New Zealand Official Yearbook 94

Te Pukapuka Houanga Whaimana o Aotearoa

Cover

Nigel Brown. Days in Suburbia. 1978.

Acrylic on hardboard, 1990 x 1185 mm.

Photographer: Karen Angus
Courtesy Learning Media

New Zealand Official Yearbook
Cat no 01.001
ISSN 0078-0170

Recommended retail price: $59.95 (incl GST)

Published by Statistics New Zealand.

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Statistics New Zealand has an information desk at every office. In answer to a letter, visit, or telephone call, information officers can provide statistical information, or tell you more about the department's other services, including access to statistics on the INFOS computer database.

The New Zealand coat of arms

New Zealand has had its own coat of arms since 1911. Prior to that the United Kingdom coat of arms (featuring a lion and a unicorn on either side of a shield and crown) was used. This design still adorns the top of the pediment on the Old Government Buildings in Wellington, which were built in 1875 to house the colony's public service.

One of the few specific changes to flow on from the granting of dominion status in 1907, was the right for New Zealand to have its own coat of arms. The design was approved by royal warrant on 26 August 1911. It appeared in the 1912 Yearbook in colour, along with a written description in full heraldic jargon. The coat of arms also appeared in the 1990 sesquicentennial edition of the Yearbook.

The coat of arms was revised in 1956. This time in the wake of further constitutional changes which saw the country become the ‘Realm of New Zealand’ instead of ‘Dominion’. Accordingly, the British lion holding aloft the Union Jack was replaced by St Edward's Crown, which had been worn by Queen Elizabeth II at her coronation.

At that same time the dress of the figures at the side of the shield was revamped, some Victorian-looking scroll work at the base of the design was replaced by two ferns, and the motto ‘onward’ was replaced by ‘New Zealand’. The new coat of arms appeared in full colour at the beginning of the 1963 and subsequent Yearbooks, and is reproduced below.


Table of Contents

List of Tables

Preface

This 97th edition of the New Zealand Official Yearbook focusses on New Zealanders and the International Year of the Family.

One of the decisions taken for the International Year of the Family in New Zealand is the establishment of an information programme to enable people to discover the many services available to families. An integral part of such an education agenda is the supply of knowledge. As a source for public information, the Yearbook is in an enviable position—a comprehensive reference work, furnishing not only primary data, but providing an essential guide to the workings of the governmental, private and voluntary sectors. As a series, the yearbooks have recorded a century of changes in New Zealand's expanding society, providing a reliable and authoritative chronicle on ourselves as a nation. Indeed, Statistics New Zealand itself is in a unique position to provide the raw material for discussion, being able to draw on relevant data from a number of regular surveys and the five-yearly Census of Population and Dwellings.

It is generally accepted that there is no one family form that can be held up as the ideal to be imitated or imposed. Difficulties do arise when many institutions are still structured around traditional assumptions about parenting and family life. Such occurrences highlight the need for better understanding and consideration between governments, businesses, schools, communities and organisations with the worlds of ‘family’.

Public policy can reinforce or undermine the family, and so it is important that in family-oriented spheres, such as taxation, social welfare, health and child development, and in youth, ageing and women's issues, we have a base of facts and informed understanding from which to proceed. Official statistics fulfil that role, but they must keep pace with the changes and demands of a developing society, and be regularly revised and redesigned to respond to demands. New Zealand's statistics on the family need further development to report adequately on the dynamics of family change and the emerging forms of households in our society. Much public policy reflects a vision or expectation of what is the family. The less that vision is founded on factual study and reporting, the more there will be diversity and inconsistency in describing and reflecting the family in the law, public policy and administration and social expectations.

As always, I would like to express gratitude to the Yearbook's numerous contributors for their time and effort, and the goodwill extended in supplying the information. Finally, I would like to thank all those staff at Statistics New Zealand and GP Print Limited closely involved with the production of the 1994 Yearbook.

L W Cook
Government Statistician

April 1994

Acknowledgements

The 1994 Yearbook was produced by the Publishing and Community Information Division of Statistics New Zealand, with the assistance of many individuals and organisations—these are listed in the ‘Contributors’ section at the end of each chapter, but the department wishes to record its thanks here.

Editor: Jane Evans.

Editorial assistant: Patrick Hudson.

Maps and diagrams: Peter McGrath.

Photograph editor: Virginia Callanan.

Proofreading: Jane Hunt; Myra Page; Ganga Pillai.

Photographs

Individual photographs are credited separately, usually at the bottom right-hand corner.

The editors record their thanks to the many individuals and institutions who made photographs available.

How to use the 1994 Yearbook

As a new reader of the New Zealand Official Yearbook you may be surprised at the range of information within its pages. But, like any other reference work, the Yearbook is only as effective as its information is accessible. The following notes are therefore included to familiarise you with the book.

What is the Yearbook?

As noted the aims and functions of the New Zealand Official Yearbook have changed with the times. Today, it is published with two main purposes in mind. Firstly, it is a compendium of facts and figures on New Zealand. Secondly, it is an annual describing major changes in New Zealand's administrative framework for the year preceding publication.

The Yearbook does not usually contain the latest or most detailed statistics on particular topics, but it does tell its readers where the latest or more detailed figures or information are available.

Finding your way

There are two likely ways you will look for information.

If your question is general, for example ‘How is New Zealand governed?’, then you will probably refer firstly to the table of contents (beginning overleaf), which lists not only chapter headings but major sections within chapters. In approaching the book this way it is worth bearing in mind that the 27 chapters follow a ‘logical’ progression. The first few chapters describe the physical setting as well as New Zealand's system of government and international relations. A description of its people comes next, followed by social framework and institutions. Chapters 13-22 describe New Zealand's work-force and industries, while the final chapters of the book discuss the nation in broad economic terms.

Throughout the book cross references are made, usually by reference to numbered sections within chapters (which appear at the head of each right-hand page).

If, on the other hand, your question is more specific, for example ‘How many people drown while boating each year?’, then the book is thoroughly indexed, and a brief note on the system used can be found at the beginning of the index.

Deadline for statistics

Because the Yearbook covers such a broad range of subjects, few of its statistics are being published for the first time. Many statistics from government departments and other organisations have been published late in the year preceding publication.

For this edition the figures published are the latest available at 1 December 1993.

Tables

If the source of a particular table is other than Statistics New Zealand, then it is noted at the base of the table. Tables are usually for the year ended 31 March, or for the calendar year. Most tables indicate the months in which the years end, and where a single year is indicated and no month is mentioned the figures can be assumed to be for the calendar year. Where two years are given together, eg, 1989-90, and no month is mentioned, it can be assumed the figures are for the year ended 31 March.

The following symbols are used in all the tables:

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

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

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

Chapter 1. Geography

Seismograph reading from Wellington Observatory.

1.1 Physical features

New Zealand lies in the south-west Pacific Ocean and consists of two main, and a number of smaller, islands whose combined area of 270,500 square kilometres is similar to the size of Japan or the British Isles.

The main North and South Islands are separated by Cook Strait, which at its narrowest point is 20 kilometres wide. They lie on an axis running from north-east to south-west, except for the low-lying Northland peninsula. The administrative boundaries of New Zealand extend from 33° to 53° south latitude, and from 162° east to 173° west longitude. In addition to the main and nearby islands, New Zealand also includes the following small inhabited outlying islands: the Chatham Islands, 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 3.

Table 1.1. LAND AREA OF NEW ZEALAND*

Land areaSize

* These figures were current at 1 December 1989. These areas may be adjusted as more precise boundary definitions are made.

Includes islands in territorial local authorities.

Excluding islands in territorial local authorities.

Source: Department of Survey and Land Information.

 sq km
North Island†115,777
South Island†151,215
Offshore islands‡833
Stewart Island1,746
Chatham Islands963
         Total270 534

New Zealand is more than 1,600 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 many natural harbours. The country is also very mountainous, with less than a quarter of the land less than 200 metres above sea level. In the North Island the main ranges run generally north-east to south-west, parallel to the coast, from East Cape to Cook Strait, with further ranges and four volcanic peaks to the north-west. The South Island is much more mountainous than the North Island. A massive mountain chain, the Southern Alps, runs almost the length of the island. There are many outlying ranges to the Southern Alps in the north, and the south-west of the South Island. There are at least 223 named peaks higher than 2,300 metres. There are also 360 glaciers in the Southern Alps. The largest are, on the east, the Tasman (length 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 peakElevation

* Since 1986 both the Maori and European names of this mountain have had official recognition.

Peaks over 3,000 metres.

Source: Department of Survey and Land Information.

 metres
North Island— 
        Ruapehu2,797
        Taranaki or Egmont*2,518
        Ngauruhoe2,290
        Tongariro1,968
South Island†—
Southern Alps
        Cook3,754
        Tasman3,497
        Dampier3,440
        Silberhorn3,279
        Lendenfeldt3,201
Hicks (St David's Dome)3,183
Torres3,163
Teichelmann3,160
Sefton3,157
Malte Brun3,155
Haast3,138
Elie de Beaumont3,117
Douglas3,085
La Perouse3,079
Heidinger3,066
Minarets3,055
Aspiring3,030
Glacier Peak3,007

New Zealand's rivers are mainly swift and difficult to navigate. They are important as sources of hydro-electric power and artificial lakes have been created as part of major hydroelectric schemes.

Table 1.3. PRINCIPAL RIVERS*

RiverLength

*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 Survey and Land Information.

 km
North Island— 
Flowing into the Pacific Ocean 
        Rangitaiki193
        Waihou175
        Mohaka172
        Ngaruroro154
Flowing into the Tasman Sea 
        Waikato425
        Wanganui290
        Rangitikei241
        Manawatu182
        Whangaehu161
        Mokau158
South Island—
Flowing into Cook Strait 
        Wairau169
Flowing into the Pacific Ocean 
        Clutha322
        Taieri288
        Clarence209
        Waitaki209
        Waiau169
        Waimakariri161
Flowing into Foveaux Strait 
        Mataura240
        Waiau217
        Oreti203
Flowing into the Tasman Sea 
        Buller177

Table 1.4. PRINCIPAL LAKES*

LakeArea

*Over 20 square kilometres in area.

Source: Department of Survey and Land Information.

 sq. km
North Island— 
        Taupo606
        Rotorua80
        Wairarapa80
        Waikaremoana54
        Tarawera36
        Rotoiti34
South Island— 
        Te Anau344
        Wakatipu293
        Wanaka193
        Ellesmere181
        Pukaki169
        Manapouri142
        Hawea141
        Tekapo88
        Benmore (artificial)75
        Hauroko71
        Ohau61
        Poteriteri47
        Brunner39
        Coleridge36
        Monowai31
        Aviemore (artificial)29
        Dunstan (artificial)27
        Rotoroa23
        Mahinerangi (artificial)21

1.2 Geology

New Zealand is in an area of the world characterised by active volcanoes and frequent earthquakes. The ‘ring of fire’, as this area is known, forms a belt that surrounds the Pacific Ocean and is the surface expression of a series of boundaries between the plates that make up the earth's crust.

Dunelands, Te Paki Reserve.

The boundary between the Indo-Australian plate and the Pacific plate runs through New Zealand, and the processes from their collisions have had a profound effect on New Zealand's size, shape and geology.

Rock types

The oldest rocks in New Zealand are found in Nelson, Westland and Fiordland. They have been dated back to the Paleozoic era about 570 million years ago.

Almost three-quarters of New Zealand is covered by sedimentary rocks, created by the interplay of the earth movement and erosion. The most common forms of sedimentary rocks in New Zealand are sandstone, mudstone, greywacke, conglomerate and limestone. As well as the sedimentary rocks of various ages, New Zealand incorporates in its complex structure metamorphic rocks (schist, gneiss and marble), and intrusive igneous rocks (granite, gabbro, diorite and serpentine). Volcanic rocks (basalt, andesite, rhyolite and ignimbrite), are the products of the many volcanic eruptions that have characterised New Zealand's geological history.

Landscape

Apparent in the New Zealand landscape today is the evidence of episodes of intense mountain building of between six million and one million years ago. During this period the mountain chains were pushed up and there was movement and displacement of the earth's crust along faults. Due to this activity well-preserved tilted fault blocks bounded by fault scarps (steep faces hundreds or even thousands of metres high) are visible in the landscape of some regions. Fault movements continue to the present day and have accompanied several major earthquakes of the past century.

Erosion has transformed the landscape during this time, carving detailed patterns of peaks, ridges, valleys and gorges. The deposition of debris has built up alluvial plains, shingle fans and other construction forms. At the coast, waves have eaten back the headlands and built beaches, spits and bars. Glaciers carved the fiords of Fiordland and the valleys occupied by most of the South Island lakes. Sea-level changes accompanied the formation, and later melting, of global glacial ice. These changes affected the erosion and deposition of the rivers and were responsible for the formation of many prominent river terraces.

Volcanic activity over the past few million years has played an important part in shaping the landscape. The largest volcanic outpourings of late geological times were in the region between Tongariro National Park and the Bay of Plenty coast. The most recognisable volcanoes in New Zealand now occur in the North Island, where a number are still active. They include Ruapehu, Tongariro, Ngaruahoe, White Island and Mount Tarawera. Others such as Mount Taranaki (or Egmont), and Rangitoto may be considered dormant at present although they are still regarded as significant hazards.

Earthquakes

Compared with some other countries lying in the almost continuous belt of earthquake activity around the rim of the Pacific—such as Japan, Chile and the Philippines—the level of seismic activity in New Zealand is moderate, although earthquakes are common. A shock of Richter magnitude 6 or above occurs on 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.

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

Shallow earthquakes, which are the most numerous, originate within the earth's crust, which in New Zealand has an average thickness of some 35 kilometres. These shocks are responsible for almost all damage to property, and are widely scattered throughout the country.

The most important system of deep shocks in New Zealand lies in a well-defined zone beneath the Main Seismic Region, stretching from the Bay of Plenty to Nelson and Marlborough. The maximum depth of occurrence is about 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.

In geophysically disturbed regions (those with both volcanic and earthquake activity), large earthquakes are rare, although small earthquakes usually accompany volcanic eruptions. Regions of active volcanism are also subject to periodic outbreaks of small earthquakes, very numerous and all of similar magnitude. These are known as ‘earthquake swarms’ and although the number of shocks may cause alarm, it is unusual for even minor damage to result.

Mataikana, Wairarapa Coast.

Earthquakes 1993. The largest earthquake in New Zealand in 25 years occurred in Fiordland on 10 August. It had a magnitude of 7.1, was located just offshore near Doubtful Sound, and was 20 km deep. The last earthquake to reach this magnitude in New Zealand was the Inangahua shock in May 1968.

Fiordland is a very active part of the country, where the Pacific Plate overrides the Australian Plate, the latter plunging very steeply in a south-easterly direction. This configuration is reversed in the North Island, where it is the Pacific Plate that plunges beneath the Australian Plate, towards the north-west.

The 10 August earthquake was felt over most of the South Island, most strongly in Te Anau and Manapouri. Being in such a sparsely populated area, it caused little damage, although there were a number of landslides in the epicentral area. Reports from Doubtful Sound indicate a severity of shaking sufficient to cause minor structural damage. The nearest town of any size was Te Anau, 73 km away, and effects there were not severe.

The earthquake was followed by many thousands of after shocks. Portable seismographs which were installed to record these in detail by augmenting the permanent network have yielded a wealth of data which will enable the physical process of earthquake occurrence in that part of the country to be analysed in detail.

The same evening there was an earthquake near Gisborne which did considerably more damage. It was of magnitude 6-4 and released less than 10 percent of the energy in the Fiordland shock. Its effects were also tempered by the fact that it occurred at a depth of about 70 km. Nevertheless, there was considerable minor damage in the Gisborne area, particularly in Ormond which was close to the epicentre. Portable seismographs were installed to record the aftershocks, which were relatively few because of the depth of the event. It is a well-established fact that deep earthquakes do not have large sequences of aftershocks.

One other earthquake reached magnitude 6 during the year: at Tikokino in southern Hawke's Bay on 11 April (magnitude 6-1, depth 35 km). The severity of shaking near the epicentre was similar to that in Gisborne, in this case sufficient to bring down several chimneys. This earthquake occurred just north of the area near Dannevirke which has been quite active in recent years (especially 1990) but seems not to be closely related to that sequence. The East Coast of the North Island is another very active area.

On 10 May an earthquake of magnitude 5.3 occurred near Otira. It was felt at modest intensities from Westport to Christchurch. A sequence of moderate earthquakes occurred midway between Christchurch and Kaikoura at the beginning of September. There was one of magnitude 5.0 on 2 September, one of 5.2 on 3 September, and many smaller shocks. They were felt quite sharply in Cheviot and the surrounding towns. This area is known for the magnitude 7.0 damaging shock in 1901.

Earthquakes near the Chatham Islands are rare, but one of magnitude 4.5 occurred there on 31 March. It was felt throughout the islands, dislodging some pictures and causing minor superficial damage.

Deep earthquakes are more prolific in New Zealand than shallow ones, and 1993 was no exception. The western Bay of Plenty usually has a number between 200 and 300 km depth, and this year there were four exceeding magnitude 5.5: on 3 January (5.7), 16 March (5.8), 3 August (5.8) and 1 October (5.6). All were felt in Tauranga and the surrounding area. A number of other deep earthquakes exceeded magnitude 5.5 elsewhere in the deep earthquake zone that underlies the North Island. Southern Taranaki residents felt magnitude 5.7 shock on 19 March; it was centred 182 km deep beneath Waverley. But as is usual with deep earthquakes, none of these caused any damage due to the depth.

1.3 Climate

New Zealand is a long, narrow, mountainous country surrounded by a large expanse of ocean. The nearest major land mass is Australia some 1,600 kilometres to the west.

The climate of New Zealand is largely influenced by:

  • Its location in a latitude zone where the prevailing wind flow is westerly;

  • Its oceanic environment; and

  • Its mountains, especially the main mountain chain which modifies the weather systems as they pass eastwards, and also provides a sheltering effect on the leeward side of the mountains. Local orography is the cause of a number of different ‘microclimates’ in a given region.

The day-to-day weather is mostly determined by a series of anticyclones and troughs of low pressure in the westerlies. Consequently New Zealand weather is changeable, typically with short periods of a few days of settled or unsettled weather. At times the westerly regime breaks down and there are cold southerly outbreaks (with snow in winter and sometimes spring), or northerly intrusions of warm, moist air when tropical depressions move south-wards into New Zealand latitudes in the summer.

The main mountain chain which extends much of the length of the country is a major barrier to weather systems approaching from the west. Consequently there is a marked contrast between the climates of regions west and east of the mountains, and this is much greater than north-south climatic differences.

The surrounding ocean means that New Zealand largely has a ‘marine’ climate—except in Central Otago, which most nearly approaches a ‘continental’ climate (dry with hot summers and cold winters).

Many parts of the country are subject to extremes of wind and rain, giving rise to wind damage to buildings and forests, and flooding as depressions with their fronts pass close to or over the country. The rugged terrain is an important factor in the enhancement of the wind strength and/or rainfall.

Temperature extremes are mainly confined to places east of the main ranges. High temperatures usually occur in warm north-westerly wind conditions due to the so-called föhn effect. These high temperatures are often followed by sudden falls in temperature as a cold front moves up the east coast of both islands.

Weather 1993

1993 was another very significant year for weather in New Zealand. It was another cold year, with very dry weather in most northern areas of the North Island.

Another cold year. The national average temperature for the year was 11.9°C, making 1993 the third coldest year in the last 50 years (0.6°C below the long term average). This temperature is calculated from selected indicator stations throughout New Zealand. In the last half century only 1992 and 1945 were colder with 11.7°C. 1946 and 1976 shared the same temperature as 1993 (11.9°C). Temperatures in 1993 were below average in all but four months.

As in 1992, the El Niņo weather pattern was present, but waned as the year progressed. Volcanic ash from Mt Pinatubo has been present in the atmosphere, but dropped to a quarter of the maximum 1992 levels by the end of 1993. Both these influences and cold oceans around New Zealand caused the weather to be colder. However, it must be remembered there are many factors that can cause our climate to vary.

During 1993, cold south-westerlies and more anticyclones in the Tasman Sea occurred. There was also a lack of northwesterly winds which bring warmer weather.

Temperatures were most below average (by 1°C) in Rotorua, Gisborne and Hawke's Bay, with Rotorua and Gisborne having their second coldest year on record, with near record low mean annual temperatures measured.

Table 1.5. LOW TEMPERATURES

LocationMean 1993 temperatureDeparture from averageComments
  °C 
Rotorua11.5-1.2Only 1883 was colder.
Gisborne13.1-1.0Only 1992 was colder, in records from 1938.

Temperatures were near average along the Kaikoura coast, in north Canterbury, west Otago and Southland. In all other regions they were 0.5 to 0.9°C below average.

The highest extreme temperature for the year was 34.1 °C at Timaru on 18 January. Winter saw temperatures fall to -11.5°C at Lake Tekapo on 25 August, higher than the extremely low value of -15°C measured at Ranfurly during the winter of 1992.

Extremely dry in the north. 1993 was an exceptionally dry year in most northern regions of the North Island. Record low rainfall (about half average) occurred in the western Bay of Plenty, due to dry weather in most months. Only 727 mm of rain occurred in Tauranga, the lowest since records began in 1898. Only about two-thirds the usual rainfall occurred in the Auckland and Rotorua areas, making it the driest year since 1919.

Rainfall was also below average over the remainder of the North Island, as well as inland areas of both south Canterbury and Southland. This contrasts with the wetter conditions in Marlborough, western Otago, coastal Southland, and most alpine regions of the South Island, with rainfalls 10 to 25 percent more than average.

Of the four main centres, Wellington was the wettest with 1,164 mm and Christchurch the driest with 603 mm. Auckland amassed 775 mm and Dunedin (Airport) 670 mm. Milford Sound was the wettest spot in New Zealand with 6,430 mm, while Clyde (central Otago) recorded only 489 mm.

Sunny in the south, cloudy in the north. 1993 was a sunny year for most areas along the east coast of the South Island, with sunshine hour totals about 5 percent more than average. However, cloudier skies prevailed in some northern and western areas of the North Island, especially Auckland and King Country, where totals were as much as 10 percent below average. Other regions of New Zealand enjoyed close to average sunshine hours. Motueka was the sunniest centre recording 2,384 hours, followed by Nelson and Blenheim tied with 2,329 hours.

Of the four main centres Christchurch was the sunniest with 2,128 hours, then Wellington with 2,015 hours. Auckland recorded 1,903 hours and Dunedin 1,749 hours.

WEATHER

Table 1.6. SUNSHINE HOURS

CityTotal hoursDeparture from averageComments
Auckland1,903-188Cloudier
Wellington2,015+7Near average
Christchurch2,128+136Sunnier
Dunedin1,749+104Sunnier

Other significant events

  • Second coldest March in more than 50 years. The national average temperature of 14.3°C was 1.6°C below average. Only March 1992 was colder (14.1°C). Southerlies brought unseasonable snowfall to the Desert Road (5 cm), and Arthur's Pass (3 cm) on 22 March, followed by early frost in inland and sheltered areas.

  • Sunny weather appears after at least a year of dull weather. May was the first noticeably sunnier than average month in Wellington since July 1991 and Christchurch since May 1992.

  • Third warmest June on record. June had persistent northwesterlies, producing the first month with well above average temperatures since February 1990. The national average temperature of 9.6°C was 1.5°C above average and third equal warmest for June since the beginning of the historical record (1853). Only June 1971 (10.3°C) and June 1916 (9.9°C) were warmer.

  • Driest July on record. July for most places was the driest on record, with rainfall less than a quarter average. Christchurch's 3 mm was the lowest since measures began in 1894 and Wellington's 33 mm the lowest since at least 1862. Most of Christchurch's rainfall was from large hailstones on 24 July, some the size of marbles.

  • Coldest November since 1946. Cold southeasteries produced a national average temperature of 12.3°C, which was 1.5°C below average.

  • Hail storms in Canterbury. Thunderstorms, with large hail, damaged many unharvested crops in Darfield on 19 December, followed by more large hail in Canterbury on 21 December.

  • Pre-Christmas floods in Kaikoura and Otago. High rainfall in catchment areas between 22 and 23 December caused rivers to overflow in Kaikoura and Otago. The flooding was most severe in Kaikoura.

Low ozone levels. The level of ultraviolet light increased over New Zealand during spring, with ozone levels about 5 percent lower than expected. At the same time ozone levels in Antarctica reached a record low of 88 Dobson units, compared to 103 units for 1992. The Dobson figure is a measure of the number of ozone molecules above the earth's surface.

Air frosts. Early air frosts occurred in inland areas of the South Island at the end of February after a period of cold southerlies.

Hail storms. These were more frequent than usual and included golfball-size hailstones near Ashburton on 26 February. Hail also damaged ripening apple crops in the Nelson region on 28 March and kiwifruit near Auckland on 8 May. Large hail stones occurred in a two hour storm in Stratford on 18 November and hail coupled with high rainfall (80 mm in 45 minutes) devastated fruit crops at Coal Creek near Roxburgh on 23 November.

Very dry weather. Less than half the average rainfall occurred on the South Island's west coast and in the Southern Lakes from April through to June.

Cold weather. Cold southwesterlies brought the lowest March and April temperatures to New Zealand since 1942. Temperatures were 2°C below average, with frosts. May was also the coldest in 30 years.

Winter snowstorms. Snow occurred in Otago and Canterbury on 9-11 May, then heavy snowfalls occurred in Otago and Southland for much of the week from 16 June which gave record low day and night time temperatures. More heavy snow occurred in Canterbury and inland Marlborough from 8-11 July. Later, very cold south-easterlies brought the most severe snowstorms since 1939 along the east coast of the South Island from 27-29 August.

Floods. Severe flooding occurred in Northland, Hawke's Bay and Wairarapa from 21-23 July. Waitohora, Wairarapa measured rainfall totalling 195 mm for the 48-hour period to 9 am on 23 July, with numerous slips and road closures throughout the region.

The Milford Road, early October 1993. After heavy rainfall, the road was engulfed by a 30,000 cubic metre slip of mud, rock and vegetation from Mt Underwood. The Cleddau river is at left.

The southern oscillation and El Niņo

When the air pressure is abnormally high in the Indonesian region, it is correspondingly low in the South Pacific and vice versa. This phenomenon is called the 'southern oscillation‘. When southern oscillation episodes occur, the usual weather patterns in the southern Pacific, including New Zealand, are significantly altered.

An index, called the southern oscillation index, has been constructed using pressure recordings from Tahiti and Darwin. Usually there is a lag of some months between a major excursion of the oscillation, either positive (La Niņa) or negative (El Niņo), and a characteristic weather regime developing. The period of the southern oscillation is very irregular, varying between about two and 10 years with an average period of three to four years. However, once established, significant El Niņo and La Niņa episodes can persist for six to 12 months.

SOUTHERN OSCILLATION INDEX

Air pressure recordings from Tahiti and Darwin

In general, very negative values of the oscillation index (El Niņo's) are associated with an increase in the frequency of southerly winds over New Zealand in winter, and south-westerly winds during spring and summer.

The most significant El Niņo this century occurred over the spring and summer of 1982-1983, when the oscillation index reached its largest negative value this century and rainfall was well below average in Gisborne and Hawke's Bay.

The latest El Niņo event (1991 through 1993), along with other oceanic and atmospheric influences, has been a major factor influencing the colder weather that has prevailed over the past few years.

The above graph shows three-month running means of the southern oscillation index (SOI) to the end of 1993. Negative phases of the SOI are closely linked to El Niņo episodes.

1.4 Vegetation and wildlife

Uniqueness is a feature of the natural life of New Zealand. Most notable is the absence—apart from two species of bat—of native land mammals. 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 in pre-European 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 lack of mammals also meant that birds became important as seed-dispersing agents. As a result most forest plants, including the giant conifers (podocarps), the smaller canopy trees, and even some forest-floor herbs bear small berries. 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 and then the arrival of people only a thousand years ago, many plants and animals that once occurred here have become extinct. 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.

Although many New Zealand plants and animals occupy very specialised habitats, eruptions, storms, flood and erosion mean that they have to be highly adaptable. Accordingly some forest species, like the beeches, regenerate best after catastrophic events have damaged the forest, and many insects, such as native bees have evolved to gather food from a wide variety of sources.

However, the overwhelming character of the land-based wildlife is its dependence on forest, and its vulnerability to introduced predators such as rats. The forests and natural grasslands have also been severely modified by introduced browsers such as possums, deer and goats, and 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 found only in New Zealand. Virtually all native insects, spiders and snails, and all native earthworms are restricted to New Zealand, as are most native birds and plants, most local freshwater fish (27 species), and all native reptiles (38 species).

Table 1.7. SELECTED GROUPS OF NATIVE AND INTRODUCED SPECIES

 Number of species 
GroupIntroducedNativePercentage endemic*

*Native species not found anywhere else.

†Estimated.

Source: Department of Conservation.

Marine algae (seaweeds)3900†43
Bryophytes—   
        Mosses        1548528
Liverworts..500..
Ferns and allies2016341
Conifers3020100
Flowering plants1,7001,81384
Earthworms40178100
Landsnails/slugs12520†99
Spiders/harvestmen602 500†90
Insects1,1009,46090
Freshwater fish23†2785
Amphibia23100
Reptiles138100
Birds—   
        Land/freshwater336557
Mammals—
        Marine1346
        Land332100

New baby kiwi, Mt Bruce Wildlife Centre.

Introduced vegetation and wildlife.

The New Zealand landscape is now dominated by introduced animals and plants. Over 1,500 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 through 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. In recent years the urgency for measures to ensure the survival of endangered species has become a world-wide concern.

1.5 Time zone

One uniform time is kept throughout mainland New Zealand. This is the time 12 hours ahead of Co-ordinated Universal Time, and is named New Zealand Standard Time (NZST). It is an atomic standard, and is maintained by the New Zealand Time Service, now part of the crown research institute, Industrial Research Limited. One hour of daylight saving, named New Zealand Daylight Time, which is 13 hours ahead of Co-ordinated Universal Time (UTC), is observed from 2 am (NZST) on the first Sunday in October, until 2 am (NZST) on the third Sunday in March. Time kept in the Chatham Islands is 45 minutes ahead of that kept in New Zealand.

Changing times.

Contributors

  • 1.1 Department of Survey and Land Information.

  • 1.2 Institute of Geological and Nuclear Sciences Limited.

  • 1.3 National Institute of Water and Atmospheric Research Limited.

  • 1.4 Department of Conservation.

  • 1.5 Department of Internal Affairs.

Special articles

Department of Conservation.

Further information

Geography

Ward I (1976), New Zealand Atlas. Government Printer

The New Zealand Map Collection. Department of Survey and Land Information.

Geology

Braithwaite, RL and Piranjno, F (1993), ‘Metallogenic Map of New Zealand’, Institute of Geological&Nuclear Sciences Limited Monograph: 3, Institute of Geological and Nuclear Sciences Limited.

Brown, LJ and Weeber, JH (1992), Geology of Christchurch Urban Area, Map 1, Institute of Geological and Nuclear Sciences Limited.

Field, BD et al (1989), ‘Cretaceous and Cenozoic Sedimentary Basins and Geological Evolution of the Canterbury Region, South Island, New Zealand’, New Zealand Geological Survey Basin Studies: 2.

Gage, M (1980), Legends in the Rocks—An Outline of New Zealand Geology, Whitcoulls.

Kermode, LO et al (1992), Geology of Auckland Urban Area, Map 2, Institute of Geological and Nuclear Sciences Limited.

Lillie, AR (1980), Strata and Structure in New Zealand, Tohunga Press. Nathan, S et al (1986), ‘Cretaceous and Cenozoic Sedimentary Basins and Geological Evolution of the West Coast Region, South Island, New Zealand’, New Zealand Geological Survey Basins Survey: 1.

Riddolls, PM (1987), New Zealand Geology—Containing Geological Maps of New Zealand 1:2 000 000, DSIR, Science Information Publishing Centre.

Searle, EJ (1981), City of Volcanoes, 2nd ed, Longman Paul.

Sewell, RJ, Weaver, SD and Reay MB (1993), Geology of Banks Peninsula, Map 3, Institute of Geological and Nuclear Sciences Limited.

Skinner, DNB et al (1993), Geology of Coromandel Harbour Area, Map 4, Institute of Geological and Nuclear Sciences Limited.

Smith, IEM, ed (1986), ‘Late Cenozoic Volcanism in New Zealand’, Royal Society of New Zealand Bulletin 23, Royal Society of New Zealand.

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

Speden, IG and Keyes, IW (1980), Illustrations of New Zealand Fossils, DSIR Information Series 150, DSIR.

Stevens, GR (1985), Lands In Collision: Discovering New Zealand's Past Geography, DSIR Information Series 161, DSIR.

Stevens, GR (1980), New Zealand Adrift: The Theory of Continental Drift in a New Zealand Setting, A. H.&A. W. Reed.

Stevens, GR (1974), Rugged Landscape, AH&AW Reed.

Suggate, RP, Stevens, GR and Te Punga, MT, eds (1978), The Geology of New Zealand, 2 vols, Government Printer.

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

Turnbull, IM et al, (1993), ‘Cretaceous and Cenozoic Sedimentary Basins of Western Southland, South Island, New Zealand’, Institute of Geological and Nuclear Sciences Limited Monograph: 1, Institute of Geological and Nuclear Sciences Limited.

Williams, GJ (1974), Economic Geology of New Zealand, AusIMM Monograph Series 4.

Wood, RA et al (1989), ‘Cretaceous and Cenozoic Geology of the Chatham Rise Region, South Island, New Zealand", New Zealand Geological Survey Basin Studies: 3.

Climate

An Encyclopedia of New Zealand. McLintock, AH, ed. Government Printer, 1966.

Johnson, KF, Bibliography of New Zealand Meteorological Service Publications 1892-1985. New Zealand Meteorological Service, 1986.

Ward I (1976), New Zealand Atlas. Government Printer.

The National Institute of Water and Atmospheric Research (Environmental Data Division) publishes monthly summaries of:

Climate Observations and Rainfall Observations. NIWAR also produces regional climatologies (Misc Pub 115), maps and holds other publications.

Vegetation and wildlife

Enting, B and Molloy L (1982), The Ancient Islands. Port Nicholson Press.

Kuschel, G, ed (1975). Bio-geography and Ecology in New Zealand. W. Junk.

Salmon, JJ (1980) The Native Trees of New Zealand. Reed Methuen.

Stevens, GR (1985) Lands in Collision: Discovering New Zealand's Past Geography. DSIR.

Chapter 2. Government

By-election hoardings, Tamaki.

2.1 Constitution

New Zealand's constitutional history can be traced back to 1840 when by the Treaty of Waitangi the Maori people exchanged their sovereignty for the guarantees of the treaty and New Zealand became a British colony. New Zealand is an independent state; a monarchy with a parliamentary government. Queen Elizabeth II has the title Queen of New Zealand.

A constitution is concerned with the establishment and composition of the legislative, executive, and judicial organs of government, their powers and duties, and the relationship between these organs. New Zealand's Constitution Act 1986 brings together in one Act the most important statutory constitutional provisions and clarifies the rules relating to the governmental handover of power. The Act deals with the principal components of New Zealand's statutory constitutional provisions: the Sovereign, the Executive, the legislature and the judiciary.

There remain a number of United Kingdom Acts (referred to as ‘Imperial Acts’) which are in force as part of the law of New Zealand. Some are historic constitutional Acts, such as the Magna Carta and the Habeas Corpus Act 1679.

These Acts are listed and defined in the Imperial Laws’ Application Act 1988.

The Crown and the Governor-General

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

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

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

Table 2.1. VICE-REGAL REPRESENTATIVES 1957-1991

Vice-regal representative*Assumed officeRetired

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

Viscount Cobham, gcmg, td5 Sep 195713 Sep 1962
Brigadier Sir Bernard Fergusson, gcmg, gcvo, dso, obe9 Nov 196220 Oct 1967
Sir Arthur Espie Porritt, Bt. gcmg, gcvo, cbe1 Dec 19677 Sep 1972
Sir (Edward) Denis Blundell, gcmg, gcvd, kbe, qso27 Sep 19725 Oct 1977
Rt Hon Sir Keith Jacka Holyoake, kg, gcmg, ch, qso26 Oct 197727 Oct 1980
Hon Sir David Stuart Beattie, gcmg, gcvo, qso, qc6 Nov 198010 Nov 1985
His Excellency The Most Reverend Sir Paul Alfred Reeves, gcmg, gcvo20 Nov 198529 Nov 1990
Her Excellency Dame Catherine Tizard, gcmg, dbe13 Dec 1990 

Parliamentary tradition

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

Recent constitutional reform

The New Zealand Bill of Rights Act 1990. This Act protects certain fundamental rights and freedoms in New Zealand. These rights include freedom of religion, speech and assembly and the right to protection against discrimination as well as fundamental principles of criminal procedure such as the right of access to lawyers and the right to a fair trial.

The rights and freedoms in the Act are not absolute and may be subject to justified limitations. But the Act provides that any limitations must be reasonable, prescribed by law, and demonstrably justified in a free and democratic society.

Unlike some similar documents in other countries the Act is not supreme law. Rather, it is an ordinary statute which can be amended or repealed by simple majority in Parliament. Nor do the Courts have the power to strike down legislation on the basis that is inconsistent with the rights set out in the Act.

However, this does not mean that the Act is a mere statement of rights. The Attorney-General is charged under the Act with the responsibility of alerting Parliament when any provision in a Bill before Parliament is inconsistent with those rights. And where the interpretation of a statutory provision is ambiguous, the Courts are required to interpret the provision in a manner consistent with the rights and freedoms in the Act. The Act came into force on 25 September 1990.

Electoral reform. The Electoral Referendum Act 1991 provided for an indicative referendum on electoral reform. The referendum was divided into two parts. The first part asked voters to choose between electoral reform or maintaining of the present first past the post system. The second part of the ballot asked voters to indicate which of four options for electoral reform they preferred: supplementary member, single transferable vote, mixed member proportional and preferential voting.

The referendum was held on 19 September 1992. Of the 1,217,284 people who voted (roughly 55 percent of the electorate) 1,031,257 or 84.7 percent, voted for change. A clear preference was shown for mixed member proportional representation which received 70.5 percent of the votes for change. The single transferable vote system got 17.4 percent of the votes, the preferential voting system 6.6 percent and the supplementary member system 5.6 percent of the votes.

A second referendum was held in conjunction with the 1993 general election where voters chose between the present first past the post system and mixed member proportional representation. Provision for that referendum is made in the Electoral Referendum Act 1993. Details of the mixed member proportional system are set out in the Electoral Act 1993.

Privacy of information. In August 1991, the Government introduced the Privacy of Information Bill. The Bill is currently being studied by a select committee of Parliament. Its purpose is to promote and protect individual privacy in general accordance with the 1980 OECD guidelines on the protection of Privacy and Transborder flows of Personal Data.

The Bill provides that requests by natural persons for information about themselves are to be dealt with in accordance with the new Act rather than the Official Information Act when the relevant sections of the new Act come into force. These sections which are modelled on Part IV of the Official Information Act extend entitlements to access to personal information to information held by private sector agencies. The right of review by the Ombudsmen in respect of refusal of personal information requests is to be replaced by a complaints procedure involving the new office of the Privacy Commissioner. If settlement of the complaint cannot be secured by the Commissioner proceedings may be taken to the Equal Opportunities Tribunal, renamed the Human Rights Tribunal. The Official Information Act is amended accordingly in the Bill.

The Privacy Commissioner Act 1991 established a privacy commissioner with the functions of overseeing compliance by the government agencies involved in the matching of government information with the statutory controls; and of performing a general watchdog role in relation to privacy. The Privacy Commissioner has no jurisdiction to deal with complaints by individuals that the statutory controls have been breached. The controls consist of requirements such as notice to the affected individual before action can be taken on the basis of a successful match, observation of time limits on the commencement of action after a successful match, and the establishment of technical standards for the conduct of matching programmes. The information that may be matched with the beneficiary records of the Department of Social Welfare and the Accident Compensation Corporation covers information relating to prison inmates, people arriving in and departing from New Zealand, illegal immigrants, taxpayers, recipients of student allowances and records of births, deaths and marriages.

Privacy Act 1993. This Act came into force on 1 July 1993. It carries forward from the Privacy Commissioner Act 1991 the provisions establishing the Privacy Commissioner and makes the commissioner a member of the Human Rights Commission. Twelve information privacy principles and four public register privacy principles were established. The 12 information privacy principles deal with the collection, security, use and disclosure of personal information, access to and correct of personal information and the assignment and use of unique identifiers. The four public register privacy principles place some controls on the availability of public register information and its subsequent use. Both sets of principles are subject to any other law on the matters covered. The principles apply to both public and private sectors. Jurisdiction is given to the Privacy Commissioner to grant exemptions from the principles, principally by way of codes of practice.

Also carried forward from the Privacy Commissioner Act 1991 are controls on information matching to apply to statutory matching provisions implemented by the public sector— for example, requirements such as notice to the affected individual before action can be taken on the basis of a successful match. The Privacy Commissioner is given jurisdiction to deal with complaints about breaches of the principles and about breaches of the information matching controls. The Privacy Commissioner Act 1991 was repealed.

2.2 Parliament and the Cabinet

House of Representatives

At the heart of the parliamentary system lies the power to make laws that is vested by the Constitution Act 1986 in the Parliament of New Zealand, which consists of the Sovereign in right of New Zealand (normally represented by the Governor- General) and an elected House of Representatives.

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

The Constitution Act 1986 forbids the House to allocate public funds for any purpose unless first recommended by the Crown. Although the reasons for this provision are historical, 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.

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

The House meets in answer to a summons from the Governor-General. Sessions of Parliament are marked by a formal opening when the Government's legislative programme is described in the Speech from the Throne, read by the Governor-General in the absence of the Sovereign, and a closing prorogation by proclamation.

Parliamentary chamber in Bowen House.

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 government 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 the Standing Orders are complied with. The Speaker is assisted by the Clerk of the House of Representatives who notes all proceedings of the House and of any committee of the House, and provides advice on parliamentary law and custom.

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 departmental mismanagement. The party system means it is unlikely that the Opposition could bring down a government by a no-confidence vote—there has been no instance of a successful no-confidence vote in the New Zealand Parliament since 1928.

The House of Representatives is characterised by having two 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 been elected 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 two-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.

Table 2.2. PARLIAMENTARY SEATS HELD BY POLITICAL PARTIES AFTER GENERAL ELECTIONS 1960-1990

ElectionTotalNationalLabourOthers

*Social Credit/Democrats

†New Labour.

Source: Department of Justice.

1960804634 
1963804535 
19668044351*
1969844539 
1972873255 
1975875532 
19789251401*
19819247432*
19849537562*
1987974057 
19909767291†

In 1991 the number of parliamentary seats held by the National Party was reduced to 65 when two members left to become New Zealand Liberal, later part of the Alliance. This of the independents subsequently formed the New Zealand First Party and was joined by one of the New Zealand Liberal members. ‘Others’ now comprises two members for the Alliance, two for New Zealand First and one independent.

By-elections. The following by-elections were held during the life of the 43rd Parliament:

Tamaki Electoral District—held on 15 February 1992, following the resignation of the Right Honourable Sir Robert Muldoon. Clem Simich was elected and, having been sworn, took his seat in the House of Representatives on 3 March 1992.

Wellington Central Electoral District—held on 12 December 1992, following the resignation of the Honourable Fran Wilde. Christopher Laidlaw was elected and, having been sworn, took his seat on 23 February 1993.

Tauranga Electoral District—held on 17 April 1993, following the resignation of Winston Peters. He was re-elected, as an independent member, and, having been sworn, took his seat on 5 May 1993.

Process of legislation. Proposed laws are placed before the House in the form of draft laws known as ‘Bills’. There are three types of Bill: Public Bills, which deal 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 have taken; 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 the House of Representatives is for it to receive a first reading, which is a formal introductory stage, allowing a maximum debating time of two hours. Almost all Bills are then sent to a select committee. Detailed scrutiny of legislation and facets of executive activity, eg expenditure of public money, is carried out by select committees which consist of a small number of members, and report their findings and recommendations to the House. All Government Bills are referred to a select committee unless it is an Appropriation Bill, an Imprest Supply Bill or a Bill that has been accorded urgency. This procedure enables 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 principles of the Bill. Following this the Bill is considered by the whole House ‘in committee’, 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 approval. On receiving the Royal assent the Bill becomes an Act of Parliament 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. 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 also advertise the Bill before it can be introduced.

Sessions of Parliament. The first session of the 43rd New Zealand Parliament was called following the General Election of 27 October 1990 and sat from 28 November 1990 to 19 December 1990. The first session concluded when Parliament was prorogued on 18 January 1991, and a new session was called to discuss the outbreak of hostilities in the Gulf. New Zealand's first female Governor-General, Her Excellency Dame Catherine Tizard, delivered the Speech from the Throne at the opening of the second session of the 43rd Parliament on 22 January 1991. The House had, on 19 December 1990, adjourned until 19 February 1991. As no power was then vested in the Speaker (or in anyone else) to appoint an earlier meeting time while the House stood and adjourned, the only way in which an accelerated meeting could be effected was by the Crown proroguing Parliament and summoning it to meet in a new session.

The Prime Minister on his Heartland Campaign 1993 election tour.

Table 2.3. PARLIAMENTARY SESSIONS

ParliamentPeriod of session

Source: Clerk of the House of Representatives.

Fortieth{7 April 1982-17 December 1982
 7 April 1983-16 December 1983
7 April 1983-16 December 198331 May 1984-14 June 1984
Forty-first{15 August 1984-12 December 1985
 26 February 1986-21 July 1987
Forty-second{16 September 1987-12 December 1989
 14 February 1990-6 September 1990
Forty-third{29 November 1990-18 January 1991
 22 January 1991-30 September 1993

Table 2.4. SUMMARY OF PARLIAMENTARY PROCEEDINGS

 1987-90*1990†1991‡1991-93§

*First session, forty-second Parliament.

†Second session, forty-second Parliament.

‡First session, forty-third Parliament.

§Second session, forty-third Parliament.

Source: Clerk of the House of Representatives.

Sitting days1845610224
Government Bills—    
Introduced1654312150
Referred to select committees138339124
Private Members’ Bills—    
Introduced83032
Referred to select committees84032
Local Bills—    
Introduced275025
Referred to select committees275025
Private Bills—    
Introduced83011
Referred to select committees83011

Parliamentary Service. (Te Ratonga Whare Paremata.) The Parliamentary Service provides administrative and support services to the Members of Parliament and the House of Representatives. The service is not a department of the executive government nor is it responsible to a minister. It is controlled by the Parliamentary Services Commission which consists of the Speaker of the House of Representatives as chairperson, and six members, three of whom are members of the Government and three from the Opposition.

Among the services provided by the Parliamentary Service are:

  • Personal staff to assist members of Parliament in Parliament House and in the electorate;

  • The Parliamentary Library—to provide library, information and research facilities to Members of Parliament;

  • Catering services (Bellamys) for members, staff and guests;

  • Security, messenger and other services needed for the day-to-day running of Parliament; and

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

The Parliamentary Service is also responsible for managing the major project to strengthen and refurbish Parliament House and the Parliamentary Library. The project began in August 1992 and will be completed, at an estimated cost of $164 million, in time for members to occupy the restored building for the 1996 parliamentary year.

Salaries and allowances of parliamentarians. These are set out in below. An electorate allowance is also paid at a rate dependent on the nature of each member's electorate, eg urban, rural, or semi-rural, and ranges from $7,600 to $18,600. A day allowance of $52 is payable where indicated for each day on which a member attends a sitting of Parliament or a committee, and a night allowance of up to $118 for each night a member requires overnight accommodation away from home by reason of such attendance. Instead of receiving night allowances for each night spent in Wellington on parliamentary business, a member may elect to receive a Wellington accommodation allowance to cover costs incurred in retaining or maintaining accommodation. The maximum amount that can be claimed in a period of six months is $6,500.

Table 2.5. PARLIAMENTARY AND MINISTERIAL SALARIES AND ALLOWANCES

 Annual salary or allowance payable from 1 July 1992*

Source: Clerk of the House of Representatives.

Salaries$
Members of the Executive 
Prime Minister168,500
Deputy Prime Minister132,000
Minister of the Crown117,500
Minister of the Crown without portfolio95,000
Parliamentary Under-Secretary91,500
Officers of the House of Representatives 
Speaker117,500
Chairman of Committees94,000
Deputy Chairman of Committees71,000
Leader and Deputy of the Opposition 
Leader of the Opposition117,500
Deputy Leader of the Opposition91,500
Whips 
Senior Government Whip81,500
Senior Opposition Whip81,500
Junior Government Whip76,500
Junior Opposition Whip76,500
Members of Parliament 
Member of Parliament66,000
Allowances 
Prime Minister29,500
Deputy Prime Minister13,000
Minister of the Crown12,000
Minister of the Crown without portfolio9,500
Parliamentary Under-Secretary9,500
Minister of Foreign Affairs and Trade (additional)6,000
Speaker—basic expenses allowance12,000
        (additional allowance (plus day, travelling and house and garden maintenance allowances)8,500
Deputy Speaker or Chairman of Committees—basic expenses allowance9,500
        (additional allowance (plus day and night allowances)7,500
Deputy Chairman of Committees—basic expense allowances6,200
        (additional allowance (plus electorate, day and night allowances)675
Leader of the Opposition—basic expenses allowances (plus house, house and grounds maintenance, day, night and travelling allowances)12,000
Deputy Leader of the Opposition—basic expenses allowances6,200
        (additional allowance (plus day and night allowances)4,800
Members-basic expenses allowances (plus electorate, day and night expenses)6,200

WOMEN IN PARLIAMENT

Members of Parliament. shows the percentage of women Members of Parliament, and members of both sexes of various ages elected in the 1990 general election compared to the voting population.

Table 2.6. PARLIAMENTARY REPRESENTATION

 Percentage of total Members of Parliament*Percentage of total voting-age population†

*As at 1 October 1993.

†1991 Census figures.

Source: Clerk of the House of Representatives.

Women15.551.4
Age groups, both sexes—  
        18-29 years1.027.3
        30-3911.421.4
        40-4945.417.5
        50-5935.012.3
        60 years and over7.221.5

lists members of the House of Representatives during the forty-third Parliament. The final results of the 1990 general election were printed in the report The General Election (printed as Parl paper E9). See section 2.7 for 1993 General Election results.

Table 2.7. HOUSE OF REPRESENTATIVES, FORTY-THIRD PARLIAMENT

Prime Minister—Rt Hon JB Bolger.
Leader of the Opposition—Rt Hon Mike Moore.
Speaker—Hon Robin Gray.
Deputy Speaker and Chairman of Committees—RJ Gerard.
Clerk of the House—DG McGee.
Member of Parliament*Year of birthPrevious occupationElectoral district

*Names are given in the form in which individual members prefer to be addressed.

†Government member.

‡Resigned 31 December 1991; died 5 August 1992.

§Won by-election 15 February 1992.

◊Resigned 25 October 1992.

ķWon by-election 12 December 1992.

Source: Clerk of the House of Representatives.

