,640613,400467,3071,854,347
1994307,187106,364142,994556,545
19952,916,862485,401229,4433,631,706
2,000..25,77559,22585,000
2,002..75,12549,875125,000
2,009239,183....239,183
2,015225,961....225,961
Treasury Bills..139,765159,905299,670
Inflation Adjusted Savings Bonds..788,869..788,869
Premium Stock..215,42918,851234,280
Kiwi Savings Stock..638,7456,801645,546
Our N.Z. Bonds ....76,167..76,167
               Total12,409,49410,022,8655,813,94228,246,301

Table 27.36a. PUBLIC DEBT TRANSACTIONS

 31 March 1984
New ZealandOverseas£Stg

*Includes $116,702,632 securities issued—Reserve Bank Indemnity.

 Currency $(000)
Loans raised (gross value)—
    For general purposes5,361,226x*1,593,085x231,889
    Capital equipment credit arrangements 132,96271,985
    For repayment of loans (incl. Tsy Bills)2,424,280....
               Total loans raised7,785,5061,726,047303,874
Loans repaid—
    For general repayments (incl. Tsy Bills)5,101,195820,17251,655
    Capital equipment credit arrangements..74,75126,625
    IBRD..7,864..
               Total loans repaid5,101,195902,787x78,280
Net currency changes from flexible financing facility rollovers....(74,104)
Increase (decrease) in debt due to— 1 March 1984 realignment..(361,682)(48,010)
Net increase (decrease) during the year2,684,311461,578103,480
Public debt at 1 April 198310,968,0547,764,7221,012,187
Public debt at 31 March 198413,652,3658,226,3001,115,667
 $21,878,665 

Table 27.36b. PUBLIC DEBT TRANSACTIONS—continued

 31 March 1984
Deutsch-markDutch GuildersJapanese YenUS$

Source: The Treasury.

Loans raised (gross value)—
    For general purposes....128,733925,574
    Capital equipment credit arrangements5,744..26,75925,130
    For repayment of loans (incl. Tsy Bills)........
               Total loans raised5,744..155,492950,704
Loans repaid—
    For general repayments (incl. Tsy Bills)31,977..23,968399,884
    Capital equipment credit arrangements....8,77922,959
    IBRD........
               Total loans repaid31,977..32,747422,843
Net currency changes from flexible financing facility rollovers......74,104
Increase (decrease) in debt due to—
  1 March 1984 realignment(125,644)(19,439)(2,173)(31,455)
Net increase (decrease) during the year(151,877)(19,439)120,572570,510
Public debt at 1 April 19831,228,089159,0331,355,9861,862,023
Public debt at 31 March 19841,076,212139,5941,476,5582,432,533
Loans raised (gross value)—
    For general purposes182,07050.0351,598,341501,502
    Capital equipment credit arrangements6,830..18,57517,841
    For repayment of loans (incl. Tsy Bills)128,311....1,790,275
               Total loans raised317,21150,0351,616,9162,309,618
Loans repaid—
    For general repayments (incl. Tsy Bills)212,33961,37730,6142,509,100
    Capital equipment credit arrangements..11,70925,321 
    IBRD........
               Total loans repaid212,33961,37742,3232,534,421
Net currency changes from flexible finance facility rollovers84,712....(11,605)
Increase (decrease) in debt due to—
  18 July 1984 devaluation283,11935,849602,637849,893
  1 March 1985 realignment(94,819)(12,612)166,810370,683
Net increase (decrease) during the year377,88411,8952,344,040984,168
Public Debt at 1 April 19841,076,212139,5941,476,5582,432,533
Public debt at 31 March 19851,454,096151,4893,820,5983,416,701
Loans raised (gross value)—
    For general purposes40,740......
    Capital equipment credit arrangements........
    For repayment of loans (incl. Tsy Bills)291,861......
               Total loans raised332.601......
Loans repaid—
    For general repayments (incl. Tsy Bills)577,384....1,396
    Capital equipment credit arrangements1,1867,0006,9152,294
    IBRD......1,789
               Total loans repaid578,5707,0006,9155,479
Net currency changes from flexible finance facility rollovers(73,107)......
Increase (decrease) in debt due to—
  18 July 1984 devaluation371,3092,1226,7904,617
  1 March 1985 realignment(125,841)(433)2,126(430)
Net increase (decrease) during the year(73,608)(5,311)2,001(1,292)
Public Debt at 1 April 19841,923,22615,82826,60320,079
Public debt at 31 March 19851,849,61810,51728,60418,787
Loans raised (gross value)—
    For general purposes306,889......
    Capital equipment credit arrangements..3,331..13
    For repayment of loans (incl. Tsy Bills)........
               Total loans raised306,8893,331..13
Loans repaid—
    For general repayments (incl. Tsy Bills)311,002....1,686
    Capital equipment credit arrangements1,1897,7945,4221,983
    IBRD......7,864
               Total loans repaid312,1917,7945,42211,533
Net currency changes from flexible financing facility rollovers........
Increase (decrease) in debt due to—
  1 March 1984 realignment(132,204)1,157(1,113)(2,801)
Net increase (decrease) during the year(137,506)(3,306)(6,535x)(14,321)
Public debt at 1 April 19832,060,73219,13433,13834,400
Public debt at 31 March 19841,923,22615,82826,60320,079

Table 27.36c. PUBLIC DEBT TRANSACTIONS—continued

 31 March 1985
New ZealandOverseas£Stg
 Currency $(000)
Loans raised (gross value)—
    For general purposes5,403,3022,800,656427,968
    Capital equipment credit arrangements..53,63210,386
    For repayment of loans (incl. Tsy Bills)5,000,8582,210,447..
         Total loans raised10,404,1605,064,735438,354
Loans repaid—
    For general repayments (incl. Tsy Bills)8,219,7183,406,15413,944
    Capital equipment credit arrangements..85,87631,451
    IBRD..1,789..
               Total loans repaid8,219,7183,493,81945,395
Net currency changes from flexible financing facility rollovers......
Increase (decrease) in debt due to—
  18 July 1984 devaluation..2,473,077316,741
  1 March 1985 realignment..139,201(166,283)
Net increase (decrease) during the year2,184,4424,183,194543,417
Public Debt at 1 April 198413,652,3658,226,3001,115,667
Public debt at 31 March 198515,836,80712,409,4941,659,084
 $28,246,301 

Table 27.37. PUBLIC DEBT HELD BY GOVERNMENT DEPARTMENTS

 As at 31 March
198319841985

Source: The Treasury.

 $(thousand)
Investments held by accounts within the Public Account5,8725,873x5,872
Earthquake and War Damage Commission698,616849,5151,028,364
Government Life Insurance135,452142,071243,437
Government Superannuation Board921,9541,077,0001,219,780
Maori Trustee1,7422,555x1,600
National Provident Fund102,528142,438263,728
Post Office1,522,9281,517,0251,776,173
Public Trustee2,5186,9757,075
Reserve Bank394,5671,002,5431,077,608
Housing Corporation of New Zealand85,26687,91495,952
Rural Banking and Finance Corporation86.90072,35876,308
State Insurance Office25012,25018,045
               Total3,958,6834,918,5175,813,942

27.4 Local government finance

The constitution and franchise of local authorities are described in Chapter 3.

Local government is concerned with the provision of facilities for the population of a limited area, with finances levied from that area. The major local authorities are territorial; city, borough, district, and county councils. These authorities raise money mainly by rates on property and by loans. They expend it on the provision of roads, water supply, sewerage, transport, recreational, and a wide range of other services. Electric power boards and harbour boards, among the larger of the other local authorities, collect revenue from consumers or users in payment for the facilities or services provided. Hospital boards and area health boards, which supply their returns to the Department of Health, are omitted from most of the statistics contained in this section. A special note is made where they are included, while summarised data relating to hospital boards and area health boards will be found in Chapter 7.

In general, the local authority year ends on 31 March. Exceptions are harbour boards where the year ends on the preceding 30 September and united councils where the year ends on the last day of February.

Income

Local authorities are largely dependent on revenue from rates to carry out their activities.

Rating. Rating provides a financial base which is independent of central government, is relatively cheap to administer and can be adapted to suit local circumstances. There are 3 main systems of rating:

  1. land value;

  2. capital value (i.e., land plus improvements); and

  3. annual (rental) value.

In 1984-85 most territorial authorities in New Zealand (186 of a total of 231) rate on the land value system; 24 rate on the capital value; and 10 on the annual value. A further 10 territorial authorities rate on the capital and land values in different parts of the district.

For rating on either the capital value or the land value, the rating roll is based on the district valuation roll prepared by the Valuation Department. Where the rating is on the annual value, the territorial authority generally prepares its valuation roll on the basis of the valuations made by its own valuers. Provision is made for the Valuer-General to act as a territorial authority valuer where an annual roll is to be prepared.

The Rating Act 1967 contains the machinery provisions for the making and levying of rates which are applicable to all local authorities empowered to levy rates. The individual empowering Acts for each class of local authority contain their specific rating powers. For example the Local Government Act 1974 contains the rating powers of territorial authorities.

Three broad classes of territorial authority rates are distinguished:

  1. general—for general purposes;

  2. separate rates—levied for a variety of purposes including works and services, fire protection, sewerage and storm water drainage and lighting; and

  3. special rates—may be imposed to secure the repayment of loan money.

A territorial authority may levy each year on each separately rateable property a uniform annual charge not exceeding $150 or a lesser amount in the case of any rating area where the levying of a charge of $150 would exceed the maximum authorised general rate. In addition there are a wide range of services for which uniform charges may be levied instead of separate rates.

The Chatham Islands County Council Empowering Act 1980 empowers the council to reintroduce land rating in the Chatham Islands in association with the existing system of import and export dues. The council has been authorised to levy land rates since 1 April 1981 provided that the income from the combination of rates and import and export dues does not exceed the maximum permissible under a land rating system only.

Sales of commodities and services. Income from the sale of commodities and services includes, for example, the sale of electricity and gas, public transport fares, and other user charges for council facilities such as libraries, swimming pools and car parking spaces. Income from licences includes dog registration fees and inspection fees.

Grants from central government

A substantial portion of local authority revenue is derived from grants and subsidies. In 1984-85 grants and subsidies amounted to $405,719 million. These grants and subsidies include:

Civil Defence. A dollar for dollar subsidy up to a maximum based on population figures is paid by the Ministry of Civil Defence towards civil defence expenditure such as communications and rescue equipment, alteration and construction of buildings and salaries of civil defence staff.

Community welfare, cultural and recreational facilities. Much of the $4,650 million distributed by the Department of Internal Affairs to local authorities in 1984-85 was provided for recreation and sport, community and regional service projects, and art galleries and museums.

In addition the Department of Social Welfare has funds available for any territorial authority which may wish to establish child-care schemes, rehabilitation or day-care for disabled persons, or other appropriate social welfare programmes.

Electricity. Assistance to local authorities for small hydro schemes is provided through the Committee on Local Hydro Development, while the Rural Electrical Reticulation Council provides subsidies towards the cost of rural distribution lines for power boards and territorial authorities.

Employment. A wide range of training and employment schemes are administered by the Department of Labour. In December 1985 the Minister of Employment announced a phased change-over during 1986 from fully subsidised schemes to a set of training-based programmes. On some training programmes trainees will receive a training allowance from the Department of Labour. On work-based schemes, however, the employer will be required to pay the trainee at the relevant award rate and will receive a partial subsidy from the department, towards the cost.

Forestry. The New Zealand Forest Service makes grants to local authorities undertaking commercial afforestation on land in which the authority has an interest and may contribute towards the costs of road construction and upgrading where these are used mostly by forest generated traffic.

Historic places. Local authorities which own, or are responsible for looking after a historic place or site, can apply to the Historic Places Trust for a loan or grant from that fund.

Housing. The Housing Corporation of New Zealand administers a number of schemes relating to housing and urban renewal. These include a combination of loans and subsidies to meet up to the total cost of building flats for the elderly and disabled, subsidies and loans for the building of relocatable granny flats, assistance to modernise older flats and provide emergency housing, and loans to build doctor's surgeries in areas where they are needed. In 1984-85 total payments were $3,854 million.

National Roads Board. The finance available from the National Roads Board in 1984-85 was $154.186 million and represents an important source of revenue for territorial authorities. (See Chapter 22 for information on roads).

Noxious pests and plants. The Minister of Agriculture may approve grants to pest destruction boards to carry out the control of pests within their districts. The Ministry of Agriculture and Fisheries also operates a dollar for dollar subsidy scheme on the cost of noxious plant control activities.

Urban passenger transport. The Urban Transport Council was formed in 1981 and is now the funding body for all urban transport subsidy programmes. In 1984-85, $40.959 million was expended on grants and subsidies. Estimated expenditure for 1985-86 was $50.089 million. All municipal and private operators and urban services administered by the New Zealand Railways Corporation are now funded through the Urban Transport Council.

Water supply, sewage disposal and wastes recycling. A comprehensive water and sewerage subsidy scheme is administered by the Department of Health and provides assistance towards the residential content of such works. Water and sewerage subsidies reached $17.57 million in 1984-85. In addition the Ministry of Works and Development provides subsidies towards the cost of piped water supply to rural areas and together with the Rural Banking and Finance Corporation provides for a combination of loans and grants for approved community irrigation schemes. Some finance is available from the Department of Trade and Industry for long-term waste conversion and recycling programmes.

Petroleum tax. The Local Government Act 1974 provides for territorial authorities and united and regional councils to receive the proceeds of a tax of 0.33 cents per litre on diesel fuel and 0.66 cents per litre on petrol. In 1984-85, $18.42 million in petroleum tax was paid to local authorities. The figure for 1983-84 was $18.40 million.

Expenditure

The purchase of commodities and services makes up over half the expenditure of local authorities. Other substantial areas of expenditure are labour costs, which are one-third of the total, and interest payments. Traditional areas of local authority expenditure are roading, water supply, sewerage, drainage and refuse collection while local authority responsibilities have tended to increase in areas such as land use planning and the provision of recreation and welfare services.

Table 27.38. SOURCES OF REVENUE OF ALL LOCAL AUTHORITIES*

Year Ended 31 MarchRates, Levies. Fines, etc.Grants from Central and Local GovernmentSales of Commodities and Services inch Water RatesOther ReceiptsTotal Receipts

*Includes electric power boards.

 $(thousand)
1980422,649155,7891,144,72990,5841,813,752
1981502,108200,1111,336,500108,7382,147,457
1982608,844250.2941,506,993129,5372,495,668
1983714,680300,5751,804,035159,7922,977,081
1984763,612392,6071,884,822187,2883,228,329

A fairly large proportion of the receipts of urban local authorities result from the sales of commodities or services, for instance, sales of electric power and gas, and fares collected for public transport.

Table 27.39. SOURCES OF PAYMENTS OF ALL LOCAL AUTHORITIES

Year Ended 31 MarchLabour and Related CostsPurchases of Commodities and ServicesAll InterestOther PaymentsTotal Payments
 $(thousand)
1980515,908933,48498,994114,1911,662,577
1981619,6081,116,474120,583130,7291,987,395
1982767,9661,251,488139.415152,9092,311,778
1983859,3761,502,280159,888178,4102,699,955
1984908,6711,652,928192,528221,8632,975,990

Table 27.40. RECEIPTS OF LOCAL AUTHORITIES FOR YEAR ENDED 31 MARCH 1984

Local AuthorityRates, Levies. Fines, etc.Grants from Central and Local GovernmentSales of Commodities and ServicesOther ReceiptsTotal Receipts
 $(thousand)
City and borough councils499,031130,044544.06077,0171,250,152
County councils156,993117,39841,74614,287330,424
District councils45,71921,81619,4125,13692,083
Electric power boards25295820,94824,200845,468
Harbour boards694165198,52227,214226,595
Regional authorities2,88870,59677,46521,169172,117
Urban drainage boards21,6795,0011,8171,65430,152
Catchment boards21,12218,3766,1415,63551,275
Pest destruction boards5,2716,65222144012,584
Urban transport board7,3814.2675,66957117,887
Other local authorities2,80917,997168,8209,963199,593
               Total763,612392,6071,884,822187,2883,228,329

Table 27.41. PAYMENTS OF ALL LOCAL AUTHORITIES FOR YEAR ENDED 31 MARCH 1984

Local AuthorityLabour and Related CostsInterestPurchases of Commodities and ServicesOther PaymentsTotal Payments
 $(thousand)
City and borough councils392,86574,198572,61383,6381,123,314
County councils110,22015,588167,04914,014306,871
District councils30,9853,63539,9424,28778,850
Electric power boards131,95838,109617,80747,991835,864
Harbour boards97,75624,97662,71622,212207,660
Regional authorities55,81725,00838,99225,673145,490
Urban drainage boards9,2225,2666,49442721,409
Catchment boards21,4991,22418,4551,79942,977
Pest destruction boards6,4131264,47747211,488
Urban transport board9,0151783,8021,99714,991
Other local authorities42,9254,221120,58119,353187,076
               Total908,671192,5281,652,928221,8632,975,990

Table 27.42. RECEIPTS AND PAYMENTS OF TERRITORIAL LOCAL AUTHORITIES

ItemYear Ended 31 March
198219831984
Receipts$(million)
Rates and grants in lieu515.2608.9648.1
Other taxes and fines47.051.557.0
Grants and contributions from Central Government173.1215.5293.2
Grants and contributions from local authorities47.549.255.2
Sales of main product331.4395.4417.6
Other commodities and services208.3256.5265.3
Interest37.147.956.5
Miscellaneous current receipts47.453.867.1
               Total1,407.01,678.81,860.0
Labour and related costs495.5553.4591.6
Interest paid85.097.9118.5
Levies and grants to Central Government and local authorities46.957.983.6
Bulk purchase for resale168.5199.2214.4
Other commodities and services424.3526.4605.6
Other current payments35 241.049.7
               Subtotal1,255.41,475.81,663.5
               Less capitalised payments44.752.970.5
               Total1,210.71,422.91,593.0

A wide variety of public utilities and amenities are provided by territorial local government, the main activities being electricity supply, water supply, roading, sewerage, drainage, and refuse collection.

Table 27.43. RECEIPTS AND PAYMENTS OF TERRITORIAL LOCAL GOVERNMENT BY ACTIVITY*

Activity1981-821982-831983-84
ReceiptsPaymentsReceiptsPaymentsReceiptsPayments

*Excludes sales and purchases of fixed assets and repayments of loans.

 $(million)
Electricity supply210.9191.5255.1214.0266.2232.3
Passenger transport59.362.468.169.694.893.5
Water supply113.6100.2128.5115.7137.3122.7
Road construction and maintenance230.5228.9270.8272.4329.7329.7
Refuse, sewerage, and drainage119.6118.4144.7136.4160.4150.0
Abattoirs20.419.321.919.820.618.9
Libraries33.932.338.736.841.139.5
Parks and domains82.981.197.092.1111.5102.6

Many of the services provided are also trading undertakings. Generally speaking, territorial local authorities are restrained from operating trading undertakings that are particularly profitable. Public transport undertakings, which are usually a substantial burden upon ratepayers, are particularly unprofitable. The only major exception is electricity distribution, from which most territorial local authorities make surpluses.

Borrowing

Under the Local Authorities Loans Act 1956 all loan proposals of local authorities require the sanction of the Local Authorities Loans Board. This does not apply to money borrowed in anticipation of revenue, or loans covered by the Local Authorities Exemption Order 1983.

As a general rule, local authorities may raise a loan by special order and without a poll of electors, but in the case of a local authority that is a rating body, a poll of electors, is to be taken if—

  1. the Local Authorities Loans Board requires a poll to be taken; or

  2. before the date fixed for the meeting of the local authority to confirm the resolution to raise the loan not less than 5 percent of the electors demand a poll; or

  3. the local authority itself decides to take a poll.

A poll is not required in cases such as renewal loans, loans raised for emergency expenditure by reason of flood, storm, earthquake, etc., or loans for work of national and local importance and carried out by an agreement between the Government and a local authority.

Where a poll is required it shall be deemed to be carried if a bare majority of the valid votes recorded is in favour of the proposal. The properties and revenue of the local authority may be pledged as security for the repayment of any principal sum or interest thereon, or a special rate may be levied for the same purpose.

The borrowing activities of certain types of local authority are subject to special provisions. Under the Hospitals Act 1957 and the Area Health Boards Act 1983 hospital boards and area health boards must first obtain the approval of the Minister of Health before exercising their powers to borrow. Harbour boards derive their authority to borrow for harbour works from special empowering legislation and similar authority is given for the capital works of certain other local authorities.

Prior to 9 November 1984 the rates for new loans and redemption loans raised by local authorities were determined by the Local Authorities Loans Board, subject to approval of the Minister of Finance of maximum rates. Since then the rates for loans have been determined by the rates which prevail on the New Zealand securities market.

Loans sanctioned, authorised, raised, and uplifted.

Table 27.44. OPERATIONS OF THE LOCAL AUTHORITIES LOANS BOARD*

Year Ended 31 MarchValue of Total ApplicationsSanctioned
New WorksRedemption LoansExemption Order Notifications

*Includes hospital boards and Fire Service Commission.

 $(million)
1981410.5351.417.9..
1982400.6311.350.4..
1983409.9289.937.0..
1984404.53,0431.682.6
1985388.9303.4-80.0

Table 27.45. LOANS AUTHORISED, RAISED AND UPLIFTED

AuthorityAmounts Authorised Year Ended 31 March 1985Amounts Raised to 31 March 1985Balance Not Raised at 31 March 1985Amounts Uplifted to 31 March 1985
 $(thousand)
Territorial Local Authority
Cities and boroughs114,87844,23370,64542,356
County councils25,2229,85615,3669,167
District councils7,5823,1854,3973,151
Regional authority55,68337455,309374
Town districts1010-10
Other Local Authority
Catchment districts1,7631,0736901,070
Electric power and gas boards45,36118,99626,36518,996
Harbour boards25,49714,06611,43114,066
Urban drainage boards5,5841,0174,5671,017
Tussock boards7979-79
Central Government
Fire Service Commission2,1771,2569211,256
Hospital boards34,35327,3457,00816,755
               Total318,889121,990196,899108,797

Table 27.46. GROSS PUBLIC DEBT OF LOCAL AUTHORITIES AND ANNUAL CHARGES*

Year Ended 31 MarchGross Public DebtAnnual Loan Charge
AmountRate Per HeadAmountRate Per Head

*Excludes hospital board debt and Fire Service Commission debt.

 $(000)$$(000)$
19801,385,349440.4164,11252.5
19811,546,220487.6185,36458.4
19821,672,000524.8209,61265.8
19831,878,835582.3299,29592.8
19842,062,593632.5335,407102.9

In Table 28.46 it should be noted that the debt of electric power districts shown does not represent the complete local authority debt on account of electric power activities, since a considerable portion of the city and borough debt, and a small part of the county and town district debt also, was incurred for that purpose.

Table 27.47. GROSS PUBLIC DEBT BY TYPE OF LOCAL AUTHORITY

Year Ended 31 MarchCities, Boroughs and Town DistrictsCountiesRegional AuthoritiesElectric Power DistrictsHarbour DistrictsUrban Drainage DistrictsOther DistrictsTotal
 $(thousand)
1980552,835107,437146,751205,166243,73953,85675,5651,385,349
1981614,271121,031184,150240,925251,05554,35280,4361,546,220
1982663,969136,091203,074301,162253,83953,73460,1301,672,000
1983731,870153,288223,369374,270271,13553,80371,0991,878,835
1984800,935169,314235,956438,609288,52753,95275,3002,062,593

Further information

Financial Statement (“Budget”) (Parl. paper B. 6).

Forms of Financial Assistance Available to Local Authorities—Department of Internal Affairs (1980).

Local Authority Finance in New Zealand—Report of the Local Authority Finance Committee (1973).

Local Authority Statistics—Department of Statistics (annual).

Monthly Abstract of Statistics—Department of Statistics.

Monthly Abstract of Statistics August 1985 Appendix (Estates passed for death duty)—Department of Statistics.

The Public Accounts (Parl. paper B. 1 [Pt. I and II]).

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

Report of the Inland Revenue Department (Parl. paper B. 23).

Report of the Local Authorities Loans Board (Parl. paper B. 17).

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

Report of the Valuation Department (Parl. paper G. 26).

Chapter 28. 28 Goods and Services Tax

The Goods and Services Tax (GST) is a tax on spending. It is passed on to consumers of goods and services and is designed to tax their spending evenly and fairly. Sellers of goods and services collect GST on behalf of the Government. GST will be charged on almost all goods and services, whether supplied by government, business, or non-profit organisations, and regardless of profit, charitable, or other motives behind the sale. Almost all regular suppliers of goods and services are liable to register for GST.

GST is a value added tax (VAT) of the type commonly found in Europe. However GST can be distinguished from VAT, as the New Zealand Government has decided upon a single rate tax with almost no exemptions, and problems encountered overseas should not occur in New Zealand.

28.1 Background to tax reform

History of tax in New Zealand

The oldest taxes in the history of taxation have been indirect taxes, which are taxes collected by merchants on the goods and services they supply. Taxes like income tax have really only developed since the 18th century from early origins in house taxes, hearth taxes, and window taxes.

In New Zealand customs duties were introduced in 1340 by Lieutenant Governor William Hobson. Income tax was introduced in 1891 by the Liberal Prime Minister, John Ballance, to boost revenue for his government's sweeping social reform measures. In 1933 a sales tax levied at the wholesale level was introduced by the Liberal Prime Minister, George Forbes. At the time it was regarded as a temporary measure during a period of economic crisis, but in 1986 the wholesale sales tax is still in place. In 1957 PAYE (pay as you earn) on income tax was introduced by the then National Government, and came into effect in 1958.

It has only been since the 1920s that direct taxation through income taxes has risen to prominence as the main means of financing government spending. The development was based on the idea that direct taxes could be used to allocate the burden of taxation more fairly, according to the ability of individuals to pay.

People do not like paying taxes, and they especially do not like paying high taxes. They respond to the prospect of high taxation by adjusting the way they earn, or how much they work, or where they live. It is these responses which have lessened the social effects of progressive rates of income tax in many countries.

The trend overseas is towards more reliance on indirect taxes for collecting revenue, taking advantage of modern systems, which are being used to collect Goods and Services Tax in New Zealand.

Economic background to GST

The fast pace of tax reform in New Zealand since July 1984 has to be seen against a longer history of calls for economic and fiscal reform, which arose out of concern at the relatively poor performance of the New Zealand economy. Like many OECD countries, New Zealand experienced rapid inflation in the late 1970s. The tax system was ill-equipped to deal with the phenomenon. By far the most significant result was an effective increase in average income tax rates. Less significant but still noticeable was the effect on the indirect taxes which are levied on the volume of goods traded, rather than on their value, and amount to approximately one-quarter of existing specific indirect taxes.

The effects of inflation on the tax system laid bare fundamental problems with the way it operated. Both the direct and indirect tax systems had become eroded over the years. The granting of concessions and a failure to adapt to emerging commercial practices meant that it was relatively easy for some people to arrange their affairs so that they paid little or no tax.

When total household incomes are considered, the average rates of tax paid by households are not as progressive as the average rates of tax would suggest, since they relate to individual incomes. The wide dispersion of average rates of tax at any given level of household income is indicated in the following graph, which is based on data supplied in the Household Income and Expenditure Survey 1983-84. As the Household Income and Expenditure Survey was not specifically designed to measure tax liability, the data shown in the graph should be used with caution. A more detailed description of the methodology can be found in The Incidence of Indirect Taxes, Volume 2, prepared by the Department of Statistics and published by the Institute of Policy Studies.

The adjustment of salary and wage incomes for inflation also meant that an increasing proportion of the tax-paying population faced higher average and marginal tax rates, because the income tax rates were not adjusted. This is referred to as fiscal drag.

The idea of placing greater reliance on indirect taxes is not new. The Taxation Review Committee (Ross Committee) in 1967 and the Task Force on Tax Reform (McCaw Committee) in 1982 both proposed that more emphasis should be given to indirect taxes.

Economic reform in New Zealand since July 1984 has been focused on improving the efficiency of resource use by removing artificial barriers to competition, and establishing an appropriate economic environment, in which relative prices for goods and services govern the pattern of production, distribution, savings, and consumption. The approach has been for the Government' to take a lower profile in private decision-making, and to set a broad economic framework in which markets can operate with a minimum of government intervention. This approach lies at the heart of the rationale for introducing the Goods and Services Tax to broaden the tax base, reform existing indirect taxes, and lower personal income tax rates. GST is accompanied by income tax cuts of 20 percent on average, brought about by introducing a new three-step personal tax scale, changes to personal and family rebates, and increased social security benefits.

Process of tax reform

The Task Force on Tax Reform (McCaw Committee) reported in 1982 in favour of a value-added tax as a means of reforming the existing indirect taxes, and reducing income tax in the medium term. Nothing came of that recommendation, nor of the committee's proposal to broaden the sales tax base as an interim step. Following the November 1984 announcement of the Goods and Services Tax a white paper was released in March 1985. Interested parties were invited to make submissions on ways in which the proposals might be changed to improve and simplify the operation of the tax. A panel of private sector experts headed by Dr Don Brash received and reviewed 1459 submissions on the proposals. The Brash panel's recommendations were published, annotated with an indication of their acceptability to the Government. A further 55 submissions were received on matters relating to financial services and real estate, and were the subject of a second report. The draft of the Goods and Services Tax legislation, which had been released with the white paper, was substantially re-written before introduction to Parliament on 22 August 1985. The Select Committee received about 270 submissions on the draft Bill. The Goods and Services Tax Act 1985 was passed on 3 December.

Review of personal tax and social security

While the Goods and Services Tax was under development, a parallel process of study and consultation was being undertaken to review the personal tax and social security systems. The two exercises were drawn together when, on 20 August 1985, the Minister of Finance delivered the Statement on Taxation and Benefit Reform, which:

  1. announced that the GST rate would be 10 percent;

  2. published the GST transitional arrangements for contracts spanning the introduction date;

  3. gave further details on the indirect taxes which would be superseded by GST;

  4. announced measures to compensate beneficiaries for the impact of GST on prices; and

  5. announced the new income tax rates and rebates, the Family Support Scheme, and changes to social security benefits to apply from 1 October 1986.

A calendar of recent events affecting taxes in New Zealand is given in section 28.6 of this chapter.

Aim of GST

The introduction of GST is a significant step in the development of the New Zealand taxation system. The benefits of the move are seen as being the achievement of a broadening in the base of the tax system, which would allow a general lowering of marginal tax rates. A more efficient and less distortionary tax system is just one part of the programme of economic reforms being undertaken in New Zealand. Those reforms have as their goal an improvement in the medium term performance of the New Zealand economy. Freeing up the economy by removing distorting taxes and subsidies, and improving the efficiency of resource use are seen as keys to improving economic performance.

Operation of GST

The Goods and Services Tax is an indirect tax which is imposed on each sale (referred to as “supply” in the legislation) of goods and services, starting from the beginning of the production cycle, and finishing with the sale to the final (domestic) consumer. Suppliers of goods and services who are registered for GST pay GST on purchases of goods and services, but a credit may be claimed for this tax (called “input tax”). Therefore no GST in borne by the supplier. The supplier includes GST in the price of goods and services sold and this amount (called “output tax”) less the input tax paid is remitted, with a GST return, to the Inland Revenue Department. GST is therefore borne only by the final consumer. The net effect of offsetting purchases and sales is to impose the tax at each stage of production on the “value added” (the sum of wages, profits and other payments to factors of production) not provided by external suppliers to the business. Thus, although intermediate purchasers incur GST, because of the credit-offset mechanism the final and total burden of GST is borne by the domestic consumer. GST is not a cost to businesses, unless the business deals in or purchases exempt goods and services, provides employee fringe benefits, or does not register.

An example of the operation of GST is shown in Table 28.1. In Table 28.1 the total tax collected by the Inland Revenue Department is one-eleventh (9 cents) of the selling price to the consumer (99 cents), or 10 percent of the price before GST was paid on the goods. The only person who does not get a credit for the GST paid is the consumer, who pays 99 cents for a can of fruit. The orchardist is not shown as claiming any credits of GST paid, as the example deals only with one specific transaction (i.e. the inputs and outputs relating to a single can of fruit). In practice GST is levied on the total transactions of a business and therefore the orchardist would be claiming a credit for GST paid on all his inputs (e.g., fertiliser, sprays, fuel).

Table 28.1. ILLUSTRATION OF GST BASED ON A TIN OF FRUIT

 PurchaseSalePaid to IRD
Price PaidGSTTotalPrice ChargedGSTTotal

Source: GST Coordinating Office.

 cents
Orchardist   101111
Cannery10111404443
Wholesaler40444606662
Retailer60666909993
Consumer90999    
Total  99   9

Taxable activities

GST applies at a rate of 10 percent to goods and services “supplied” in the course of carrying on a “taxable activity” in New Zealand. A “taxable activity” is any activity which is carried on continuously or regularly and involves, or is intended to involve, in whole or in part, the supply of goods or services to any other person for a consideration. “Taxable activity” also includes the activities of any public authority or local authority.

As GST is a tax on goods and services rather than income, an intention to make a profit is irrelevant. Therefore, many organisations which are not currently considered to be carrying on a business for income tax purposes are nevertheless engaged in taxable activities for GST. These organisations include charities, trusts, co-operatives, sporting and other clubs, statutory bodies and local authorities.

However, the term “taxable activity” does not include private recreation pursuits or hobbies, employment under a contract of service, or exempt activities. The tax applies to some business sales of land and property, local authority rates, fire and general insurance and supplies made by government departments.

Registration and payment

Registration for GST is compulsory where the value of taxable supplies exceeds $24,000 in any 12-month period. Registration is optional for persons with an annual turnover under $24,000, but there are advantages in registering, as unregistered persons cannot claim a credit for GST included in their costs.

The point at which GST is levied is the earlier date of invoice or payment. Invoices are broadly defined to include any document which notifies an obligation to pay for a good or service.

The standard return period is two months. These are staggered and allocated randomly. All taxpayers have the option of adopting a one-month return period. Taxpayers with under $250,000 turnover per annum may elect to adopt a six-month return period. Also where the annual value of taxable supplies does not exceed $500,000 the registered person may choose to adopt a cash basis for accounting. Otherwise the registered person must account for GST on an invoice basis. This is similar to the accruals basis of accounting in that adjustments are made for creditors and debtors at the end of the GST return periods.

Tax payments and returns are due on the first day of the second month following the end of the return period. The penalty for late payment of GST is 10 percent plus 2 percent per month compounding.

Net tax credits are refundable on completion of the return period and lodgment of the return. Interest will be paid to the taxpayer on refunds of GST unpaid within 15 working days of lodgment of the return.