Anderson, Robert†1936FarmerKaimai
Anderton, Jim1938Company directorSydenham
Armstrong, John†1935Company directorNew Plymouth
Austin, Hon Margaret1933TeacherYaldhurst
Banks, Hon John†1946RestaurateurWhangarei
Birch, Rt Hon WF†1934Consultant surveyor-engineerMaramarua
Blincoe, John1952Research officerNelson
Bolger, Rt Hon JB†1935FarmerKing Country
Bradford, Mr Max†1942Secretary-General and consultantTarawera
Braybrooke, Geoff1935Sales managerNapier
Burdon, Hon Philip†1939Company directorFendalton
Campion, Cameron1943FarmerWanganui
Carter, John†1950Local government officerBay of Islands
Caygill, Hon David1948Barrister and solicitorSt Albans
Clark, Rt Hon Helen1950LecturerMt Albert
Cliffe, Bruce†1946Managing directorNorth Shore
Cooper, Hon Warren†1933MotelierOtago
Creech, Hon Wyatt†1946AccountantWairarapa
Cullen, Hon Dr Michael1945LecturerSt Kilda
Dalziel, Lianne1960Trade unionistChristchurch Central
Davies, Sonja, onz1923Vice-president of Federation of LabourPencarrow
Dunne, Hon Peter1954Deputy chief executive officerOhariu
East, Hon Paul†1946Barrister and solicitorRotorua
Elder, Jack1949TeacherWest Auckland
English, Bill†1961FarmerWallace
Falloon, Hon John†1942Farm management consultantPahiatua
Fletcher, Chris†1955Dairy farm managerEden
Gerard, Mr†1937FarmerRangiora
Graham, Hon DAM†1942Barrister and solicitorRemuera
Grant, Jeff†1958FarmerAwarua
Gray, Hon Robin†1931FarmerClutha
Gregory, Dr Bruce1937Doctor of medicineNorthern Maori
Gresham, Peter†1933AccountantWaitotara
Hancock, Hamish†1947LawyerHorowhenua
Hasler, Marie†1945Retail managerTitirangi
Hawkins, George1946TeacherManurewa
Hilt, Peter†1942Company directorGlenfield
Hodgson, Peter1950VeterinarianDunedin North
Hunt, Rt Hon Jonathan1938TeacherNew Lynn
Kelly, Graham1941Trade unionistPorirua
Kidd, Hon Doug†1941Barrister and solicitorMarlborough
Kimber, Wayne†1949Surveyor/plannerGisborne
Kyd, Warren†1939Barrister and solicitorClevedon
Laidlaw, Christopherķ1943Race Relations ConciliatorWellington Central
Lange, Rt Hon David, ch1942Barrister and solicitorMangere
Laws, Michael†1957Public relations consultantHawke's Bay
Lee, Hon Graeme†1935Company directorCoromandel
Luxton, Hon John†1946FarmerMatamata
McCardle, Peter†1951Public servantHeretaunga
McClay, Hon Roger†1945TeacherWaikaremoana
McCully, Hon Murray†1953Public relations consultantEast Coast Bays
McIntosh, Ms Gail†1955AccountantLyttelton
MacIntyre, Hamish1951DoctorManawatu
McKinnon, Rt Hon Don†1939Real estate agentAlbany
McLauchlan, Joy†1948Executive officerWestern Hutt
McTigue, Hon Maurice†1940FarmerTimaru
Maharey, Steve1953University lecturerPalmerston North
Marshall, Hon Denis†1943Farmer and company directorRangitikei
Matthewson, Hon Clive1944Civil engineerDunedin West
Maxwell, Hon RFH†1941FarmerTaranaki
Meurant, Mr Ross†1947Police inspectorHobson
Moir, Margaret†1941Company directorWest Coast
Moore, Rt Hon Mike1949Freezing workerChristchurch North
Muldoon, Rt Hon Sir Robert, gcmg, ch†‡1921AccountantTamaki‡
Munro, Mr Rob†1946Barrister and solicitorInvercargill
Myles, Gilbert1945Company directorRoskill
Neeson, Brian†1945Real estate agentTe Atatu
Neill, Alec†1950Barrister and solicitorWaitaki
O'Regan, Hon Katherine†1946FarmerWaipa
Peters, Ian†1941Real estate agentTongariro
Peters, Winston1945Barrister and solicitorTauranga
Prebble, Hon Richard1948Barrister and solicitorAuckland Central
Reeves, Graeme†1947Barrister and solicitorMiramar
Revell, Ian†1948Police officerBirkenhead
Richardson, Hon Ruth†1950Legal adviser/farmerSelwyn
Robertson, HV Ross1949Industrial engineerPapatoetoe
Robertson, John†1951AccountantPapakura
Rogers, Mr Trevor†1943ImporterOtara
Ryall, Tony†1964AccountantEast Cape
Shipley, Hon Jenny†1952FarmerAshburton
Simich, Clem1939General managerTamaki§
Smith, Hon Dr Lockwood†1948Managing directorKaipara
Smith, Nick†1964EngineerTasman
Sowry, Roger†1958Retail managerKapiti
Steel, Tony†1941TeacherHamilton East
Storey, Hon Rob†1936President of Federated FarmersWaikato
Sutherland, Larry1951Trade unionistAvon
Swain, Paul1951Trade unionistEastern Hutt
Tapsell, Hon Peter mbe1930Doctor of medicineEastern Maori
Tennet, Elizabeth1953Trade unionistIsland Bay
Thomas, Grant†1941Company directorHamilton West
Thorne, Grahame†1946Television producerOnehunga
Tirikatene-Sullivan, Hon Mrs TWM, onz1932Political scientistSouthern Maori
Tizard, Judith1956Electorate secretaryPanmure
Upton, Hon Simon‡1958Student/teacherRaglan
Wetere, Hon KT1935FarmerWestern Maori
Whittaker, Jeff‡1940PharmacistHastings
Wilde, Hon Fran◊1948JournalistWellington Central
Williamson, Hon Maurice‡1951Planning analystPakuranga

Executive government

The executive government of New Zealand is carried out on behalf of the Sovereign by the ministers of the Crown, who make up the members of the Cabinet and the Executive Council. Ministers are responsible to Parliament for their official actions by constitutional convention, and are required to be members of Parliament by the Constitution Act 1986.

After a general election the Governor-General invites the leader of the 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 members of Parliament as ministers, generally with responsibilities for various areas of government administration (portfolios). The Governor-General may also appoint parliamentary undersecretaries, who are not ministers and not members of the Executive Council, to assist ministers.

Cabinet and the Executive Council. The Cabinet and the Executive Council have separate functions. All members of Cabinet are members of the Executive Council, as are the ministers not in the Cabinet.

The Executive Council is a formal body with formal functions, whereas the Cabinet is an informal body with deliberative functions; the Executive Council tenders advice to the Governor-General on the basis of policy formulated in the Cabinet. The council is established under Clause VII of the Letters Patent and is the main 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 policy making body of Government. It is the main vehicle by which the executive decides on major policy issues and legislative proposals, and it co-ordinates the work of ministers. The Cabinet has a system of committees which can examine subjects in detail and recommend specific policy measures to Cabinet.

The proceedings of the Cabinet are informal and confidential, and decisions are usually made by consensus. By 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 support services for the Cabinet and its committees. The current Secretary of the Cabinet is also the Clerk of the Executive Council.

Table 2.8. PRIME MINISTERS 1960-1991

Prime Minister* Term(s) of office

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

Rt Hon Sir Keith Jacka Holyoake, gcmg, chNational12 Dec 1960-7 Feb 1972
Rt Hon John Ross Marshall (later Sir)National7 Feb 1972-8 Dec 1972
Rt Hon Norman Eric KirkLabour8 Dec 1972-d31 Aug 1974
Rt Hon Wallace Edward Rowling (later Sir)Labour6 Sep 1974-12 Dec 1975
Rt Hon Sir Robert David Muldoon, gcmg, chNational12 Dec 1975-26 Jul 1984
Rt Hon David Russell LangeLabour26 Jul 1984-8 Aug 1989
Rt Hon Geoffrey Winston Russell Palmer (later Sir)Labour8 Aug 1989-4 Sep 1990
Rt Hon Michael Kenneth MooreLabour4 Sep 1990-2 Nov 1990
Rt Hon James Brendan BolgerNational2 Nov 1990-

View of parliamentary buildings from General Assembly Library, currently under reconstruction and renovation.

Table 2.9. NEW ZEALAND GOVERNMENT, AT 1 SEPTEMBER 1993

Source: Cabinet Office.
Governor-General
Her Excellency Dame Catherine Tizard, GCMG, DBE
Official Secretary: Ken Richardson, QSO
Executive Council
Membership of the Executive Council comprises all ministers with the Governor-General presiding. The Clerk of the Executive Council is Marie Shroff.
The Cabinet
Rt Hon Jim Bolger, Prime Minister.
Rt Hon Don McKinnon, Deputy Prime Minister, Minister of Foreign Affairs and Trade, Minister of Pacific Island Affairs.
Rt Hon Bill Birch, Minister of State Services, Minister of Employment, Minister of Health, Minister for the Accident Rehabilitation Compensation Insurance Act.
Hon Ruth Richardson, Minister of Finance.
Hon Paul East, Attorney-General, Minister for Crown Health Enterprises.
Hon John Falloon, Minister of Agriculture, Minister of Forestry.
Hon Doug Kidd, Minister of Maori Affairs, Minister of Fisheries.
Hon Phillip Burdon, Minister of Commerce.
Hon Simon Upton, Minister of Research, Science and Technology, Minister for Crown Research Institutes.
Hon John Banks, Minister of Police, Minister of Tourism, Minister for Sport, Fitness and Leisure.
Hon Jenny Shipley, Minister of Social Welfare, Minister of Women's Affairs.
Hon Warren Cooper, Minister of Defence, Minister of Local Government.
Hon Doug Graham, Minister of Justice, Minister for Disarmament and Arms Control, Minister of Cultural Affairs.
Hon Dr Lockwood Smith, Minister of Education.
Hon Maurice McTigue, Minister of Labour, Minister of Immigration.
Hon Rob Storey, Minister of Transport, Minister of Lands, Minister for the Environment.
Hon Denis Marshall, Minister of Conservation.
Hon John Luxton, Minister of Housing, Minister of Energy.
Hon Wyatt Creech, Minister of Revenue, Minister for Senior Citizens, Minister for State-Owned Enterprises, Minister of Railways, Minister of Works and Development.
Hon Maurice Williamson, Minister of Communications, Minister of Broadcasting, Minister of Statistics.
Ministers not in Cabinet
Hon Katherine O'Regan, Minister of Consumer Affairs.
Hon Roger McClay, Minister of Youth Affairs.
Hon Graeme Lee, Minister of Internal Affairs, Minister of Civil Defence.
Hon Roger Maxwell, Minister of Business Development.
Hon Murray McCully, Minister of Customs.
Other responsibilities
Ministers with other vote or statutory responsibilities are indicated below.
Rt Hon Jim Bolger, Minister in Charge of the New Zealand Security Service.
Rt Hon Don McKinnon, Leader of the House.
Hon Ruth Richardson, Earthquake and War Damage Corporation, National Provident Fund.
Hon Paul East, Serious Fraud Office, Audit Department.
Hon John Falloon, Minister for Racing.
Hon Phillip Burdon, Minister for Industry, Associate Minister of Foreign Affairs and Trade. Minister for Trade Negotiations.
Hon Simon Upton, Associate Minister of Finance.
Hon Warren Cooper, Minister in Charge of War Pensions, Television New Zealand Ltd, Radio New Zealand Ltd.
Hon Dr Lockwood Smith, Education Review Office, National Library.
Hon Maurice McTigue, Airways Corporation of New Zealand Limited, Coal Corporation of New Zealand Limited, Electricity Corporation of New Zealand Limited, GCS Limited, Government Property Services Limited, Land Corporation Limited, Meteorological Service of New Zealand Limited, New Zealand Forestry Corporation Limited, New Zealand Post Limited. New Zealand Rail Limited, Timberlands West Coast Limited, Works and Development Services Corporation (NZ) Limited.
Hon Rob Storey, Minister of Survey and Land Information, Minister in Charge of Valuation Department.
Hon Denis Marshall, Associate Minister of Agriculture, Associate Minister of Employment.
Hon John Luxton, Associate Minister of Maori Affairs. Associate Minister of Education, Housing New Zealand Limited.
Hon Wyatt Creech, Associate Minister of Finance, Associate Minister of Social Welfare, Government Superannuation Fund, Minister in Charge of the Public Trust Office.
Hon Maurice Williamson, Associate Minister of Health, Associate Minister of Research, Science and Technology.
Hon Katherine O'Regan, Associate Minister of Women's Affairs, Associate Minister of Health.
Hon Roger McClay, Associate Minister of Education, Associate Minister of Social Welfare, Associate Minister of Pacific Island Affairs.
Hon Roger Maxwell, Associate Minister of Employment, Associate Minister of Immigration.
Hon Murray McCully, Associate Minister of Tourism.

Parliamentary elections

Persons 18 years and over have the right to vote in parliamentary elections. Enrolment as an elector is compulsory, but voting is not. To qualify for enrolment persons must (i) be at least 18 years old; (ii) be New Zealand citizens or permanent residents; (iii) have lived continuously in New Zealand for at least a year at some time; and (iv) have last lived continuously for one month in the electorate they are to be enrolled in. 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 maintained by New Zealand Post.

Table 2.10. VOTING PATTERNS: 1981-1990

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

Source: Department of Justice.

19812,034,7471,801,3038,99850,26391.44
19842,111,6511,929,2017,56542,03293.71
19872,114,6561,831,77711,18440,43389.06
19902,202,1571,824,09210,18042,84385.24

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. Most electors cast their votes at polling booths in their electorates on polling day, but they may vote as special voters at booths outside their electorate. Special votes may also be cast before polling day at issuing offices or at home because of sickness, travel, or similar reasons. Provision is also made for voting overseas.

Voting is by secret ballot. A preliminary count of ordinary votes is available for each electorate on election night, and final results are normally available a fortnight later, once special and overseas votes have been received and counted. The candidate with the most votes is elected member of Parliament for the electorate concerned.

Electoral boundaries. The boundaries of electorates are revised every five years after the Census of Population and Dwellings, and the new boundaries come into effect at the expiry of the parliamentary term during which the revision is finalised. Statistics New Zealand 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 four 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.); and (b) some temporary residents of various kinds.

The Representation Commission is responsible for defining the boundaries of electorates based on the population census. The commission has seven members. Four are officials, the Surveyor-General, the Government Statistician, the Chief Electoral Officer and the Chairman of the Local Government Commission (the latter cannot vote). Two members 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.

In determining the boundaries of the Maori electoral districts, the commission's membership is supplemented by the Chief Executive of the Ministry of Maori Development and two nominations from the House of Representatives (one each from the Government and the Opposition) and appointed by the Governor-General. These additional members to the commission must be Maori.

VOTER TURNOUT
Percentage of enrolled electors voting at general elections

1992 ELECTORAL DISTRICTS - NORTH ISLAND

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 four Maori electorates.

Provisional boundaries are then settled, maps drawn up and the availability of boundary details announced in the New Zealand Gazette. Any objections and counter-objections to the provisional electoral boundaries are then considered by the Representation Commission, which makes a final decision on the boundaries that define the new electoral districts.

General election results. A triennial general election of members of Parliament was last held on 27 October 1990. The previous election was held on 15 August 1987. The total number of electors on the master roll for the 1990 election was 2,202,157. A total of 1,877,115 votes were cast; representing 85.24 percent of electors on the Master Roll.

1992 ELECTORAL DISTRICTS - SOUTH ISLAND

Table 2.11. GENERAL ELECTION RESULTS

 Number of MPs
Political party198119841987*1990

*Includes result of electoral petition which was upheld and saw Wairarapa seat pass from Labour to National in July 1988.

Source:Source: Department of Justice.

Democrats22--
Labour43565729
National47374067
New Labour---1
        Total92959797

Table 2.12. GENERAL ELECTIONS—VOTES FOR POLITICAL PARTIES

 Valid votesPercentage of total valid votes
Political party198119841987*19901981198419871990

*Includes adjustments consequent upon the Wairarapa Election Petition Judgment dated 12 July 1988.

†Social Credit/Democrats.

‡Excludes special votes disallowed.

Source: Department of Justice.

Democrats†372,056147,162105,09130,45520.657.635.741.67
Green---124,915---6.85
Labour702,630829,154878,448640,91539.0142.9847.9635.14
Mana Motuhake8,3325,9899,78910,8690.460.310.530.6
National698,508692,494806,305872,35838.7835.8944.0247.82
New Labour---94,171---5.16
Others19,77718,01726,83850,4091.100.941.462.76
Total valid votes1 801 3031 929 2011 831 7771 824 092100.00100.00100.00100.00
Informal votes‡8,9987,56511,18410,180............
Total1 810 3011 936 7661 842 9611 834 272............

PARLIAMENTARY REPRESENTATION

Average number of votes cast per seat at general elections

Table 2.13. SEATS CONTESTED BY POLITICAL PARTIES, 1990 GENERAL ELECTION

Political partySeats contested

*All those contesting one seat only.

Source: Department of Justice.

Labour97
National97
New Labour93
Democrats92
Green71
Social Credit68
McGillicuddy Serious60
Independent39
Christian Heritage18
Communist League10
New Zealand5
Mana Motuhake4
People's Party4
Blokes Liberation Front3
Legalise Marijuana2
NZ Representative2
Other*12
        Total candidates677

Northland kumara shed doubles as polling booth.

General Licensing Poll. In 1990 the national triennial liquor licensing poll was abolished.

Term Poll. A term poll was held in conjunction with the 1990 General Election. The voting issue was the length of the parliamentary term. The two options offered were either a continuation of the three year term or an extension of the term to four years. The voting was approximately 70 percent in support of retaining a three year term.

Table 2.14. RESULTS OF TERM POLL 1990

Voting issue1990Percentage of vote
Source: Department of Justice.
For a 3 year parliamentary term1,258,01869.33
For a 4 year parliamentary term556,55930.67

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 or by the Governor-General in Council or the Administrator of the Government, 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 greater prestige. A committee of inquiry may be set up by a minister to investigate some matter, but such a committee normally has no statutory basis, although there are ancillary powers in some instances.

Amendments to the legislation in 1980 conferred new rights to appear and be heard at an inquiry 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. In addition, any person who satisfies the commission that any evidence may adversely affect his or her interests has a right to be given an opportunity to be heard in respect of the matter. Usually such terms of reference for a commission are quite specific. 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 Act 1908 and provides basic services to 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 to his or her ministers. The reports are usually published.

2.3 State sector

The state sector exists to put the policies of the Government into effect. It comprises government departments, crown-owned entities, and state-owned enterprises.

At 30 June 1993 the number of staff employed in public service departments was 36,040—this compares with 42,894 a year earlier. Much of the decrease reflects transfers of functions and staff from a number of departments to the newly established Crown Research Institutes, and to other new Crown entities including regional health authorities and the Civil Aviation Authority, and transfers following the merger of the Traffic Safety Service of the Ministry of Transport with the Police.

State sector reform

Since the mid-1980s the state sector has been substantially reformed and restructured. Until 1984 the business of the state was conducted by, and largely through, traditionally structured public service departments, which mixed policy, regulatory, service delivery and trading functions, supplemented by a few government-owned corporations, some of which also had mixed trading and regulatory functions. The public service was centrally managed through the State Services Commission, as employer of all departmental staff, and through The Treasury, as financial controller.

  • In reforming the state sector, Government was guided by five principles.

  • The state should not be involved in any activities that would be more efficiently and effectively performed by the community or by private businesses.

  • Trading enterprises would operate most efficiently and effectively if structured very much along the lines of private sector businesses.

    THE PUBLIC SERVICE
    Ratio of male to female staff

  • Departments would operate most efficiently and effectively with clearly specified and unambiguous functions.

  • Departmental managers would perform most effectively if made fully accountable for the efficient running of their organisations, without central control.

  • The costs of state activities should, as far as practicable, be fixed through real market factors: namely, that the quality, quantity and cost of products should be determined by the purchaser's requirements.

These broad principles were reflected in three important pieces of legislation:

  • The State Owned Enterprises Act 1986 provided the basis for converting the old trading departments and corporations (such as the Electricity Division and Mines Division of the Ministry of Energy, and the Postal Division and the Telecommunications Division of the New Zealand Post Office) into businesses along private sector lines.

  • The State Sector Act 1988 made departmental chief executives fully accountable for managing their organisations efficiently and effectively, and changed the role of the State Services Commission from employer and manager of the public service to employer of the chief executives. The commission is also the advisor to chief executives and government about management of the state sector.

  • The Public Finance Act 1989 changed the basis of state sector financial management from a focus on inputs (the costs of production) to focuses on outputs (the relevance and value of actual products) and on outcomes (the overall results of these outputs from the Government's point of view).

Against the background of this legislation, a great deal of work has been carried out over the last eight years on grouping the business activities of the public service and the state sector agencies more consistently. As a result of this process many departments disappeared, some were replaced by new agencies, others had their functions and size altered dramatically, while a few were converted into state-owned enterprises, some of which have since been sold.

The scale of the change can be best seen in the shape and size of the public service. When the reforms began there were only two departments with fewer than 100 staff; now there are 11 of that size. Ten years ago the service was dominated by a dozen quite large departments, including Works and Development, Forestry, Energy, Education, Housing, Inland Revenue, Social Welfare and Justice. Now half of the public service works in just the last three. When the reforms began nearly 88,000 people worked in the departments of the public service; in 1993 the figure was just over 36,000.

The new public service is characterised by relatively small departments with quite sharply defined policy advice, regulatory and sectorial funding functions.

The latest phase of restructuring in the state sector has seen the Ministry of Transport shed most of its regulatory functions to focus on policy advice, the Area Health Boards replaced by a new network of Regional Health Authorities and Crown Health Enterprises, and the Department of Health change in focus to become the Ministry of Health.

Policy changes

Government policy concerning state assets is to sell those it lacks reason to retain. The view of the Government is that public ownership of business enterprises does not provide the right incentives to manage such enterprises successfully. The sales of state assets is also a part of a fiscal strategy to reduce the level of public debt. Several state-owned enterprises and trading units of government departments have been sold. The Government is currently reviewing a number of state-owned enterprises for possible sale.

Widespread changes to the role of the Government in social policy are continuing. The goal of Government is that an integrated approach be taken to social policy to achieve consistency in housing, welfare, health, accident compensation and education. This includes:

  • Focusing social assistance on those in genuine need.

  • Making providers of social services more responsive to the needs of individuals and their families.

  • Providing services that the country can afford.

State Services Commissioner

The State Sector Act 1988 provides for a State Services Commission and for the positions of a State Services Commissioner and Deputy State Services Commissioner.

The commission is government's principal advisor on public sector organisational development and human resource management. The State Services Commissioner is responsible to the Minister of State Services for management of the State Services Commission. Both the commissioner and the deputy commissioner are, however, required to act independently in matters about individual employees, and in some aspects of the appointment and employment of departmental chief executives.

The commissioner's principal functions relate to the Public Service. They include:

  • The appointment of chief executives and the provision support of services to them.

  • Advising the Government on the design, operation and performance of the public service.

  • Reviewing the performance of departments and their managers.

  • Negotiating collective employment contracts for public servants.

  • Promoting personnel policies for the public service, including Equal Employment Opportunities policies and programmes.

  • Advising on management systems and organisations for the public service.

  • Advising on training and career development of public servants.

The commission also helps government to mange major changes in the state sector. The State Sector Act enables the Prime Minister to direct the commissioner to undertake other tasks and assignments that might be required to assist the Government in the management of the State sector.

Equal employment opportunities. Through the State Sector Act the Commission is responsible for promoting, developing and monitoring Equal Employment Opportunities (EEO) programmes in departments of the public service. The purpose of such programmes is defined in the Act as ‘...the identification and elimination of all aspects of policies, procedures and other institutional barriers that cause or perpetuate, or tend to cause or perpetuate inequality in respect to the employment of any persons or group of persons.’

Each department is required to develop and publish an annual EEO programme and to report to the commission about how well it has been able to implement the programme. The commission monitors progress and provides practical advice and support to departments to help them achieve their EEO objectives.

Table 2.15. CHIEF EXECUTIVES OF GOVERNMENT DEPARTMENTS*

DepartmentTitleName
*As at 1 January 1994.
Agriculture and Fisheries, Ministry ofDirector-GeneralR Ballard
AuditController and Auditor-GeneralJT Chapman
Commerce, Ministry ofSecretaryMJ Belgrave
Conservation, Department ofDirector-GeneralWR Mansfield
Crown Law OfficeSolicitor-GeneralJJ McGrath QC
Cultural Affairs, Ministry ofChief ExecutiveCH Blake
CustomsComptrollerGW Ludlow
Defence, Ministry ofSecretaryGC Hensley
Education, Ministry ofChief ExecutiveML O'Rourke
Environment, Ministry for the Foreign Affairs and Trade,SecretaryRWG Blakeley
Ministry ofSecretaryRF Nottage
Forestry, Ministry ofSecretaryJM Valentine
Government Superannuation FundChief ExecutiveR Evans
Health, Ministry ofDirector-GeneralJC Lovelace
Housing, Ministry ofChief ExecutiveRG Laking
Inland Revenue DepartmentCommissionerDR Henry
Internal Affairs, Department ofChief ExecutiveRP Cameron
Justice, Department ofSecretaryD Oughton
Labour, Department ofSecretaryCJ McKenzie
Maori Development, Ministry ofChief ExecutiveHT Gardiner
National LibraryNational LibrarianPG Scott
Pacific Island AffairsChief ExecutiveA Rongo-Raea
Prime Minister and Cabinet, Department ofChief ExecutiveS Murdoch
Public Trust OfficePublic TrusteeDR Hutton
Research, Science and Technology, Ministry ofChief ExecutiveBV Walker
Serious Fraud OfficeChief ExecutiveC Sturt
Social Welfare, Department ofDirector-GeneralMC Bazley
State Services CommissionState Services CommissionerDK Hunn
Statistics New ZealandGovernment StatisticianLW Cook
Survey and Land Information, Department ofDirector-GeneralWA Robertson
Transport, Ministry ofSecretaryS Milne
The TreasurySecretaryM Horn
Valuation New ZealandValuer-GeneralHF McDonald
Women's Affairs, Ministry ofSecretaryEC Rowe
Youth Affairs, Office ofChief ExecutiveJY Quinnell

Functions of government departments

The functions of central government are under a continual process of review. The following account of departments was correct as at November 1993.

Agriculture and Fisheries, Ministry of. (Te Manatū Ahuwhenua, Ahumoana.) The ministry provides policy advice to government designed to create a domestic and international environment favourable to the sustainable and productive use of New Zealand's agricultural and fisheries and resources. It also implements the Government's policies and programmes to drive maximum benefit to the nation from farming, horticulture and fishing.

MAF's programmes aim to protect our competitive advantage as an export nation by monitoring animals, fish and plants, and preventing the introduction of exotic pests and diseases. Also, through quality assurance, it ensures that our export primary produce meets agreed standards. See chapter 16, Agriculture and section 17.3 Fisheries.

Audit Office. See ‘Controller and Auditor-General’ below.

Ministry of Commerce. (Te Manatū Tauhokohoko.) The ministry has advisory, programme and administrative functions in business development, competition policy, business and intellectual law, tariff policy, trade remedies, communications, regional development, energy and resources, consumer affairs and tourism.

The ministry services the portfolios of Commerce, Communications, Consumer Affairs, Energy, Tourism, Industry and Business Development.

Conservation, Department of. (Te Papa Atawhai.) The department is responsible for the management of much of New Zealand's natural lands and water, as well as historic places and wildlife. In addition to managing national parks and reserves, forest and farm parks, the coastal marine area (in partnership with regional councils) and marine reserves, the department is also the Government's advocate in conservation issues. See chapter 15, Land and environment.

Crown Law Office.

The Crown Law Office is the legal adviser to, 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 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.

Cultural Affairs, Ministry of. (Te Manatū Tikanga-ā-Iwi.) The aim of the ministry is to maximise understanding, appreciation, access and participation in New Zealand arts and culture both in New Zealand and overseas, and to promote the enhancement of New Zealand's cultural identity.

The ministry provides advice to Government and the Minister of Cultural Affairs on cultural matters and discharges services relating to the Cultural Affairs portfolio. See chapter 11, Arts.

Customs Department. (Te Mana Arai O Aotearoa.) The department is charged with the administration of border control and some indirect taxation, and the tendering of advice to the Government on these and associated matters. The department performs a number of roles under the Customs Acts and other enabling legislation. These include: the administration of the tariff at the border; protecting New Zealand's borders by exercising the required control over the export and import of goods and international passengers in accord with the immigration, emigration, quarantine, and other statutory and government policy requirements (with particular attention to controlled drugs); and providing a service to commerce through the effective administration of customs procedures, and the facilitation of cargo movements. See section 23.1, Administration and development of trade.

Defence, Ministry of. (Te Manatū Kaupapa Waonga.) The Ministry of Defence is the Government's principal source of advice on defence policy. It also carries out audits and assessments on the performance of the defence organisations and manages procurement projects which entail a significant change to New Zealand's defence capability. In many matters the ministry works jointly with the New Zealand Defence Force. See section 3.4 Defence.

Education, Ministry of. (Te Tāhuhu o te Matauranga.) The ministry is responsible for providing policy advice to the Minister of Education on all aspects of education from early childhood to tertiary; overseeing the implementation of approved policies and ensuring the optimum use of resources devoted to education. See chapter 8, Education.

Education Review Office. (Te Tari Arotake Matauranga.) The general purpose of the Education Review Office is to provide regular, independent, high quality evaluative reports for the Minister; the governing authorities and managers of schools and early childhood centres; and all those with an interest in the performance of the education sector and the educational achievements of learners.

Environment, Ministry for the. (Te Manatū mō tē Taiao.) The role of the Ministry for the Environment is to provide policy advice to the Government that promotes sustainable management of the environment; and to encourage sustainable management of the environment through the administration of environmental statutes, advocacy, education and advice.

The Environment Act 1986 defines environment as encompassing ecosystems and their constituent parts, all natural and physical resources (including buildings and man-made structures), and the social, economic, aesthetic and cultural conditions which affect the environment or which are affected by changes to the environment.

To carry out its role, the ministry gathers information and may conduct and commission research necessary for formulating advice to the Government. It also provides the Government, its agencies, and other public authorities, with advice on: the application, operation, and effectiveness of legislation relevant to achieving the objectives of the Environment Act; procedures for assessing and monitoring environmental impacts; pollution control and the management of pollutants; identification and likelihood of natural hazards, and the reduction of their effects; and the control of hazardous substances, during the management of their manufacture, storage, transport, and disposal.

As well, the ministry works towards the resolution of conflicts relating to policies and proposals which may affect the environment. It also provides and disseminates information on environmental policies.

Besides the Environment Act 1986, the ministry administers the Soil Conservation and Rivers Control Act 1941, the Ozone Layer Protection Act 1990 and the Resource Management Act 1991, plus it also has responsibility for regulations made pursuant to the Resource Management Act. See section 15.2, Environmental and resource management.

Foreign Affairs and Trade, Ministry of. (Te Manatū Aorere.) The Ministry of Foreign Affairs and Trade conducts the Government's business with foreign countries and their governments, and with international organisations.

It advises the Government on where New Zealand's advantage lies in relation to other countries. On behalf of the Government, it intervenes with other governments to promote New Zealand's interests.

It looks at New Zealand's relations with other countries as a whole. It draws together the various aspects of New Zealand's national interests including relevant domestic interests to achieve most benefit for New Zealand in relation to the Government's security, political, trade and economic objectives. In addition the ministry is responsible for management and support of New Zealand operations in the Antarctic through the New Zealand Antarctic Programme.

Forestry, Ministry of. (Te Manatū Ngāherehere.) The Government's forestry agency is responsible for facilitating the optimal contribution from forestry and forestry products for New Zealand's sustainable development and economic growth. This is achieved by providing information and advice to Government; communicating and managing the implementation of government policies; representing Government's interests in New Zealand and internationally; ensuring the Crown's obligations are met; and ensuring that authoritative information is available on the sector. See sections 17.1 and 17.2.

Government Superannuation Fund Department. (Te Pūtea Penihana Kawanatanga.) The function of the department is to provide professional management of superannuation schemes constituted under the Government Superannuation Fund Act 1956.

Health, Ministry of. (Manatu Hauora.) The Ministry of Health is government's chief advisor and monitoring agent for health and disability support services. The principal functions of the Ministry are; (a) strategic planning for the health and disability sector, and forecasting/risk assessment; (b) assessing national health needs, (c) sector oversight and coordination; (d) advising on health policy; (e) specifying and analysing health services; (f) administering health regulations and legislation; (g) funding management and monitoring health sector performance; (h) provision of national health information services; and (i) provision of some national services. These roles are carried out to contribute to the outcomes for health sought by government. See chapter 7 Health and safety.

Housing, Ministry of. The ministry's main functions are the provision of: high quality and timely policy advice on housing to the Government; and efficient and effective tenancy bond and dispute resolution services across New Zealand. See section 20.4, Reform of housing assistance.

Housing Corporation. (Te Kaporeihana Whare.) The corporation provides loan facilities to low income home-owners. It is also responsible for the disposal of land and surplus property assets that were not transferred to Housing New Zealand Limited when this Crown-owned company was established in 1992 to manage New Zealand's state houses.

Inland Revenue Department. (Te Tari Taake.) The main function of the Inland Revenue Department is to assess and collect various taxes and duties. However, along with taxes such as income tax, goods and services tax, fringe benefit tax and resident withholding tax, Inland Revenue also collects accident compensation levies on behalf of the Accident Rehabilitation and Compensation Insurance Corporation. Inland Revenue also administers family support, child support, the guaranteed family income scheme and student loan repayments.

Internal Affairs, Department of. (Te Tari Taiwhenua.) The mission of the department is to deliver excellent services relating to the nation's identity, heritage and administration of value to the Government and community. It provides services that: (a) protect and develop essential aspects of the nation's character, identity and heritage, including the public record and citizenship rights; (b) support the Crown and Government agencies, taking into account the provisions of the Treaty of Waitangi, and including the establishment and nurture of new agencies; (c) provide the link between central and local government; (d) help people to develop their communities; (e) safeguard the public interest in certain leisure activities; and (f) protect people against disaster, and promote fire and building safety.

Justice, Department of. The department has a wide variety of functions including: administration of courts; registration of land transactions, births, deaths and marriages; control of prisoners, people on community based sentences and parolees; law reform; commercial affairs (including administration of the Companies Act 1955); 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 about 160 Acts of Parliament.

Labour, Department of. The principal responsibilities of the Department of Labour are to help unemployed job seekers into work through the provision of an employment service; to assist communities to identify and develop local employment initiatives; to ensure, through the work of its field staff, that workers are employed under safe and healthy working conditions; to administer labour legislation and service labour institutions; and to administer immigration legislation and policy, in particular by selecting migrants best able to benefit New Zealand. Among the most important legislation administered are the Employment Contracts Act 1991, the Health And Safety In Employment Act 1992 and the Immigration Act 1987.

Maori Development, Ministry of. (Te Puni Kokiri.) Te Puni Kokiri was established on 1 January 1992, replacing Manatu Maori (Ministry of Maori Affairs) and Te Tira Ahu Iwi (Iwi Transition Agency) which, in turn, replaced the Department of Maori Affairs. Its role is to ensure Maori participate equally and fully in both public and private sectors by ensuring better access to resources.

Education, health, employment and asset management are key areas in which Te Puni Kokiri will support Maori endeavour and encourage excellence. Policy advice in these areas will focus on: (a) the design, target direction and delivery of appropriate services: (b) increasing effective access to an acceptable range of services; (c) raising the education, health and employment profiles of Maori; (d) creating business, social and community environments which welcome increased participation by Maori in partnership, programmes and services; and (e) maximising returns from Maori resources. There are 13 regional offices and six iwi provider contacts to assist iwi to access resources from government, private and voluntary sector agencies. See section 5.4, Maori society.

National Library of New Zealand. (Te Puna Matauranga o Aotearoa.) The National Library is the principal adviser to government on library policy and information issues. It collects, preserves and makes available an important part of the documentary history of New Zealand, and makes available an authoritative record of New Zealand publishing. The National Library co-ordinates the availability of national information resources and delivers information through the New Zealand library system.

National Provident Fund. The National Provident Fund comprises 17 superannuation schemes and a global asset trust through which the schemes’ assets are managed. The superannuation schemes are provided to individuals, employees of private sector businesses, employees of local authorities, electrical supply authorities, Crown Health enterprises, and other governmental and quasi-governmental organisations. See section 22.3, Insurance and superannuation.

Pacific Island Affairs, Ministry of. This small group advises the Minister of Pacific Island Affairs, while providing administrative back-up and co-ordination of the above council and other programmes. The ministry establishes and maintains liaison with and between Pacific Island communities in New Zealand and government agencies; monitors, reports and promotes issues related to the communities; and is developing a resource base on Pacific Island matters. See section 5.5, Pacific Island Polynesian population.

Police, New Zealand. (Ngā Pirihimana o Aotearoa.) The mission of the police is to contribute to the provision of a safe and secure environment where people may go about their lawful business unhindered. The aim of the police is to establish and maintain a partnership between themselves and the communities they serve; maintain public safety, order and the rule of law; retain public confidence and satisfaction in the services they provide; minimise the incidence and effects of crime; and provide community support and protection during disasters and emergencies. The New Zealand Police is a state agency. See section 9.4, Police.

Prime Minister and Cabinet, Department of the. The department provides advice to the Prime Minister on policy, constitutional and administrative issues and provides secretariat support to the Executive Council and Cabinet. It provides support services to the Governor-General and manages the Governor-General's residences. Through the External Assessments Bureau it provides intelligence assessments to the Government on developments overseas.

The department contributes to the effective co-ordination of government across departmental lines, tests the quality of advice coming from departments and acts as an ‘honest broker’ where there are conflicts over policy advice being offered by different parts of the public sector.

The department from time to time undertakes special operational functions. Its major task for 1993-94 is the establishment of a Crime Prevention Unit. See section 2.2, Parliament and the Cabinet.

Public Trust Office, The. 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 income earning.

Research, Science and Technology, Ministry of. (Te Manatū Putaiao.) Established in October 1989, the ministry's primary role is to provide advice to government on the overall policy framework, priorities and funding for research, science and technology. It is also responsible for gathering and disseminating statistics and descriptive information on research, science and technology activities and for administering government-to-government science relations. The Office of the Chief Scientist is also based in the ministry and plays an important role in ensuring the provision of technical input into government policy development. See section 14.1, Organisation of science.

Serious Fraud Office. The Serious Fraud Office, which became operational on 26 March 1990, is primarily an operational department whose role is to detect and investigate cases of serious or complex fraud and expeditiously prosecute offenders. Based in Auckland, the office is the only government department to have its Head Office outside Wellington. See section 22.2, Commercial framework.

Social Welfare, Department of. (Te Tari Toko i te Ora.) The principal functions of the Department of Social Welfare are: (a) to administer Parts I and III of the Social Security Act 1964, the Social Welfare (Transitional Provisions) Act 1990, the Disabled Persons Community Welfare Act 1975, the Children Young Persons and Their Families Act 1989, and the War Pensions Act 1954; (b) to advise the minister on the Development of Social Welfare Policies for New Zealand; (c) to provide such welfare services as the Government may from time to time require: (d) to maintain close liaison with and encourage co-operation and coordination among any organisations and individuals (including departments of state and other agencies of the Crown) engaged in social welfare activities; (e) to undertake and promote research into aspects of social welfare; (f) to provide such administrative services as the minister may from time to time direct to such boards, councils, committees, and agencies as he or she may direct; (g) to receive and disburse maintenance payments and enforce arrears in payments due under maintenance orders and registered agreements prior to the Child Support Act 1991 coming into force; and (h) under the Civil Defence Welfare Plan, in time of disaster—to make relief payments authorised by government to the homeless, and—to make payments authorised by government for hosts for billeting evacuees from a disaster area.

State Services Commission. (Te Kōmihana o ngā Tari Kāwanatanga.) See ‘State Services Commissioner’ above.

Statistics New Zealand. (Te Tari Tatau.) The main functions of the department are: (a) to provide a 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.

Survey and Land Information, Department of. (Te Puna Kōrero Whenua.) The department is the principal government (civil and military) survey and mapping, and land information agency. Through the Office of Crown Lands the department is also the government's principal Crown land administering agency. The department's work includes control surveys as the basis for cadastral surveys and basic topographic mapping, land title surveys, investigations into the status of Crown land and Maori land, 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, environmental planning of land, and a graphic support for the electoral system.

The main acts administered by the department are the Survey Act 1986, Public Works Act 1981, Land Settlement Promotion and Land Acquisition Act 1952, Land Act 1948, the New Zealand Geographic Board Act 1946 and Crown Grants Act 1908. In addition in excess of 50 other statutes empower the department with specific responsibilities for land transactions. Proposals for the Reserves and Other Lands Disposal Bill are also collated by the department. See section 15.1, Land resources and ownership.

Tourism, Ministry of. This ministry operates from within the Ministry of Commerce, providing policy advice to, and representing, the Minister of Tourism and the Government on policy issues relevant to the tourism sector. It advises the Government on the outputs it purchases from the New Zealand Tourism Board, manages government grant schemes relating to the tourism sector, manages land at Rotorua and the Wairakei Tourist Park, and is responsible for the Maori Arts and Crafts Institute Act 1991.

Tourism Board, New Zealand. The main functions of the New Zealand Tourism Board are to market and promote New Zealand's tourism development and initiate programmes to foster this development; administer jointly-funded public and private sector marketing programmes; and undertake research of visitor arrivals, overseas tourism markets and regional tourism. The New Zealand Tourism Board is headed by a nine member private sector executive board appointed by the Minister of Tourism. The board has 15 overseas marketing offices. See Section 12.6, Leisure.

Trade Development Board (TRADENZ), New Zealand. The role of Tradenz (The New Zealand Trade Development Board) is to help New Zealand business increase foreign exchange earnings. Tradenz does this by working with New Zealand exporters to identify and capitalise on market opportunities and by improving companies’ ability to compete profitably overseas.

Transport, Ministry of. (Te Manatū Waka.) The Ministry of Transport promotes safe and sustainable transport at reasonable cost. The ministry is responsible for administering about 20 principal Acts including the Civil Aviation Act, the Shipping and Seamen Act and the Transport Act.

The core department's functions are largely policy oriented—ensuring that the Government receives high quality advice and information relating to the promotion of safe, sustainable transport at reasonable cost. As the Minister of Transport's agent, the ministry plays an important role in negotiating and monitoring contracts with the stand alone Civil Aviation Maritime Safety and Land Transport Safety Authorities. It also monitors the Government's contract on severe weather warnings with MetService New Zealand Limited and manages the Land Transport Fund. Development of any legislation for the transport sector is the ministry's responsibility. The other significant function of the ministry is to formulate and implement policies relating to domestic and international air transport, other than safety matters. It also advises government in relation to the Crown's interests in airport companies and joint venture airports operated in partnership with local authorities.

Treasury, The. The principal functions of Treasury are to: provide the Government with independent economic and financial advice; implement the Government's economic and financial policies; control and account for the receipt and payment of government finances; and to provide financial information on the operations of the Government. It also includes the Government Actuary's Office.

Valuation New Zealand. 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 five-yearly intervals. Since 1988 the department has introduced a three-yearly cycle. Between the three 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, 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 complies house and rural price indexes. It provides an advisory service to local authorities 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 both to local authorities and other public sector organisations. See section 15.1, Land resources and ownership.

Women's Affairs, Ministry of. (Te Minitatanga mō ngā Wāhine.) This ministry was established in 1984 to assist the Government to improve the status of women and to work towards the achievement of equality in all spheres of social, political and economic activity. The ministry's primary function is to advise the Minister of Women's Affairs. In carrying out this function the ministry provides specialist advice on legislative and other policy matters affecting the status of women and undertakes educational and information programmes designed to increase women's knowledge of and familiarity with the scope and processes of public policy-making. See section 5.3, Human rights, immigration and citizenship.

Youth Affairs, Ministry of. (Te Tari Taiohi.) This ministry was established to represent the youth of New Zealand; to ensure that the concerns of the young people (defined as people from the ages of 12 to 25) of New Zealand are heard by the makers of policies, services and legislation, and to allow young people to make a contribution to the cultural, social and economic development of this country.

The ministry works through three main areas; policy advice to the Minister of Youth Affairs and Government, liaison services gathering input from young people and youth networking, and administering the Conservation Corps programme, which provides young people with opportunities for employment, training and personal development through conservation activities of benefit to local communities.

Non-departmental public bodies

Crown-owned entities. These are organisations (in some cases statutory officers) that while not departments of the public service or state-owned enterprises, belong to the Crown. They are named in a schedule to the Public Finance Act 1989. Some well-known Crown entities are the Queen Elizabeth the Second Arts Council, the New Zealand Symphony Orchestra, the Human Rights Commission and the New Zealand Fire Service Commission.

State-owned enterprises. State-owned enterprises are companies established by the Government to manage its trading activities. The principle objective of every state-owned enterprise is to operate as a successful business and, to this end, to be:

  • As profitable and efficient as comparable businesses that are not owned by the Crown.

  • A good employer.

  • An organisation that exhibits a sense of social responsibility by having regard to the interests of the community in which it operates and by endeavouring to accommodate or encourage these when able to do so.

An annual statement of intent is signed between the shareholding government ministers and the board of directors of the respective state-owned enterprise. Performance of the enterprise is monitored against this statement.

In addition to the state service organisations there is a multitude of advisory bodies, statutory corporations, companies, councils, commissions, committees, tribunals and other organisations loosely connected to the Government.

Controller and Auditor-General

The Controller and Auditor-General is an officer of the Crown appointed by the Governor-General under the Public Finance Act 1977. The position is independent of the executive government and only the Governor-General, upon an address from the House of Representatives, can end the tenure. The Controller and Auditor-General and the persons acting under his or her delegation are collectively called ‘the Audit Office’.

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

The Audit Office audits the financial statements of government departments, local authorities, and most government-controlled corporations, boards and companies. The office plays a key part in the accountability by these organisations. It also conducts periodic reviews of financial control systems, selected programmes or operations to ascertain whether resources have been applied effectively and efficiently in a manner consistent with the policies of the governing bodies.

Considerable emphasis is placed on reporting the results of this work. The most visible results are their financial audit reports tabled in Parliament each year.

If shortcomings are discovered during an audit, the principal recourse of the Audit Office is to report to the management of the organisation, to a minister, or to Parliament and its select committees. If there is a deficiency in money or stores, the Auditor-General has the power to surcharge the persons involved to recover the amount. This power is rarely used.

The Controller and Auditor-General uses a mix of his own staff and chartered accounting firms to carry out individual audits in accordance with requirements laid down by him. Approximately 40 percent of the audits are currently tendered out on a competitive basis between private sector firms and the operational arm of the Audit Office.

Official information

The Official Information Act 1982 is based on the principle that information shall be made available unless there is good reason for withholding it. The purposes of the Act are: to provide proper access to official information to the people of New Zealand, to encourage their participation in the making and administration of laws and policies; to promote the accountability of ministers and officials; and to protect official information consistent with the public interest and the preservation of personal privacy. Here, personal privacy refers to a sole corporation and a body of persons only.

With the exception of the Parliamentary Service, the Official Information Act covers all government departments, state-owned enterprises, and a range of statutory bodies. It does not include courts, tribunals (in relation to their judicial function), or some judicial bodies. All local authorities and statutory boards are covered under either the Official Information Act 1982 or the Local Government Official Information and Meetings Act 1987.

The Acts provide special rights of access to personal information. The definition of a ‘person’ can include a sole corporation and a body of persons. The protection of the privacy of natural persons is an important issue, however, this consideration may be overturned if it is in the public interest to make the information available.

Among the criteria to be considered, when judging whether information should be with-held, are that if the information is released will it prejudice the security, defence, or economic international relations of New Zealand; the maintenance of law and order; the effective conduct of public affairs; trade secrets and commercial sensitivity; personal privacy and the safety of any person.

Ombudsmen can review a decision to refuse information; the investigation is private and free of charge. The formal recommendation of an Ombudsman is binding unless overridden by a minister in accordance with a formal procedure.

An information guide concerning access to personal and official information is available from the Department of Justice. In order to provide sufficient data to ease the identification of material and assist in the lodging of requests, reference can be made to the Directory of Official Information. Published every two years, the Directory is a comprehensive guide to all the organisations covered by the Act including their structure, functions, policies, documents held, contact officers and other listings which facilitate the access of information.

The daily commute to work, Wellington.

Ombudsmen

The principal function of the Parliamentary Commissioner for Investigations (Ombudsman) is to enquire into complaints relating to administrative decisions of government departments and related organisations, Crown health enterprises and regional health authorities. Under the Ombudsmen Act 1975 there is provision for the appointment of a Chief Ombudsman and one or more other ombudsmen, in either temporary or permanent positions.

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

Ombudsmen also investigate recommendations made to a minister by any government department, organisation or employee. Similarly, they look into any recommendations made to a full council or board of a local organisation by any committee, sub-committee, officer, employee, or member. It is also the responsibility of the Ombudsmen to investigate any complaints on decisions for the request of official information.

Ombudsmen have no authority to investigate complaints against private companies and individuals, decisions of judges, complaints directed at ministerial decisions, or at the full council of local government. They can also decide that certain complaints, although within their sphere, are better suited to other available avenues of administrative redress.

Table 2.16. COMPLAINTS TO THE OMBUDSMEN, 1992-93*

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

*Year ended 30 June.

Source: Office of the Ombudsmen.

Declined, no jurisdiction219254
Declined or discontinued section 174321172
Resolved in course of investigation15227945
Resolved informally9416711
Sustained, recommendation made28184
Sustained, no recommendation made378-
Not sustained49825344
Formal investigation not undertaken, explanation, advice, or assistance given63911822
Still under investigation as at 30 June39728332
        Total2 4961 268164

Parliamentary Commissioner for the Environment

This parliamentary office was established in 1987 as part of the restructuring of the government's administration of the environment.

The Parliamentary Commissioner for the Environment (Te Kaitiaki Taiao a Te Whare Pōremata) was also created in response to significant public demands for an independent authority to review and publicly report on the environmental effects of central and local government works and policies.

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

The principal functions of the Commissioner comprise:

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

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

The Commissioner is also responsible for carrying out inquiries requested by the House of Representatives and for providing reports on proposed legislation, petitions and other matters of environmental significance under consideration by the House. The commissioner's reports of investigation are published, the House advised of findings and advice is given to public authorities on ways to improve environmental management. With the exception of requests and directions made by the House of Representatives, the commissioner has the discretion to determine which reviews and investigations are conducted.

The office is small with an equivalent full-time staff of 12.

The Environment Act sets out matters for the Commissioner to consider when exercising the functions of the office. The matters are diverse, including the maintenance and restoration of important ecosystems, the protection of the heritage of the tangata whenua, the prevention of pollution and the effects on communities of actual or proposed changes to natural and physical resources.

Table 2.17. REPORTS AND PAPERS BY THE PARLIAMENTARY COMMISSIONER FOR THE ENVIRONMENT 1992-93

Source: Parliamentary Commissioner for the Environment.
Investigation reports82
Information transfer papers84
Reports for House Committees5
Reports on public authority responses to commissioner's advice10
        Total181

2.4 Local government

New Zealand has a system of local government that is largely independent of the central executive government. It has, however, a subordinate role in the constitution as the powers of local authorities are only those conferred by Parliament.

Local authorities fall into three categories: regional, territorial and special purpose authorities. Many territorial authorities contain one or more communities administered by community boards, but these are not separate local authorities. The Local Government Act 1974 is the statute constituting regional councils and territorial authorities. Their boundaries are usually defined by the Local Government Commission. They have their own sources of income independent of central government, and the basic source of income (apart from the income of trading activities under the control of territorial authorities) is local taxes on landed property (rates). Rates are set by the local authorities themselves, subject to the Rating Powers Act 1988. The six special purpose authorities are constituted under their own Acts.

Several important statutes apply not only to local authorities as defined in the Local Government Act, but to a wider range of public bodies. These include: the Local Authorities Loans Act 1956; the Local Government Official Information and Meetings Act 1987; the Local Authorities (Members’ Interests) Act 1968; and the Local Elections and Polls Act 1976.

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

Under Parliamentary Standing Orders, local authorities can promote legislation about matters affecting areas within their jurisdiction which they are not empowered to deal with already. Where permanent or major additional powers are sought, a local bill must be prepared for the consideration of Parliament. If this is enacted it becomes a local Act, and applies only to the body or bodies which promoted it.

Local authorities are answerable above all to their electorates, through triennial general elections. Legislation includes numerous provisions for local authorities to give public notice and receive public submissions before making certain important decisions. The Local Government Official Information and Meetings Act 1987 promotes open conduct of local authority meetings and sets out rights of access to official information. Local authorities may also come under the scrutiny of the Ombudsman, the Controller and Auditor-General and the Parliamentary Commissioner for the Environment.

Under a 1992 amendment, the Minister of Local Government may appoint a review authority, where it is considered there has been serious mismanagement, and may require the local authority to implement the review authority's recommendations. Any decision by a local authority may be reviewed by appeal to the High Court, and decisions under the Resource Management Act 1991 may be appealed to the Planning Tribunal.

Local government organisation

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

  • 12 regional councils.

  • 74 territorial authorities.

  • 155 community boards.

  • 6 special authorities.

In 1989 a statement on the purposes of local government was included in the Local Government Act 1974. This holds as central the recognition of the existence of different communities in New Zealand, and their separate identities and values; and the effective participation of local persons in local government. Also included was an accountability scheme, whereby local authorities are required to conduct their affairs in an open and proper manner, separate their regulatory and non-regulatory activities, and adequately inform local communities of their activities. Emphasis was placed on setting objectives and measuring performance.

Local authorities are encouraged to corporatise or privatise their trading activities (aside from airports, seaports and energy supply operations which are covered by separate legislation). The Act requires territorial authorities to corporatise or establish as a business unit any of their operations carrying out subsidised road construction work and corporatise any public transport undertaking. Local authorities are required to consider putting out the delivery of all services to competitive tender.

Regional councils

The regional councils are directly elected, set their own rates and have a chairperson elected by their members. Their main functions are:

  • The functions under the Resource Management Act.

  • The functions under the Soil Conservation and Rivers Control Act.

  • Control of pests and noxious plants.

  • Harbour regulations and marine pollution control.

  • Regional aspects of civil defence.

  • Overview transport planning.

  • Control of passenger transport operators.

Some regional councils also have other functions, such as those formerly undertaken by land drainage boards.

In 1989 regional councils in Auckland and Wellington inherited a number of public utilities and trading activities: in Auckland trunk sewerage, bulk water supply, rubbish disposal, buses, forestry, regional parks and regional roads; in Wellington bulk water supply, forestry and regional parks.

In 1992 the law governing regional councils was extensively amended to clarify the role of regional councils as regulatory authorities concerned with resource management and related functions, including public passenger transport planning in Auckland and Wellington. The differentiation between regional councils and territorial authorities is not so much hierarchical as functional, with the range of regional council functions being limited.

Also in 1992 the various operational services of the Auckland Regional Council were transferred to a new body, the Auckland Regional Services Trust. However, Auckland and Wellington regional councils both retain administration of regional parks and reserves.

The Nelson-Marlborough Regional Council was abolished from 1 July 1992 and its functions transferred to the territorial authorities of Marlborough District, Tasman District and Nelson City.

Territorial authorities. The 74 regional authorities consist of:

  • 15 city councils.

  • 58 district councils.

  • 1 county council (Chatham Islands).

Table 2.18. REGIONAL COUNCILS

RegionCouncil members*

**As from October 1992 elections.

Source:Department of Internal Affairs.

North Island 
Northland8
Auckland13
Waikato13
Bay of Plenty11
Hawke's Bay9
Taranaki10
Manawatu-Wanganui11
Wellington14
South Island 
West Coast6
Canterbury13
Otago11
Southland11

Territorial authorities in New Zealand are directly elected, set their own rates, and have a mayor elected by the people. They have a wide range of functions including land use consents under the Resource Management Act 1991, noise control, litter control; roading; water supply; sewage reticulation and disposal; rubbish collection and disposal; parks and reserves; libraries; land subdivision; pensioner housing, health inspection; building consent; parking controls; and civil defence.

The 1992 refocussing of regional councils on a more limited range of functions established the territorial authority more firmly as the basic unit of multi-purpose local government in New Zealand.

In 1992 it was made easier for new districts to be established on the initiative of local people, in part by reducing the minimum size of new districts (from 20,000 to 10,000).

New cities can now only be constituted by a re-organisation scheme where a new district is formed and that district:

  • Has a population of at least 50,000.

  • Is predominantly urban.

  • Is a distinct entity and a major centre of activity within the region.

Unitary authorities. This type of authority is administered by a territorial authority, which also has regional powers. The 1989 reform legislation prevented any unitary authorities being established other than in Gisborne. However, the 1992 amendment not only created three more unitary authorities (Marlborough District, Tasman District and Nelson City) but made it possible for others to be created through local initiatives.

Auckland's Town Hall clock stopped for refurbishment.

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

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

Table 2.19. TERRITORIAL AUTHORITIES

Cities/districtsCouncil members*

*Includes mayors.

†Unitary authority.

Source: Department of Internal Affairs.

North Island 
North Shore City19
Waitakere City17
Auckland City25
Manukau City25
Hamilton City14
Napier City13
Palmerston North City16
Porirua City14
Upper Hutt City11
Hutt City16
Wellington City22
Far North District14
Whangarei District14
Kaipara District11
Rodney District12
Papakura District13
Waikato District15
Waipa District13
Otorohanga District8
Waitomo District11
Matamata-Piako District13
South Waikato District15
Taupo District13
Tauranga District15
Western Bay of Plenty District13
Rotorua District13
Whakatane District16
Kawerau District11
Opotiki District11
Gisborne District†17
Wairoa District10
Hastings District15
Central Hawke's Bay District13
New Plymouth District17
Stratford District11
South Taranaki District13
Ruapehu District15
Rangitikei District12
Manawatu District14
Horowhenua District13
Tararua District13
Masterton District12
Carterton District12
South Wairarapa District11
South Island Nelson City†13
Christchurch City25
Dunedin City19
Invercargill City13
Tasman District†14
Marlborough District†14
Kaikoura District8
Buller District12
Grey District8
Westland District13
Waimakariri District15
Selwyn District14
Banks Peninsula District10
Ashburton District13
Timaru District13
Waimate District14
Waitaki District16
Queenstown16
Central Otago District16
Clutha District16
Southland District15
Gore District12
Chatham Islands County8

Community boards

A community board is primarily an advocate for its community, and a means whereby the territorial authority can consult with the community. Any power the community board has is as delegated by the territorial authority, but cannot include such powers as levying rates, appointing staff, or owning property.

Community boards may be partly elected by the community and partly appointed by the territorial authority from among its own members, or may be entirely elected. Community boards can be established anywhere in New Zealand to serve any number of inhabitants, they may be established upon the initiative either of a given number of electors or of the territorial authority, or as provided in a re-organisation scheme. Community boundaries often coincide with those of wards (divisions of the district for electoral purposes). These boards have between four and 12 members each.

Special purpose local authorities

In 1989 the number of special purpose local authorities was greatly reduced. Catchment boards, harbour boards, pest destruction boards and land drainage boards (among others) disappeared, with their functions reallocated either to regional councils or, to a lesser extent, to territorial authorities. The categories remaining include: scenic and recreation boards, airport authorities and, for the time being, area health boards, hospital boards and electric power boards. There are also a few one off authorities including: the Aotea Centre Board of Management; the Canterbury Museum Trust Board; the Council of the Auckland Institute and Museum; the Marlborough Forestry Corporation; the Otago Museum Trust Board; and the Selwyn Plantation Board.

Auckland Regional Services Trust. This is a local authority unique to the Auckland region which has been established to assume ownership of the Auckland Regional Council's service-delivery activities and community assets. It is charged with disposing of those assets as soon as it is prudent to do so, except for bulk water and sewerage (which must not be sold) and applying proceeds to the retirement of debt.

The trust's first election was in October 1992. Its six members are elected by the regions electors. Local authority members and employees are prohibited from being trust members or directors of its companies and trust members may not be directors of those companies either.

The 15 finalists in the Canterbury Flag Promotion.

The trust is funded by trading income, with any deficit up to 1995 to be met by the Auckland Regional Council. From 1995 the trust is expected to be self-sufficient. Surplus monies may be applied at the trust's discretion to a separate “community trust” (under the Trustee Act 1956), which the trust is required to establish by the time it starts making a surplus. The community trust will distribute its funds for charitable and other public purposes.

Local government elections and membership

Local government elections are held on the second Saturday in October every third year. The next elections will be held in 1995. All regional council, territorial authority, special purpose local authority and community board elections are conducted at the same time.

In the year before an election regional and territorial authorities are normally required to review the number of members and the number and size of their electorates. In 1991 local authorities had the option of not conducting a review but keeping existing membership and the wards or constituencies until 1995.

Electorates are known as wards in the case of territorial authorities and constituencies in the case of regions. Territorial authorities had the option of deciding whether members would be elected by the electors of the district as a whole. Regions must be divided into constituencies.

The purpose of the review was to give effective representation to communities of interest and fair representation to electors. The review process provided for objections and appeals by the public and where necessary the final decisions were made by the Local Government Commission.

Voting procedures. Any territorial authority may decide whether an election is to be conducted by attendance at a polling booth or by post; however, postal voting was almost universal by 1992. The method of casting a vote is similar to parliamentary elections: the surnames of candidates are printed on the ballot paper and electors place a tick after the name of the candidate they wish to vote for.

Local authority franchise. Every parliamentary elector is automatically qualified as a residential elector of a local authority if the address at which the person is registered on the electoral roll is within the district of the local authority.

Ratepayer voting was re-introduced by the Local Government Amendments Act 1991. This entitles ratepayers who are not residents to enrol and vote in any region, district or community in which they pay rates. Rolls are compiled by territorial authorities, who usually compile the rolls and conduct the elections for other authorities as well. The information for the residential electoral roll is obtained from the parliamentary electoral database and the ratepayer roll is compiled from nomination forms sent to ratepayers.

Membership of local authorities. Any person who is a parliamentary elector may be elected to a regional council or territorial authority or community board. In 1992 a prohibition was introduced on a person being a candidate for both a regional council and a territorial authority or community board within that region. Vacancies may be filled either by an election or by appointment, depending upon the type of council, the circumstances of the vacancy and the wishes of the electors.

Main Street, Hokitika.

Remuneration of members. Most boards and councils pay their chairperson or mayor an annual salary, while other members are paid a combination of a daily meeting allowance and an annual salary. Rates of remuneration payable to members are determined by the Minister of Local Government. Maximum and minimum salary and allowance levels are set, allowing the council or board the discretion to decide the actual rate within the prescribed limits.

Local Government Commission

The Local Government Commission comprises three members one of when is the chairperson, appointed by the Minister for Local Government. The commission has two major functions. Firstly, as a quasi-judicial appeal authority to hear and determine:

  • Appeals against decisions on objections to draft reorganisation schemes.

  • Appeals and counter-objectives relating to ward and membership proposals of a local authority, following its triennial review of representation and membership.

  • Proposals for the constitution of communities.

  • Proposals for the reorganisation, or abolition, of communities where there is disagreement between a community board and its parent authority.

Also, in accordance with amendments to the Local Government Act 1992, the commission assumed new responsibilities relating to the preparation and processing of reorganisation proposals for:

  • New districts with a population of more than 10,000 persons.

  • New regions with a population of more than 50,000 persons.

In addition to the above roles, the commission is the determining authority for matters still requiring resolution following the implementation of the major local government reorganisation in 1989. In particular the commission may investigate property dealings of former authorities, and also approve changes in use of the special funds of former authorities.

2.5 National emblems and anthems

New Zealand Flag

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

New Zealand coat of arms

The coat of arms is protected under the Flags, Emblems, and Names Protection Act 1981, and its lawful use is confined to official purposes.

National anthems

New Zealand has two national anthems: ‘God Defend New Zealand’ and ‘God Save the Queen’. ‘God Defend New Zealand’ is a poem written by Thomas Bracken and set to original music composed by John J Woods. It was first performed in public on Christmas Day 1876 and formally adopted as national hymn in 1840. In 1977, with the permission of Her Majesty the Queen, the Government adopted both ‘God Defend New Zealand’ and the traditional ‘God Save the Queen’ as national anthems of equal status in New Zealand to be used in the order appropriate to the occasion. (Refer to supplement to New Zealand Gazette published Monday 21 November 1977.)

Table 2.20. 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 roa.
Kia hua ko te pai;
Kia tau to atawhai;
Manaakitia mai Aotearoa.
2. Men of every creed and race
Gather here before thy face,
Asking thee to bless this place,
God defend our free land.
From dissension, envy, hate,
And corruption guard our state,
Make our country good and great,
God defend New Zealand.
2. Ona mano tangata
Kiri whereo, 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 nation's van,
Preaching love and truth to man,
Working out thy glorious plan.
God defend New Zealand.
5. Tona pai me toitu;
Tika rawa, pono pu;
Tona noho, tana tu;
Iwi no Ihoa.
Kaua mona whakama;
Kia hau te ingoa;
Kia tu hei tauira;
Aotearoa.

Honours

Below is a summary of the titles, honours and awards granted by the Queen, 1 July 1992-30 June 1993.

Category  Total
Grant of the title ‘The Honourable’  1
Honours and awards   
Order of New Zealand   
         Ordinary Member  3
Companion of The Queen's Service Order   
         For Community Service  10
         For Public Services  18
         For Community Service (Honorary)  1
         For Public Services (Honorary)  1
Queen's Service Medal   
For Community Service  67
For Public Services  67
For Community Service (Honorary)  1
For Public Services (Honorary)  2
Knight Bachelor  2
Order of St Michael and St George Companion  3
Royal Victorian Order Commander  1
Order of the BathCivilMilitary 
         Companion-11
Order of the British Empire   
        Dame Commander7-7
        Commander17219
        Officer34539
        Member49554
        British Empire Medal268
Other Awards   
        Queens’ Police Medal for Distinguished Service  2
        Queen's Fire Service Medal for Distinguished Service  6
        Air Force Cross  2
        Polar Medal  1
        Queen's Commendation for Valuable Service in the Air  1
           Grand total  317

2.6 Chronology 1993

January. Jobless reached post-war record with 279,834 seeking work. Business confidence at 20 year high, a New Zealand Institute of Economic Research survey claimed. New Zealand Milk Corporation refused permission to cut home milk deliveries. Six bids were placed for the building and running of the country's first private prisons. Health authorities declared hundreds of kilometres of Northland, Hauraki Gulf and Coromandel coastline off-limits to shellfish gatherers as a mystery toxic algal bloom spreads; over following months the ban progressively applied to the whole country. Three trampers, who claimed to have seen a moa in the South Island high country, set off a public debate, a few searches, but no sightings. An international study co-ordinated by the Netherland's Justice Minister gave New Zealand the worst crime rate in the industrialised world. Another international survey rated New Zealand as among the top four countries in which to live—but found its people less cultured than Australians.

February. Telecom announced plans to shed more than 5000 staff over the next few years, with 200 jobs going in the meantime. South of Hastings, five people died in a rail-crossing crash, when a car collided with a goods train; by the end of the year 19 people would die in this type of accident (an increase of 13 on the annual average). Three women were honoured with the Order of New Zealand. They were: chair of the Suffrage Centennial Year Trust, Dame Miriam Dell, Southern Maori MP, Whetu Tirikatene-Sullivan and children's author, Margaret Mahy. Department of Labour figures showed frozen wages for 54 percent of workers on employment contracts and cuts to weekend penal pay. OECD tipped ongoing New Zealand recovery of 2.5 percent to 3 percent per year. The police launched a five-year strategy aimed at cutting down neighbourhood crime (particularly burglary and domestic violence) and the road toll. A High Court ruling allowed the National Party executive the right to reject Winston Peters’ (the sitting MP of Tauranga) nomination to re-contest his seat.

March. Whangarei landed ANZAC frigate work worth up to $250 million over the next decade. A 167 kilogram bluefin tuna caught in the Bay of Plenty fetched $20,000 at auction in Japan. After fires six months earlier, Coalcorp closed Huntly West Mine, leaving $30 million worth of machines underground. Bartercard cashless trading system launched in new Zealand. First of southern shellfish cleared safe to eat. Court-ordered liquidations for March quarter reached five-year low. Winston Peters formally quit Parliament, necessitating a by-election; 11 candidates were in the running, but none from the major parties. Former Waitemata mayor, Time Shadbolt, won the Invercargill mayoralty by a landslide.

April. Tough anti-drink driving laws introduced, including compulsory breath testing, random stopping and alcohol 'sniffing’ breathalysers. Standard and Poor's reaffirmed New Zealand's AA minus foreign-debt rating. New Health Minister, Bill Birch, abolished charges for hospital beds, 13 months after they were introduced. Winston Peters won the Tauranga by-election, over 11,000 votes ahead of his nearest rival.

May. New Zealand Rail announced 120 job cuts. A ministerial inquiry found the Anglican Church and other landlords acted within the law in imposing increases of up to 6000 percent in land rent in Auckland's eastern suburbs, but criticised the way they went about it. A military training course for the unemployed attracted just 20 people for the 120 available places. Unemployment dipped under 10 percent for the first time in two years. The five month shellfish harvesting ban was lifted in parts of Northland and the Coromandel. Jane Campion won the Palme d'Or (jointly) at Cannes for The Piano; the first female director to win the best film prize.

June. Three North Shore beaches were closed after a pumping station breakdown spilt millions of litres of raw sewage into the sea. A three week amnesty for people illegally claiming social welfare benefits resulted in 11,826 cancellations or adjustments and a saving of $22.3 million. Dame Silvia Cartwright, Chief District Court judge, became the first woman in New Zealand to be appointed a High Court judge.

July. Amendments to the Human Rights Act were passed, with the grounds of unlawful discrimination expanded to include: sex, marital status, age, religious or ethical belief disability, political opinion, employment status, family status and sexual orientation. North Island meat processor AFFCO announced major restructuring with the loss of 1,000 jobs and the prospect of a three year wait for full redundancy. HongkongBank offered a floating mortgage rate of 7.9 percent, the first bank in about 20 years to take home loans below 8 percent. Winston Peters launched his New Zealand First party at Alexandra Park in Auckland. New Zealand Rail was sold for $400 million to an American consortium with merchant bankers Fay Richwhite having a 40 percent holding. Police shot dead a man with a crossbow holding eight people hostage in the Morrinsville police station; an elaborate network of explosives was later found throughout the building. Historian, Sir Keith Sinclair died.

August. The Electoral Reform Bill, which allows for mixed member proportional representation, was passed after almost 30 hours of debate. A computer information matching exercise between the departments of Social Welfare and Inland Revenue found that 6,300 welfare beneficiaries (out of 89,000 names selected at random) were defrauding the system. The High Court threw out arguments by the Auckland City Council against privatisation plans by Mercury Energy (formerly the Auckland Electric Power Board), allowing other power boards to follow similar plans. Continental Airlines announced the axing of its South Pacific services by November. National, Labour and Alliance reached an accord on superannuation. The Reserve Bank announced 335 million five cent coins are missing.

September. Police uncovered a scam in which up to $200,000 in Lottery Grants Board and Internal Affairs Department funding had been siphoned off. Police caught their most wanted criminal, Leslie Green, when he had car trouble while trying to escape after his latest bank robbery in Auckland; he was sent back to prison for 20 years.

October. The last known painting by Colin McCahon, I consider all the acts of oppression, sold at auction in Auckland for $460,000—the highest price paid for a New Zealand work of art. An Auckland-based Nomad aircraft crashed into Franz Josef Glacier killing six German tourists and the New Zealand crew of three.

November. The 1993 General Election was held on 6 November; the results on election night placed National with 49 seats, Labour 46, and the Alliance and New Zealand First with two seats each, leaving no party with an absolute majority. Mixed member proportional representation won the electoral referendum comfortably. The police helicopter Eagle and a traffic spotter plane collided over evening rush-hour in central Auckland, killing both pilots and the two policemen aboard the helicopter. Prime Minister Bolger announced his new Cabinet; the Bolger executive government (which consists of the Cabinet and the Executive Council) numbers 27, the largest in New Zealand's history.

Sir Keith Sinclair.

December. Helen Clark replaced Mike Moore as leader of the parliamentary Labour Party; David Caygill defeated Michael Cullen in the vote for deputy. Opposition MP Peter Tapsell became the Speaker of the House, thus giving the Government a voting majority in Parliament. The Uruguay Round (begun in 1986) of the GATT negotiations was finally settled with 117 countries signing the agreement; the treaty is hailed in New Zealand as promising better returns for farmers tempered with some price rises for domestic consumers. Some hospital closures are feared as the Government announced that up to give of the Crown Health Enterprise are crippled by debt. Sky Tower Casino Limited won the right to run a casino in Auckland.

2.7 General Election 1993

The National Government, under the Rt Hon JB Bolger, was re-elected following the election held on 6 November 1993. The strength of the political parties’ representation in Parliament after this election was: National 50, Labour 45, Alliance 2 and New Zealand First 2.

The electoral boundaries were revised in 1992, reorganising New Zealand's electoral districts. There were 99 electorates in the 1993 General Election, an increase of two from the previous election. The 99 seats were contested by 689 candidates, 191 of these were women and 498 were men; 21 women and 78 men were elected to Parliament. In Auckland Central, Sandra Lee became the first Maori women to win a general (non-Maori) seat, while Phillip Field became the first Pacific Island MP, when he won the Otara electorate.

A total of 2,321,664 people were enrolled to vote in the election, of these 1,978,215 actually voted (a turnout of 85.21 percent), with 1,922,796 valid votes cast. The members of Parliament with the largest majorities are: Graham, Remuera (8,619); Simich, Tamaki (7,951); Peters, Tauranga (7,924); and Anderton, Sydenham (7,476). The member of Parliament with the smallest majority is Neill of Waitaki with a margin of 53 votes.

In the referendum for electoral reform, 1,917,903 valid votes were cast. Of that number, 884,962 were for the first past the post (FPP) electoral system, while 1,032,941 were for the mixed member proportional (MMP) representation, giving a 53.9 to 46.1 percent advantage to MMP.

The results shown in the following tables include special votes, but do not take into account any subsequent petitions or recounts. These figures were the most up-to-date at the time of going to print. A list of the new ministry chosen by the Prime Minister soon after the election (the second Bolger Ministry) is also included.

Table 2.21. POLITICAL PARTY REPORT, 1993 GENERAL ELECTION

Party nameParty votesPercentage total voteSeats contestedSeats won
*National did not submit a candidate for the Southern Maori electorate.
Alliance (A)350,06318.21992
Alternative (ALT)8220.0410
Aotearoa Partnership (AP)520.0420
Blokes Liberation Front (BLF)570.0010
Binding Referendum (BR)1320.0110
Christian Heritage (CH)38,7452.02980
Communist League (CL)840.0020
New Zealand Defence Movement (DM)6500.03110
Dominion Workers (DW)120.0010
New Zealand Economic Euthenics (EE)100.0010
Ethereal Vision (EV)400.0010
Gisborne First (GF)1450.0110
Hard to Find Bookshop (HFB)1710.0120
Independent (I)7,1770.37280
Labour (L)666,80034.689945
McGillicuddy Serious (McGS)11,7140.61640
Mana Maori (MM)3,3420.1750
National (N)673,89235.0598*50
Natural Law (NL)6,0560.31760
New Zealand First (NZF)161,4818.40842
New Zealand Representative6410.0310
Pacific (P)250.0010
Private Enterprise (PE)350.0010
Real (R)420.0020
Unemployed Workers Rights (UWR)5140.0380
Whangarei Whanau (WW)940.0010
        Total1 922 796100.0068999

Table 2.22. RESULTS FOR THE GENERAL ELECTION AND REFERENDUM 1993*

Electoral districts candidates and party affiliationsVotes recorded
*A referendum on electoral reform was held in conjunction with the general election. Voters had the choice between the present first past the post (FPP) electoral system and electoral reform with mixed member proportional representation (MMP).
Albany 
        Allen (L)3,848
        Chiles (McGS)184
        Hoek(CH)413
        Jeffs (A)4,515
        McKinnon (N)8,166
        McRae (NZF)4,300
        Power (I)206
          FPP*9,240
          MMP*12,371
Auckland Central 
        Anae (N)4,242
        Gray (NZF)967
        Kennedy (CH)210
        Lee (A)8,106
        Millett (BLF)57
        Minchin (McGS)206
        Prebble (L)6,815
        Robb (CL)32
        Sanson (NL)74
          FPP6,465
          MMP14,224
Avon 
        Kearns (N)3,799
        Lees (NL)69
        Middleton (McGS)97
        Penney (I)110
        Ryall (NZF)906
        Smith (CH)396
        Sutherland (L)9,835
        Venning (A)4,192
          FPP7,819
          MMP11,523
Awarua 
        Lankshear (NZF)1,237
        Roy (N)7,802
        Scaletti-Longley (L)5,566
        Stevens (CH)326
        Stirling (A)3,203
          FPP10,131
          MMP7,973
Birkenhead 
        Brebner (CH)364
        Hartley (L)7,762
        Lack (A)3,314
        Nicholson (McGS)164
        Norman (NZF)1,681
        Revell (N)7,866
        Selwood-Hatt (UWR)45
        Wood (NZ)68
          FPP8,883
          MMP12,301
Christchurch Central 
        Bain (CL)52
        Dalziel (L)9,841
        Kelly (McGS)240
        Le Cren (CH)413
        Martin (NL)126
        Rowe (N)3,652
        Vercoe (A)3,501
          FPP6,939
          MMP10,776
Christchurch North 
        Davey (A)3,072
        Drace (NL)47
        Fulford (NZF)726
        Mann (CH)444
        Moore (L)11,605
        Morgan (N)5,581
        Murgatroyd (McGS)108
          FPP10,358
          MMP11,141
Clutha 
        Bradfield (CH)692
        Buchanan (L)5,289
        Forbes (McGS)174
        Gray (N)9,406
        Ramsay (NZF)953
        Tranter (A)3,257
          FPP12,537
          MMP7,179
Dunedin North 
        Bush (NL)73
        Flynn (A)5,022
        Hodgson (L)9,119
        Kennedy (McGS)267
        Perkins (N)5,325
        Rodriguez (NZF)776
        Storm (CH)368
          FPP8,747
          MMP12,160
Dunedin West 
        Ibadulla (NZF)923
        Jelley (NL)63
        Matthewson (L)9,924
        Streekstra (CH)434
        Turner (N)5,447
        Wood (A)4,076
          FPP10,478
          MMP10,272
East Coast Bays 
        Adams (NL)107
        Duncan (L)3,253
        Knox (CH)347
        McConachy (A)5,693
        McCully (N)10,209
        Martin (NZF)2,232
          FPP10,356
          MMP11,521
Eastern Bay of Plenty 
        Aubertin (NL)47
        Bennett (A)2,633
        Blackman (NZF)2,062
        Chadwick (DM)50
        Collins (L)5,741
        Morrison (CH)343
        Ryall (N)6,547
          FPP7,861
          MMP9,505
Eastern Hutt 
        Chapman (CH)526
        Hodgson (NL)37
        Jordan (NZF)1,000
        McHale (J)54
        MacMillan (N)4,628
        Nicholls (McGS)150
        Ruth (A)2,467
        Swain (L)9,346
          FPP8,166
          MMP9,974
Eden 
        Bowden (DM)76
        Bridgeman-Sutton (McGS)164
        Fletcher (N)10,121
        Halligan (HFB)82
        Hodson (NL)70
        Locke (A)2,878
        McQueen (CH)375
        Smith (L)6,727
          FPP8,567
          MMP11,879
Far North 
        Austin (NL)53
        Baker (NZF)3,552
        Carter (N)6,977
        Field (A)2,926
        Jack (CH)387
        Lowe (L)3,418
        Rowe (McGS)163
          FPP7,670
          MMP9,768
Fendalton 
        Burdon (N)10,767
        Day (L)5,785
        Jones (NL)109
        Neville (McGS)279
        Pearson (CH)521
        St Johanser (A)3,341
          FPP10,789
          MMP10,000
Franklin 
        Birch (N)7,723
        Bischoff (A)4,180
        De Coudray (NZF)2,567
        Flynn (NL)62
        Te Pou (L)2,776
        Voschezang (CH)321
        Wilson (BR)132
        Worthington (McGS)192
          FPP8,923
          MMP9,016
Gisborne 
        Courts (McGS)94
        Donnelly (GF)145
        Kimber (N)7,147
        Mackey (L)8,215
        Parker (NL)52
        Smith (A)2,099
        Vermeulen (CH)329
        Waitai (NZF)1,114
          FPP9,801
          MMP9,287
Glenfield 
        Batten (L)6,131
        Cornaga (NL)80
        Gillon (A)4,922
        Hilt (N)8,114
        Mortensen (NZF)1,475
        Thomas (CH)347
          FPP9,268
          MMP11,764
Hamilton East 
        Clark (NL)48
        Randell (CH)494
        Singh (A)2,556
        Smeaton (McGS)274
        Steel (N)7,597
        Widerstrom (NZF)1,860
        Yates (L)7,677
          FPP8,725
          MMP11,752
Hamilton West 
        Caldwell (McGS)181
        Gallagher (L)7,118
        Goodall (CH)399
        Marsh (R)23
        Tait (A)2,247
        Thomas (N)6,669
        Woolerton (NZF)2,024
          FPP8,444
          MMP10,167
Hastings 
        Barker (L)9,000
        Bowers (N)6,249
        Charters (I)104
        Jones (CH)640
        Morrison (McGS)128
        Ouseley (NL)66
        Waitere (NZF)932
        Weir (A)2,689
          FPP8,350
          MMP11,637
Hauraki 
        Boswell (DM)47
        Fitzsimons (A)5,698
        Garden (L)3,183
        Jackson (CH)289
        Kyd (N)7,568
        O'Flaherty (NZF)1,593
        Smith (McGS)148
          FPP8,981
          MMP9,505
Hawkes Bay 
        Davis (CH)593
        Laws (N)9,471
        Parry (NL)74
        Ramsden (McGS)107
        Reynolds (L)6,328
        Stewart (A)2,880
          FPP8,335
          MMP11,154
Henderson 
        Albert (NZF)1,120
        Bradford (UWR)95
        Bryers (I)23
        Elder (L)6,381
        Jorgensen (N)4,251
        Mackie (McGS)106
        Paterson (A)3,378
        Philpott (J)53
        Thomson (CH)618
          FPP6,706
          MMP9,244
Heretaunga 
        Avanti (I)43
        Hounsell (CH)616
        Logan (NZF)772
        McCardle (N)7,981
        Mendoza (DM)32
        Sahar (McGS)137
        Simpson (L)7,149
        Tracey (A)2,663
          FPP8,726
          MMP10,590
Hobson 
        Clayton (McGS)133
        Grover (A)3,777
        Grubi (CH)304
        Hall (ALT)822
        Meurant (N)6,474
        Peters (NZF)3,445
        Ryder (L)2,918
        Treadwell (NL)50
          FPP7,655
          MMP10,250
Horowhenua 
        Bint (A)2,517
        Hancock (N)6,040
        Hubbard (CH)636
        Keall (L)8,387
        Richardson (NZF)2,441
        Wilson (NL)54
          FPP8,808
          MMP11,166
Howick 
        Chamberlain (NZF)2,590
        Clarke (L)4,922
        Hamill (NL)134
        Hoyte (A)3,747
        Landhuis (McGS)261
        Rogers (N)10,676
          FPP10,739
          MMP11,623
Invercargill 
        Comins (NL)48
        Jones (I)702
        Kawe (NZF)393
        Macann (CH)242
        Munro (N)7,303
        Peck (L)8,477
        Treweek (A)2,250
          FPP10,344
          MMP9,013
Island Bay 
        Brown (NL)158
        Buchanan (McGS)451
        Douche (NZF)926
        Fleming (CH)479
        Shields (N)4,688
        Tennet (L)10,110
        Tile (A)3,809
          FPP7,088
          MMP13,564
Kaimai 
        Anderson (N)6,570
        Benner (NL)66
        Brown (NZF)6,198
        Chester (CH)362
        Dassler (I)54
        Davies (L)3,660
        Stephens (A)2,894
          FPP8,112
          MMP11,635
Kaipara 
        Brewster (McGS)296
        Hare (CH)501
        Merwood (I)94
        Phillips (L)3,079
        Smith (N)7,462
        Steward (A)4,504
        Taylor (NZF)2,676
          FPP8,521
          MMP10,094
Kapiti 
        Calder (L)8,203
        Church (McGS)153
        Halsted (CH)506
        Smith (A)4,182
        Sowry (N)9,241
        Stevenson (NZF)1,431
        Stumbles (NL)78
          FPP11,098
          MMP12,703
King Country 
        Bolger (N)8,396
        Hasyo (McGS)220
        Herbert (A)3,518
        Jones (CH)539
        Simpson (L)3,890
        Williams (NL)115
          FPP9,545
          MMP7,149
Lyttelton 
        Burnett (CH)375
        Carter (N)8,939
        Dyson (L)9,616
        Gluer (NZF)829
        Lewis (A)3,729
        Lovell-Smith (NL)193
          FPP10,501
          MMP13,172
Manawatu 
        Baldwin (N)6,424
        Gaustad (NL)59
        Haggett (NZF)906
        Hewitt (CH)320
        Maclntyre (A)5,435
        White (L)6,588
          FPP7,939
          MMP11,784
Mangere 
        Archer (NZF)2,037
        Bilyard (NL)53
        Davis (UWR)84
        Lange (L)8,345
        Nemeth (CH)135
        Richards (A)2,387
        Te Hau (N)1,120
        Webb (McGS)77
          FPP6,046
          MMP7,956
Manurewa 
        Chalmers (N)3,462
        Craig (McGS)135
        Hawkins (L)7,476
        Kennedy (CH)388
        Roa (NZF)2,156
        Robinson (A)3,183
          FPP7,147
          MMP9,536
Marlborough 
        Bell (I)91
        Harrison (NZF)1,930
        Howard (L)6,387
        Kidd (N)8,935
        Murphy (A)3,891
        Pigou (CH)485
        Smith (NL)50
          FPP10,489
          MMP11,308
Matakana 
        Clarke (CH)240
        Hutchinson (L)3,180
        Jefferson (NZF)3,419
        Lee G (N)6,334
        Lee L (NL)140
        Neill (A)5,441
        Soper (McGS)172
          FPP8,127
          MMP10,785
Matamata 
        Barclay (NZF)2,163
        Barker (I)283
        Carlisle (CH)419
        Harris (L)2,543
        Luxton (N)8,921
        Pemberton (A)2,944
        Sanders (McGS)245
          FPP10,177
          MMP7,341
Miramar 
        Campbell (NZF)960
        Corner (CH)353
        Hamilton (A)2,590
        King (L)10,352
        Moncur (PE)35
        Reeves (N)7,757
        Shepherd (NL)65
        Thornton (McGS)187
          FPP9,918
          MMP12,336
Mt Albert 
        Anderson (NZF)1,370
        Brown (N)4,890
        Clark (L)9,546
        Julian (McGS)195
        McGee (A)2,873
        Meder (CH)259
        Sanson (NL)62
        Sowry (UWR)97
        Vanden Heuvel (DM)25
          FPP7,236
          MMP12,015
Napier 
        Bisley (CH)297
        Braybrooke (L)9,923
        Holland (A)3,399
        Morunga (NZF)989
        Pritchard (N)4,997
          FPP7,479
          MMP12,122
Nelson 
        Barber (CH)746
        Blincoe (L)8,779
        Downey (NZF)1,039
        Emerre (N)6,772
        Ward (A)4,543
        Ward-Brown (NL)131
          FPP8,730
          MMP13,250
New Lynn 
        Hinds (CH)360
        Hunt (L)6,974
        Mullins (NZF)1,474
        Robinson (A)5,376
        Seavill (N)3,642
        Turei (McGS)121
          FPP6,932
          MMP10,902
New Plymouth 
        Armstrong (N)7,355
        Calvert (NZF)1,087
        Duynhoven (L)10,481
        Smith (A)2,182
        Sowry (NL)77
        Starrenburg (CH)217
          FPP9,897
          MMP11,331
North Shore 
        Bryant (McGS)288
        Cayford (A)5,445
        Cliffe (N)10,168
        Gladwell (CH)341
        Harding (L)4,132
        Pianta (NL)118
        Stevens (NZF)1,851
          FPP10,173
          MMP12,146
Onehunga 
        Foster (McGS)110
        Jordan (HFB)89
        Lee (NL)95
        Northey (L)7,183
        Paterson (CH)318
        Robson (A)3,503
        Shearer (NZF)2,132
        Thorne (N)6,776
          FPP8,602
          MMP11,505
Onslow 
        Barker (McGS)130
        Bunkle (A)3,077
        Burgess (NZF)682
        Byford (CH)457
        Dunne (L)9,096
        Lysaght (I)296
        McGregor (NL)62
        Mathew (N)8,031
        Stewart (I)24
          FPP11,110
          MMP10,696
Otago 
        Bousfield (McGS)315
        Cooper (N)8,254
        Hamill (NL)58
        Hamilton (I)238
        Renton (A)3,015
        Warren (NZF)904
        Yiakmis (L)5,034
        Zwies (CH)336
          FPP10,695
          MMP7,476
Otara 
        Cave (McGS)78
        Davis (MM)100
        Faleauto (NZR)641
        Field (L)8,080
        Frith (N)2,099
        Glassie (AP)16
        Hieatt (UWR)59
        Newman (A)1,856
        Ward (CH)253
          FPP5,930
          MMP7,069
Pahiatua 
        Falloon (N)8,702
        Kelly (I)160
        Kingi (NZF)1,601
        Martindale (L)3,524
        Rockell (A)3,184
        Van Steel (CH)510
          FPP9,991
          MMP7,808
Pakuranga 
        Brigid (NL)87
        MacKay (L)4,159
        Moore (NZF)2,399
        Sasquatch (McGS)201
        Starrenburg (CH)367
        Wilkins (A)3,203
        Williamson (N)9,619
          FPP9,997
          MMP10,035
Palmerston North 
        Burgess (CH)413
        Goaley (I)48
        Hehir (A)3,474
        Maharey (L)9,049
        Martin (NL)66
        Nattrass (EV)40
        Odering (NZF)1,220
        Stones (N)5,285
          FPP7,351
          MMP12,218
Panmure 
        Jesson (A)4,751
        Lodge (NL)130
        Pepperell (CH)250
        Tizard (L)8,028
        Wren (N)2,238
          FPP6,255
          MMP9,079
Papakura 
        Ayers (A)2,423
        Boswell (DM)67
        Davy (NL)49
        Hawks (L)5,886
        James-Reihana (AP)36
        Mosen (NZF)2,260
        Robertson (N)6,370
        Worth (CH)218
          FPP8,300
          MMP8,939
Papatoetoe 
        Alchin-Smith (A)2,529
        Kettle (NL)67
        Nichols (NZF)1,774
        Robertson (L)9,769
        Ruijne (CH)271
        Wild (N)3,792
          FPP7,989
          MMP10,097
Pencarrow 
        Cauchi (McGS)186
        Houpapa (NZF)1,186
        Mallard (L)8,106
        Otway (A)3,021
        Paton (CH)380
        Thomas (N)5,465
          FPP8,181
          MMP10,130
Porirua 
        Kelly (L)9,163
        Magson (NZF)1,261
        Mitchell (A)2,309
        O'Donnell (CH)522
        Prankerd (McGS)239
        Sipeli (N)2,450
          FPP6,767
          MMP9,116
Raglan 
        Clough (I)71
        Dunn (NL)52
        Harris (L)4,875
        Houtman (McGS)198
        Medland (A)2,944
        Randell (NZF)2,201
        Scoggins (CH)556
        Upton (N)7,494
          FPP9,056
          MMP9,330
Rakaia 
        Green (NL)102
        Greer (McGS)203
        Hooley (CH)286
        Howie (L)5,803
        Hunt (A)3,181
        Page (NZF)1,459
        Shipley (N)10,343
          FPP13,237
          MMP8,102
Rangiora 
        Bird (NL)52
        Gerard (N)9,157
        Little (L)4,688
        Phillips (CH)450
        Wolfe (McGS)125
        Woods (NZF)1,397
        Wright (A)4,611
          FPP11,253
          MMP9,218
Rangitikei 
        Burgess (CH)728
        Marshall (N)8,346
        Michelini (NL)88
        Peck (A)4,924
        Schmidt (L)4,651
        Shaw (McGS)217
          FPP8,977
          MMP10,034
Remuera 
        Graham (N)12,584
        Haynes (L)3,633
        Holmes (DM)86
        Hoole (McGS)347
        Lodge (NL)129
        Phimester (CH)247
        Tierney (A)3,965
          FPP11,721
          MMP9,347
Roskill 
        Dunbar (CH)355
        Goff (L)7,664
        Myles (NZF)3,530
        Potaka (A)2,260
        Price (McGS)82
        Spence (N)5,459
          FPP8,786
          MMP10,465
Rotorua 
        Cairns (McGS)147
        Chadwick (L)5,018
        East (N)5,893
        Kohath (CH)374
        Reed (DM)133
        Ridings (A)5,464
        Sharp (NL)47
        Turner (I)164
          FPP6,533
          MMP10,712
Selwyn 
        Dennis (CH)425
        McCaskey (A)2,898
        Mack (NL)92
        McKenzie (NZF)1,496
        Mark (L)8,575
        Richardson (N)9,463
          FPP12,272
          MMP10,660
St Albans 
        Bunting (P)25
        Caygill (L)10,022
        Dawson (N)6,597
        Gordon (NZF)949
        Lovell (CH)481
        Newlove (A)3,423
        Pickering (NL)88
          FPP9,819
          MMP11,642
St Kilda 
        Cullen (L)10,019
        Fogarty (NZF)1,027
        Geerrlofs (CH)392
        McBey (A)4,948
        MacPherson (N)4,899
          FPP9,859
          MMP11,298
Sydenham 
        Alberts (CH)346
        Anderton (A)12,466
        Bergman (NZF)386
        Brownlee (N)3,209
        Coyle (L)4,990
        Drake (NL)62
        Dunick (McGS)110
        Hansen (EE)10
        Mundy (DW)12
          FPP8,167
          MMP13,292
Tamaki 
        Adams (UWR32
        De Boer (McGS)185
        Green (A)3,612
        Lindsay (CH)279
        Post (I)37
        Preston (NZF)1,739
        Simich (N)11,563
        Skelton (DM)51
        Stott (NL)75
        Wilson (L)3,300
          FPP11,695
          MMP9,184
Taranaki 
        Fairclough (NZF)1,420
        Greig (NL)116
        Maxwell (N)8,910
        Satherley (A)2,594
        Shramka (CH)403
        Wood (L)4,039
          FPP9,738
          MMP7,684
Tarawera 
        Bradford (N)7,873
        Campbell (DM)40
        Dickson (L)3,718
        Kingsley-Smith (A)3,081
        Stevens (CH)424
        Summerhays (McGS)191
        Van Batenburg (NL)38
        Yates (NZF)3,009
          FPP8,195
          MMP10,156
Tasman 
        Knowles (McGS)149
        Maisey (I)461
        Radford (A)2,539
        Rayner (NL)76
        Richards (I)80
        Rowling (L)6,958
        Smith (N)11,017
        Van Maanen (CH)235
        Waldron (I)25
          FPP9,354
          MMP12,032
Tauranga 
        Barham (A)2,064
        Cronin (N)4,714
        Hughes (NL)59
        Lee (L)2,839
        Peters (NZF)12,638
        Pittams (McGS)198
        Smith (CH)331
          FPP8,549
          MMP14,230
Te Atatu 
        Adams (N)4,724
        Boock (NL)27
        Bradford (UWR)36
        Broadbent (CH)342
        Brown (NZF)1,121
        Carter (L)6,889
        Franklin (McGS)89
        Harre (A)5,501
          FPP7,674
          MMP10,970
Timaru 
        Binns (A)2,533
        Bloxham (NZF)1,459
        Brodie (CH)200
        McTigue (N)7,213
        Sole (NL)59
        Sutton (L)10,153
          FPP10,079
          MMP11,407
Titirangi 
        Breckon (CH)367
        Burgering (I)42
        Haldane (UWR)66
        Hartnett (A)4,464
        Hasler (N)6,070
        Loza (NZF)1,182
        Sinclair (L)6,410
        Smith (McGS)146
        Thomas (NL)68
          FPP7,125
          MMP11,686
Tongariro 
        Burton (L)7,723
        Elder (A)2,458
        Peters (N)5,772
        Westaway (NL)88
        Wills (CH)229
          FPP8,025
          MMP8,227
Waikaremoana 
        Beamish (CH)336
        Forrest (A)3,184
        McClay (N)8,579
        Sheehan (L)4,558
        Thomson (NL)127
          FPP8,753
          MMP8,075
Waikato 
        Joyce (NZF)1,748
        McComb (DM)43
        Marsh (R)19
        Moore (L)4,578
        Petchey (A)3,358
        Prieset (CH)437
        Smith (McGS)234
        Storey (N)6,864
          FPP8,097
          MMP9,152
Waipa 
        Barnard (NL)40
        Holdway-Davis (CH)772
        Kiibridge (A)4,487
        O'Regan (N)8,217
        O'Sullivan (L)2,740
        Parlane (NZF)2,156
        Sutcliffe (McGS)178
          FPP9,536
          MMP9,002
Wairarapa 
        Creech (N)9,004
        Lloyd (CH)597
        MacPherson (A)4,162
        Reinsfield (NL)51
        Routhan (NZF)1,051
        Teahan (L)6,775
          FPP10,511
          MMP11,066
Waitakere 
        Cullen (I)120
        Hutchinson (L)5,103
        Lake (NZF)1,683
        Madison (A)3,933
        Martin-Buss (McGS)171
        Morgan (NL)81
        Neeson (N)8,283
        Rae (CH)366
          FPP8,988
          MMP10,744
Waitaki 
        Albiston (L)8,480
        Boynton (CH)292
        Francis (NZF)1,081
        Neill (N)8,533
        Verity (A)2,268
          FPP11,447
          MMP9,078
Waitotara 
        Gresham (N)8,496
        Keenan (A)3,113
        Lehmstedt (L)3,951
        Mulholland (CH)600
        Servian (McGS)228
        Woolston (NZF)2,286
          FPP9,955
          MMP8,660
Wallace 
        Bull (NL)87
        English (N)9,832
        Horton (A)2,359
        La Roche (I)217
        Soper (L)4,254
        Stevens (CH)628
        West (McGS)201
          FPP11,466
          MMP6,045
Wanganui 
        Campion (I)2,525
        Donoghue (N)4,028
        Frederikse (A)2,253
        Heffernan (NZF)3,621
        Pettis (L)7,399
        Rush (CH)378
          FPP8,955
          MMP11,135
Wellington-Karori 
        Bramwell (NZF)654
        Douglas (NL)99
        Gardiner (N)10,537
        Glendining (A)2,181
        Harris (CH)230
        Laidlaw (L)10,057
        Millen (McGS)215
          FPP11,188
          MMP12,811
West Coast 
        Kelly (NZF)622
        Moir (N)6,000
        Neame (I)852
        O'Connor (L)8,920
        Robinson (CH)321
        Sinclair (A)2,525
        Taylor (NL)42
          FPP9,967
          MMP9,244
Western Hutt 
        France (CH)443
        McGlinchy (McGS)192
        McLauchlan (N)9,043
        Ropata (NZF)742
        Steele (A)2,688
Western Huttcontinued 
Walsh (L)7,501
          FPP10,321
          MMP10,280
Whangarei 
        Banks (N)6,507
        Brittenden (A)2,649
        Cooke (McGS)152
        Donnelly (NZF)4,212
        Furey (L)4,920
        Gourlie (WW)94
        Smith (CH)275
        Treadwell (NL)75
          FPP7,458
          MMP11,420
Yaldhurst 
        Austin (L)10,659
        Booth (NZF)1,092
        Capill (CH)467
        Gordon (A)2,881
        Van Der Werf (NL)53
        Watson (N)7,662
          FPP11,618
          MMP11,156
Eastern Maori 
        Gray (N)664
        Iti (MM)1,388
        Kopu (A)2,645
        Para (NL)246
        Tapsell (L)9,311
        Wirepa (CH)404
          FPP5,324
          MMP9,372
Northern Maori 
        Austin (NL)75
        Cruickshank (CH)209
        Dargaville (N)709
        Gregory (L)5,238
        Henare (NZF)5,654
        Rata (A)4,422
        Te Kooti (MM)443
          FPP5,503
          MMP11,003
Southern Maori 
        Harris (MM)702
        Irwin (NL)119
        Parkinson (NZF)3,291
        Stevens (A)2,541
        Tirikatene-Sullivan (L)9,631
        Whare (CH)336
          FPP5,172
          MMP11,254
Western Maori 
        Ashford (CH)200
        Brown (N)502
        Joseph (A)2,015
        Pene (MM)709
        Taiaroa (NZF)4,104
        Thomas (NL)53
        Wetere (L)7,881
          FPP5,455
          MMP9,736

Table 2.23. MEMBERS OF PARLIAMENT, 44TH PARLIAMENT

Prime Minister—Rt Hon JB Bolger
Leader of the Opposition—Rt Hon HE Clark*
Speaker—Hon PW Tapsell
Deputy Speaker and Chairman of Committees—RJ Gerard
Clerk of the House—DG McGee
MemberElectorateParty

*Helen Clark replaced Mike Moore as Leader of the Opposition on 1 December 1993.

Anderson, RobertKaimaiNational
Anderton, JamesSydenhamAlliance
Austin, Hon MargaretYaldhurstLabour
Banks, Hon JohnWhangareiNational
Barker, RichardHastingsLabour
Birch, Rt Hon WilliamFranklinNational
Blincoe, JohnNelsonLabour
Bolger, Rt Hon JamesKing CountryNational
Bradford, MaxwellTaraweraNational
Braybrooke, GeoffreyNapierLabour
Burdon, Hon PhilipFendaltonNational
Burton, MarkTongariroLabour
Carter, ChristopherTe AtatuLabour
Carter, JohnFar NorthNational
Caygill, Hon DavidSt AlbansLabour
Clark, Rt Hon HelenMt AlbertLabour
Cliffe, Hon BruceNorth ShoreNational
Cooper, Hon WarrenOtagoNational
Creech, Hon WyattWairarapaNational
Cullen, Hon Dr MichaelSt KildaLabour
Dalziel, LianneChristchurch CentralLabour
Dunne, Hon PeterOnslowLabour
Duynhoven, HarryNew PlymouthLabour
Dyson, RuthLytteltonLabour
East, Hon PaulRotoruaNational
Elder, JackHendersonLabour
English, WilliamWallaceNational
Falloon, Hon JohnPahiatuaNational
Field, PhillipOtaraLabour
Fletcher, ChristineEdenNational
Gallagher, MartinHamilton WestLabour
Gardiner, PaulineWellington-KaroriNational
Gerard, JamesRangioraNational
Goff, Hon PhilipRoskillLabour
Graham, Hon DouglasRemueraNational
Gray, Hon RobertCluthaNational
Gresham, Hon PeterWaitotaraNational
Hawkins, GeorgeManurewaLabour
Henare, TauNorthern MaoriNZ First
Hilt, PeterGlenfieldNational
Hodgson, PeterDunedin NorthLabour
Hunt, Rt Hon JonathanNew LynnLabour
Keall, JudithHorowhenuaLabour
Kelly, GrahamPoriruaLabour
Kidd, Hon DouglasMarlboroughNational
King, Hon AnnetteMiramarLabour
Kyd, WarrenHaurakiNational
Lange, Rt Hon DavidMangereLabour
Laws, MichaelHawkes BayNational
Lee, Hon GraemeMatakanaNational
Lee, SandraAuckland CentralAlliance
Luxton, Hon JohnMatamataNational
Mackey, JanetGisborneLabour
McCardle, PeterHeretaungaNational
McClay, Hon RogerWaikaremoanaNational
McCully, Hon MurrayEast Coast BaysNational
McKinnon, Rt Hon DonaldAlbanyNational
McLauchlan, JoyWestern HuttNational
Maharey, StevenPalmerston NorthLabour
Mallard, TrevorPencarrowLabour
Marshall, Hon DenisRangitikeiNational
Matthewson, Hon CliveDunedin WestLabour
Maxwell, Hon RogerTaranakiNational
Meurant, RossHobsonNational
Moore, Rt Hon MichaelChristchurch NorthLabour
Neeson, BrianWaitakereNational
Neill, AlexanderWaitakiNational
Northey, RichardOnehungaLabour
O'Connor, DamienWest CoastLabour
O'Regan, Hon KatherineWaipaNational
Peck, MarkInvercargillLabour
Peters, WinstonTaurangaNZ First
Pettis, JillWanganuiLabour
Revell, IanBirkenheadNational
Richardson, Hon RuthSelwynNational
Robertson, RossPapatoetoeLabour
Robertson, JohnPapakuraNational
Rogers, TrevorHowickNational
Roy, EricAwaruaNational
Ryall, AnthonyEastern Bay of PlentyNational
Shipley, Hon JenniferRakaiaNational
Simich, ClemTamakiNational
Sinclair, SuzanneTitirangiLabour
Smith, Hon Dr LockwoodKaiparaNational
Smith, NickTasmanNational
Sowry, RogerKapitiNational
Storey, Hon RobsonWaikatoNational
Sutherland, LarryAvonLabour
Sutton, Hon JamesTimaruLabour
Swain, PaulEastern HuttLabour
Tapsell, Hon PeterEastern MaoriLabour
Tennet, ElizabethIsland BayLabour
Tirikatene-Sullivan, Hon Whetu MaramaSouthern MaoriLabour
Tizard, JudithPanmureLabour
Upton, Hon SimonRaglanNational
Wetere, Hon KoroWestern MaoriLabour
White, JacquelineManawatuLabour
Williamson, Hon MauricePakurangaNational
Yates, DianneHamilton EastLabour

The second Bolger ministry.

Table 2.24. THE SECOND BOLGER MINISTRY

The Cabinet

Rt Hon Jim Bolger, Prime Minister.

Rt Hon Don McKinnon, Deputy Prime Minister, Minister of Foreign Affairs and Trade, Minister of Pacific Island Affairs.