Record keeping requirements are the same as for income tax, and records must be held for ten years.

Zero-rated and exempt supplies

GST is imposed on all goods and services supplied in New Zealand (except exempt goods and services). Goods and services exported are “zero-rated”. One of the important features of GST is the distinction between exempt and zero-rated goods and services. Goods and services which are zero-rated are liable to GST, but the rate of tax applying to them is zero. Therefore a person who deals only in exports is required to become a registered person and is able to claim a refund of GST paid on all business inputs. However, a person whose only business activity is exempt cannot be registered and is not able to claim any credits for GST paid on business inputs for use in that exempt activity.

Coverage of GST

The estimated net coverage of the tax is 102 percent of household consumption expenditure. (The coverage is estimated to be over 100 percent because of the way in which sales of land, housing and finance are treated.) In applying the tax only two tax rates, 10 percent or zero percent, are levied, and no other reduced or higher rates apply. Exports, the sale of a business as a going concern, and specified exported services are zero-rated; and tax does not have to be paid, and credits can be claimed.

Exports are defined as goods exported under the provisions of the Customs Act 1966, and are zero-rated. Services recognised as being exported are those where the activity is performed outside New Zealand, or performed on goods temporarily imported into New Zealand, or supplied to a person not resident in New Zealand who is outside the country at the time of the performance. There are no special provisions for zero-rating of goods purchased by tourists as in some countries.

Imports of goods are subject to GST on importation on a c.i.f. (costs including insurance and freight) value, inclusive of customs and excise duties (if any). Valuation is in accordance with the GATT valuation code. Commercial importers pay GST and duty on a deferred payment scheme up to 20 days following the importation period in which the goods are entered.

Items exempt (without credit) from GST are financial services, provision of domestic rental accommodation, and sale of donated goods by non-profit bodies.

Secondhand goods are taxable only when sold in the course of carrying on a taxable activity. Private individuals selling cars, holding garage sales, or selling their belongings to other private individuals are not subject to GST. Non-profit organisations trading in donated goods are also exempt from GST. Vendors trading in secondhand goods are entitled to a notional deduction of one-eleventh of the purchase price, subject to conditions about adequate record-keeping. This deduction has the effect of confining the tax liability to the dealer's margin on the sale. The deduction is not available in respect of goods purchased before 1 October 1986 or goods to be exported.

Table 28.2 shows an analysis of the GST base in market prices for 1983-84 and Table 28.3 shows the derivation of the base from published National Accounts information.

Table 28.2. ANALYSIS OF THE BASE OF GOODS AND SERVICES TAX BY MAJOR ITEM

Item1983-84 ValuesPercentage of Total Tax Base
ItemSubtotal

*Totals may not add due to rounding

Source: The Treasury.

 $(m)$(m)%
Food 3,92019
    Takeaways and meals eaten away from home670  
    All other food3,250  
Housing 2,08010
    New dwelling construction costs1,200  
    Home transfer costs130  
Hardware, building supplies, etc.750  
Household operation 3,17015
    Home appliances and maintenance equipment850  
    Furniture and furnishings680  
    Household textiles, etc.350  
    Electricity, fuel and power420  
    Household equipment, utensils, supplies450  
    Rates420  
Apparel 9805
    Adult810  
    Children170  
Footwear 2901
Transportation 3,50017
    Commuter (taxi, bus, rail)290  
    New motor vehicles520  
Net purchases of other transport equipment480  
    Petrol, parts, repairs1,490  
    Other purchased transport720  
Miscellaneous 3,26016
    Tobacco products460  
    Alcoholic beverages1,370  
    Personal, leisure, pet supplies, etc.1,090  
    Newspapers90  
    Stationery, books, etc.250  
Services, household and personal 1,3907
    Television licence fees30  
    Postage and telegraph320  
    Gambling, TAB and other190  
    Other services850  
Other 1,98010
    Purchases from wholesale establishments120  
    Tourists expenditure at non-retail outlets430  
    Fire and general insurance service charge160  
    Inputs to finance and life insurance1,000  
    Inputs to private non-profit organisations170  
    Sales of land100  
                   Estimated maximum net tax base*20.570 100

Table 28.3. ESTIMATE OF THE BASE OF GOODS AND SERVICES TAX IN 1983-84

 Estimate

*Department of Statistics National Accounts definition.

†For National Accounts purposes households are both producers and consumers of shelter of their own production. These are intermediate inputs to the production of shelter consumed in the form of imputed rent.

‡Includes notional 5 percent of alcohol and tobacco production not included as consumption by New. Zealand households.

§Includes both payments via households like the general medical services benefit and subsidies to private schools as well as expenditure on inputs to government-provided non-market services consumed by households,

|| Estimate of output of financial services supplied to households. Total value added by financial institutions of which approximately one-third is supplied to households.

¶Intermediate consumption expenditure by private non-profit organisations serving households.

* *Estimate of the potential tax base net of items of expenditure by government departments. Tax on this will affect expenditure and revenue by the same amount, allowing for timing differences in payment and collection.

Source: The Treasury.

 $(m)
Household consumption expenditure*20,150
Adjustments 
  - Imputed rent(1,980)
  -Rent(590)
  + Intermediate Inputs to household “production” of shelter730
  + Rates on dwellings420
  -Tourist expenditure overseas(320)
  + Tourist expenditure in New Zealand accommodation alcohol, tobacco530
  -Subsidy on goods and services consumed by households§(710)
  + New home purchases1,200
  + Home transfer costs130
  - Income in kind(10)
  - Salaries and wages in kind(20)
  - Imputed service charge-financial services(310)
  + Consumer durable trade-in20
  + Intermediate inputs to financial services ||1,000
  + Insurance charge on owner-occupied dwellings60
Other private consumption expenditures170
Other land sales100
                    Estimated maximum net tax base**20,570

Application to public sector activities. Trading activities carried on by the Government provide goods and services to the public and to other government agencies, and they are considered to compete at the margin with private firms supplying the same product or substitutes. Trading organisations such as the Post Office, State Coal Mines, Electricity Division, and the Railways and Forestry Corporations, as well as the Government Printing Office, should be required to register and charge GST on the same basis as private firms to preserve competitive neutrality.

In the case of administrative departments the issue is less clear. There are conceptual grounds for arguing that administrative departments should be taxable. Since there is no net revenue collection from this treatment, it is questionable whether the administrative work in collecting GST can be justified by the better accounting presentation of the financial side of departments' activities which would result. There are basically three alternative treatments of administrative departments' activities: exemption from the tax, zero-rating, or full taxation. Each alternative is complicated by the fact that most government agencies do make some taxable supplies of goods and services. Both exemption and zero-rating would require provision to identify and account for taxable and exempt or zero-rated supplies separately in almost all departments. Under present policies there is a trend towards commercialising government departments, requiring them to charge the public and each other for services provided.

The other conceptual issue concerns the role of government agencies. There are two views: one is that departments consume goods and services on behalf of the Government, and are indistinguishable from the Government; the other is that departments produce advice, administration, and a range of other services, which are either consumed by the Government, or provided to the public at large. In most cases the only thing distinguishing the activities of departments from similar private organisations is the absence of an identifiable, marketable output. Part of the cost of introducing GST is that every government agency is involved to some degree in complying, no matter how GST is applied to them. Of the alternative treatments, full taxation has been judged to involve the least work across the broadest range of departments, although the degree of difference between this and other options is not great.

Local authorities. The Goods and Services Tax Act 1985 makes provisions for local bodies to be taxable, with special rules allowing them to account for tax on a cash (payments) basis. This conforms with the cash accounting basis required by legislation on financial reporting.

The major argument advanced against local bodies being treated as suppliers of goods and services is that to impose GST on rates would be a “tax on tax”. The point has validity, as local body rates are compulsory levies on property owners. They are non-specific when rates are set independently of the value of services supplied to ratepayers. This has in fact been a source of the complaints about the rating system. In this respect rates fulfil the definition of a tax as a compulsory unilateral (unrequited) payment to Government with no guaranteed exchange of goods or services. There is another side. Although rates are levied in the form of a tax, they are payments for services supplied to residents within a local authority area. However inexact the pricing of local body services may be from an economic perspective, there is a supply of goods and services by the local body to the ratepayer. Since a supply of goods and services takes place, the issue in applying GST comes down to valuation of the proportion of the output of local authorities which is not sold in a market. The most convenient value to adopt is the value placed on these goods and services by the local bodies themselves. This valuation is cost recovered in rating income.

Financial services. The application of indirect tax to consumption of financial services has proved to be a complex problem worldwide. It would appear that there is no known tax treatment which does not have accompanying practical problems in satisfactorily taxing the intermediation, asset trading, and fee and commission activity of financial institutions.

The essential difference between financial and other commercial transactions is that payments to and from a financial intermediary do not accurately reflect the monetary value of the service provided. This is because the charge for service is generally bundled together with other costs, such as interest, or embedded in the price of a financial instrument such as commercial bills. On a typical transaction, the cost of the service is spread across numerous separate deals with lenders and borrowers. The question of who pays for the service, or even who receives services, is usually a matter determined in the market place, rather than by a contractual relationship. The cost of services supplied by financial institutions is borne in part by borrowers in a higher cost of funds, and by savers in a reduced yield. In one sense, financial instruments are like secondhand goods, in that they are traded between the household and business sectors, at prices which do not accurately reflect the service element supplied by the dealer.

A lengthy process of consultation was undertaken in an attempt to find an efficient and satisfactory treatment of financial services. Six options were identified and considered. These were: full taxation, a separate tax rate set at 10 percent of an average intermediation margin, zero-rating, exemption, an additive tax on value added, and net operating income as proxy for output. The Government's preferred approach was exemption without credit (where no tax is charged for the services, but any tax on inputs cannot be recovered). Little consensus emerged from the consultative process. Options other than exemption and zero-rating were discarded by most participants early in the process. The Government was reluctant to lose all tax on the consumption of financial services, effectively ruling out zero-rating. That left only exemption without credit.

Measuring the value of life, fire, and general insurance services provided to policyholders is also difficult. Life insurance premiums are made up of three elements: the savings of the policyholder, an indemnity, and a management charge. Fire and accident insurance does not have the savings element found in life insurance. The taxable service is equal to the cost of providing the insurance services, including any pre-tax profits earned.

In both cases it is important to stress that the value of services is not the whole of the premium paid, but only that portion of the premium (and associated earnings) retained by the administering company. On balance it was decided to tax fire and general insurance using a method similar to that for secondhand goods. Life insurance is exempt.

28.3 Tax rate, revenue and price effects

The 10 percent rate for GST is expected to raise revenue of $2,800 million in 1987-88. Although a higher rate of GST would have allowed greater reform of the income tax system, it would also have cost more in compensation to low income groups and beneficiaries. There are a number of reasons for preferring a lower rate of GST. They include minimising changes to purchasing patterns of both businesses and consumers which would have occurred in the period prior to the introduction of GST. The size of such changes, or their effects on particular firms, cannot be quantified, but they are probably widespread and noticeable. A 10 percent rate also allows simple calculation of tax by consumers and businesses. In setting the rate other matters considered were the extent existing indirect taxes would need reform, and the effects of GST on the distribution of holdings of real assets, durable goods, and financial assets and liabilities.

Replacement of indirect taxes

GST replaces most other indirect taxes that are levied purely to raise revenue. The most important of these is sales tax. In addition to GST, selective taxes continue to be levied on alcoholic beverages and tobacco products, motor vehicles under 3500 kilograms gross vehicle weight, petroleum fuels, and gaming turnover.

Film hire tax, international departure tax, and domestic air travel tax were abolished on 30 September 1986. Levies and special taxes designed to recover the cost of Government-provided goods and services are retained and GST applies as well. Examples in this category include road user charges, the National Roads Fund portion of motor spirits duty, and equivalent taxes on CNG and LPG. Customs duty, stamp duty, energy resources levy, and motor vehicle fees and charges also remain, as does a Consolidated Account portion of motor spirits duty and equivalent taxes on other petroleum fuels.

Effect of GST on prices

When the remission of indirect taxes is taken into account, the estimated one-off impact of GST on consumer prices is put at no more than 5 percent

GST will not add 10 percent to prices, as many people incorrectly believe, because GST replaces previous sales taxes. It may surprise many people to learn that before GST they committed on average 15.2 cents out of every dollar they spent to existing indirect taxes. There is a common belief that sales tax applied only to luxuries, and that people paid sales tax only when they bought TV sets, videos, stereos, etc. In fact sales tax was collected from a wide range of ordinary, average household items, Soft drinks, stationery, cosmetics, car parts, tyres, toys, and many other goods, which could not be described as luxuries, were taxed at more than 10 percent under the previous system of sales tax. Also as sales taxes had developed a number of anomalies had arisen. For example, brushes were taxed but feather dusters were not. It is expected that there will be a reduction in many costs, both directly to consumers and indirectly to businesses, which will be passed on in lower prices. Half the revenue obtained from GST goes towards removing these hidden sales taxes in the things that every New Zealand household buys. Where the removal of sales taxes is not adequate on its own, provisions have been made by way of income and benefit adjustments to ensure that everyone is fully compensated for the higher prices resulting from the introduction of GST.

To avoid having severe disruptions to consumer spending patterns some sales taxes were reduced before October 1986. As part of the first step in the GST package the 30, 40, and 50 percent rates of tax on goods other than liquor, tobacco, and cars were reduced to 20 percent on 1 April 1986.

In displaying prices of goods and services, the Government policy is for the total price inclusive of GST to be shown. This can be done either by showing the final price alone, or by showing the base price plus GST in addition to the final price. Although this policy has not been backed by legislation, the Government has indicated that pricing practices will be monitored, and regulations would be introduced if this proved necessary.

28.4 Income adjustments

Income tax scales

During the introduction of GST three different income tax scales have operated, as shown in Table 28.4. In Table 28.4 the first column gives the scale announced in the 1984 Budget, which applied from 1 December 1984 to 1 October 1986. The second column shows the income tax scale announced in the 1985 Statement on Tax and Benefit reform, which took effect from 1 October 1986. During the financial year ending 31 March 1987, which covers the transition, total income is to be taxed on the average rates taken from these two scales, that is at the combined rates shown in the third column of Table 28.4. An indication of the change in weekly income resulting from these tax changes is shown in Table 28.5.

Table 28.4. INCOME TAX RATES

Income RangeBasic Tax RateTransitional Rate 1 April 1986 to 31 March 1987
1 December 84 to 30 September 86From 1 October 1986

Source: Inland Revenue Department.

 Percent
Under $6,00020.01517.50
Over $6,000 but under $9,50033.01524.00
Over $9,500 but under $25,00033.03031.50
Over $25,000 but under $30,00045.13037.55
Over $30,000 but under $38,00056.14852.05
Over $38,00066.04857.00

Table 28.5. INCOME TAX CUTS FOR FULL-TIME PRINCIPAL EARNERS WITHOUT CHILDREN

Cross IncomeIncome TaxIncome Tax Cut*
AnnualWeekly1 December 84 to 30 September 86From 1 October 86

*The tax cuts were calculated on a full-year basis then divided by 52. The tax cuts are due to the new tax scale, the removal of the Principal Income Earner Rebate and the introduction of the transitional tax allowance.

Source: GST Co-ordinating Office.

  $$$$$
  6,24012014.274.0010.27
  7,28014020.8711.009.87
  8,32016027.4718.009.47
  9,36018034.0725.009.07
10,40020040.6732.608.07
11,44022047.2738.608.67
12,48024055.2344.6010.63
13,52026065.1350.6014.53
14,56028075.0356.6018.43
15,60030083.6762.6021.07
18,200350100.1777.6022.57
20,800400116.6792.6024.07
23,400450133.17107.6025.57
26,000500151.88122.6029.28
28,600550174.43137.6036.83
31,200600199.40156.7542.65
36,400700255.50204.7550.75
41,600800318.36252.7565.61
46,800900384.36300.7583.61
52,0001,000450.36348.75101.61

Effect on higher income groups

The change in the income tax scale results in income tax cuts in the range of 20 to 25 percent for most income groups, and proportionately even higher cuts for lower income earners. Some people have been concerned that those in the higher group get a larger cut in dollar terms, which represents a greater percentage increase in net pay.

It is true that on paper the high income groups get the biggest income tax cuts in dollar terms. To see why this is so, the whole reasoning behind the tax reform package must be examined. The tax system before GST relied very heavily on taxation of personal income as the basic source of revenue. However, not all personal income was taxed, which meant that there was scope for people to arrange their affairs to minimise the amount of income tax they paid. This option was not readily available to low income earners, and particularly not to wage and salary earners, who had PAYE taken from their pay packets before they received their income.

Because the system relied so heavily on personal income taxes, the rate of tax had to be high to collect the required revenue. This meant that, as more and more people found ways of avoiding or evading income tax, the rates in turn became higher, and there was a greater incentive to avoid tax. More people found ways to avoid (or evade) tax, and so it went on in a vicious circle. The position was finally reached where for many paying their full share of income tax was voluntary, whereas those paying PAYE had no choice in the matter. The amount of income tax collected on annual incomes over $30,000 was only 13 percent of total income tax collected in 1984-85.

The high marginal tax rates of 45 percent, 56 percent, and 66 percent in the tax scale had become counter-productive. Even though on paper, people in the high income groups should have been paying those rates of tax, many of them simply did not. Even if people could not avoid them directly by finding forms of income which were not taxed, they chose not to earn higher income at all, e.g. by not working overtime, getting promoted, or investing money in productive activities.

The income tax system had become overloaded and this was having a detrimental effect on the economy as a whole. The objectives of the tax reform package were to:

  1. reduce the high marginal income tax rates;

  2. bring more forms of income into the tax base; and

  3. reduce the dependence on personal income taxes.

While reducing the top marginal tax rates does give a larger dollar increase to those in the high income groups, this applies only if they are actually paying the tax on all their income, and at the high rates. Bringing more forms of income into the tax base, and reducing the dependence on personal income taxes for revenue means that the high income groups will find it more difficult to avoid paying tax in future, and the rewards from doing so will be reduced.

A recent study in the United States showed that, when the top rate of income tax was cut from 70 percent to 50 percent, the taxes paid by the top 180 000 taxpayers actually increased.

The effect of the tax changes is to reduce the average tax rate of someone in a high income bracket from well over 50 percent to just over 40 percent. They will still pay a far greater proportion of their income in tax than someone on say, $20,000, whose average tax rate will be cut from just under 30 percent to 23 percent. This means that our tax system is still progressive (i.e. higher incomes are taxed at higher rates). The social equity of GST is also influenced by the fact that high income groups are the people who pay most GST, because they spend the most money.

Effect on lower incomes

People in lower income groups with children receive an even greater increase in their net disposable income through the “Family Support” scheme. The scheme, which replaces family care and the former family tax rebate, gives benefits of $36 a week for the first child, and $16 a week for other children. The assistance starts to decline at a rote of 18 cents in the dollar when the family's income reaches $14,000.

Where there are two parents, half is to be paid to each. Where there is one parent, he or she receives the full amount. The family benefit of $6 a week per child continues to be paid as before.

The amounts paid under Family Support are given in Table 28.6. The increase in net disposable income for families with two children can be read from Table 28.7.

In assessing the impact of GST on different types of households, it was found that one group which paid above average amounts of sales tax were superannuitants. This was the case even though superannuitants spent below average amounts on some of the most highly taxed commodities, such as alcohol and tobacco. As part of the compensation to low income groups all basic benefits, including national superannuation, were increased by 5 percent on the pay day closest to 1 October 1986.

Table 28.6. FAMILY SUPPORT

Family Income per Week (Before Tax)Approximate Weekly Payment Number of Children
123456

Source: Inland Revenue Department.

Up to $26936526884100116
$270 to $2983046627894110
$299 to $3262440567288104
$327 to $3552036526884100
$356 to $394122844607692
$395 to $43262238547086
$433 to $471-1430466278
$472 to $509-824405672
$510 to $557--16324864
$558 to $605--6223854
$606 to $653---143046
$654 to $711----2036
$712 to $769----1026
$770 to $826-----14

Table 28.7. INCREASE IN WEEKLY HOUSEHOLD INCOME FOR A FAMILY WITH TWO CHILDREN

Principal Income (Weekly)Second Income (Weekly) $
04080100150200300400500

Source: GST Co-ordinating Office.

12070.0070.0055.8039.80     
14070.0063.9235.8021.10     
16070.0049.7723.7023.7032.67    
18063.5439.3726.3028.8036.67    
20055.2528.9728.8030.2037.2136.20   
22044.8525.9729.8031.2034.2138.20   
24034.4528.0830.8032.2032.5641.55   
26025.4529.0831.8033.2036.9546.85   
28027.6030.0832.8034.2042.2550.57   
30028.6031.0833.8035.9246.2949.6142.15  
35031.1033.5838.5240.9244.7142.1143.65  
40034.1238.7641.9439.3437.2142.1545.1548.15 
45039.1239.6834.4431.8437.2443.6546.6549.65 
50039.7434.3833.0834.0840.9547.3550.3553.3558.56
55038.2938.6740.6341.6348.5054.9057.9060.9066.11
60042.6544.4946.4547.4554.3260.7363.7366.7371.93

General effects on incomes

A person on the average wage who spends all of their new after-tax income on GST taxable items (which is highly unlikely, because they have rent or mortgage payments, which are not taxed) would spend $14 on GST as compared with someone on $100,000 a year (or 5 times the average wage), who would pay $54 a week GST.

28.5 Administration of GST

The Goods and Services Tax Act 1985 provides the legal authority for GST to be collected by the Inland Revenue Department. The Inland Revenue Department also collects income tax, estate, gift, gaming, and stamp duties. Soon after the decision to introduce GST was made, there was some discussion about which department would administer the new tax. The main options were Inland Revenue and Customs Departments, although the approach of establishing a new department was examined. While the Customs Department had 53 years experience with sales tax, only about 130 of its 1100 staff were employed in the area. Its client base was also limited to about 30 000 importers and payers of sales tax. The Inland Revenue Department had 3000 staff engaged primarily on income tax work, and was already dealing with almost the full population of GST taxpayers. The more extensive Inland Revenue Department operation was considered on balance to have the greater capacity to implement the tax in the required timeframe. Provision has been made for 1000 staff to be engaged on GST-related work. However, not all these staff are fully employed on GST, as they combine income tax work with GST. Of 130 Customs staff, 10 will be required to collect remaining selective indirect taxes, and 80 have been redeveloped to GST-related import and export work. The Customs Department collects GST on imports.

Publicity

In addition to the publicity and taxpayer education carried on by the Inland Revenue Department, the Government established an independent office to handle public education. The GST Co-ordinating Office is responsible for producing brochures, television advertisements and public education programmes about GST and the associated reforms. It is to be wound up after the introduction of GST.

28.6 GST-related measures

This calendar covers taxation reform measures related to GST between the Budget in November 1984 and 1 April 1986. The 1986 Budget was presented on 31 July 1986 and contained a number of measures affecting direct and indirect taxation. Changes have been incorporated elsewhere in this chapter as necessary.

8 November 1984. The Minister of Finance presented his 1984 Budget. The main fax reforms were:

  1. a comprehensive Goods and Services Tax (GST), reform of existing indirect taxes, and compensatory changes to the personal income tax and social welfare systems;

  2. a fringe benefit tax on employer-provided cars, low-interest loans and free, subsidised or discounted goods and services, payable by the employer at a flat rate of 45 percent;

  3. abolition of the personal tax exemption for life insurance premiums and superannuation contributions for new contracts of life insurance, personal lump sum superannuation, and non-subsidised employee lump sum superannuation;

  4. removal of the income tax rebate for interest payments on first home mortgages for houses purchased after Budget night, and termination of the rebate for local body rates;

  5. an increase in the principal income earner rebate as part of the “low-income assistance package”, and the standard marginal tax rate on personal income was increased from 31.5 to 33 percent across a slightly expanded income bracket to assist in the financing of the package;

  6. reduction of wholesale sales tax rates on a variety of goods; and

  7. increases in taxes on beer, wine and spirits.

10 November 1984. The Minister of Trade and Industry announced the motor vehicle industry plan, including cuts in sales tax on motor vehicles.

11 February—1 March 1985. A three-member IMF mission visited Wellington to evaluate the implications of the introduction of GST.

14 February 1985. The Minister of Finance announced an increase in the exemption level of taxable “other-income” for the national superannuitant surcharge.

18 March 1985. The Ministers of Finance and Social Welfare released a Budget '85 Task Force discussion document on the personal income tax and social security benefit systems.

23 March 1985. Fringe benefit tax legislation passed.

26 March 1985. White Paper on the GST, with draft legislation was released by the Minister of Finance, inviting public submissions to an advisory panel of private sector experts chaired by Dr D. T. Brash.

24 April 1985. The Inland Revenue Department released to interested parties a commentary and draft legislation on the treatment of land and residential accommodation under GST.

4 June 1985. The GST Advisory Panel (Brash Panel) made its first report to the Minister of Finance suggesting a number of simplifications to the tax.

6 June 1985. The Minister of Finance released proposals for the treatment of financial services under GST and invited public submissions to the Brash Panel.

13 June 1985. The Minister of Finance presented his 1985 Budget. Tax measures announced included a further increase in the exempt levels of taxable “other income” of national superannuitants to $12,000 per annum for married couples and $7,200 per annum for single persons; and a reduction in sales tax on cash registers.

15 June 1985. The Deputy Prime Minister and Minister of Finance announced a delay in the introduction of GST from 1 April to 1 October 1986.

21 June 1985. The Minister of Finance released most of the first report of the Brash Panel

24 July 1985. The Brash Panel made its second report to the Minister of Finance with recommendations on the application of GST to financial services, residential accommodation and property.

20 August 1985. The Minister of Finance presented his Statement on Taxation and Benefit Reform. This announced:

  1. a uniform rate of 10 percent for GST;

  2. continuation, in addition to GST, of selective taxes on alcoholic beverages, tobacco products, and racing and imposition of selective taxes on motor vehicles;

  3. retention of Customs duty, energy resources levy, motor vehicle fees and charges, road user charges, motor spirits duty and equivalent taxes on CNG and LPG.

  4. a review of stamp and cheque duties in the 1986 Budget;

  5. transitional measures relating to G'. T on long-term contracts;

  6. an increase in the company and fringe benefit tax rates to coincide with the new top marginal personal income tax rate;

  7. the Government's intention to introduce a full imputation system for taxation of distributed company income from the 1988-89 financial year;

  8. the taxation of certain types of overseas income of New Zealand companies;

  9. the Government's intention to introduce an intermediate withholding tax on domestic interest payments from 1 April 1987;

  10. a new three-rate personal income tax scale, featuring a reduction in the existing top marginal rate from 66 to 48 percent, and a transitional tax allowance for low-income full-time earners without children, to take effect from 1 October 1986 along with abolition of the principal income earner rebate;

  11. a new package of family assistance, “Family Support”, available to low- and middle-income families, including income earners, income-tested beneficiaries and national superannuitants; and

  12. taxation of all income-tested benefits.

22 August 1985. The Minister of Finance released the second report of the Brash Panel on GST (and Treasury reports) on financial services, residential accommodation and property. The Goods and Services Tax Bill was introduced.

27 September 1985. Submissions to the Select Committee on the GST Bill closed with 269, plus 22 supplementary submissions received. The committee considered written and heard oral submissions and reported back to Parliament on 21 November when the second reading commenced. This was completed on 26 November and the committee stages on 28 November, when the Bill was given its third reading.

3 December 1985. Royal assent given to the Goods and Services Tax Act 1985.

12 December 1985. The Minister of Finance presented an Economic Statement which included the following tax measures:

  1. abolition of the 10-year drawback rule for agricultural, horticultural, agricultural and forestry land sales;

  2. abolition of the $10,000 loss-offset limitation for livestock or arable farming;

  3. removal of immediate write-off of development expenditure in the primary sector (agriculture, horticulture, agriculture and forestry) and its replacement by a depreciation regime;

  4. abolition of the existing nil and standard value systems of livestock valuation and taxation and their replacement by a trading stock scheme or a herd scheme with new standard values; and

  5. reduction of tariff rates to zero on most goods not made in New Zealand;

10 March 1986. The Minister of Finance released a consultative document on primary sector taxation which presented details of changes to the taxation of livestock and of primary sector capital expenditure. Submissions to a Consultative Committee chaired by Dr D. T. Brash were invited.

14 March 1986. The Minister of Customs announced the Government's intention to repeal the Sales Tax Act 1974 once GST is in place, and to collect remaining selective indirect taxes on an excise basis, and to abolish storage warehouses.

27 March 1986. The Ministers of Finance and Customs jointly announced cuts in sales tax.

1 April 1986. The Ministers of Finance and Social Welfare released “Benefits, Taxes and the 1985 Budget: A Review and Summary”, which outlined the process of public participation, and analysed the submissions received in response to the earlier discussion document on the same topic.

Further information

Background of tax reform

Benefits, Taxes and the 1985 Budget: a discussion paper prepared by the Budget '85 Task Force

The Treasury, Department of Social Welfare.

Budget 1984—Government Printer.

Budget 1985—Government Printer.

Financial Services and the GST—Victoria University Press for the Institute of Policy Studies.

The Gist of GST—Victoria University Press for the Institute of Policy Studies.

Goods and Services Tax: a booklet explaining measures announced in the 1985 Budget—Government Printer.

GST: the key to lower income tax—GST Co-ordinating Office (1985).

The Incidence of Indirect Taxes—Victoria University Press for the Institute of Policy Studies (1935) (2 volumes).

White Paper on Goods and Services Tax—Government Printer (1985).

Operation of GST

Arts and Crafts & GST—GST Co-ordinating Office.

The Building and Construction Industry & GST—GST Co-ordinating Office.

Clubs, Charities and Associations & GST—GST Co-ordinating Office.

A Fairer Deal—GST Co-ordinating Office.

Farmers & GST—GST Co-ordinating Office.

The Fire and General Insurance Industry & GST—GST Co-ordinating Office.

Goods and Services Tax: Guide to Registration—Inland Revenue Department.

Goods and Services Tax: Non-profit Bodies Registration—Inland Revenue Department.

GST Guide—Inland Revenue Department.

Imports, Exports & GST—GST Co-ordinating Office.

Local Authorities & GST—GST Co-ordinating Office.

Pricing & GST—GST Co-ordinating Office.

Property Sales, Rentals & GST—GST Co-ordinating Office.

Retailers & GST—GST Co-ordinating Office.

Second Hand Goods and Auctions & GST—GST Co-ordinating Office.

Self-employed & GST—GST Co-ordinating Office.

The Travel and Tourism Industry & GST—GST Co-ordinating Office.

Understanding GSTA Guide to the Legislation—GST Co-ordinating Office.

Working with GSTA Basic Working Guide—GST Co-ordinating Office.

Family Support Scheme

Family Support: The Basic Facts—Inland Revenue Department.

Supplement to the PAYE Tax Guide—Inland Revenue Department, July 1986 (also deals with the changed income tax scales).

Chapter 29. 29 National economy

29.1 National Accounts

The New Zealand System of National Accounts (NZSNA) provides a systematic analysis of the performance of the New Zealand economy. Information on production and associated flows of income and expenditure meet a variety of needs, including current economic analysis, economic forecasting, and economic policy formulation.

The system is based on an internationally accepted standard detailed in A System of National Accounts (published by the United Nations, 1968). In addition to providing key economic information, the national accounts also provide the basic framework of standard concepts, definitions, and classifications for economic agents and transactions. The Department of Statistics' economic censuses and surveys are all integrated within this system, as is the inter-industry study. Balance of payments statistics follow similar concepts and provide the basis of the External Transactions Account of the national accounts.

Annual national accounts for years ended 31 March are calculated twice each year. In September, provisonal estimates are prepared for the preceding March year for the Consolidated Accounts for the Nation only. These estimates are revised next March as more information becomes available. Detailed breakdowns of some of the main aggregates are also published at this time.

The information used to compile the accounts becomes available progressively over a lengthy period, and for many areas of the economy may not be available for up to 3 years after the March year to which it relates. Consequently, national accounts estimates are subject to revision during this period. All revisions to earlier years are published with the estimates prepared in March.

Tables in this section contain data for the latest available five years. For the Consolidated Accounts of the Nation, data are provided for the years ended March 1981 to 1985, while detailed breakdowns of the main aggregates are included for the years ended March 1980 to 1984. Full national accounts series back to 1971-72 are available from the Department of Statistics on request.

Explanation of national accounting terms

Gross domestic product (GDP). The total market value of goods and services produced in New Zealand after deducting the cost of goods and services utilized in the process of production, but before deducting allowances for the consumption of fixed capital.

Gross national expenditure. The total expenditure within a given period on final goods and services by New Zealand residents (i.e., excluding goods and services used up during the process of production).

Gross national product (GNP). The income accruing within a given period to New Zealand residents from their services in supplying factors of production in New Zealand and overseas, plus net indirect taxes, and before the deduction of allowances for the consumption of fixed capital.

National income at market prices. This item is equivalent to Gross National Product after the deduction of allowances for consumption of fixed capital. It is a measure of income accruing to New Zealanders from their services in supplying factors of production in New Zealand and overseas, plus net indirect taxes.

National disposable income. The total income of New Zealand residents from all sources available for final consumption or savings.

Compensation of employees. Payments of salaries and wages whether in cash or in kind to employees. Includes contributions paid on employees' behalf to superannuation funds, private pension schemes, the Accident Compensation Corporation, casualty and life insurance schemes, etc.

Consumption of fixed capital. The value of depreciation at ordinary rates allowed for taxation purposes, plus an estimate for the normal rate of accidental damage based on the insurance claims by each industry group.

Indirect taxes. Taxes which are assessed on producers in respect of the production, sale, purchase, and use of goods and services, and which add to the market process of these goods and services. Includes sales tax, local authority rates, import and excise duties, and also registration fees, such as motor vehicle registration, which are paid by producers.

Subsidies. Grants made by Government to market-oriented producers who regard the transfers as an addition to income from current production. These grants include payments to ensure a guaranteed price, or to enable market prices of goods and services to be held below the cost of production. Transfers made by local authorities out of rates receipts to finance the losses of their trading departments, and deliberately incurred losses of government trading organisations are also included.

Intermediate consumption. The value of non-durable goods and services used in production. Valuation is at purchaser's values.

Gross output at producer's values:

  1. Market Production Groups—The total market value including commodity taxes on all goods and services produced during the year, including stocks of work-in-progress. Included is output produced for both sale in the market, and capital formation on own account.

  2. Non-market Production Groups—These producers may sell a proportion of their output in the market, and such receipts are included in total output. However, most of the services produced represent unmarketed output and are valued at cost price. This assumption is necessary because there is no other basis for valuation.

Operating surplus. This is a residual item, being gross output at producer's values less the sum of intermediate consumption, compensation of employees, consumption of fixed capital, and indirect taxes net of subsidies. It is approximately equal to accounting profit before the deduction of direct taxes, dividends, and bad debts, and before the deduction of interest paid. Or the addition of interest received.

Final consumption expenditure:

  1. Private households—All outlays on consumer goods and services, including expenditure on consumer durables such as motor vehicles and furniture, included are payments made by the Government on behalf of households, and the imputed rent of owner-occupied dwellings.

  2. General (Central and Local) Government Services and Private Non-Profit Services to Households—Total current expenditure by these producers less the value of any sales or own account capital formation (i.e., the total net current costs incurred in providing the services).

Increase in stocks. The change in value of stocks of raw materials, work-in-progress, and finished goods, between the beginning and the end of the year.

Gross fixed capital formation. The outlays of producers on durable real assets, such as buildings, motor vehicles, plant and machinery, hydro-electric construction, roading, and improvements to land. In measuring the outlays, sales of similar goods are deducted. Land is excluded from gross fixed capital formation. Included is the value of construction work done by a firm's own employees. The term “gross” indicates that consumption of fixed capital has not been deducted from the value of the outlays.

Statistical discrepancy. In these accounts the items making up Gross Domestic Product and Expenditure on Gross Domestic Product are estimated independently. Including the statistical discrepancy on the expenditure side of the first Consolidated Account is simply a convention. It does not imply that one side of this account is more accurate than the other.

Savings. The residual item in the National Income and Outlay Account after all current receipts and disbursements have been accounted for.

Purchase of intangible assets from the rest of the world, net The value of purchases by residents from non-residents of intangible assets, less sales of such assets by residents to non-residents. Examples of these types of assets are mineral rights, fishing quotas, patents, copyrights, and trademarks. In the NZSNA flows associated with this item are not distinguishable in the source data and consequently are included in exports/imports of goods and services.

Capital transfers from the rest of the world, net. The excess of the value of capital transfers by non-residents to New Zealand residents over the value of similar transfers by residents to non-residents. Capital transfers are unrequited transfers in cash or in kind which are not considered by the recipient

as adding to current income, nor, by the donor as reducing current income. Examples are unilateral transfers of capital goods, legacies, investment grants, and transfers of migrants' funds. In the NZSNA it has not been possible to separately indentify all of these flows, and they have been included in current transfers to/from the rest of the world.

Exports of goods and services. All goods and services produced by New Zealand residents and purchased by the rest of the world. Exports of merchandise are valued at f.o.b. (free-on-board).

Imports of goods and services. All goods and services produced by the rest of the world and purchased by New Zealand residents. Imports of merchandise are valued at c.i.f. (cost, including insurance and freight).

Compensation of employees to/from the rest of the world. In theory, these items cover the compensation residents of one country earn from employment in another where they are classed as non-resident, because their stay is for a period of less than 12 months. In practice, available data does not permit estimates of these items.

Property and entrepreneurial income to/from the rest of the world. The property income component of these items refers to the transfers of income accruing to the owners of financial assets, intangible assets such as patents, copyrights and concessions, and mineral rights. This income is mainly in the form of interest, dividends, rent, and royalties. The entrepreneurial income refers to the actual withdrawals of income from enterprises operating overseas, such as the branches of foreign companies.

Other current transfers to/from the rest of the world. In theory, these items cover all current transfers other than property and entrepreneurial income. However, in practice, it has not been possible to identify all these transfers separately, and the figures are deficient in 2 respects. First, not all current transfers can be identified. In particular, those associated with insurance transactions are omitted, since all insurance flows are recorded as either exports or imports of services. Second, it has proved difficult to distinguish between current and capital transfers to the rest of the world, and in the NZSNA all have been treated as current.

Surplus of the nation on current transactions. The excess in the External Transactions Account of current receipts over current disbursements.

Net incurrence of foreign liabilities. The change in actual indebtedness of New Zealanders to nonresidents. It relates to the issue, less the redemption, of financial claims, such as currency and transferable deposits, bonds, corporate equities, loans, and long term trade credits. Changes in the holdings of paid-up capital of companies, and changes in inter-company indebtedness are also included.

Net acquisition of foreign financial assets. The change in actual claims by New Zealanders, or nonresidents. It relates to the purchase, less the sale, of financial claims, such as those described for the net incurrence of foreign liabilities. It also includes changes in New Zealand's holdings of special drawing rights in its reserve position at the International Monetary Fund, and in the assets of the New Zealand banking system.

Table 29.1. PRINCIPAL AGGREGATES OF THE NATIONAL ACCOUNTS

AggregatesYear Ended March
19811982198319841985P
 $(million)
Gross Domestic Product24,46429,32532,36834,93540,978
  Plus net factor receipts from rest of world-511-615-860-1,128-1,470
Gross National Product23,95328,71031,50833,80739,508
  Less consumption of fixed capital-1,670-1,896-2,151-2,444-2,837
National Income at Market Prices22,28326,81529,35731,36336,671
  Plus net current transfers from rest of world4032118113208
National Disposable Income22,32326,84729,47531,47636,879

Consolidated accounts of the nation

The Consolidated Accounts of the Nation comprise 4 accounts:

  1. Gross Domestic Product and Expenditure—Gross Domestic Product is a measure of the value added from all economic activity in New Zealand. The account shows the various forms of income generated by the economy, and the categories of the final expenditure on the domestic product.

  2. National disposable income and its appropriation—National disposable income is the value of income available to New Zealanders, consisting mainly of the incomes generated in New Zealand. Adjustments are made for the income paid to. and received from the rest of the world. The account also shows that part of disposable income which was spent by New Zealanders on current consumption, and the portion of income which was saved. (iii) Capital finance—Capital expenditure is recorded in this account. The difference between the accumulation of capital assets and the sources of funds (mainly savings and the income set aside for the use of assets) gives a residual to be borrowed from (or lent to) the rest of the world.

  3. External transactions—This account brings together all transactions with the rest of the world. The residual “Surplus of Nation on Current Transactions” records New Zealand's net borrowing from the rest of the world.

Table 29.2. GROSS DOMESTIC PRODUCT AND EXPENDITURE

itemYear Ended March
19811982198319841985P
 $(million)
Compensation of employees13,10015,78117,32017,59819,169
Operating surplus7,7069,33410,22611,76315,104
Consumption of fixed capital1,6701,8962,1512,4442,337
Indirect taxes2,3432,9143,4393,8444,495
Less subsidies-355-600-767-714-627
Gross Domestic Product24,46429,32532,36834,93540,978
Final consumption expenditure—
    General government4,1525,0425,6395,9216,533
    Private14,56417,01119,07320,43923,129
Increase in stocks1,4041,5491,0818253,525
Gross fixed capital formation4,4516,2157,4367,9288,820
Statistical discrepancy15841127644387
Gross national expenditure24,72930,22733,50635,15642,394
Exports of goods and services7,0248,2929,11610,75213,294
Less imports of goods and services-7,289-9,194-10,254-10,973-14,710
Expenditure on Gross Domestic Product24,46429,32532,36834,93540,978

Table 29.3. NATIONAL INCOME AND OUTLAY

ItemYear Ended March
19811982198319841985P
 $(million)
Final consumption expenditure—
    Government—Central3,6564,4514,9635,1395,666
    Government—Local496591677782867
    Private—Households14,34316,73318,78020,15022,811
    Private—Non-profit organisations serving households221278293288318
    Savings3,6074,7944,7635,1177,217
Appropriation of National Disposable income22,32326,84729,47531,47636,879
Compensation of employees13,10015,78117,32017,59819,169
Compensation of employees from the rest of the world, net..........
Operating surplus7,7069,33410,22611,76315,104
Property and entrepreneurial income from the rest of the world, net.-511-615-860-1,128-1.470
Indirect taxes2,3432,9143,4393,8444,495
Less subsidies-355-600-767-714-627
National income22,28326,81529,35731,36336,671
Current transfers from the rest of the world, net4032118113208
National Disposable Income22,32326,84729,47531,47636,879

Table 29.4. CAPITAL FINANCE

ItemYear Ended March
19811982198319841985P

*Includes all government-owned producer enterprises.

 $(million)
Increase in stocks1,4041,5491,0818253,525
Gross Fixed Capital Formation—
    Private2,9834,2624,7684,9226,001
    Central Government*1,0351,4602,0802,3872,163
    Local Government*433493588618656
Purchase of intangible assets from the rest of the world, net..........
Net lending to the rest of the world-736-1,485-1,880-1,236-2,678
Gross Accumulation5,1196,2786,6387,5179,667
Savings3,6074,7944,7635,1177,217
Consumption of fixed capital1,6701,8962,1512,4442,837
Capital transfers from the rest of the world, net..........
Statistical discrepancy-158-411-276-44-387
Finance of Gross Accumulation5,1196,2786,6387,5179,667

Table 29.5. EXTERNAL TRANSACTIONS

ItemYear Ended March
19811982198319841983P
 $(million)
 Current
Exports of goods and services7,0248,2929,11610,75213,294
Compensation of employees from the rest of the world..........
Property and entrepreneurial income from the rest of the world93188208232275
Other current transfers from the rest of the world302343413455653
Current receipts7,4198,8239,73711,43914,222
Imports of goods and services7,2899,19410,25410.97314,710
Compensation of employees to the rest of the world..........
Property and entrepreneur income to the rest of the world6048031,0681,3601,745
Other current transfers to the rest of the world262311295342445
Surplus of nation on current transactions-736-1,485-1,880-1,236-2,678
Current disbursements7,4198,8239,73711,43914,222
 Capital
Surplus of nation on current transactions-736-1,485-1,880-1,236-2,678
Capital transfers from the rest of the world, net..........
Net incurrence of foreign liabilities7781,7873,984....
Capital receipts423022,104....
Purchase of intangible assets from the rest of the world, net..........
Net acquisition of foreign financial assets17-41.489....
Statistical discrepancy25306615....
Capital disbursements423022,104....

Gross domestic product by production group

The contribution of each producer to GDP is measured by the value which it adds in producing goods and services. For each producer, value added may be calculated in 2 ways: as the gross output of goods and services less the value of goods and services used up in production; or, as the sum of the individual components of value added, i.e., compensation of employees, plus operating surplus, plus consumption of fixed capital, plus indirect taxes less subsidies.

Individual producers are grouped into production groups on the basis of common economic activity. The classification used to define these production groups distinguishes between those producers that are market-oriented, and those that produce goods and services not normally marketed. Market producers are classified by industry, based on the New Zealand Standard Industrial Classification, while those not normally producing for the market are subdivided into those owned by central government, by local government, and by private non-profit organisations which provide services for households.

The system explicitly recognises the Government as producer when it carries out its conventional role of the provision of administrative, health, education, and defence services, etc. Similarly, the large number of organisations which provide services on a non-profit basis—religious orders, schools, hospitals, sporting clubs, etc.—are included as a separate group in the national accounts. Also included among the non-market production groups is an account recording the wages paid by households employing domestic labour.

Table 29.6, showing contributions to GDP by production group, is a summary of data contained in full production accounts which are prepared for each of twenty-five production groups, and which are also analysed by private, central government, and local government sectors. These accounts are published annually in an appendix to the Monthly Abstract of Statistics.

Table 29.6. CONTRIBUTION TO GROSS DOMESTIC PRODUCT (GDP) BY PRODUCTION GROUP

Production GroupYear Ended March
19801981198219831984
 $(million)
Market production groups
Agriculture2,1392,1612,2482,1692,602
Fishing and hunting7271103125157
Forestry and logging197295339344418
Mining and quarrying157185264437354
Food, beverages, and tobacco1,1691,5081,7542,0382,369
Textiles, apparel, and leather577610783803770
Manufacture of wood products334396496455513
Manufacture of paper products, and printing570666807879920
Manufacture of chemicals, petroleum, rubber, plastic573525645669646
Manufacture of non-metallic mineral products202227310325327
Basic metal industries188181221266290
Manufacture of fabricated metal products1,2371,3571,8411,8991,967
Other manufacturing5462917887
Electricity, gas, and water6837628429431,013
Construction9751,1531,5251,7271,814
Trade, restaurants, and hotels4,2585,2456,1676,9047,308
Transport and storage1,1401,2521,4651,6751,983
Communication5286427299171,030
Financing, insurance, real estate, and business services2,0342,3852,9673,4483,937
Ownership of owner-occupied dwellings7538311,0041,1811,257
Community, social, and personal services7478611,0201,1411,196
Nominal industry (bank service charge)-421-532-687-836-972
        Total, market production groups18,16520,84324,93327,58829,986
Non-market production groups—
Central government services2,2472.8223,3563,6733,752
Local government services229279355402426
Private non-profit services197236271274256
Domestic services of households1415181921
        Total, non-market production groups2,6873,3524,0004,3684,455
        Total, all production groups20,85224,19628,93331,95534,441
Plus import duties212231337362432
Plus other indirect taxes2837555162
Gross Domestic Product21,09224.46429,32532,36834,935

In Table 29.6, the entry 'Nominal Industry (bank service charge)' requires further explanation. Banks and similar financial institutions largely finance their activities by the excess of interest, and other property income received, over property income paid out. In the national accounts, property income receipts and payments are regarded as transfers, and not as receipts and payments for a financial service. Therefore, if financial institutions were treated like producers in other industries, their value added would be very small, due to their property income being excluded from the production account.

To overcome this problem financial institutions are recorded as receiving an imputed bank service charge, which is paid by the users of banking services. Rather than spread the payment of this imputed charge across all users, in the NZSNA the convention is adopted that it is all paid by a nominal industry,

which accordingly has a negative operating surplus equal to the value of the charge. The result is that financial institutions show a realistic operating surplus, while the total operating surplus of all producers and GDP is unaffected.

Gross fixed capital formation

Gross fixed capital formation tables record purchases of capital assets, reduced by the value of sales, plus the value of construction work done by an establishment's own employees; no deduction has been made for assets used up during the period of account. Land purchases and sales, but not land improvements, are excluded by definition.

The information in Tables 29.7 and 29.8 showing gross fixed capital formation is also available broken down by private, and central and local government sectors.

Table 29.7. GROSS CAPITAL FORMATION BY PRODUCTION GROUP

Production CroupYear Ended March
19801981198219831984
 $(million)
Market production groups—
Agriculture534625820784763
Fishing and hunting
Forestry and logging2636413436
Mining and quarrying789846125136
Manufacture of food, beverages, and tobacco206315407373395
Textiles, apparel, and leather3829365352
Manufacture of wood products2124283230
Manufacture of paper products, and printing7084113121128
Manufacture of chemicals, petroleum, rubber, plastic771273501,013944
Manufacture of non-metallic mineral products1718515637
Basic rnetal industries1829135317369
Manufacture of fabricated metal products8890147123117
Other manufacturing33334
Electricity, gas, and water375404490555577
Construction9278124124163
Trade, restaurants, and hotels294328406454549
Transport and storage263278578535408
Communication6398119197277
Financing, insurance, real estate and business services379389557597739
Community, social, and personal services†
Ownership of owner-occupied dwellings6417761,0891,1901,343
               Total, market production groups3,2833,8285,5406,6857,067
Non-market production groups—
Central government services344383405459488
Local government services172199223240276
Private non-profit services3441475297
Domestic services of households-----
               Total, non-market, production groups549622675751861
               Total, all production groups3,8334,4516,2157,4367,928

Table 29.8. GROSS FIXED CAPITAL FORMATION BY TYPE OF CAPITAL GOOD

Year Ended MarchResidential BuildingsNon-Residential BuildingsOther ConstructionLand ImprovementsTransport EquipmentPlant, Machinery, and Other EquipmentTotal
 $(million)
1979-807127495051645971,1043,833
1980-818528115782226571,3314,451
1981-821,1541,0329662851,1301,6486,215
1982-831,2761,1461,9112881,0721,7437,436
1983-841,4341,2311,9212629332,1487,928

Increase in stocks.Table 29.9 shows the increase in the book values of raw materials, work-in-progress, and finished goods stocks by production group.

Table 29.9. INCREASE IN STOCKS

Production GroupYear Ended March
19801981198219831984
 $(million)
Market, production groups—
Agriculture24211986-65272
Fishing and hunting13-14-
Forestry and logging121205258289365
Mining and quarrying5413--2
Manufacture of food, beverages, and tobacco999997-12-6
Textiles, apparel, and leather732267-119
Manufacture of wood products27263222-18
Manufacture of paper products, and printing224525423
Manufacture of chemicals, petroleum, rubber, and plastic126384358-8
Manufacture of non-metallic mineral products145157-2
Basic metal industries422227224
Manufacture of fabricated metal products13963163106-47
Other manufacturing73861
Electricity, gas, and water1011252249
Construction-4188338
Trade, restaurants, and hotels866662656510103
Transport and storage151811412
Communication1413214142
Financing, insurance, real estate, and business services, community, social, personal services372x- 6
Ownership of owner-occupied dwellings-----
               Total, market production groups1,8231,3811,5461,078820
Non-market production groups
Central government services723345
Local government services
Private non-profit services
Domestic services of households---..-
               Total, all production groups1,8301,4041,5491,081825

Agricultural production

The Agriculture Production Account covers the activities of all market-oriented establishments classified under agricultural and livestock production, or agricultural services (major groups 111 and 112 of the New Zealand Standard Industrial Classification). All types of farms are included, together with agricultural services operated by contractors, such as top-dressing, weed-spraying, harvesting, threshing, shearing, and scrub-cutting. Other services included are herd testing and artificial insemination. Farms operated as trading enterprises by the Department of Lands and Survey, and the Department of Maori Affairs are included.

The account includes all income derived from the activities of the establishments covered, including their characteristic farming activities, and also their other productive activities. However, investment income (such as dividends and interest) accruing to the proprietors of farming establishments is excluded.

Tables 29.10 and 29.11 provide commodity analyses for the production account items, intermediate consumption, and gross output.

Table 29.12 is the index of the volume of agricultural production for years ended June. This index covers only major group 111, agricultural and livestock production, i.e., agricultural services are not included. The index shows changes in the volume of production for 11 separate component product groups as well as for total farm production. The index is chain linked year-on-year, and has an expression base of the year ended June 1978 (= 1000).

The Agriculture Production Account is published annually as part of the National Accounts supplement to the Monthly Abstract of Statistics, and this should be consulted for further information on methodology, etc.

Table 29.10. AGRICULTURE—ANALYSIS OF INTERMEDIATE CONSUMPTION

itemYear Ended March
19801981198219831984
 $(million)
Purchase of livestock602536554547804
Feed and grazing132150180218209
Animal health and breeding8596114129133
Weed and pest control4755677579
Fertiliser, lime, and seeds268332406397433
Fuel and power172208242274280
Repairs and maintenance355410490497514
Freight7893109122126
Other (not elsewhere classified)537588693771840
 2,2762,4692,8553,0293,418
Less capitalised development-61-82-103-105-98
         Total, Intermediate Consumption2,2152,3882,7522,9233,320

Table 29.11. AGRICULTURE—ANALYSIS OF GROSS OUTPUT

CommodityYear Ended March
19801981198219831984
 $(million)
Wool823811803755933
Sheep477560585499512
Cattle630545564717724
Pigs6465808689
Dairy products6918501,0201,1831,193
Poultry products97110124146152
Crops and seeds168221279267280
Fruit, nuts, and oilseeds124154183213224
Vegetables153183225225278
Other horticultural products79104127145149
Agricultural services223261295293319
Other products, n.e.c.3350608396
Value of change in livestock—
    Sheep1517060-7270
    Cattle812-2-5346
    Pigs-1-1-1--
    Deer4118323878
    Goats-1267
Sales of live animals592536563558775
Gross Output4,3544,5495,0005,0925,923
NOTE: n.e.c.—not elsewhere classified.

Table 29.12. INDEX OF VOLUME OF AGRICULTURE PRODUCTION
(Year Ended June 1978 = 1000)

CommodityYear Ended June
19801981198219831984
 Volume Index Numbers
Wool11611247118711831176
Sheep11621178115312701295
Cattle980958100010451019
Pigs878865878888938
Dairy products11361092108811131230
Poultry products10491120114412291264
Crops and seeds980961100310941187
Fruit, nuts, and oilseeds12361339163815321910
Vegetables997933103410481052
Other horticultural products15851782190118521898
Other farm products, n.e.c.160118472,0702,5432,758
         Total, All Farm Products11151132114711841245
NOTE: n.e.c.—not elsewhere classified.

Gross Domestic Product at constant prices

Gross Domestic Product at constant prices is calculated by removing the effects of price changes from the current price production accounts. The series below provide a measure of GDP divided into 21 production groups at constant 1977-78 prices.

By removing the effects of price changes, these constant price GDP statistics enable annual comparisons to be made of the relative volume of goods and services produced in the New Zealand economy. Details on industries provide information on structural changes in the economy which are not readily observed in the current price accounts.

With the constant price series it has not been possible to produce separate statistics for all 25 production groups used in the current price accounts.

The production groups which have been amalgamated are:

  1. Manufacturing of fabricated metal products; machinery and equipment; and other manufacturing industries.

  2. Community, social, and personal services; private non-profit services to households; and domestic services of households.

  3. Central government services; and local government services.

Table 29.13. CONTRIBUTION TO GROSS DOMESTIC PRODUCT AT CONSTANT 1977-78 PRICES BY PRODUCTION GROUP

Industrial CroupsYear Ended March
19801981198219831984

*For imputed bank service charge.

 $(million)
Agriculture1,4241,6011,5591,6591,684
Fishing and hunting5259737991
Forestry and logging138154159158162
Mining and quarrying118106114167129
Food, beverages, tobacco868906920966955
Textiles, apparel, and leather457425453463453
Wood and wood products230222247221231
Paper, printing, and publishing447453464447486
Chemicals, petroleum, and plastics316286306295315
Non-metallic mineral products163151173169163
Basic metal industries136121133137151
Machinery and metal products, miscellaneous9809181,0521,0331,032
Electricity, gas, water454466476478506
Construction770761828820850
Trade, restaurants, and hotels3,1603,1113,2683,1863,270
Transport and storage925886898899977
Communications401435476522592
Financing, insurance, real estate and business services1,6251,6751,7511,7381,883
Owner-occupied dwellings734746757771783
Community and personal services754764793796809
General government services1,7971,8061,8441,8591,877
Plus unallocated indirect taxes219210267236227
Less nominal industry*-333-329-336-344-406
         Gross Domestic Product15,83515,93216,67416,75217,218

The series of Gross Domestic Product at constant prices commenced in 1977-78, replacing the previously published Index of Real GDP. A historical series of GDP expressed at 1977-78 base year prices has been calculated back to 1954—55 and is available on request from the Department of Statistics.

Quarterly indexes of Gross Domestic Product at constant prices. In addition to the annual constant price series shown above, quarterly indexes of Gross Domestic Product at constant prices are also calculated. The quarterly indexes are fully reconciled with the annual series, but are not available at the same level of production group detail used in the annual constant price series.

The following production groups from the annual constant price series have been combined:

  1. Fishing and hunting; Forestry and logging; Mining and quarrying;

  2. Food, beverages, tobacco; Textiles, apparel and leather; Wood and wood products; Paper, printing and publishing; Chemicals, petroleum and plastics; Non-metallic mineral products; Basic metal industries; Machinery and metal products, miscellaneous; and

  3. Transport and storage; Communications; Financing, insurance, real estate and business services; Community and personal services.

Quarterly indexes for unallocated indirect taxes and the nominal industry are not available.

Both actual and seasonally adjusted indexes of GDP at constant prices are shown in Table 29.14 for the 4 quarters to September 1985.

Table 29.14. INDEXES OF GROSS DOMESTIC PRODUCT AT CONSTANT PRICES*
(Base: 1977-78 = 100.0)

Industrial GroupsQuarter Ended
December 1984PMarch 1985PJune 1985PSeptember 1985P

*Quarterly indexes are shown as annual equivalents.

Actual—
    Agriculture19515370108
    Fishing, hunting, forestry, mining121120152144
    Manufacturing125118121119
    Electricity, gas, water128123131144
    Construction10391106112
    Trade, restaurants, hotels111105108106
    Owner-occupied dwellings113114114115
    Transport, communications, business and personal services132133134136
    General government services109103109110
            Gross Domestic Product126.1118.2114.9118.6
Seasonally adjusted—
    Agriculture133129130128
    Fishing, hunting, forestry, mining131117152140
    Manufacturing124121121121
    Electricity, gas, water131134129134
    Construction10096103107
    Trade, restaurants, hotels107107109106
    Owner-occupied dwellings113114114115
    Transport, communications, business and personal services131133135136
    General government services109108107107
            Gross Domestic Product119.5118.3120.3119.9

Index of Employment. The Index of Employment is based on the number of persons in the total labour force as estimated by the Department of Labour. The total labour force consists of all persons actively engaged for 20 or more hours per week, including the armed forces and those on subsidised employment, but excluding the unemployed.

Index of Gross Domestic Product at constant prices per labour force member. Increases in Gross Domestic Product at constant prices are partly due to increases in the number of persons engaged in the labour force, and other factors such as greater labour effort, improved skills of the labour force, addition of productive fixed capital assets, and improvements in management. While elements relating to labour inputs are relatively easy to quantify, measurement of other factors is exceedingly difficult.

The indexes of Gross Domestic Product at constant prices, employment, and GDP at constant prices per labour force member are given in Table 29.15.

Table 29.15. INDEX OF GROSS DOMESTIC PRODUCT AT CONSTANT PRICES PER LABOUR FORCE MEMBER
(Base: 1977-78 = 100.0)

YearGDP at Constant 1977-78 PricesEmploymentConstant Price GDP per Labour Force Member
IndexAnnual Percentage IncreaseIndexAnnual Percentage IncreaseIndexAnnual Percentage Increase
1979-80102.72.5101.31.2101.41.3
1980-81103.30.6101.80.5101.50.1
1981-82108.14.6103.31.5104.73.2
1982-83108.60.5104.00.7104.4-0.3
1983-84116.62.8103.5-0.5107.93.4

Real national disposable income

Real national disposable income provides a measure of changes in the purchasing power of income earned by New Zealanders.

The income earned by New Zealanders may be used to purchase both domestically produced and imported goods and services. The quantity of imports which may be purchased out of current income depends upon 2 factors:

  1. the amount of export income available to purchase imports after that income has been adjusted for net property and entrepreneurial payments, and net current transfers, from the rest of the world (this income is termed 'uncommitted exports'); and

  2. changes in the terms of trade, i.e., the ratio of export prices to import prices.

Any purchase of additional imports must be financed by overseas borrowing and/or the depletion of overseas assets.

Table 29.16. UNCOMMITTED EXPORTS

March YearExports of Goods and Services (1)Net Property and Entrepreneurial Income From the Rest of the World (2)Net Current Transfers From the Rest of the World (3)Uncommitted Exports (1) + (2) + (3) (4)
 $(million)
1980-817,024-511406,553
1981-828,292-615327,709
1982-839,116-8601188,374
1983-8410,752-1,1281139,737
1984-85P13,294-1.47020812,032

Uncommitted exports are adjusted for changes in the terms of trade by deflating current values of uncommitted exports by changes in import prices. By adding this to Gross Domestic Product at constant prices, the purchasing power of real national disposable income is derived. This income represents the real value of goods and services which can be purchased, both here and abroad, by New Zealand residents out of current income. Table 29.17 shows the derivation of real national disposable income.

Table 29.17. REAL NATIONAL DISPOSABLE INCOME

March YearCross Domestic Product at 1977-78 Prices (1)Exports at 1977-78 Prices (2)Uncommitted Exports Corrected for the Terms of Trade (3)Real National Disposable Income (1) -(2) + (3) (4)
 $(million)
1980-8115,9324,6004,20615,538
1981-8216,6744,7734,34516,247
1982-8316,7524,8614,27816,170
1983-8417,2185,3524,58916.455
1984-85P18,2585,7294,76517,294

As well as the real national disposable income series an associated series of gross national expenditure at constant prices has been produced. This series is calculated by deducting constant price exports from Gross Domestic Product at constant prices, and adding constant price imports.

Table 29.18. GROSS DOMESTIC PRODUCT AND GROSS NATIONAL EXPENDITURE AT CONSTANT PRICES

March YearCross Domestic Product at 1977-78 Prices (1)Exports at 1977-78 Prices (2)Imports at 1977-78 Prices (3)Gross National Expenditure at 1977-78 Prices (1) - (2) + (3) (4)
 $(million)
1980-8115,9324,6004.67916,011
1981-8216,6744,7735,18217,083
1982-8316,7524,8615,24017,131
1983-8417,2185,3525,17217,038
1984-85P18,2585,7295,82618,355

29.2 Overseas balance of payments

A country's balance of payments statement is a comprehensive account of its economic transactions with the rest of the world. The New Zealand balance of payments estimates are based on the principles set out in the Balance of Payments Manual (Fourth Edition), published by the International Monetary Fund, and are in conformity with the methods used by other countries.

Annual estimates of the New Zealand balance of payments together with an explanation of methodology are shown, in more detail in the annual volume Overseas Balance of Payments published by the Department of Statistics. Annual and quarterly estimates are available through the Department of Statistics Information Network for Official Statistics (INFOS), and are also published in the Monthly Abstract of Statistics.

Major principles

The major principles used in preparing a balance of payments statement are:

  1. Goods sold from one country to another are recorded at the time ownership changes, and other transactions are recorded at the time they occur;

  2. Exports and imports of merchandise are valued at f.o.b. (free on board) in the exporting country;

  3. As far as possible, all transactions are shown on a gross, rather than on a net, settlement basis;

  4. Wherever possible, all transactions are valued at market prices;

  5. All transactions are recorded in New Zealand dollars. Where another currency was used for the transaction the currency exchange rates ruling at the time the transaction occurred have been used to convert the transaction to New Zealand dollars.

Explanation of balance of payments terms

Exports/imports (as published in External Trade Statistics). These are for March years and are otherwise identical with the figures published in Chapter 24, Overseas trade. Exports are valued f.o.b. (free on board); imports are valued c.i.f. (cost, insurance, and freight).

Adjustments to balance of payments concepts. There are some imports and exports which are included in the balance of payments but not in external trade statistics. These include ships and aircraft purchased by New Zealand residents for use in international trade.

A considerable portion of New Zealand's exports are sold on consignment in the United Kingdom. The change of ownership occurs well after the goods have been recorded in New Zealand external trade statistics. Also, the valuation in external trade statistics is an estimate of future realisations. Adjustments to bring trade statistics to balance of payments concepts show mainly as a credit entry.

The debit entry contains the adjustment of imports from c.i.f. value to f.o.b. value.

Exports/imports (f.o.b. exporting country). New Zealand's exports and imports of merchandise on balance of payments basis.

Balance on merchandise trade. The surplus of exports f.o.b. over imports f.o.b.

Transportation, travel, insurance, other miscellaneous services, and government transactions. The exports of services from, and imports of services to, New Zealand. The balance on services is the difference between the sum of the credit entries and the sum of the debit entries for these items.

International investment income. The credit entries show the income accruing to New Zealand residents from overseas investments, while the debit entries show the income accruing to overseas residents from their investments in New Zealand.

Balance on invisibles. The balance on services plus international investment income credits, minus international investment income debits.

Transfers. This item provides the counter-entries for gifts of goods, services, and financial assets to and from New Zealand. Examples are immigrants' transfers, gifts and donations, foreign aid payments, and relief supplies.

Balance on current account. The balance on merchandise trade, plus the balance on invisibles, plus transfer credits, minus transfer debits. It is a measure of the surplus of outflows of goods, services, and transfers from New Zealand over the inflows of goods, services, and transfers into New Zealand.

Private overseas direct investment in New Zealand, New Zealand private direct investment overseas, and other private long-term capital movements. These items show the changes in long-term claims on the rest of the world, and long-term liabilities to the rest of the world, of the private sector.

Government capital movements. Includes all Government capital movements except movements in Government-held reserve assets, and Government borrowing to maintain New Zealand's foreign exchange reserves. Direct investment transactions of Government-owned corporations are included.

Capital movements by monetary institutions. This item includes those capital movements by the Reserve Bank of New Zealand and the trading banks which are not movements in reserve assets or borrowing to maintain reserves.

Residual. This is the balancing item. It is the difference between the sum of the credit column and the sum of the debit column. It covers any errors in the balance of payments estimates and all omissions. Included in the omissions are short-term private capital movements.

Balance before compensatory financing. The balance on all transactions, other than reserve transactions, and transactions undertaken to maintain reserves. This balance is commonly referred to as the overall balance.

Compensatory financing. Borrowing undertaken by the Government, Reserve Bank, and other organisations for the purpose of maintaining the level of New Zealand's reserves.

Balance after compensatory financing. The balance on all transactions other than reserve transactions. The change in New Zealand's foreign exchange reserves due to transactions is the same in direction and magnitude as this balance.

Reserve transactions. The movements in New Zealand's foreign exchange reserves during the year. Reserves measured in New Zealand dollars may change because transactions have occurred, or because the value of the New Zealand dollar has changed relative to the currency in which the reserve asset is denominated. The presentation shows the total change in reserves and, separately, a counterpart to changes in reserves caused by exchange rate changes. The difference of these 2 items is equal to the change in reserves caused by transactions in reserve assets.

New Zealand's reserves may change because of an allocation of Special Drawing Rights by the International Monetary Fund. This is not regarded as a transaction, and there is a counterpart item for such an allocation.

Geographic area. The geographic area covered by New Zealand balance of payments statistics includes metropolitan New Zealand, and the Cook, Niue, and Tokelau Islands, which are part of the New Zealand monetary area.

Geographic 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.

United Kingdom. (including Channel Islands).

Australia. (including Norfolk Island, Christmas Island, and Cocos Islands).

USA. United States of America, Puerto Rico, Virgin Islands, American Samoa, Guam, and other American islands in the Pacific.

Other EEC Countries. The members of the European Economic Community which form a common market; Belgium, the Netherlands, Luxembourg, France, Greece (from 1 January 1981), Italy, the Federal German Republic, Denmark, and Ireland. The United Kingdom is also a member of the EEC but is shown separately.

Other OECD. Austria, Canada, Finland, Greece (before 1 January 1981), lceland, Liechtenstein, Norway, Portugal, Spain, Sweden, Switzerland, and Turkey.

Asia-Oceania. Asian countries east of Iran, and all Pacific countries except Australia, Japan, the Americas, and New Zealand.

Latin America-Caribbean. All the Americas except Canada and the USA.

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, the South Pacific Air Transport Council, and other international organisations.