Rt Hon W F Birch, Minister of Finance.

Hon Paul East, Attorney-General, Minister of State Services.

Hon Jenny Shipley, Minister of Health, Minister of Women's Affairs.

Hon Doug Kidd, Minister of Labour, Minister of Fisheries, Minister of Energy.

Hon Philip Burdon, Minister of Commerce, Minister for State-owned Enterprises (all SOEs except Radio NZ and TVNZ).

Hon Simon Upton, Minister for the Environment, Minister of Research, Science and Technology, Minister for Crown Research Institutes.

Hon Dr. Lockwood Smith, Minister of Education.

Hon John Falloon, Minister of Agriculture, Minister of Forestry.

Hon Wyatt Creech, Minister of Employment, Minister of Revenue, Deputy Minister of Finance.

Hon Douglas Graham, Minister of Justice, Minister for Disarmament and Arms Control, Minister of Cultural Affairs.

Hon John Banks, Minister of Tourism, Minister for Sport, Fitness and Leisure, Minister of Local Government.

Hon Denis Marshall, Minister of Conservation, Minister of Lands.

Hon John Luxton, Minister of Maori Affairs, Minister of Police.

Hon Warren Cooper, Minister of Defence, Minister of Internal Affairs, Minister of Civil Defence.

Hon Maurice Williamson, Minister of Transport, Minister of Statistics, Minister of Communications, Minister of Broadcasting.

Hon Murray McCully, Minister of Housing, Minister of Customs.

Hon Denis Marshall, Minister of Lands, Minister of Survey and Land Information. Associate Minister of Agriculture, Associate Minister of Employment.

Mr P J Gresham MP, Minister of Social Welfare, Minister for Senior Citizens.

Mr B W Cliffe MP, Minister for Accident Rehabilitation and Compensation Insurance.

Ministers outside Cabinet

Hon Roger Maxwell, Minister of Immigration, Minister of Business Development.

Hon Roger McClay, Minister of Youth Affairs.

Hon Katherine O'Regan, Minister of Consumer Affairs.

Parliamentary Under-secretaries Mr W J Kyd MP, Parliamentary Under-secretary to the: Minister of Commerce, Minister for Industry, Minister for State-owned Enterprises.

Mr A R Meurant MP, Parliamentary Under-secretary to the: Minister of Agriculture, Minister of Forestry.

Mr S W English MP, Parliamentary Under-secretary to the: Minister of Health, Minister for Crown Health Enterprises.

Other responsibilities

Ministers with other vote or statutory responsibilities are indicated below.

Rt Hon Jim Bolger, Minister in Charge of the New Zealand Intelligence Service.

Rt Hon Don McKinnon, Leader of the House.

Hon W F Birch, Government Superannuation Fund.

Hon Paul East, Minister for Crown Health Enterprises, Minister in Charge of the Audit Department, Serious Fraud Office.

Hon Philip Burdon, Minister for Industry, Minister for Trade Negotiations, Associate Minister of Foreign Affairs and Trade, Minister of Railways, Minister in Charge of Public Trust Office.

Hon Dr Lockwood Smith, Education Review Office, National Library.

Hon John Falloon, Minister for Racing.

Hon Douglas Graham, Minister in Charge of Treaty of Waitangi Negotiations.

Hon Denis Marshall, Minister in Charge of the Valuation Department, Associate Minister of Agriculture, Associate Minister of Employment.

Hon John Luxton, Associate Minister of Education.

Hon Warren Cooper, Minister in Charge of War Pensions.

Hon Maurice Williamson, Minister for Information Technology, Associate Minister of Health.

Hon Murray McCully, Associate Minister of Tourism, Housing New Zealand, Housing Corporation.

Mr B W Cliflfe MP, Associate Minister of Finance, Radio New Zealand Limited, Television New Zealand Limited.

Hon Roger Maxwell, Associate Minister of Employment.

Hon Roger McClay, Associate Minister of Education, Associate Minister of Social Welfare, Associate Minister of Pacific Island Affairs.

Hon Katherine O'Regan, Associate Minister of Health, Associate Minister of Social Welfare, Associate Minister of Women's Affairs.

Contributors

  • 2.1 Department of Justice.

  • 2.2 Clerk of the House of Representatives; Parliamentary Service; Department of the Prime Minister and Cabinet; Department of Justice; Department of Internal Affairs.

  • 2.3 State Services Commission; government departments as listed; New Zealand Planning Council; Audit Office; Office of the Ombudsmen; Office of the Parliamentary Commissioner of the Environment.

  • 2.4 Department of Internal Affairs; Local Government Commission.

  • 2.5 Department of Internal Affairs.

Special articles

State Services Commission; Office of the Clerk of the House of Representatives; Department of Justice; Who's Who in New Zealand, ed Lambert, 12th edition, Reed Books, 1991; New Zealand Herald.

Further information

Constitution

Burrows J F (1992), Statute Law in New Zealand, Butterworths.

Joseph P A (1993), Constitutional Law in New Zealand, Law Book Company.

Mai C and Palmer G (1993), Public Law in New Zealand: Cases, Materials, Commentary and Questions, Oxford University Press.

Mulholland R D (1985), Introduction to the New Zealand Legal System, 6th ed, Butterworths.

Robson J L et al (1967), New Zealand: The Development of its Laws and Constitution, 2nd ed, Stevens.

Scott K J (1962), The New Zealand Constitution, Clarendon Press.

Parliament and the Cabinet

Parliamentary Bulletin. GP Print (weekly when the House of Representatives is sitting).

Report of the Department of Internal Affairs (Parl paper G7).

Report of the Department of the Prime Minister and Cabinet (Parl paper G48).

Report of the Royal Commission on the Electoral System; Towards a Better Democracy. (Parl paper H3, 1986).

Standing Orders of the House of Representatives. GP Print, 1992.

Who's Who in the New Zealand Parliament. Parliamentary Service, 1990.

Gold and Hyam (ed) (1992), New Zealand Politics in Perspective, 3rd ed, Longman Paul.

Jackson K (1987), The Dilemma of Parliament, Allen&Unwin.

McGee D G (1985), Parliamentary Practice in New Zealand, Government Printer.

Ringer J B (1992), An Introduction to New Zealand Government, Hazard Press.

State sector

Directory of Official Information. Department of Justice (biennial).

Reports of the Controller and Auditor-General (Parl paper B28).

Reports of the Parliamentary Commissioner for the Environment (Parl paper C12).

Report of the Ombudsmen (Parl paper A3).

Report of the State Services Commission (Parl paper G3).

Tables of New Zealand Acts and Ordinances and Statutory Regulations in Force. Government Printer (annual).

All government departments and many statutory organisations publish annual reports in the parliamentary paper series.

Local government

Report of the Department of Internal Affairs (Parl paper G7).

Report of the Local Government Commission (Parl paper G9).

Statement on Reform of Local and Regional Government by Minister of Local Government. Local Government Commission, 1988.

Chapter 3. International relations and defence

Chilean President Patricio Aylwin arriving in New Zealand, October 1993.

3.1 Relations with other countries

Independent New Zealand foreign policy dates from 1935. In 1943 the Government established a career foreign service, and began to station its own diplomatic representatives overseas. Today, New Zealand has 45 diplomatic and consular posts located in 38 countries and territories. Multiple accreditation allows some New Zealand representatives to cover other countries from their bases.

The Ministry of Foreign Affairs and Trade is responsible on behalf of the Government for all major policy functions related to New Zealand's external relations. (The ministry's name changed from the Ministry of External Relations and Trade from 1 July 1993.) The main thrust of the ministry's work is directed to the management of New Zealand's bilateral relations with other countries and interests in international institutions. Other functions include management of New Zealand official development assistance, provision of consular services to New Zealanders abroad, provision of operational and administrative support services to other New Zealand Government agencies overseas, and management of the New Zealand Antarctic Programme.

The New Zealand Antarctic Programme is based in Christchurch at the International Antarctic Centre and also maintains a permanent New Zealand facility at Scott Base in the Ross Dependency.

The ministry is the official channel of communication between the New Zealand Government and other governments. It also administers Tokelau and undertakes external affairs and defence functions for the Cook Islands and Niue, after consultation with their respective heads of government.

The ministry consults closely with other government departments and agencies on domestic and international developments and their interrelationships. The New Zealand Trade Development Board is a particularly important partner in developing and implementing programmes to promote foreign exchange earnings.

In addition, it is responsible for operating and administering the network of diplomatic and consular posts which represent and pursue New Zealand's interests overseas. The posts also perform services overseas on behalf of all government departments and offer assistance to New Zealanders overseas, whether travelling in official or private capacities, and issue passports and visas overseas.

For the addresses of New Zealand's overseas posts, and for information on diplomatic, consular and other representation in New Zealand refer to the ministry's publications Overseas Posts, and the Diplomatic List: Diplomatic and Consular Representatives in New Zealand.

South Pacific

New Zealand has diplomatic missions in most of the countries of the South Pacific and maintains regular contact on a range of bilateral and regional issues. Over 60 percent of bilateral development assistance is directed to the South Pacific.

A special relationship exists between New Zealand and the Cook Islands, and Niue. The Cook Islands became a self-governing state in free association with New Zealand in 1965, and Niue in 1974. Both governments have full legislative and executive competence, and can conduct their own external relations and enter into international agreements. But a constitutional relationship provides for the exercise by New Zealand of certain responsibilities for defence and external relations. This does not confer any rights of control. Cook Islanders and Niueans are New Zealand citizens. The relationship between the Cook Islands and New Zealand was elaborated in 1973 as ‘one of partnership, freely entered into and freely maintained’. Tokelau is described in section 3.3, New Zealand territories.

The region (not including Australia) is of growing importance to New Zealand, with exports of $645 million in 1993. Fiji, Papua New Guinea and the French Territories are the most important markets. Imports, amounting to about $125 million, came principally from Fiji and Nauru. New Zealand has taken special measures to foster trade with these countries and New Zealand investment in the region. A regional trade agreement, South Pacific Regional Trade and Economic Co-operation Agreement (SPARTECA), provides unrestricted duty-free access to New Zealand (and Australia) on a non-reciprocal basis for products exported by island countries. The Pacific Islands Industrial Development Scheme (PIIDS) provides financial assistance and incentives for joint ventures between New Zealand companies and Pacific Island companies, developing approved manufacturing operations in selected Pacific countries. Its objective is to foster economic development and employment opportunities there.

There is close co-operation with the South Pacific on defence matters. New Zealand's armed forces undertake mutual assistance programmes, joint exercises and maritime surveillance. They provide immediate help after natural disasters such as cyclones, and undertake civil development projects in isolated areas.

In 1971 the South Pacific Forum was created to build up regional co-operation in the South Pacific. Meetings are held annually, most recently in Honiara in 1992 and Nauru in 1993. The forum provides an opportunity for states to discuss common problems, exchange views, consider priorities, and plan programmes for mutual and regional benefit. The topics considered include regional trade, shipping, civil aviation, telecommunications, the environment, the law of the sea, fishing, disaster relief, nuclear testing, regional security and decolonisation.

The forum established the Forum Secretariat, which is tasked with the implementation of forum decisions. It works on a broad range of economic and political questions. This agency is located in Suva. The forum also set up the South Pacific Forum Fisheries Agency to facilitate the rational utilisation and conservation of the region's marine resources. Its headquarters are in Honiara. Recently the forum encouraged the establishment of an autonomous regional environment agency—the South Pacific Regional Environment Programme (SPREP), located in Apia, Western Samoa.

The Pacific Forum Line (PFL) is another endeavour in South Pacific regional co-operation. Ten of the region's nations operate the shipping line; it charters three vessels and aims to facilitate regional trade through improved shipping links. Together with other governments in the region New Zealand has made additional contributions since the PFL began operations in 1978, but PFL is now on a commercial footing.

Established in 1947 under the Canberra Agreement, the South Pacific Commission (comprising the independent countries of the South Pacific, the non-self-governing territories, and metropolitan governments such as Britain, France and the United States) is primarily a technical assistance organisation, and 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 is mainly funded from proportional contributions by member governments and from voluntary contributions made by certain of the member governments and by a wide range of international donors.

Australia

A diplomatic office was established in Australia in 1943 (trade posts had been established as early as 1906), and in 1944 the Australia-New Zealand Agreement (known also as the ANZAC Pact or the Canberra Pact) was signed. In 1983, the two countries concluded the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA or CER for short). Complete free trade in goods was achieved on 1 July 1990 providing for the progressive removal of obstacles to the flow of services and investment between the two countries. The agreement was reviewed again in 1992. See also section 22.2, Trading partners.

In matters of foreign policy, defence and economics, regular and increasingly frequent bilateral meetings take place with a minimum of formality covering almost all government activity. Australia is a major trading partner for New Zealand, which is in turn Australia's second largest single market for manufactured exports. In defence, the ANZAC partners continue to co-operate closely in force structure development, training, exercises and procurement under the aegis of Closer Defence Relations (CDR). In 1989, New Zealand agreed to acquire two replacement frigates through the joint ANZAC ship project with Australia. The Australia-New Zealand Foundation sponsors research projects and publications, as well as cultural exchanges. There is free movement of people under the Trans-Tasman Travel Arrangement.

Asia

New Zealand has become increasingly involved in developments in the Asia/Pacific region. Asia provides a market for over one-third of our exports and a source of almost a third of our imports. It is a major source of investment and of trained migrants. Political relations with Asian nations are close, reinforced by high-level visits and regular consultations involving officials and ministers. New Zealand maintains diplomatic missions in Beijing, Tokyo, Seoul, Hong Kong, Bangkok, Kuala Lumpur, Manila, Singapore, Jakarta and New Delhi and a trade office in Shanghai.

New Zealand is one of the original dialogue partners of the Association of South-East Asian Nations (ASEAN) and co-operates with ASEAN in a number of regional development and trade promotion activities. It has followed closely the peace settlement process in Cambodia and has contributed both military and civilian personnel to the United Nations‘ Transitional Authority in Cambodia (UNTAC). The New Zealand Defence Force maintains defence co-operation programmes with the six ASEAN countries and works with Singapore and Malaysia through the Five Power Defence Arrangements.

One of the founding members of the Asia/Pacific Economic Co-operation (APEC) forum, established in 1989, New Zealand plays an active part in APEC working groups. At the non-governmental level, New Zealand also participates in the Pacific Economic Co-operation Council, which groups business people, academics and officials from all our major regional trading partners. Given the many mutual interests within the region, New Zealand also cooperates closely with the ASEAN nations and other regional partners in wider international forums, including the United Nations and the GATT.

Bilateral trade with most of our main Asian trading partners is rising fast. The economic relationship with Japan is among our most important and Japan remains New Zealand's second largest export market. Trade is increasingly diversified, helped by the complementary nature of the Japanese and New Zealand economies, and tourism and investment from Japan are playing an important role in the development of New Zealand's economy. Accelerating economic reform in China is opening up exciting possibilities for New Zealand in Asia's largest market, with total trade in the year ended June 1992 exceeding $700 million. Two-way investment is also growing. Trade with South Korea, Taiwan and Hong Kong is also increasing and these markets offer excellent potential.

The rapid growth of the ASEAN economies, with Singapore, Thailand, Malaysia and Indonesia all experiencing consistent annual growth rates of between 6 and 12 percent, has contributed to this increase in trade. Singapore is now a major source of investment capital for New Zealand and rising incomes in South-East Asia are creating a demand for our high-quality food products and technology. ASEAN is also an important source of tourists, with direct aviation links now operating with Singapore, Indonesia, Malaysia and Thailand.

Americas

United States. New Zealand's relationship with the United States is one of the most significant, varied and co-operative that New Zealand maintains. Shared values underpin close governmental and private sector contacts across a broad range of bilateral and multilateral activities. The United States is one of New Zealand's three most important export markets and a major source of New Zealand imports and investment. In the multilateral trade field, the two countries espouse similar open market philosophies. Co-operation is also close on international environmental matters and in Antarctic scientific research. Programmes for scientific, cultural and academic exchange maintain an awareness of New Zealand in the United States and promote the interchange of ideas and experience.

Canada. New Zealand and Canada have long enjoyed a positive and close relationship, based on shared bilateral Commonwealth, United Nations and Asia/Pacific interests. The two countries work closely on a range of issues, including defence, security, disarmament, international peacekeeping, environmental concerns, Asia-Pacific policies, and international economic matters. Canada is an important market for our agricultural goods, particularly beef. A Trade and Economic Co-operation Agreement (TEC) which provides for, among other things, regular consultative outtrade issues, was signed in 1981 between the Governments of New Zealand and Canada, and governs trade and economic relations.

Latin America and the Caribbean. New Zealand is represented in Latin America by embassies in Mexico and Chile. The Ambassador in Mexico is cross-accredited to Colombia, Peru and Venezuela, and the Ambassador in Chile to Argentina, Brazil and Uruguay. The embassies’ efforts are supported by honorary consular representatives in Bogotā, Lima, Buenos Aires, Sao Paolo and Montevideo whose responsibilities also include the facilitation of trade. The High Commissioner in Ottawa is accredited to the Caribbean countries of Barbados, Guyana, Jamaica and Trinidad and Tobago and there is an honorary consul in Port of Spain.

Trade is the primary focus of New Zealand's relationship with Latin America and the Caribbean, mainly exports of dairy products, agricultural machinery and meat. There are opportunities for New Zealand involvement in agricultural, forestry and energy sectors. New Zealand provides a modest amount of economic and social development assistance to the region. New Zealand shares interests with those of a number of Latin American and Caribbean countries in areas such as international trade, environment, Antarctica, disarmament and Pacific regional co-operation.

Western Europe

The European Community (EC) is one of New Zealand's four top markets, along with Australia, Japan and the United States. There are restrictions on access to the EC for dairy products and sheepmeat, but the other main New Zealand primary product exports, such as apples, kiwifruit, fish and timber have largely unrestricted access. A long-term GATT settlement would place dairy and sheepmeat exports to the EC on a firmer footing.

The EC adopted a single market on 1 January 1993, although many of the measures to free up the movement of goods, services, capital and people across EC borders were already in place, while others have yet to be fully achieved. New Zealand exporters are benefiting from the single market as a result of the disappearance of multiple standards and import regulations.

The countries of the EC are important partners for New Zealand in investment and as sources for technology and expertise. The economy benefits from European migrants with capital and entrepreneurial skills, and tourists, especially those from Germany who stay for longer periods, also make a significant contribution to the New Zealand economy.

New Zealand maintains a high level of political consultation with the EC. Since 1990 New Zealand has had the opportunity for a high-level meeting with each of the revolving six-monthly presidencies of the EC. Since 1991 the Minister of Foreign Affairs and Trade has held these consultations with the Luxembourg, Portuguese, British and Danish presidencies. Close regular contact is maintained by New Zealand's network of posts in Western Europe with individual EC member states, and with the European Commission in Brussels, on a range of political and economic issues.

Western European countries outside the EC belong to European Free Trade Association. The majority of these countries aspire to join the EC. Meanwhile the two organisations have established a European Economic Area covering most of their trade (although not agricultural trade). By 1995 it is likely that Austria, Sweden and Finland will have joined the EC, thus increasing its economic importance to New Zealand.

Central and Eastern Europe

Reverberations from the fall of Communist regimes in Central and Eastern Europe continue to be felt. On 1 January 1993 Czechoslovakia separated peacefully into the Czech Republic and Slovakia. In contrast, conflict has continue and intensified in a number of countries that once made up the Socialist Federal Republic of Yugoslavia.

In general the countries of the region are moving from one party states and centrally-planned economies to political pluralism and free market economies. In general, too, they are seeking to strengthen their links with Western Europe and particularly with the European Community. But the pace of political and economic reform has been uneven.

New Zealand has sought to assist this reform through its involvement of the EC-led G24 process and its membership of the European Bank for Reconstruction and Development. Aside from this, and New Zealand's interest in the former Yugoslavia stemming from its membership of the United Nations Security Council, the relationship with the region is primarily economic. A number of joint ventures, mainly in the field of agricultural technology, have been established in Hungary and the Czech Republic.

OVERSEAS REPRESENTATION

Responsibility for New Zealand's government to government relations with Poland, Hungary, the Czech Republic and Slovakia lie with the Embassy in Bonn. Commercial relations with these countries and others in the region are handled by the TRADENZ office in Hamburg.

Former Soviet Union

Trade remains the central component of New Zealand's economic relations with the states of the former Soviet Union, although it has been disrupted by delays in payment caused by a shortage of hard currency. The debt largely relates to pre-1992 business and most exporters are prepared to do new business for cash payments. Many are seeking new methods of securing contracts, including building relationships with the increasingly autonomous regional executives, especially in the Russian Far East. There is a direct shipping route between New Zealand and the region, and several New Zealand companies have offices there.

The involvement of Russian and Ukrainian fishing vessels also adds considerable value to the economic relationship, and some New Zealand shipping agents are involved in moves to expand trade into the region.

International financial assistance to the countries of the former Soviet Union, combined with the implementation of market-based reforms (assuming these go ahead as planned), will help create opportunities for traders in the medium term. In the short term, New Zealand service agencies are looking to undertake projects as part of the economic reconstruction of the former Soviet Union under the auspices of such international agencies as the World Bank and the European Bank for Reconstruction and Development. New Zealand's expertise in privatisation, legal drafting and land management is of particular relevance at this time, along with a number of other disciplines in which New Zealanders are well experienced.

President of Ireland, Mary Robinson, who visited New Zealand in September 1993.

Middle East

New Zealand has major economic interests in the Middle East. The region is an important market for New Zealand agricultural exports and a source of much of New Zealand's energy requirements. In 1992 New Zealand exports to the region reached $649.7 million, a 33 percent increase over 1991. Imports from the region, mostly of oil products, were $788.9 million. New Zealand has embassies in Tehran, Riyadh and Ankara, and accreditations to several other Middle Eastern countries. New Zealand has also been involved in international peacekeeping efforts in the region.

For more than 40 years New Zealand has maintained an evenhanded policy on the Arab/Israel issue, consistently upholding the right of the Palestinian people to self-determination and, with equal consistency, Israel's right to exist within secure borders. New Zealand has contributed a contingent to the Sinai Multinational Force and Observers (MFO) based on the Egypt/Israel border since 1982. The Middle East peace negotiations, which began at Mandrid in October 1991, have New Zealand's full support as the best chance yet for a settlement of this long-standing dispute.

New Zealand's contribution to the multinational United Nations force which liberated Kuwait in the 1991 Gulf War has been followed by New Zealanders‘ participating on a personal basis in the United Nations demarcation of the Kuwait/Iraq border. The Government has also made available military medical personnel to serve with the United Nations Special Commission (UNSCOM) operation designed to eliminate Iraq's capacity to produce and deploy weapons of mass destruction.

On taking up its membership of the United Nations Security Council at the beginning of 1993, New Zealand assumed the position of Chair of the Council Committee charged with the administering the application of United Nations sanctions against Iraq.

Africa

In recent years there has been increased contact between New Zealand and Africa. New Zealand has received visits by the Foreign Ministers of Nigeria, Zambia, Zimbabwe, Mozambique and South Africa.

New Zealand's diplomatic coverage in Africa has expanded with the Harare High Commission, in Zimbabwe, now accredited to Kenya, Tanzania, Zambia, Mozambique, Botswana, Namibia and the United Nations Environment Programme (UNEP). New Zealand posts in London, Paris and Riyadh are accredited to Nigeria, Algeria and Egypt respectively.

New Zealand has had a long-standing involvement in development co-operation in Africa. It also contributes to Commonwealth and other multilateral programmes. New Zealand has also contributed to international relief appeals.

In the international arena New Zealand is active on the issue of apartheid and continues to support the peaceful transition to multiracial democracy in South Africa. New Zealand has participated in the Commonwealth Observer Mission in South Africa (COMSA). It has implemented all economic and other measures against South Africa recommended by the United Nations and the Commonwealth and supports the Commonwealth's programmed management approach to sanctions which is to lift them progressively in response to significant progress in the development of a multiracial democracy, and the policy of selective sporting contacts.

Total trade with African countries accounts for only a small percentage of New Zealand's global trade. The major exports to the region are dairy products, fish, wool, textiles and electrical equipment. Imports from Africa include cocoa, coffee, sisal and tobacco. Algeria is New Zealand's most important market in the continent.

Assistance to developing countries

New Zealand's Official Development Assistance (ODA) programme is managed by the Development Co-operation Division of the Ministry of Foreign Affairs and Trade in Wellington in conjunction with New Zealand's diplomatic posts overseas. New Zealand views its ODA programme as a co-operative process and as a partnership of the peoples and countries involved. In carrying out its work, the ministry's development expertise and experience are complemented by those of a wide range of New Zealanders drawn from both private and public sectors, as well as counterparts in the partner countries.

New Zealand's ODA programme follows a set of nine guiding principles, which were most recently revised in April 1992. These include the recognition that an effective and appropriate programme of co-operation with developing countries is in the long term political and economic interests of all the partner countries involved, including New Zealand, and contributes to stability and harmony in the international community. The principal purpose of New Zealand's ODA is to help promote sustainable economic and social progress and justice in developing countries.

For financial and administrative purposes the NZODA programme is divided into two broad schedules of activities—bilateral and multilateral. The bilateral schedule encompasses New Zealand's development co-operation with over 40 other countries. The main focus, however, is on the more extensive co-operation programmes under way with around 20 major partner countries in the South Pacific and South-East Asia.

The bilateral schedule is dominated by direct assistance on a one-to-one country-to-country basis, comprising in most cases a wide range of developmental projects. Direct bilateral assistance of this kind accounts for over half of New Zealand's total ODA spending. In addition, a number of regional programmes which serve groups of bilateral partner countries are also included on the bilateral schedule of NZODA. For example, New Zealand promotes development of the South Pacific region as a whole with contributions to the Pacific Forum Secretariat, the South Pacific Commission, the Forum Fisheries Agency, the South Pacific Regional Environment Programme, and the University of the South Pacific. Another large component of the bilateral schedule is funding of tuition fees scholarships for partner country citizens to study and train independently in New Zealand, in addition to those students fully funded under the individual country programmes.

Substantial bilateral ODA funding is also directed to emergency and disaster relief operations, both government-to-government and through established disaster relief organisations and international agencies (see section 3.2, Humanitarian relief).

Support for non-governmental organisations (NGOs) with established track records in assisting developing countries is another important component of the bilateral schedule of NZODA. This currently takes the form of annual grants to Volunteer Service Abroad (VSA) and the NGO umbrella group, the Council for International Development (CID). In addition, the Voluntary Agency Support Scheme (VASS) helps fund NGO programmes in developing countries all over the world. Recommendations for VASS funding are made by a project selection committee including three members elected by the New Zealand NGO community.

The multilateral schedule of the ODA programme comprises New Zealand's contributions to the major international development organisations. These fall into four broad categories—international financial institutions, United Nations agencies, Commonwealth agencies, and various other multilateral development and humanitarian organisations, such as the International Planned Parenthood Federation and the International Committee of the Red Cross.

Participation in institutions such as the International Development Association, the Asian Development Fund, the United Nations Development Programme, and the Commonwealth Fund for Technical Co-operation gives New Zealand a hand in international efforts to alleviate poverty through development at the global and trans-regional level. These multilateral institutions are especially helpful in directing assistance to regions where New Zealand is not widely represented at the bilateral level.

Table 3.1. OFFICIAL DEVELOPMENT ASSISTANCE PROGRAMME ALLOCATIONS. 1992–1993

Bilateral schedule—$(000)
Source: Ministry of Foreign Affairs and Trade.
South Pacific Programmes: 
        Cook Islands14,007
        Niue7,509
        Tokelau4,622
        Western Samoa7,360
        Tonga5,640
        Papua New Guinea5,759
        Fiji5,301
        Vanuatu4,149
        Solomon Islands4,191
        Other Pacific Islands Countries5,450
        South Pacific Regional Programmes11,228
          Subtotal South Pacific programmes75,227
        ASEAN and other Asia programmes14,517
        Africa, Latin America2,861
        Relief operations, voluntary agencies, etc10,307
        Education and training (tuition fees, etc.)17,463
          Total bilateral schedule119,959
        Multilateral Schedule— 
        International financial institutions11,225
        United Nations agencies7,689
        Commonwealth agencies1,479
        Other organisations1,627
          Total multilateral schedule22,046
          Total Official Development Assistance142,005

3.2 International organisations

United Nations

New Zealand was a founding member of the United Nations organisation in 1945. Successive governments have strongly supported it as a major instrument for maintaining peace and security, developing friendly relations among countries, encouraging international co-operation aimed at solving economic and social problems, and promoting respect for human rights. Over the years the range and complexity of functions of the United Nations (UN) and its specialised agencies have steadily grown. New Zealand concentrates on areas where it can play a useful role in matters directly affecting its interests and where it can support efforts to secure lasting peace and security.

Peace operations. During 1991-92, New Zealand strengthened its firm commitment to UN peacekeeping by increasing the number of its personnel involved in peacekeeping operations. By the middle of 1993, New Zealand had nearly 140 personnel serving in the Middle East (UNTSO and UNSCOM), Cambodia (UNTAC), Yugoslavia (UNPROFOR) and Somalia (UNDSOMII). In addition to the provision of personnel, New Zealand (as a United Nations member), is legally obliged to contribute financially to the cost of UN peacekeeping operations. In 1992-93 New Zealand's share of these costs amounted to $6 million.

Humanitarian relief. In 1992-93 New Zealand contributed $6.4 million to humanitarian relief. Aid to assist Pacific nations in reconstruction following cyclones Kina, Nina, Lyn and Prema amounted to $857,699. Further afield, New Zealand contributed $1.7 million to relief operations in Somalia, Mozambique, South-East Asia and to the former Yugoslavia. New Zealand also contributed extra payments to multilateral organisations in recognition of the unprecented pressure on these agencies to provide humanitarian assistance where conflict and famine occurs. These organisations included the World Food Programme (WFP), United Nations High Commissioner for Refugees (UNHCR), United Nations Relief and Works Agency (UNRWA) and the International Committee of the Red Cross (ICRC).

Human Rights. United Nations’ efforts to promote and protect human rights received special attention in 1993 with the holding of the second World Conference on Human Rights in Vienna in June. The purpose of the conference was to examine progress made in the field of human rights since the last world conference, 25 years ago, and to identify ways of making the United Nations system more effective. The ‘Vienna Declaration and Programme of Action’, adopted as the concluding document of the conference, reiterates important human rights principles and sets a comprehensive agenda for activities in the field of human rights into the 21st century.

Indigenous issues also received special attention internationally in 1993 through the United Nations International Year of the World's Indigenous People. New Zealand was one of the main sponsors of the resolution proclaiming the year in the United Nations General Assembly, and actively supported activities during the year, including two contributions to a voluntary fund for special projects initiated and controlled by indigenous peoples world-wide.

New Zealand continued to give financial support to United Nations voluntary funds in the field of human rights, including funds to assist victims of torture, for advisory services and for indigenous populations. New Zealand also continued to lend its support at the Commission on Human Rights and in the Third Committee of the General Assembly (which deals with social, cultural and humanitarian issues) to resolutions addressing a wide range of current international human rights concerns. An on-going priority for New Zealand is the system of international human rights instruments, and the effective functioning of the monitoring bodies set up under those treaties. New Zealand also used these international forums to register its concern regarding the human rights situations in Cambodia, Somalia and the former Yugoslavia. The rape and sexual abuse of women and children in the former Yugoslavia was also loudly condemned by the international community.

The issue of violence against women in all its forms has been the subject of growing international attention. New Zealand participated in the drafting of a new United Nations Declaration of the Elimination of Violence Against Women, which was presented to the General Assembly in 1993. New Zealand also continued to be active internationally on a range of issues regarding the status of women internationally. A current concern is to mobilise the United Nations on a system-wide basis to pay more attention to women's issues as a basic human rights concern.

As a party to the international human rights conventions New Zealand is required to report regularly to the United Nations monitoring bodies on the measures it has taken to give effect to its obligations under the treaties. New Zealand presented its initial report to the Committee on Economic, Social and Cultural Rights in November 1993, and will present its second periodic report to the Committee on the Elimination of Discrimination Against Women in January 1994.

1994 has been designated United Nations International Year of the Family. The New Zealand Government intends to observe the year and is currently working through the details of its response. A number of initiatives relevant to the theme are planned in different areas. The year is seen as an opportunity to promote acceptance of the variety of family structures that exist in New Zealand, and to increase public awareness of the different kinds of assistance and support available to families.

The specialised agencies. The United Nations 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 is the Food and Agricultural Organisation (FAO) which aims to raise levels of nutrition and global living standards, to promote agriculture and food security, and to expand the world economy. Similarly, the World Health Organisation (WHO) seeks ‘the attainment by all peoples of the highest possible level of health’, the International Labour Organisation (ILO) seeks to improve working and living conditions and the United Nations Educational, Scientific and Cultural Organisation (UNESCO) seeks to increase international co-operation through education, science and culture.

Four agencies participate in efforts to promote the international flow of capital for productive purposes and facilitate the economic development of less developed countries. These are the International Bank for Reconstruction and Development (IBRD, or the World Bank), the International Monetary Fund (IMF), the International Finance Corporation (IFC) and the International Development Association (IDA).

Other United Nations 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) and industrial development (UNIDO).

Contributions to United Nations. Contributions to the United Nations’ budget are based on members’ capacity to pay. For the three years 1992-94 New Zealand's assessed contribution rate was set at 0.24 percent of the regular budget, resulting in annual dues in 1993 of $4.6 million. Contributions to the budgets of specialised agencies are fixed according to a scale of assessment agreed by the membership as a whole. New Zealand's assessed contributions to peacekeeping operations are set at 0.24 percent. In 1992-93, these dues amounted to $6 million.

General Agreement on Tariffs and Trade (GATT). Begun in 1947 as a framework for negotiations to achieve substantial reductions in tariffs and other barriers to trade, GATT's world membership has expanded from 23 original member countries (which included New Zealand) to 110 parties. The GATT membership represents over 80 percent of world trade. The Secretariat for GATT is a United Nations specialised agency, based in Geneva.

The GATT has been founded on the principle of non-discrimination amongst contracting parties, embodied in the most-favoured nation (MFN) obligation. The MFN principle is particularly important to countries such as New Zealand, since it ensures that larger nations cannot exert economic influence through discriminatory trade policies.

A series of multilateral trade negotiations has been held, with the aim of reducing obstacles to trade and refining the rules and disciplines. In 1986 member countries agreed to embark on an eighth round of negotiations, the Uruguay Round. This is the most ambitious set of negotiations yet, extending to 15 broad areas, many not previously covered by GATT rules. New Zealand's main priority continues to be to ensure that trade in agricultural products, which has never been fully integrated into the GATT system, is progressively liberalised and brought under effective rules and disciplines (for both barriers and subsidies). The Cairns Group of agricultural trade reformers, in which New Zealand is an active participant, is working to that end.

Wellington schools’ Sarajevo Relief Fund donations.

The Uruguay Round was scheduled to have been completed by the end of 1990. A ministerial meeting was convened in Brussels in December 1990 to bring the negotiations to a conclusion but it failed to do so. The principal reason for the breakdown was failure to agree on a regime for agriculture.

The main negotiating groups engaged afresh in further talks throughout 1991. At the end of 1991, GATT Director-General Arthur Dunkel tabled his own ‘Draft Final Act’. This 400-page document remains the basis of ongoing work towards a settlement of the Uruguay Round. In 1992, negotiations were focussed largely on agriculture. By November the United States and the European Community came to an agreement, the Blair House Accord. As at October 1993 it would appear that there is strong support for concluding the Uruguay Round by the end of 1993.

Other UN bodies. In addition to the specialised agencies, many United Nations organisations help to seek solutions to international problems through diverse economic, development, humanitarian and technical activities. 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 drug abuse, population planning and tourist promotion. In the follow-up to the 1992 Rio Earth Summit, the Commission for Sustainable Development was established to support and monitor international actions on a wide range of very important environmental issues. 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. Contributions are usually voluntary, and includes New Zealand's contributions for 1992–1993.

World Bank

The World Bank is a multilateral lending agency consisting of four closely associated institutions—the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA). The common objective of these institutions is to help raise living standards in developing countries by channelling financial resources from developed countries to them.

The IBRD currently lends about US$15 billion a year at market rates to developing countries with relatively high per capita income. The IDA provides interest-free loans worth about US$5 billion a year to the poorest of developing countries. The IFC promotes growth in the private sector of developing countries by lending or investing in business enterprises without government guarantees. MIGA has been recently created to insure investments in developing countries against political risks such as expropriation, war, civil disturbance and breach of contract.

New Zealand joined the World Bank in 1961 when higher income countries with active development programmes were eligible for IBRD loans. Between 1963 and 1971 New Zealand borrowed US$102 million to finance projects such as the Cook Strait transmission cable, the Marsden ‘A’ power station and the purchase of the ferry Aranui.

New Zealand has subscribed to a total of 6,601 shares in the IBRD, which represents 0.4 percent of the total voting share. The shares have a total par value of US$796 million, although over 90 percent of this amount has not been called up but, together with the uncalled subscription of other member countries, acts as a guarantee for the bank's borrowing in the financial markets. New Zealand owns 2,025 fully paid shares in the IFC which have a total par value of US$2,025 million. New Zealand also makes contributions to the periodic replenishments of IDA, the bank's facility for lending to its poorest developing member countries. The Government decided in 1993 that New Zealand should contribute $39.58 million to the latest replenishment. That amounted to a 0.119 percent share of the total replenishment. It will be paid over an eight year period from 1993.

The Asian Development Bank

The Asian Development Bank (ADB) is a development finance institution. It is owned by 37 countries from the Asia-Pacific region and 16 countries from Europe and North America. The ADB's principal function is to promote and finance the economic and social advancement of its 33 Asia-Pacific developing country members.

New Zealand currently holds 27,170 shares in the ADB, about 2.6 percent of the bank's voting share. The shares have a total par value of US$381.35 million. The country also makes contributions to the periodic replenishment of the ADB's Asian Development Fund, the bank's facility for lending to its poorest developing member countries. New Zealand has contributed over $51 million to the ADB since 1974.

Donated clothing for India's earthquake survivors, Wellington.

Commonwealth

The 50 members of the Commonwealth include countries in the six continents and the five oceans of the world. Two of the smallest member countries 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.

A permanent Commonwealth Secretariat is the main agency for multilateral communication between governments. The secretariat promotes consultation, disseminates information on matters of common concern, organises meetings and conferences, and co-ordinates a wide range of other activities.

Heads of government meet every second year. The 1993 meeting of Heads of Government took place in October 1993 in Nicosia in Cyprus. Commonwealth finance ministers meet annually, and ministers of agriculture, labour, health, education, women's affairs and other portfolios also meet at varying intervals.

The Commonwealth's principal official development assistance programmes are financed by the Commonwealth Fund for Technical Co-operation, to which New Zealand contributed $1.2 million in 1993. New Zealand also takes part in the Commonwealth Scholarship and Fellowship Plan, contributing about $750,000 in 1993. Contributions are made to a range of other intergovernmental Commonwealth co-operative programmes, including, in 1993, $50,000 to the Commonwealth fund for Mozambique and $50,000 for Commonwealth co-operation on distance education, and to agencies, including the Commonwealth Youth Programme, the Commonwealth Science Council, Commonwealth Telecommunications Organisation and the Commonwealth Agricultural Bureau. In the non-governmental area, New Zealand's main contribution is to the Commonwealth Foundation, established to promote close links in the professions throughout the Commonwealth.

Organisation for Economic Co-operation and Development

The Paris-based OECD aims to foster intergovernmental co-operation amongst its 24 members on matters relating to economic and social policy.

Within the OECD, New Zealand's priorities have been economic, agricultural, and trade issues with environmental issues having been added recently. Other areas where New Zealand participates in OECD work include education, science, health, labour, financial and investment affairs, social policy and the organisation's increasingly important work with non-member countries particularly those from the dynamic Asian and Latin American economies, and central and eastern Europe and the newly independent states of the former Soviet Union. The OECD exchanges, analyses and disseminates a wide variety of information, including the OECD forecasts (Economic Outlook) and reports on individual member country economies. The New Zealand economy is periodically subjected to a thorough review within the OECD system. Its development co-operation policy is reviewed regularly by the OECD's Development Assistance Committee.

An example of the benefits of OECD membership is the continuing conceptual work being done on the multilateral trading system in parallel to the current Uruguay Round under GATT. This has included work on protectionism in agricultural trade (initiated by New Zealand), subsidies and trade in services. A new focus of attention is work on the ‘New Generation’ issues of trade and the environment, trade and competition, trade and foreign direct investment and trade and technological developments.

New Zealand is also a member of the International Energy Agency (IEA), an autonomous body of 23 member countries within the OECD framework. The IEA includes energy-related environmental issues in its overall programme of energy co-ordination, the aim of which is to promote co-operation between energy producing and consuming countries.

International Whaling Commission

New Zealand plays a leading role among the conservationist members of the International Whaling Commission. In recent years we have sought to persuade the IWC to maintain the moratorium on commercial whaling which was imposed in 1985–1986. For the moment the moratorium remains in force, but whaling countries are seeking to have it lifted. The most recent Annual Meeting of the IWC was held in Kyoto, Japan in May 1993.

3.3 New Zealand territories

Tokelau

Tokelau consists off three small atolls in the South Pacific—Atafu, Nukunonu and Fakaofo—with a combined land area of approximately 12 square kilometres and a population of nearly 1,600. The central atoll, Nukunonu, is 92 kilometres from Atafu and 64 kilometres from Fakaofo. Western Samoa, the nearest sizeable neighbour, is 480 kilometres to the south.

Tokelau is, according to the Tokelau Act 1948, ‘part of New Zealand’. (As such it can not be correctly described as a territory of New Zealand, even though it has a largely separate legal, judicial and political system and remains on the list of territories to which the General Assembly's Declaration on Colonialism continues to apply.) The same Act gives the Governor-General of New Zealand the power, by Order in Council, to ‘make all such regulations as [she] thinks necessary for the peace, order and good government of Tokelau.’ One such set of regulations is the Tokelau Administration Regulations 1980, which establish the administrative authority for Tokelau. This gives the New Zealand Minister of Foreign Affairs the power to ‘appoint such person as he thinks fit to be the Administrator of Tokelau’ and charge the person so appointed with ‘the administration of the executive Government of Tokelau’. The current administrator is Mr Lindsay Watt, who took up his duties on 1 March 1993.

In practice, however, although he retains legal authority and responsibility for the administration of Tokelau, the administrator also delegates all of his powers to Tokelauans and Tokelau institutions. The foremost political institution in Tokelau is the General Fono, which brings together at least twice a year representatives of the three atolls to decide policy on Tokelau-wide matters and to endorse the annual budget. At its August 1992 session it asked the Government of New Zealand to formalise this informal delegation. Legislative provisions to enable this delegation are almost completed, but New Zealand has indicated its full support to the request, which will give Tokelau, for the first time, formal control over its day-to-day administration.

The three atolls enjoy a large measure of administrative and political autonomy. Their principal organ of government is the Taupulega or village council.

This has the power in terms of the Village Incorporation Regulations 1987 to manage the village and to exercise all the powers of the village. Two positions, those of the Faipule and the Pulenuku, are elected by universal adult suffrage at three yearly intervals. In the January 1993 elections two new Faipule were elected with one incumbent returned to office. The Faipule represent the villages in their dealings with the administrator and the public service, chair meetings of the Taupulega, and represent Tokelau in international meetings.

The three faipule form a council to act on behalf of the General Fono in discharging administrative and policy-making responsibilities when it is not in session. The Council of Faipule chooses a chairperson for a rotational term of one year, who assumes the title of Ulu-O-Tokelau (literally ‘Head of Tokelau’) and chairs sessions of the General Fono. Faipule Salesio Lui of Nukunonu Atoll is the Ulu-O-Tokelau for 1993. These changes have yet to be fully implemented, and the Council of Faipule is slowly developing in confidence.

The Pulenuku is the principal administrative officer of the village and discharges such responsibilities as the scheduling of work, the distribution of water supplies and the inspection of plantations.

In recognition to the changes to the political institutions of Tokelau, and the increased responsibilities being placed on them, the General Fono called for a review of the Tokelau Public Service to identify changes necessary to enable the service to properly support the new political institutions. This will fulfil the wishes of the General Fono to have the head office of the Tokelau Public Service located on Tokelau soil. (The Office for Tokelau Affairs is presently located in Apia, Western Samoa.) This review has been completed. Its conclusions have been discussed and agreed by the General Fono, and are currently being implemented.

Tokelau's budget for 1992/93 amounted to $ NZ5,332,880 of which $ NZ4,300,000 was sourced from New Zealand, and $ NZ1,032,880 from locally generated revenue. Local revenue came from activities such as shipping and freight charges, sales of postage stamps, handicrafts and coins, customs duties, radio and telegram excises, besides licensing fees deriving from the treaty between the Pacific Islands States and the United States on tuna fishing.

Ross Dependency

The Ross Dependency consists of the land, permanent ice-shelf and islands of Antarctica between 160° east and 150° 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. An Antarctic scientific research programme is maintained at the Ross Dependency, with New Zealand operating Scott Base on Ross Island as a permanent base. New Zealand is an original party to the Antarctic Treaty, which requires Antarctica to be used for peaceful purposes only and promotes international co-operation, freedom of scientific investigation, and exchange of information and scientific personnel. The 40 parties to the treaty meet regularly to consider questions within its framework.

3.4 Defence

The Governor-General as Commander-in-Chief is empowered to raise and maintain the New Zealand Naval Forces, the New Zealand Army and the Royal New Zealand Air Force. These forces, together with civilian employees, constitute the New Zealand Defence Force.

The Minister of Defence's power of control of the New Zealand Defence Force is exercised through the Chief of Defence Force. The Chief of Defence Force is the principal military adviser to the minister and responsible for the carrying out of the functions and duties of the Defence Force; the general conduct of the Defence Force; the management of the activities and resources of the Defence Force; and is chairman of the Chiefs of Staff Committee.

The Secretary of Defence, chief executive of the Ministry of Defence, is the principal civilian adviser to the minister. The secretary is responsible for formulating advice, in consultation with the Chief of Defence Force, on defence policy; the procurement, replacement or repair of defence equipment which has major significance to military capability; and assessment and audit of the Defence Force.

1991 Defence white paper

The Government's white paper, The Defence of New Zealand 1991, provided the foundation for the longer term shaping of New Zealand's defence structure to support the country's security interests.

In updating New Zealand's defence policy the white paper adopted a new approach. It did not try and estimate the likelihood of future threats in the Asia/Pacific region. Instead it looked at the permanent features of New Zealand's geography and situation, and factors such as demography and economic base that change only slowly and which shape New Zealand's forces and the tasks they have to carry out.

The white paper acknowledged that the defence of New Zealand's territory is a low priority—there is no direct threat—and stressed the importance of contributing to the defence of New Zealand's wider interests.

Based upon this assessment of New Zealand's strategic situation and interests, the white paper defines New Zealand's defence policy goals in the following terms:

  • To maintain the sovereignty of New Zealand.

  • To preserve the security of New Zealand, and its essential interests.

  • To maintain the sovereignty and security of the Cook Islands, Niue and Tokelau.

  • To contribute to the security of the South Pacific states with which New Zealand shares historical or other particular interests and to contribute generally to the security and stability of the South Pacific region.

  • To develop further the existing defence co-operation with Australia, including planning, operations, logistics and the industrial base.

  • To maintain and develop defence co-operation with ASEAN countries, and to pre-serve the partnership obligations of the Five Power Defence Arrangements.

  • To work to re-establish an effective defence relationship with New Zealand's other traditional partners, especially the United States and the United Kingdom.

  • To support the United Nations by contributing forces for peacekeeping or peacemaking operations.

  • To contribute forces to other collective endeavours where New Zealand's national interests are involved.

  • To ensure that the general purpose forces implied by these goals are capable of supporting non-military interests.

The white paper concluded that New Zealand's interests were best met by a strategy of 'self reliance in partnership’. This strategy links the need for a self-reliant capability to handle immediate national tasks—the protection of New Zealand territory and sovereignty—with broader interests shared in partnership with Australia, the South Pacific and the countries beyond.

The white paper also defined the capabilities and funding methods needed to support New Zealand's national goals as economically as possible. It measured the existing Defence Force against the yardstick of the credible minimum force. Minimum because the force must be fiscally sustainable given New Zealand's current economic circumstances, credible because, even at a minimum level, it must meet the essential aims defined by successive governments, and reassure New Zealand's neighbours and allies that the Government has the resolve and the capability to do so.

The white paper signalled the start of the process of reviewing defence, providing the broad framework and guidance for subsequent detailed planning. More detailed reviews have been completed of defence funding, air and sea transport, maritime surveillance and submarine warfare, air combat and land forces reserves.

School students commemorating ANZAC Day at the Bridge of Remembrance, Christchurch.

International defence relationships

ANZUS. This security treaty between Australia, New Zealand and the United States came into force in 1952. Each party recognised that an armed attack in the Pacific on any of the parties would be dangerous to its own peace and safety and declared that it would act to meet the common danger in accordance with its constitutional processes. However, because of the dispute between New Zealand and the United States over the introduction of nuclear weapons into New Zealand ports and over visits of nuclear-propelled vessels, the ANZUS Council has not met since 1984 and the United States regards its security commitments to New Zealand as being in abeyance.

Australia. Australia is New Zealand's main defence partner and the defence relationship underpins New Zealand's defence and security system. Considerable progress has been made in recent years in strengthening the defence relationship through a process called closer defence relations. Among the objectives are the identification of methods for a more economical and effective organisation of training, base, and infrastructure support, and an ongoing examination of options for developing the structure of the two forces with a view to strengthening their ability to operate together.

The Five Power Defence Arrangements. The basis of the Five Power Defence Arrangements (FPDA) is not a formal treaty but a statement in the communiqué following the meeting of ministers from Britain, Malaysia, Singapore, Australia and New Zealand in 1971. The focus of the arrangements is the action and support available to Malaysia and Singapore if either of these countries was under external threat.

Mutual Assistance Programme. ASEAN and South Pacific countries participate in the Defence Force's Mutual Assistance Programme. The programme is a practical demonstration of New Zealand's commitment to regional security. Through training and advisory assistance, the programme contributes to the effectiveness of the armed forces in New Zealand's South Pacific neighbourhood and in South-East Asia. It also assists in development projects by using the engineering and trade skills of the armed forces. The most common forms of assistance are the provision of formal courses or on-the-job training in New Zealand, the deployment overseas of training and technical teams, the attachment of military instructors to other armed forces for periods of up to two years in Fiji. Tonga, Papua New Guinea, Vanuatu and Malaysia, and civic action programmes in the engineering and medical fields.

Co-operation with other countries. To facilitate exchanges on military matters, defence representatives are posted to New Zealand diplomatic missions in London, Canberra, Washington. New York (United Nations), Ottawa, Jakarta, Singapore, Kuala Lumpur, Port Moresby and Suva. In addition, some members of these staffs are also accredited to other countries, such as Thailand, Brunei, France, Germany, Solomon Islands and Vanuatu. A Wellington-based defence adviser is accredited to Cook Islands, Niue, Tonga and Western Samoa. The United Kingdom, Australia and Malaysia have service representatives attached to their respective High Commissions in Wellington and there are service attachés on the staffs of the French, Indonesian and United States embassies in Wellington. Several other countries have service attachés accredited to, but not resident in, New Zealand.

Armed forces overseas

Singapore. A small administrative element, known as the Defence Support Unit, is based in Singapore to support bilateral exercises under the Five Power Defence Arrangements (FPDA) and the Mutual Assistance Programme, continued single-service deployments and training attachments. Two RNZAF officers remain attached to the headquarters staff of the FPDA Integrated Air Defence System Headquarters at Butterworth, Malaysia.

United Nations Truce Supervisory Organisation (UNTSO). New Zealand has six observers in Israel and Syria with UNTSO, and fills the Chief of Staff position.

Sinai Multinational Force and Observers (MFO). This force was established in April 1982 to verify compliance with the terms of the peace treaty concluded between Egypt and Israel on 26 March 1979. The operational headquarters of MFO is in El Gorah, Sinai. Ten countries contribute to MFO, including a 25-strong New Zealand contingent, which includes a training and advisory team, a heavy transport section and engineers.

United Nations Angola Verification Mission (UNAVEM). New Zealand contributed 12 officers to UNAVEM, which was established in 1991 to verify the cease-fire between the Angolan Government and the National Union for the Total Independence of Angola (UNITA). The New Zealand officers were based in the capital, Luanda, and deployed from there to monitoring sites throughout Angola for specific periods. An upsurge in fighting following national elections resulted in the withdrawal of the force, including the New Zealand contingent. A further New Zealand contribution to UNAVEM of 43 personnel was made in November 1993.

NEW ZEALAND DEFENCE FORCE PEACEKEEPING COMMITMENTS

United Nations Protection Force Yugoslavia (UNPROFOR). New Zealand has contributed overservers to UNPROFOR since 1992. Nine officers are based in various locations in Bosnia, Croatia and Macedonia. Three of the New Zealand observers monitor the UN-mandated no-fly zone over Bosnia.

United Nations Special Commission on Iraqi Weapons of Mass Destruction (UNSCOM). Following the 1991 Gulf War, the United Nations established the Special Commission to destroy, remove or render harmless weapons of mass destruction and ballistic missile capabilities. UNSCOM is based in Bahrain, from where inspection teams (eg nuclear, biological, chemical or ballistic missile) visit Iraq to inspect specific installations. New Zealand contributes a five-person Army Medical Team who provide pre-deployment training in nuclear, biological and chemical warfare protection and on-site medical coverage to the various inspection teams. The Defence Force also contributes a clerk to the UNSCOM Chemical Destruction Group (CDG) and two communications personnel.

United Nations Transitional Authority in Cambodia (UNTAC). The New Zealand contribution to UNTAC, which was charged with assuming responsibilities of government, administrative duties, demobilising the armies and helping to organise elections, was 97 personnel, who made up a mine-awareness team, a communications contingent and a naval detachment.

United Nations Operation in Somalia (UNOSOM). New Zealand provided an air component of three Andover aircraft and 62 personnel to the United States-led Unified Task Force (UNITAF) operation (also known as Operation Restore Hope) in Somalia. The aim of this international force was to take effective control of the capital, Mogadishu, and key provincial centres to allow the unhampered distribution of humanitarian assistance to the Somali people. In May 1993, UNITAF handed over its responsibilities to a reconstituted UN operation. The Defence Force currently contributes a 43-strong supply detachment and six headquarters staff.

RNZAF Skyhawk Detachment, Nowra. A detachment of six RNZAF Skyhawk aircraft and 56 flying and ground crew is based at Nowra, Australia in support of a combined maritime training programme. The aircraft undertake air-defence support flying for the Royal Australian Navy, providing that service with anti-air and anti-missile training.

Exercises. RNZN vessels attend the annual Five Power Defence Arrangements (FPDA) maritime exercise STARFISH in Malaysian waters. Exercise TASMANEX is a major maritime exercise involving Australian and New Zealand vessels, held annually. The RNZAF deploys No 75 Squadron (Skyhawk) to South-East Asia each year to participate in FPDA maritime and air-defence exercises. The RNZAF also competes in FINCASTLE, an antisubmarine warfare competition between Australia, Canada, New Zealand and the United Kingdom. Significant army exercises include TAIAHA TOMBAK, a battalion deployment to Malaysia; TAKROUNA, a battalion-level field exercise in conjunction with the Officer Cadet School; LONGLOOK, a reciprocal exchange with British forces; SILVER COBRA, a war-gaming exercise in Singapore; SUMAN WARRIOR, an FPDA command-post exercise; TROPIC DUSK, a company deployment in the South Pacific; and TASMAN EXCHANGE, a reciprocal deployment of a company to Australia.

Sentry duty at RNZAF camp, Mogadishu, Somalia.

Community assistance

Hydrographic survey. The Navy is the sole authority for the production of nautical charts in New Zealand and operates a hydrographic survey ship, HMNZS Monowai and two inshore survey craft, HMNZ ships Takapu and Tarapunga. The Hydrographic Office also provides tidal analysis data and predictions. During 1992-93, surveys of the Bay of Islands, the Tamaki River, Wanganui, Greymouth, and shoals in the approaches to Auckland were completed.

Fisheries protection. Patrols of the New Zealand 200-mile Exclusive Economic Zone (EEZ) are conducted by naval ships and Air Force Orion aircraft. Surveillance patrols include fishery protection tasks, after which all information is passed to the Ministry of Agriculture and Fisheries. The Air Force conducted 24 patrols throughout the New Zealand area and its approaches in 1992-93.

Search and rescue. A search and rescue capability is maintained by all three forces, with naval and air operational units maintained on a 24-hour stand-by. The Navy and Air Force have assisted in extensive sea searches, including some that have ranged as far north as Tokelau and Vanuatu, and the Army has supported the police in land searches. The Air Force also flies emergency medical evacuation throughout New Zealand and the South Pacific and responded to 12 incidents in 1992.

D-Day veterans meeting, Christchurch.

Antarctic support. Defence Force support for the New Zealand Antarctic Programme in 1992-93 included 12 return flights to McMurdo Base by Hercules aircraft. One Iroquois helicopter was stationed at McMurdo from November to February. Other support included air-cargo handling at Christchurch and McMurdo, pre-departure training camps for Antarctic Programme personnel, and fire-fighting and base-support personnel in Antarctica.

New Zealand Cadet Forces. The Cadet Forces comprise the Sea Cadets, Air Training Corps and the New Zealand Cadet Corps. These are community-based youth groups, and are supported by the Sea Cadet Association, the Air Training Corps Association, the Returned Servicemen's Association, the New Zealand Army Association and schools.

There are 98 cadet units (18 Sea Cadet, 30 Cadet Corps and 50 Air Training Corps). The total strength is 379 officers and 3,760 cadets.

Other assistance. Other assistance provided by the Defence Force includes transportation of Department of Conservation personnel to New Zealand's outlying islands, ceremonial support for State occasions, helicopter and logistic support to the police, assistance with rural fire-fighting, explosive ordnance disposal, and support during national civil defence emergencies.

Disaster relief. The Defence Force provides assistance in the wake of natural disasters in the South Pacific. Assistance can include post-disaster reconnaissance of damage levels, transportation of relief supplies, food, medical supplies, and engineering and communications services.

Defence expenditure

Defence funding is disaggregated to two organisations: the New Zealand Defence Force under the Chief of Defence Force and the Ministry of Defence under the Secretary of Defence. Total expenditure by the two organisations is consolidated in the table below.

Table 3.2. DEFENCE EXPENDITURE

 Year ended 30 June
Item19931994

Source: New Zealand Defence Force, Ministry of Defence.

 $(000)
Operating expenses829,556x809,756
Purchase of fixed assets214,505x303,145
GST on outputs to Crown174,784x166,129
        Sub-total1,218,845x1,279,030
Less-  
Sale of fixed assets14,329x50
Supply of outputs to other parties25,707x17,211
        Sub-total40,036x17,261
Total net expenditure1,178,809x1,261,769

DEFENCE FORCE LOCATIONS

Table 3.3. NUMBER OF DEFENCE PERSONNEL

As at 30 JuneNavyArmyAir ForceTotalCivilians
19892,5595,8624,17012,5913,808
19902,5315,0594,15511,7452,891
19912,6055,0873,82311,5153,119
19922,4754,6883,61710,7802,546
19932,3404,5423,44010,3222,532

Source: New Zealand Defence Force.

Table 3.4. INTERNATIONAL COMPARISON OF DEFENCE EXPENDITURE

 Percentage of GDP
 19901991199219931994*

* Estimated.

Year ending 30 June.

Year ending 31 March.

§ Year ending 30 September.

Source: New Zealand Defence Force.

Australia†2.3x2.42.42.42.3
Canada‡1.8x1.8x1.71.71.7
New Zealand†2.0x1.9x1.71.51.6
Sweden†2.52.72.52.6P2.6
United Kingdom‡4.0x3.9x4.13.9P3.6
United States of America§5.5x4.9x5.14.74.3

Royal New Zealand Navy

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

Table 3.5. STATE OF THE NAVY

Source: New Zealand Defence Force.

Frigates (Leander class)Wellington
 
 Southland 
 WaikatoNaval Combat Force
 Canterbury 
Fleet tankerEndeavour 
Survey shipMonowai 
Inshore survey craftTakapuHydrographic Survey Force
 Tarapunga 
Research shipTui 
Inshore patrol craftMoa 
 KiwiFirst New Zealand Patrol
 WakakuraCraft Squadron
 Hinau 
Diving support vesselManawanui 
Training tenderKahu 
Dockyard service craftAratiki 

Shore establishments. The naval base at Devonport, Auckland, consists of the office of the Maritime Commander (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. The dockyard is capable of refitting all units of the Navy. HMNZS Tamaki is the naval training establishment at Narrow Neck, Devonport, although a number of training facilities are new located in the Shoal Bay area of the Devonport naval base. The RNZN Armament Depot is situated at Kauri Point and the RNZN Hydrographic Office is at Takapuna. HMNZS Wakefield is the administrative unit for RNZN personnel in the Wellington area.

Table 3.6. STRENGTH OF THE NAVY

CategoryAt 31 March
1990199119921993

Source: New Zealand Defence Force.

Regular Forces-    
Officers384393429419
Ratings2,0832,1732,1171,911
        Total2 4672 5652 5462 330
Royal New Zealand Naval Volunteer Reserve (all ranks)497498512484

New Zealand Army

The Army comprises regular, territorial, and reserve elements and is structured to provide the following operational options:

  1. A range of deployable Regular Force units, known as Army ready response units, held at a high level of readiness.

  2. A deployable Regular Force infantry battalion group.

  3. A deployable integrated Regular and Territorial Force brigade group.

  4. Force Troops, such as the Special Air Service, Force Intelligence Group, signals, movement and Military Police units, to operate with or independently of the above groupings.

Command and administration. The Chief of General Staff commands the Army, supported by the Army General Staff. The Army has the following structure:

  1. Headquarters Land Force Command is responsible for the operational components of the Army, namely, 2nd Land Force Group, 3rd Land Force Group and Force Troops.

  2. Headquarters Support Command is responsible for the provision of individual training, equipment management, static support and facilities, and base support, and commands the Army Training Group and 5th Base Logistics Group.

State of the Army. Major army units comprise two Regular Force infantry battalions, six Territorial Force infantry battalions, an armoured regiment, a field artillery regiment, an engineer regiment, four signals squadrons, a Special Air Service group and five logistics regiments. Major equipment includes 26 combat reconnaissance vehicles (tracked), 78 armoured personnel-carriers, 43 105mm guns/howitzers and 50 81mm mortars.

Table 3.7. STRENGTH OF THE ARMY

CategoryAt 31 March
1990199119921993

Source: New Zealand Defence Force.

Regular Forces    
Officers752662677687
Other ranks4,4284,2264,1353,875
        Total5 1804 8884 8124 562
Territorial Force (all ranks)5,6275,1384,5784,549

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 supported by the Air Staff.

Organisation. The RNZAF in New Zealand is organised into two functional groups: Operations Group, with its headquarters at RNZAF Base Auckland, is responsible for all operational functions and operational basic flying training: Support Group, with its headquarters at RNZAF Base Wigram, is responsible for all recruitment, ground trades training and certain support functions such as supply and depot level maintenance. RNZAF Base Shelly Bay acts as the domestic unit for all RNZAF personnel assigned to Wellington for duty in Air Staff and Defence Force Headquarters. Operational flying units are based at RNZAF Base Auckland and RNZAF Base Ohakea with a detachment of Iroquois helicopters at RNZAF Base Wigram. RNZAF Base Ohakea also conducts primary flying training. RNZAF Museums are located at RNZAF Bases Wigram and Ohakea.

Airforce trainer craft flyover, June 1993, Wellington. Due to the closure of the RNZAF's base at Wigram, operations were transferred (and in many cases, flown) to Ohakea airbase.

Engineering. Aircraft technical services are co-ordinated by Air Staff with specific levels of aircraft maintenance assigned to the bases and squadrons. The overhaul, repair and some manufacturing of aeronautical equipment is carried out at RNZAF Base Woodbourne. A proportion of repair and overhaul work is contracted to the private sector in New Zealand and overseas.

Table 3.8. STATE OF THE AIR FORCE

Operational units’ roleAircraftLocation

Source: New Zealand Defence Force.

 6 Orions 
 2 Boeing 727s 
Maritime9 Andovers 
 5 HerculesRNZAF Base Auckland
Helicopters14 Iroquois 
 5 Wasps (operated by RNZN) 
 5 Sioux 
Attack/Close Air Support20 Skyhawks (includes 6 based at Nowra, NSW) 
Advanced flying training and attack transition training RNZAF Base Ohakea
 15 Aermacchi 
Flying training15 Air Trainers 

Table 3.9. STRENGTH OF THE AIR FORCE

CategoryAt 31 March
1990199119921993

Source: New Zealand Defence Force.

Regular forces    
Officers643654634605
Other ranks3,4223,4253,2232,947
        Total4 0654 0793 8573 552
Territorial Air Force227237219187

Security Intelligence Service

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 and to advise ministers on security matters. The Security Intelligence Service does not enforce security measures. Nor does it 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 government of New Zealand.

During the year ended 31 March 1993, four 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 term of each warrant was four months and 11 days. The method of interception used was listening devices.

Table 3.11. EXPENDITURE ON SECURITY INTELLIGENCE SERVICE

Year ended 31 MarchGross expenditureIncrease over previous year

**Year ended 30 June.

Source: Security Intelligence Service.

 $(000)percent
19899,7754
199010,1974
199110,2661
1992*10,4702
1993*10,304-1.6

Contributors

  • 3.1-3.3 Ministry of Foreign Affairs and Trade.

  • 3.4 New Zealand Defence Force; New Zealand Security Intelligence Service.

Special articles

Ministry of Foreign Affairs and Trade.

Further information

An Introduction to the Structures and Functions of the Ministry of External Relations and Trade. Ministry of Foreign Affairs and Trade.

Corporate Plan 1993-94 for the Ministry of Defence and the New Zealand Defence Force. Ministry of Defence/New Zealand Defence Force, 1993.

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

Diplomatic List. Diplomatic and Consular Representatives in New Zealand. Ministry of Foreign Affairs and Trade (twice-yearly).

Information Bulletins (including an annual bulletin on disarmament and arms control). Ministry of Foreign Affairs and Trade.

New Zealand Defence Quarterly. Ministry of Defence.

Overseas Posts, a List of New Zealand Representatives Abroad. Ministry of Foreign Affairs and Trade (twice-yearly).

Report of the Ministry of Defence (Parl Paper G4).

Report of the Ministry of External Relations and Trade (Parl Paper Al).

Report of the New Zealand Defence Force (Parl. Paper G55).

New Zealand External Relations and Trade. Ministry of Foreign Affairs and Trade (monthly except January).

Chapter 4. Population

Skipping for Heart Week.

The demography of New Zealand has changed dramatically in the past hundred years. The nation has passed through a ‘demographic transition’ similar to those experienced by most western countries, and despite continued reliance on agricultural exports, has become highly urbanised.

Family formation patterns have changed radically, the divorce rate has soared, and de facto unions have become common. The average family size has shrunk to less than half of what it was and is now at a historic low. Substantial reductions in mortality mean that New Zealanders now expect to live, on average, over 20 years longer than they did a century ago.

The population age structure has also undergone profound changes, largely as a result of peaks and troughs in the birth rate. The number of elderly New Zealanders has increased over 20-fold since 1886, and the population is ageing—a process that is expected to hasten when the ‘baby boom’ generation reaches retirement age after the turn of the century. Low birth rates, recent emigration levels and the ‘greying’ of population have raised the prospect of a future slow growth or no growth environment.

The following discussions on population issues cover only the years since World War II, and more particularly the past 30 years. The aim is to highlight modern trends in New Zealand's demography and present those population changes from over the last half century which have affected, and continue to affect, the general development of the country.

4.1 Population growth

The dramatic changes in the first 150 years of European settlement in New Zealand were frequently consistent with, and indicative of, international social and economic trends. In a nation of New Zealand's size and youth however, the results of these trends often had a profound effect and impact. The almost cyclic nature of depression and recovery, along with the arrival of gold rushes, world wars and assisted immigration schemes saw New Zealand's population growth rates fluctuate regularly.

The population of New Zealand reached 500,000 in 1880 boosted by the introduction of government-assisted immigration. The first million was surpassed in 1908 following the economic recovery from the Depression of the 1880s and 1890s. In the aftermath of World War II the growth rate climbed dramatically (in comparison to a stagnation in the early 1930s) as the baby boom and increased immigration made their impact. The second million of population was reached in 1952, 44 years after the first million with the third added, only 21 years later, in 1973. Almost one-fifth of this population growth came from net immigration. Since 1973 New Zealand's population has increased by just under one-half of a million to reach 3.49 million at December 1992.

Over the past 20 years there have been significant fluctuations in the population growth rate caused by wide swings in the level and direction of the external migration balance. In absolute terms, New Zealand's population grew by a record 266,752 during 1971-76, only 46,354 during 1976-81, 131,347 during 1981-86 and 127,866 over the latest intercensal period, 1986-91.

The decline in population growth during the 1970s and 1980s was again a noticeable international trend. A number of other developed countries, including Denmark, France, Sweden, Switzerland, the United Kingdom and the United States, have all experienced reduced growth rates during this period.

Table 4.1. TOTAL NEW ZEALAND POPULATION, 1858-1991 CENSUSES

Census*Total populationIntercensal increase
NumberPercentAverage annual (percent)

* Omits censuses of 1861, 1864, 1867 and 1871 as censuses of Maori population were not taken in these years.

1858, 24 December115,462.........
1874, 1 March344,984.........
1878, 3 March458,007113,02332.767.33
1881, 3 April534,03076,02316.605.10
1886, 28 March620,45186,42116.183.07
1891, 5 April668,65148,2007.771.49
1896, 12 April743,21474,56311.152.13
1901, 31 March815,86272,6489.771.89
1906, 29 April936,309120,44714.762.75
1911, 2 April1,058,312122,00313.032.52
1916, 15 October1,149,22590,9138.591.50
1921, 17 April1,271,668122,44310.652.27
1926, 20 April1,408,139136,47110.732.06
1936, 24 March1,573,812165,67311.771.13
1945, 25 September1,702,330128,5188.170.83
1951, 17 April1,939,472237,14213.932.37
1956, 17 April2,174,062234,59012.102.31
1961, 18 April2,414,984240,92211.082.12
1966, 22 March2,676,919261,93510.852.11
1971, 23 March2,862,631185,7126.941.35
1976, 23 March3,129,383266,7529.321.80
1981, 24 March3,175,73746,3541.480.29
1986, 4 March3,307,084131,3474.140.82
1991, 5 March3,434,950127,8663.870.76

Table 4.2. POPULATION, 1939-1992

YearTotal population at 31 DecemberMean population for year ended 31 December
19391,641,6001,628,500
19401,633,6001,637,300
19411,631,2001,630,900
19421,636,4001,639,500
19431,642,0001,635,600
19441,676,3001,655,800
19451,727,8001,694,700
19461,781,2001,759,600
19471,817,5001,798,300
19481,853,9001,834,700
19491,892,1001,871,700
19501,927,7001,909,100
19511,970,5001,947,600
19522,024,6001,996,200
19532,074,7002,048,800
19542,118,4002,094,900
19552,164,8002,139,000
19562,209,2002,182,800
19572,262,8002,232,500
19582,316,0002,285,800
19592,359,7002,334,600
19602,403,6002,377,000
19612,461,3002,426,700
19622,515,8002,484,900
19632,566,9002,536,900
19642,617,0002,589,100
19652,663,8002,635,300
19662,711,3002,682,600
19672,745,0002,727,700
19682,773,0002,753,500
19692,804,0002,780,100
19702,852,1002,819,600
19712,898,5002,864,200
19722,959,7002,915,600
19733,024,9002,977,100
19743,091,9003,041,800
19753,143,7003,100,100
19763,163,4003,131,800
19773,166,4003,142,600
19783,165,2003,143,500
19793,163,9003,137,800
19803,176,4003,144,000
19813,194,5003,156,700
19823,226,8003,180,800
19833,264,8003,221,700
19843,293,0003,252,800
19853,303,1003,271,500
19863,313,5003,277,000
19873,342,1003,303,600
19883,345,2003,317,000
19893,369,8003,330,200
19903,410,4003,362,500
19913,449,7003,406,200
19923,485,4003,442,500

POPULATION GROWTH
Percentage annual increase

4.2 Distribution of population

Three major trends stand out prominently in the geographic distribution and redistribution of New Zealand's population over the last 150 years. The first is an increasing proportion of people living in the north of the country. The second is a tendency for people to move from the south to the north. The third is for an increasing degree of urbanisation and in particular, a concentration of people in the main urban centres.

North and South Islands

Following the end of the gold boom in the South Island in the 1870s, the proportion of the total population living in the South Island began to steadily decrease. From the 1896 Census onward the population of the North Island has exceeded that of the South.

Since that time the North Island's population has continued to expand at a greater rate, and its share of the total population has continued to grow. In 1951, 68 percent of the population resided in the North Island, by 1971 this figure had risen to almost 72 percent and in 1991 was at 74 percent.

Auckland is a key region in internal migration patterns, accruing population at the expense of most other regions. The second major region for receiving migrants was Waikato.

In most cases population flows favoured regions to the north. Thus, Southland lost population to Otago, Otago to Canterbury, Canterbury lost to Wellington and Wellington lost to Auckland.

The significance of the ‘drift north’, however, must be put in perspective. Internal migration is not a one-way process. Typically, for each migration stream moving in one direction there is an opposing counter stream. Further, a sizeable proportion of internal migration occurs between adjacent regions. The major flows over long distances, however, are mainly between major urban areas.

The balance of urban and rural components of population is another major feature of New Zealand's changing demography.

Table 4.3. POPULATION OF NORTH AND SOUTH ISLANDS, 1936-1991 CENSUSES

CensusNorth IslandSouth IslandTotal population
19361,018,038555,7741,573,812
19451,146,315556,0151,702,330
19511,313,869625,6031,939,472
19561,497,364676,6982,174,062
19611,684,785730,1992,414,984
19661,893,326783,5932,676,919
19712,051,363811,2682,862,631
19762,268,393860,9903,129,383
19812,322,989852,7483,175,737
19862,441,615865,4693,307,084
19912,553,413881,5373,434,950

Many influences have contributed to the persistence and amplification of the population differential between the two islands. The North Island has had a higher birth rate, a lower mortality rate and, as a result, a higher rate of natural increase. The bulk of overseas migrants settle in the North Island and people are also gained internally from the South Island.

Internal migration

The movement of people within and between regions is an important determinant of New Zealand's population distribution. Overall, New Zealanders are a mobile people and, while the majority of movement is within regions, there is a significant traffic of people between regions. These latter flows have the greater impact on regional populations. In addition to affecting the size of the population of different regions, inter-regional migration also influences age structures, fertility levels and population growth rates.

For the last hundred years the trend has been for a northward drift of people. During 1986-91, regions in the north of each island gained more people from internal migration than did other regions, with the highest growth areas over this period being Auckland and Bay of Plenty in the North Island and Nelson-Marlborough and Canterbury in the South Island.

Table 4.4. MIGRATION BETWEEN REGIONAL COUNCILS, 1986-1991

Regional councilsUsually resident population aged 5 years and over at 1991 censusIn-migration (2)Out-migration (3)Gross migration (2)+(3)=(4)Net migration (2)-(3)=(5)Migration effectiveness ratio (5)/(4)x100
Northland114,88817,81717,46635,2833510.99
Auckland863,30466,41761,248127,6655,1694.05
Waikato301,14042,17440,54882,7221,6261.97
Bay of Plenty185,19031,97723,51155,4888,46615.26
Gisborne39,8254,4857,80912,294-3 324-27.04
Hawke's Bay126,13813,80316,98630,789-3 183-10.34
Taranaki97,5699,49812,54922,047-3 051-13.84
Manawatu-Wanganui204,82829,98230,91260,894-930-1.53
Wellington366,98136,26142,68478,945-6 423-8.14
Nelson-Marlborough99,38715,24912,27327,5222,97610.81
West Coast29,8954,3056,20110,506-1 896-18.05
Canterbury402,91536,36030,89767,2575,4638.12
Otago164,92519,41919,66539,084-246-0.63
Southland91,5127,22712,22519,452-4 998-25.69

URBAN DRIFT
Ratio of urban to rural population

Table 4.5. URBAN-RURAL POPULATION, 1936-1991 CENSUSES*

CensusTotal population†
UrbanRural
numberpercentnumberpercent

*Excludes shipping on boundaries at 5 March 1991.

Urban areas and towns with over 1,000 population vs. remaining population.

Based on boundaries at 5 March 1991.

Census    
19361,065,22867.9503,88532.1
19451,227,06974.2427,07625.8
19511,406,51672.7527,07827.3
19561,600,80873.8568,80626.2
19611,840,20276.4569,21723.6
19662,119,08579.3553,02320.7
19712,328,87681.5528,60918.5
19762,614,11983.6511,00416.4
1981‡2,693,24284.8479,02315.1
1986‡2,806,76084.9497,73015.1
1991‡2,916,38284.9515,22715.0

Improved communications and transportation have allowed the centralisation of previously dispersed services, and secondary and tertiary industries continued to expand. Over four-fifths of the population lived in urban areas by 1971, and by 1991 the urban proportion of the population had risen to 85 percent of the total.

The cities

At the time of the 1991 Census, while 85 percent of the population lived in urban areas, 68 percent lived in ‘main urban areas’ (places with 30,000 people or over).

A recent feature of urbanisation has been the growing concentration of people in Auckland. In 1991, 26 percent of New Zealand's population lived there, compared with only 15 percent 70 years earlier.

Today, while a large majority of the population live in urban areas, there has been a decline in the growth of many urban areas. Between 1986 and 1991, urban areas that continued to grow were generally situated in the north of each island—between Auckland and Rotorua in the North Island and between Nelson and Christchurch in the South Island. Urban areas in the south of each island experienced virtually no growth nor lost population.

Table 4.6. POPULATION OF 20 LARGEST URBAN AREAS AT SELECTED CENSUSES

Urban area193619611986*1991*

*Boundaries as at 5 March 1991.

Auckland226,366448,365821,647885,571
Wellington159,357249,532325,711325,682
Christchurch133,515220,510300,052307,179
Hamilton20,09650,505140,106148,625
Dunedin85,607105,003107,639109,503
Palmerston North24,37243,18567,40570,951
Tauranga5,80824,65963,25470,803
Hastings17,92032,49057,50957,748
Rotorua8,89925,06851,99153,702
Napier19,17032,71653,27652,468
Invercargill25,91241,08852,55851,984
New Plymouth18,59732,38747,38448,519
Nelson13,49325,32144,59347,391
Whangarei9,86821,79044,31844,183
Wanganui25,75035,69440,75841,213
Gisborne15,87825,06532,23831,484
Timaru18,77126,42428,67627,637
Kapiti5,36712,30523,20327,380
Blenheim5,03611,95622,68123,637
Masterton9,09615,12819,93020,007

Population of local government areas today

The following tables outline the population of New Zealand's territorial local authority areas and regional councils. All data conforms with the boundaries established after the 1989 reorganisation of local government. For population figures of cities, boroughs and counties in existence before 1 November 1989, refer to the 1988-89 Yearbook.

Table 4.7. POPULATION OF TERRITORIAL LOCAL AUTHORITIES

Territorial local authority*Census of population 1991Estimated at 31 March 1993Estimated population change 1991-93‡

* Boundaries as at April 1993.

Figures have been rounded.

A minus sign indicates a decrease in population.

§Includes persons on shipboard, and the populations of Campbell, Kermadec, Mayor and Motiti Islands (not within city, county or district boundaries).

Cities  numberpercent
North Shore152,134155,5003,4002.2
Waitakere136,716141,9005,2003.8
Auckland315,668321,1005,4001.7
Manukau226,147233,6007,5003.3
Hamilton101,448103,6002,2002.0
Napier51,64551,8002000.4
Palmerston North70,31873,5003,2004.6
Porirua46,60147,4008001.7
Upper Hutt37,09237,000-100-0.3
Lower Hutt94,54094,6001000.1
Wellington150,301150,8005000.3
Nelson37,94339,3001,4003.7
Christchurch292,858297,6004,7001.6
Dunedin116,577118,4001,8001.5
Invercargill56,14855,800-300-0.5
        Subtotal, cities1 886 1361 922 30036 2001.9
Districts    
Far North51,56852,9001,3002.5
Whangarei62,64463,6001,0001.6
Kaipara17,32517,4001000.6
Rodney55,78459,5003,7006.6
Papakura36,55337,7001,1003.0
Franklin42,19344,2002,0004.7
Thames-Coromandel25,03726,1001,1004.4
Hauraki16,92117,3004002.4
Waikato37,55638,1005001.3
Matamata-Piako29,40829,6002000.7
Waipa37,03137,8008002.2
Otorohanga9,2319,280500.5
South Waikato26,18625,500-700-2.7
Waitomo10,0749,900-150-1.5
Taupo30,72131,3006002.0
Western Bay of Plenty30,13731,60015005.0
Tauranga67,33370,2002,9004.3
Rotorua65,09665,7006000.9
Whakatane32,11232,5004001.2
Kawerau8,1358,090-50-0.6
Opotiki8,6768,9803003.5
Gisborne44,36144,300-100-0.2
Wairoa10,37110,300-50-0.5
Hastings64,69365,3006000.9
Central Hawke's Bay12,59012,500-100-0.8
New Plymouth67,95168,6006000.9
Stratford9,8469,780-70-0.7
South Taranaki29,51929,100-400-1.4
Ruapehu18,10417,950-150-0.8
Wanganui45,08245,6005001.1
Rangitikei16,67616,350-350-2.1
Manawatu27,18227,7005001.8
Tararua19,48219,450-50-0.3
Horowhenua29,47629,8003001.0
Kapiti Coast35,30937,3002,0005.7
Masterton22,94723,2003001.3
Carterton6,9137,1402303.3
South Wairarapa9,0379,2201802.0
Tasman36,41637,3009002.5
Marlborough36,76537,7009002.4
Kaikoura3,7113,780701.9
Buller10,94111,000500.5
Grey13,74213,600-150-1.1
Westland9,2509,040-210-2.3
Hurunui9,5699,6901201.3
Waimakariri27,86229,1001,2004.3
Banks Peninsula7,6397,8001602.1
Selwyn21,35922,0006002.8
Ashburton24,43524,5001000.4
Timaru43,20842,500-700-1.6
Mackenzie5,0574,250-810-16.0
Waimate7,7937,710-80-1.0
Waitaki22,99122,900-100-0.4
Central Otago15,69614,900-800-5.1
Queenstown-Lakes15,12315,2001000.7
Clutha18,30318,050-250-1.4
Southland33,68133,100-600-1.8
Gore13,59613,550-50-0.4
        Subtotal, districts1 546 3971 569 60023 2001.5
Chatham Islands County760770101.3
        Total, New Zealand§3 434 9503 494 30059 4001.7

GROWTH OF CITIES
Average annual intercensal growth rates for main urban areas

Table 4.8. POPULATION OF REGIONAL COUNCILS*

RegionCensus of population 1991Estimated at 31 March 1993Estimated population change 1991-93

* Boundaries as at 1 July 1992.

Figures have been rounded to the nearest hundred.

Includes the population of Kermadec Islands.

§ Includes the population of Chatham Islands County and Campbell Island.

North Island  number†percent
Northland131,620134,0002,4001.8
Auckland953,980982,00028,0002.9
Waikato338,959344,6005,6001.7
Bay of Plenty208,163213,8005,6002.7
Gisborne44,38744,400- -- -
Hawke's Bay139,479140,1006000.4
Taranaki107,222107,5003000.3
Manawatu-Wanganui226,616230,7004,1001.8
Wellington402,892407,0004,1001.0
Remainder North Island‡95100- -- -
        Subtotal, North Island2 553 4132 604 20050 8002.0
South Island    
Tasman36,41637,3009002.5
Nelson38,00339,4001,4003.7
Marlborough36,76537,7009002.4
West Coast33,96133,700-300-0.9
Canterbury446,114451,7005,6001.3
Otago186,067186,9008000.4
Southland103,442102,600-800-0.8
Remainder South Island§769800- -- -
        Subtotal, South Island881 537890 1008 6001.0
        Total, New Zealand3 434 9503 494 30059 4001.7

4.3 Components of population change

Population change has two main components, natural increase (the excess of births over deaths) and net migration. To indicate the relative importance of these components, in the period 1858-1989 as a whole, net migration contributed 23 percent of the total population growth in New Zealand, and natural increase the remaining 77 percent.

The relative contribution of the two components has varied from one five-year period to another, but net immigration's share has never exceeded two-fifths. In only three five-year periods (1941-45, 1966-70 and 1981-85), it contributed less than one-tenth of the total population growth, while in three periods (1931-35, 1976-80 and 1986-90) because of a net population outflow, its contribution was negative.

The volatility of migration trends contrasted with the upward trend in natural increase until 1961. The rise in natural increase has been prodigious. In 1861-65, births exceeded deaths by only 16,610. By 1961-65, the margin had soared to 205,164. Since then, the gap between births and deaths has gradually diminished because of a significant drop in the number of live births and a corresponding rise in the number of deaths. In 1981-85, births exceeded deaths by 148,423, a drop of 28 percent on a quarter of a century earlier. The rate of natural increase of population has risen from 0.8 percent to 0.9 percent.

The following text briefly looks at the population processes—fertility, mortality and migration.

Fertility

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

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

With the demobilisation of forces after World War II and the resulting increase in marriages and births, the fertility rate recovered to 3.6 births per woman in 1947.

Table 4.9. FERTILITY TRENDS AND PATTERNS

YearTotal live birthsCrude birth rate*Total fertility rate†Gross reproduction rate‡§Net reproduction rate§◊Ex-nuptial birth rate◊ķ

* Per 1,000 mean population.

Average number of births a woman would have during her reproductive life if she was exposed to the fertility rates experienced during that year.

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

§ Figures up to 1966 are for non-Maori population.

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

ķ Per 1,000 mean number of not-married women aged 15-49 years.

193628,39518.032.301.040.976.71
194139,17024.022.931.371.27..
194647,52427.013.451.591.4711.67
195149,80625.573.601.641.5814.85
195656,53125.903.981.841.7717.79
196165,39026.954.312.031.9624.14
196660,00322.373.411.661.6136.92
197164,46022.513.181.551.5144.39
197655,10517.602.271.091.0736.86
198150,79416.092.010.980.9638.81
198652,82316.121.960.960.9439.80
198755,25416.732.030.980.9642.44
198857,54617.352.101.021.0045.85
198958,09117.442.121.041.0148.83
199060,15317.892.181.071.0450.95
199160,00117.622.16x1.051.0352.05
199259,26617.222.121.021.0051.66

Other features of the post-war years were New Zealanders marrying younger, and marriage becoming almost universal. By 1961, half of all women were married before age 22 years, compared with barely a quarter married by that age in the early 1940s. These trends were reinforced by early childbearing and the shortening of birth intervals. In the mid-1950s, age group 20-24 years replaced 25-29 years as the commonest age group for childbearing. The median age at first birth fell from 25.5 years in 1945 to 22.9 years in 1964. Fewer couples remained childless or had only one child. The net result was soaring birth numbers, up from just over 27,000 in 1935, to about 42,000 in 1945 and to over 65,000 in 1961. Over 1.1 million New Zealanders were born between 1945 and 1964-the ‘baby boomers’.

AVERAGE AGE OF NEW MOTHERS
At birth of first child

As was the case elsewhere, this burgeoning in the number of births was to reshape the population age structure and pose many and varied problems for policy-makers and planners in both the public and private sectors. At its peak in 1961, the total fertility rate exceeded 4.3 births per woman and significantly exceeded the figures for other developed nations. However, the upward trend was reversed in the early 1960s, just as suddenly as it had begun, which has prompted demographers to suggest that the ‘baby boom’ was merely a temporary diversion from a long-term downward trend.

The turnaround coincided with the introduction of the oral contraceptive pill in the early 1960s, but the ‘cause-and-effect’ relationship is not clear-cut. It is possible that the increased acceptance and use of the pill helped sustain the downward trend. By the mid-1970s, the post-Depression rise in fertility had ended. The total fertility rate fell below the ‘replacement level’ in 1978 and then to an all-time low of 1.92 births per woman in 1983. Its impact on the annual number of births was large. Despite a substantial increase in the number of prospective mothers, caused by the large baby boom cohorts entering the prime reproductive ages, and thus the prospects of an ‘echo boom’, births dropped from over 64,000 in 1971 to below 50,000 in 1982.

Since 1983, there has been a minor resurgence in fertility and the 1992 rate implies a lifetime average of 2.12 births per woman, which is barely sufficient for the population to replace itself, without migration. However, it is still too early to suggest whether the upturn is merely a temporary phenomenon, arising largely from the making up of deferred childbearing by women aged 28-36 years, or is a long-term trend, reflecting a permanent shift to later childbearing.

The dynamics of the fertility decline or of the current low fertility levels are complex. Increased use of contraceptives, increased participation of women in the labour force, rising divorce rates and general economic conditions have probably all, directly or indirectly, contributed to it. Patterns of marriage and family formation have changed radically, with a shift away from early marriage and childbearing. Early childbearing has given way to delayed parenthood.

Between 1971 and 1986, the first marriage rate for women aged 20-24 years dropped by about two-thirds, from 308 to 113 marriages per 1,000 never married women aged 20-24 years. New Zealand women are now marrying on average, nearly four years later than they did in the early 1970s. The average age at first marriage in 1991 was 25.2 years compared with 21.7 years in 1971-72. A growing proportion are remaining single through their twenties. At the 1991 Census, over 19 percent of women aged 30-34 reported themselves as ‘never married’, compared with 6 percent in 1971.

The substantial postponement of marriage has been partly offset by the growth of de facto relationships (cohabitation outside marriage). Such relationships may be either a prelude to or a substitute for formal marriages. At the 1991 Census, 12.9 percent and 8.3 percent of New Zealand women aged 25-29 years and 30-34 years, respectively, were living in de facto relationships. The national all age average was 6.2 percent.

SIZE OF THE FAMILY
Average number of live births per woman born in any year*

These changes partly account for the substantial rise in the number of ex-nuptial births (children born to women who are not legally married), up from just over 5,000 in 1962 to over 10,000 in 1977, and to over 21,000 in 1991. Ex-nuptial births comprised 8 percent of all births registered in New Zealand in 1962 and 36 percent in 1991. Changing social norms and the availability of social welfare benefits to single parents have contributed to this increase.

There is also a high incidence of ex-nuptial births among Maori. In 1991, 75 percent of all Maori births were classified as ex-nuptial and they accounted for one-quarter of the country's ex-nuptial births. This atypical situation does not necessarily reflect unconventional attitudes of Maori towards childbearing outside wedlock, but arises partly from the fact that Maori customary marriages are not legally recognised.

As far as the overall fertility levels are concerned, the transition in Maori fertility from relatively large to small families is of more recent origin. Their total fertility rate fell from a high of 6.2 births per woman in 1962 to 2.2 births per woman in 1990, a 65 percent drop. The gap between the Maori and non-Maori fertility has narrowed from 2.2 to 0.02 births per woman during this period. Census-based studies also indicate high fertility among the Pacific Island Polynesians in New Zealand.

Table 4.10. VITAL STATISTICS: 1935-1992

Five year period ending 31 DecemberTotal births*Total deaths*Natural increaseLife expectancy at birth†‡Average age at death
MalesFemales

* For five-year period.

Excludes Maori population.

At year after each interval, i.e. 1936, 1981.

§ For total population for period 1989-91.

1935137,97666,27371,70365.4668.4557.36
1940158,95378,55580,39865.4369.0558.88
1945191,24387,021104,22267.1770.6160.89
1950244,45688,109156,34768.2972.4363.17
1955263,19194,187169,00468.8873.8864.38
1960300,089102,879197,21069.1774.5165.68
1965317,280112,116205,16468.6774.8465.19
1970307,547120,250187,29769.0975.1665.71
1975304,377124,797179,58069.3775.8866.13
1980263,134128,103135,03170.7676.8668.17
1985254,640129,531125,10971.3877.3969.43
1990283,868135,445148,42372.42§78.31§69.72
Annual      
198652,82327,04525,778   
198755,25427,41927,835   
198857,54627,40830,138   
198958,09127,04231,049   
199060,15326,53133,622   
199160,00126,50133,500   
199259,26627,24932,017   

Sperm analysis, Christchurch Women's Hospital.

BIRTHS TO UNMARRIED MOTHERS

Vandalised headstones, Christchurch.

Mortality

New Zealand has been quite successful in raising the average life expectancy of its population over the past hundred years. A temperate climate, low population density, lack of heavy industry and good nutrition gave New Zealand an early advantage over other nations in terms of health conditions.

From the middle of the nineteenth century until the 1930s, New Zealand had the lowest mortality rates in the world.

Table 4.11. DEATH RATES

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

* Per 1,000 live births.

rates per 1,000 of mean population in each age group
Males          
194143.654.391.362.532.933.959.2021.1347.44140.27
196125.861.340.491.281.472.687.3919.6547.33126.31
198113.010.950.351.531.352.266.5717.3043.39114.11
198512.090.540.361.541.381.945.8616.7542.20120.09
198612.490.860.341.711.532.125.7116.0641.72111.40
198710.560.590.391.751.541.905.6315.4940.73110.43
198812.130.650.311.681.542.085.0715.8838.85111.33
198911.730.660.341.851.532.015.0714.4537.57106.64
19909.640.730.291.801.511.934.6814.0836.07101.75
19919.620.510.331.501.402.134.6613.7334.8498.53
19928.320.540.321.561.511.954.7113.9834.90103.26
Females
194137.753.841.201.942.443.506.9015.0438.60118.92
196119.501.160.350.530.871.954.5911.2229.89104.74
198110.220.640.230.670.641.513.949.1923.7384.67
19859.470.580.290.570.691.393.859.4423.4489.59
19869.870.480.260.550.691.273.429.3822.3984.02
19879.450.520.230.620.701.283.859.2623.2883.85
19889.350.490.250.610.701.283.448.3021.8583.42
19898.580.390.200.600.571.273.588.6021.0380.64
19906.930.370.170.590.651.243.668.8421.0775.60
19916.930.390.180.520.651.393.358.4820.1175.90
19926.110.350.240.530.551.193.237.9919.4576.31
Both sexes
194139.814.121.282.222.673.728.0218.1643.04129.15
196122.761.250.420.911.182.316.0015.4137.67114.01
198111.650.800.291.110.991.895.2913.1532.6795.41
198510.810.560.331.061.031.664.8713.0631.86100.69
198611.210.680.301.141.111.694.5812.7131.0994.15
198710.030.550.311.201.121.594.7512.3731.1093.70
198810.770.570.281.151.121.684.2612.0929.4793.72
198910.190.530.271.231.041.644.3411.5228.5590.28
19908.310.560.231.201.071.594.1711.4627.9385.26
19918.320.450.261.021.021.754.0111.1126.8484.27
19927.260.450.281.051.021.573.9711.0226.5886.42

A large part of this improvement in longevity occurred prior to the 1930s, and was due to the saving of life at younger ages. The infant mortality rate fell steadily in association with a major reduction in infectious diseases (and respiratory diseases), which were previously the main causes of death in New Zealand.

In the area of longevity, the significant development over recent years was the slowing down of mortality decline between 1955-57 and 1970-72, although there was a slight deterioration in male mortality during the mid-1960s.

Since 1970-72, there has been a gain of approximately four years in the life expectancy at birth of both sexes. Unlike in earlier years, a major part of this improvement has occurred at the retirement ages. However, this improvement has not altered New Zealand's slightly disadvantaged position internationally. Currently residents of at least 10 other countries can expect to live longer than New Zealanders.

There is still considerable room for improvement, especially with regard to mortality in the first year of life and at retirement ages. Although the infant mortality rate has dropped steadily in the last 50 years—from 41.7 per 1,000 in 1939 to 20.5 per 1,000 in 1962, and further to 7.3 per 1,000 in 1992, it is still high compared with some European countries. Furthermore its post neo-natal component (i.e., death of a child over 28 days but under 1 year of age) is significantly higher than the rate recently achieved in Scandinavian countries (see section 7.2, Public health).

Recent data indicates that heart disease, cancer and cerebrovascular diseases (in that order) continue to be the three leading causes of death in New Zealand, and together account for over three-fifths of all deaths among the adult population in any year. Respiratory diseases claim another 10 percent. Motor-vehicle accidents cause another 3 percent of all deaths in a year, with teenagers and those in their early twenties accounting for over four-fifths of these fatalities.

Although the whole nation has benefited from better living standards, advances in medical knowledge and technology, and improvements in health services over the years, some differentials still exist. One notable historical trend is the widening of the male-female differences in mortality. A century ago, women could expect to outlive men by two years. By 1950-52, the female advantage had increased to four years, and by 1990-92, it was about six years.

LONGER LIVES
Average age at death

Life expectancy also varies according to ethnicity, with a substantial reduction in Maori mortality in the last three decades, and a significant convergence in the Maori-pakeha gap in longevity. The life expectancy at birth for Maori males increased from 54.0 years in 1950-52 to 68.0 years in 1990-92, a gain of 14.0 years. That for females rose by 17.1 years, from 55.9 years to 73.0 years. However, in 1991-92, a newborn pakeha male child could expect to outlive his Maori counterpart by 5.4 years. For females, the difference was 6.2 years.

Table 4.12. HISTORICAL LIFE EXPECTANCIES: INTERNATIONAL COMPARISON

CountryYear/PeriodMalesFemales
New Zealand1950-5267.271.3
Australia1953-5567.172.8
Denmark1951-6070.173.2
Japan1950-5259.663.0
Norway1951-5571.174.7
United Kingdom195166.271.2
New Zealand1970-7268.674.6
Australia1975-7769.576.4
Denmark1971-7570.976.5
Japan197069.374.7
Norway1971-7571.477.7
United Kingdom197168.875.0
New Zealand1980-8270.476.4
Australia198171.478.4
Denmark1981-8571.577.5
Japan198073.378.8
Norway1981-8272.679.4
United Kingdom198170.876.8
New Zealand1990-9272.978.7
Australia199073.980.0
Denmark1989-9072.077.7
Japan199075.981.8
Norway199174.080.0
United Kingdom198972.778.3

BIRTH AND DEATH RATES
For total population

External migration

New Zealand has traditionally been a country of immigration, although in the last 150 years the country's intake has been small compared with immigration flows to some New World countries, such as Australia, Canada and the United States.

Over the years, immigration has had a major impact on the size, growth rate, age-sex structure and ethnic composition of New Zealand's population, and has been a subject of vigorous public debate, especially when large-scale immigration has tested the amenities and structures of the country.

The end of World War II saw economic stability and the reintroduction, in 1947, of an assisted/free passage scheme to attract working-age industrial and agricultural labour from the United Kingdom. The immigration policy was further liberalised in 1950. Agreements were also negotiated to accept young non-British European migrants. Refugee immigration was allowed on humanitarian grounds. Subsequently, these grounds were to lead to the settlement of just under 4,000 Indo-Chinese refugees in New Zealand during the March years 1978-82. Historical and regional considerations also led to the establishment of immigration quotas for small Pacific Island countries.

Government adopted a new immigration policy in 1974, which ended unrestricted immigration from the United Kingdom and Ireland and provided for the selection of immigrants from all sources on the same criteria. The reciprocal Trans-Tasman Travel Agreement, which allows free movement of residents between Australia and New Zealand, was not changed. Similarly, the right of free entry into New Zealand was maintained for the people of the Cook Islands, Niue and the Tokelau Islands, who are regarded as New Zealand citizens. As a result, immigrants in post-war years have come from a wider range of countries than before.

Between 1951 and 1966, the country gained roughly 200,000 people. In 12 of the 16 years, net immigration was over 10,000. The economic recession of the late 1960s turned the tide again. A significant drop in immigration and a sharp upturn in emigration, resulted in a net emigration of 15,333 during 1967-69. This was just the beginning of the dramatic events to come.

The last two decades have witnessed some major and unprecedented changes in external migration levels and patterns. The preponderance of immigrants coming from the British Isles has decreased, and migration to and from Australia has become the largest in terms of volume. The rate of migration has increased significantly and there have been dramatic shifts in the flow of migrants.

The total number of arrivals has jumped more than seven-fold, from 254,000 during 1968, to 1.8 million during 1991. This reflects the ease and relatively low cost of international travel, with tourists making up the bulk of the international traffic. Unlike in early years, total departures exceeded total arrivals by an average of 111 people per annum during 1968-91. But this figure disguises the large swings in the external migration balance from one period to another, as shown in .

The early 1980s pointed to radical changes in permanent and long-term migration (persons whose stated intention is arriving to settle, or departing for 12 months or more). The number of permanent and long-term departures—which had shown a steep upward trend since 1961, rising from 13,305 to 82,554 in 1979-started to decline, and by 1983 had fallen to 33,871. Departures to Australia accounted for about three-fifths of this decline. In fact, in 1983 more people arrived from, than left for Australia and there was an overall gain of 8,285. This turnaround was short-lived, and by 1989 the figure had climbed to 61,535, giving a net emigration of 12,275. However, during 1990, an increase in the number of permanent and long-term arrivals, and a decrease in the number of permanent and long-term departures was recorded. This gave a net gain of 8,968. The net gain during 1991 was slightly lower, 8,080.

COMPONENTS OF POPULATION GROWTH
Annual net migration and natural increase

Significantly, immigration from the South Pacific countries, although small in size, is continuing. Moreover, unlike in earlier years, New Zealanders now comprise a significant component of permanent and long-term movements, which are dominated by persons of younger working ages.

Table 4.13. EXTERNAL MIGRATION: 1935-1993

Five year period ended 31 MarchTotalPermanent and long-termShort-term
ArrivalsDeparturesNetArrivalsDeparturesNetArrivalsDeparturesNet
1935111,933118,076-6 14313,46614,830-1 36498,467103,246-4 779
1940171,424159,51411,91022,87119,2673,604148,553140,2478,306
194535,00332,4142,5896,5979,241-2 64428,40623,1735,233
1950158,637135,43923,19851,48730,02021,467107,150105,4191,731
1955306,837239,14867,689116,51037,41979,091190,327201,729-11 402
1960395,218347,02148,197115,30851,16964,139279,910295,85215,942
1965737,703676,13761,566156,46275,05581,407581,241601,082-19 841
19701,278,8671,273,4095,458155,008127,81427,1941,123,8591,145,595-21 736
19752,506,7142,400,234106,480274,842196,99377,8492,231,8722,203,24128,631
19803,793,4833,874,575-81 092204,867319,964-115 0973,588,6163,554,61134,005
19854,772,2574,766,9935,264213,059247,712-34 6534,559,1984,519,28139,917
19907,359,3407,394,389-35 049226,420306,65380,2337,132,9207,087,73645,184
Annual         
19861,111,9261,130,444-18 51835,98257,595-21 6131,075,9441,072,8493,095
19871,321,7291,317,3724,35744,36058,629-14 2691,277,3691,258,74318,626
19881,554,9921,555,949-95747,84463,469-15 6251,507,1481,492,48014,668
19891,669,6371,687,935-18 29846,23370,941-24 7081,623,4041,616,9946,410
19901,701,0561,702,689-1 63352,00156,019-4 0181,649,0551,646,6702,385
19911,772,5241,757,94814,57657,08845,47211,6161,715,4361,712,4762,960
19921,809,8851,806,9472,93849,01044,7234,2871,760,8751,762,224-1 349
19931,898,7691,890,6898,08049,56242,7146,8481,849,2071,847,9751,232

4.4 Composition of the population

Age and sex of the population

The age and sex profile of a population represents the cumulative effect of past changes in the dynamics of population growth—fertility, mortality, and migration.

At present the New Zealand population contains slightly more females than males. This contrasts with the situation in the early colonial days when there was a large surplus of males, especially young males.

Each census saw the sex ratio draw closer to parity, with two exceptions when there was a temporary excess of females—during World War I and again during World War II.

In 1968, for the first time in the country's demographic history, females outnumbered males, and since then their advantage has increased steadily. Final counts show that there were 1,693,051 males and 1,741,899 females in New Zealand at the 1991 Census, representing a sex ratio of 97 males per 100 females. The shift largely reflects the preponderance of females among the retirement-age population (60 years and over) which carried a sex ratio of 80 males per 100 females in 1991. At ages below 60 years, men still outnumber women by a small margin.

Table 4.14. SEX OF THE POPULATION, 1936-1991 CENSUSES

CensusMalesFemalesTotal populationSex ratio*

* Number of males per 100 females.