Accounting system

The system used in preparing the New Zealand balance of payments statement is by double entry. Every transaction results in a pair of equal credit and debit entries. Any entries which are not automatically paired are deliberately furnished with special off-setting entries. The sum of all the credit entries in the statement is thus in principle numerically equal to the sum of all the debit entries, with any inequality that may arise being attributable to net statistical errors and omissions. In practice, the residual item comprises short-term capital movements, data on which are not compiled, as well as errors and omissions.

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 include the general government, all individuals, private non-profit organisations and enterprises, located or operating within the territory of an economy.

General government. The general government of New Zealand includes New Zealand embassies, consulates and military establishments located abroad. Conversely the embassies and consulates, etc. of foreign governments which are located in New Zealand are not considered to be New Zealand residents.

Individuals. The concept of residence adopted for individuals is designed to encompass all persons who may be expected to consume goods and services, participate in production, or engage in other economic activities in New Zealand, on other than a temporary basis.

As a general rule, persons who live, or who intend to live, in New Zealand for at least 1 year are considered to be residents. The exception to this are employees of foreign governments, such as diplomatic and consular representatives, and personnel stationed in New Zealand. These employees are regarded as non-residents. New Zealand citizens who are employed by foreign embassies are regarded as New Zealand residents employed by foreigners.

Enterprises. Enterprises resident in New Zealand are the actual units that engage in the production of goods and services in New Zealand. Therefore 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.

Mobile equipment. Mobile equipment, such as ships, aircraft, and oil rigs, is treated as an import and export of merchandise only when purchased or sold by a New Zealand resident organisation. (Purchases and/or sales are imputed for financial lease arrangements.)

Comparison with overseas exchange transactions record

There are several very important differences between a balance of payments statement and the overseas exchange transactions record prepared by the Reserve Bank (see Chapter 26, Finance, banking and insurance). 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 overseas exchange transactions record shows only transactions involving remittances;

  2. The import and export data in the balance of payments are based on external trade statistics, which enable goods to be valued at a definite and uniform valuation boundary—viz, f.o.b. exporting country. The overseas exchange transactions record 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 2 statements;

  3. Whereas the overseas exchange transactions record includes net settlements in many instances, 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 statement is constructed on a basis of country of purchase for imports and country of destination for exports, country of residence of remitter or remittee, whereas the overseas exchange transactions record is based on the country of monetary settlement.

In essence, balance of payments statistics cover all of New Zealand's transactions with the rest of the world. The overseas exchange transactions record measures only transactions involving receipts and payments of foreign exchange.

Comparison with external transactions account of the national accounts

As far as possible, the balance of payments statement and the external transactions account are prepared using the same principles and definitions. However, they have different uses and there are some major differences in content. The most important of these is the inclusion of the undistributed earnings of direct investment enterprises in the balance of payments. These earnings are included as a memorandum item in the external transactions account. Therefore the balance on current account (i.e., the surplus of the nation on current account) in the external transactions account is more favourable than the balance on current account as shown in the balance of payments statement.

Users preference. A user who is interested in the effect of New Zealand's transactions with the rest of the world on the major economic aggregates of the economy should use the external transactions account of the national accounts, which is an integrated system designed for this type of analysis.

A user who is interested in a close examination of New Zealand's external transactions should use the balance of payments, which offers a more detailed classification of transactions than the external transactions account.

Table 29.19. SUMMARY OF NEW ZEALAND TRANSACTIONS WITH OTHER COUNTRIES

Item1982-831983-84*1984-85*
CreditDebitCreditDebitCreditDebit

*The 1983-84 and 1984-85 years are derived from quarterly Balance of Payments data, and are subject to later revision. Most figures for 1983-84 have been revised. Quarterly statistics are not available on a regional basis.

†Includes direct investment, other private and Government capital movements, capital movements by monetary institutions, and errors and omissions.

 NZ$(million)
Exports/imports (as published in external trade statistics)7,5377,8108,2678,53910,52011,642
Adjustments to balance of payments concepts-353-469162-612-153-880
Exports/imports (f.o.b. exporting country)7,1847,3428,4297,92710,36710,762
         Balance on merchandise trade-158502-395
Transportation1,0521,1681,3491,3441,5331,601
Travel304647384668597839
Insurance233111332351
Other miscellaneous services3027733426934771,074
Government transactions7814111017093191
         Balance on services-1000-712-1,033
International investment income3081,2923521,6303992,026
         Balance on invisibles-1,984-1,990-2,660
Transfers413274454321652416
         Balance on current account-2,004-1,354-2,818
Private overseas direct investment in N.Z. (net)364.............
N.Z. private direct investment overseas (net)...604..........
Other long-term private capital movements—
    Increases in assets (net)...-6..........
    Increases in liabilities (net)1,285.............
Government capital movements (excluding movements in Government-held reserve assets)—
    Increases in assets (net)...50..........
    Increases in liabilities (net)1,102.............
Capital movements by monetary institutions (excluding movements in reserve assets)—
    Increases in assets (net)...-30..........
    Increases in liabilities (net)-.............
Residual (includes short-term private capital movements and errors and omissions)-615...259...1,479...
         Balance before compensatory financing-485-1,094-1,339
Government borrowing (net)1,323...773...1,605...
Reserve bank borrowing (net)13...-125...-194...
Other official borrowing (net)157...-...-23 
IMF drawings (net)-36 -...-...
Total compensatory financing (net)1,456...648...1,388...
         Balance after compensatory financing971-44648
Changes in Reserve Assets
    Monetary gold...-...-...-
Special drawing rights (SDRs)—
    Total change in holdings...-25...-3...9
    Counterpart to allocation/ cancellation...-...-1...-
    Counterpart to valuation changes...-...-...1
    Change due to transactions...-25...-2...8
Reserve position at the IMF—
    Total change in holdings...-...45...-45
    Counterpart to valuation changes........-...-
    Change due to transactions...-...45...-45
Reserve Bank Overseas
    Reserves—
    Total change in holdings...581...-538...751
    Counterpart to valuation changes...............
    Change due to transactions...581...538...751
Treasury Overseas Reserves—
    Total change in holdings...547...-43...97
    Counterpart to valuation changes...133...-91...762
    Change due to transactions...414...48...-665
Summary of reserve
    transactions—
        Total change in reserves....1,104...-538...811
        Counterpart to valuation changes...133...-92...763
        Changes in reserves due to transactions...971...-446...48
              Total reserves at 31 March (as shown in Reserve Bank Bulletin) 1,666 1,128 1,940

Table 29.20. REGIONAL SUMMARIES OF BALANCE OF PAYMENTS TRANSACTIONS

 Merchandise Trade BalanceInvisibles BalanceCurrent Account BalanceNet Capital Movements*Net Compensatory FinancingNet Transactions in Reserves

* Includes all transactions in financial assets and liabilities other than compensatory financing and transactions in reserves. Excludes errors and omissions.

 NZ$(million) 1981-82
United Kingdom328-454-321891,294-8
Other EEC61-141-59412412
Australia-488-303-845406-..
United States-281-384-645-41-30021
Japan-143-131-27384183-108
Other OECD-88-127-20842228-9
Asia-Oceania214-31159-87-1
Latin America Caribbean128-261025-1
Other countries254-262288325
International organisations--39-55-7-13047
               Total 1981-82-14-1,662-1,6286381,331-40
 NZ$(million) 1982-83
United Kingdom156-558-298938255-187
Other EEC10-147-110613-338
Australia-645-212-831169--
United States-225-658-845582575-72
Japan-172-127-296330378-274
Other OECD-89-150-227-1392597
Asia-Oceania126-6349285--
Latin America Caribbean1293133-28--
Other countries551-46506480-100
International organisations--26-85-12-104-7
               Total 1982-83-158-1,984-2,0042,1331,456-971

Commentary. New Zealand is a small economy dependent on overseas trade. The value of New Zealand's exports of merchandise over the 3 years 1982-83, 1983-84 and 1984-85 averaged 24 percent of its Gross Domestic Product (GDP), and the value of its imports of merchandise (valued f.o.b.) also averaged 24 percent. The current account receipts (credits) in its balance of payments averaged 32 percent of its GDP and the current account payments (debits) averaged 38 percent.

Over these 3 years, the earnings from merchandise exports made up 74 percent of total current account credits, while the cost (f.o.b.) of imports of goods accounted for 63 percent of New Zealand's current account payments. Thus New Zealand's balance of payments is dominated by the fluctuations in the earnings from exports and in the payments for imports of goods.

The balance on merchandise trade is strongly influenced by changes in New Zealand's terms of trade as well as by changes in the volumes of exports and of imports.

The balance on current account for the 1934-85 financial year was a deficit of $2,818 million. This can be compared to a deficit of $1,354 million in 1983-84.

The $1,339 million overall deficit (i.e., balance before compensatory financing) for 1984-85 was more than adequately covered by the compensatory financing transactions undertaken by the Government and the Reserve Bank. Consequently, there was a decrease in New Zealand's overseas reserves of $48 million for this latest financial year. This can be compared to an increase of $446 million in New Zealand's overseas reserves in 1983-84.

There has been a long-term trend towards a more diversified pattern of trade for New Zealand. During 1959-60, 54.9 percent of New Zealand's exports were sold to the United Kingdom and 46.8 percent of imports were purchased from the United Kingdom. By 1982-83 the United Kingdom took only 11.5 percent of exports and was the source of only 9.1 percent of imports.

Table 29.21. SUMMARY OF MERCHANDISE TRADE 1982-83

Country or Group of CountriesExports f.o.b.Imports f.o.b.
 percentage
U.K.11.59.1
Australia13.622.1
U.S.A.14.317.1
Canada2.22.3
Japan14.116.1
Other E.E.C.9.28.8
Other O.E.C.D.0.92.0
Asia - Oceania19.116.9
Latin America - Caribbean2.70.8
Other12.54.7
         Total100.0100.0

Survey of direct investment by companies

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 motivation, 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 within this category. The question of control is decided 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). The same criteria apply for direct investment overseas by New Zealand companies and residents.

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 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 4 tables are in terms of inflows and outflows 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; a year's inflows and outflows of investment capital on the other hand are capable of precise expression, and the relationship to other capital movements can be defined precisely.

Overseas private direct investment.Table 29.22 shows all capital transactions between the foreign direct investor (including direct investment enterprises of the investor in other countries) and the New Zealand direct investment enterprise.

Table 29.22. OVERSEAS PRIVATE DIRECT INVESTMENT

March YearUnited KingdomOther EEC CountriesAustraliaU.S.A. and CanadaOther CountriesTotal. All Countries
 NZ$(million)
1978-79203.42.027.137.5-6.1263.9
1979-80136.110.799.5101.5-5.1342.7
1980-8184.0-9.234.473.322.0204.5
1981-8269.010.6143.643.099.6365.8
1982-83143.415.3188.6-27.744.5364.0

Income from private overseas direct investment.Table 29.23 covers income payable to other countries from investment in companies where the foreign investor holds 25 percent or more of the shares in the New Zealand company. It also includes the income from New Zealand branches of foreign firms. That portion of the undistributed profit of resident enterprises which accrues to foreign investors (who met the 25 percent condition) is also included.

Table 29.23. INCOME FROM PRIVATE OVERSEAS DIRECT INVESTMENT

March YearUnited KingdomOther EEC CountriesAustraliaU.S.A. and CanadaOther CountriesTotal. All Countries
 NZ$(million)
1978-79116.377.454.52.710.4261.4
1979-8049.064.646.71.29.0170.4
1980-8192.071.444.11.016.7225.3
1981-82131.7126.974.82.121.2356.7
1982-83170.2158.750.53.717.3400.5

Table 29.24. INDUSTRIAL CLASSIFICATION OF OVERSEAS INVESTMENT CAPITAL AND INCOME

industry1979-801980-811981-821982-83
 NZ$(million)
Private Direct Investment Flows into New Zealand from Overseas
Farming, hunting, and fishing1.45.1-0.6-6.2
Forestry and logging
Mining and quarrying0.92.44.2-1.3
Manufacturing—
    Food, drink, and tobacco14.615.520.314.2
    Meat and dairy products-5.723.4-5.8-13.3
    Textiles, clothing, and footwear1.81.3-0.13.8
    Wood, cork, and furniture production0.9..17.41.4
    Pulp, paper, and printing2.35.63.57.8
    Leather and rubber products0.51.82.21.9
    Chemical and mineral products76.118.926.427.3
    Metal working10.9-7.058.05.2
    Engineering and transport equipment33.316.244.7-17.2
    Miscellaneous manufacturing15.48.152.134.9
Building and construction-2.3-5.43.6
Wholesale and retail trade113.1126132.774.7
Banking, insurance, and ownership of property94.570.262.5221.0
Transport and communications-23.60.8-23.80.3
Services6.327.3-22.66.0
               Total342.7204.5365.8364.0
Income from Private Overseas Direct Investment in New Zealand
Farming, hunting, and fishing0.32.03.01.4
Forestry and logging
Mining and quarrying1.01.8-2.6-0.8
Manufacturing—
    Food, drink, and tobacco20.117.223.323.9
    Meat and dairy products-9.4-5.8-4.11.6
    Textiles, clothing, and footwear2.41.03.52.2
    Wood, cork, and furniture production0.7..2.31.3
    Pulp, paper, and printing7.34.15.19.9
    Leather and rubber products1.75.13.73.4
    Chemical and mineral products19.316.129.027.5
    Metalworking5.55.911.86.9
    Engineering and transport equipment22.922.334.210.0
    Miscellaneous manufacturing22.420.850.235.1
Building and construction2.01.71.81.5
Wholesale and retail trade20.769.471.4102.9
Banking, insurance, and ownership of property45.056.8114.2159.9
Transport and communications5.06.05.44.0
Services3.50.94.49.7
               Total170.4225.3356.740G.5

Table 29.25. INVESTMENT BY NEW ZEALAND COMPANIES OVERSEAS

March YearUnited KingdomAustraliaUnited States and CanadaOther CountriesTotal, All Countries
 NZ$(million)
Private Direct Investment Flows Out From New Zealand
1978-791.436.09.26.953.5
1979-808.936 22.226.073.3
1980-81-3.041.429.250.9118.4
1981-8216.723.025.349.6114.7
1982-831.871.7453.677.4604.5
Income from Private Direct Investment Overseas
1978-793.119.22.811.436.5
1979-8010.925.13.512.752.1
1980-819.741.28.722.882.4
1981-8211.755.415.043.7125.8
1982-834.193.35.135.1137.7

29.3 Inter-industry studies

Input-output analysis, an important economic tool, was devised by Professor Leontief, a Nobel prizewinning American economist, in the 1930s to define and measure the interdependence of the different industries within the economy. For example, it provides a means by which it is possible to measure the effects of a stated increase or decrease in the demand for houses on the timber industry, the cement industry, and the industries producing glass, steel, paint, bricks, tiles, concrete blocks, nails, plumbing requisites, and all the other items that go into houses, as well as on the demand for primary inputs such as labour and imports. In the New Zealand context for example, the input-output tables can be used to analyse the effect of an increase in production for export of the meat freezing and preserving industry in terms of the increased supporting production required of all the other industries in the economy, whether that production goes directly to the meat export works or indirectly to them through other industries. In commodity terms, the effect of an increase in production of meat carcasses and cuts can be analysed in terms of the direct and indirect supporting production required of all other commodities in the economy.

The main objective of an inter-industry study is to provide an economic statement of the industrial structure of the economy for a given year, measuring the direct and indirect inter-relationships between industries and commodities. Aims are:

  1. To provide an overall view of the economy, enabling planners to take a broad view, lessening the risk of important aspects being overlooked, or of sectional interests receiving undue attention.

  2. To trace the probable effects of major rises or falls in one industry's demand throughout the economy. Input-output tables help planners foresee bottlenecks in supplies or unexpected side-effects.

  3. To enable the effect of actual or hypothesized changes in the economy to be estimated more accurately than is otherwise possible. Examples of such changes are government policies affecting consumer prices, wages, exchange rates, etc.

  4. To provide a measure of the relative demands of industries for imports and the contribution to exports. This demonstrates which industries are the best net earners of overseas exchange.

An inter-industry study involves 3 distinct tasks. They are:

  1. The systematic collection, evaluation and arrangement of a vast body of statistical information on production and consumption covering, as far as possible, every area of the economy. This is the basic data on which the worth of the whole study depends.

  2. The formulation of an appropriate theoretical scheme.

  3. The application of theoretical methods and devices to the analysis of empirical data.

In a sense input-output analysis brings together those who, in economic research, have always tended to drift apart—the producers of elegant theories, and those engaged in empirical research and the accumulation of data. Input-output analysis gives scope to theorists but at the same time keeps them anchored firmly to the basic data, to the figures of goods produced by factories and farms, transported by ships, trucks and trains, and sold over shop counters.

Most developed countries regularly prepare input-output tables. The 1976-77 Inter-Industry Study of the New Zealand economy was the sixth undertaken by the Department of Statistics. The tables prepared for 1952-53 and 1954-55 were comparatively simple. The tables for 1959-60 and 1965-66, building on the pioneer work of the earlier studies, used similar methodology but were considerably more complex, involving measurement of commodity flows.

The 1971-72 and 1976-77 Inter-Industry Studies have adopted the concepts used in the United Nations System of National Accounts (1968) and these studies are conceptually reconcilable with the national accounts. Numerical differences remain because fresh data becomes available to the national accounts after the industry accounts in the Inter-Industry Study have been compiled. The 1976-77 study included, for the first time, commodity into commodity input-output tables.

The 1959-60 and 1965-66 studies, and the 1971-72 and 1976-77 studies are conceptually comparable, but comparisions between the 1965-66 and 1971-72 studies should be made with considerable caution.

Work on the 1981-82 Inter-Industry Study is well advanced. It is hoped that increased computerisation of data input to this study will result in the first tables becoming available in 1987.

It is a common criticism of inter-industry studies (and not only in New Zealand) that they are invariably years out of date and therefore stale and of historical interest only. A considerable delay is inevitable with a full-scale study because of the enormous amount of preparatory investigation necessary, and the fact that sometimes the detailed information required for input-output purposes is not available until a considerable time after the close of the year, or other period that is the subject of the study. Consequently, the Department of Statistics updated its 25-industry 1971-72 transactions table to 1976-77 using information from the provisional national accounts for 1976-77. Derived tables were also recalculated for 1976-77 and published together with a description of the updating methodology. Updating the 1976-77 study to 1981-82 (by an improved methodology which provides 25-category commodity into commodity and inter-industry transactions tables) was completed in 1984. Similar tables for 1983-84 are expected to be available by the end of 1986.

Structure of the transactions table. The input-output transactions (or flow) tables are a means of describing, for a particular period, the supply and disposition of the goods and services of an entire economic system. There are 2 basic transactions tables: the inter-industry (industry by industry) table and the commodity into commodity (commodity by commodity) table. They are both of the same size since the number of industries equals the number of commodities. A row in the inter-industry transactions table shows the disposition of output of an industry while a column shows the origin of inputs into an industry. A row in the commodity into commodity transactions table shows the disposition of output of a commodity, whereas a column shows the commodities which are input into a particular commodity. Since the output of an industry must be equal to the sum of its inputs (including operating surplus) the row total for an industry must be equal to the corresponding column total. Likewise, in the commodity into commodity table, the total supply of a commodity (row total) will equal the total usage of a commodity (column total). The layout of the basic transactions table is shown in Table 29.26.

It is generally recognised that commodity into commodity tables, because of their greater homogeneity, are superior to and more useful than inter-industry tables.

Inter-industry transactions table. Quadrant 1 of the inter-industry transactions table is usually referred to as the inter-industry quadrant. Each column in this quadrant shows the intermediate inputs into an industry in the form of goods and services produced by other industries. Each row shows those parts of an industry's output which have been used by other industries. Thus the cell at the intersection of row (i) and column (j) shows how much output of industry (i) has been absorbed by industry (j) for current production purposes. Disposition of industries' output to categories of final demand (i.e., where commodities are not used in the economy to produce other commodites) is shown in quadrant 2. Quadrant 3 shows transactions usually referred to as primary inputs. These inputs differ from intermediate inputs in that they are regarded as coming from outside the productive system represented by the industries. They are sometimes referred to as the factors of production (labour, return to entrepreneurship, usage of capital) although not in the classic economic sense. Quadrant 4 shows the direct usage of primary inputs by final demands.

Quadrants 1 and 2 together show the total usage of the goods and services supplied by each industry. Total usage equals total supply because quadrant 2 includes stock change, which may be positive or negative. Quadrants 1 and 3 together show the inputs used to produce the total output of each industry.

The inter-industry transaction table is in essence a detailed dissection by industry of gross output and intermediate consumption.

Table 29.26. FRAMEWORK OF THE INPUT-OUTPUT TRANSACTIONS TABLES

For the disposition of output of an industry/ commodity, read the row for that industry/ commodity. For the origin of input into an industry, read the column for that industry. For the commodities input into a commodity, read the column for that commodity.Intermediate DemandFinal DemandTotal Demand= Total Output
1 Agriculture
2 Agriculture Hunting and Fishing Forestry
3 Forestry
.
.
.
.
.
.
.
Intermediate Demand (Sub-total)Household Consumption
Government and Private non profit organisations' services produced for own use
Exports
Stock Exchange
Gross fixed capital formation
Final Demand (Sub-total)
Intermediate InputsAgriculture 1
Hunting and Fishing 2
Quadrant No. 1
Quadrant No. 2
Forestry 3
         .
         .
         .
.
Quadrant No. 1
Intermediate Production and Demand
 Quadrant No. 1
Final Output of Production
  
Intermediate Inputs (Sub-total)     
Primary InputsCompensation of employees
Operating surplus
Indirect Taxes
Subsidies
Consumption of Fixed Capital
Secondhand Assets
Imports
Quadrant No. 3
Primary Inputs to Production
 Quadrant No. 4
Primary Inputs to Final Demand
  
Primary Inputs (Sub-total)     
Total Input     

Commodity into commodity transactions table. The quadrants of this table are analogous to the corresponding quadrants of the inter-industry transactions table. The total value of transactions in corresponding quadrants is the same (and quadrant 4 is identical); but values are transferred between columns in respect of quadrants 1 and 3 to reflect inputs into commodities rather than industries, and transferred between rows in respect of quadrants 1 and 2 to reflect outputs of commodities rather than industries.

Each column of quadrant 1 shows the inputs into a commodity in the form of other commodities and each row shows that part of the supply of a commodity which is used in the production of other commodities. Thus the cell at the intersection of row (i) and column (j) shows how much of the total output of commodity (i) is used to produce (in whatever industry or industries) commodity (j). Usage of commodities by final demand categories is shown in quadrant 2. Quadrant 3 shows the value of primary inputs needed to produce the commodity represented by the column concerned.

Derived tables. If a transactions table is subjected to a mathematical process, known as inversion of the matrix, a derived table is produced. This will show on a unit basis (i.e. per $ of per $million, etc.) what will be required in additional output from every industry/commodity in the economy to support an increase of 1 unit in the final output of a selected industry/commodity. Such an account is often known as a table of total requirements (direct and indirect) per unit of final demand. The words ”direct and indirect” are used to indicate that the table includes not only the direct requirements of the selected industry/commodity, but also the additional requirements of industries/commodities supplying those industries/commodities, and so on through the ever-widening circle of the economy until the economic reverberations die away.

Further information

National accounts

Consolidated National Accounts for New Zealand on an SNA Basis, D. Grindell (ed), Reserve Bank of New Zealand, Research Paper No. 32, 1981.

Monthly Abstract of Statistics, August 1985, Appendix V, 'New Zealand System of National Accounts 1975-76. 1983-84'—Department of Statistics.

Monthly Abstract of Statistics, September 1984, Appendix I, 'National Accounts in Constant Prices'—Department of Statistics.

Monthly Abstract of Statistics, August 1985, Appendix VI, 'Quarterly National Accounts at Constant Prices'—Department of Statistics.

Monthly Abstract of Statistics, June 1985, Appendix I, 'New Zealand's Real National Disposable Income'—Department of Statistics.

Monthly Abstract of Statistics, November/December 1985, Appendix I, 'National Accounting Analysis of the Public Accounts, 1974-75. 1983-84'—Department of Statistics.

New Zealand System of National Accounts, Concepts and Design, 1971-72. 1980-81—Department of Statistics.

Quarterly Predictions, New Zealand Institute of Economic Research.

A System of National Accounts, Studies in Methods, Series F, No. 2, Rev. 3 United Nations 1968.

Balance of payments

Overseas Balance of Payments—Department of Statistics (annual).

Inter-industry studies

Inter industry Study of the New Zealand Economy, (1959-60, 2 parts), (1971-72, 1 part). (1976-77, provisional Bulletin), (1976-77. 1 part)—Department of Statistics.

Provisional New Zealand InputOutput Tables 1981-82—Department of Statistics.

Chapter 30. Weights and measures

New Zealand had converted from the Imperial to the International System of units for measurement by 1976. Almost all the statistics in this volume are in metric (SI) units except for shipping.

Metric to imperial  Metric multiples
Length
  1 millimetre (mm)= 0.04 inches (in.)1 centimetre (cm)= 10 millimetres (mm)
  1 centimetre (cm)= 0.39 inches (in.)1 metre (m)= 100 centimetres (cm)
  1 metre (m)= 39.37 inches (in.)1 kilometre (km)= 1 000 metres (m)
 = 1.09 yards (yds)  
  1 kilometre (km)= 0.62 miles  
Area
  1 square metre (m2)= 10.76 square feet (sq. ft)1 hectare (ha)= 10 000 square metres (m2)
 = 1.20 square yards (sq. yd)1 square kilometre (km2)= 100 hectares (ha)
  1 hectare (ha)= 2.47 acres.  
  1 square kilometre (km2)= 247 acres  
 = 0.39 square miles  
Volume and Capacity
  1 cubic centimetre (cm3)= 0.06 cubic inches (cu. in.)1 cubic metre (m3)= 10 000 000 cubic centimetres (cc)
  1 cubic metre (m3)= 35.31 cubic feet (cu. ft)1 litre (1)= 1 000 millilitres (ml)
 = 1.31 cubic yards (cu. yd)1 millilitre (ml)= 1 cubic centimetre (cc)
  1 litre (1)= 1.76 pints1 cubic metre (cm3)= 1 000 litres (1)
 = 0.22 gallons  
Mass (Weight)
  1 gram (g)= 0.04 ounces (oz)  
  1 kilogram (kg)= 2.20 pounds (lb)1 kilogram (kg)= 1 000 grams (g)
  1 tonne (t)= 2 204.62 pounds (lb)1 tonne (t)= 1 000 kilograms (kg)
 = 0.98 tons  
Velocity
  1 kilometre per hour (km/h)= 0.62 miles per hour (mph)  
Pressure
  1 kilopascal (kPa)= 0.15 pounds per square inch (psi)1 megapascal (MPa)= 1 000 kilopascal (kPa)
  1 megapascal (MPa)= 0.06 tons per square inch (tons psi)  
Temperature
    Degree fahrenheit (°F)=  
Degree celsius (°C)=  
Energy
  1 kilojoule (kJ)= 0.95 British thermal units (Btu)1 megajcule (MJ)= 1 000 kilojoules (kJ)
 = 0.24 calories (cal)1 kilowatt hour (kWh)= 3.6 megajoules (MJ)
  1 gigajoule (GJ)= 1 000 megajoules (MJ)
Power
  1 kilowatt (kW)= 1.34 UK horsepower1 kilowatt (kW)= 1 000 watts
  1 megawatt (MW)= 1 000 kilowatts (kW)
  1 gigawatt (GW)= 1 000 megawatts (MW)

Chapter 31. Glossary of statistical terms

Terms used in Business Census results before 1982-83 are included at the end of this Glossary.

Activity unit—A separate operating unit engaged in New Zealand in one or predominantly one kind of economic activity from a single location—includes an ancillary activity unit.

Ancillary activity unit—An administrative or general servicing unit such as a Head Office, storage unit, laboratory, etc., the prime function of which is to provide services for other locations of the enterprise.

Bone-in weight—Dressed carcass weight, including bone.

C.i.f (cost including insurance and freight)—A basis for valuation of merchandise imports, representing the cost to the importer of buying the goods and bringing them to the wharfside in New Zealand.

Census—A type of survey in which all members of a given population provide information. These units may be people, companies, buildings, local authorities, etc. The Department of Statistics carries out a range of national censuses at regular intervals, such as the Census of Population and Dwellings, the Census of Fishing, and the Census of Manufacturing. (See also sample survey.)

De facto relationship—A stable relationship between persons living together but not legally married. A question using this term was first introduced at the 1981 Census of Population and Dwellings. At previous censuses, persons in such relationships were coded as married, depending on answers to other census questions.

Density (of population)—Usually expressed as the average number of persons per square kilometre (or hectare) in a particular locality.

Depreciation—As charged in the books of account on fixed tangible assets owned by the establishments and ancillary units.

Employer Contributions—Payments to superannuation, pension and welfare schemes, and accident compensation levies.

Enterprise—A single business entity operating in New Zealand either as a legally constituted body such as a company, partnership, trust, local or central government trading organisation, incorporated society, or self-employed individual.

Enterprise group—An independent business unit operating in New Zealand either as a single business entity, or a group of business entities under common ownership or control.

Establishment—A separate operating unit engaged in New Zealand in 1 or predominantly 1 kind of economic activity from a single location.

Ex-nuptial birth—Birth of a child out of wedlock, including those born from a de facto relationship.

Exports (as applied to Balance of Payments data)—Goods and services sold by New Zealand resident producers to non-residents. (See also merchandise exports, invisibles, and re-exports.)

F.o.b. (free on board)—A basis for valuation of merchandise exports. It is the current market value of goods in the country of origin, including all costs necessary to get them on board the ship or aircraft, but excluding freight, insurance, and other costs involved in transporting goods between countries.

Fertility—The actual level of reproductive performance of a population, based on the number of live births that occur. Fertility is normally measured in terms of women of child-bearing age, defined as 15-44 years, although births to women outside this age range can occur.

Gross tonne—The unit of actual weight of cargo, including packaging but not including the weight of a reusable container.

Imports (as applied to Balance of Payments data)—All goods and services purchased by New Zealand residents from non-residents. (See also merchandise trade and invisible trade.)

Indexes—Indexes are used to measure the total impact of changes in the attributes of commodities which cannot be compared directly. In New Zealand the most common use of index numbers is to measure changes in prices or money values over time. When calculating a price index the type, quantity and quality of each commodity are held constant so that the price movement can be measured. There are a number of methods for calculating index numbers and a type called the Laspeyres index is the method most often encountered. The most frequently quoted index number is the Consumers Price index which reports quarterly the change in price level of those goods and services purchased by private New Zealand households during the index base period. By expressing the changes as an index, price changes in commodities as diverse as beef, hairdressing and club subscriptions can all be aggregated to produce a measure of overall price change.

Using the Consumers Price Index as an example, a fixed base Laspeyres index is compiled as follows:

  1. The base for measurement is established by choosing a representative selection of goods and services from commodities purchased by New Zealand households in the previous year. The commodities in the base are often referred to as a basket of goods or an index regimen and the time period as a base year. By convention the index number of 1000 is used to express the value of the basket of goods in the base year.

  2. As part of the process of establishing the base, a weight is assigned to each commodity. This weight shows the relative importance of the commodity in household expenditure. The weighting procedure ensures that major expenditure items are given their due importance. For example, a small increase in the price of commodities like bread or petrol will be more significant than a large increase in the price of pianos.

  3. Once the base for measurement is established, the quantity, type and quality of the commodities chosen are kept constant so that the price movement alone is measured. This continues to be the case until the index base is revised. Such revisions are needed because new products come onto the market, old products disappear and the pattern of household expenditure changes.

  4. Data on the current prices of the commodities in the base are then obtained at three-monthly intervals.

  5. Once collected, the current prices are compared with the prices in the base year and the percentage increase or decrease for each commodity is computed.

  6. Finally the index is obtained by multiplying the percentage changes for each commodity by their assigned weights and aggregating these changes for all commodities.

Indirect Taxes—Covers land tax, road user charges, licence fees and rates.

Insurances—Business insurance premiums paid.

Interest etc.—Interest, bad debts, donations, royalties, insurance claims paid or received and patent fees.

Invisible (trade)—Export and import of services such as transport, travel, and insurance.

Labour force (full time)—The section of the population aged 15 years and over who are employed for 20 hours a week or more for financial gain or as an unpaid relative assisting. The labour force includes those in the armed forces and those unemployed seeking work.

Main Urban Areas—Non-administrative areas with a population of 30 000 or more containing a central city or borough, and neighbouring areas regarded as suburbs of the main centre. Twenty-three areas of New Zealand have been defined as Main Urban Areas for the purposes of presenting primarily demographic data.

Manifest tonne—Equals 1 cubic metre. This unit is used in shipping circles to measure cargo, but is now being replaced with gross tonne.

Mean population—The average number of people in an area during a given period, usually a year. This measure may be estimated in terms of simple or weighted averages of population, monthly or quarterly during the reference period.

Merchandise exports—Goods of domestic origin, and re-exports, sent from New Zealand to other countries.

Merchandise imports—Goods landed in New Zealand, having been consigned from other countries, for immediate consumption or for storage in bonded warehouses.

Merchandise trade—All goods which add to or subtract from the stock of material resources in a country, as a result of their movement in or out of it.

Migrant or Mover—A person whose usual address at 1981 Census of Population and Dwellings was different from that of five years earlier.

Minor Urban Areas—Towns of 1000 or more population, not already included in Main or Secondary Urban Areas.

Mortality—The actual level of mortality of a population based on the actual number of deaths that occur within it.

Mover—see Migrant.

National Parks—Areas which may contain considerable forest land, set aside in their natural state for public enjoyment. They are administered by the Department of Lands and Survey.

Net profit—The difference between total income and total expenditure, less working proprietors/ partners salaries and wages.

Operating Surplus—Interest, etc. paid/received are deducted from the respective accounting value totals to arrive at the “operating surplus” measurement used in the value added calculation.

Other Expenditure—All other operating expenses excluding salaries and drawings by working proprietors/partners and expenses of a capital nature.

Other Income—Income from rental of plant and equipment, service connection charges, etc.

Paid Employees—The total number of people engaged, full time and part time, in the activity and ancillary units at or on the nearest payday to 28 February.

Persons engaged—The total number of persons engaged, full-time and part time in activity and ancillary activity units at or on the nearest payday to 28 February during the census year.

Population projection—A conditional forecast of the future size and/or composition of a specified population. It calculates the effect on the current (base) population during successive time periods if certain stated assumptions apply.

Provisional (statistics)—Statistics which are derived using preliminary or incomplete data and released before final data become available.