1936799,091774,7211,573,812103.1
1945832,877869,4211,702,29895.8
1951973,968965,5041,939,472100.9
19561,093,2111,080,8512,174,062101.1
19611,213,3761,201,6082,414,984101.0
19661,343,7431,333,1762,676,919100.8
19711,430,8561,431,7752,862,63199.9
19761,562,0421,567,3413,129,38399.7
19811,578,9271,596,8103,175,73798.9
19861,638,3561,668,7283,307,08498.2
19911,693,0511,741,8993,434,95097.2

CHANGING AGES
Median age of the total population

Changes in the age structure of New Zealand population have been more profound over the past hundred years. They largely reflect the ‘roller coaster’ movements in the birth rate, with small and large birth cohorts moving into the age structure. However, migration gains/ losses (dominated by persons of younger and middle working ages) have added significantly to these structural changes.

The post-war baby boom broadened the base again and lifted the proportion of children in the population to 33 percent in 1961. With almost half of the population aged under 25 years at that time, the population looked youthful once again. The movement of small birth cohorts of the Depression years up the age scale meant a smaller proportion of workers in the population—only 55 percent in 1961. The elderly population increased in size by 84 percent, to make up over 12 percent of the total population. As the ‘youth’ and ‘aged’ components reinforced each other, the dependency ratio lifted sharply to a historical peak of 0.83, even exceeding the 1886 figure.

The subsequent sharp decline in fertility, increased longevity, and the movement of the baby boom ‘bulge’ into working ages has caused a major alignment of the age structure as well as incipient ageing. The median age of the population has risen by six and a half years since 1971, from 25.6 years to 32 years in 1993. The dependency ratio has fallen to a more favourable 0.63, due largely to a sharp drop in the ‘youth’ component.

At the end of 1992, children under 15 numbered just over 800,000 (down from 814,000 in 1961) and comprised just over 23 percent of the total population. Over the same period the working-age population (15-59 years) has risen by 788,000 (or 58 percent) to 2.14 million, and in 1993 accounted for 61 percent of the total population. The aged population has once again showed the largest rise, up 83 percent to well over 545,000 which represents a 24-fold increase over the 1886 Census figure of just over 23,000. Within this age group, the number of people aged 80 years and over has risen over the past 100 years from only 1,400 to 85,200, a 61-fold increase.

Finally, it is important to note that within New Zealand there are population subgroups with remarkably different age structures. Ethnic groups such as Maori and Pacific Island Polynesians have more youthful populations, commonly characteristic of developing nations. At the 1991 Census, they contained roughly twice the proportion of children under 15 years as their non-Maori, non-Polynesian counterparts (22 percent for the latter); about seven-tenths of their populations are under 30 years, and their median ages are about 12 years lower than their non-Maori, non-Polynesian counterparts (which is 32.2 years). At the other end of the age scale, only 4 percent of Maori, and 3 percent of Pacific Island Polynesians (because of their recent migration to New Zealand) are 60 years or over, compared with 17 percent for the non-Maori, non-Pacific Island Polynesian population.

Members of the Christchurch Safer Community Council watching a new education video on the problems encountered by elderly in the city.

Ethnic and cultural diversity

The islands of New Zealand have been ethnically and culturally connected to Polynesia for at least 1,000 years. Less than 200 years ago, its population and cultural heritage was wholly that of Polynesia, but now New Zealand is dominated by cultural traditions that are mainly European, emanating especially from Britain.

About four-fifths of New Zealanders are of European origin, predominantly of British Isles origin, but also including people from the Netherlands, Yugoslavia, Germany and other nations. The indigenous Maori population makes up the next largest group of the population, about 12.9 percent in 1991. The third main ethnic group is the Pacific Islanders, who made up around 5.0 percent of the population at the time of the 1991 Census.

The ethnic and cultural composition of New Zealand has also been shaped and reshaped by three main demographic processes; international migration, natural increase, and intermarriage between members of different groups. The most important of these processes has been international migration.

As well as those from the British Isles, nationalities from other European countries have influenced the make-up of the New Zealand population. Settlers from non-European sources have also added to the wider ethnic diversity of New Zealand.

Maori population. Estimates of the size of the Maori population at the time of European contact in 1769 vary greatly. Figures ranging from 100,000 to 200,000 have all been advanced. There is, however, agreement that whatever the original size of the population, a substantial decline occurred over the following 70 years. It is believed that the population had dropped to no more than 100,000 by 1840.

Contact with Europeans had proved disastrous for the Maori population. By the time of the systematic colonisation in the 1840s, the Maori population, estimated at between 120,000 to 150,000 in the 1770s, had dropped to around 100,000. Tuberculosis, typhoid, venereal disease, measles and other diseases new to Maori exacted a heavy toll. The introduction of firearms and subsequent warfare, both inter-tribal and with Europeans, also resulted in a depletion of population. At the time of the first census, in 1858, numbers had been further eroded to less than 60,000. This decline, combined with European immigration, made Maori a minority group in the population by the 1860s. Numbers continued to decline further, at a rate of over 1 percent per annum, until the 1870s.

For the remainder of the nineteenth century population levels fluctuated, suggesting an arrest in the trend towards depopulation. The lowest point was reached in 1896 (42,000), and from this time onwards there was a recovery in the Maori population.

AGE-SEX DISTRIBUTION
Total population at selected years

ETHNIC COMPOSITION

By the mid-1940s the Maori population had risen to a level comparable to that at the time European colonisation began.

The growth rate accelerated markedly after World War II, and peaked at 4.4 percent per annum during the early 1960s. This is believed to be close to the maximum possible increase for a human population that is ‘closed’ to inward migration. The rate of increase persisted at high levels until the mid-1970s.

Between 1976 and 1986 the rate of increase dropped significantly, averaging 1.3 percent per annum. By 1991, people who belonged to the Maori ethnic group numbered 434,847 and made up 12.9 percent of the population. While those with some Maori ancestry made up 15 percent of the population and numbered 511,947.

During the 1970s, international migration emerged for the first time as a significant factor in Maori population change. Large numbers of young Maori left New Zealand on a permanent or long-term basis in the 1980s. A population loss of 8,100 was recorded between 1981-1986. The main destinations of the migrants were Australia and the United Kingdom. Sizeable Maori communities now exist in Australia—particularly in Sydney. A result of this is that the Maori population is now susceptible to inward migration, both from return migration and the inward migration of Maori born overseas.

Fertility transition—Maori fertility has historically been high. Up to the 1960s the birth rate was around 45 per 1,000. However, a transition in fertility from high to low rates occurred in the 1960s and 1970s. Maori experienced one of the most rapid transitions chronicled anywhere in the world when the fertility rate dropped to a level two-fifths of that prior to 1962. The 10 years from 1962-71 saw the total fertility rate begin to decline, from 6 births per woman to 5 births per woman. The rate then began to fall even more sharply, and by 1977 was 3.0 births per woman. This level had only been reached by non-Maori women in 1972. In 1990 the fertility rate was 2.2 births per woman, only slightly higher than that of the total population.

Haka practice at Te Kura Kaupapa Maori O Mangere.

AGE AND SEX OF THE POPULATION, 1991
Total population and ethnic groups

Actually, as the birth rate reduced so did the average Maori family size. In 1962 it was 2.2 children greater than that of non-Maori. By 1990 the difference had narrowed to 0.02 children.

Rural to urban migration—The change from being a largely rural to a predominantly urban population also happened extremely rapidly for Maori. By 1945 around three-quarters lived in rural areas. However, within two decades the majority of the Maori population were living in urban areas. By the mid-1970s, three-quarters lived in urban areas. It is worth noting that at this time a trend for migration from urban to rural ancestral marae became apparent. Initially such migrants were older urban Maori. More recently a wider section of urban Maori have been involved. Nevertheless, by 1981, four-fifths of the Maori population was urban and a majority of Maori have now probably been born and raised in urban areas.

Urbanisation of Maori has been accompanied by a wider geographical distribution throughout the country. In the 1920s, 95 percent of Maori lived in the North Island. Countering the trend of the total New Zealand population, Maori began to shift south, to the southern North Island and to the South Island. In 1986, 10 percent lived in the South Island.

Age structure—Youthfulness is the central characteristic that has distinguished the Maori from the non-Maori population structure. Throughout most of this century the Maori population has been concentrated in the younger age groups—a result of the consistently high fertility of Maori.

Between 1926 and 1976, the proportion of children in the Maori population consistently exceeded 43 percent. A peak of 50 percent was achieved in 1966. In 1961, when the impact of the ‘boom’ in fertility was greatest, over 20 percent of the Maori population was less than five years old. Over the 15 years from 1971-86 significant changes to the structure of the Maori population occurred. The transition in fertility experienced in the 1970s had much impact. The median age, the point at which half the population is older and half younger, steadily increased. In 1971 it was 15.5 years, by 1986 it had risen to 19.5 years. The number and proportion of children in the Maori population also changed over this period. Children made up 49 percent of the Maori population in 1971, but this had fallen to 39 percent by 1986.

With the decline in the proportion of children in the population there has been an expansion in the population of the working age group (15-59 years) and in the women's reproductive age group (15-49 years). Of the total Maori population in 1971, 48 percent were of working age. In contrast 57 percent were of working age in 1986. Maori women of reproductive age accounted for 22 percent of the total population in 1971. This proportion had risen to 26 percent by 1986. Both the working age and reproductive age groups have a substantial youthful component. Almost one-third of the total Maori population were aged between 15 and 29 in 1986 and over three-fifths of women of reproductive ages were also aged between 15 and 29 in the same year.

The Maori population is showing signs of moving towards a more elderly structure, yet it is still far younger than that of non-Maori. In 1986 there were larger proportions of Maori than non-Maori in each age group under 30 years. The median age of Maori was, in 1986, 12.0 years below that of the non-Maori.

See also section 5.4, Maori society.

Table 4.15. ETHNIC COMPOSITION OF THE POPULATION, 1936-1991 CENSUSES

CensusTotal populationMaoriPacific Island PolynesianChineseIndianFijianOther

* Comprises Samoans, Tongans, Cook Islanders, and Niueans.

Those specifying themselves as half or more New Zealand Maori plus those not specifying their degree of origin. 1986 Census figures relate to those persons who stated ‘New Zealand Maori’ as their only ethnic origin.

Usually resident population.

19361,573,81282,3269882,9431,2001091,486,246
19451,702,33098,7442,1594,9401,5541851,594,749
19511,939,472115,6763,6245,7232,4252771,811,747
19562,174,062137,1518,1036,7313,1514792,018,447
19612,414,984167,08614,3408,5244,1797462,220,109
19662,676,919201,15926,27110,2836,8431,3232,431,040
19712,862,631227,41440,91812,4707,1401,1472,573,542
19763,129,383270,03561,35414,8609,2471,5482,772,339
19813,175,737279,25289,69719,24811,5801,9082,774,052
19863,307,084295,65999,13520,25912,4832,1272,877,421
1986‡3,263,283295,31791 869*19,56612,1261,8752,842,530
1991‡3,373,929323,493123 183*37,68926,9792,7602,859,825

Pacific Island Polynesians. Since the early 1960s the cultural and ethnic diversity of New Zealand has been enhanced by the inflow of Pacific Island Polynesians to New Zealand. Over this time, the Pacific Island Polynesian population in New Zealand has grown from a total of just over 14,000 in 1961 to about 99,000 by the mid-1980s. The Pacific Island Polynesian population is concentrated in several areas, particularly in Auckland and Wellington.

Pacific Island weavers‘ workshop at Wellington City Art Gallery.

In the late 1970s, as a result of economic downturn, immigration of Polynesians dropped sharply and natural increase became the major influence on Polynesian population growth. The 1980s saw a return to substantial net migration gains from Polynesia, and between 1981 and 1986, there were 14,856 more arrivals than departures. These people added the equivalent of 30 percent to the total Pacific Island Polynesian-born population enumerated in New Zealand at the 1981 Census. Thus international migration remains a very important determinant of growth in this component of New Zealand's population.

See also section 5.5, Pacific Island Polynesian population.

Refugees. Refugees from Europe arrived in the 1930s and again during World War II. Many of these were Jews and Poles. The migration of refugees into New Zealand was intensified after the war. About 6,000 refugees from Poland were eventually allowed to settle in New Zealand in the immediate post-war years. Following the 1956 Hungarian uprising, a further limited intake of refugees from Hungary was received by New Zealand. As a result of the conflict in Indo-China, about 7,000 Indo-Chinese refugees have been resettled in New Zealand since 1975. This has accounted for over 90 percent of New Zealand's total refugee intake from this time. In addition to the Indo-Chinese refugees, small numbers of Chilean, Russian Jew, East European and Assyrian refugees have also been received at different times.

While the cultural diversity of New Zealand is—for the greater part—Eurocentric, the range of cultural norms present in New Zealand that have come from non-European sources, along with the existing Maori culture, suggest that New Zealand will proceed into the next century possessing a wide range of different ethnic and cultural values.

For further information on ethnicity and country of birth of the population refer to section 5.3, Human rights, immigration and citizenship.

4.5 Future population issues

What lies ahead in New Zealand's demographic future? Predicting future trends, even beyond the short-term, is a difficult task because population trends and structures influence and are in turn affected by a host of economic, social and other circumstances.

Statistics New Zealand regularly prepares a range of projections for the New Zealand population. These combine different scenarios on future changes in fertility, mortality and external migration, which appear likely in the light of the historical trends. These projections are not exactly forecasts, but illustrate what the changes in population size, growth rate and age-sex structure would be if the given assumptions are met.

The 1991-base population projections indicate that New Zealand's population will grow slowly and age steadily over the next four decades to 2031.

On the basis of natural increase (assuming that New Zealand women continue to have about two children on average) and excluding population change through migration, it is projected that the country's population will reach 4.31 million by 2031. This estimate would be an increase of 0.89 million, or 26 percent, over the 31 March 1991 figure of 3.42 million. The pace of growth, however, will slow from a rate of 1.0 percent per year during the 1991-2001 decade to 0.3 percent per year over 2021-2031, reflecting a narrowing of the gap between births and deaths.

In estimating the population including external migration gain, a net gain of 5,000 persons a year (the average number over the last 90 years), will mean an extra 270,000 persons, making a total population of 4.58 million by 2031. The Government, however, has expressed a goal of 20,000 net immigrants per annum; if this figure is attained there will be 5.39 million New Zealanders by the year 2031, an increase of 1.97 million or 58 percent during the 40 year period.

There will be profound changes in New Zealand's age structure in the future. With the ‘two child family/no immigration gain’ scenario, the median age of the population (where half the population is above this age) would rise steadily from 31.3 years in 1991 to 39.7 years in 2031. Given the ‘5,000’ net immigration scenario the median age of the population in 2031 would be 39.1 years; and using the ‘20,000’ net immigration figure, the median age would be 37.9 years.

Among the various age segments of the population, it is the elderly (aged 65 years and over), which will show the fastest growth over the 1991-2031 period. They will comprise approximately 19 percent of the total population by 2031, compared with only 11 percent in 1991. Under the ‘5,000’ net immigration scenario, New Zealand's elderly population will increase by 132 percent, from 385,000 in 1991 to 892,000 in 2031. This increase is indicative of the ‘baby boomers’ ageing and reaching retirement age in the next century. By 2031, one in every five New Zealanders will be over 64 years of age, compared with one in nine in 1991. Within the elderly age group, the number of those aged 80 years and over will more than treble from the 1991 figure of 78,000 to 246,000 in 2031. Women in this age group will, by then, outnumber men by three to two.

Projections of New Zealand's working age population (16-64 years) indicate steady growth, from 2.2 million in 1991 to 2.8 in 2021, an increase of over half a million or 26 percent. This increase is due to the projected annual accession to this age group exceeding retirements from it by an average of 19,000 persons per year. During 2021-2031 the working age population will remain stable, but will have an older age profile. The proportion of the total population who are in the working age group will drop, from 64 percent in 1991 to approximately 60 percent in 2031.

Otakiri School, Eastern Bay of Plenty, where there are five sets of twins on a roll of 177 pupils.

The number of children under 16 years of age is projected to increase initially from 843,000 in 1991 to peak at 986,000 in 2005, but the number will then drop to 885,000 in 2020 before rising to 928,000 in 2031. These rises and falls reflect swings in the number of births caused by changes in the number of women of childbearing age. Children aged under 16 years will comprise a smaller percentage of the total population in the future, decreasing from about 25 percent in 1991 to 20 percent in 2031.

Table 4.16. POPULATION PROJECTIONS 1991-2031*†

Age-group1991 (Base)2001201120212031

*Assuming ‘medium’ fertility and ‘medium’ mortality with long-term annual immigration of 5,000 per annumn.

†Figures have been rounded.

0-15843,000965,000947,000886,000928,000
16-642,190,0002,399,0002,631,0002,767,0002,765,000
65+385,000455,000543,000711,000892,000
        Total population3 418 0003 820 0004 120 0004 364 0004 584 000

Contributor

4.1-4.5 Statistics New Zealand.

Special articles

Department of Social Welfare; Future Times, 1992 No 4, New Zealand Features Trust; Statistics New Zealand.

Further information

Census of Population and Dwellings 1986

Ages and Marital Status. Series C, Report 3. Department of Statistics.

1987 Electorate Profiles. Series B, Report 27. Department of Statistics.

Labour Force—Part 1. Series C, Report 4. Department of Statistics.

Local Authority Population and Dwelling Statistics. Series A, Report 2. Department of Statistics.

National Summary. Series C, Report 2. Department of Statistics.

Profiles of New Zealanders: Families and Households. Series E, Report 3. Department of Statistics.

Profiles of New Zealanders: The Labour Force. Series E, Report 2. Department of Statistics.

Regional Statistics. Series B, Reports 2-23. Department of Statistics. (Reports for each local government region.)

Regional Summary. Series B, Report 24. Department of Statistics.

Rural Population Statistics. Series A, Report 3. Department of Statistics.

Usually Resident Population. Series B, Report 25. Department of Statistics.

Dwellings. Series C, Report 11. Department of Statistics.

A full list of 1991 Census of Population and Dwellings publications can be found in the list of Statistics New Zealand publications at the back of this volume.

Demography, vital statistics, and migration

Demographic Trends. Department of Statistics (annual).

Elderly Population of New Zealand. Department of Statistics, 1990.

External Migration Statistics. Department of Statistics (annual).

Foetal and Infant Deaths. Health Statistical Services (annual).

Hospital and Selected Morbidity Data. Health Statistical Services (annual).

The Human Face of New Zealand: A Context for Population Policy into the Twenty-first Century. Report of the Inter-departmental Committee on Population Policy Guidelines, Department of Statistics, 1990.

Inter-regional Migration in New Zealand, 1971-1981. Department of Statistics, 1986.

Maps of Statistical Boundaries. Department of Statistics. (Map series), 1986.

Key Statistics. Department of Statistics (monthly).

New Zealand Life Tables 1985-87. Department of Statistics, 1991.

New Zealand Sub-national Population Projections 1986-2006. Department of Statistics, 1985.

Profile of Women: A Statistical Comparison of Females and Males in New Zealand 1945-84. Department of Statistics, 1985.

Trends and Patterns in New Zealand Fertility, 1912-1983. Department of Statistics, 1986.

Families in New Zealand

The family remains an integral part of New Zealand society. At the 1991 Census, more than four-fifths of New Zealanders living in a private dwelling were in a family unit, as either a child, parent or spouse. Of the 1,177,665 households counted in 1991, nearly three-quarters (74 percent) contained families, 20 percent contained a single occupant and 6 percent were non-family households.

Defining families

There are many ways in which a family may be defined, each creating a different group within the population. For the purposes of this analysis, a family refers to a husband and wife (in a legal or de facto marriage) with or without children living in the same dwelling, or a sole parent (of any marital status) living with one or more children of any age.

Households

Since the 1986 Census, family households have recorded the slowest rate of growth. While the number of family households increased by 6.1 percent, non-family household numbers rose by 6.5 percent, and sole-person households increased by 15.9 percent. Overall, the number of households grew by 8.2 percent during this time.

The rapid growth in sole-person households is slowly eroding the dominance of family households. The formation of households containing only one person is the result of many factors, including lower marriage rates, increased divorce rates and most importantly—the ageing of the population.

Sole households

In 1991, 235,986 people lived along—9 percent of all adult New Zealanders. In the last 20 years, the number of sole households has doubled. Between 1986 and 1991, the number of sole households increased by 32,367 or 16 percent. One-person households comprised one in five households in 1991, compared with around one in eight in 1971.

More than half the people who live alone are elderly (60 years and over), and nearly three-quarters are women. Since 1986, people aged 60 and over have contributed to nearly half the increase in single households. Nearly three-fifths of all widowed New Zealanders lived by themselves in 1991, as did one-quarter of divorced people and one-fifth of separated people.

Family households

Family households are those which contain at least one family (with or without other persons). In 1991, only 2.3 percent of all family households contained two or more families. Thus, family households (containing one or more families) and household families (one family only) are almost the same.

HOUSEHOLDS IN NEW ZEALAND

Although the family remains an important unit in New Zealand society, the diversity of family types has increased as divorce rates have risen and marriage rates have fallen. Families are also smaller than in the past. What was once a ‘typical’ family—a legally married couple with at least one dependent child—now represents only 38 percent of all New Zealand families.

A total of 882,600 families were counted in the 1991 Census, 48 percent of which were two-parent families, 35 percent couple-only families and 17 percent were one-parent families.

FAMILIES IN NEW ZEALAND

Couple-only families have no children in the household, either because adult children have left or the couple have never had any children. While the number of families with children increased by 3 percent between 1986 and 1991, the number of families without children increased by 14 percent during this period. Consequently, the proportion of families containing children has declined.

In 1991, 80 percent of two-parent families had at least one dependent child. The remaining families had only adult children in the home. Statistics New Zealand defines a dependent child as a family member under 16 years of age or aged 16-18 years and still at school. In today's situation, it is relatively common for adult children (aged 17-24 years) to be living with their parents. Although these children are not classified as dependent, they may be equally as reliant on their parents for support.

One-parent families

One in four families with children now contain only one parent, compared with one in five in 1986 and one in six in 1981. Families headed by a sole mother continue to outnumber sole-father families by more than four to one.

During the last 10 years, the number of children born to unmarried mothers has almost doubled, and the proportion has risen from 23 percent of all births in 1982 to 37 percent in 1992. Note, however, that many of these ex-nuptial births occur to women living in de facto relationships.

Increasing levels of separation and divorce between 1971 and 1986 saw these events replace death as the most likely cause in the formation of a one-parent family. More than half (53 percent) of sole parents in 1991 were separated or divorced. Legislative change in 1981 saw the number of divorces rise dramatically in 1982. A growing number of marriages are dissolving after shorter periods. In 1992, 41 percent of all divorces involved marriages of less than 10 years duration.

The fastest growing group of sole parents in those who have never married (this includes people previously living in de facto relationships). Sole-parent families raised by a never married parent increased in number by 80 percent between 1986 and 1991, and accounted for over half of the total rise in sole-parent families during this time. In 1991, more than one in four sole parents had never married, compared with one in five in 1986.

Marriage

In the past, marriage was seen as the natural precursor to family formation. While this is no longer true to the same extent (as the number of ex-nuptial births shows), marriage still remains an important feature of the family unit in New Zealand. Thus, the situation of families will be influenced by any change in marriage patterns.

Delayed marriages are reflected in the rising average age at marriage, and in the increased proportion of unmarried men and women in their late twenties and early thirties. In 1971, only 11 percent of New Zealand women aged 25-29 years had never married, by 1991 this had risen to 39 percent. Similarly, the percentage of women aged 30-34 who had never married increased from 6 to 20 percent during this time. The following table provides an example of this transition.

PROPORTION NEVER MARRIED

By selected age
YearWomen 20-24 yearsMen 25-29 Years
196140.529.7
197135.522.2
198152.330.7
199177.655.6

Over the last 20 years, the average age of brides and bridegrooms has risen by around five years to 29 and 32 years, respectively, in 1992. This rise in average age reflects both the trend in delayed marriage, as well as the growth in remarriage. In 1992, 35 percent of all marriages involved at least one partner who had been married before.

Age of parents

Delayed marriage has combined with a delay in childbearing to raise the ages of many parents. The average age of mothers in two-parent families with children rose from 38 to 39 years between 1986 and 1991, while a father in this type of family was 42 compared with 41 years in 1986.

Conversely, the average age of sole parents has fallen—due largely to the rising numbers who are divorced and separated, rather than widowed. In 1991, sole mothers recorded an average age of 40 years, compared with 41 in 1986, while the average age of sole fathers fell from 48 to 45 years during this time.

Family size

The last three censuses have seen both the number and proportion of children fall. In 1991, there were 1,131,000 children, a decrease of 4 percent since 1981. The number of dependent children fell from 905,000 to 879.000 during this time, a decrease of 3 percent.

A combination of factors have led to this decline. Falls in marriage and fertility rates, a rise in de facto unions (these are more likely to be childless) and an ageing population are all contributing factors.

The total fertility rate (TFR) (i.e. the average number of children a woman would have during her lifetime) shows the transition in childbearing in New Zealand between 1912 and 1992 (see following graph). The peak in the centre of the graph shows the ‘baby boom’—a period of high fertility from 1945-1972. At its peak in 1961, the TFR reached 4.3 births per woman. The boom collapsed in the early 1970s, and the TFR fell below replacement level (2.1) in 1980. Since then it has fluctuated only slightly between 1.9 and 2.2 births per woman. This is sufficient for the long-term replacement of the population.

TOTAL FERTILITY RATE

The average number of children per family continues to fall. In 1991, for the first time in a census, the average number of children per family fell below two, to 1.97. In 1986, it was 2.04. There are now more families with one child than with two.

Sole-parent families tend to be smaller than those which contain both parents. In 1991, more than half of sole-parent families (55 percent) contained only one child. In two-parent families, one-child families represented only one-third of the total.

NUMBER OF CHILDREN
In one and two parent families

Age of children

The average family still contains at least one dependent child. Of the 575,565 families with children in 1991, four-fifths had a dependent child. These children are more likely to be school-aged, but for the first time in 15 years, the number of preschoolers has risen. In 1991, 44 percent of families with dependent children had a child under five years compared with 40 percent in 1986.

There has been a particularly sharp rise in the number of sole parents with preschoolers. Between 1986 and 1991, the number of sole parents with children under five increased by 61 percent from 29,106 to 46,722, while the number of couple families with children of this age increased by only 2 percent. Consequently, sole-parent families accounted for nearly all (88 percent) of the increase in families with preschool children between 1986 and 1991.

Families and the labour force

In 1991, there were 339,681 couples with dependent children in New Zealand. The proportion of couples where both parents were in the labour force (including the unemployed) was 60 percent, but the percentage where both parents were in employment was 55 percent. In 9 percent of these two-parent families, at least one partner was unemployed (including couples where one partner was not in the labour force).

There were 110,052 one-parent families with dependent children in 1991. In 42 percent of these families, the parent was in the labour force, but employed in only 31 percent. In 12 percent of one-parent families, the parent was unemployed.

Employment levels for mothers

The degree of participation in the labour force for women with dependent children is closely related to the age of the youngest child (see following table). In two-parent families, women with children below five years of age have a participation rate of less than 50 percent. Once the youngest child reaches school age, however, participation rates rise to more than 70 percent. The proportion working full-time also increases as the youngest child grows older.

LABOUR FORCE PARTICIPATION OF MOTHERS*
By family type and age of youngest dependent child
Family type by age of youngest dependent child (years)Labour force participation rateProportion employed full-time

*1991 Census

 percent 
Two-parent families  
0-445.016.9
5-972.934.5
10-1479.147.1
15-1880.352.4
One-parent families  
0-423.56.6
5-944.016.3
10-1455.529.3
15-1863.940.4

For women with dependent children, the proportion working full-time was 31 percent for women in couple families and 17 percent in one-parent families.

Labour force participation rates for sole parents tend to be lower. Sole mothers with children under five years of age had a participation rate of just 24 percent in 1991. This reaches more than 50 percent only when the youngest child is more than 10 years old. Sole mothers remain less likely than mothers in two-parent families to work full-time, even as the age of the youngest child increases.

Two full-time working parents

In 1991, for the first time, couple families with both parents working full-time outnumbered the traditional model of a father in full-time employment and a mother not working. This ‘breadwinner/home maker’ family decreased from 35 percent of all families in 1986 to 28 percent in 1991. During this period, the proportion of couple families with neither parent working has doubled from 6 to 12 percent.

Chapter 5. Social framework

Turangawaewae regatta suffrage celebrations.

5.1 Households

There were 1,177,665 households living in private dwellings in New Zealand at the latest Census of Population and Dwellings, held on 5 March 1991. This was an increase of 89,067 (or 8.2 percent), in the number of private households since the 1986 Census.

describes the number of households by type counted at the 1986 and 1991 censuses. ‘One family only’ households still remain predominant, although the share of households in this category fell from 67.9 percent in 1986 to 65.9 percent in 1991. ‘One person’ households are easily the next most common type, comprising 20 percent of all private households.

Table 5.1. USUAL HOUSEHOLD COMPOSITION

Type1986 Census1991 CensusIntercensal percentage change
NumberPercentage of totalNumberPercentage of total

*Households containing temporary visitors only.

One family only739,46467.9775,55765.94.9
One family plus other persons56,5835.266,3875.617.3
Two or more families (with or without other persons)16,3921.519,8181.720.9
Non-family households64,6235.968,8205.86.5
One-person households203,61918.7235,98620.015.9
Not elsewhere classified*7,9170.711,0970.940.2
        Total1 088 598100.01 177 665100.08.2

Dwellings

The number of dwellings occupied on census night increased from 1,095,747 in 1986 to 1,185,396 in 1991, a rise of 89,649, or 8.2 percent.

shows that all types of permanent private dwellings increased in number during the 1986-1991 intercensal period. In contrast, there was a 32.1 percent decline in the number of temporary private dwellings and an 8 percent decline in the number of dwellings under construction at the time of the census.

Table 5.2. TYPES OF DWELLINGS

TypeNumber of dwellingsIntercensal percentage change
19861991

*Includes mobile or temporary dwellings within a motor camp.

Occupied dwellings—   
        Permanent private dwellings—   
            Separate house862,341950,64610.2
          Two houses or flats joined together103,338110,1036.5
          Three or more flats/houses joined together90,98491,1790.2
          Flat/house attached to business or shop8,1909,27913.3
          Bach, crib, hut (not in a work camp)5,9496,87615.6
          Not specified7,2092,385-66.9
              Total, permanent private dwellings1 078 0051 170 4688.6
        Temporary private dwellings*10,5967,197-32.1
        Total private dwellings1,088,6011,177,6658.2
        Non-private dwellings7,1497,7318.1
              Total, occupied dwellings1 095 7471 185 3968.2
        Unoccupied dwellings—   
        Occupants temporarily away31,12834,32810.3
        Empty habitable dwellings35,45443,25122.0
        Holiday residences40,95045,13210.2
              Total, unoccupied dwellings107 535122 71114.1
        Dwellings under construction10,4409,605-8.0

HOUSEHOLD SIZE
Persons per dwelling

The percentage increase in occupied dwellings was much more than that of the total New Zealand population, leading to a reduction in the average number of people per occupied dwelling. In 1991, the average number of occupants per private dwelling was 2.8, compared with 2.9 five years earlier. shows the decline in the average number of occupants for all dwellings types.

Table 5.3. NUMBER OF OCCUPANTS IN OCCUPIED DWELLINGS

Type1986 Census1991 Census
 AggregateAverageAggregateAverage
        Permanent private dwellings—    
          Separate house2,682,7293.12,828,0043.0
          Two houses or flats joined together215,4182.1220,4342.0
          Three or more flats/houses joined together165,1831.8162,2911.8
          Flat/house attached to business or shop22,4462.724,2252.6
          Bach, crib, hut (not in a work camp)12,2852.114,0732.0
          Not specified18,0512.56,5282.7
            Total, permanent private dwellings3 116 1122.93 255 5582.8
        Temporary private dwellings22,8932.213,3141.9
            Total, private dwellings3 139 0052.93 268 8722.8
        Non-private dwellings168,08123.5166,08021.5
           Total occupied dwellings3 307 0833.03 434 9492.9

shows the number and distribution of occupied private dwellings by number of occupants on census night in 1986 and 1991. Changes in distribution of dwellings by numbers of occupants are a result of demographic, social and economic trends.

Intercensal increases in both the number and percentage of dwellings with one occupant reflect demographic shifts in the population towards increasing numbers of people at the ages where living alone is most common. However, not all of the increase can be explained by demographic shifts within the population and reflect changes in the attitudes and choices of New Zealanders.

These trends, together with the growing incidence of de facto relationships, sole parents and childless marriages help explain the comparable increases in the number and percentage of dwellings with two or three occupants and the reduced (or negative) growth in dwellings with four or more occupants.

Table 5.4. NUMBER OF OCCUPANTS OF PRIVATE DWELLINGS

Number of occupants1986 Census1991 CensusIntercensal percentage change
DwellingsPercentageDwellingsPercentage
1213,87619.6248,08521.116.0
2332,57430.6375,45331.912.9
3185,51717.0205,55717.510.8
4191,77217.6191,64616.3-0.1
5101,2809.397,3808.3-3.9
638,5473.536,6483.1-4.9
713,8481.312,7711.1-7.8
8 or more11,1871.010,1220.9-9.5
        Total1 088 601100.01 177 665100.08.2

Winners of the best all-male flat section in the Otago University Student House and Garden Contest.

Tenure of dwellings. A comparison of the 1986 and 1991 census data shows changes in the tenure of private dwellings. These can be seen in .

Occupied private dwellings owned without a mortgage increased by 15.5 percent during the intercensal period to reach 396,042 in 1991. This category increased its share of total private dwellings from 31.9 percent to 34.2 percent. There was also an increase (of 1.9 percent) in the number of occupied dwellings owned with a mortgage during this period although the share of total dwellings with this tenure status fell from 41.6 percent in 1986 to 39.4 percent in 1991. The census also reported a 25.6 percent increase in the number of private dwellings provided rent free.

Table 5.5. TENURE OF PRIVATE DWELLINGS

Tenure1986 Census1991 CensusIntercensal percentage change
 DwellingsPercentageDwellingsPercentage 
Owned with mortgage447,92141.6456,44739.41.9
Owned without mortgage342,95431.9396,04234.215.5
Rented or leased253,31723.5267,34523.15.5
Provided free31,6862.939,8043.425.6
Not specified12,723-18,024-41.7
        Total1 088 601100.01 177 665100.08.2

shows a continued decline in the servicing of the rental housing market by government departments other than the Housing Corporation and local authorities. In contrast to this, dwellings rented or leased from individuals and companies increased by 7.9 percent during the 1986-1991 intercensal period. This remains the most common category, comprising 63.7 percent of rented dwellings in 1991. The share of rented dwellings provided by the Housing Corporation also increased, from 23.2 percent in 1986 to 24.9 percent in 1991.

Table 5.6. CATEGORY OF LANDLORD FOR RENTED OR LEASED PRIVATE DWELLINGS

Category of landlord1986 Census1991 CensusIntercensal percentage change
DwellingsPercentageDwellingsPercentage
Rented or leased from—     
Private person/company151,31162.5163,24263.77.9
Housing Corporation56,24723.263,90324.913.6
Other government departments17,9167.413,4375.2-25.0
Local authority16,7106.915,5466.1-7.0
Landlord not specified11,130-11,217-0.8
        Total, rented or leased253 317100.0267 345100.05.5

Maori and Pacific Island households and dwellings

Composition of households. There was a total of 131,853 households in permanent private New Zealand Maori dwellings at the 1991 Census of Population and Dwellings. The corresponding figure for households living in permanent private Pacific Island dwellings was 40,812.

In 1991 a New Zealand Maori dwelling (and, by definition, household) was defined as a dwelling where the occupier, or spouse of the occupier, specified that they belonged to the New Zealand Maori ethnic group. Pacific Island dwellings and households were defined the same way. As a consequence, a dwelling can be classified (and hence counted) as both a New Zealand Maori dwelling and a Pacific Island dwelling.

shows the usual composition of New Zealand Maori and Pacific Island households at the 1991 Census. A significant feature of this table is that the percentage distribution of Pacific Island households is weighted towards the ‘one family plus other persons’ and ‘two or more families with or without other persons’ categories. Of all Pacific Island households 25.4 percent are in the above categories compared to 16.6 percent of New Zealand Maori households.

HOME OWNERSHIP
By ethnic composition

Table 5.7. USUAL COMPOSITION OF MAORI AND PACIFIC ISLAND HOUSEHOLDS, 1991 CENSUS*

Household typeNew Zealand MaoriPacific Island
NumberPercentage of totalNumberPercentage of total

*Private dwellings where the ‘occupier’ or 'spouse of occupier‘ is a person of ‘New Zealand Maori ethnic group‘ or ‘Pacific Island ethnic group‘.

One family only89,75168.126,17564.1
One family plus other persons15,47411.76,90316.9
Two families (with or without other persons)5,9494.53,1537.7
Three or more families (with or without other persons)4680.43360.8
Non-family households6,3754.81,4013.4
One-person households12,6189.62,1545.3
Not elsewhere classified1,2150.96931.7
        Total131 853100.040 812100.0

Types of dwellings. The 1991 Census distribution of Maori and Pacific Island households by dwelling type is given in . New Zealand Maori households show a greater tendency to live in separate houses than Pacific Island households. The reverse is true for two and three semi-detached houses or flats.

Table 5.8. TYPES OF MAORI AND PACIFIC ISLAND DWELLINGS, 1991 CENSUS*

TypeNew Zealand MaoriPacific Island
NumberPercentage of total†NumberPercentage of total†

*Private dwellings where the ‘occupier’ or 'spouse of occupier’ is a person of ‘New Zealand Maori ethnic group’ or ‘Pacific Island ethnic group’.

Calculated in terms of specified cases only.

        Occupied permanent private dwellings—    
          Separate house107,42181.930,56475.1
          Two houses or flats joined together10,6958.24,43410.9
          Three or more flats (houses) joined together9,5077.25,13912.6
          Flat/house attached to business or shop1,1340.93510.9
          Bach, crib, hut (not in work camp)1,1820.9810.2
          Not specified711...111...
            Total, permanent private dwellings130 65399.140 67799.7
        Temporary private dwellings1,2000.91350.3
            Total, private dwellings131 853100.040 812100.0

Number of occupants. The distribution of New Zealand Maori and Pacific Island dwellings by number of occupants at the 1991 Census (see ) reinforces the patterns evident in the usual composition of households by type for these two ethnic groups. Whereas 54.6 percent of Maori dwellings have three or fewer occupants, only 39.0 percent of Pacific Island dwellings do.

This can be partly explained by the lower average size of Maori families and the tendency for Pacific Island dwellings to house more than one family.

Table 5.9. NUMBER OF OCCUPANTS OF MAORI AND PACIFIC ISLAND DWELLINGS, 1991 CENSUS*

Number of occupants†New Zealand MaoriPacific Island
DwellingsPercentage of totalDwellingsPercentage of total

*Private dwellings where the ‘occupier’ or 'spouse of the occupier’ is a person of ‘New Zealand Maori ethnic group’ or ‘Pacific Island ethnic group’.

Refers to the number of people residing in a private dwelling on census night.

One13,59910.32,3555.8
Two30,71723.36,37215.6
Three27,64821.07,17917.6
Four26,27419.97,84819.2
Five17,14213.06,52816.0
Six8,7996.74,47011.0
Seven4,0173.02,6376.5
Eight or more3,6602.83,4208.4
        Total131 853100.040 812100.0

Tenure. Patterns of tenure and category of landlord shown in 1991 census data reflect the household income and demographic structures of Maori and Pacific Island ethnic groups. and show that Pacific Islanders tend to be more reliant on rented or leased housing than Maori, who, in turn, are almost twice as reliant on rental housing as the general population (see ).

For occupier-owned housing, 55.3 percent of Maori dwellings, compared with 47.0 percent of Pacific Island dwellings, were owned with or without a mortgage.

Table 5.10. TENURE OF MAORI AND PACIFIC ISLAND DWELLINGS. 1991 CENSUS*

TenureNew Zealand MaoriPacific Island
DwellingsPercentage†DwellingsPercentage†

*Private dwellings where the ‘occupier’ or 'spouse of occupier’ is a person of ‘New Zealand Maori ethnic group’ or ‘Pacific Island ethnic group’.

Calculated in terms of specified cases only.

Owned with a mortgage52,46140.415,63038.9
Owned without a mortgage19,29614.93,2678.1
Rented or leased52,37440.320,42450.9
Provided free5,7454.48312.1
Not specified1,977...660...
        Total131 853100.040 812100.0

Table 5.11. CATEGORY OF LANDLORD FOR RENTED OR LEASED PRIVATE DWELLINGS, 1991 CENSUS*

Category of landlordNew Zealand MaoriPacific Island
DwellingsPercentage†DwellingsPercentage†

*Rented or leased private dwellings where the ‘occupier’ or 'spouse of occupier‘ is a person of ‘New Zealand Maori ethnic group’ or ‘Pacific Island ethnic group’.

Calculated in terms of specified cases only.

Rented or leased from—    
Private person/company24,88249.87,14636.8
Housing Corporation20,10940.211,25058.0
Other government departments3,3036.65883.0
Local authority1,6773.44112.1
Landlord not specified2,406...1,029...
        Total, rented or leased52 374100.020 424100.0

Household transport

At the 1991 Census of Population and Dwellings 1,009,086 households, or 87.6 percent of households, had the use of one or more motor vehicles for private transport. This was an increase of 88,590 over the number of private households (920,496) with the use of vehicles at the 1986 Census.

The share of households with two or more vehicles increased from 37.2 percent to 40.9 percent during the intercensal period, while there was a related decline in the percentage of one-vehicle households and households without a vehicle.

Table 5.12. HOUSEHOLD TRANSPORT

Number of motor vehicles*1986 Census1991 CensusIntercensal percentage change
HouseholdsPercentage of total†HouseholdsPercentage of total†

*Includes cars, station-wagons, vans, trucks, and other vehicles used on public roads (excludes motorcycles and scooters). Business vehicles if available for private use are also included.

Calculated on specified cases only.

0142,59313.4143,23212.40.4
1525,04849.4538,22746.72.5
2302,41528.4356,81431.018.0
369,5256.584,5377.321.6
417,3341.621,4111.923.5
5 or more6,1770.68,0970.731.1
Not specified25,509...25,347...-0.6
        Total1 088 598100.01 177 665100.08.2

Household income and expenditure

The New Zealand Household Expenditure and Income Survey is conducted continuously by Statistics New Zealand and the results are presented on a March-year basis. It provides statistics on the expenditure patterns and income levels of private households and information on the social and demographic characteristics of households.

A sample of approximately 4,500 private households is randomly selected for the survey every fifth year, to provide data for the revision of the Consumers Price Index (see section 24.1, Consumer prices), and a smaller sample of approximately 3,000 private households is selected in other years. In the 1992-93 year, 4,683 private households (comprising 12,880 people) participated in the survey, each household containing an average of 2.76 people. Questionnaires administered to each household include a household questionnaire, an expenditure questionnaire 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, meals away from home, and food items such as ice cream and confectionery, tend to be under-reported in household surveys. Other data sources indicate that a similar situation occurs in the New Zealand survey.

In the following tables the aggregate survey income/expenditure has been averaged over all households in the survey, rather than over only those households which reported income/expenditure in particular areas. This averaging procedure has the effect of reducing some average income/expenditure statistics to a level below that which would normally be expected (eg expenditure on rent).

Table 5.13. INCOME DISTRIBUTION OF HOUSEHOLDS, 1992-93*

Annual incomeApproximate equivalent weekly incomeNumber of householdsAverage weekly income per household

*As estimated from Household Expenditure and Income Survey.

Including nil and loss.

$$(000)$
Under 12,100†Under 232112.4151.90
12,100-17,399232 and under 334112.7281.30
17,400-20,299334 and under 389115.1357.60
20,300-25,599389 and under 491111.3437.50
25,600-32,399491 and under 621111.3554.80
32,400-40,099621 and under 769112.0692.20
40,100-49,999769 and under 942113.0852.20
49,100-60,099942 and under 1,153113.01,049.30
60,100-77,9991,153 and under 1,496112.61,307.10
78,000 or over1,496 or over112.52,180.80
        Total...1,128.0758.70

Table 5.14. AVERAGE WEEKLY EXPENDITURE FOR SELECTED FAMILY TYPES. 1992-93

Expenditure groupYoung* one person householdOlder one person householdYoung couple with no childrenOlder couple with no childrenCouple with one childCouple with two children

*Under 45.

   $   
Food48.3043.10107.3087.40119.70142.70
Housing113.3050.70221.9099.30142.3085.60
Household operations56.2052.8092.7078.40103.5092.40
Apparel13.709.2035.1021.1033.6042.00
Transport60.3035.10131.8098.30134.30117.10
Other goods45.0028.3088.0061.2079.3086.00
Other services53.4048.80110.9094.50130.60139.90
        Total expenditure390.20267.90787.70540.20743.40705.80
Expenditure groupCouple with three or more childrenOne parent with childrenFamily with othersNon-family householdsAll family types
   $  
Food155.3083.90137.20110.90101.90
Housing154.9049.90113.00138.90108.60
Household operations99.2062.2095.3081.1080.70
Apparel44.7018.2036.8040.0028.20
Transport122.0062.90143.90131.4098.80
Other goods86.3045.10101.90112.1068.50
Other services139.8060.30108.70116.00100.00
        Total expenditure802.10382.50736.60730.50586.80

Table 5.15. AVERAGE WEEKLY HOUSEHOLD EXPENDITURE. 1991-92

Expenditure group and subgroupAverage weekly household expenditure*Percentage of total expenditure

*Averages have been rounded to the nearest 5 cents.

 $percent
        Food—  
          Fruit7.901.4
          Vegetables8.101.4
          Meat13.002.2
          Poultry3.300.6
          Fish2.100.4
          Farm products, fats, oils13.102.2
          Cereals, cereal products14.502.5
          Sweet products, spreads, beverages11.301.9
          Other foodstuffs9.401.6
          Food consumed in eating places, takeaway foods19.303.3
            Total, food101.9017.4
        Housing—  
          Rent27.864.7
          Net capital outlay and related expenses-31.00-5.3
          Mortgage payments54.909.4
          Payments to local authorities13.602.3
          Property maintenance goods15.802.7
          Property maintenance services27.104.6
          Housing expenses nec0.400.1
            Total, housing108.6018.5
        Household operation—  
          Domestic fuel and power18.503.2
          Home appliances16.902.9
          Household equipment and utensils2.800.5
          Furniture8.101.4
          Furnishings2.000.3
          Floor coverings2.900.5
          Household textiles4.400.8
          Household supplies6.601.1
          Household services18.503.2
            Total, household operation80.7013.8
        Apparel—  
          Men's clothing5.200.9
          Women's clothing8.901.5
          Children's clothing2.500.4
          Clothing not otherwise classifiable4.000.7
          Clothing supplies and services2.200.4
          Men's footwear1.100.2
          Women's footwear1.600.3
          Children's footwear0.700.1
          Footwear not elsewhere classified1.700.3
          Footwear supplies and services0.20- -
            Total, apparel28.204.8
        Transportation—  
          Public transport in New Zealand5.400.9
          Overseas travel21.103.6
          Purchase of road vehicles29.405.0
          Vehicle ownership expenses40.106.8
          Private transport costs nec2.800.5
            Total, transportation98.8016.8
        Other goods—  
          Tobacco products7.601.3
          Alcohol15.102.6
          Medical goods4.300.7
          Toiletries and cosmetics4.800.8
          Personal goods5.500.9
          Pets, racehorses and livestock6.001.0
          Publications, stationery and office-type equipment11.402.0
          Leisure and recreational goods9.501.6
          Recreational vehicles1.900.3
          Goods nec2.300.4
            Total, other goods68.5011.7
        Other services—  
          Health services13.902.4
          Personal services4.100.7
          Educational and tuitional services8.401.4
          Accommodation services3.400.6
          Financial, insurance and legal services19.103.3
          Vocational services1.700.3
          Leisure services11.802.0
          Services nec2.700.5
          Expenditure nec12.202.1
          Contributions to savings22.703.9
            Total, other services100.0017.1
            Total, net expenditure586.80100.0
            Number of households surveyed 4,683

ODT

Table 5.16. HOUSEHOLD AMENITIES

Amenity in dwellingPercentage of all surveyed households*
1990-911991-921992-93

*Household Expenditure and Income Survey.

Electric range or wall oven94.395.594.9
Gas, coal or oil-fired range9.88.89.0
Microwave oven58.062.064.6
Telephone93.993.693.5
Clothes-washing machine96.296.296.0
Clothes dryer60.257.760.9
Separate refrigerator32.632.234.1
Refrigerator/freezer combination74.475.075.2
Separate deep-freeze unit56.355.455.7
Dishwashing machine22.223.624.6
Colour television (owned)90.092.193.2
Monochrome television (owned)11.911.29.7
Television (rented)7.35.64.0
No television3.33.03.6
Subscriber TV decoder (owned)...2.03.8
Subscriber TV decoder (rented)...0.1-
Video recorder (owned)62.065.668.6
Video recorder (rented)1.50.80.6
Home computer (mains operated, with keyboard)13.315.917.1
Portable electric heater83.181.581.5
Electric heater fixed in place32.0......
Electric night store heater fixed in place...8.48.3
Other electric heater fixed in place...29.529.0
Portable gas heater11.413.415.7
Gas heater fixed in place9.29.310.0
Open fire30.229.228.1
Slow-combustion fire31.331.931.4
Portable kerosene heater3.93.12.7
Wet-back fire of any kind20.119.519.1
Central heating of any kind6.04.95.5

International comparisons of standards of living

Relative standards of living cannot be compared by taking per-head incomes or expenditure alone. Environmental and other factors are increasingly recognised as components of the quality of life—a much less easily measured concept. In assessing standards of living, consideration is now given to the development of social indicators in parallel with purely economic terms of measurement. These include health and personal safety; equality of educational opportunity; employment and quality of working life; leisure satisfaction; social-welfare provisions; social opportunity and quality; social, cultural, and communication capabilities; housing and community facilities; and the physical environment.

Table 5.17. INDICATORS OF STANDARDS OF LIVING

ItemUnitYearNew ZealandUnited StatesCanadaAustraliaUnited KingdomSwedenJapan

*1986

1988

1989

§1990

1991.

Sources: OECD in Figures 1993; World Statistics in Brief (UN Statistical Pocketbook) 14th ed, 1992.

Areasq km (000)1991270.59 372.69 976.17 686.8244.8450.0377.8
Populationmillion19913.4252.727.017.357.68.6123.9
Densitypersons per sq.km199112.727.02.72.2235.519.1328.0
Vital statistics         
        Infant mortality rateper 1000 live births19918.38.9     
        Life expectancy at birthmale199072.472.073.873.973.2074.876.10
 female199078.3078.880.480.078.8080.482.10
Gross Domestic Product$ US billion at current prices and exchange rates199242.05,880.9562.3288.21,039.4245.93,698.9
GDP per capita$ US at current prices and exchange rates199112,62122,20421,53717,03817,59627,49827,132
Average annual volume changepercentage1981-911.12.12.31.8-0.9-1.21.5
Employment by sector         
        Agriculturepercentage199110.82.94.55.52.23.26.7
        Industrypercentage199123.525.323.224.227.828.234.4
        Servicespercentage199165.771.872.370.370.068.658.9
Energy         
        Total final energy consumptiontonnes of oil equivalent (million)199110.41 365.2157.958.9152.532.6305.1
        Total productiontonnes of oil equivalent (million)199112.71 636.8286.9166.3213.831.672.8
External trade         
        Imports (c.i.f.)$ US billion at current prices and exchange rates199111.2620.0149.750.9248.763.1286.0
        Exports (f.o.b.)$ US billion at current prices and exchange rates199112.2589.4144.052.6239.666.9347.5
Sectoral contributions         
        Agriculturepercentage of GDP199110.82.94.55.52.23.26.7
        Industrypercentage of GDP199123.525.323.224.227.831.334.4
        Servicespercentage of GDP199165.771.872.370.470.068.558.9
Health and education         
        Doctorsper 1000 of mean population19911.9‡2.3§2.22.0*1.4§2.91.6§
        Expenditure on healthpercentage of GDP19917.613.410.08.66.68.66.6
        Expenditure on public educationpercentage of GDP1991-5.8‡5.26.7..4.77.14.6†
        Television sets in useper 1000 inhabitants1988296.0812.0586.0217.0435.0395.0589.0
        Passenger carsper 1000 inhabitants1989549.0748.0613.0570.0449.0462.0445.0
Consumers Price Indexpercentage change from previous year19921.03.01.51.03.72.21.7
Currency (exchange rate)equivalent to $ NZ1 mid-rate as at 1 Dec 1993 1.000.550.730.830.374.6359.67

Methods of measurement of these factors are being recommended on an international basis. In these wider terms of reference New Zealand's relative position is appreciably improved.

5.2 Marriage

Marriage may be solemnised either by a celebrant or before a registrar of marriages. A licence must be obtained from a registrar before a marriage by a celebrant can be solemnised, and notice must be given by one of the parties. Marriage celebrants are approved as such and listed annually in the New Zealand Gazette. They may be members of organisations (including non-religious organisations) or other persons residing in a locality. Justices of the Peace are not necessarily marriage celebrants. People under 20 years of age, not being widowed, require the consent of parents or guardian. In case of refusal, the consent of a District Court judge may be sought.

The minimum age for marriage is 16 years; no marriage, however, is deemed to be void by reason only of an infringement of the minimum age.

Table 5.18. MARRIAGE RATES

December yearNumber of marriagesMarriage rate
Crude*General†

*Per 1,000 mean population.

Per 1,000 mean not-married population aged 16 years and over.

198724,4437.4024.96
198823,4857.0823.41
198922,7336.8322.18
199023,3416.9422.19
199123,0656.7722.33
199222,0186.4019.87

Marital status of the population

shows the usually resident New Zealand male and female populations by marital status and age group at the 1991 Census of Population and Dwellings. The numbers ‘never married’ and ‘married’ in each age group reflect the long-term changes that have taken place in the average age at marriage, the marriage rate and the age-sex distribution of the population.

Age-specific marriage rates have, in turn, been affected by the increasing number of people in each age group living in stable ‘de facto’ relationships. General improvements in life expectancy and earlier increases in divorce rates have had a continuing impact on the numbers in the ‘widowed’, ‘divorced’ and ‘remarried’ categories at all ages.

The outcome of these changes during the 1986-91 intercensal period is shown in , which shows the numbers of males and females in each marital status category and the percentage distribution of the population by marital status at the 1981 and 1986 censuses. There was a considerable increase in the percentages of both males and females ‘never married’ between the 1986 and 1991 censuses. In contrast, the corresponding percentages for the ‘married’ group showed a compensating decline. Also evident are percentage increases in the numbers 'separated‘, ’widowed‘ and ’divorced‘ during the period.

MARITAL STATUS: Females
Population over 20 years of age

Table 5.19. MARITAL STATUS BY AGE GROUP. 1991 CENSUS*

 Never marriedMarried†RemarriedSeparated‡DivorcedWidowedNot specifiedTotal

*Usually resident New Zealand population.

First marriage.

Includes persons who are still married but permanently separated.

Males        
15-19142,692396245139541,749145,002
20-24121,14611,571999722281021,857135,978
25-34110,367125,4035,73313,2847,8813993,741266,814
35-4428,950150,72321,98716,95917,2261,0923,276240,213
45-5411,778112,91719,92910,18813,9772,2472,466173,505
55-649,31293,77114,6465,4278,9945,4992,487140,136
65-746,35767,29910,9922,4154,43410,0712,037103,605
75 and over3,21329,0585,9677651,31115,1741,34756,832
        Total433 818591 14179 37450 05554 09934 64118 9601 262 085
Females        
15-19137,0611,3741512918511,341139,986
20-24103,61426,1271952,9465371651,536135,117
25-3480,640149,43910,16720,06712,8071,2513,522277,890
35-4419,734151,30523,12119,56623,7093,5372,943243,915
45-547,797110,22317,3949,66917,2268,2472,487173,046
55-646,05184,30311,4094,3809,57020,8742,334138,915
65-746,50155,0208,7901,8365,15743,0352,040122,379
75 and over7,48518,2853,3215941,97463,8161,47696,948
        Total368 880596 06774 40659 18771 001140 97617 6791 328 196
        Total802 7011 187 208153 780109 245125 100175 61436 6392 590 287

MARRIAGE
Annual rates per 1,000 mean population

Table 5.20. DISTRIBUTION OF POPULATION BY MARITAL STATUS*

Marital status1986 Census1991 CensusIntercensal increase or decrease
NumberPercentage distributionNumberPercentage distributionNumberPercentage

*Usually resident New Zealand population.

First marriage.

Includes persons who are still married but permanently separated.

Males      
Never married396,87933.3433,81834.936,9399.3
Married†609,15051.2591,14147.6-18 009-3.0
Remarried69,4115.879,3746.49,96314.4
Separated‡41,4273.550,0554.08,62820.8
Divorced42,0543.554,0994.312,04528.6
Widowed31,8032.734,6412.82,8388.9
Not specified19,668...18,960...-708-3.6
        Total1 210 389100.01 262 085100.051 6964.3
Females      
Never married324,63326.2368,88028.144,24713.6
Married†613,70149.5596,06745.5-17 634-2.9
Remarried66,1265.374,4065.78,28012.5
Separated‡48,1323.959,1874.511,05523.0
Divorced54,7984.471,0015.416,20330.0
Widowed132,51610.7140,97610.88,4606.4
Not specified18,006...17,679...-327-1.8
        Total1 257 912100.01 328 196100.070 2845.6

shows the female and male populations living in de facto relationships, by age group, irrespective of marital status. The term ‘de facto’ relates to an arrangement where two persons who are not legally married to each other live together in a relationship as a couple.

At the 1991 Census 161,856 people were living in de facto relationships, an increase of 46,828, or 40.7 percent since 1986. Of the people in this category, 81.4 percent of males and 81.0 percent of females were between the ages of 20 and 44 years. The age group with the highest number of de facto relationships is clearly the 25 to 34 year old group.

Table 5.21. DE FACTO RELATIONSHIPS*

Age group (years)1986 Census*1991 Census*Intercensal increase or decrease
NumberPercentage distributionNumberPercentage distributionNumberPercentage

*Usually resident New Zealand population.

Males      
15-191,8993.32,5623.266334.9
20-2413,12522.816,26020.13,13523.9
25-3422,30538.832,73940.410,43446.8
35-4411,57120.116,95920.95,38846.6
45-545,3889.48,0619.92,67349.6
55-642,4454.23,2674.082233.6
65-746421.19991.235755.6
75 and over1710.32670.39656.1
        Total57 549100.081 111100.023 56240.9
Females      
15-195,79610.16,8618.51,06518.4
20-2416,77329.221,50726.64,73428.2
25-3419,82134.529,51736.69,69648.9
35-449,55216.614,37917.84,82750.5
45-543,8016.66,0547.52,25359.3
55-641,2302.11,6682.143835.6
65-744020.75850.718345.5
75 and over1080.21800.27266.7
        Total57 480100.080 745100.023 26540.5

Bikers‘ wedding, Christchurch.

Age at marriage

In 1992, one bride in every 27 was under 20 years of age. Bridegrooms were usually older than their brides; only one in every 113 was under 20 years of age. Of the people married in 1992, 1,013 or 2.3 percent were under 20 years of age; 12,446 or 28.3 percent were aged 20-24 years; 13,210 or 30.0 percent were 25-29 years; 10,913 or 24.8 percent were 30-39 years; and 6,454 or 14.7 percent were 40 years of age and over.

Table 5.22. AGES OF PERSONS MARRIED, 1992

Age of bridegroom, in yearsAge of bride, in yearsTotal bridegrooms
Under 2020-2425-2930-3435-3940-4445 and over
Under 2091841432--194
20-245083,512748130271034,938
25-291632,8652,9757151264276,893
30-34457871,7471,20132575344,214
35-397172534631420157631,984
40-445511963233082811181,282
45 and over-371031913135061,3632,513
        Total brides8197 5086 31731941 5211 0711 58822 018

MARITAL STATUS: Males
Population over 20 years of age

AGE AT MARRIAGE
Average age at first marriage for males and females

gives the average ages at marriage for the years 1985 to 1992, and these point to a steady trend toward later marriages. New Zealand men and women marrying for the first time in 1992 were on average 1.3 years older than their counterparts in 1985. Also, with an average age of 25.5 years at first marriage brides in 1992 were 2.0 years younger than their grooms (average age 27.5 years).

Table 5.23. MEAN AGE OF PERSONS MARRIED

YearBridegroomsBrides
BachelorsDivorcedWidowersSpinstersDivorcedWidows
   age in years   
198526.4040.1559.6924.0336.3952.34
198626.5740.7059.3224.3236.9652.39
198726.8940.9159.3224.6637.3152.36
198827.2140.9059.6624.9237.1353.31
198926.9140.7259.5524.6937.2952.27
199027.2241.1358.5524.9037.2152.80
199127.4341.3159.4425.1937.4452.22
199227.5241.7060.0325.4637.7352.94

Marriage guidance

Marriage Guidance New Zealand (MGNZ) has 30 local offices throughout New Zealand. Each one is chartered to the national organisation. The counselling and education work of Marriage Guidance is funded largely through a fee for service contract with the Department of Social Welfare. MGNZ aims to develop positive relationships between partners and within families whether or not they live together. Counselling referrals come from the Family Court, Department of Social Welfare, other professionals and social service agencies. About 46 percent of clients self-refer. Education programmes are conducted by Marriage Guidance tutors who organise courses such as “Becoming Partners”, “Making it Alone” for those separated and “Parenting/Step Parenting”.

Te Korowai Aroha—Aotearoa Inc. Te Korowai Aroha—Aotearoa Inc is a professional Maori counselling agency established three years ago. Te Korowai Aroha provides quality counselling, education and training to whanau, hapu, iwi and Maori communities.

Whanau Whanaui is the Executive Committee for Te Korowai Aroha—Aotearoa. Its role is to set policy and direction for Te Korowai Aroha. Komiti Putea, a sub committee of Whanau Whanaui, develops financial policy for Whanau Whanaui. Komiti Whakapumau Take is the professional standards and practise committee, which monitors the training and work of Te Korowai Aroha—Aotearoa to ensure that the delivery service is true to the philosophy. The organisation is driven by the philosophy that strives to maintain the mana and dignity of tauira (individual) and whanau (family).

There are 10 iwi whanau established in Aotearoa. They are: Nga Puhi, Waikato, Te Arawa, Ngati Awa, Tairawhiti, Te Whanau a Apanui, Tane-nui-a-Rangi, Whitireia and Whanganui. Each iwi whanau is affiliated to Te Korowai Aroha—Aotearoa, however they are autonomous entities.

Dissolution of marriage

There is only one ground on which an order dissolving a marriage can be made—that is, that the marriage has broken down irreconcilably. The Family Proceedings Act 1980, which provides the legal framework for the dissolution of marriage, also makes provision for orders declaring a marriage void and for declarations of presumption of death. To establish that a marriage has broken down irreconcilably, the parties must be living apart, and have done so for the previous two years.

Since 1981, applications for dissolution of marriage have been made to Family Courts, which are less formal and have more simplified procedures than other courts. The following are the main pieces of legislation in the area:

Matrimonial Property Act 1976. This Act provides for the 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 Act 1968. This Act requires applications to be heard in a Family Court and makes provision for a Judge to appoint a lawyer to represent the interests of any children involved. The concept emphasised is 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 defined by the Act, and the court has the power to require medical, psychiatric, or psychological reports on children. The Act also gives Family Courts the power to call witnesses.

Social Security Act 1964. This Act contains a scheme known as the Liable Parent Contribution Scheme, which aims to provide a fair and uniform method of determining the contributions a liable parent must make to support his or her children if the other parent is receiving a domestic purposes benefit. See section 6.2, Income support.

The Child Support Act 1992 introduced a new regime for assessing non-custodial parental support of children. It replaces, from 1 July 1992, the Liable Parent Contribution Scheme which was contained in the Social Security Act 1964 and administered by the Department of Social Welfare.

The Inland Revenue Department's Child Support Agency assesses the amount of child support to be paid by parents according to a specific formula and collects and pays child support to the Crown when the custodial parents are social welfare beneficiaries, and to custodial parents not receiving social welfare benefits.

In addition, the agency collects and pays court-ordered spousal maintenance to qualifying spouses and maintenance in respect of spouses and/or children which has been agreed on voluntarily, if and when an application is made to the agency.

MARRIAGE AND DIVORCE

Table 5.24. DISSOLUTION ORDERS GRANTED

Ground or evidence presented1989199019911992
        Applications filed for dissolution of marriage8,5559,0369,1409,114
        Evidence of irreconcilable breakdown—    
          Separation order538494447360
          Written separation agreement3,5083,5963,7043,787
          Verbal separation agreement3,0913,4993,5763,519
          Lived apart, no agreement or order1,4111,4421,4131,448
          Total, irreconcilable breakdown8 5489 0319 1409 114
        Other dissolution orders75--
          Total, dissolution orders8 5559 0369 1409 114

Table 5.25. DURATION OF MARRIAGES ENDING IN DISSOLUTION BY AGES OF HUSBANDS AND WIVES AT MARRIAGE, 1992

Duration of marriage (in years)*Age (in years) at marriageTotal
Under 2020-2425-2930-3435-3940-4445 and over (including not stated)

*Duration of marriage calculated from both month and year of dissolution.

Husbands (all petitions and applications)        
Under 53638033915594441151,163
5-9651,024728317171981622,565
10-141028104251717448741,704
15-19135714270924322291,305
20 and over2291,4684851114123202,377
        Total5674 3962 2478464232354009 114
Wives (all petitions and applications)        
Under 51415142221116639701,163
5-93541,23649821612462752,565
10-144137882641234929381,704
15-19492564148462413181,305
20 and over8831,20520547187122,377
        Total2 2834 3071 3375432811502139 114

5.3 Human rights, immigration and citizenship

Human Rights Commission

The Human Rights Commission has the general role of promoting the advancement of human rights in New Zealand in accordance with the United Nations International Covenants on Human Rights. It is made up of the Human Rights Commissioner (the chairperson), the Race Relations Conciliator, the Proceedings Commissioner, the Privacy Commissioner and up to three other commissioners. These are all appointed by the Governor-General on the recommendation of the Minister of Justice.

The commission monitors legislation, conducts inquiries and investigates complaints of unlawful discrimination prohibited by the Human Rights Act 1993. If necessary complaints can be taken to the Complaints Review Tribunal (formerly the Equal Opportunities Tribunal) for adjudication of proceedings alleging discriminatory practice. The commission encourages respect for the observance of human rights through speaking engagements, newsletters, hui, seminars and publication of educational material. It also has the responsibility of reporting to the Prime Minister on matters with human rights implications.

Changes in human rights legislation, in the shape of the Human Rights Act 1993, extended the grounds of unlawful discrimination to gender, marital status, age, religious or ethical belief, disability, political opinion, employment status, family status and sexual orientation.

Office of the Race Relations Conciliator

The Race Relations Act 1971 affirms and promotes 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 Human Rights Act 1993 extends the jurisdiction of the Race Relations Conciliator to the areas of education, racial harassment, indirect discrimination and inciting racial disharmony. The conciliator also had the right to report to the Prime Minister on matters affecting race relations, receive and invite representations from the public, make public statements and other related functions. A breach of any of the provisions may be the subject of an investigation by the Office of the Race Relations Conciliator.

A major role for the office of the conciliator is in the field of education, and in resolving situations where there has been misunderstanding due to different racial backgrounds or concepts on the part of the parties. 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 race relations offices in Auckland, Wellington, and Christchurch.

Women's issues

As New Zealand moves into the second century of women having the vote there is evidence of considerable progress in the status of women.

Women have, in large part, achieved legal equality with men. But legal equality, statutory safeguards for equal opportunity and efforts towards greater enforcement of the law have been of limited effectiveness throughout the world in reducing gender inequality.

The failure of legal instruments reveals the causes of inequalities are more widespread and much deeper. These causes lie in our society's pervasive attitudes and values which are in turn reinforced by women's lack of participation in decision-making their disproportionate share of unpaid caring work, their lack of control over their lives and the many acts of discrimination women face. Changing this situation requires changes in the role of men as well as women. The Government has a part to play and so it is necessary that all policy development, legislation and service delivery responds to gender differences.

There are a number of non-governmental organisations that work towards improving the status of women in New Zealand society. These group's include women's organisations that focus on one issue of concern to women and those that are work-based.

The Ministry of Women's Affairs has as its primary role the provision of gender-specific advice to the government on public policy issues. The ministry's particular strength lies in its ability to provide practical policy responses which take account of women's lives and responsibilities. The ministry, an autonomous department of state, has three units—Policy, Te Ohu Whakatupu and a Corporate Services Unit.

The Policy Unit provides advice to the minister on issues which impact on women across a broad spectrum of areas. The unit's work also includes consultation with women, publications and information services on women's issues, and ministerial services, including work on specific projects.

The ministry's policy advice in 1993/94 will cover the five groupings of:

  • Work, education and economic development.

  • Income, wealth and family issues.

  • Health and disability support services.

  • Violence against women.

  • Maori policy.

Te Ohu Whakatupu advances Maori women's interests in all aspects of the ministry's work and provides advice to the minister and government agencies on policies that have particular impact on Maori Women. Its work also includes consultation with Maori women, publications and information services on Maori women's issues, and ministerial services, including work on specific projects.

The Corporate Services Unit provides a range of operational outputs, such as management of the specialist library and the records section, personnel and industrial relations and administrative support. The unit manages the ministry's publications programme, media liaison, information services, the Nominations Service and the consultation and liaison programme. Liaison with international agencies is also the responsibility of this unit.

Issues affecting women that the ministry has recently worked on include:

Pornography. On 26 August 1993, the Films, Videos and Publications Classification Act was passed. The Act draws the three existing censorship authorities into one body to provide greater consistency between different media. The Act sets out clearer guidelines for censors to follow and introduces a possession offence for material that has been or would be banned.

Women in business. In May 1993, the ministry organised a ‘Think Export’ conference to promote the initiatives and achievements of New Zealand women exporters and to assist other women who are ready and waiting to utilise their skills within the exporting sector.

Runanga Kuia. The Runanga Kuia hui, held in March at Takapuwahia Marae, was attended by 50 kuia from throughout the country. All aspects of policy that affect the lives of Maori women and their families were discussed and recommendations made to government.

Pacific Islands‘ women. The Policy Unit began work on identifying key issues for Pacific Island women living in New Zealand. In May 1993, a consultation was held with 43 Pacific Island women from the six main ethnic groups to help identify priority issues for Pacific Island women.

Otago Women's Club members celebrate the club's 79th birthday.

International liaison. The ministry is responsible for reporting on the status of women in New Zealand to the United Nations and other international bodies. Recent reports prepared have been:

  • Preparation for the Fourth United Nations World Conference on Women in Beijing in September 1995. The conference will examine women's strengths and contributions and will draw attention to the forms of discrimination that women are still facing world-wide. It will be an opportunity to re-examine strategies to improve the status of women and focus energies on tackling those areas where change is most needed. A separate non-government forum will be held alongside the official meeting of government representatives. New Zealand's report has been written in close consultation with non-government organisations.

  • Preparation of New Zealand's second periodic report to the Committee on the Elimination of Discrimination Against Women. The report Status of New Zealand Women 1992 has been published and was presented to the committee in January 1994.

Many organisations and other government departments work in the area of women's issues. Following are initiatives undertaken on some of the major issues affecting women.

Education. There is now an expectation of educators to create an environment in the education system which recognises and broadens the aspirations and achievements of women.

The funding structure of the tertiary education system is monitored by the Ministry of Education to ensure female students are not disadvantaged in gaining access to learning. Additional funding is made available for programmes which encourage access and participation by women. The policy division of the Ministry of Education includes a Girls and Women Section, which develops policy relating to female learning. Also of significance to women is the improvement in quality and accessibility of early childhood care and education.

Policy advice provided to the Minister included specific areas of Maori education such as kohanga reo and kura kaupapa Maori. In the climate of education reform, there has been a focus on the particular position of Maori females in the mainstream system. Curriculum content, access to early childhood education, assessment, school leaving age, post-school training, qualifications, and community participation are some of the areas for which there are serious implications for Maori girls and women.

Paid workforce. The National Advisory Council on the Employment of Women (NACEW) is undertaking a major research project on the position of women in the labour market. Topics covered include occupational segregation, wages and conditions, and assessing how economic and social changes and policies have affected various groups of women.

The Equal Employment Opportunities (EEO) Trust was established in 1991 by the Government and the private sector, with initial funding from 30 foundation member companies and the Government. The trust is a membership-based organisation with 116 members as at August 1993. The trust aims to promote to New Zealand employers the implementation of EEO principles and EEO best practice in the workplace as a means of improving their effectiveness, efficiency and competitiveness through the successful management of diversity.

The trust will commission, monitor and evaluate research on EEO in New Zealand. It is staffed by an executive director, an administrator and database manager who are based in Auckland. The board of trustees has public and private sector representatives. The EEO trust liaises closely with individuals and groups with expertise and interest in EEO, including EEO designated group networks, employers’ associations, EEO Practitioners‘ Association, State Services Association EEO Unit and the Human Rights Commission.

The trust has a national database of EEO resources. This contains computerised listings of materials including booklets, videos, training programmes, cultural advisers, networks, trainers, consultants and people with specific expertise in EEO issues. The Government's EEO Contestable Fund supported the database development and the production of two booklets from the trust. Making the most of a diverse workforce—an employer's guide to EEO was published in 1992 and a further publication on EEO success stories were published in 1993. The trust publishes a quarterly newsletter.

Valuing unpaid work. The Department of Statistics, with the sponsorship of nine other government agencies, conducted a pilot time use survey in August 1990. Data from this survey has been used to produce some indicative estimates of the value of unpaid work in New Zealand. Unpaid work includes all the cooking, cleaning, laundry, shopping, gardening, home maintenance and childcare done for the household, as well as voluntary work and help given to others in the community. Depending on the valuation method used, unpaid work is estimated to have a market valuation of between 30 and 68 percent of Gross Domestic Product (GDP). About 90 percent of total unpaid work is performed in the home, the remaining 10 percent being formal or informal community work. Women perform about two-thirds of unpaid work done as a main activity.

Violence and pornography. In the 1992-93 financial year, 54 women's refuges received $2.88 million and 62 rape/sexual abuse support services received $3.94 million from the Department of Social Welfare's programmes for services for victims of violence against women.

In October 1990 the Minister of Justice released a draft proposal for new censorship and pornography legislation. The Ministry of Women's Affairs made both written and oral submissions on this proposal. The ministry hosted a consultation day for women's organisations on the proposed bill. The purpose of the consultation was to provide information and to seek the views held by these organisations.

The Films, Videos and Publications Classification Act was enacted in 1993 and expressly provides that a publication that promotes or supports the use of violence to compel a person to participate in sexual conduct is deemed to be objectionable and therefore prohibited.

Health. In response to the recommendations in the Report of the Cervical Cancer Inquiry (1988) a national cervical screening programme was established, guidelines for informed consent were published and draft legislation to establish a Health Commissioner and patient advocates were introduced to the House.

The aim of the national cervical screening programme is to reduce the incidence of, and death rate associated with, cervical cancer. The initial focus of the programme is on those women who have never had a smear or who have not had a smear in more than three years. Strategies have been developed to reach women in those priority groups whose members are identified as having lower screening coverage and higher rates of cervical cancer. These include women 35 years and over, Maori women and Pacific Island women.

Over the period 1989–1992, the national cervical screening programme has: developed a national policy on cervical screening; treatment protocols for the management of abnormal smears; training guidelines and standards of competency for smeartakers; established a national cytology register; a national media campaign; and monitored waiting times for colposcopy services.

Area health boards are currently responsible for implementing screening services and maintaining the national cytology register in their regions. Provision of screening services will become the responsibility of Regional Health Authorities at 1 July 1993.

The Health Reforms Bill 1992 contains legislation to change the National Cytology Register to a voluntary opt-off register. This change has the support of a broad number of health professional and women's groups and is designed to improve the population coverage of the national cervical screening programme.

A significant initiative of the New Zealand Council of Maori Nurses is the inclusion of a Maori component to nursing training and assessment which will comprise 20 percent of the State Nursing Examination from 1992.

Religious profession

The 1991 Census of Population and Dwellings showed a continued decline in the percentage of the resident population identifying with the four traditional major religious denominations: Anglican, Presbyterian, Catholic and Methodist. From 69.1 percent at the 1976 Census the share of the population in these categories fell to 63.6 percent at the 1986 Census and then to 57.6 percent at the 1991 Census. Of the four, Catholic was the only denomination that increased in numbers between the 1986 and 1991 censuses.

Of the religions or religious denominations with an adherence of 20,000 or more, the fastest growing were ‘Mormon’ with an intercensal increase of 29.3 percent, and ‘Ratana’ with an intercensal increase of 19.8 percent. The number of people classifying themselves only as ‘Christian’ also increased by a significant 72.4 percent. also shows a considerable increase in the number of people classifying themselves as ‘Hindu’ or ‘Buddhist’, both categories having doubled since 1986.

A stonemason works on the carved faces of First Church, Dunedin.

A significant trend apparent in is the continued increase in the number of people reporting themselves as having no religion. This group increased from 533,766 in 1986 to 666,609 in 1991, a rise of 132,843, or 24.9 percent.

Table 5.26. RELIGIOUS PROFESSIONS*

Religious profession1986 Census1991 CensusIntercensal percentage change
NumberPercentageNumberPercentage

*Usually resident New Zealand population.

Anglican791,89824.7732,04822.1-7.6
Presbyterian587,67618.3540,67516.3-8.0
Catholic496,38915.5498,61215.00.4
Methodist153,2494.8138,7054.2-9.5
Christian (nod)45,3541.478,1952.472.4
Baptist68,0162.170,1552.13.1
Mormon (Latter Day Saints)37,1431.248,0091.429.3
Ratana39,7291.247,5951.419.8
Brethren19,7550.620,3370.62.9
Salvation Army16,8210.519,9920.618.9
Jehovah's Witness16,3770.519,1820.617.1
Pentecostal15,7140.518,7650.619.4
Hindu8,1480.317,6610.5116.8
Assemblies of God14,9220.517,2260.515.4
Seventh Day Adventist12,0480.413,0050.47.9
Buddhist6,5160.212,7650.495.9
Other specified96,1923.0106,3923.210.6
No religion533,79016.7666,60920.124.9
Object244,8637.6251,7097.62.8
Not specified58,686-56,289--4.1
        Total3 263 286100.03 373 926100.03.4

MAJOR RELIGIONS
Stated religious beliefs

Ethnicity

The 1991 Census of Population and Dwellings asked respondents to identify which ethnic group or groups they belonged to, on a self-determination basis. The question was intended to provide information on a person's cultural affiliation rather than their racial descent, which was the case at the 1981 Census.

Although the ethnic question included in the 1986 Census asked respondents to indicate their ‘Ethnic origin’ rather than their ‘Ethnic group’, the ethnic data from the 1986 and 1991 Censuses is generally comparable.

Responses from the 1991 Census have been coded and tabulated using the recently completed New Zealand Standard Classification of Ethnicity (NZSCE).

Table 5.27. NEW ZEALAND'S ETHNIC GROUPS

Ethnic group1986 Census1991 CensusIntercensal percentage change
NumberPercentage of totalNumberPercentage of total

*May include combinations of European groups, eg NZ European and/or British and/or Dutch, etc.

All groups not included above. May include combinations of other groups, eg Japanese and/or Korean and/or Middle Eastern groups.

Single ethnic group—     
        European*2,651,59582.22,658,73879.50.3
        New Zealand Maori295,3179.2323,4939.79.5
        Samoan50,1991.668,5652.036.6
        Cook Island Maori23,9730.726,9250.812.3
         Tongan9,2250.318,2640.598.0
        Niuean8,4720.39,4290.311.3
        Tokolauan2,3160.12,8020.121.0
        Fijian1,8750.12,7600.147.2
Other Pacific Island group813- -1,413- -73.8
        Total, single Pacific Island group96 8733.0130 1583.934.4
Chinese19,5660.637,6891.192.6
Indian12,1260.426,9790.8122.5
Other single ethnic groups†12,0780.425,9260.8114.7
        Total, single ethnic groups3 087 55295.73 202 98095.73.7
Two or more combinations—European-with New Zealand Maori94,8962.993,9872.8-1.0
        European and New Zealand Maori-with any one of Pacific Island group3,7740.14,6140.122.3
-Chinese, Indian, other2,0580.11,656- --19.5
        European—with any one or two of Pacific Island group17,0430.516,6020.5-2.6
        European—and any one of Pacific Island group with any one of Chinese, Indian, other873- -624- --28.5
        European—with any one or two of Chinese, Indian, other6,8520.27,8360.214.4
        NZ Maori—with any one or two of Pacific Island group6,7770.29,0750.333.9
        NZ Maori—and any one of Pacific Island group-with any one of Chinese, Indian, other372- -447- -20.2
        NZ Maori—with any one or two of Chinese, Indian, other1,581- -1,575- --0.4
        Any two or three of Pacific Island group2,9010.13,8730.133.5
        Any one or two of Pacific Island group-with any one or two of Chinese, Indian, other1,6770.11,6770.1-
        Any two or three of Chinese, Indian, other357- -867- -142.9
        Total, two or more combinations139 1674.3142 8364.32.6
Not specified36,564-28,113--23.1
        Total3 263 283100.03 373 929100.03.4

compares the major ethnic groups of the resident New Zealand population at the 1986 and 1991 Censuses. The most obvious feature of the table is that at both the 1986 and 1991 Censuses the vast majority of New Zealand's population (95.7 percent) indicated that they belonged to only one ethnic group.

Cambodian children learn traditions and language at Sunday classes.

There were significant differences in the rate of population increase recorded by these single ethnic groups, with increases ranging from 0.3 percent for the European group to 122.5 percent for the Indian group. The single ethnic groups experiencing the greatest growth were Tongans, Chinese, and Indians. The European group's share of the population decreased from 82.2 at the 1986 Census to 79.5 at the 1991 Census. This was offset by increases in the proportion of the population in the other single ethnic group categories. Of the population belonging to two or more ethnic groups, 78.0 percent reported New Zealand Maori as one of those groups, while 87.7 percent reported a European ethnic group.

Changes in the size of populations belonging to the different ethnic group categories, and in their shares of the total population over the 1986–1991 intercensal period reflect the different levels of natural increase, the size and direction of external migration flows, intermarriage between ethnic groups, and inter-ethnic mobility.

gives a comparison of the age structure of New Zealand's major ethnic groups.

Table 5.28. COMPARISON OF AGE STRUCTURE OF MAJOR ETHNIC GROUPS, 1991 CENSUS*

Age group (years)Percentage of population in age group
European†New Zealand Maori‡Pacific Island§Chinese†Indian†Other◊

*Usually resident New Zealand population.

†Persons of single ethnic group.

‡Persons who specified “New Zealand Maori” as either their sole ethnic group or as one of several ethnic groups.

§Persons who specified a Pacific Island ethnic group as either their sole ethnic group or as one of several ethnic groups (except where one group is “New Zealand Maori”)

◊Includes persons of “other” single ethnic group and persons of two and three ethnic groups (except where one group is “New Zealand Maori”.)

0–46.914.313.96.98.711.2
5–1413.223.221.815.416.819.7
15–197.911.510.39.28.28.3
20–247.69.910.48.910.78.6
25–3415.616.918.023.525.224.5
35–4414.910.812.418.416.916.3
45–5915.79.29.111.49.97.9
60–644.81.81.72.21.41.3
65–747.91.81.82.31.61.5
75–844.40.60.51.20.50.6
85 and over1.10.10.10.40.10.1
        Total100.0100.0100.0100.0100.0100.0

Country of birth

Since 1945 the percentage of the resident population born in New Zealand has remained relatively stable. shows that 85.1 percent of the population in 1986 and 84.2 percent of the population in 1991 were New Zealand born. The small decline between the 1986 and 1991 censuses was a consequence of an increased net inflow of overseas-born migrants—especially from Asia and the Pacific Islands. Also evident was the reduced importance of the British Isles as a source of new settlers.

The most significant increase was in the number of New Zealand residents born in Asia. The number of persons born in China increased by 86.5 percent during the intercensal period, while those born in other Asian countries more than doubled, with significant increases being recorded in the number of immigrants from Hong Kong, Malaysia, the Philippines, Taiwan and Thailand.

BIRTHPLACES
Country of birth of population

Table 5.29. COUNTRY OF BIRTH OF POPULATION*

Country of birth1986 Census1991 Census
NumberPercentage of specified casesNumberPercentage of specified casesPercentage intercensal change

*Usually resident New Zealand population.

New Zealand2,759,17885.12,812,03284.21.9
Australia47,3341.548,7381.53.0
Pacific Islands72,8102.298,0372.934.6
British Isles256,7627.9239,1577.2-6.5
Netherlands24,4890.824,2760.7-0.9
Germany4,4790.15,3940.220.4
United States of America7,3620.28,4510.314.8
Canada6,4140.26,6990.24.4
India6,5700.29,4590.344.0
China4,9440.29,2220.386.5
Other Asia22,3200.746,0381.4106.3
South Africa4,3200.15,6550.230.9
Other countries25,7490.826,2110.81.8
Not specified21,555- -34,557- -60.3
        Total3 263 383100.03 373 926100.03.4

Citizenship

The current legislation of New Zealand citizenship is the Citizenship Act 1977, and the Citizenship (Western Samoa) Act 1982 together with the Citizenship Regulations 1978.

Under the Citizenship Act 1977, New Zealand citizenship may be established in the following ways: by birth in New Zealand; by descent (i.e., birth outside New Zealand); or by grant of citizenship.

Citizens under the British Nationality and New Zealand Citizenship Act 1948 (whether by birth, descent, naturalisation, registration or under transitional provisions) at 31 December 1977, retain their status under the 1977 Act. This Act also introduced citizenship by descent through the female line, and citizenship by recognition of adoption and paternity.

For people (other than spouses of New Zealand citizens or those under 18 years) who want New Zealand citizenship, the eligibility criteria are that they must:

  • Have resided legally in New Zealand for the three years immediately preceding the date of application.

  • Be entitled in the terms of the Immigration Act 1987 to reside in New Zealand permanently.

  • Be of full capacity.

  • Be of good character.

  • Have sufficient knowledge of the English language and of the responsibilities and privileges attaching to New Zealand citizenship.

  • 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.

Citizenship can be granted also to those who marry New Zealand citizens, and to their children. Sometimes, citizenship can be granted in cases of hardship, statelessness or where the relevant parent was a citizen by descent only.

The Citizenship (Western Samoa) Act 1982 provides primarily for the grant of citizenship to any person who can establish that he or she is a Western Samoan citizen or that he or she comes within the specified degrees of association with Western Samoa; and who either:

CITIZENSHIP
Number of applications granted

  1. Was in New Zealand at any time on 14 September 1982; or

  2. 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 1987.

Adults who obtain 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, the Citizenship Act treats citizens of countries other than Commonwealth on exactly the same basis as citizens of Commonwealth countries.

New Zealand citizens can have their citizenship taken away if they:

  • Choose a foreign nationality by any formal act other than by marriage and have acted in a manner which is contrary to the interests of New Zealand; or

  • Choose to exercise any of the privileges or perform any of the duties of another nationality or citizenship which is contrary to the interests of New Zealand; or

  • Have obtained citizenship by fraud, false representation, mistake, or wilful concealment of relevant information.

Sometimes people can renounce New Zealand citizenship, eg, when required to by countries such as Germany, which won't accept dual citizenship. However, New Zealand citizenship must be renounced formally. This is because the New Zealand Government insists that New Zealand citizens should not become stateless during changes of citizenship. To protect citizens, government requires proof of citizenship in another country before giving approval to renounce New Zealand citizenship.

A total of 14,343 people were granted citizenship for the year ended 31 March 1993, compared with 13,383 in the previous year.

An impending increase in the price of citizenship and passports causes queues.

Immigration

The Immigration Amendment Act 1991 came into force on 18 November 1991. As well as the statutory changes the new Act brought, there were major changes to the polices under which the majority of immigration decisions are made.

The philosophy behind these changes is that immigration should contribute to the economic and social well being of the resident population. It has been shown immigration is an area capable of providing significant social and economic benefits as well as providing economic and lifestyle opportunities to those who choose to live here. This is especially so when migrants who are chosen to come to New Zealand have qualifications, experience and assets to establish themselves.

The main thrust of the changes has been to the permanent residence policy. Replacing the Occupational Priority List, the Non-Occupational Priority List and the Worthwhile Skills categories, is the General Category. The General Category is essentially a points system under which applicants score points for employability, age and settlement factors. While a firm offer of employment is worth a number of points it is no longer compulsory. In ranking applicants by the points scored, New Zealand ensures selection of the highest quality migrants from the pool.

The Business Investment Policy (BIP) has been replaced by the Business Investment Category. The Business Investment Category targets migrants with business skills and substantial capital funds to add to the national pool of skills and investment capital, thus broadening the nation's opportunities.

The other grounds for entry into New Zealand on a permanent basis have changed very little. The Family category has remained the same, while criteria for an application on humanitarian grounds have been clearly defined by the translation of the old requirements into four clear points.

Changes to the Immigration Act also established the Residence Appeal Authority, an independent tribunal which reviews residence application decisions. People whose applications have been declined may appeal to the authority on the grounds that either the decision was not consistent with Government policy; or their circumstances are such that an exception to policy should be considered.

There have also been changes to compliance mechanisms. Removal warrants have been replaced by Removal Orders. Removal orders may be served on those who are in New Zealand unlawfully, directly without court proceedings. The Removal Review Authority an independent tribunal, considers appeals against removal orders. People may appeal to the authority on humanitarian or factual grounds to have a removal order cancelled or have the period of time the removal order prevents them from returning to New Zealand reduced. There is a time limit of 42 days from the time of the serving of the order in which to appeal. The appellant/s may leave within the 42 days which would result in the order being cancelled and no penalty incurred. If, however, the appeal is declined the person/s will be subject to removal with penalties incurred.

Production of travel documents on arrival. All travellers, including New Zealand citizens, who arrive in New Zealand are required to produce a valid passport or some other acceptable recognised travel document.

IMMIGRANTS APPROVED FOR RESIDENCE BY COUNTRY OF CITIZENSHIP

CitizenshipResidence Permits*
Year ended 30 June
1992/931991/92

*Issued in New Zealand.

Afghanistan315
Algeria2-
American Samoa27
Argentina86
Austria1632
Bahrain61
Bangladesh1715
Barbados-1
Belgium74
Brazil1812
Brunei-1
Bulgaria3025
Cambodia2218
Canada106100
Chile1512
China, People's Republic1,0621,299
Columbia48
Comoros1-
Costa Rica1-
Croatia14-
Cyprus1-
Czechoslovakia89
Denmark2025
Ecuador-1
Egypt77
Ethiopia1-
Fiji499565
Finland813
France5839
French Polynesia21
Georgia2-
Germany166144
Ghana29-
Great Britain1,3531,697
Greece1410
Guyana14
Hong Kong152310
Honduras1-
Hungary2814
Iceland35
India347435
Indonesia2654
Iran71205
Iraq1828
Ireland, Republic of7389
Israel2319
Italy1612
Jamaica31
Japan194165
Jordan8-
Kenya104
Kiribati68
Korea (North)17
Korea (South)292112
Laos, PDR46
Latvia2-
Lebanon1347
Luxembourg-1
Libya1-
Malaysia255498
Macau3-
Malta12
Marshall Islands1-
Mauritius1-
Mali6-
Mexico310
Monaco-1
Morocco2-
Myanmar (Burma)817
Nauru1-
Nepal37
Netherlands4258
New Caledonia1-
Niger3-
Nigeria42
Nicaragua1-
Norway46
Pakistan3453
Papua New Guinca117
Paraguay1-
Peru1746
Philippines277399
Poland3334
Portugal712
Romania135
Russia44-
San Merino1-
Saudi Arabia244
Sierra Leone2-
Singapore4449
Slovenia2-
Somalia-114
Solomon Islands42
South Africa493133
Spain128
Sri Lanka143187
Sweden1855
Switzerland5976
Sudan2-
Surinam2-
Syria4-
Swaziland5-
Taiwan7654
Tanzania--
Thailand112150
Tokelau5-
Tonga1,308618
Togo3-
Trinidad and Tobago12
Tunisia7-
Turkey618
Tuvalu2515
USSR-15
Ukraine3-
USA330383
Uruguay-1
Vanuatu4-
Venezuela13
Vietnam6174
Western Samoa1,3131,140
Yugoslavia11542
Zambia2-
Zimbabwe1716
Others42181
        Total9,9539,990

Permits to be in New Zealand. Except for New Zealand citizens and certain other categories of travellers specified under the Immigration Act 1987, everyone entering New Zealand is required to obtain a permit to be in New Zealand. Anyone intending to reside, work, study or undergo medical treatment in New Zealand should seek a visa before setting out on their journey.

Visitors. Visitor permits for people wishing to make tourist or business visits to New Zealand are generally granted for an initial period of three months and may be extended up to a further six months. Visitors from a number of countries do not require visas provided the purpose of entry is for tourism, business, or to visit family and friends, and the traveller has outward tickets and adequate means of support.

Returning residents. Residence and other permits are deemed to expire when the holders leave New Zealand. Non-New Zealand citizens granted residence and who wish to preserve this status on return from overseas travel require a Returning Resident's Visa. This is normally current for a period of four years (and may be replaced) and entitles the holder to leave and return to New Zealand on any number of occasions while the visa remains valid.

Australian citizens and residents. Australian citizens travelling on Australian passports do not require visas, are exempt from New Zealand permit requirements (but not from other provisions of the Immigration Act) and may stay indefinitely in New Zealand. Australian residents with current Australian resident return visas do not require visas to come to New Zealand and are granted residence permits on arrival.

Permanent migrants. There are four categories under which would be immigrants may apply for permanent residency.

General Category—the emphasis of the General category is on assessing the overall calibre of the applicant, with migrants being allocated points for attributes and then ranked in a pool. A number of applicants, determined by the number needed to meet the annual migration target figure, are selected monthly by their ranking. Points are given for employability, age, ability to settle, and language ability. If applicants score 20 or more points they gain admittance to a pool where they are ranked according to the number of points gained. The pool is swept once a month, taking a certain number of applicants. The number selected is determined by the number of people needed for that month to meet the annual migration target figure of 25,000.

If the target number is less than the number in the pool the applicants are chosen by their ranking, thus the pool pass mark is raised by demand. Applicants stay in the pool for a maximum of two draws. If after this time they have not passed the pool mark their applications are declined. If they still wish to be considered they may reapply.

Business Investment Category—as opposed to the previous BIP, the new policy has requirements governing investments. All investments have to be lodged for at least two years with the following requirements: NZ$725,000 in a passive investment, $625,000 in an active investment in the Auckland or Wellington area; or $500,000 in an active investment in any area outside Auckland or Wellington. Independent certification of these investments will be required and must be kept in New Zealand for at least two years or residence may be revoked. Applicants must be able to show that the business investment funds are the direct result of their own business or professional record over a period of at least three years, and that their business or professional record extends over a minimum period of 10 years. Applicants must also meet standard immigration health and character requirements.

Invercargill mayor with newly sworn citizens after citizenship ceremony.

Family Category—this category covers three situations: marriage to a New Zealand citizen or resident; de facto relationship with a citizen or resident; parents, dependant children, and single adult brothers, sisters and children. Applications under this category need a sponsor or support from the New Zealand based relative or partner.

Humanitarian Category—this category allows entry into New Zealand of people whose circumstances are exceptionally difficult. Applicants are assessed under the following criteria: their circumstances must be such that they, or a New Zealand party is suffering serious physical or emotional harm, and; their application is supported by a close relative who is a New Zealand citizen or resident and; they produce evidence to show why their situation can only be resolved by being granted residence in New Zealand; and it would not be contrary to public interest to allow them to reside in New Zealand.

Western Samoan quota. A long standing arrangement (dating from the 1960s) provides that up to 1,100 Western Samoan citizens (including dependants) may be accepted for residence each year subject to a guarantee of employment without specific skill requirements and to standard age, health and character requirements.

Refugees. The admission and settlement of refugees who come within the mandate of the United Nations High Commissioner for Refugees operates under an annual intake of up to 800 persons subject to the availability of community sponsorship. Allocation of settlement places within this intake is determined by the Minister of Immigration in consultation with other agencies.

Temporary workers. People who wish to work in New Zealand on a temporary basis (usually up to three years) may be issued visas for that purpose. This facility may be used by people on exchange programmes, people with finite work contracts, people coming from overseas to honour service contracts on equipment and in similar cases. 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 work permit; otherwise visitors are prohibited from working here. This requirement does not, however, affect Australian citizens or permanent residents who wish to work while in New Zealand, nor does it affect people born in the Cook Islands, Niue or Tokelau who are New Zealand citizens and therefore have unrestricted right to be in New Zealand.

Students. Visas may be issued to overseas students to undertake approved courses of study, provided they make prior application and meet a number of requirements (including producing evidence of payment of course fees, and the availability of the necessary funds for their maintenance and return home when their course is completed). Students from developing nations may be eligible for full scholarship or study awards administered by the Ministry of Foreign Affairs and Trade.

Removal or deportation. The Immigration Act 1987 makes provision for the removal of people who are unlawfully in New Zealand. People who are removed from New Zealand are not eligible to return for a period of five years from the date of their departure from New Zealand. The Act also provides for a right of appeal against removal warrant on factual or humanitarian grounds.

The Immigration Act 1987 also provides for the deportation of people threatening national security; suspected terrorists; and criminal offenders who are residents of New Zealand. A deportation order remains in force from the date on which it is served until the person named in the order leaves New Zealand, unless it has been quashed or revoked under the provisions of the Act. A deportee is not permitted to return to New Zealand at any time or for any purpose without special permission from the Minister of Immigration.

Administration and information. Immigration legislation and policy is administered by the New Zealand Immigration Service of the Department of Labour. Officers also operate under delegated authority in New Zealand's diplomatic and consular missions overseas, and at ports of entry to New Zealand.

Further information about immigration policy, and/or application forms and details of fees and charges, may be obtained from the nearest Immigration Service branch office in New Zealand or from New Zealand diplomatic and consular representatives overseas.

5.4 Maori society

Demography

Statistics on the New Zealand Maori population from the 1991 Census are collected on the basis of self identification and are based on the concepts of īethnic group’ or ancestry (see Ethnicity in preceding section). Ethnic group statistics are closely comparable with previous census statistics. This definition was adopted as the best option for analysing Maori population growth and distribution. It was also considered more relevant to the present day requirements of users in that it is referred to in legislation pertaining to New Zealand Maori and used to measure the Maori electoral population. People who described themselves as belonging to one, two or three ethnic categories, one of which is ‘New Zealand Maori’, are defined as belonging to the ‘New Zealand Maori ethnic group’.

Age distribution. compares the Maori population usually resident in New Zealand at the 1986 and 1991 censuses by age group.

When the intercensal change is analysed on a consistent age group basis, i.e., the age groups 0-4 years, etc, at the 1986 Census, are compared with the 5-9 years age groups, etc, at the 1991 Census, the contribution made by net external migration and natural increase to New Zealand Maori population growth can be seen.

Table 5.30. NEW ZEALAND MAORI POPULATION BY AGE GROUP*

Age group (years)1986 Census1991 CensusIntercensal change (percent)
NumberPercentageNumberPercentage

*Persons of Maori origin or descent usually resident in New Zealand.

0–453,76013.362,00414.315.3
5–951,06012.651,07211.7-
10–1452,93213.149,97111.5-5.6
15–1730,8587.630,0216.9-2.7
18–1918,5614.619,8904.67.2
20–2444,40011.042,8559.9-3.5
25–2936,1178.939,5619.19.5
30–3427,2586.733,9997.824.7
35–3921,7625.426,0106.019.5
40–4416,3894.020,7484.826.6
45–4914,9073.715,4383.63.6
50–5411,7872.913,8333.217.4
55–599,2252.310,6502.415.4
60–646,3451.67,8361.823.5
65–694,0201.05,0641.226.0
70–742,7030.72,9310.78.4
75–791,5210.41,7250.413.4
80 and over1,1640.31,2390.36.4
        Total404 775100.0434 847100.07.43

At the 1991 Census, the New Zealand Maori population was significantly younger in age structure than the total population. This youthfulness is demonstrated by the fact that 37.5 percent of Maori were under 15 years of age, compared with 23.2 percent of the total population. In contrast, only 4.4 percent of Maori were 60 years of age and over at that time, the corresponding figure for the total population being 15.5 percent.

These differences reflect both the higher historical fertility (in terms of birth numbers) and mortality levels of the Maori population relative to the total population. The impact of the levels and directions of net external migration on the age structures of the two populations has been much less.

The decline in the New Zealand Maori populations in all age groups (except the 0–4 years age group) at the 1991 Census relative to the adjacent younger age group at the 1986 Census, indicates a net external emigration of Maori during the intercensal period. At the older age groups, the impact of mortality has also influenced this decrease. Maori birth numbers during this period have increased, as can be seen from the 1986 and 1991 census populations in the 0–4 age group.

Geographical distribution. Changes in the regional distribution of the Maori population between the 1986 and 1991 censuses are shown in . Maori continue to be concentrated in the North Island regions (where 89.0 percent live) and more especially in the northern regions—Northland, Auckland, Bay of Plenty and Waikato. However, the proportion of the Maori population in the North Island regions has continued to decline since 1981.

The South Island's share of the Maori population accordingly showed a slight increase, from 10.6 percent to 10.9 percent, during the intercensal period. Canterbury, the only region in the South Island with a significant level of Maori settlement, received the bulk of this increased share and contained 5.0 percent of the Maori population at the 1991 Census.

Redistribution of the New Zealand Maori population during 1986-91 is the result of variations in the relative levels of natural increase (births less deaths) in the regional councils and the impact of both internal and external migration flows.

Table 5.31. NEW ZEALAND MAORI POPULATION BY REGIONAL COUNCIL*

Regional council1986 Census1991 CensusIntercensal change (percent)
NumberPercentageNumberPercentage

*People of Maori origin or descent usually resident in New Zealand.

Includes Chatham Islands County.

North Island—     
        Northland30,6697.635,5028.215.8
        Auckland98,23524.2103,21223.75.1
        Waikato56,11813.960,64213.98.1
        Bay of Plenty47,23511.752,48812.111.1
        Gisborne17,0584.217,5654.03.0
        Hawke's Bay27,5766.828,4916.63.3
        Taranaki12,0183.012,6572.95.3
        Manawatu-Wanganui31,9207.934,6688.08.6
        Wellington40,76710.141,9349.62.9
          North Island total361 59689.3387 15989.07.1
South Island—     
Nelson-Marlborough5,6431.46,5851.516.7
        West Coast1,9560.52,0700.55.8
        Canterbury19,7014.921,7265.010.3
        Otago6,8221.77,8601.815.2
        Southland8,7182.29,1052.14.4
          South Island total42 84010.647 34610.910.5
Extra-county islands and shipping†3420.13390.1-0.9
          New Zealand total404 775100.0434 847100.07.4

Male-female ratio. At the 1991 Census females outnumbered males in the Maori population. This repeats the pattern established in the 1986 Census. There were 214,428 males and 220,416 females in the Maori population, representing a sex ratio of 102.8 females to every 100 males.

Dynamics of population change. The Maori have a substantially higher rate of natural increase than non-Maori, due largely to a higher birth rate, which in turn is due mainly to the more youthful age structure. shows demographic indexes based on those of half or more New Zealand Maori descent.

The Maori fertility rate has undergone a decline in the last three decades, falling from an estimated 6.18 births per woman in 1962 to 2.16 births per woman in 1986 and stood at 2.28 in 1990. 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 1990 this had narrowed to 0.2 births per woman. However, unlike their non-Maori counterparts, Maori women are still reproducing at above the ‘replacement level’ and have an earlier childbearing pattern. In 1990, the median age at childbearing was 24.6 years for Maori women and 28.0 years for non-Maori women.

Table 5.32. MAORI DEMOGRAPHIC INDEXES

YearLive birthsDeaths   
NumberCrude birth rate*Total fertility rate†NumberCrude death rate*Rate of natural increase*‡Reproduction rates
      GrossNet

*Per 1,000 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.

19826,21621.972.271,3184.6517.311.091.06
19836,27121.902.231,3264.6217.271.071.04
19846,74523.272.341,2634.3418.911.141.10
19856,46922.072.201,2724.3217.731.081.05
19866,51322.01P2.16P1,2254.14P17.87P1.04P1.02P
19876,98223.33P2.29P1,2054.03P19.30P1.11P1.09P
19886,76722.41P2.22P1,2584.17P18.24P1.09P1.07P
19896,96722.89P2.29P1,3514.44P18.45P1.11P1.08P
19906,94722.62P2.28P1,3954.54P18.08P1.12P1.09P

Life expectancy. In 1985–87, the average life expectancy of Maori males was 67.4 years, compared with 72.3 years for Maori females, while for non-Maori, life expectancies were 71.4 years for males and 77.4 years for females. Therefore, Maori females were expected to outlive Maori males by nearly five years, and non-Maori females were expected to outlive non-Maori males by six years. Over the past 35 years, the difference in life expectancies for Maori and non-Maori has been converging, due to significant gains made by the Maori population, as shown in . In spite of these gains, however, the life expectancy for Maori males is still four years lower and that for Maori females is about five years lower than for non-Maori males and females respectively.