Purchases—Purchases of materials, supplies, goods for resale, fuels, and electricity.

Re-exports—Goods, materials or articles exported in the same condition as they were imported, and imported goods which have undergone operations such as repair, repacking, or bottling which leave them essentially unchanged before exporting.

Rent and Leasing—Total expenditure on or income from the rent and leasing of land and buildings and of plant, equipment and vehicles.

Reserves—Any land set apart for any public purpose (with some exceptions as set out in the Reserves Act 1977). There are legal impediments to any exploitation of timber on reserve land.

Rural Areas or Rural Localities—Counties and boroughs, (or parts of), located outside any Urban Area. Large rural counties have been subdividied into smaller areas for statistical purposes.

S.I.T.C. (Standard International Trade Classification)—A classification published by United Nations defining export and import commodities.

Salaries and Wages—Gross earnings during the accounting year of all paid employees in the establishments or ancillary units included in the census. Included are such items as overtime, sick and holiday pay, bonuses, payments under piece rate schemes, all benefit allowances, severance pay, value of free supplies and sales commission paid to own employees.

Sales—Sales of manufactured goods and services provided, including sales of goods purchased for resale without any further processing.

Sample survey—A type of survey in which only a representative proportion of the given population provides detailed information. The sample statistics are summarised and are used to estimate statistics for the full population.

Seasonal adjustments—Adjustments made to statistical time series (usually monthly or quarterly) to provide a refined series for trend analysis in which the fluctuations due to seasonal variations have been removed.

Secondary Urban Areas—These centre on a major borough, and include adjacent parts of counties suburban to that borough.

Smaller Urban Centres (or 'Small Centres')—The Secondary and Minor Urban Areas referred to above.

State forest—Areas administered by the New Zealand Forest Service.

State Forest Parks—State forests which are sufficiently distinctive to be designated State forest parks. They are open for public recreation and there is public participation in their management through an advisory committee for each park appointed by the Minster of Forests from nominations by interested organisations and individuals.

Statistical areas—Non-administrative areas corresponding roughly to the boundaries of the former provincial districts. Currently thirteen areas are defined as statistical areas for the purposes of presenting regional statistical data.

Statistical divisions—The main non-administrative centres of the country containing a population of 75 000 or more, within a reasonably compact area with common economic and cultural interests. There are seven areas defined as statistical divisions for the purposes of presenting statistical data.

Subsidies—Direct Government cash grants and subsidies, other than for capital purposes.

Tonne-kilometre—A measure of the total weight of freight carried (in tonnes) multiplied by the distance carried (in kilometres).

Total expenditure—Purchases and Operating Expenses, excluding losses in extraordinary items, less working proprietors/partners salaries and wages.

Total income—Sales and Other Income, excluding gains in extra ordinary items, adjusted for difference between opening and closing stocks.

Unoccupied Crown land—Land owned by the Crown, and not subject to any occupation, licence, lease, or tenancy, or set aside for any public purpose.

Urban areas—see Main Urban Areas; Minor Urban Areas; Secondary Urban Areas.

V.f.d. (value for duty)—This is the assessed value of merchandise imports on which duty is based. It is roughly equivalent to the current domestic value of goods in the exporting country.

Value added—The amount added to goods and services by the contributions of capital and labour (i.e., the costs of bought-in materials and services has been deducted from the total value of output).

Vital statistics—Statistics of events such as births, deaths, and marriages which influence the numbers of a population.

Vitals—see Vital statistics.

Terms used for business censuses up to 1981-82

For further information on Business Censuses see Chapter 19

Ancillary unit—Any unit such as head office, laboratory, workshop etc., of which the prime function is to provide services for an establishment, or establishments, under the same ownership.

Capital expenditure less disposals—The amount spent on the purchase of new and second-hand fixed assets, less the proceeds received from the sale of any such assets.

Depreciation—Depreciation, as charged in the books of account, on fixed tangible assets owned by establishments.

Establishment—A separate operating unit engaged in one, or predominantly one, kind of economic activity. Whilst normally at a single physical location, in the transport or building industries an establishment may include activities at several locations which are accounted for as one activity.

Paid employees see Persons engaged.

Persons engaged—The total number of persons engaged (paid employees and working proprieters/ partners) full-time and part-time. This number is taken at or on the nearest payday to 28 February in the year of each census. (Before 1979-80 the date was 15 April after the close of the census.) Unpaid relatives assisting are included in the Censuses of Distribution, and Agriculture, but not in other censuses.

Purchases and other operating expenses—Total purchases and operating expenses, less interest, bad debts, donations, royalties and patent fees. Also excludes salaries and wages paid, and depreciation.

Total salaries and wages paid—Gross earnings, during the accounting year, of all paid employees included in the census. Included are such items as: overtime; sick and holiday pay; bonuses; payments under piece-rate schemes; all benefit allowances; severance pay, value of free supplies; sales commission paid to employees. Also included are any capitalised salaries and wages.

Turnover—Total sales and other income, less: interest; dividends; donations; grants; royalties; insurance claims received. Capital work done by employees is included.

Value added—This is equal to the sum of salaries and wages, depreciation and profit, before interest is brought to account. It can also be calculated by deducting from the value of output, the cost of bought-in material and bought-in non-labour services.

Chapter 32. Books about New Zealand

The following list of books has been compiled to give New Zealand and overseas readers a selective approach to the country's literature and sources of information. Entries are arranged alphabetically under appropriate subject headings, which are in approximate order of the Dewey Classification. The following abbreviations for places of publication have been used: Ak (Auckland), Wn (Wellington), Ch (Christchurch), and Dn (Dunedin). The selection covers books published in New Zealand as well as books published overseas about New Zealand. Works of less than 75 pages are indicated by an asterisk.

The New Zealand National Bibliography is published monthly and cumulated annually in microfiche. It lists books, pamphlets, music, maps, periodicals, and selected non-book materials. It is prepared in the New Zealand Bibliographic Unit, and available from the National Library of New Zealand, Private Bag, Wellington.

General reference, bibliography, and encyclopaedias

BAGNALL. A. G. New Zealand national bibliography to the year 1960. Wn, Govt Print., 1970-80. Vol. 1, to 1889. Vol. 2-4, 1890-1960.

BATEMAN NEW ZEALAND ENCYCLOPAEDIA, editor-in-chief, G. McLauchlan. Ak, David Bateman, 1984.

DIRECTORYOF OFFICIAL INFORMATION. Wn, State Services Commission, 1985.

DUNMORE BOOKOF NEW ZEALAND RECORDS, edited by P. Dunmore, Palmerston North, Dunmore Press, 1977.

ELLIS, N. comp. New Zealand associations, societies and clubs; a national directory. 2nd ed. Wn, Victoria University Press with Price Milburn, 1979.

ENCYCLOPAEDIAOF NEW ZEALAND, edited by A. H. McLintock, Wn, Govt Print., 3 v, (Out of print.) 1966.

GILDERDALE, B. A sea change: 145 years of New Zealand junior fiction. Ak, Longman Paul, 1982.

GUIDETO NEW ZEALAND INFORMATION SOURCES. Palmerston North, Massey University, 1975. Bibliographies have been published on plants and animals, farming, field and horticultural crops, education, livestock farming, fisheries, forestry, religion, and official publications.

HEINEMANN NEW ZEALAND DICTIONARY, edited by H. W. Orsman. Ak, Heinemann Educational, 1979.

*MILLETT, A. P. U. and F. T. H. COLE. Bibliographical work in New Zealand 1985; work in progress and work published. Hamilton, University of Waikato Library, 1985.

NATIONAL REGISTEROF ARCHIVESAND MANUSCRIPTSIN NEW ZEALAND, Wn, National Library of New Zealand, 1979.

NEW ZEALAND BOOKSIN PRINT 1984-85. Melbourne, Thorpe, 1985.

NEW ZEALAND LIBRARY ASSOCIATION, Bibliography of New Zealand bibliographies. Wn, 1967.

OXFORD NEW ZEALAND ENCYCLOPAEDIA, London. O.U.P., 1965. (Out of print.)

ROBERTSON, E and P. H. HUGHES, New Zealand Royal Commissions, Commissions and Committees of Inquiry, 1864-1981: a checklist. Wn, New Zealand Library Association, 1982.

TAYLOR. C. R. H. A bibliography of publications on the New Zealand Maori. Oxford, Clarendon Press, 1972.

TAYLOR. C. R. H. A Pacific bibliography. 2nd ed. Oxford, Clarendon Press, 1965. (Out of print.)

UNION LISTOF THESESOFTHE UNIVERSITYOF NEW ZEALAND. 1910-1954. Wn, New Zealand Library Association, 1956. (Out of print.) Supplement, 1955-1962. Supplement, 1963-1967. Supplement, 1968-1971. Supplement, 1971-1975. Supplement, 1976-1978.

WILSON, N. and A. BOLLARD. A bibliography of New Zealand industrial economics research. Wn, Department of Trade and Industry 1984.

*WOOD, G. A. A guide for students of New Zealand history. Dn, McIndoe, 1973.

Social sciences and public administration

AGEING NEW ZEALANDERS, edited by R. A. Barker, F. M. Caughey, M. W. Guthrie. Wn, Dept. of Health. 1982.

BEYOND NEW ZEALAND. The foreign policy of a small state, edited by John Henderson, Keith Jackson, and Richard Kennaway. Ak, Methuen, 1980.

BEDGGOOD, D. Rich and poor in New Zealand. Sydney, Allen and Unwin, 1980.

BLACKBURN, A. Race against time. Wn, Human Rights Commission, 1982.

BUSH, G. W. A. Local government and politics in New Zealand. Sydney, Allen and Unwin, 1980.

DAVIS, P. Health and health care in New Zealand. Ak, Longman Paul, 1981.

EASTON, B. Social policy and the welfare state in New Zealand. Ak, Allen and Unwin, 1980.

FAMILIESIN NEW ZEALAND SOCIETY, edited by P. G. Koopman-Boyden. Wn, Methuen New Zealand, 1978.

GEARE, A. J. The system of industrial relations in New Zealand. Wn, Butterworths, 1983.

GRAY, A. The Jones men; 100 New Zealand men talk about their lives. Wn. Reed, 1983.

CRIMSHAW, P. Women's suffrage in New Zealand. Ak, Auckland U.P.: Wn, O.U.P., 1972.

GUSTAFSON, B. S. Labour's path to political independence. Ak, Auckland University Press, 1980.

HANSON, E. A. The politics of social security. Ak, Auckland University Press, 1980.

HILL, M. et al. Shades of deviance: a New Zealand collection, Palmerston North, Dunmore Press.

ISSUESIN EQUITY by Judith Davey and Peggy Koopman-Boyden. Wn, New Zealand Planning Council, 1983.

LEVINE, S. Maori policitical perspectives. Ak, Hutchinson, New Zealand, 1985.

MCGEE, D. G. Parliamentary practice in New Zealand. Wn, Govt Print., 1985.

MCGIBBON, I. C. Blue-water rationale: the naval defence of New Zealand, 1914-1942. Wn, Govt Print., 1981.

MCGILL, D. The other New Zealanders. Wn, Mallinson Rendel, 1982.

MCGILL, J. F. Immigration and the New Zealand economy. Wn, New Zealand Institute of Economic Research, 1981.

MASCARENHAS, R. C. (ed.) Public and private enterprise in New Zealand. Wn, New Zealand Institute of Public Administration, 1983.

MASCARENHAS, R. C. Public enterprise in New Zealand. Wn, New Zealand Institute of Public Administration, 1982.

MOL, Hans. The fixed and the fickle: religion and identity in New Zealand. Dn, Pilgrims Southern Press, 1982.

MULGAN, R. G. Democracy and power in New Zealand: a study of New Zealand politics. Ak, O.U.P., 1984.

NEW ZEALAND PLANNING COUNCIL. Who makes social policy?, Wn. 1982.

NEW ZEALAND POPULATION: PATTERNSOF CHANGE. (Population Monitoring Group. Report No. 1). Wn, New Zealand Planning Council, 1984.

NEW ZEALAND. SOCIOLOGICAL PERSPECTIVES, edited by Paul Spoonley, David Pearson, Ian Shirley. Palmerston North, Dunmore Press, 1982.

PEARSON, D. G. Johnsonville: continuity and change in a New Zealand township. Sydney, Allen and Unwin, 1980.

PEARSON, D. G. and D. C. THORNS. Eclipse of equality. Sydney, Allen and Unwin, 1983.

THE PATHTO REFORM, edited by C. Burns. Wn, New Zealand Institute of Public Administration, 1982.

PEOPLE LIKEUS, CELEBRATING CULTURAL DIVERSITY, edited by Anthony Haas, Allison Webber, Pam Brown. Wn, Asia Pacific Books, 1982.

PALMER, G. Unbridled power: an interpretation of New Zealand's constitution and government. Wn, O.U.P., 1979.

PHILLIPS, R. Divorce in New Zealand; A social history. Ak, O.U.P., 1981.

THE POPULATIONOF NEW ZEALAND, edited by R. J. W. Neveille and C. J. O'Neill. Ak, Longman Paul, 1979.

RELIGIONIN NEW ZEALAND SOCIETY, edited by Brian Colless and Peter Donovan. Palmerston North, Dunmore Press. 1980.

ROTH, B. and T. HAMMOND. Toil and trouble; The struggle for a better life in New Zealand. Ak, Methuen, New Zealand, 1981.

ROTH, B. Trade unions in New Zealand. Wn, Reed, 1974.

SCOTT, C. D. Local and regional government in New Zealand: function and finance. Sydney, Allen and Unwin. 1979.

SOCIAL WELFAREAND NEW ZEALAND SOCIETY, edited by A. D. Trlin. Wn, Methuen, 1977.

STATE SERVANTSANDTHE PUBLICINTHE 1980s, edited by R. M. Alley, Wn, New Zealand Institute of Public Administration, 1980.

VOLUNTARY UNIONISM; PROCEEDINGSOFA SEMINAR, 5 OCTOBER 1983, edited by P. Brosnan. Wn, Industrial Relations Centre, Victoria University of Wellington, 1983.

WOMENIN NEW ZEALAND SOCIETY, edited by P. Bunkle and B. Hughes. Sydney, Allen and Unwin, 1980.

Economics

BOSTON, J. Incomes policy in New Zealand. Wn, Victoria University Press for the Institute of Policy Studies, 1984.

BURROWES, A. W. and R. D. MULHOLLAND. Investing on the New Zealand sharemarket. Rev. ed. Ak, Macmillan, 1983.

CAMPBELL, R. and A. KIRK. After the freeze: New Zealand unions in the economy. Eastbourne, Port Nicholson Press, 1983.

EASTON, B. H. Economics for New Zealand social democrats. Dn, John McIndoe Ltd, 1981.

EASTON, B. H. Income Distribution in New Zealand. Wn, NZIER, 1983.

EASTON, B. H. and N. J. THOMSON. An introduction to the New Zealand economy. Qld. St Lucia, University of Queensland Press, 1982.

ECONOMIC SUMMIT CONFERENCE. A briefing on the New Zealand economy. Wn, Govt Print., 1984.

EXTERNAL ECONOMIC STRUCTUREAND POLICY, AN ANALYSISOF NEW ZEALAND'S BALANCEOF PAYMENTS, edited by R. S. Deane, P. W. E. Nicholl, and M. J. Walsh. Wn, Reserve Bank of New Zealand, 1981.

GOULD, J. The rake's progress? The New Zealand economy since 1945. Ak, Hodder and Stoughton, 1983.

HAWKE, G. R. Between government and banks. Wn, Govt Print., 1973.

HAYWOOD, E., D. ROSE and A. STROOMBERGEN. Towards 1990: patterns of national and sectoral development. Wn, NZ Planning Council, 1983.

HORSFIELD, A. K. and D. J. O'DEA. Equity investment in New Zealand. Wn, Govt Print., 1983.

INFLATIONAND ECONOMIC ADJUSTMENT, edited by R. A. Buckle. Wn, Dept of Economics, Victoria University of Wellington, 1983.

LODGE J. The European Community and New Zealand. London, F. Pinter, 1982.

MONETARY POLICYANDTHE NEW ZEALAND FINANCIAL SYSTEM, edited by R. S. Deane, P. W. Nicholl and R. G. Smith. 2nd ed. Wn, Reserve Bank of New Zealand, 1983.

NATIONAL INCOMES POLICY. PROCEEDINGSOFA SEMINAR, edited by Pat Walsh. Wn, Industrial Relations Centre, Victoria University of Wellington, 1982.

NEW ZEALAND VALUATION DEPT. Handbook for local authorities. 4th ed. Wn, 1982.

PRESTON, D. A. Government accounting in New Zealand. Wn, Govt Print., 1980.

STONE, R. J. C. Makers of fortune. Ak, Auckland University Press/Oxford University Press, 1973.

STUDIESOFTHE NEW ZEALAND LABOUR MARKET, ed B. H. Easton. Wn, NZIER, 1983.

TISDALE. C. A. and J. T. WARD. Economics in our society. Milton, Qld, Jacaranda Press, 1981.

THE TREASURY. Economic management. Wn, Govt Print., 1984.

WARD, A. H. A Command of co-operatives. Wn, N.Z. Dairy Board, 1975.

Periodicals—

BULLETINOFTHE RESERVE BANKOF NEW ZEALAND. Wn, Reserve Bank (monthly)

THE FINANCIAL STATEMENT. Wn, Govt Print., (annual).

MEDIUM TERM REVIEW. Wn, NZ Institute of Economic Research (annual).

NEW ZEALAND: OECD ECONOMIC SURVEY. Paris, OECD (about eighteen monthly).

QUARTERLY PREDICTIONS. Wn, NZ Institute of Economic Research (quarterly).

QUARTERLY SURVEYOF BUSINESS OPINION. Wn, NZ Institute of Economic Research (quarterly).

REPORTOFTHE ECONOMIC MONITORING GROUP. Wn, New Zealand Planning Council (annual).

Law

AFFORD, J., S. Kos, and B. NAPIER. The law and you; a practical guide for New Zealanders. Wn, Reed, 1981.

BLAIR, A. P. Accident compensation in New Zealand: the law relating to compensation for personal injury by accident in New Zealand. 2nd ed. Wn, Butterworths, 1983.

BROOKS, B. T. The practice of industrial relations in New Zealand. Ak, Commerce Clearing House (New Zealand), 1978.

BUTTERWORTHS FAMILY LAW GUIDE. Wn, Butterworths, 1983.

CAMPBELL, L. G. The framework of industrial law in New Zealand. 2nd ed. Wn, Victoria University of Wellington, Industrial Relations Centre, 1982.

DOYLE, M. W. Criminal procedure in New Zealand. Wn, Sweet and Maxwell, 1978.

DUNCAN, P. C. The layman and the law in New Zealand. Ak, J. M. McGregor, 1981.

FAMILY GUIDETO NEW ZEALAND LAW. Surrey Hills, NSW, Readers Digest, 1980.

HINDE, G W. and M. S. HINDE. New Zealand law dictionary. 3rd ed. Wn, Butterworths, 1979.

MCBRIDE, T. J. New Zealand civil rights handbook. Wn, Price Milburn, Butterworths, 1980.

MULHOLLAND, R. D. Business law today. 2nd ed. Palmerston North, Dunmore Press, 1985.

MULHOLLAND, R. D. Consumer law in New Zealand. Palmerston North. Dunmore Press, 1982.

MULHOLLAND, R. D. Introduction to the New Zealand legal system, 6th ed. Wn, Butterworths, 1985.

NEW ZEALAND LAWS, STATUTES, ETC. Reprint of the Statutes of New Zealand, 1908-57. Wn, Govt Print., 1958-1961. 16 v.

NORTHEY, J. F. Index to New Zealand legal writing. Ak, Legal Research Foundation, 1982. Annual supplements also published.

O'KEEFE, J. A. B. The principles and practice of rating and rating valuations in New Zealand. Auckland University, 1982.

TAPP, P. and M. WILSON. Women and the law in New Zealand. Ak, Methuen, 1982.

WILLIAMS, D. A. R. Environmental law in New Zealand. Wn, Butterworths, 1980.

Education

BARRINGTON, J. M. and T. H. BEAGLEHOLE. Maori schools in a changing society: an historical review. Wn, New Zealand Council for Educational Research, 1974.

BOSHIER, R. Adult and continuing education in New Zealand, 1851-1978: a bibliography. Vancouver, Adult Education Research Centre, Faculty of Education, University of British Columbia; Toronto, International Council for Adult Education, 1979.

CAMPBELL, W. J. Realities of teacher development. Wn, Dept of Education, 1977.

CUMMING, I. and A. CUMMING. History of state education in New Zealand, 1840-1975. Wn, Pitman, 1978.

EDUCATIONANDTHE EQUALITYOFTHE SEXES: conference on women and education sponsored by the Committee on Women and the Department of Education, 23-27 November 1975, Victoria University of Wellington. Wn, Dept. of Education, 1976.

EDUCATIONAL SYSTEMOF NEW ZEALAND, Washington, D.C., Government Printing Office, 1981.

FITZGERALD, T. K. Education and identity; a study of the New Zealand Maori graduate. Wn, New Zealand Council for Educational Research, 1977.

FORWARDTO BASICS, edited by J. Shallcrass. Wn, New Zealand Education Institute, 1978.

GADD, D. B. H. Cultural difference in the classroom: the special needs of Maoris in Pakeha Schools. Ak, Heinemann Educational, 1976.

GUIDANCEIN NEW ZEALAND SECONDARY SCHOOLS, compiled and edited by G. Hermansson. Ak, New Zealand Counselling and Guidance Association, 1981.

MCDONALD, G. Maori mothers and pre-school education. Wn, New Zealand Council for Educational Research, 1973.

MEADE, A. comp. New Zealand early childhood care and education: bibliography, 1965-1978; with annotations. Wn, New Zealand Council for Educational Research, 1979.

NEW ZEALAND COMMITTEEON HEALTHAND SOCIAL EDUCATION. Growing, sharing, learning; the report of the committee on health and social education. 2nd ed. Wn, Dept of Education, 1978.

NEW ZEALAND EARLY CHILDHOOD CAREAND DEVELOPMENT CONVENTION: 2nd, University of Canterbury, 1979. Early childhood in New Zealand: their needs, our concern. Ch, Christchurch Teachers College, 1979.

*NEW ZEALAND EDUCATIONAL DEVELOPMENT COUNCIL. Review of educational developments, 1974-1978: progress on recommendations of the educational development conference. Wn, Educational Development Council, 1978.

NEW ZEALAND NATIONAL ADVISORY COMMITTEEON MAORI EDUCATION. He Huarahi. Wn, Dept of Education, 1980.

NEW ZEALAND RESEARCH COMMITTEEON OPEN PLAN SCHOOLS. Report on open plan education in New Zealand primary schools, Wn, Dept of Education, 1977.

PARTON. H. The University of New Zealand. Ak, Auckland University Press; Wn, O.U.P., 1979.

POLICIESOF EDUCATIONIN NEW ZEALAND, edited by M. Clark. Wn, New Zealand Council for Educational Research, 1981.

RAMSAY. P. D. K. and others. The family and the school in New Zealand society: an introduction to the. sociology of New Zealand education. Carlton, Vic, Pitman, 1975.

ROTH, H. O. A bibliography of New Zealand education, Wn, New Zealand Council for Educational Research, 1964.

SUTTON-SMITH, B. A history of children's play: New Zealand, 1840-1950. Wn, New Zealand Council for Educational Research, 1982.

WILLIAMS, B. M. Structures and attitudes in New Zealand adult education, 1945-75. Wn, New Zealand Council for Educational Research, 1978.

Women

ABIGAIL, Jill. Secondary school influences on the training and career aspirations of girls: a study in 17 Wellington schools. Wn: Vocational Training Council, 1983.

BARRINGTON, Rosemary and GRAY, Alison. The Smith Women: 100 New Zealand women talk about their lives. Wn: Reed, 1981.

CELEBRATING WOMEN: New Zealand women and their stories. Produced by Mediawomen of New Zealand. Whatamongo Bay: Cape Catley, 1984.

CONFERENCEON WOMENAND RECREATION (1981: Wellington, New Zealand). Papers and reports from the Conference on Women and Recreation, 31 August-3 September, 1981. Wn: New Zealand Council for Recreation and Sport, 1981.

DANN, Christine. Up From Under: Women and Liberation in New Zealand 1970-1985. Wn: Allen and Unwin, 1985.

HUGHES, Beryl and BUNKLE, Phillida (eds) Women in New Zealand Society. Ak: Allen and Unwin, 1980.

MURCHIE, Elizabeth. Rapuora: health and Maori women. Wn: Maori Women's Welfare League, 1984.

NATIONAL WOMEN'S HEALTH CONFERENCE, 1982: a report on the Women's Health Network National Conference held on the 17th, 18th, 19th September, 1982. Tauranga: NZ Women's Health Network, 1983.

PHILLIPS, Jenny. Mothers matter too: a book for New Zealand women at home. Wn: Reed, 1983.

PROFILEOF WOMEN. Department of Statistics, 1985.

RAPEIN NEW ZEALAND: papers presented at the Rape Symposium, Wellington 11-12 September 1983. Edited by Hilary Haines and Max Abbott. Ak: Mental Health Foundation of New Zealand, 1983.

SARGISON, Patricia. Victoria's furthest daughters: a bibliography of published sources for the study of women in New Zealand, 1830-1914. Wn: Alexander Turnbull Library, 1984.

THE ROLEOF WOMENIN NEW ZEALAND SOCIETY. NZ Parliament, House of Representatives. Select Committee on Women's Rights. Women's Rights Committee, June 1975 (report). Wn Govt Print.. 1975.

WOMEN'S STUDIES CONFERENCE PAPERS: papers of Women's Studies Association Conference 1978-1984. Various editors. Women's Studies Association (NZ).

WOMEN'S WORK: contemporary short stories by New Zealand women. Chosen by Marion McLeod and Lydia Wevers. Ak, New Zealand, Oxford University Press, 1985.

The Maori

TE AO HURIHURI; The world moves on: aspects of maoritanga, edited by M. King. Wn, Hicks Smith, 1975. Reprinted 1977.

BEST, E. Games and pastimes of the Maori. Wn, Board of Maori Ethnological Research for the Dominion Museum, 1924. Reprinted Wn, Govt Print., 1976.

BEST, E. The Maori as he was. Wn, Dominion Museum, 1924. Reprinted Wn, Govt Print., 1974.

BEST, E. Maori agriculture. Wn, Board of Maori Ethnological Research for the Dominion Museum, 1925. Reprinted Wn, Govt Print., 1976.

BIGGS, B. The complete English-Maori dictionary. Ak, Auckland University Press, Wn, O.U.P. 1981.

BIGGS, B. Let's learn Maori; a guide to the study of the Maori language. Wn, Reed, 1975.

BRAILSFORD, B. The tattooed land—the southern frontiers of the Pa Maori. Wn, Reed, 1981.

BUCK, Sir P. The coming of the Maori. 2nd ed. Wn, Whitcombe and Tombs, 1974.

DANSEY, H. Maori custom today. Auckland, Shortland Publications, reprinted 1978.

DUFF, R. S. The Moa-hunter period of Maori culture. 3rd ed. Wn, Govt Print., 1977.

FIRTH, R. W. Economics of the New Zealand Maori. 2nd ed. Wn, Govt Print., 1972.

HANSON, F. and L. Counterpoint in Maori. London, Routledge and Kegan Paul, 1983.

HART, R. and A. W. REED. Maori myth and legend. Wn, Reed, 1983.

HE MATAPUNA—SOME MAORI PERSPECTIVES, N.Z. Planning Council, Wn, 1979.

INTOTHE WORLDOF LIGHT: AN ANTHOLOGYOF MAORI WRITING, edited by Witi Ihimaera and D. S. Lang. Ak, Heinemann, 1982.

KING, M. Being Pakeha: an encounter with New Zealand and the Maori renaissance. Ak, Hodder and Stoughton. 1985.

KING, M. Maori: a photographic and social history. Ak, Heinemann, 1983.

LEWIS, D. The Maori: Heirs of Tane. London, Orbis, 1982.

MAORIIS MY NAME: Historical Maori writings in translation, edited by John Caselberg. Dn, McIndoe, 1975.

THE MAORI PEOPLEINTHE NINETEEN SIXTIES: A symposium edited by E. G. Schwimmer. Ak, Longman Paul, 1972.

METGE, J. The Maoris of New Zealand: Rautahi. London, Routledge, 1976.

POOL, D. I. The Maori population of New Zealand, 1769-1971. Ak, Auckland University Press, 1977.

REED, A. W. Treasury of Maori exploration: legends relating to the first Polynesian explorers of New Zealand. Wn, Reed, 1977.

RYAN, P. M. A dictionary of modern Maori. Ak, Heinemann Educational, 1974.

SALMOND, A. Hui: a study of Maori ceremonial gatherings. Wn, Reed, 1975.

SCHWIMMER, E. G. The world of the Maori. Wn, Reed, 1974.

SELECTED READINGSIN MAORI, edited by B. Biggs, P. Hohepa, and S. M. Mead. Wn, Reed, 1967.

SIMMONS, D. R. Whakairo: Maori tribai art. Ak, O.U.P., 1985.

SIMMONS, D. R. The great New Zealand myth: a study of the discovery and origin traditions of the Maori. Wn, Reed, 1976.

STIRLING, F. Eruera: the teachings of a Maori elder. Wn, O.U.P., 1980.

TAYLOR, C. R. H. A bibliography of publications on the New Zealand Maori and the Moriori of the Chatham Islands. London, Oxford, 1972.

TUHE MAURI ORA: ASPECTS OF MAORITANGA, edited by M. King. Wn, Methuen New Zealand, 1978.

WILLIAMS, H. W. A bibliography of printed Maori to 1900, and Supplement. Wn, Govt Print., 1975.

WILLIAMS, W. A dictionary of the Maori language. H. W. Williams, rev. and augmented by the Advisory

Committee on the Teaching of the Maori language, Department of Education. 7th ed. Wn, Govt Print., 1975.

Science, general

BIOGEOGRAPHY ECOLOGYIN NEW ZEALAND, edited by G. Kuschel. The Hague, Dr W. Juur, 1975.

DIRECTORYOF NEW ZEALAND SCIENCE. 5th ed. Wn, New Zealand Association of Scientists. 1975.

ELLIS, N. E. The New Zealand environment: a bibliography of material available through New Zealand public libraries, including a select list of overseas publications, 1968-1974. Wn, Nature Conservation Council, 1975. Supplements also published.

ENVIRONMENTAL POLICIESIN NEW ZEALAND. Paris, OECD, 1981.

LANDSAT II OVER NEW ZEALAND: monitoring our resources from space, edited by P. J. Ellis, I. L. Thomas and M. J. McDonnell. Wn, DSIR, 1978.

NEW ZEALAND'S NATURE HERITAGE. Ak, Hamlyn, 1976.

Geology

ADKIN, G. L. and B. W. COLLINS. A bibliography of New Zealand geology to 1950. Wn, DSIR, 1967. (Out of print.) Index, compiled by D. L. Jenkins. Wn, DSIR, 1976.

BIBLIOGRAPHYOF NEW ZEALAND GEOLOGY, 1951-1969, compiled by Guyon Warren and others. Wn, DSIR. 1977. Updates Adkin (above).

EIBY, G. A. Earthquakes. London, Heinemann, 1980.

FLEMING, Sir C A. The geological history of New Zealand and its life. Ak, Auckland University Press, 1979.

GAGE. M. Legends in the rocks: an outline of New Zealand geology. Ch, Whitcoulls, 1980.

GEOCHEMISTRY, 1977: a collection of papers by New Zealand geochemists in honour of S. H. Wilson, compiled by A. J. Ellis. Wn, DSIR, 1977.

GEOLOGYOF NEW ZEALAND, chief editor, R. P. Suggate, associate editors, G. R. Stevens. M. T. Te Punga. Wn, Govt Print., 1980. 2v.

HOUGHTON. B. F. Geyserland: a guide to the volcanoes and geothermal areas of Rotorua. Lower Hutt, Geological Society of New Zealand, 1982.

LANDFORMSOF NEW ZEALAND, edited by J. M. Soons and M. J. Selby. Ak. Longman Paul, 1982.

NEW ZEALAND CAVE ATLAS, compiled by P. C. Crossley, B. P. Hurst and R. G. West. Ak, University of Auckland, Dept. of Geography, 1981.

SALMON, J. H. M. A history of goldmining in New Zealand. Wn, Govt Print., 1963.

STEVENS, G. R. Rugged landscape: the geology of central New Zealand. Wn, Reed, 1974.

STEVENS, G. R. New Zealand adrift. Wn, Reed, 1980.

TAYLOR, E. and J. COLE. Volcanic New Zealand. Ak, O.U.P., 1983.

Zoology

AYLING, A. M. Collins guide to the sea fishes of New Zealand. Ak, Collins, 1982.

BULLER, Sir W. L. Birds of New Zealand. Facsimile Diamond Jubilee ed. Wn. Royal Forest and Bird Protection Society of New Zealand, 1983.

BULL, P. C., P. D. GAZE and C. J. R. ROBERTSON. Bird distribution in New Zealand: a provisional atlas, 1969-1976. Wn, Ornithological Society of New Zealand, 1978.

CHAPMAN, M. A. and M. H. LEWIS. An introduction to the freshwater crustacea of New Zealand. Ak, Collins, 1976.

CUSA, N. W. and R. M. LOCKLEY. New Zealand endangered species. Ak, Cassell, 1980.

DOAK, W. T. Fishes of the New Zealand region. Rev. ed. Ak, Hodder and Stoughton, 1978.

FALLA, R. A., R. B. SIBSON, and E. G. TURBOTT. A new guide to birds of New Zealand and outlying islands. Rev. ed. London, 1979.

FORSTER, R. R., and L. M. FORSTER. Small land animals of New Zealand. Dn, McIndoe, 1970.

FORSTER, R. R. New Zealand spiders. Ak, Collins, 1973.

GIBBS, G. W. New Zealand butterflies. Ak, Collins, 1980.

GUNSON, D. Collins guide to the New Zealand seashore. Ak, Collins, 1983.

KING, C. M. Immigrant killers: introduced predators and the conservation of birds in New Zealand. Ak, O.U.P., 1984.

MCDOWALL, R. M. New Zealand freshwater fishes: a guide and natural history. Ak, Heinemann Educational, 1978.

MARSHALL, J., F. C. KINSKY and C. J. R. ROBERTSON. The Fiat book of common birds in New Zealand. 3v. Wn, Reed, 1972-75.

MILLER, D. Common insects in New Zealand. Wn, Reed, 1971.

O'BRIEN, C. A. A book of New Zealand wildlife. Ak, Landsdowne Press, 1981.

POWELL, A. W. B. New Zealand mollusca: marine, land and freshwater shells. Ak, Collins, 1979.

POWELL, A. W. B. Shells of New Zealand, an illustrated handbook, 5th ed. Ch, Whiicoulls, 1976.

RAMSAY, G. W. and P. SINGH. Guide to New Zealand entomology. Ak, Entomological Society of New Zealand, 1982.

SHARELL, R. New Zealand insects and their story. Ak, Collins, 1971.

SHARELL, R. The tuatara, lizards, and frogs of New Zealand. London, Collins, 1966.

SIBSON, R. B. Birds at risk: rare or endangered species of New Zealand. Wn, Reed, 1982.

SOPER, M. F., Birds of New Zealand and outlying islands. Ch, Whitcoulls, 1984.

WILD ANIMALSIN NEW ZEALAND, compiled under the direction of A. L. Poole. Wn, Reed, 1970.

Botany

ALLISON, K. W. and J. CHILD. The mosses of New Zealand. Dn, University of Otago Press, 1971.

BURSTALL. S. W. Great trees of New Zealand. Wn, Reed and New Zealand Forest Service, 1984.

CHINNOCK, R. J. and E. HEATH. Common ferns and fern allies. Wn, Reed, 1981.

CONNOR, H. E. The poisonous plants in New Zealand. 2nd ed. Wn, Govt Print., 1977.

CROWE, A. A field guide to the native edible plants of New Zealand. Ak, Collins, 1981.

EAGLE, A. L. Trees and shrubs of New Zealand in colour: 228 botanical paintings. Ak, Collins, 1975. Also published 1978 in 2 volumes as Eagle's 100 trees of New Zealand, and Eagle's 100 shrubs & climbers of New Zealand.

FISHER, M. E. New Zealand ferns in your garden. Ak, Collins, 1976.

FLORAOF NEW ZEALAND. Wn, Govt Print., 1961-63 Vol. 1 by H. H. Allan, 1961. Vol. 2 by L. B. Moore and E. Edgar, 1970. Vol. 3 by A. J. Healey and E. Edgar, 1980.

GALLOWAY, D. J., Flora of New Zealand: Lichens Wn. Govt Print., 1985.

GIVEN, D. R. Rare and endangered plants of New Zealand. Wn, Reed, 1981.

JOHNS, J. H. and B. MOLLOY. Native orchids of New Zealand. Wn, Reed, 1983.

LAING, R. M., and E. W. BLACKWELL. Plants of New Zealand. 7th ed. Ch, Whitcombe and Tombs, 1964.

MARK, A. F., and N. M. ADAMS. New Zealand alpine plants. Wn, Reed, 1973.

MATTHEWS, L. J. and Z. CARTER. South African proteaceae in New Zealand. Manakau, Matthews Publishing, 1983.

MOORE, L. B. and J. B. IRWIN. The Oxford book of New Zealand Plants. Wn, O.U.P., 1978.

MORTIMER, J. Trees for the New Zealand countryside: a planter's guide. Ak, Silverfish, 1984.

PARHAM, B. E. V. and A. J. HEALY. Common weeds in New Zealand: an illustrated guide to their identification with a section on noxious plants. Rev. ed. Wn, Govt Print., 1981.

POOLE, A. L., and N. M. ADAMS. Trees and shrubs of New Zealand. Wn, Govt Print., 1980.

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

TAYLOR, G. M. Mushrooms and toadstools in New Zealand. Wn, Reed, 1981.

Technology and agriculture

ATKINSON, J. D. DSIR's First fifty years. Wn, Department of Scientific and Industrial Research, 1976.

BURTON, D. TWO hundred years of New Zealand food and cookery. Wn, Reed, 1982.

CAUGHLEY, G. The deer wars: the story of deer in New Zealand. Ak, Heinemann, 1983.

THE FARMINGOF DEER, WORLD TRENDSAND MODERN TECHNIQUES, edited by David Yerex. Wn, Agricultural Promotion Associates, 1982.

FENEMORE, P. G. Plant pests and their control. Wn, Butterworths, 1982.

FISHER, M. E., E. SATCHELL, and J. M. WATKINS. Gardening with New Zealand plants, shrubs, and trees. Rev. ed. Ak, Collins, 1975.

GIBBS, H. S. New Zealand soils. Wn, O.U.P., 1980.

HARRISON, R. E. Handbook of bulbs and perennials for the southern hemisphere. 2nd. ed. Rev. Palmerston North, R. E. Harrison, 1971.

HARRISON, R. E. Handbook of trees and shrubs. New ed. Rev. Wn, Reed, 1979.

HEALY, A. J. F. Identification of weeds and clover. Wn, Editorial Services, 1982.

HEALY, B. A hundred million trees: the story of New Zealand Forest Products Ltd. Ak, Hodder and Stoughton, 1982.

HOLDEN P. The wild pig in New Zealand. Ak, Hodder and Stoughton, 1982.

LANGER, R. H. M. Pastures and pasture plants. Wn, Reed, 1973.

LEACH, H. 1,000 years of gardening in New Zealand. Wn, Reed, 1984.

LEITCH, D. B. Railways of New Zealand. Ak, L. Fullerton: Newton Abbot, Devon, David and Charles, 1972.

LEVY, E. B. Grasslands of New Zealand. 3rd ed. Wn, Govt Print., 1970.

MCLAUCHLAN, G. The farming of New Zealand. Ak, Australia and New Zealand Book Company, 1981.

MCLEAN, I. The future for New Zealand agriculture: economic strategies for the 1980s. Wn, Fourth Estate Books, 1978.

MATTHEWS, B. W. Gardens of New Zealand. Ak: Hamlyn, 1975.

METCALF, L. J. The cultivation of New Zealand trees and shrubs. Wn, Reed, 1972.

MORTON, H. The whale's wake. Dn, McIndoe, 1982.

MUNRO, M. N. and J. MUNRO. A taste of New Zealand in food and pictures. Wn, Reed, 1977.

NEW ZEALAND FARMERS VETERINARY GUIDE. 4th. ed. Wn, New Zealand Dairy Exporter, 1972.

NEW ZEALAND INSECT PESTS, edited by D. N. Ferro, Lincoln, Lincoln University College of Agriculture, 1976.

NEW ZEALAND MINISTRYOF AGRICULTUREAND FISHERIES. New Zealand Agriculture. Wn, Govt Print., 1974.

NOONAN, R. J. By design: a brief history of the Public Works Department, Ministry of Works. Wn, Govt Print., 1975.

PEARCE, G. L. The pioneer craftsmen of New Zealand. Ak, Collins, 1982.

SCHOFIELD, J. C. Materials for the New Zealand potter. Wn, Govt Print., 1977.

SHEEP PRODUCTION, BREEDINGAND REPRODUCTION, edited by G. A. Wickham and M. F. McDonald. Wn, New Zealand Institute of Agricultural Science, 1982.

SIMPSON, T. E. Kauri and Radiata: origin and expansion of the timber industry of New Zealand. Ak, Hodder and Stoughton, 1973.

THORNTON, G. G. New Zealand's industrial heritage. Wn, Reed, 1982.

TROUP, G. S. Steel roads of New Zealand: an illustrated survey. Wn, Reed, 1973.

Arts

ARCHEY, Sir G. E. Whaowhia: Maori art and its artists. Ak, Collins, 1977.

BARROW, T. T. Decorative art of the New Zealand Maori. 4th ed. Wn, Reed, 1975.

BARROW, T. T. Maori art of New Zealand. Wn, Reed: Paris, Unesco Press, 1978.

BLUMHARDT, D. and B. BRAKE. Craft New Zealand. Wn, Reed, 1981.

BRAKE, B., J. M. MCNEISH and D. SIMMONS. Art of the Pacific. Wn, O.U.P., 1979.

BROWN, G. H. and H. KEITH. An introduction to New Zealand painting, 1839-1980. Rev. ed. Ak, Collins, 1982.

BROWN, G. H. New Zealand painting 1940-1960, conformity and dissension. Wn, Queen Elizabeth II Arts Council, 1981.

BUSCK, G. Working men. Wn, National Art Gallery, 1984.

CAPE, P. I. New Zealand painting since 1960: a study in themes and developments. Ak, Collins, 1979.

CAPE, P. I. Please touch: a survey of the three-dimensional arts. Ak, Collins, 1980.

CAPE, P. I. Prints and printmakers in New Zealand. Ak, Collins, 1974.

CORRUGATED IRONIN NEW ZEALAND, G. Chappie et al. Wn, Reed, 1983.

DOCKING, G. C. TWO hundred years of New Zealand painting. 2nd ed. Wn, Reed, 1982.

DOWNES. P. E. Shadows on the stage. Theatre in New Zealand: the first seventy years. Dn, McIndoe, 1975.

DOWNES, P. E. and P. HARCOURT. Voices in the air: radio broadcasting in New Zealand. Wn, Methuen, 1976.

ELLIS, E. M. and D. G. ELLIS. Early prints of New Zealand, 1642-1875. Ch, Avon Fine Prints, 1978.

FOWLER, M. and R. VAN DE VOORT. The New Zealand house. Ak. Landsdowne, 1983.

HARCOURT, P. M. A dramatic appearance: New Zealand theatre, 1920-1970. Wn, Methuen, 1978.

*HILL, P. M. New Zealand architecture. Wn, Dept of Education, 1976.

HISTORIC BUILDINGSOF NEW ZEALAND: North island, edited by Frances Porter. Ak, Cassell New Zealand, 1979.

HISTORIC BUILDINGSOF NEW ZEALAND: South Island, edited by F. Porter. Ak, Methuen, 1983.

MCLEAN, M. E. and M. ORBELL. Traditional songs of the Maori. Ak, Auckland University Press: Wn, Oxford University Press, 1979.

TE MAORI: Maori art from New Zealand collections, edited by S. M. Mead. Ak, Heinemann, 1984.

N.Z. ART & ANTIQUES YEARBOOK, 1982-83: incorporating N.Z. art auction records. Wn, Newrick Associates, 1982.

*NEW ZEALAND FOLK SONGS: Songs of a young country, compiled by N Colquhon. 2nd ed. Wn, Reed, 1972.

NEW ZEALAND POSTER BOOK, 1830-1940, compiled by E. Ellis. Wn, Reed, 1977.

NEW ZEALAND POTTERS: their work and words, edited by D. Bernhardt. Wn, Reed, 1976.

NORMAN, P. T. Bibliography of New Zealand compositions, vol. 1. Ch, Nota Bene Music. 1982.

PERFORMANCE: A HANDBOOKOFTHE PERFORMING ARTSIN NEW ZEALAND. Wn, Association of Community Theatres, 1982.

PLATTS, U. Nineteenth century New Zealand artists. Ch, Avon Fine Prints, 1980.

SMYTH, B. W. and H. HOWORTH. Books and pamphlets relating to culture and the arts in New Zealand: a bibliography including works published to the end of the year 1977. Ch, Dept of Extension Studies, University of Canterbury: Wn, New Zealand National Commission for UNESCO, 1979.

THOMPSON, F., E. LITTLEWOOD and M. NORRIS. Craft hunter's guide, New Zealand 1980. Ak, 1980. (Available from Pitmans.)

THOMSON, K. W. Art galleries and museums of New Zealand. Wn, Reed, 1981.

VIEWS/EXPOSURES: ten contemporary New Zealand photographers. Wn, National Art Gallery. 1982.

Sport, including mountaineering

AGNEW, 1. J. Kiwis can fly. Ak, Markeltorce, 1976.

ALLAN, W. J. D. Power and sail: a complete guide to yachting and boating in New Zealand. Ak, Heinemann, 1975.

BISMAN, R. A salute to trotting: a history of harness racing in New Zealand. Ak, Moa Publications, 1983.

BRITTENDEN. R. T. The finest years: twenty years of New Zealand cricket. Wn, Reed, 1977.

BYRNE, J. Wing shooting in New Zealand: pheasant, quail, partridge, duck and goose. Wn, Reed, 1982.

CHESTER, R. H. and IN. A. C. MCMILLAN. Men in black. Rev. and updated ed. Ak, Moa Publications, 1983.

COSTELLO, J. B. New Zealand galloping greats. Enl. ed. Ak, Moa Publications, 1977.

FORRESTER, R. and N. ILLINGWORTH. Hunting in New Zealand. New rev. ed. Wn, Reed, 1979.

GARNER, I. and I. WALTER. New Zealand soccer: the impossible dream. Ak, Hodder and Stoughton, 1982.

GLENGARRY, J. The great decade of New Zealand racing, 1970-1980. Ak, Collins, 1983.

HOWITT, R. J. New Zealand rugby greats. Ak, Moa Publications. 1982.

LOUSLEY, D. P. Guide to the ski fields of the South Island, New Zealand. Dn, McIndoe, 1976.

MEMORABLE MOMENTSIN NEW ZEALAND SPORT, edited by Don Cameron. Ak, Moa Publications, 1979.

NEW ZEALAND SPORTING CLUBS DIRECTORY 1980. Ak, Tasman, 1980.

RADIO NEW ZEALAND SPORTS ANNUAL. Wn, Broadcasting Corporation of New Zealand, 1982.

SCANLAN, M. The New Zealand boating handbook. Wn, Reed, 1980.

SPORT NEW ZEALAND. Ak, New Zealand International Publishing Group, 1982.

TODD, S. P. DB sporting records of New Zealand, Ak, Moa Publications, 1976.

WILSON, J. The New Zealand fisherman's bible. Ak, Lansdowne Press, 1981.

Literature, general

A BOOKOF NEW ZEALAND, edited by J. C. Reid and P. Cape. Rev. and enl. ed. Ak, Collins 1979.

MCCORMICK, E. H. New Zealand literature: a survey. London, O.U.P., 1959. (Out of print.)

THE OXFORD BOOKOF NEW ZEALAND WRITING SINCE 1945, chosen by M. P. Jackson and V. O'Sullivan. Ak, Oxford University Press, 1983.

STEAD, C. K. In the glass case: essays on New Zealand literature. Ak, Auckland University Press and Oxford University Press, 1981.

THOMSON, J. E. P. New Zealand literature to 1977: a guide to information sources. Detroit, Gale, 1980.

WOMEN WRITERSOF NEW ZEALAND, 1932-1982: JUBILEE HISTORYAND WRITINGSOFTHE NEW ZEALAND WOMEN WRITERS' SOCIETY, edited by Msrgaret Hayward and Joy Cowley. Wn, Colonial Associates, 1982.

Poetry

*ADCOCK, F. Selected poems. Oxford, O.U.P., 1983.

ANTHOLOGYOF TWENTIETH CENTURY NEW ZEALAND POETRY, selected by V. O'Sullivan. 2nd ed. Wn, O.U.P., 1976.

BAXTER, J. K. Selected poems. Ak, O.U.P., 1982.

BERTRAM, J. M. Charles Brasch. Wn, O.U.P., 1976.

BRASCH, C. Collected poems. Ak, O.U.P., 1984.

CAMPBELL, A. Collected poems, 1947-1981. Martinborough, Taylor, 1981.

CURNOW, A. Selected poems. Ak, Penguin, 1982.

EDMOND, M. End wall. Ak, O.U.P. 1981.

FAIRBURN, A. R. D. Collected poems. Ch, Pegasus Press, 1975.

FIFTEEN CONTEMPORARY NEW ZEALAND POETS. Dn, Pilgrims South Press, 1980.

GLOVER, D. Selected poems. Ak, Penguin, 1981.

HULME, K. The silences between: Moeraki conversations. Ak, Auckland University Press, 1982.

HUNT, S. Collected poems, 1963-1980. Ak, Penguin, 1980.

HYDE, R. Selected poems. Ak, O.U.P., 1984.

JACKAMAN, R. Shaman and Charlatan. Ak, Cicada, 1981.

JOHNSON, L. Coming and going. Wn, Mallinson Rendel, 1982.

MCCORMICK, G. Zephyr. Gisborne, Piano Publishing.

MANHIRE, B. Good looks. Ak, Auckland University Press, 1982.

MITCALFE, B. Maori poetry: the singing word. Wn, Price Milburn, 1974.

NGA MOTEATEA, edited by A. T. Ngata. 3v. Wn, Polynesian Society, 1959-72. Collection of Maori songs.

*NEW ZEALAND LOVE POEMS, chosen by J. Bertram. Dn, McIndoe, 1977.

OLIVER, W. H. Out of season. Wn, O.U.P. 1980.

*O'SULLIVAN, V. G. The rose ballroom and other poems. Dn, McIndoe, 1982.

*O'SULLIVAN, V. G. James K. Baxter. Wn, O.U.P., 1976.

THE OXFORD BOOKOF CONTEMPORARY NEW ZEALAND POETRY CHOSENBY FLEUR ADCOCK. Ak, Oxford University Press, 1982.

PENGUIN BOOKOF NEW ZEALAND VERSE, edited by T. A. M. Curnow. Harmondsworth, Penguin, 1966.

PENGUIN BOOKOF NEW ZEALAND VERSE, edited by Ian Wedde and Margaret Orbell. Ak, Penguin, 1985.

SEWELL, B. Solo flight. Dn, McIndoe, 1982.

SOUTHAM, B. The people dance. Dn, Northcott Reeves, 1982.

STEAD, C. K. Geographies. Ak, Auckland University Press, 1982.

STEAD, C. K. Poems of a Decade. Dn, Pilgrims South Press, 1983.

*THOMSON, J. E. P. Denis Glover. Wn, O.U.P., 1977.

*TUWHARE, H. No ordinary sun. 3rd ed. Dn, McIndoe, 1977.

WEIR, J. E., and B. A. LYON. A preliminary bibliography of works by and works about James K. Baxter. Ch, University of Canterbury, 1981.

Fiction

BIRD. HAWK, Bogie: essays on Janet Frame, edited by Jeanne Delbaere. Aarhus, Dangaroo Press, 1978.

BURNS, J. New Zealand novels and novelists, 1861-1979: an annotated bibliography. Ak, Heinemann, 1981.

COPLAND, R. A. Frank Sargeson. Wn, O.U.P., 1976.

COWLEY, C. J. The growing season. London, Hodder and Stoughton, 1979.

CRITICAL ESSAYSONTHE NEW ZEALAND NOVEL, edited by Cherry Hankin. Ak, Heinemann Educational, 1976.

CRITICAL ESSAYSONTHE NEW ZEALAND SHORT STORY, edited by Cherry Hankin. Ak, Heinemann, 1982.

CROSS, I. R. The God boy. Ch, Whitcombe and Tombs, 1972.

DAVIN, D. M. Roads from home. Ak, Auckland University Press, 1976.

DU FRESNE, Y. Farvel and other stories. Wn, Victoria University Press, 1980.

DUGGAN, M. Collected stories. Ak, Auckland University Press and Oxford University Press, 1981.

EVANS, P. D. Janet Frame. Boston, Twayne, 1977.

FRAME, J. Living in the Maniototo. New York, Braziller, 1979.

FRAME, J. Owls do cry. London, W. H. Allen. 1961.

FRAME, J. A state of siege. Ch, Pegasus Press, 1967.

FRAME, J. You are now entering the human heart: stories. Wn, Victoria University Press. 1983.

GEE, M. Games of choice. Wn, O.U.P., 1977.

GEE, M. Meg. London, Faber: Ak, Penguin, 1981.

GEE, M. Plumb. Wn, O.U.P.: London, Faber and Faber, 1979.

GEE, M. The priests of ferris. Ak, O.U.P., 1984.

GEE, M. Sole survivor. London, Faber: Ak, Penguin, 1983.

GIFKINS, M. After the revolution and other stories. Ak, Longman Paul, 1982.

GRACE, P. F. Mutuwhenua: the moon sleeps. Ak, Longman Paul, 1982.

GRACE, P. F. The dream sleepers and other stories. Ak, Longman Paul, 1980.

GROVER, R. Cork of war: Ngati Toa and the British mission, an historical narrative. Dn, McIndoe 1982.

HILLIARD, N. H. Maori girl. London, Heinemann, 1971.

HILLIARD, N. H. Send somebody nice. London, Hale, 1976.

HULME, K. The bone people. Ak, Spiral, Hodder and Stoughton, 1985.

HYDE, R. The godwits fly. 2nd ed. Ak, Auckland University Press, 1970.

IHIMAERA, W. T. The new net goes fishing. Ak, Heinemann, 1977.

IHIMAERA, W. T. Tangi. Ak, Heinemann, 1974.

IHIMAERA, W. T. Whanau. Ak, Heinemann, 1974.

KIDMAN, F. A breed of women. Sydney, Harper and Row, 1979.

KIDMAN, F. Mrs Dixon and friend, short stories. Ak, Heinemann, 1982.

LEE, J. A. Children of the poor. Ch, Whitcombe and Tombs, 1973.

MCCAULEY, S. Other halves. Ak, Hodder and Stoughton, 1982.

MCNEISH, J. Joy. Ak, Hodder and Stoughton, 1982.

MANDER, J. Allen Adair. Ak, Auckland University Press, 1971.

MANSFIELD, K. The stories of Katherine Mansfield. Ak, O.U.P., 1984.

MARSHALL, O. The master of big jingles and other stories. Dn, Mclndoe, 1982.

MORRIESON, J. R. H. Pallet on the floor. Palmerston North, Dunmore Press, 1976.

MORRIESON, J. R. H. The scarecrow. Ak, Heinemann, 1976.

MULGAN, J. A. E. Man alone. 2nd ed. Ak, Longman Paul, 1975.

N.Z. LISTENER SHORT STORIES, chosen by B. Manhire. 2v. Wn, Methuen New Zealand, 1977-78.

NEW ZEALAND SHORT STORIES, Wn, O.U.P., 1975-84. 4 series.

PICKARD, A. G. All part of the game: the stories of A. P. Gaskell. Ak, Auckland University Press, 1978.

SARGESON, F. Stories. Ak, Penguin. 1982.

SHADBOLT, M. F. R. Figures in light: selected stories. London, Hodder and Stoughton, 1978.

SHADBOLT, M. F. R. Strangers and journeys. London, Hodder and Stoughton, 1972.

SHADBOLT, M. F. R. The lovelock version. Ak, Hodder and Stoughton, 1980.

SHIRLEY TEMPLEISA WIFEAND MOTHER: 34 stories, edited by C. C. Catley. Whatamongo Bay. Cape Catley, 1977.

STEAD, C. K. Five for the symbol. Ak, Longman Paul, 1981.

STEAD, C. K. Smith's dream. Ak, Longman Paul, 1971.

STEVENS, J. The New Zealand novel, 1860-1965. 2nd ed. Wn, Reed, 1966.

TEMPLE, P. Beak of the moon. Ak, Collins, 1981.

WENDT, A. Sons for the return home. Ak, Longman Paul, 1973.

Drama

*BAXTER, J. K. Jack Winter's dream. Wn, Price Milburn for Victoria University Press, 1979.

CONTEMPORARY NEW ZEALAND PLAYS, selected by H. McNaughton. Wn, O.U.P., 1974.

DIRECTORYOF NEW ZEALAND PLAYSAND PLAYWRIGHTS. Rev. ed. Wn, Playmarker, 1981.

HALL, R. L. Middle-age spread. Wn, Price Milburn, 1978.

HALL, R. L. Glide time: a play in four acts set in the public service. Wn, Price Milburn, 1977.

MCGEE, G. Foreskin's lament. Wn, Price Milburn and Victoria University Press, 1981.

MCGEE, G. Out in the cold. Wn, Victoria University Press, 1984.

MCGEE, G. Tooth and claw Wn, Victoria University Press, 1984.

MCNAUGHTON, H. D. New Zealand drama: a bibliographical guide. Ch, Library, University of Canterbury, 1974.

MCNAUGHTON, H. D. New Zealand drama. Boston, Twayne, 1981.

MASON, B. Blood of the lamb. Wn, Price Milburn, 1981.

MASON, B. The pohutukawa tree. Wn, Victoria University Press, 1984.

THOMPSON, J. New Zealand drama, 1930-80. Ak, O.U.P., 1984.

Description and travel

ABOUT NEW ZEALAND. Wn, Ministry of Foreign Affairs, 1982.

ALEXANDER, L. Adventure holidays in New Zealand. Wn, INL Print, 1982.

BARRIBALL, M. New Zealand, images, impressions. Wn, Reed, 1982.

CHAVASSE, C. G. R. and J. H. JOHNS. New Zealand forest parks. Wn, Govt Print., 1983.

COBB, L. and J. DUNCAN. New Zealand's national parks. Ak, Hamlyn, 1980.

CONLON, D. Presenting New Zealand. Ak, Golden Press, 1982.

A DAYINTHE LIFEOF NEW ZEALAND; Friday, March 18th, 1983. Ak, McGregor, 1983.

FOSTER, B. and V. WRIGHT. Stockman country: a New Zealand mustering adventure. Wn, Listener, 1983.

JOYCE, R. and B. SAUNDERS. Discover New Zealand, the glorious islands. Ak, Landsdowne, 1982.

KING, M. and M. BARRIBALL. New Zealand in colour. Wn. Reed, 1982.

MATTHEWS, G. The edge of the land: the coastline of New Zealand. Ch, Whitcoulls, 1983.

NEW ZEALAND ATLAS, edited by Ian Wards. Wn, Govt Print., 1976.

NEW ZEALANDIN MAPS, edited by A. G. Anderson. London, Hodder and Stoughton, 1977.

NEW ZEALAND AUTOMOBILE ASSOCIATION. AA road atlas of New Zealand. Rev. ed. Ak, Hamlyn, 1978.

NEW ZEALAND AA BOOKOF NEW ZEALAND WALKWAYS. Sydney, Landsdowne, 1982.

NEW ZEALAND AA BOOKOFTHE NEW ZEALAND COUNTRYSIDE. Ak, Hamlyn, 1978.

PEAT, N. Detours, a journey through small-town New Zealand. Ch, Whitcoulls, 1982.

POPE, D. and J. POPE. The Mobil illustrated guide to New Zealand. Wn, Reed, 1982.

POPE, D. M. and J. D. POPE. Mobil New Zealand travel guide, North Island. 3rd ed. Wn, Reed, 1977.

POPE, D. M. South Island. 3rd ed. Wn, Reed, 1978.

REED, A. W. Place names of New Zealand. Wn, Reed, 1975. Supplement, 1979.

ROBERTS, G. and B. TURNER. New Zealand high country. Wn, Millwood, 1983.

WILD NEW ZEALAND. Sydney, Reader's Digest, 1981.

WISES NEW ZEALAND GUIDE: a gazetteer of New Zealand. 7th ed. Ak, Wises Publications, 1979,

Historical works

ADAMS, P. W. T. Fatal necessity: British intervention in New Zealand, 1830-1847. Ak, Auckland University Press, 1977.

ATKINSON, J. New Zealand as it was ... today. Ak, In Focus Publishing, 1984.

BEAGLEHOLE, J. C. The discovery of New Zealand. 2nd ed. London, O.U.P., 1961. (Out of print.)

BEGG, A. C and N. C. BEGG. James Cook and New Zealand. Wn, Govt Print., 1969.

BRETT, H. White wings. Ak, Brett Printing Co., 1924-28. Reprinted Ch, Capper Press, 1976. 2 v. Also other facsimile titles by the same publisher.

COOK, J. The journals of Captain James Cook on his voyages of discovery. Edited by J. C. Beaglehole. Cambridge, Hakluyt Society, 1955-5 v. to date. (Hakluyt Society. Extra series No. 34.)

COWAN, J. The New Zealand wars. Wn, Govt Print., 1955-1956. 2 v.

CUMBERLAND, K. B. Landmarks. Surrey Hills N.S.W., Reader's Digest, 1981.

ELDRED-GRIGG, S. Pleasures of the flesh: sex and drugs in colonial New Zealand, 1840-1915. Wn, Reed, 1984.

FACSIMILESOFTHE DECLARATIONOF INDEPENDENCEANDTHE TREATYOF WAITANGI. Wn, Govt Print., 1976.

GRANT, I, F. The unauthorised version: a cartoon history of New Zealand. Ak, Cassell, 1980.

INGRAM, C. W. N. New Zealand shipwrecks, 1795-1975. 6th ed. Wn, Reed, 1984.

JACKSON, W. K. The New Zealand Legislative Council: a study of the establishment, failure, and abolition of an upper house. Dn, University of Otago Press, 1972.

KAY, R. and T. EDEN. Portrait of a century: the history of the N.Z. Academy of Fine Arts, 1882-1982. Wn, Millwood, 1983.

KING, M. New Zealanders at war. Ak, Heinemann, 1981.

LISSINGTON, M. P. New Zealand and Japan, 1900-1941. Wn, Govt Print., 1972.

LISSINGTON, M. P. New Zealand and the United States, 1840-1944. Wn, Govt Print., 1972.

LOOKING BACK: a photographic history of New Zealand, compiled by K. Sinclair & W. Harrex. Wn, O.U.P., 1978.

MCPLINTOCK, A. H. Crown colony government in New Zealand. Wn, Govt Print., 1958.

MCNAB, R. The old whaling days: a history of southern New Zealand from 1830 to 1840. Ak, Golden Press, 1975.

MADDOCK, S. These antipodes: a New Zealand album, 1814 to 1854. Ak, Collins, 1979.

MANING. F. E. Old New Zealand: a tale of the good old times and a history of the war in the north told by an old chief of the Ngapuhi tribe. Ak, Golden Press, 1973. Reprint. (First published 1863.)

MILLEN, J. Colonial tears and sweat: the working class in nineteenth-century New Zealand. Wn, Reed, 1984.

MORRELL, W. P. The Anglican church in New Zealand: a history. Dn, McIndoe, 1973.

MORRELL, W. P. The provincial system in New Zealand, 1852-76. 2nd rev. ed. Ch, Whitcombe and Tombs, 1964.

NEW ZEALAND CENTENNIAL BRANCH. Making New Zealand: pictorial surveys of a century. Wn, 1939-40. 2 v. (Out of print.)

NEW ZEALAND HISTORIC PLACES TRUST. Leaflets on various historic sites: booklets.

NEW ZEALAND WAR HISTORY BRANCH. Documents relating to New Zealand's participation in the second world war, 1939-45. Wn, 1949-63. 3 v. (Out of print.)

NEW ZEALAND'S HERITAGE: The making of a nation. Ak. Hamlyn, 1977. 7 v. in 105 pts, issued weekly.

OLIVER, W. H. The story of New Zealand. 2nd ed. London, Faber, 1963.

THE OXFORD HISTORYOF NEW ZEALAND, edited by W. H. Oliver with B. R. Williams. Oxford, Clarendon Press: Wn, Oxford University Press, 1981.

PASCOE, J. D. Exploration New Zealand. Wn, Reed. 1971.

SIMPSON, A. C. The road to Erewhon. Ak, Beaux Arts, 1976.

SIMPSON, A. C. The sugarbag years. Wn, A. Taylor, 1974.

SINCLAIR, K. A. History of New Zealand. Rev. ed. London, Lane, 1980.

SINCLAIR, K. A. The origins of the Maori wars. 2nd ed. Ak, Auckland University Press, 1974.

SUTCH, W. B. Poverty and progress in New Zealand. A reassessment. 2nd rev. ed. Wn, Reed, 1969.

SUTCH, W. B. The quest for security in New Zealand. 1840 to 1966. Wn, O.U.P, 1966.

TAYLOR. R. Te lka a Maui, or New Zealand and its inhabitants. Wn, Reed, 1974.

THIRTEEN FACETS: Essays to celebrate the silver jubilee of Queen Elizabeth the Second, 1952-1977, edited by I. Wards. Wn, Govt Print., 1978.

WAKEFIELD, E. J. Adventure in New Zealand. Ak, Golden Press, 1975.

WOOD, F. L. W. The Zealand people at war: political and external affairs. Wn, Historical Publications Branch in conjunction with Reed, 1971.

Regional and local works

The following are representative of the many titles in this category:

ACLAND, L. G. D. The early Canterbury runs. 4th. ed. Ch, Whitcoulls, 1975.

ALINGTON, M. H. Unquiet earth: a history of the Bolton Street cemetery. Wn, Wellington City Council Govt Print., 1978.

ALLAN, R M. Nelson a history of early settlement. Wn, Reed, 1965.

ANDERSEN, J. C. Place names of Banks Peninsula: a topographical history. Wn, Govt Print., 1927. Reprinted Ch, Capper Press, 1976. Also other facsimile titles by the same publisher.

BAGNALL, A. G. Wairarapa. Masterton, Hedley's Bookshop, 1976.

BARBER, L. H. The view from Pirongia: the history of Waipa county. Ak, Richards Publishing, 1978.

BEGG. A. C. and N. C. BEGG. Port preservation. Ch, Whitcombe and Tombs, 1973.

BOYO, M. City of the plains: a history of Hastings. Wn, Victoria University Press, for the Hastings City Council, 1984.

BUCHANAN, J. D. H. The Maori history and place names of Hawke's Bay. Wn, Reed, 1973.

CAMPBELL, M. D. N. Story of Napier, 1874-1974. Napier, Napier City Council, 1975.

CARKEEK, W. The Kapiti Coast: Maori history and piace names. Wn, Reed, 1966. Reprinted Ch, Capper Press, 1978.

ELDRED-GRIGG, S. A new history of Canterbury. Dn, McIndoe, 1982.

FIELD, T. A. Relics of the goldfields, Central Otago. Dn, McIndoe, 1976.

GIBBONS, P. J. Astride the river: a history of Hamilton. Ch, Whitcoulls for the Hamilton City Council, 1977.

GUTHRIE SMITH, W. H. Tutira: The story of a New Zealand sheep station. 4th ed. Wn, Reed, 1969.

HALL-JONES, Fiordland explored: an illustrated history. Wn, Reed, 1976.

A HISTORYOF CANTERBURY. Canterbury centennial historical and literary committee. Ch, Whitcombe and Tombs, 1957-71. 3 v.

HOLCROFT. M. H. The line of road: a history of Manawatu County, 1876-1976. Dn, McIndoe for the Manawatu County Council, 1977.

HOWARD. B. H. Rakiura: a history of Stewart Island. Dn, Reed, 1974.

IRVINE-SMITH, F. L. The streets of my city: Wellington, New Zealand. Wn, Reed, 1967.

LAMBERT, T. The story of old Wairoa and the East Coast district, North Island, New Zealand. Dn, Coulis Somerville Wilkie, 1925. Reprinted Ch. Capper Press, 1977.

MCARA, J B. Gold mining at Waihi, 1878-1952. Waihi, Waihi Historical Society, 1978.

MAIN, W. Auckiand through a Victorian lens. Wn, Millwood Press, 1977.

MAY, P. R. The West Coast gold rushes. 2nd rev. ed. Ch, Pegasus, 1967.

NORDMEYF.R, A. Waitaki: the river and its lakes, the land and its people. Oamaru, Waitaki Lakes Committee, 1981.

OLIVER, W. H. Challenge and response: a study of the development of the Gisborne East Coast region. Gisborne. East Coast Development Research Association, 1971.

REED, A. H. The story of Northland. Wn. Reed, 1975.

SMART, M. J. G. and A. P. BATES. The Wanganui Story. Wanganui, Wanganui Newspapers, 1972.

SMEDLEY, B. Homewood and its families. Wn, Mallinson Rendel, 1980.

*STANDISH, M. W. The Waimate mission station. Wn, Govt Print., 1962.

TULLETT, J. S. The industrious heart: a history of New Plymouth. New Plymouth, New Plymouth City Council, 1981.

WOODHOUSE, A. E. Blue cliffs, the biography of a South Canterbury sheep station, 1856-1970. Wn, Reed, 1982.

Biography

HONOURS. TITLES, STYLES, AND PRECEDENCEIN NEW ZEALAND, compiled and edited bv P. P. O'Shea. Wn, Govt Print., 1977. Supplement, 1980.

WHO'S WHOIN NEW ZEALAND, 11th ed., edited by J. E. Traue. Wn, Reed, 1978.

BASSET, J. Sir Harry Atkinson, 1831-1892. Ak, Auckland University Press, 1975.

BEAGLEHOLE, J. C. The life of Captain James Cook. London, Black, 1974.

BINNEY, J., G. CHAPLIN and C. WALLACE. Mihaia: The prophet Rua Kenana and his community at Maungapohatu. Wn, O.U.P., 1979.

BURNS, P. Te Rauparaha. Wn, Reed, 1980.

CONDLIFFE, J. B. Te Rangi Hiroa: the life of Sir Peter Buck. Ch, Whitcombe and Tombs, 1971.

CRESSWELL, W. D. The letters of D'Arcy Cresswell. Ch, University of Canterbury, 1971.

FAIRBURN, A. R. D. The letters of A. R. D. Fairburn, selected and edited by L. Edmond. Ak, Oxford University Press, 1981.

FINGLETON, D. Kiri Te Kanawa. London, Collins, 1982.

FRAME, J. To the Island: an autobiography: volume one. London, Women's Press: Ak, Hutchinson Group, 1983.

FRAME, J. An angel at my table: an autobiography: volume two. Ak, Hutchinson, 1984.

FRAME, J. The envoy from mirror city: an autobiography: volume three. Ak, Hutchinson, 1985.

GORDON, J. All the world's a stage. Wn, Mallinson Rendel, 1981.

HARPER, B. Petticoat pioneers: South Island women of the colonial era. Wn, Reed, 1980.

HAYWARD, M. Diary of the Kirk years. Wn, Reed: Queen Charlotte Sound, Cape Catley, 1981.

HENDERSON, J. M. Ratana: the man, the church, the political movement. 2nd ed. Wn, Polynesian Society, 1972.

KING, M. Te Puea. Ak, Hodder and Stoughton, 1982.

KING, M. Whina: a biography of Whina Cooper. Ak, Hodder and Stoughton, 1983.

LEE, J. A. The John A. Lee diaries, 1936-40. Ch, Whitcoulls, 1981.

LUSH, V. The Waikato journals. 1864-68, 1881-82. Ch, Pegasus, 1982.

MACGREGOR, M. F. Petticoat pioneers: North Island women of the colonial era. Wn, Reed, 1973. 2 v. 1975.

MCCORMICK, E. H. Omai, pacific envoy. Ak, Auckland University Press, 1977.

MCCORMICK, E. H. Portrait of Frances Hodgkins. Ak, Auckland University Press: O.U.P., 1981.

MCNEISH, J. Walking on my feet: A. R. D. Fairburn, 1904-1957. Ak, Collins, 1983.

MARSH, N. Black beech and honeydew: an autobiography. Rev. and enl. ed. Ak, Collins, 1981.

MARSHALL, J. Memoirs. Volume 1. 1912 to 1960. Ak, Collins, 1983.

MEYERS, J. Katherine Mansfield: a biography. Ak, Hodder and Stoughton, 1979. Also published London, H. Hamilton, 1978.

NOTABLE NEW ZEALANDERS. Ak, Hamlyn, 1979.

OLIVER, W. H. James K. Baxter: a portrait. Wn, Port Nicholson Press, 1983.

OLSSEN, E. N. John A. Lee. Dn, University of Otago Press, 1977.

O'SHEA, P. P. An unknown few: the story of those holders of the George Cross, the Empire Gallantry medal, and the Albert medals associated with New Zealand. Wn, Govt Print., 1981.

RAESIDE, J. D. Sovereign chief: a biography of Baron de Thierry. Ch, Caxton Press, 1977.

ROLLESTON, R. William and Mary Rolleston. Wn, Reed, 1971.

SARGESON, F. Sargeson. Ak, Penguin, 1981.

SCOTT, R. G. A stake in the country; Assid Abraham Corban and his family, 1892-1977. Ak, Southern Cross Books, 1977.

SHADBOLT, M. F. R. Love and legend: some 20th century New Zealanders. Ak, Hodder and Stoughton, 1976.

SINCLAIR, K. Walter Nash. Ak, Auckland University Press, 1976.

SINCLAIR, K. William Pember Reeves: New Zealand Fabian. Oxford, Clarendon Press, 1965.

STONE. R. J. C. Young Logan Campbell. Ak, Auckland University Press, 1982.

STIRLING, A. M. Amiria: the life story of a Maori woman, as told to Anne Salmond. Wn, Reed, 1976.

THOMSON. J. M. A distant music, the life and times of Alfred Hill, 1870-1960. Ak, O.U.P., 1980.

TE WIATA, B. Inia Te Wiata, most happy fella. Ak, Hutchinson, 1982.

WEBSTER, P. Rua and the Maori millennium. Wn, Price Milburn for Victoria University Press, 1979.

WILSON. O. An outsider looks back: reflections on experience. Wn, Port Nicholson Press, 1982.

Humour

BALL, M. The cry of the grey ghost. Wn, INL Print, 1983.

BALL, M. Stanley. Wn, INL Print, 1982.

BALL, M. They've put custard with my bone! Wn, INL Print, 1982.

BROCKIE, B. Brockie's bones of contention. Wn, Fourth Estate Group, 1983.

FLETCHER, D. Grasp and Co. Wn, INL Print, 1983.

GADSBY, J., D. MCPHAIL and A. K. GRANT. The McPhail and Gadsby Book. Ch, Whitcoulls, 1983.

GRANT, A. K. The paua and the glory: the story of New Zealand's rise to international insignificance. Ak, Allen and Unwin, 1982.

HENSHAW, D. The best of Jock. Ak, Hodder and Stoughton, 1983.

MCLEOD, R. Rosemary McLeod's beside book. Martinborough, Alister Taylor, 1981.

MINHINNICK. Just a min—: cartoons from the New Zealand Herald. Ak, Wilson and Horton, 1983.

ROBERTSON, D. A dog's breakfast. Ak, Lindon, 1983.

SEFTON, R. How to use a dead kiwi. Ak, Lindon, 1983.

Chapter 33. Department or Statistics Publications

Publications marked with an asterisk are obtainable only from the Department of Statistics, Wellington. All other publications may be obtained from the Government Printer, Auckland, Hamilton, Wellington, Christchurch and Dunedin.

General:

Annual Report of the Government Statistician (Parliamentary Paper G. 28)

Employment Statistics

Handbook on Survey Procedures*

Inter-industry Study of the New Zealand Economy

Monthly Abstract of Statistics

New Zealand (annual brochure)*

New Zealand Official Yearbook

New Zealand Life Tables

New Zealand Population Projections 1983-2016

New Zealand Sub-National Population Projections 1981-2001 (Report No. 1 and No. 2)

New Zealand System of National Accounts

New Zealand Tables of Working Life*

Pocket Digest of Statistics

Publications Catalogue

Report on the 1980 Revision of the Consumers Price index

Statistics—The People to Ask (departmental directory)

Social Indicators Survey Report 1980-81

Social Indicators Working Paper No. 1: Defining Unemployment

Annual Statistical Reports:

Agricultural Statistics

Building Statistics (see also Bulletins)

Exports

External Trade, Report and Analysis of

Household Expenditure and Income Survey

Imports

Insurance Statistics

Justice Statistics: Part A

Justice Statistics: Part B

Local Authority Statistics

Overseas Balance of Payments

Population and Migration Statistics: Part A—Population

Population and Migration Statistics: Part B—External Migration

Prices Statistics 1983-84

Shipping and Cargo Movements

Statistics of Incomes and Income Tax of Persons

Statistics of Incomes and Income Tax of Companies

Transport Statistics

Vital Statistics

Wages and Earnings

Work Stoppages and Industrial Unions

Five-yearly Statistical Reports:

Census of Population and Dwellings 1981 (see also Bulletin series)

Vol. 1. Location and Increase of Population (Parts A, B, and C)

Vol. 2. Ages, Marital Status and Fertility

Vol. 3. Religious Professions

Vol. 4. Labour Force

Vol. 5. Incomes

Vol. 6. Education and Training

Vol. 7. Birthplaces and Ethnic Origin

Vol. 8A. New Zealand Maori Population and Dwellings

Vol. 8B. Pacific Island Polynesian Population and Dwellings

Vol. 9. Dwellings

Vol. 10. Households and Families

Vol. 11. Internal Migration

Vol. 12. General Report

Census of Agricultural Contracting Services, 1979-80

Census of Building and Construction, 1978-79

Census of Distribution, 1982-83

Census of Fishing, 1983-84

Census of Forestry and Logging, 1979-80

Census of Manufacturing, 1981-82

Census of Mining and Quarrying, 1978-79

Census of Services (Finance and Insurance) 1982-83

Census of Transport, Storage and Communication, 1979-80

Bulletins:

Building Statistics Bulletin BC/MP/00 (monthly)*

Building Statistics Bulletin BC/QP/00 (quarterly)*

Building Statistics Bulletin BC/AP/00 (annually)*

Census of Distribution 1978

A1. General Statistics

A2. Concentration Ratios and Comparisons with 1972-73 Census of Distribution

B1. General Regional Summary—Wholesale and Retail Trade

B2. General Regional Summary—Restaurants and Hotels; Personal and Household Services

B3. North Island Regional Statistics

B4. South Island Regional Statistics

C1. Wholesale Trade 1982-83

C2. Retail Trade 1982-83

C3. Restaurants and Hotels 1982-83

C4. Personal and Household Services 1982-83

Census of Manufacturing 1981-82 Series C

1. Manufacture of Food, Beverages and Tobacco

2. Textile, Wearing Apparel and Leather Industries

3. Manufacture of Wood and Wood Products, including Furniture

4. Manufacture of Paper and Paper Products, Printing and Publishing

5. Manufacture of Chemicals and Chemical Products, Petroleum, Coal, Rubber and Plastic Products

6. Manufacture of Non-Metallic Mineral Products, except Products of Petroleum and Coal

7. Basic Metal Industries

8. Manufacture of Fabricated Metal Products, Machinery and Equipment

9. Other Manufacturing Industries

Census of Population and Dwellings 1981:

Provisional Statistics Series

1. Local Authority Areas

2. Provisional National Statistics

3. Provisional Regional Statistics

Census of Papulation and Dwellings 1981:

Regional Statistics Series

1. Northland

2. Central Auckland

3. South Auckland - Bay of Plenty

4. East Coast and Hawke's Bay

5. Taranaki

6. Wellington

7. Marlborough, Nelson and Westland

11. National Summary

Bulletin on Cigarette Smoking

1983 Electorate Boundaries

Range and Availability of Statistics

Justice Statistics 1981*

1. Divorce, Domestic Proceedings and Civil Actions

2. Prisons and Prisoners and Supreme Court (Criminal)

Miscellaneous Series*

Demographic Bulletin

Merchandise Trade with Australia (Quarterly)*

External Trade: Merchandise Exports (Provisional Monthly)*

External Trade: Merchandise Imports (Provisional Monthly)*

Occasional Paper Series*

No. 1. The Effect of Increases in Nominal Incomes on Personal Income Tax Rates

No. 2. ASSET—A Simulation System for Evaluating Taxation

No. 3. A Comparison of New Zealand and Australian Manufacturing Industries 1978-79

No. 4. New Zealand Rural Profile

No. 5. An Investigation of Official Ethnic Statistics

New Zealand Standard Classifications*

New Zealand Standard Classification of Occupations (NZSCO)

New Zealand Standard Country Codes (NZSCC)

New Zealand Standard Institutional Sector Classification Manual (NZISC)

New Zealand Statistical Classification of Exports

New Zealand Statistical Classification of Imports

New Zealand Standard Industrial Classification

New Zealand Standard Classification by Broad Economic Categories

Review of Finance Statistics: Standards for Finance Statistics

Reviews of Statistics*

A regularly updated list of the Department's publications is published in the Monthly Abstract of Statistics. Further details on this list and the complete Publications Catalogue are available from any office of the Department.

Chapter 34. Yearbook special articles 1976-1985

Special articles before 1976 are listed in the 1985 and earlier Yearbooks.

      SubjectYear
    Tourism: the invisible export1976
One hundred years of Lands and Survey1976
Royal Visit 19771977
New Zealand at the turning point1977
Education in the New Zealand community1977
Abbreviations, contractions, and acronyms1978
General Price Index1978
Abbreviations, contractions, and acronyms (revised)1979
The child and learning in a multi-cultural society1979
The New Zealand environment and changes in environmental management since 19701980
Life tables: a measure of life expectancy1980
Golden Fleece: The evolution of the New Zealand wool industry1981
Consumers Price Index 1980 revision1981
General Election 19811982
A Century of Meat Exports1982
INFOS (Information Network for Official Statistics)1984
New Zealand women: their changing situation, 1970-19841985

Index

Coverage

Individual commodities or products are indexed separately only when they are unusually significant, e.g., Wool. Where there is no individual entry, look on pages listed under the appropriate general index entry:

  1. General commodity or product headings, e.g., Crops, Dairy Products, Minerals, Meat; or

  2. General economic and business activity headings, e.g., Retail trade, Manufacturing, Prices.

Similarly, specific services and industries should be looked for in listings under general headings such as Business Censuses or National Accounts.

Names of places and geographic features are not indexed separately, but can be found on pages listed under the relevant heading, e.g., Cities; Mountains; Population. Exceptions are names of countries, and inhabited islands.

Acts of Parliament are not indexed separately, and statutory bodies are indexed separately only where there is a major reference (see pp. 53-58 for a complete list).

A large number of organisations and bodies indexed by name have the prefixes 'National' or 'New Zealand'. If there is no reference under a more generally known name, they may be found under these prefixes (e.g.. National Film Library; New Zealand Dairy Board).

A

Abortion, 194-196
Accident compensation, 284, 285-287, 726
Accident Compensation Corporation, 284-285, 291-292
Accident insurance, 296, 726-727
Accidents, 287-291
cases of, treated in public hospitals, 192-194
drowning, 296
fatal, 301
prevention of see Safety
in traffic, 293-295
work, 298-299
Accommodation benefit, 211
Accommodation, tourist, 321-322
Acts of Parliament, 35, 37
ADB (Asian Development Bank), 706-707
Adoption, 119, 226
Adult education, 261-263
Advertising, newspaper and periodical, 313
Aerial topdressing, 440, 594
Africa, relations with, 82
Age distribution of population, 107-108, 150, 158
Agricultural land, 403, 435-437
Agricultural Producers Price Index, 442
Agricultural Production Account, 440-442, 804-805
Agricultural production, aspects of (see also Dairy products, Meat and meat products, Wool)
crops, 466-470
marketing, of products, 449-450, 454-456, 459-462
Agricultural Training Council, 340
Agriculture, aspects of, 435, 444
accidents, 300
aquaculture, 491
capital expenditure, 438-439
cattle, 446
dairy farming, 457
deer farming, 465
farm employees, 300, 387, 437-438
financial assistance to, 710-712
goat farming, 465
historical development of, 22-23
irrigation, 430-431, 439-440
machinery for, 439
producers price index, 442
research on, 395, 398-400
sheep, and sheep farming, 445
soils for, 404-405
Aid, overseas, 82-86
Air force, 103
Air freight, 589-593
Air mail, 607-608
Air New Zealand, 589-591
Air pollution, 432
Air transport see Aviation
Airlines, 587, 591
Alcohol
and health, 173-174
legal aspects of consumption, 636
Alcoholic Liquor Advisory Council, 174
Alexander Turnbull Library, 309
Aluminium, 510
Ambassadors
foreign, in New Zealand, 93-96
New Zealand, overseas, 90-93
Amenities, of dwellings, 130-131
Ammonia urea plant, 510
Animals, farm see Livestock
Animals and plants, 12-16
Anniversary Day holidays, provincial, 386
Antarctic, 97
Ante-natal services, 171
Antiquities, protection of, 306
ANZUS (Australia, New Zealand, and United States) Treaty, 98
Apiaries, 464-465
Appeals against convictions and sentences, 267
Apples and pears, 472-473
Applied Technology Programme, 690
Apprentices, 340-342
Aquaculture, 491
Arbitration Court, 63-64, 375-376
Archaeological sites, protection of, 306
Area health boards, 162
Area, total land, 2
Armed Forces, 99-103
assistance to community, 99-100
New Zealand Army, 102
Royal New Zealand Air Force, 103
Royal New Zealand Navv, 101
strength of, 100, 101, 102, 103
Arrivals, in country (see also Immigration), 113-115
Art galleries, 306
Artificial aids, 202
Arts and cultural activities, 304-307
awards in, 307
Arts Council (Queen Elizabeth II), 304
ASEAN (Association of South-east Asian Nations), 80, 649
Asian countries, relations with, 80, 650
Asian Development Bank (ADB), 706-707
Association of South-east Asian Nations (ASEAN), 80, 649
Audit Office, 41, 46
Australia, relations with, 79, 647
Australia, New Zealand, and United States Treaty (ANZUS), 98
Australia - New Zealand Closer Economic Relations Trade Agreement (CER), 79, 646, 647
Average Gross Income index, 373
Average retail prices, 672-673
Average tax rates index, 374
Aviation
freight and passenger operations, 589-593
licensing of, 588
services to, 589
Awards in literature and art, 307

B

Baches, 322
Balance of payments, 810, 816
definition and principles of, 810-812
summaries, 813-815
Bank cards, 633, 756
Bank notes, 701
Bank of New Zealand, 682
Bankruptcies, 720-722
Banks and banking, 680, 701
Asian Development Bank (ADB), 706-707
Bank of New Zealand, 682
Development Finance Corporation, 514, 689-690
finance companies, 691-692
regulation of, 681
Reserve Bank of New Zealand, 680-682
savings banks, 686-689
trading banks, 682-686
Beef see Meat and meat products
Beer, duty on (see also Alcohol), 645
Bees and beekeeping, 464-465
Benefits
accident compensation, 284, 285-287, 726
accommodation, 211
death, 211-212
dental, 175, 202
domestic purposes, 139, 208-209
emergency, 211
family, 209
handicapped child's allowances, 211
health, 200-202, 203-204
hospital, 200
invalids, 210
laboratory, 201
maternity, 201
medical 200
orphans, 209
pharmaceutical, 200
physiotherapy, 201
sickness, 210-211
social welfare, 199-204, 206-213, 224-225
unemployment, 333-337
war pensions and allowances, 215-218
widows, 208
Betting, 314-315
Bibliography, Books about New Zealand, 829-843
Birthplaces of population, 143
Births and birth rate (see also Childbirth), 116-120
ex-nuptial, 118-119
registration of, 116, 119
Books and libraries, 307
Boroughs and borough councils, 69
population of, 111
Brides, 136-137, 138
Bridegrooms, 136-137, 138
Broadcasting
radio, 311-312, 612
television, 311, 312
Broadcasting Corporation of New Zealand, 310-311
Broadcasting Tribunal, 311
Building and construction (see also Housing), 524-546
census of, 546-549
materials used, 545
permits and work put in place, 542-545
of rental houses, 537
Building Industry Advisory Council, 545
Building Performance Guarantee Corporation, 546
Building societies, 712-715
Buildings
construction of, 542-545
for educational institutions, 240-241
historic, 307
used as dwellings, 129-131
Bureaufax services, 610
Burial and cremation, 121
Bursaries
school boarding, 248
for tertiary study, 251
university, 246
war, 217
Buses, school, 248
Business censuses, 517-519
Business directory, 517
Butter see Dairy products

C

Cabinet, 42-43
Calves, 146
Campbell Island, 2
Canada, relations with, 80, 648
Capital Expenditure Price Index, 677-678
Capital Finance Accounts, 799
Capital gains, tax on. 749
Capitalisation of family benefit, 209
Cargo
air, 589-593
handled at ports, 579-581, 583
Caribbean, relations with, 81
Carpets and carpet yarns (see also Textiles), 456
Casein see Dairy products
Cattle, 446
Caucuses, political party, 34
Census of Building and Construction, 546-549
Census of Distribution, 617-621
Census of Fishing, 493-494
Census of Forestry and Logging, 477-479
Census of Gas Industry, 568-569
Census of Manufacturing, 519-531, 534
Census of Mining and Quarrying, 498-500
Census of Population and Dwellings, results of, 105, 125
dwellings, 129-131, 153-154, 160
employment, 325, 328-331, 333-334, 346-352
incomes, 357-359
population, 106, 108, 149
Census of Services, 624—632
finance, 693-695
insurance, 731-738
Census of Transport, Storage, and Communication, results of, 571-574
Central Government finance, 739, 740-742
capital works, 746-747
expenditure, 740-745, 746-747
Public Accounts, 739, 748, 749
Public debt, 765-767
taxation, public account, 742
revenue, 749
CER (Australia - New Zealand Closer Economic Relations Trade Agreement), 79, 646, 647
Cereals, 466-468
Chatham Islands, 2
Cheese see Dairy products
Chemicals, poisonous, 170
Child care (see also Preschool education), 226, 242
Childbirth
births and birth rate, 116-120
infant mortality, 181-183
maternal deaths, 183
maternity benefits, 201
maternity leave, 386-387
stillbirths, 119-120, 181
Children
in care of Department of Social Welfare, 230-231
custody and guardianship of, 139, 140
day care for, 226, 242
deaths of, 302
disabled, 247
health of, 172
and justice system, 227-230
long-term care for, 226
Children and Young Persons Courts, 64, 227-230
Children's health camps, 173
Children's homes, 226
China, relations and trade with, 649
CHIP (Community Housing Improvement Programme), 541
Chiropractors, 164
Churches and religious organisations, number of adherents of, 142
Cities and city councils (see also Urban areas), 69
population of, 111
Citizenship, 148-149
Civil aviation, 587
Civil defence, 280
Civil jurisdiction of courts, 65
Clays and clay products, 506
Climate, 9-12
CNG (compressed natural gas), 553
Coal, 513, 554
consumption, 507, 550
mining of, 508
resources, 495-498
Coastal erosion, 432
Coastal shipping, 298, 388, 576
Coat of arms, 74
Coffee, 656-657
Coins and coinage, 701
Colleges
secondary, 244-245
teachers', 256-257
Colonisation, 20-21
Commerce Commission, 634, 667
Commercial practices, 634
Commission for the Environment, 48, 427-428
Commissions of Inquiry, 41-42
Commonwealth, relations with, 88
Communication, Census of transport, storage, and 571-574
Community and Housing Improvement Programme (CHIP), 541
Community centres, 263
Community colleges, 236
Community councils, 72
Community housing, 541
Community service, imposed by courts, 273
Companies, 717-720
bankrupt, 720-722
finance, 691-692
incomes of, 763-764
mergers of, 634
overseas, 818
profits, 719-720
registrations, 718
taxation of, 762-763
Compensation, accident, 284, 285-287, 726
Compressed natural gas (CNG), 553
Conservation of cultural property, 305
Conservation of natural resources, 429-430, 431-432
forests, 421-423
by recycling, 513-514
research on, 396
Consolidated Account, 739
Consolidated Accounts of the Nation, 798
Constitution, 32-33, 34
history of, 19, 24-25
Construction, 542-546
of housing, 535-536
Consumer Council, 634
Consumer protection, 634
Consumers Price Index
all groups, 25 market centres 668-669
basis of 667-668
each group, for individual centres 670-671
international comparison, 673-674
summary and latest figures, 672-673
Containerisation, 576
Continuing education, 261-263
Contraception, 172
Convictions
appeals against, 267
numbers of, 264
sentencing on, 269
Cook Islands, 77-78
Cook Strait rail/ferry service, 595
Copyright, 309
Corrective training, 274-275
Correspondence school, 248
Cost of living, 132-135
Council for Educational Research. 237
Council for Recreation and Sport, 314
Counties and County councils, 69
Court of Appeal, 62, 65, 267
Courts, 61-64
of Appeal, 62. 65, 267
Children and Young Persons, 64, 227-230
District, 63, 65, 66
Family, 63. 139, 214
High, 62-63, 64, 65-66, 266, 268-269
trial, 266, 268-269
CP1 (Consumers Price Index), 667-671
Credit, 632, 698
Credit cards, 633, 756
Cremation and burial, 121
Crime, 264-265
compensation for, 267
criminal jurisdiction, 264, 266
murder, 265
rape and sexual offences, 265
theft, 265
Criminal trials, 266-267
Crops. 466
fruit, 470-471
grains, 466-468
seeds, 469-470
vegetables, 469
Crown land, 412-413
Crown Law Office, 47
Currency, 701, 702-703
Customs Department, 47
Customs tariff and revenue, 644-645, 757

D

Dairy farming, 457
Dairy products
exports, 461-462
marketing of, 459-461
milk and milk products, 457-458
prices, 462
production, 458
Data services, 610
Day care, 226, 242
Daylight saving, 16
Deaf persons, 171, 202
Death benefits, 211-212
Death duty, estates passed for, 758-759
Deaths and death rates, 120-121, 177-181, 181-183
accidental, 301
of children, 302
infant, 181-183
registration of, 139
stillbirths, 119-120. 181
Debt
private, 720-722
public, 765-767
Deer farming, 465
Defence. 97
civil, 280
Ministry of, 47
Defence agreements, 98
Dental benefits, 175, 202
Dental health, 174, 175
Dentists, 163
Department of Education. 47, 236
Department of Health, 48, 166-167
Department of Internal Affairs, 49
Department of Justice, 49
Department of Labour, 49, 297
Department of Lands and Survey, 49, 405, 415-416
Department of Maori Affairs, 50, 155, 156
Department of Department of Scientific and Industrial Research, 50-51, 395, 396-398
Department of Social Welfare, 51, 198
Department of Statistics, 51
publications, 845
Department of Trade and Industry, 52
and industrial development, 513, 514, 515
and overseas trade, 642, 656
Departments, functions of government, 46-53
Departures, from country, 113-115
Deportation, 147
Design industrial, 515-516
Detached youth worker scheme, 314
Developing Countries Liaison Unit, 650
Development Finance Corporation. 514, 689-690
Diplomatic, consular, and other representation in New Zealand. 93-96
Dietitians, 164
Diplomatic representatives overseas, 90-93
Disability allowances, 211
Disabled children, education of, 247
Disabled persons (see also Intellectually handicapped adults and children), 212-213
artificial aids for, 202
Diseases, 189-191
Displaced persons, 145-146
Dissolution of marriage, 139-141
District communities and community councils 71, 168, 169
District Courts, 63, 65, 66
civil cases, 65
criminal cases, 266, 268-269, 270-271
traffic offences, 270-271
District planning, 425-426
Districts and district councils, 69-70
Divorce, 139-141
Domestic assistance, 201
Domestic Proceedings Court see Family Courts
Domestic Purposes Benefits (DPB), 139, 208-209
Domestic trade, 616
census of distribution, 617-621
retail trade, 622-624
wholesale trade, 617-618
Domestic travel, 320, 321
Drinking, legal age for, 636
Driving offences, 271-272, 605-606
Drowning, 296
Drugs, 278
legal control of, 169
offences involving, 265
DSIR (Department of Scientific and industrial Research), 50-51. 395, 396-398
Dwellings (see also Households), 129-131

E

Earthquake and War Damage Commission, 281, 730-731
Earthquakes, 4, 6-8
Economic censuses see Business censuses
Education (see also Examinations, Schools)
administration of, 236
adult, 261-263
buildings, 240-241
community, 263
curriculum, 243, 244
Department of, 47, 236
international, 238
of Maoris, 244, 245, 342
of Pacific Island Polynesians, 342
pre-school, 242
public expenditure on, 238-240
roll numbers, 233-234
rural, 247-248, 250
special, 247
teaching staff employed, 234
technical, 258
university, 250
Educational research, 237
EEC (European Economic Community), 645, 646, 648
EEZ (Exclusive Economic Zone), 487
Eggs, 464
Elections
licencing poll, 40
local body, 72-73
parliamentary, 39-40
Electorates, 40
listed, 37-39
Electric power boards, 70, 563
Electricity, 559-567
consumption of, 550, 551, 562
generation of, 560-561, 566
historical development, 559-560
Electricity—continued
planning for, 562
supply authorities, 70, 563
Electronics, 512, 515
Embassies
of foreign countries 3-96
New Zealand, overseas, 90-93
Emergency benefits, 211
Emergency Protection Authority, 643
Emergency Reserve Corps Pensions, 217
Emigration, 115, 144. 326-327
Employers, 380-381
Employment (see also Labour force, Occupational groups, Unemployment), 325, 337, 344
in health services, 185
and human rights see Human Rights Commission
by local authorities, 344, 345
in the Public Service. 345
statistics on 331, 332, 334
surveys of, 344
of women, 352-354
Employment and Vocational Guidance Service, 337
Energy
conservation, 556-559
demand and supply, 550-552
forms of see below Energy, forms of
Ministry of, 47, 553-554
planning, 553-554, 559
research, 395
resources, 552, 554-555
Energy Advisory Committee, 554
Energy, forms of, 556
coal, 513, 554
electricity, 559-567
gas, 551, 553, 554, 567-569
geothermal, 555, 560-561
petroleum. 500-501
solar, 557
Engineering industry, 511-512
Enterprise survey, 517
Environment (see also Planning)
agencies responsible for, 427-429
Commission for, 48, 427-428
and mineral exploitation, 429
research on, 396
Environmental Council, 428
Environmental health, 168-169
Equal employment opportunities, 343
Equal Opportunities Tribunal, 66
Estate duty, 754, 755, 758-761
Ethnic groups in population, 143
Maoris see Maori population
Pacific Island Polynesians, see Pacific Island Polynesians
Race relations and racial discrimination, 66
European countries, relations with, 81, 650
European Economic Community (EEC), 645, 646, 648
Europeans, settlement by, 20-21
Examinations, 245-246, 260
Exchange rates, (see also Overseas exchange transactions), 699, 701-703
Excise duties, 645, 757
Exclusive Economic Zone (EEZ), 487
Executive Council, Cabinet and, 42-43
Ex-nuptial births, 118-119
Expectation of life, 121-122
Export awards, 643
Export Guarantee Office, 643
Export Prices Index, 663-664
Exports, 640-641
to ASEAN and ESCAP countries, 649
destinations, by country and commodity, 646, 651-655
main, value of, by commodity groups, 657-659
marketing of agricultural, 449-450, 454-456, 459-462
to South Pacific, 649
uncommitted, 809
value and volume of, by commodity, 657-659
value of, by SITC, 659-661
Exports and Shipping Council, 638
External migration. 113-115
Emigration, 115, 144, 326-327
Immigration, 115, 144, 145-148, 326-327
External trade (see also Exports, Imports), 638, 645-646, 816
annual, by country, 651-655
by country and region, 646
per head, 641
price and volume indexes, 662-663, 665-666
statistics of, types and sources, 638-640
terms of, index, 665
External transactions account, 704-705, 799-800, 813

F

Factories (see also Manufacturing industry), 171, 386
Families see Households
Family benefits, 209
capitalisation of, 539
Family Courts, 63, 139, 214
Family Care payments, 209
Family planning, 172
Family Support Scheme, 790
FAO (Food and Agriculture Organisation), 88
Farm employees, 300, 387, 437-438
Farming see Agriculture, aspects of
Farming, Inputs Price Index, 442-443
Farms, types of, 436-437
Family law, 63, 139
Federation of Labour, 380
Ferries, Cook Strait, 595
Fertiliser (see also Topdressing), 440
Fertility rate, 116, 151
Films
National Film Library, 249
New Zealand Film Commission, 305
Finance companies, 691-692
money and credit aggregates of, 691 Fines, 273
Fire Service, New Zealand, 281-283
Fire insurance, 283-284, 727-728, 734-736
First aid, 171
Fish
catch, 489-491
exports, 491
species, 487-489
Fisheries resources, 487-489, 491 protection of, 487
Fishing
census of, 493-494
by foreign vessels, 492
industry, 493-494, 711
recreational, 316
Fishing vessels, 490
Flag, New Zealand, 74
Fluoridation, 175
Food
expenditure on, 133
and nutrition, 170
processing research, 395
standards, 130-131
Food and Agriculture Organisation, United Nations (FAO), 88
Footwear, 513
Foreign Affairs, Ministry of, 48, 90
Foreign policy (see also Official Development Assistance (ODA)), 77
Foreign trade, see External trade
Forest parks, 421
Forest products see Timber and timber products
Forest Research Institute, 400
Forestry and logging, 476
employment in, 476-477
and logging, census of, 477-479
private, 476
production, 480-481
products see Timber and timber products
research into, 400
state, 48, 400, 421, 422-423, 474, 475
Forests
conservation and protection, 421-423
exotic, 474-475
native, 15, 421, 475-476
recreation in, 422, 426-427
Freight
air, 589-593
shipping, 298, 388, 576
Friendly societies, 717
Fringe benefit tax, 750
Frost, 10, 11
Fruit, 470-471
Fuels, 554, 558
coal, 513, 554
gas, 551, 553, 554, 567-569

G

Galleries, art, 306
Gaming, 315
Gas, 551. 553, 554, 567-569
industry, census of, 568-569
liquefied petroleum (LPG), 557-558
natural, 553
GELS (Group Employment Liaison Scheme), 329
General Agreement on Tariffs and Trade (GATT), 79, 642-643
General Assembly Library, 309
General elections, 39-40
Generalised System of Preference, 644
Geographical features, 1-3
glaciers, 2
lakes, 3
mountains, 2, 5
Geology, 4-6
Geothermal power, 555, 560-561
Geriatric hospitals, 201, 205
Gift duty, 755
Glaciers, 2
Glossary of statistical terms, 825
Goat farming, 465
Gold. 22, 502-504
overseas reserves of, 703-704, 814
Golden Kiwi lottery, 315-316
Goods and Services Tax (GST)
calendar of related measures, 792-793
on exports and imports, 783
and Family Support Scheme, 790
on financial services, 786
and income tax rates, 788-791
operation of, 781-786
and prices, 782, 787
on public sector and local body rates, 785-786
rate of, 782, 783
registration for, 783
and secondhand goods, 784
and tax reform, 779-781
taxable activities, 783
zero-rated and exempt supplies, 783
Government Computing Service, 48
Government departments (see also Public Service), 44, 45-46
functions of, 46-53
public debt held by, 772
Government finance see Central Government finance
Government Life Insurance Corporation, 48, 729-730
Government Printing Office, 48
Government Prototype Development Fund, 515
Government stock and securities, 698, 699, 701
Government Superannuation Fund, 219-222, 736-738
Governor-General, 32, 33, 34, 35, 42
Graduates, university, 250
Grains, 466-468
Gravel, 506
Greenstone, 506
Gross Domestic Product, 795
in constant prices, 805-807, 809
and expenditure, 798
by production group, 800-802
Gross Fixed Capital Formation, 802, 803
Gross National Expenditure, 795. 809
Group Employment Liaison Scheme (GELS), 329
Group-living quarters, 127-128
GST see Goods and Services Tax (GST)
Guardianship, 139, 140

H

Hail, 10
Handicapped children, 247
Handicapped child's allowances, 211
Handicapped persons, 212-213
Harbour boards, 70
Harbours see Ports
Health
and causes of death, 177-178
Department of, 48, 166-167
environmental, 168-169
expenditure, 167-168
and hospitals, 183
Maori, 156, 158, 187
mental, 171
occupational, 170-171, 298
practitioners, 163, 205-206
research, 176-177
services structure, 162, 166
Health benefits, 200-202, 203-204
Health, Board of, 162
Health boards, area, 162
Health camps, 173
Health education, 173
Health insurance, 733-734
Health Service Personnel Commission, 162
High Court, 62-63, 64, 65-66, 266, 268-269
Higher School Certificate, 246
Hire purchase, 633
Historic places, 307
Historic reserves, 418, 420
History of New Zealand, chronology of, 25
Holidays, 386
Home appliances, 130-131
Homes, childrens, 226
Homicide, 265
Honey, 464-465
Horticulture (see also Crops), 400, 470-473
Hospital benefits, 300
Hospital boards, 162
finances, 185-186
services, 200
Hospitals, 183
beds and waiting lists, 184
geriatric, 201, 205
incomes of, 206
Hospitals—continued
patients treated, 189-191, 192-194
private, 184
psychiatric, 186-189, 201
staff, 185
Hotels, 620
Hours of work, 386
House of Representatives, 32, 33-35, 36-37
Household services, 621
Households (see also New Zealand Household Expenditure and Income Survey), 125, 127, 132
composition of, 125-126
employment status of head, 126-127
incomes of, 132-133
Housework, 621
Housing (see also Buildings, Dwellings), 535-536
community, 541
costs of, 134, 538-539
demolition, 536
of elderly persons, 540-541
loans for (see also Housing Corporation, Mortgages). 539-540, 541-542
Maori, 244, 245, 342
for Pacific Island Polynesians, 539
rental (see also Rents), 536-537
rural, 541
state services, 537
Housing Corporation, 48, 537, 539-540, 541-542
Human Rights Commission, 66
Humidity, 10
Hunting, 316
Hydro-electric power, 559-560, 561

I

IBRD (International Bank for Reconstruction and Development), 706
IDA (International Development Association), 706
IFC (International Finance Corporation), 706
IMF (International Monetary Fund), 705-706
Immigration, 115, 144, 145-148, 326-327
Immunisation, 173
Import Licensing, 656
Import Prices Index, 664-665
Imports, 641
origin of, 651-655
value by SITC, 659-661
value and volume of principal items, 661-662
Imprisonment, 274
Income tax, 749, 750-752, 779
index of, 374
rates and GST, 788-791
revenue from, 756-757
Incomes (see also Real Disposable Income Measures, Wages), 355-359
of companies, 717-720
of health practitioners, 205-206
of households, 132-133
Incomes—continued
of Maoris, 356
of Pacific Island Polynesians, 356
social security, 359
Index of Employment, 807
Index of Gross Domestic Product, 807-808
Indexes, explained, 825-826
Indexes, listed
Agricultural Producers Price Index, 442
Capital Expenditure Price Index, 677-678
Consumers Price Index, 667-671
Export Prices Index, 663-664
Farming Inputs Price Index, 442-443
Imports, 641
Index of Employment, 807
Index of Gross Domestic Product, 807-808
Prevailing Weekly Wage Rates Index, 368-371
Producers Price Index, 674-676
Real Disposable Income Index, 374
Reproduction Index, 116
Teams of Trade Index, 665
Urban Residential Property and Section Price Index, 538-539
Volume Index of External Trade 665-666
Industrial accidents, 298-299
Industrial Conciliation Service, 376
Industrial design, 515-516
Industrial Mediation Service, 376-377
Industrial relations (see also Trade unions, work stoppages), 375
in the Public Service, 44-45
Industrial Relations Council, 376
Industrial Safety 297-298, 386, 388
Industries Development Commission, 515, 644
Industry see Manufacturing industry
Infant mortality, 181-183
Inflation see Consumers Price Index
Information Authority, 59
Inland Revenue Department, 48-49
Insulation of dwellings, 557
Insurance, 723-736
accident, 296, 726-727
earthquake and war damage, 281, 730-731
fire, 283-284, 727-728, 734-736
Government Life, 48, 729-730
health, 733-734
life, 723-725, 731-733
State, 51. 730-731
Intellectually handicapped adults and children, 186-189, 247
Interest rates, 698
mortgage, 708-709
Inter-industry studies, 819-821
Internal Affairs, Department of, 49
Internal migration, 113
International Bank for Reconstruction and Development (IBRD), 706
International comparisons
abortion ratios, 196
consumer prices, 674
International comparisons—continued
education, public expenditure on, 240
infant mortality, 182
life expectancy, 122
research and development expenditure, 395
International Development Association (IDA), 706
International Finance Corporation (IFC), 706
International Monetary Fund (IMF), 705-706
International organisations, participation in, 87-88
International relations, 77
International Whaling Commission (IWC), 89
International Wool Secretariat, 453-454
Invalids' benefits, 210
Investment, 515
overseas see Overseas investment
Iron and ironsands (see also Steel), 402
Irrigation, 430-431, 439-440

J

Japan, relations with, 647-648
Job creation programmes, 338-339
Joint family homes, 536
Judges and judiciary, 61-64
Juries, 267
Justice, department of, 49
Justice, system of see Courts

K

Kermadec Islands, 2
Kindergartens, 242
Kokiri centres and units, 156

L

Laboratories, dental and medical, 165-166
Laboratory benefit, 201
Labour, Department of, 49, 297
Labour force (see also Employment, Unemployment), 325-332, 346
and Index of Gross Domestic Product, 808-809
Maoris in, 327-329
Pacific Island Polynesians in, 330
projections, 333
women in, 352-354
Labour Party, 40
Lakes, 3
Lamb see Meat and meat products
Land
agricultural, 403, 435-437
crown, 412-413
development and settlement of, 407, 414
leasehold and leases, 413-414
Maori, 21, 411-412
occupied, 435-437
Land—continued
recreational, 426-427
registration of ownership, 406-407
surveys of, 405-406
tenure of, 403, 406
transfers of, 406-409
use of, 403, 404-405, 453-454
valuation of, 410-411
Land Settlement Board, 412-414
Land tax, 754
Land transfers, 406-409
Land wars, 21
Lands and Survey, Department of, 49, 405, 415-416
Latin America, relations with, 81, 650
Law, sources of, 65
Laws see Legislation
Leasehold land and leases, 413-414
Legal aid, 267
Legal system, 61, 65-66
civil jurisdiction, 65
criminal jurisdiction, 264, 266
Legal tender, 701
Legislation. 35, 37
Lending see Loans
Libraries, 307-309
Licences and licensing
imports, 656
liquor, 635
motor vehicles, 601-603
radio and television, 311
road transport, 575
Licensing Control Commission, 635
Licensing Trusts, 636
Life insurance, 723-725, 731-733
Government Life Insurance Corporation, 48, 729-730
Life tables. 121-122
Lighthouse service, 586
Lime and limestone, 506
fertiliser, 440
Liquefied petroleum gas (LPG), 557-558
Liquid Fuels Trust Board, 558-559
Liquor see Alcohol
Liquor licensing, 635
Livestock, 444-445
cattle, 446
deer farming, 465
goat farming, 465
pigs, 463
poultry, 463, 464
sheep and sheep farming, 445
Loans, 539-540, 541-542
for farms, 710-712
fishing industry, 492
forestry, 423
housing for disabled persons, 213
housing for Maoris and Polynesians, 539
housing for service personnel, 219
mortgages, 539, 707-709, 711
Loans Accounts, 740, 745-746
Local authorities (see also Local government), 68-72
election of, 72-73
employment, 344-345
housing, 541
investment and superannuation, 223
membership of, 73
powers of, 72
roading and transport, 600-601
Local Authorities Loans Board, 68-69, 776-777
Local government, 68-71
community, 71-72
and planning, 429
reform of, 74
regional, 70-71
special purpose, 70
territorial, 69-70
Local Government Commission, 74
Local government finance, 772, 774-775
borrowing, 776-777, 778
expenditure, 775-776
income from grants, 773-774
income from rates, 772-773
Local government regions, population of, 110-111
Lockouts, 382-385
Logging see Census of Forestry and Logging
Lotteries, 315-316
funding from, 304, 314, 316

M

Maatua Whangai, 156
Machinery, manufacture of, 511
Magistrates' courts see District Courts
Mail, 607-608
Major Projects Advisory Group, 515
Manufacturing industry, 510-513
assistance to, 514-516
census of, 519-531, 534
geographical distribution of, 531-532
historical development of, 23-24
inter-industry studies, 819-821
main indicators of, 519-532
quarterly economic survey of, 533, 534
research into, 396, 532
selected production, 532
Maori Affairs, Department of, 50, 155, 156
Maori Community Officers, 158
Maori Community Services Programme, 157-158
Maori Council New Zealand, 157
Maori Economic Development Commission, 155
Maori Education Foundation, 237
Maori electorates, 40
Maori land, 21, 411-412
Maori Land Court and Maori Appellate Court, 64, 411-412
Maori language, 154, 249
Maori population (see also Maoris)
Maori population, 149-150
age distribution of, 150
birth rates of, 151
deaths and death rates of, 151-152
geographical distribution of. 153
households in, 153-154, 160
infant mortality in, 181-183
life expectancies of, 152, 153
natural increase of, 151
occupational groups in, 329
sex ratio of, 151
Maori Trustee, 716
Maori wardens, 157
Maori Women's Welfare League, 157
Maoris, 154
discrimination against, 66
education of, 244, 245, 342
employment and training of, 156
health of, 156, 158, 187
history of, 18-21
housing and household amenities of, 539
incomes of, 356
in labour force, 327-329
tribal developments among, 157
unemployment among, 328
women, 151
Mapping, 405-406
Marine pollution, 433, 587
Marital status, 137-138
Maritime parks and reserves, 419
Maritime planning, 426
Marketing of agricultural products. 449-450, 454-456, 459-462
marketing authorities, meat, wool and dairy products, 448-449, 453-454, 459
marketing authorities, poultry, wheat, potatoes, and apples and pears, 463-464, 468, 469, 472
Marriage and the law, 136-137, 139
Marriage guidance, 141
Marriages (see also Marital status), 136-137, 138
dissolution of, 139-141
separations, 140
Marsden Point oil refinery, 510
Maternal deaths, 183
Maternity benefits, 201
Maternity leave, 386-387
Meat and meat products (see also New Zealand Meat Producers Board), 446
exports, 449-450
prices, 450-452
production, 446-448
Medical benefits, 200
Medical Council, 163
Medical insurance, 733-734
Medical laboratory technologists, 165
Medical radiation technologists, 165
Medical Research Council, 176-177
Medicines, 169
Members of Parliament
listed, 37-39
salaries and allowances, 35-36
Mercantile marine pensions, 217
Merchant banks, 692
Merchant navy qualifications, 585
Mergers. 634
Metals, 503-504
gold, 22, 502-504
steel, 510
Middle East, relations with, 82, 650
Migration, external see External migration
Milk and milk products (see also Dairy products)
production, 457-458
town milk supply, 458
Minerals and mineral products (see also Mining), 495
metallic, 503-504
non-metallic, 505-507
production, 501-502
Miners' benefits, 210
Mining (see also Minerals and mineral products), 498, 500, 501
laws on, 501
and quarrying, census of, 498-500
safety and working conditions, 298, 388
Ministers of the Crown, listed 42-43
Money supply, 696-697, 699
Ministry of Agriculture and Fisheries, 46, 443
research by, 398
Ministry of Civil Defence, 280
Ministry of Consumer Affairs, 634
Ministry of Defence (see also Armed Forces), 47
Ministry of Energy, 47, 553-554
Ministry of Foreign Affairs, 48, 90
overseas posts, 90
Ministry of Transport, 52
Ministry of Women's Affairs, 52, 67
Ministry of Works and Development, 52-53
Monetary policy, 698-701
Monopolies, 634
Mortality, 120-121, 177-181, 181-183
Mortgages, 539, 707-709, 711
Housing Corporation, 48, 537, 539-540, 543-542
housing, bans for, 539-540, 541-542 Mothers
births and birth rates, 116-120
maternal deaths, 183
maternity benefits, 201
maternity leave, 386-387
Motor spirits, duty on, 575
Motor vehicle industry, 512
Motor vehicles, 556, 558
licensing, 601-603
Motorways, 600
Mountaineering, 317
Mountains, 2, 5
Multiple births, 117
Murder, 265
Museums, 249, 306
Mutton see Meat and meat products

N

Narcotics see Drugs
National Accounts, New Zealand System of (NZSNA), 795-797
National Acoustics Centre, 171
National Advisory Committee on the Employment of Women, 343
National anthems, 74-75
National Archives, 306-307
National Art Gallery, 306
National Disposable Income, 798-799, 808
National Drug Intelligence Bureau, 278
National Film Library, 249
National Health Institute, 176
National Health Statistics Centre, 177
National Housing Commission, 535-536
National Library of New Zealand, 307-308
National Licensing Poll, 41
National Museum, 306
National Parks (see also Forest parks,
Reserves, land), 416-417, 420
National Party, 40
National Provident Fund, 222-224
National Radiation Laboratory, 171
National Research Advisory Council, 392
National Roads Board, 597-598
National Roads Fund, 599, 739, 748, 758
National Superannuation, 208
National Trust, 420
National Water and Soil Conservation Authority, 429, 432
Natural gas, industrial development of, 510, 513, 553
Natural increase, of population, 105-106
Nature Conservation Council, 428-429
Nature reserves, 418-419, 420
Navy, Royal New Zealand, 101
New Zealand Apple and Pear Marketing Board, 472
New Zealand Army, 102
New Zealand, Australia -, Closer Economic Relations Trade Agreement (CER), 79, 646, 647
New Zealand Bibliographic Network, 308
New Zealand Certificate, 258
New Zealand Council for Educational Research, 237
New Zealand Council for Recreation and Sport, 314
New Zealand Dairy Board, 459
New Zealand Democratic Party (Social Credit Party), 40
New Zealand Employers Federation, 380
New Zealand Energy Research and Development Committee, 558
New Zealand Export-Import Corporation, 643
New Zealand Film Commission, 305
New Zealand Fire Service, 281-283
New Zealand Fishing Industry Board, 491-492
New Zealand Forest Service, 48, 400, 421, 422-423, 474, 475
New Zealand government stock and securities, 699-700
New Zealand Historic Places Trust, 307
New Zealand Household Expenditure and Income Survey, 132-135
New Zealand Institute of Economic Research, 402
New Zealand Land Resources Inventory, 431-432
New Zealand Listener, 312
New Zealand Lottery Board, 305, 314
New Zealand Maori Council, 157
New Zealand Meat Producers Board, 448-449, 450
New Zealand Milk Board, 459
New Zealand Mountain Safety Council, 314
New Zealand Party, 40
New Zealand Planning Council, 391
New Zealand Police, 50, 277-279
New Zealand Ports Authority, 576
New Zealand Potato Board, 469
New Zealand Poultry Board, 463-464
New Zealand Railways Corporation, 50, 594
revenue and expenditure, 596
New Zealand Symphony Orchestra, 312
New Zealand System of National Accounts (NZSNA), 795-797
New Zealand Trades Certification Board, 260
New Zealand Technical Correspondence Institute, 260
New Zealand Time Service, 16
New Zealand Walkway Commission, 420-421
New Zealand Water Safety Council, 314
Mew Zealand Wars, 21
New Zealand Wheat Board, 468
New Zealand Wool Board, 453-454
New Zealand Workers Educational Association (WEA), 263
New Zealand's overseas posts, 90
Newspapers and magazines, 313
Niue, relations with, 77-78
Noise, 171
Nominal Weekly Wage Rates Index, 365-368
North America, trade relations with, 648
Nurses, and nursing services, 163, 167, 201
NZSNA (New Zealand System of National Accounts), 795-797

O

Occupational groups, 346, 349-352
emigration and immigration by, 326-327 of Maoris, 329
of Pacific Island Polynesians, 330
self-employed, 347, 355-356
teachers, 234
Occupational health, 170-171, 298
Occupational safety, 297-298, 386, 388 in agriculture, 300, 387
in factories, 386
Occupational therapists, 163
Occupied land, 435-437
OECD (Organisation for Economic Co-operation and Development), 89
Official Development Assistance (ODA), 82-86
Official information, 58-59
Oil see Petroleum
Oils, 510
Old people (see also Age distribution of population), 540-541
homes and hospitals for, 201, 205
Ombudsmen, 59-60
Optometrists and opticians, 164
Orchards, 436, 470-471
Organisation for Economic Co-operation and Development (OECD), 89
Orphans, benefits, 209
Otago Business Development Centre, 514
Overseas aid, 82-86
Overseas balance of payments, 810, 816
Overseas debt, 765-767
Overseas exchange transactions, 699, 704-705, 812-813
Overseas investment
in New Zealand, 513, 816-818
by New Zealanders, 818-819
Overseas reserves, 703-704, 814
Overseas students, 254
Overseas trade see External trade

P

Pacific countries, relations with, 77, 649
Pacific Forum Line, 79, 577
Pacific Island Polynesian population, 158-159
dwellings, 159-160
geographical distribution, 159
households, 160
Pacific Island Polynesians
discrimination against, 66
education of, 342
in the labour force, 330
unemployed, 334
Pacific Islands Industrial Development Scheme (PUDS), 515
Pacific Islands Polynesian Education Foundation, 238
Paper, 481-482, 483, 486
Parents, solo, 125-126
Parks (see also Reserves, land)
forest, 421
national, 416-417, 420
Parliament, 32, 33-35, 36-37
Parole system, 277
Passports, 148
Patients, hospital, 183
Pay Research Unit, 51
PAYE tax, 750
Penal system, 272-274
corrective training, 274-275
fines, 273
imprisonment, 274
parole system, 277
prisons and prisoners, 274-277
probation, 273
Pensions, 199, 206-209, 215, 219
Other Benefits see Benefits
Superannuation, 208, 219-222
People living alone, 127
PEP (Project Employment Programme), 338
Perinatal mortality, 181-183
Periodic detention, 273
Permits, building and construction, 542-546
Personal services, 621
Pest control, 423
Petroleum, 500-501
consumption, 552, 555, 556
liquefied petroleum gas (LPG), 557-558
oil stockholding, 552
prospecting and drilling, 500
Pharmaceutical benefits, 200
Physiotherapists, 163
Physiotherapy benefits, 201
Pigments see Meat and meat products
Pigs, 463
Planning, 391-392, 424-426
district, 425-426
energy, 553-554, 559
New Zealand Planning Council, 391
regional, 424-425
Planning Tribunal, 64
Plants and animals, 12-16
Plastics, 512
Play centres, 242
Pharmacists, 165
Plumbers, gasfitters and drainlayers, 164
Podiatrists, 164
Poisons, 170
Police, New Zealand, 50, 277-279
Political parties, 23, 34, 40
Pollution, air and water, 432-433
Polynesians see Pacific Island Polynesians
Population (see also Census of Population and
Dwellings, results of), 105, 107
age distribution, 107-108, 150, 158
birthplaces, 143
geographical distribution of, 108-113
ethnic groups in, 143
increase of, 105-106
of local government regions, 110-111
Maori see Maori population
Marital status of, 137-138
Polynesian see Pacific Island Polynesians
projections of, 123-124
Population—continued
religious professions of, 142
rural, 112
sex ratio in, 107
urban, 110, 112
Ports, 579-581
Post Office, 50, 607
mail, 607-608
revenue and expenditure, 612-613
telephone and telegraph services, 609-612
Post Office Savings Bank, 686-687
Poultry, and eggs, 463, 464
Power boards, electric, 70, 563
Pre-school education and child care, 226, 242
Te Kohanga Reo programme, 156, 242
Prevailing Weekly Wage Rates Index, 368-371
Price control, 634, 667
Price indexes, 667-679
Capital Expenditure Price Index, 677-678
Consumers Price Index, 667-671
Export Prices Index, 663-664
External Trade Index, revision of, 662-663
Import Prices Index, 664-665
Producers Price Index, 674-676
Urban Residential Property and Section Price Index, 538-539
Prices, 667
control of, 634, 667
effect of GST on, 782, 787
farm products, 450-452, 456-457, 462
housing, 538
international comparison, 674
retail trade, 672-673
Primary schools, 242-244
Prime Minister's Department, 50
Prisons and prisoners, 274-277
Private hospitals, 184
Private savings banks, 688
Private schools, 237
Privy Council, Judicial Committee of, 62
Probation, 273
Producers Price Index, 674-676
Production accounts, 798, 800, 804, 805
Profits, of companies, 719-720
Project Employment Programme (PEP), 338
Psychiatric hospitals, 186-189, 201
Psychological services and psychologists, 163, 276
Public Accounts, 739, 748, 749
Public debt, 765-767
interest on, 767
maturity of, 768
transactions, 769-771
Public holidays, 386
Public lands (see also Reserves, land), 412-416
crown land, 412-413
National Parks, 416-417, 420
Queen Elizabeth Il National Trust, 420
State forests, 48, 400, 421, 422-423, 474, 475
Walkways, 318, 420-421
Public Service (see also Government departments) 43, 44, 45, 345
Public Trust Office, 50, 715-716
Public works 22, 74b-747
Publishing, 309-310
Pulp and paper, 481-482, 483, 486

Q

Quangos, 53-58
Quarries and quarrying (see also Minerals and mineral products), 498-500
Quarterly Economic Survey of Manufacturing, 533
Quarterly Survey of Retail Trade, 622
Queen Elizabeth II Arts Council, 304
Queen Elizabeth II National Trust, 420

R

Race relations and racial discrimination (see also Ethnic groups in population), 66
Racing, 314-315, 762
Radiation, 171
Radio, 311-312, 612
Raffles. 315-316
Railways, 594
New Zealand Railways Corporation, 50, 594
Rainfall, 9-10, 11
Raoul Island, 2
Rape and sexual offences, 265
Rapu Mahi/Hanga Mahi programme, 156
Rates, local authority, 772-773
Real Disposable Income Index, 374
Real Disposable Income Measures, 372-374
Real Wage Rates Indexes 371-372
Recreation and sport, 314-318
Recreation reserves, 419-420
Recycling, 513-514
Refinery, petroleum, 510
Refugees, 145-146
Regional development, 476, 514
Regional government, 70-71
Regional planning, 424-425
Regional water boards, 429
Rehabilitation, 175
after accidents, 285
of war veterans, 219
Religious professions of population, 142
Rents, 536-537.
Representation Commission, 40
Reproduction Index, 116
Research, scientific, 392, 394-398, 401, 558
Department of Scientific and Industrial Research, 50-51, 395, 396-398
National Research Advisory Council, 392
Reserve Accounts, farming industry, 451, 453, 462
Reserve Bank of New Zealand, 680-682
Reserves, currency, 703-704, 814
Reserves, land, 418-420
Resettlement unit, refugee, 146
Rest homes, 201, 205
Restaurants, 620
Retail trade, 622-624
Credit, 632, 698
Hire purchase, 633
Shops, 387
Rivers, 3, 432
Roads, 597
National Roads Fund, 599, 739, 748, 758 safety, 604-605
transport, 597
Rock aggregate, 506
Ross Dependency, 97
Royal commissions, 41-42
Royal New Zealand Air Force, 103
Royal New Zealand Navy, 101
Royal New Zealand Navy Volunteer Reserve, 102
Rural Banking and Finance Corporation, 50, 710-712
Rural Education Activities Programmes (REAPS), 247-248
Rural Electricity Reticulation Council, 563-564
Rural population, 112

S

Safety, 297-298
fire, 282
on mountains, 314
occupational, 297-298, 386, 388
road, 295-296, 604-605
water, 314
Salaries see Wages
Salt, 506
Sand, 504, 507
Sand dunes, 421
Sanitary services, 618-619
Satellites, 611
Savings banks, 686-689
Post Office Savings Bank, 686-687
private, 688
trustee, 688-689
Scientific reserves, 418, 420
Scenic reserves, 418, 420
School Certificate, 245-246
School Dental Service, 175
Schools
broadcasts to, 249
correspondence, 248
primary, 242-244
private, 237
publications for, 249
pupils of, numbers enrolled, 233-234
secondary, 244-245
transport to, 248
Science and scientific services (see also Research, scientific), 396
Scientific and Industrial Research, Department of, 50-51, 395, 396-398
SCOPE (Small Co-operative Enterprises Scheme), 339
Search and rescue operations, 99, 278
Secondary schools, 244-245
Securities Commission, 717-718
Security Intelligence Service (SIS), 104
Seeds, 469-470
Seismic activity 4, 6-8
Seismological research, 8
Self-employed, 347, 355-356
Separation, marital, 140
Services, Census of, 624-632
Sheep and sheep farming, 445
Sheepmeats see Meat and meat products
Shellfish, 489-490
Shipping, 298, 388, 576
Cook Strait ferries 595
Shipping Corporation of New Zealand, 578
Ships, 578, 585-586, 587
Fishing vessels, 490
Shipwrecks, 586
Shoes, 513
Shops, 387
Sickness benefits, 210-211
SITC (Standard International Trade Classification), 659-661
Sixth Form Certificate, 246
Skiing, 316
Skim-milk Powder see Dairy products.
Small business (see also Companies), 514, 690
Small Co-operative Enterprises Scheme (SCOPE), 339
Smelters, aluminium, 510
SMPS (Supplementary Minimum Prices Scheme), 452
Snow, 10
Social Advisory Council, 392, 401
Social Credit Party (New Zealand Democratic Party), 40
Social sciences, 401
Social welfare
benefits see Benefits
Department of 51, 198
system, 197
Social work, 225-226
Soil erosion, 421
Soil types, 404-405
Solar energy, 557
Solo parents, 125-126
South Pacific countries, relations with, 77, 649
South Pacific Bureau for Economic Co-operation (SPEC), 78, 79
South Pacific Commission, 78, 79
South Pacific Forum, 78, 577, 649
South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA), 78, 646, 649
Soviet Union, relations with, 81
Special education, 247
Special-purpose authorities, 70
Special work, 336-338
Sports, 314-318
Stamp duty, 755
Standard international Trade Classification (SITC), 659-661
Standard of living, international indicators, 135-136
Standards Association of New Zealand, 516
Standards Council, 516
Standing Orders of the House of Representatives, 34
State forests, 48, 400, 421, 422-423, 474, 475
State Insurance Office, 51, 730-731
State Services, 43-45
State Services Commission, 44-45
Statistical areas, 109
Statistical divisions, 112
Statistics, Department of see Department of Statistics
Statute of Westminster, 25
Statutory bodies, boards, and committees, listed, 53-58
Steel, 510
Stillbirths, 119-120, 181
Stock and station agents, 690-691
Stock change, by production group, 803
Storage, 571-574
Strikes, 382-385
Students
disabled, 247
Maori, 244, 245
overseas, 254
part-time, 254, 260
at primary schools, 243
projected numbers of, 235
numbers, 233-234
at teachers colleges, 257
in technical education 259-260
university 251-254
Sugar, 513, 656
Sunshine, 10, 11
Superannuation, 208, 219-222
Government Superannuation Fund. 219-222, 736-738
National Provident Fund, 222-224
National Superannuation, 208
Supplementary Minimum Prices Scheme (SMPS), 452
Supreme Court see High Court
Surveys, land, 405-406

T

TAB (Totalisator Agency Board), 314
Tariff, customs, 644-645, 757
Tax reform and GST, 779-781
calendar of GST-related measures, 792-793
Taxation, Public Account, 742
Taxation Review Authorities, 756
Taxation, system of (see also Goods and Services Tax (GST)), 749
Taxes
on companies, 753-754, 762-765
estate duty, 754, 755, 758-761
excise duties, 645, 757
fringe benefit tax, 750
gift duty, 755
goods and services see Goods and Services Tax (GST)
income see Income tax
land tax, 754
PAYE tax, 750
stamp duty, 755
on visitors and non-residents, 752-753
Te Kohanga Reo programme, 156, 242
Teachers, 234
Teachers colleges, 256-257
Technical education, 258
Technical institutes, 236, 258, 259
Technology (see also Research, scientific), 690
Telecommunications, 610-612
Telephone and telegraph services, 609-612
Television, 311, 312
licences, 311
Telex, 610
Temperatures, air, 10, 11-12
Tenancy, 536-537
Terms of Trade Index, 665
Territorial authorities
boroughs, 69
county councils, 69
district councils, 69-70
finances, 775-776
Territories, New Zealand, 96
Tertiary Study Grants, 251
Textiles (see also Wool), 512-513
Theft, 265
Thermal activity, 4, 6-8
Thermal generation of electricity, 560-561
Thunderstorms, 10
Timber and timber products, 479
exports of, 481, 484, 485
imports of, 485
production of, 480-481, 482-483
Timber Preservation Authority, 484
Time, 16
Tokelau, 78, 96-97
Topdressing, 440, 594
Tornadoes, 10
Totalisator. Agency Board (TAB), 314
Tourism, 318-323
Tourist and Publicity Department, 51-52, 323
Town milk supply, 458
Trade
domestic see Domestic trade
external see External trade
terms of, 665
Trade agreements, 642, 645-646
Trade and Industry, Department of, 52
and industrial development, 513, 514, 515
and overseas trade, 642, 656
Trade practices, 634
Trade representatives overseas, 90-93, 642
Trade routes, maritime, 582-583
Trade training, 340-341
apprentices, 340-342
technical education, 258
Trades Certification Board, 260
Vocational Training Council, 339-340
Trade unions, 377-380
Trading banks, 682-686
Traffic
accidents, 293-295
offences, 271-272, 605-606
safety, 604-605
Training, vocational, 260-261, 339-340
Agricultural Training Council, 340
Vocational Training Council, 339-340
Transport
air, 587
Census of Transport, Storage and Communication, 571-574
household expenditure on, 131
licensing, 575
Ministry of, 52
rail, 594
road, 597
sea, 576
to work, 603
Treasury, The, 52
Treaties
defence agreements, 98
trade agreements, 642, 645-646
Treaty of Waitangi, 19, 32, 411
Trial Courts, 266, 268-269
Trustee savings banks, 688-689
Tu Tangata programme, 155

U

Unemployment (see also Labour force), 333-337
benefits paid for, 210, 335
of Maoris, 328
of Pacific Island Polynesians, 334
UNESCO (United Nations Education, Scientific and Cultural Organisation), 88
Unions, employers, 380-381
Unions, workers, 377-380
United Councils, 71
United Kingdom, relations with, 81, 648
United Nations Education, Scientific and Cultural Organisation (UNESCO), 88
United Nations, New Zealand membership of, 87
United States of America, relations with, 80, 648
Universities, 250
extension programme, 262
graduates from, 255
scholarships and bursaries to, 246, 251
staff in, 255-256
students in, 251-254
University Entrance examination, 246
Urban areas, (see also Cities and city councils), 109
population of, 110, 112
transport in, 607
Urban Residential Property and Section Price Index, 538-539

V

Valuation Department, 52, 410
Valuation of land, 410-411
Value added tax see Goods and Services Tax (GST)
Valuers, registration of, 411
Veal see Meat and meat products
Vegetables, 469
Vegetation and wildlife, 12-16
Violent crime, 265
Vital statistics (see also Births and birth rates, Death and death rates, Marriage), 116, 120
Vocational guidance, 337
Vocational Training Council, 339-340
Womens Advisory Committee of, 343-344
Volcanoes, 4, 6, 396
Volume Index of External Trade, 665-666
Voting see Elections

W

Wages, 360-365, 372, 375
Nominal Weekly Wage Rates Index, 365-368
Prevailing Weekly Wage Rates Index, 368-371
Real Disposable Income Measures, 372-374
Real Wage Rates Indexes, 371-372
Wairoa (community health programmes), 156
Waitangi, Treaty of, 19, 32, 411
Waitangi Tribunal, 154
Walkways, 318, 420-421
Wananga (teaching and learning), 156
War bursaries, 217
War pensions and allowances, 215-218
Water pollution, 432, 433
Water supply, 430
fluoridation of, 175
irrigation, 430-431, 439-440
Regional water boards, 429
Waterfront industry, 389
WEA (New Zealand Workers Educational Association), 263
Weights and measures, 823
Welfare organisations, 205
Wholesale trade, 617-618
Widows' benefits, 208
Wildlife and vegetation, 12-16
Wildlife reserves, 419
Winds, 9
Wine and winemaking, 471-472
Women, 67
conviction and imprisonment, 268, 272, 274, 275
discrimination against, 66
in the labour force, 352-354
Maori, 151
Ministry of Women's Affairs, 52, 67
as mothers see Mothers
ratio in population, 107
vocational training of, 343-344
Women's Appointment File, 67
Wood see Timber and timber products
Wool, 452
exports, 454-456
International Wool Secretariat, 453-454
New Zealand Wool Board, 453-454
prices, 456-457
production, 452
Wool Research Organisation, 454
Wool Testing Authority, 454
Work stoppages, 382-385
Working conditions (see also Occupational health). 385-389
Workings hours, 386
Working life expectancies, 354-355
Works and Development, Ministry of 52-53
World Bank, 706
World Health Organisation. 177

X

X-ray services, 201

Y

Youth, programmes, 314