Table 5.33. COMPARISON: MAORI AND NON-MAORI LIFE EXPECTANCY

YearLife expectancy at birth (years)
MaoriNon-Maori
MaleFemaleMaleFemale
1950–5254.055.968.372.4
1960–6259.061.469.274.5
1970–7261.065.069.175.2
1980–8265.169.570.876.9
1985–8767.472.371.477.4

The Treaty of Waitangi / Te Tiriti o Waitangi

The Treaty of Waitangi has recently been brought to the forefront of debate on race relations in New Zealand (see section 2.1, Constitution).

The treaty has always been recognised within Maori society as an affirmation of rights and highly valued as a taonga, a sacred pact, entered into by the ancestors of today's New Zealanders. It has moved from obscurity through various levels of importance and now occupies an important position in relation to much of the Government's activities.

The landmark 1987 Court of Appeal case, New Zealand Maori Council v the Crown saw the special relationship between the Maori people and the Crown as one of an ongoing partnership, requiring the partners to act reasonably and with the utmost good faith towards each other.

Waitangi Tribunal. This tribunal considers claims from any Maori who considers he or she or any group of Maori of which he or she is a member, is prejudiced by any legislation, policy or practice by or on behalf of the Crown which is inconsistent with the principles of the Treaty of Waitangi. The tribunal is made up of a chairperson and 16 members appointed by the Governor-General. The chairperson is the Chief Judge of the Maori Land Court, and four of the tribunal members must be Maori.

In the 1992–93 year the major reports completed were Pouakani, Ngai Tahu Sea Fisheries, Mohaka River, Ngawha Geothermal Resource and Ika Whenua—Energy Assets. Claims registered increased by 29.4 percent to a total of 352. The tribunal completed 217 sitting days on 12 individual and grouped claims.

Ministry of Maori Development / Te Puni Kokiri

The Ministry of Maori Development was established on 1 January 1992 and replaced Manatu Maori (Ministry of Maori Affairs) and Te Tira Ahu Iwi (Iwi Transition Agency). The purpose of Te Puni Kokiri is to assist in developing an environment of opportunity and choice for tangata whenua, consistent with the Treaty of Waitangi. Its role is to facilitate and support Maori achievements in four key areas: health, education, training and economic resource development. This will enable Maori people to realise their potential for the development of whanau, hapu and iwi in New Zealand society.

The key working relationships for Te Puni Kokiri are based on the following principles. Te Puni Kokiri will:

  • Provide the Minister of Maori Affairs with advice and services contributing towards the Government's desired outcomes for Maori.

  • As an agent of the Government, work with Maori communities, hapu and iwi to facilitate the exchange of services and information.

  • Engage in productive and co-operative relationships with key government agencies to improve Maori access to state services and to achieve parity in outcomes.

  • Foster international relationships with other indigenous peoples and associated agencies.

Te Puni Kokiri is organised into three main core businesses: policy, regions, and residual services. The Policy Group undertakes research and analysis and provides policy advice to government. It also designs or commissions policy projects as a means of testing policy advice. There are 13 regional offices. These offices facilitate access for Maori people to resources in the public, private or voluntary sectors, monitor local services for Maori provided by public and private agencies and facilitate the Maori community input into policy advice. Residual Services is responsible for managing the programmes which have been transferred from Te Tira Ahu Iwi until final decisions are made on the future of these services.

The Maori Trust Office continues to operate under its own legislation with the support staff provided by Te Puni Kokiri.

Maori tribal developments

A recent trend has seen the increased willingness of government to channel communications and resources through tribal organisations to the ‘flax roots’ of Maoridom. Runanga or trust boards have a key role to play in the implementation of development schemes, the development of a comprehensive Maori fisheries policy, 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 groups more effectively. As this strategy is pursued, the Government expects to 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 did not exist. This strong tribal infrastructure is a key element in the emerging biculturalism in New Zealand, Maori economic development, and the adaptation of traditional strengths to meet contemporary needs, which are features of Maori society today.

Maori community services

The Maori Community Services programme, as these services are collectively known, has as its legislative basis the Maori Community Development Act 1962, the Maori Affairs Act 1953 and the Maori Purposes Fund Act 1934–35. These programmes are currently under review by the Te Puni Kokiri to be transferred to other agencies. Currently, payments for community services are made by way of grants approved to national organisations which provide the services.

National Maori organisations working alongside and partially resourced by the ministry are the New Zealand Maori Council; Maori Wardens; Maori Women's Welfare League; Te Kohanga Reo; and Maori Language Commission (Te Taura Whiri).

‘Kia Ora’, the bi-monthly Maori newspaper written and produced in Tokoroa.

Additionally, there are a number of voluntary organisations initiated at community level and providing services in areas of social concern including health; drug, alcohol and solvent abuse; criminal rehabilitation; family violence; skills training; and employment and education. These organisations include the Kokiri management committees.

New Zealand Maori Council. The activities of the New Zealand Maori Council embrace almost every facet of Maori life including social, economic, and cultural matters and the maintenance of good race relations.

District Maori Councils have the same aims and functions as the national body and are additionally responsible for the nomination and the renomination of Maori wardens for approval, and for screening applications for marae subsidies in their regions. Membership includes urban Maori organisations. Each council is represented on the New Zealand Maori Council.

Maori Congress Te Whakakotahitanga O Nga Iwi O Aotearoa. The Maori Congress was officially launched in July 1990, after three national Maori leaders—Sir Hepi Te Heuheu, Dame Te Ata-i-Rangi Kahu and the late Mrs Te Reo Hura—sought to create a national body under which iwi could gather to share, consolidate and advance their own positions.

The objectives of the congress are the:

  • Advancement of all Maori people.

  • Exercise, by each iwi, of tino rangatiratanga.

  • Provision of a national forum for iwi representatives to address economic, social, cultural and political issues within tikanga Maori.

  • Promotion of constitutional and legislative arrangements that enable Maori people to control their own right to development and self-determination.

While acknowledging the strengths and autonomy of each iwi, the Maori Congress provides a forum at which matters of national importance, affecting all iwi and indeed all Maori people, can be debated within a Maori context. By standing apart from government, both in terms of direction and funding, it offers Maori people an opportunity to consider their own options and strategies for social, economic and cultural advancement. Furthermore, because it has a broad base and is so widely representative, it is an obvious source of collective Maori opinion from which acceptable policies for Maori development might take shape.

Congress is led by two presidents, and its membership includes five delegates from 43 participating iwi. Eight committees have been formed to research and action the various interests of congress: a constitution committee; finance committee; operations committee; communication committee; government review committee; justice committee; international committee; and an education committee.

Congress is involved in a range of activities all relating to iwi and Maori development. There has been extensive involvement in the development of modes for the equitable disposal of Crown assets, the representation of Maori on international bodies and the expansion of social projects, such as options for housing and economic expansion, including iwi development corporations.

Maori wardens. These voluntary workers, among other things, provide liaison between police, the courts and the Maori people.

Recently there has been recognition that, with escalating social problems, there is a need for a high degree of expertise and training and courses are being organised to meet this need. There are approximately 1,200 wardens nationally.

Honorary Community Officers. Honorary Community Officers are appointed by the Minister to advise and assist the Maori community in respect of their general welfare, particularly health, housing, education, vocational training and employment. Provision for this programme transferred to the Community Funding Agency of the Department of Social Welfare in July 1993.

Maori Women's Welfare League. The league is a national organisation with a country wide membership. It seeks to promote the well-being of Maori women and their families through the spiritual, physical, cultural, social and economic development of the Maori people.

Programmes in 1993 have focussed on health, positive parenting (through marae-based programmes), Maori women's business initiatives (through the Maori Women's Development Fund) and promotion of junior branches in secondary schools.

Health programmes have included an extension in Auckland and into the Bay of Plenty area of the immunisation awareness education programme which began with a pilot programme in South Auckland in 1992; the expansion of the Healthy Lifestyle Smokefree programme to promote cardiovascular health using netball as the vehicle; and a programme to improve the quality of life for Maori women through participation in sport, fitness and leisure pursuits.

A highlight of the year was the International Conference for Indigenous Women held in Christchurch, 3 to 7 February 1993. Delegates attended from all states of Australia, Papua New Guinea, Solomon Islands, Northern Mariana Islands, Singapore, Guam, Hawaii, Iowa, Alaska, Zimbabwe and from all parts of Aotearoa. The conference celebrated the United Nations Year for Indigenous Peoples and the centenary of women's suffrage in Aotearoa.

Kohanga reo. A kohanga reo is a whanau/family base 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.

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.

Matua whangai. This programme provides an alternative means of addressing social problems encountered by Maori people. The objective is to deinstitutionlise Maori to prevent the flow into government institutions, and to place them in the care of their whanau, hapu or iwi. In return for the commitment of the Maori community, government provides some assistance with boarding costs and housing loans if necessary. The programme is co-ordinated through community Matua Whangai organisations with funding provided by the Community Funding Agency.

Rapu mahi/Hanga mahi. This is a scheme to increase employment opportunities for 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.

Kokiri centres. Kokiri centres are primarily basic skills centres, run by independent executive management committees. Many operate from a marae base while others, particularly in major urban areas, have set up their headquarters in various buildings suitable for their needs.

Most kokiri centres are recognised or are in the process of gaining recognition as ACCESS/Maori ACCESS training providers. Other community programmes can also operate out of kokiri centres, such as kohanga reo, maatu whangai and health programmes. Some centres have fully-appointed health centres operating as part of the complex.

Maori Language Commission (Te Taura Whiri i te Reo Maōri). The Maori Language Commission was established by the Maori Language Act 1987 to promote the Maori language and its use as an official language of New Zealand, as a living language, and as an ordinary means of communication.

Marae subsidies. Marae are traditional centres of Maori tribal life, the venue for major social, political and ceremonial activity. Te Puni Kokiri supplements 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. See section 13.3, Training and employment assistance.

Te reo Maori

Taketake ake nō Aotearoa te reo Māori, ā, he āhua 50,000 ngā tāngata ko te reo Māori tō rātou ake reo. Ko te reo Māori o Aotearoa tētahi o ngā reo o Te Moana-nui-a-Kiwa, ā, he reo e whanaunga ana ki ngā reo o Rarotonga, o Tahiti me Hawai'i.

Nā te kaha o te reo Pākehā i ruarua haere ai te hunga kōrero Māori mai i te nmatanga o tēnei rautau; otirā, mai i te fimatanga o tēnei ngahurutanga, kua oho ake te aroha o te iwi Māori ki tōna reo. Tokohia kē nei ngā tamariki kei ngā Kōhanga Reo, kei ngā Kura Kaupapa Māori rānei e whakaakona ki te reo Māori. He autaia tonu te nui o ngā reo irirangi Māori Kua puta ake, ā, kei tua o te awe māpara ko ngā hinonga pouaka whakaata Māori.

Ko te ture i kiia ai ko te reo Māori he reo mana nō Aotearoa, i whakatūria ai hoki Te Taura Whiri i te Reo Māori i te tau 1987, i whakatakotoria hei urupare ki te pūrongo e tata tonu ana te puta i Te Rōpū Whakamana i te Tiriti o Waitangi—e pā ana taua pūrongo ki te reo Māori me tōna tūranga i ngāwhare whakawā, i ngā kura, i ngā mahi pāho me ngā tari kāwanatanga.

Ahakoa kāore i rite i Te Ture Reo Māori 1987 te katoa o ngā whakahau a Te Rōpū Whakamana i te Tiriti o Waitangi, i kīia te reo Māori he reo mana, ā, ka āhei hoki te tangata ki te kōrero Māori i ngā whare whakawā o te motu.

Ko ngā uaratanga o Te Taura Whiri i te Reo Māori he whakatairanga, he whakaū i te reo Māori hei reo e kōrerotia whānuitia ana, kia ora tonu ai, ā, he whakaōrite i te reo Māori me te reo Pākehā ki tā te ture titiro. Hei hanga i tētahi Aotearoa e āhei ana ngā tāngata katoa ki te kōrero i tō rātou ake reo, ahakoa ko te reo Māori, ko te reo Pākehā rānei, e aro nui atu ana Te Taura Whiri i te Reo Māori ki ngā rōpū e toru e whai ake nei: ki te iwi Māori, ki te hunga o ngā tari kāwanatanga me te iwi whānui.

Kei te iwi Māori tonu te uara whakaora ake i tōna reo, inā hoki kei reira te tino mātauranga ki te reo. Ko te hunga matatau ki te reo e whakahauria ana e Te Taura Whiri i te Reo Māori kia tukua iho e rātou tēnei taonga ki te mātātahi e tupu haere nei, ki te mātāpuputu hoki kāore i te mōhio ki te reo o ōna mātua tipuna. I tua atu i te wero atu ki te iwi Māori kia matapakitia, kia whakatutukia he kaupapa mō te reo, ko tētahi o ngā mahi a Te Taura Whiri i te Reo Māori he tito, he kohi kupu hou mai hei whakamahi mā te hunga kōrero Māori (hei tauira, ‘waea whakaahua’ facsimile device, fax).

E akiakitia ana ngā tari kāwanatanga kia aro mai ki ngā awhero o te iwi Māori e pā ana ki te reo. Ko tetahi atu o ngā mahi a Te Taura Whiri i te Reo Māori he āwhina i aua tari ki te whakarite ratonga reo Māori. Kei te nui ngā pānui tūranga watea kua puta kē i ngā nūpepa o te motu, i ētahi atu wāhi hoki, ki ngā reo e rua, ā, kei te nui ngā pukapuka kōrero whānui kua tāngia kētia ki te reo Pākehā me te reo Māori, ā, i ētahi wā hoki, ki ngā reo o Te Moana-nui-a-Kiwa.

E whakaohongia ana te iwi whānui ki ngā wawata o te iwi Māori e pā ana ki te reo, tae atu hoki ki ngā kura kaupapa Māori me te pāho reo Māori. Ahakoa ka riro mā te iwi Māori anō ēnei kaupapa e whakahaere, e tika ana kia tautokona e te iwi whānui kia pūmau ai te mana o te reo mō ake tonu atu.

New Zealand Maori, a Polynesian language closely related to Cook Islands Maori, Tahitian and Hawaiian, is the indigenous language of New Zealand, and the first language of some 50,000 Maori New Zealanders.

The number of native speakers of Maori has been declining throughout this century in the face of strong competition from English, but over the last decade there has been a renewal of interest in the language on the part of the Kohanga Reo (Maori-language preschool movement) and, more recently, the Kura Kaupapa Maori (Maori-language immersion primary schools). Many Maori radio stations have now been established and there are moves at present to establish Maori television.

The legislation that led to the declaration of Maori as an official language of New Zealand and the establishment in 1987 of Te Taura Whiri i te Reo Māori (the Maori Language Commission) was drafted in response to the imminent publication of the Waitangi Tribunal's finding on a claim relating to the use of the Maori language in courts of law, the education system, broadcasting and the public service. Although the Maori Language Act 1987 fell short of the tribunal's final recommendations, the language was declared ‘official’ and the right to speak Maori in courts of law and before a number of tribunals was established.

The mission of the Maori Language Commission is to contribute to the growth and maintenance of the Maori language as a living, widely used means of communication with a legal status equal to that of English. In working towards a society where all New Zealanders feel able to communicate in the official language of their choice, either English or Maori, Te Taura Whiri i te Reo Māori continues to address three main groups: the Maori people, the state sector and the general population.

Maori people themselves possess the essential element in the revitalisation of the Maori language: knowledge of the language. Those who currently speak Maori are urged to pass their knowledge on to younger generations and to others who were not brought up speaking the language. As well as offering a forum where language policy can be discussed, developed and promoted, Te Taura Whiri i te Reo Māori offers a technical service by undertaking language research, including the creation and collection of new terms in the Maori language such as waea whakaahua ‘facsimile device; fax’.

Guatemalan Nobel Peace Prize winner, Rigoberta Menchu. Her visit to New Zealand in September 1993, coincided with the International Year for Indigenous People.

The state sector is encouraged to respond to the language needs of its Maori-speaking clientele. Te Taura Whiri i te Reo Māori assists government departments and other Crown agencies in offering a range of services in Maori. Already, large numbers of advertisements for positions in the public service appear in daily newspapers and elsewhere in a bilingual format, and much public information is now published in English and Maori, and often also in other Polynesian languages.

The general population is gradually being made aware of the language concerns of the Maori people, including the need for Maori-medium schooling and broadcasting. While it is the Maori people who are the key players in issues concerning the revitalisation of the language, the goodwill and support of the general population is required if the Maori language is to achieve status as a fully official language.

5.5 Pacific Island population

Demography

The 1991 Census provides the most recent and complete data on New Zealand's Pacific Island population. The following tables are based on an ethnic group of ancestry concept and allows comparison between the 1986 and 1991 census data. This population includes the categories of Samoan, Cook Island Maori, Niuean, Tokelauan, and other Pacific Island groups eg, Hawaiian, Tahitian. Persons who specified themselves as belonging to one or several Pacific Island categories are defined as ‘the Pacific Island Ethnic Group’.

Age distribution. compares the Pacific Island populations at the 1986 and 1991 censuses on an age group basis.

When intercensal population growth is analysed on a consistent age group basis, i.e., the age group 0–4 years at the 1986 Census is compared with the 5–9 years group at the 1991 Census, etc a major contribution made by net immigration to the increase in the Pacific Island population during the period is evident.

In addition, the high growth of 36,780 (28.2 percent) in the resident Pacific Island population during the 1986–91 intercensal period was partly a result of significant natural increase (births less deaths) for this ethnic group.

Table 5.34. PACIFIC ISLAND POPULATION BY AGE GROUP*

Age group (years)1986 Census1991 CensusIntercensal change (percent)
NumberPercentageNumberPercentage

*Persons of Pacific Island origin usually resident in New Zealand.

0–418,39014.125,73715.440.0
5–917,42113.419,85111.913.9
10–1415,81912.119,11011.420.8
15–1914,22310.917,22310.321.1
20–2412,99310.016,69510.028.5
25–2911,8989.115,6279.431.3
30–3410,7768.313,0807.821.4
35–398,7096.710,7856.523.8
40–445,9824.68,5475.142.9
45–494,6713.65,9973.628.4
50–543,1532.44,7102.849.4
55–592,4091.83,3392.038.6
60–641,6411.32,6221.659.8
65–691,0170.81,7341.070.5
70–746060.51,0560.674.3
75–793150.25610.378.1
80 and over2670.23900.246.1
        Total130 293100.0167 073100.028.2

At the 1991 Census of Population and Dwellings, the Pacific Island population was considerably younger in age structure than the total usually resident New Zealand population. This is shown by the fact that 38.7 percent of Pacific Islanders were under 15 years of age, compared with 23.2 percent of the total population. In contrast, only 3.8 percent of Pacific Islanders were 60 years of age and over at that time, the corresponding figure for the total population being 15.4 percent.

The Pacific Island population has a different age structure from that of the New Zealand Maori population. This is mainly the result of consistently high external net migration levels, especially for the younger working-age groups (15–24 years) during the past 20 years. It has created a Pacific Island population which is more concentrated in the middle working-age range (25–44 years) than is the case for Maori. Pacific Island births in New Zealand have only shown a significant increase in the past decade, the result of the growth in the population of reproductive age.

Distribution of population. The distribution of the Pacific Island population by regional council is shown in . All regional councils experienced growth in their Pacific Island populations between the 1986 and 1991 censuses. In terms of numbers, Auckland experienced the greatest increase (27,384), or 74.5 percent of the national increase of 36,780 during the intercensal period.

Table 5.35. PACIFIC ISLAND POPULATION BY REGIONAL COUNCIL*

Regional council1986 Census1991 CensusIntercensal change (percent)
NumberPercentageNumberPercentage

*People of Pacific Island ethnic group usually resident in New Zealand.

Includes Chatham Islands County.

North Island—     
        Northland1,2751.01,6351.028.2
        Auckland8,393164.4111,31566.632.6
        Waikato6,1954.87,2364.316.8
        Bay of Plenty2,6072.03,2762.025.7
        Gisborne4380.35250.319.9
        Hawke's Bay2,2891.82,5201.510.1
        Taranaki5520.46360.415.2
        Manawatu-Wanganui2,5952.03,4262.132.0
        Wellington21,50416.526,05515.621.0
          North Island total121 38693.2156 62793.729.0
          South Island—
        Nelson-Marlborough5610.45880.44.8
        West Coast1380.11470.16.5
        Canterbury4,8003.75,8233.521.3
        Otago1,9711.52,3251.418.0
        Southland1,4251.11,5450.98.4
South Island total8 8986.810 4346.317.3
Extra-county islands and shipping°9-12-..
          New Zealand total130 293100.0167 073100.28.2

Artist with one of his pieces chosen for display in the new Wellington High Court

Ministry of Pacific Island Affairs

The Ministry of Pacific Island Affairs has the aim of encouraging Pacific Island people to contribute fully to New Zealand's social, cultural and economic life while recognising and reflecting the cultural values and aspirations of people of the Pacific. The ministry has wide-ranging brief to monitor the impact of government policy on Pacific Island communities. Activities can become diffuse unless they are closely linked with the priorities and actions of Pacific Island communities.

The policy work of the ministry will be directed towards education (particularly preschool and tertiary), skills training and employment, small business development, health and increasing the participation of Pacific Island people in public decision making.

The operational capacity of the ministry is primarily devoted to providing a skills training and employment placement service. There are also likely to be some additional social development projects run to demonstrate the policy options proposed by various communities. The ministry will also continue to support the Pacific Island Business Development Trust which has already proved to be a successful model for business enterprise.

The mission of the ministry is to achieve a quality of life that is consistent with the aspirations of people from the islands of the Pacific resident in New Zealand. The ministry works towards this goal by:

  • Providing advice on key policies and issues.

  • Disseminating information and consulting Pacific Island communities.

  • Facilitating employment and training opportunities and provision of specific social services and programmes.

  • Encouraging other government agencies to take responsibility for meeting the aspirations of Pacific Island people.

  • Promoting Pacific Island leadership that fosters self-reliance and full participation in all facets of New Zealand life.

  • Influencing and monitoring the development and implementation of government policies that affect Pacific Island people.

The Pacific Island Division of Te Puni Kokiri was transferred to the Ministry of Pacific Island Affairs on 1 July 1992. This new addition is now known as the Operations Division of the Ministry of Pacific Island Affairs. Their main focus is for employment and training as well as supporting the development of social services.

Contributors

  • 5.1 Department of Statistics.

  • 5.2 Department of Statistics; Marriage Guidance New Zealand; Department of Justice.

  • 5.3 Human Rights Commission; Office of the Race Relations Conciliator; Ministry of Women's Affairs; Department of Statistics; Department of Internal Affairs; Department of Labour.

  • 5.4 Department of Statistics; Ministry of Maori Development (Te Puni Kokiri); Maori Language Commission; Maori Women's Welfare League Inc.

  • 5.5 Department of Statistics; Ministry of Pacific Island Affairs.

Special articles

Department of Internal Affairs; Te Taura Whiri i te Reo Maori (Maori Language Commission); Early Childhood Development Unit; Ministry of Women's Affairs; Statistics New Zealand; Te Puni Kokiri (Ministry of Maori Development); Future Times, 1992 No 4, New Zealand Futures Trust; ‘Fathering’ by Paul Callister, from Girls Can Do Anything So Why Can't Boys?, Conference of New Zealand Association of Economists, August 1993.

Further information

Households

Consumer Expenditure. Statistics New Zealand (annual).

Profiles of New Zealanders: Families and Households, Census of Population and Dwellings, Series E, Report 3. Statistics New Zealand.

Census of Population and Dwellings 1991, New Zealand's Social Structure. Department of Statistics.

Census of Population and Dwellings 1991, New Zealanders at Home. Department of Statistics.

Marriage

Demographic Trends. Statistics New Zealand (annual).

Report of the Department of Justice (Parl paper E5).

Human rights, immigration and citizenship

Demographic Trends. Statistics New Zealand (annual).

Report of the Department of Internal Affairs (Parl paper G7).

Report of the Department of Labour (Parl paper Gl).

Report of the Human Rights Commission and the Race Relations Conciliator (Parl. paper E6).

Maori population

Demographic Trends. Statistics New Zealand (annual).

Report of the Ministry of Maori Department—Te Puni Kokiri (Parl paper E47)

Census of Population and Dwellings 1991, New Zealand Maori Population and Dwellings. Department of Statistics.

Census of Population and Dwellings 1991, Iwi Population and Dwellings. Department of Statistics.

Pacific Island population

Report of the Department of Internal Affairs (Parl paper G7).

Census of Population and Dwellings 1991, Pacific Island Population and Dwellings. Department of Statistics.

Chapter 6. Social Welfare

Superannuitants rally

In recent years, government support for programmes run by voluntary welfare organisations has substantially increased and the community has become more involved in providing social welfare. Government has promoted a mixed economy of social service providers. The Department of Social Welfare now delegates more of its responsibilities to the local, district and regional levels. Issues of access to and the cultural appropriateness of services have also led to a wider range of providers.

Department of Social Welfare

During 1992 the framework for a restructured department had largely been put into place to ensure that the three major delivery functions (income support; social services to children, young persons and their families; and funding of welfare organisations) operate in a more accountable way as distinct businesses, each under a General Manager. In addition, a Social Policy Agency and a Ministerial Services Unit provide policy advice and ministerial liaison and support to the Minister of Social Welfare.

A major part of the department's role is to administer Parts I and III of the Social Security Act 1964, the Social Welfare (Transitional Provisions) Act 1990, the Disabled Persons Community Welfare Act 1975, the Children, Young Persons and their Families Act 1989 and the War Pensions Act 1954. The department also:

  • Advises the Minister on the development of social welfare policies for New Zealand.

  • Provides such welfare services as the government may from time to time require.

  • Maintains close liaison with, and encourages 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.

  • Undertakes and promotes research into aspects of social welfare.

  • Provides such administrative services as the Minister may from time to time direct to such boards, councils, committees, and agencies as he or she may direct.

  • Receives and disburses maintenance payments and enforces arrears in payments due before the Child Support Act 1991 came into force, maintenance orders and registered agreements under the Family Proceedings Act 1980.

  • Under the Civil Defence Welfare Plan, in time of disaster, makes relief payments authorised by government to the homeless, and makes payments authorised by government for hosts for billeting evacuees from a disaster area.

Table 6.1. SOCIAL WELFARE EXPENDITURE

Year*Payments on behalf of the CrownDepartmental expenditureTotal
National superannuationAll other paymentsReceipts on behalf of the CrownNet operating expensesNet capital expenses

*Year ended 30 June.

Source: Department of Social Welfare.

   $(million)   
19915,1734,458245496359,916
19925,5154,2643135192410,008
19935,3164,5552644622710,096

6.1 Income support

Unlike most overseas social security schemes, the New Zealand scheme is non-contributory. Benefits are financed from general taxation, and wage and salary earners are not required to pay regular contributions to a social security fund. An advantage of this is that people who are unable to pay contributions are covered to the same extent as wage and salary earners.

The social security system provides for a range of assistance with cash benefits paid as of right to those who meet income, residence and other eligibility criteria for each category; and other assistance available to help with specific expenses such as accommodation or those related to a disability.

BENEFITS
Beneficiaries by assistance

The New Zealand Income Support Service delivers benefits, national superannuation, war pensions and additional income support to eligible New Zealanders. The service is a substantial business distributing over $9 billion in benefits and pensions to its customers each year. Employing approximately 4,500 people in 90 offices throughout New Zealand, the service has 875,581 customers or approximately 1 in 4 New Zealanders. An average of 1,600 applications for benefits and pensions are processed each day, while nationally the service handles approximately 66,000 transactions daily by mail, telephone and personal contact.

Over the next two years the service will be focusing on providing income support assessment and payment in a faster, more accurate and appropriate way to reduce costs and improve customer service. By refining work practices and procedures, and reducing administrative time delays customers will ultimately be provided with better information on the entitlements which match their personal and family circumstances.

The following main benefits, loans and payments are paid by the service:

  • Caring benefits: domestic purposes, emergency, orphans, widows and unsupported child's benefits.

  • Incapacity benefits: emergency, invalids, and sickness benefits; disability allowance, handicapped child's allowance, loans for home alterations, loans for repair to homes and car loans for the disabled.

  • National superannuation and veterans benefits.

  • Other benefits, grants and payments: accommodation supplement, appliances and equipment grants, childcare subsidy programme, disability allowance, funeral grant, rehabilitation allowance, special benefits, special needs grants and travel and accommodation (vocational).

  • Work related benefits: independent youth; training; and unemployment benefits and job search allowance.

  • War pensions: blinded servicemen's trust board, interest concessions land and buildings, medical treatment, other war pensions, war disability pension and war pension concessions.

The weekly rates payable for cash benefits are listed in and a brief description of each of the main cash benefits is set out in the text following. The full requirements for eligibility are beyond the scope of this publication, but more information is available from offices of the Department of Social Welfare.

Table 6.2. CASH BENEFITS: WEEKLY RATES*

Benefit Weekly rate from April 1993

*Single 16-17 year olds receive the Training Benefit only.

Source: Department of Social Welfare.

 Basic benefitWith Family Support
 $
Unemployment—  
Without children:  
Single 16-17 year olds*88.15 
Single 18-24 year olds110.69 
Single 25 and over132.85 
Married couple221.38 
With children:  
Single (1 child)190.27232.27
Single (2 children)207.56271.56
Married couple (1 child)235.24277.24
Married couple (2 children)235.24299.24
Sickness—  
Without children:  
Single 16-17 year olds110.69 
Single 18-24 year olds132.84 
Single 25 and over138.37 
Married couple251.60 
With children:  
Single (1 child)190.27232.27
Single (2 children)207.56271.56
Married couple (1 child)251.60293.60
Married couple (2 children)251.60315.60
Invalids—  
Without children:  
Single 16-17 year olds134.36 
Single 18 and over166.04 
Married couple276.74 
With children:  
Single (1 child)218.11260.11
Single (2 children)234.21298.21
Married couple (1 child)276.74318.74
Married couple (2 children)276.74340.74
Widows and Domestic Purposes Benefit—  
Women alone single adult138.37 
Sole parent (1 child)190.27232.27
Sole parent (2 children)207.56271.56
Domiciliary Care Domestic Purposes Benefit—  
Single 16-17 year olds134.37 
Single 18 and over166.04 
Sole parent (1 child)218.11260.11
Sole parent (2 children)234.21298.21
Half married rate138.37 
Orphans and Unsupported Child Benefit—  
Under 5 years55.35 
5-9 years69.18 
10-13 years76.10 
14 and over83.02 
Independent Youth Benefit—  
Single 16-17 year olds110.69 
Job Search Allowance—  
Single 16-17 year olds88.15 
National Superannuation and Veterans Pension—  
Single living alone230.38 
Single sharing210.19 
Married person171.68 
Married couple: both qualify343.36 
Married couple: non-qualifying spouse329.00 

INCOME SUPPORT
Payments made by DSW

Income-tested benefits

Invalids, sickness, widows, domestic purposes, unemployment, and training benefits are income-tested with some beneficiaries subject to ‘stand down’ periods. These benefits are adjusted annually in line with movement in the Consumer Price Index, but within a wage band. The after-tax benefit rate for couples cannot be more than 72.5 percent or less than 65 percent of average after-tax wages.

Basic income exemptions. The basic income exemption is $50 a week ($60 for beneficiaries with children). Benefits are reduced by 30 cents for every $1 a week of income over $50 and up to $80 a week. For amounts over $80 a week, the deduction is 70 cents for every dollar. For invalids, widows and domestic purposes beneficiaries, exemptions are calculated on the basis of annual rather than weekly income.

Invalids benefit. This benefit is payable to people aged 16 years or over who are either totally blind or are permanently and severely restricted in their capacity for work as the result of an accident, illness, or congenital disability. The number of invalids benefits in force at 30 June 1993 was 34,957.

Sickness benefit. A sickness benefit is payable to persons over the age of 16 who are incapacitated for work through sickness or accident, and as a result suffer a loss of earnings. The number of sickness benefits in force at 30 June 1993 was 28,729.

Widows benefit. This benefit is payable to a woman whose husband (including de facto) has died. The number of widows benefits in force at 30 June 1993 was 10,259; of this number 3,131 were caregivers for 5,206 children.

Domestic purposes benefit. This benefit is payable to a parent caring for children without the support of a partner, to a person caring at home for someone who would otherwise be hospitalised, and in some circumstances to an older woman alone. The number of domestic purposes benefits in force at 30 June 1993 was 96,335; of this number 92,610 were sole parents (caregivers for 157,283); 955 were caring for the sick or infirm; and 2,775 were women alone.

Unemployment benefit. This is payable to people who are unemployed, are capable and willing to undertake full time work, and have taken reasonable steps to obtain suitable employment. The number of unemployment benefits paid decreased by .016 percent over the 1993 year. As at 30 June 1993 a total of 170,339 unemployment benefits were being paid. Of this number 150,359 people received the standard benefit; 184 received the Job Search allowance; 4,285 the independent youth benefit, while 6,780 received other unemployment benefits. The emergency unemployment benefit, Age 55+ and the student benefit were, as at 30 June 1993, granted to 8,707 and 24 people respectively. Emergency support for unemployed students has risen each December for the past three years, from 12,582 in 1990 to 15,528 in 1991 and to 21,961 in 1992.

Lower Hutt food-bank workers.

Training benefit. The training benefit is payable to people who are not full time students, but are engaged in full time employment-related training programmes. There were 10,987 training benefits being paid as at 30 June 1993.

Emergency benefits. An emergency benefit may be granted on grounds of hardship to any person who because of age, physical or mental disability, or any other reason is unable to earn a sufficient livelihood and is ineligible for any other monetary benefit other than family support.

NUMBER OF BENEFITS

Veterans pension. This is paid at the same rate as national superannuation, and is not income tested but is taxable. A total of 6,117 people received veterans pensions as at 30 June 1993. This pension replaces the former war service pension, war veterans allowance and economic pension.

Foster mother for a social welfare home with abandoned baby.

Family assistance

Family support. Family support is provided to people with dependent children who meet income eligibility requirements. It is paid to income-earners through taxation (see section 26.2, Taxation), but is delivered to beneficiaries and non-earners through the social welfare system.

Child care subsidy. The child care subsidy programme provides financial assistance to low income families with dependant children under the age of five to obtain access to child care services. Expenditure on the child care subsidy increased quickly following the February 1992 increase in subsidy rates. The higher rates caused the number of people approved for a subsidy to increase by 170 percent between February 1992 and June 1993.

Orphans and unsupported child benefits. This benefit is payable to a person caring for an orphan or an unsupported child. As at 30 June 1993 there were 3,539 benefits being paid.

Community services card. As at 1 February 1992, with the introduction of user part charges for health services, low income earners can present a community services card and obtain subsidies for certain health services. As at 30 June 1993 there were 1,018,912 current cardholders.

National superannuation

The current national superannuation scheme provides $230.38 a week for a single person and $343.36 a week for a married couple (or $328.00 if one spouse does not qualify).

A surcharge tax is imposed on all income earned over a certain level, $80 a week for a single person, and $120 for a married couple, at 25 cents in the dollar net. This gives an effective marginal tax rate of 53 percent for the majority and 58 percent to some.

The qualifying age is being gradually raised from 60 to 65 by 2001.

People who wish to supplement their national superannuation when they retire can contribute to private superannuation or insurance schemes. The first half of income from all such schemes will be exempt from the surcharge. Private superannuation and insurance is described in more detail in section 21.3, Superannuation and insurance.

Table 6.3. NUMBER OF BENEFITS IN FORCE

Type of benefitAt 31 MarchAt 30 June
19891990199119921993
Source: Department of Social Welfare.
National superannuation485,962495,500506,047504,561488,893
Widows13,02612,67610,9899,87310,259
Domestic purposes85,61594,82397,00096,72296,335
Orphans2,9935,2392,9313,1353,539
Family437,287446,373......
Invalids26,26027,82430,74631,83134,957
Miners7631..
Unemployment123,565139,625153,259170,367170,339
Sickness16,02119,51120,14724,09328,729
Training..9,4537,4837,85710,897
Total1,190,7361251,030828,605848,440843,948

Table 6.4. PAYMENTS UNDER THE SOCIAL SECURITY ACT 1964*

Item19891990199119921993

*Excludes payments for health benefits.

These figures were obtained by multiplying by 52 the amount paid in the week to 31 March.

Source: Department of Social Welfare.

   $(000)  
National superannuation4,314,2594,774,6765,173,8595,514,4825,315,899
Widows106,062114,888106,07085,46884,977
Domestic purposes962,8711,136,7181,207,8561,161,1911,159,737
Orphans14,07424,74220,69715,08016,473
Family258,445284,444222,996....
Invalids226,304260,751289,212384,810372,786
Miners72683914..
Unemployment987,2751,235,0561,401,6281,445,2481,150,669
Sickness192,745229,568248,672239,415284,597
Training..56,46081,69674,54678,236
Payment after death5,2555,574......
Advances for repairs to homes2,3613,064......
Disability allowance†43,89352,527......
Handicapped child's allowance9,12711,267......
Accommodation benefit†100,800120,566......
Special benefit†29,19049,426......
Telephone concession5,393........
Total cash benefits7,258,1268,359,7958,752,7258,884,2548,463,376

Other assistance

Disability allowance. This is an income-tested allowance payable to people with special costs arising from disability.

Handicapped child allowance. A non-taxable allowance payable to the parents of seriously physically or mentally handicapped children being cared for at home. There were 10,230 children receiving an allowance as at 30 June 1993, with 1,844 applications granted in the year ending 30 June 1993.

Special benefit. This is for people with special or unusual costs, whose income and assets are insufficient to meet those costs, in addition to normal living expenses. This benefit was held by 34,131 customers as at 30 June 1993, an increase of 8,512 from the previous year.

Special needs grant. This is a one-off payment made in an emergency situation where the need cannot be met in any other way, and where there are insufficient financial resources to pay for the item. For the year ending 30 June 1993, 345,072 grants were issued.

Advance payments of benefit. Advance payments are available to some categories of long-term beneficiary to pay for essential needs which they would otherwise be unable to afford. For the year ending 30 June 1993, 214,033 advance payments had been granted.

Advances for major repairs to homes. An advance may be made to beneficiaries or pensioners owning their own homes for essential repairs and maintenance, or to install essential services or appliances. For the year ending 30 June 1993, 1,474 advances were granted.

Training incentive allowance. This allowance is available to widows, invalids and domestic purposes beneficiaries to help meet costs associated with attending recognised occupational or work-related courses which provide specific work skills. In the year to 30 June 1993 allowances were granted to 9,368 persons on the domestic purposes benefit, 143 on widows and 1,497 on invalids, totalling 11,008 granted allowances.

COMMUNITY PROGRAMMES
Expenditure, 1992/93

Transition-to-work allowance. This allowance is available to those who have been receiving an income-tested benefit for 12 months or more and find full-time work. In the year to 30 June 1993, 451 applications were received of which 138 were granted.

Payment while in hospital. Applicants with no dependent children receive a benefit at the current rate for the first 13 weeks of hospitalisation. Thereafter they receive a reduced rate. The benefit rate is not reduced for applicants with dependent children.

Continuation of benefit after death of beneficiary. Certain benefits may be paid for a period of four weeks following the death of beneficiaries.

Funeral grants. A funeral grant may be paid towards reasonable funeral expenses. The grant is subject to an income and assets test which includes the assets of the deceased's estate and those of a surviving spouse or parents where the deceased is a child. Prior to August 1991 this grant was available under different conditions. For the year ending 30 June 1993,3,329 grants had been allowed, a decrease of 587 from the previous year.

Support of children by non-custodial parents

When a couple separates there are two means by which the non-custodial parent may be required to make payments towards the care of children.

Child support. The responsibility to collect child support payments from the country's 90,000 non-custodial parents was transferred from the Department of Social Welfare to the Inland Revenue Department from 1 July 1992. The Child Support Agency of the Inland Revenue Department has the objective to ensure that non-custodial parents contribute to the support of their children according to their capacity to provide.

War disablement pensions

The war pensions programme provides pensions and concessions for those who saw service in the two world wars, Korea or Vietnam. It also includes obligations under the charter of the United Nations, and service within the Regular Force before 1 April 1974. Assistance for service people injured after that date is provided under the Accident Compensation Act 1982.

The administration of the War Pensions Act 1954 is the responsibility of the Secretary of War Pensions, who acts under the general direction and control of the Minister of War Pensions. A War Pensions Advisory Board advises the minister on war pensions policy and related matters. Decisions on eligibility for a war pension are made by 26 district office war pensions claims panels. Such decisions have both a review and appeal provision.

The war pensions programme comprises:

War disablement pension. This pension provides compensation for disablement. Approximately 87 percent of those receiving this pension served in World War II.

Other provisions. The war pensions programme can also provide additional allowances and concessions, including an additional pension for severe disablement, clothing allowance, travelling allowance, attendance allowance, and allowances for dependents. Approximately 85 percent of those people on dependents pension, relate to service during World War II.

War pensions are increasingly related to the elderly section of the population and have remained constant over recent years.

Table 6.5. WAR PENSIONS AT 30 JUNE 1993

Type of pensionNumber in forceAnnual value

*Disablement and Dependants Pensions for Police are recorded under police pensions.

The annual values have been calculated from the amount being paid in the week ended 30 June, multiplied by 52. Benefit numbers are relatively constant throughout the year.

From 1 April 1990 Veterans Pension replaces Economic Pension, War Service Pension, and War Veteran's Allowance.

Source: Department of Social Welfare

  $(000)
War Disablement*21,36956,191
Dependants Pensions4,11120,695
Veterans‡6,24817,000
Police3699
    Total31 76393,985

Reciprocity agreements

Australia. There is reciprocity between New Zealand and the Commonwealth of Australia in relation to a wide range of benefits. For the purpose of any application for a benefit, residence in one country is regarded as residence or birth in the other. As well as being qualified on residential grounds, applicants must meet entitlement criteria for a benefit or pension, such as eligibility conditions concerning age, or medical incapacity. Revision of the reciprocal agreement with Australia has seen the New Zealand Government move towards benefit portability by agreeing to meet the cost of Australian age, widows and invalids pensions paid to former superannuitants, widows and invalids beneficiaries who left New Zealand after 1 April 1989.

COMMUNITY FUNDING
By sector

United Kingdom. The Social Security (Reciprocity with United Kingdom) Act 1983 provides for reciprocity in a comprehensive range of benefits. The general principle of the convention is that people migrating from one country to the other will be taken into the social security scheme of the receiving country and paid benefits under the laws and conditions applicable to other residents of that country.

The Netherlands. The social security agreement provides for the payment of a range of New Zealand benefits to former residents living in the Netherlands. The rate of payment depends on the period of the person's residence in New Zealand.

General portability. People receiving national superannuation or veterans pension are able to continue to receive 50 percent of their pension while living overseas, provided that they were resident in New Zealand on the date of application and are not living in a country with which New Zealand has a social security reciprocal agreement. Rates of payment above 50 percent will be negotiated in the context of reciprocal agreements.

Special portability arrangement. People eligible to receive national superannuation or veteran's pension may receive up to 100 percent of the core rate of payment while they are living in the Cook Islands, Niue or Tokelau. The rate of payment depends on the period of the person's residence in New Zealand.

Social security agreements with Greece and Ireland were reached in 1993 and will come into force in early 1994.

Crowd of Women's Refuge Appeal cut-outs, Wellington.

6.2 Social services

The Department of Social Welfare directly provides a range of services to children, young people and families. It also provides financial and other support to non-government organisations and groups providing social services in the community.

New Zealand Community Funding Agency

The New Zealand Community Funding Agency was established in May 1992 as a service of the Department of Social Welfare. The agency is responsible on behalf of government for the allocation and delivery of funding and support to community-based social and welfare service providers throughout New Zealand. During the 1992-93 financial year $132.3 million was allocated by the agency to almost 1,000 service providers.

PEOPLE WITH DISABILITIES

Legislation responsibilities. The New Zealand Community Funding Agency has responsibility for administering programmes under the Children Young Persons and Their Families Act 1989, the Disabled Persons Community Welfare Act 1975 and the Social Security Act 1964. The agency funds, under the Children Young Persons and Their Families Act, programmes for Child and Family Support Services and community-based social services. Under this Act the agency is also responsible for the approval of child and family support services and community services for families. The agency has also established an accreditation system for social and welfare service providers. It is the only organisation in New Zealand which offers this service. The agency funds, under the Disabled Persons Community Welfare Act, organisations providing services to home-based care, residential care and vocational rehabilitation services for people with disabilities. Under the Act, the agency is also responsible for the registration of homes for people with disabilities.

Service sectors funded by the New Zealand Community Funding Agency. The New Zealand Community Funding Agency funds social and welfare service providers in the following sectors:

Families in need of support—includes women's refuges, counselling therapy, parenting programmes, family whanau resource development, youth programmes and residential care.

Community welfare—includes budgeting programmes, the National Association of Citizens Advice Bureaux, refugee services, rape crisis and sexual abuse programmes and victims support groups.

People with Disabilities—includes residential and support services, vocational opportunities and employment placement for people with disabilities as well as disability information and advisory services.

Community Housing—The community housing programmes previously operated by the Housing Corporation of New Zealand are now co-ordinated through the New Zealand Community Funding Agency. The agency provides funding by way of a subsidy to assist community groups to obtain special tenancies or special lending finance to purchase housing. At present all special tenancies are rented from Housing New Zealand and most special lending finance is provided by the Housing Corporation. Community housing is available for emergency housing purposes, women's refuges, youth at risk and for community-based supported housing for people with psychiatric, intellectual or physical disabilities.

Allocation of funding. Funding is allocated by the New Zealand Community Funding Agency through an annual assessment of the service needs of the community in each of the eight geographic areas the agency operates within. This process, called services planning, involves consultation with service providers as well as the gathering of data such as benefits, census data, consumer usage of services, service review reports, local authority and other governmental information to develop an overall picture of the service needs of each area. The services of national organisations are also assessed by the agency. Once all of the information has been compiled, funding is allocated to providers on the basis of clearly identified need on both a local and national basis. Contracts for service provision are then drawn up between the agency and the provider of the service.

Geographic location. The agency operates out of eight geographic areas. These are: Tai Tokerau (Northland); Auckland; the Central North Island; the East Coast/Gisborne/Hawkes Bay area; Taranaki/Manawatu; Wellington/Nelson/Marlborough; Canterbury/West Coast and Otago/Southland. Each of the agency's geographic areas (with the exception of Auckland) has staff operating from a central office in the major cities or towns as well as staff based in smaller locations throughout each area. The agency's head office is based in Wellington.

REHABILITATION SERVICES
Community support, 1992/93

New Zealand Children and Young Persons Service

The mission of the New Zealand Children and Young Persons Service is to work with families to protect children, manage young offenders, and ensure care and security for children in need.

The service is contracted with the Minister of Social Welfare to provide care and protection and other social services; Youth Justice Services; and Adoption Services. These are outlined below.

Care and protection and other social services. The purpose of the Care and Protection Service is to work with families to protect children in need and ensure their adequate care and security. Services include:

  • Providing information and referral services to children, young persons and individual adults and families.

  • Investigating child abuse.

  • Assessing the risk and need for care and protection, and when care and protection needs exist, providing appropriate family support services.

  • Facilitating and responding to Family Group Conference Plans, and preparing reports and providing other services to the courts.

  • Providing custody and guardianship services to children and young persons, either directly by the service or indirectly by an approved organisation or individual.

These services are provided under the Children, Young Persons and Their Families Act 1989, the Guardianship Act 1968, the Family Proceedings Act 1980, the Immigration Act 1987, and other statutes and agreements.

Case assessment and investigation—this activity includes processes by which social workers are notified of children in need of care or protection, including child abuse allegations. In consultation with the family/whanau social workers investigate and assess the situation.

Where appropriate the matter may be resolved through a family/whanau agreement. A family/whanau agreement is a voluntary contract between the child's family/whanau and the service for the provision of care to meet the child's needs.

Table 6.6. CHILD PROTECTION INTAKE, INVESTIGATIONS AND FAMILY/WHANAU AGREEMENTS*

 Year ended 30 June
 19921993

*One child may be the subject of more than one notification, inquiry, consultation or agreement and more than one child may be included in any notification or consultation.

Source: Department of Social Welfare.

Number of general care and protection enquiries50,88755,358
Number of notifications for:  
CP01 Alleged child abuse and neglect10,65212,409
CP02 Child or young person with problem behaviour4,3065,496
CP03 Child or young person leaving home1,9432,093
CP04 Relationship difficulties2,0172,033
CP05 Child or young person in detrimental environment5,3255,919
CP13 Parent or caregiver respite618806
Total number of notifications for child abuse, neglect or care difficulties24,86128,756
Number of CP01-CP05, CP13 notifications made during the year where:
At least one youth justice notification was current at the time of notification
 606
The case was current at 30 June 1993..8,393
The case had been closed by 30 June 1993..20,363
At least one family/whanau agreement was made..2,737
Number of CP01 and CP05 consultations with the Care and Protection.. 
Resource panel by social workers under S17 of the CYP&F Act9,52914,542
Number of family/whanau agreements made4,3695,380

FAMILIES UNDER STRESS
Sector funding

Family Group Conferences—the Family Group Conference (FGC) is the mechanism established by the Children. Young Persons and their Families Act 1989 whereby families/whanau meet with the department or other agencies to make an agreed plan to resolve a care or protection problem. The conferences are convened by the Care and Protection Co-ordinator.

Table 6.7. CARE AND PROTECTION FAMILY GROUP CONFERENCES

 Year ended 30 June
 19921993

*There may be more than one family group conference held per child or young person for any notification. However, if a family group conference is called together to discuss the welfare of several children or young persons simultaneously, it has been counted as a separate family group conference for each child or young person.

A family group conference may have one or more disposal outcomes.

Source: Department of Social Welfare.

Referral from NZ Children and Young Persons Service (NZCYPS)2,8632,536
Referral from police173130
Referral from Family Court475592
Referral from other agency447730
Total referrals3,9583,988
FGC plans made and decisions/recommendations accepted3,9044,941
FGC plans made and decisions/recommendations not accepted4058
FGCs that did not reach agreement173220
FGCs where outcome not specified3230
Total Care and Protection FGCs held*4,4405,219
Care and Protection Family Group Conference disposals†
Seek a declaration that the child or young person is in need of care and protection (s 67)
393498
Return to Family Court569632
Care agreement383461
Ongoing service provision by NZCYPS2,1442,894
Ongoing service provision not NZCYPS1,3351,954
No further action320410
Change of caregiver..1410
No change of caregiver..2,028
Other/not specified8311,249

Court resolution and outcome services—although the intent of the Children. Young Persons and their Families Act 1989 is to divert care and protection cases, where possible, from the courts there are situations where such action is necessary. Where emergency action has to be taken to protect a child the authority comes from the court. Subsequently, these matters are resolved in the Family Court, as are situations which require court orders and those which could not be resolved at a family group conference. The court requires reports and plans before making orders. These may require services to be provided by the department.

Table 6.8. COURT RESOLUTION SERVICES

Applications for emergency orders*Year ended 30 June 1993

*Orders sought to secure the immediate safety of the child or young person.

1992 figures not comparable.

Source: Department of Social Welfare.

Custody pending determination (s 78)552
Application for medical examination (s 49)2
Seek a declaration that a young person in need of care and protection (s 67)1,469
Reports and s 128 plans submitted to court (s 186)1,212

Kiwifruit being transported to south Auckland to feed primary school students.

Table 6.9. COURT OUTCOME SERVICES*

OutcomesYear ended 30 June 1993
Source: Department of Social Welfare.
Support orders in favour of the Director-General (s 91)691
Support orders in favour of a child and family support service (s 91)68
Other support orders (s 91)208
Service orders in favour of the Director-General (s 86)1,129
Service orders in favour of a child and family support service (s 86)110
Other service orders (s 86)232
Restraining orders (s 87)492
        Total court orders current2 930

Care, custody and guardianship—children in need of care or protection can be removed from their existing caregiver for periods of time. The Children, Young Persons and their Families Act 1989 has shifted the emphasis away from longer term extended care placements to a range of options which aim to restore the usual caregiving arrangements. Where alternative placements are necessary, emphasis is put on making a placement, where possible, within the child's extended family or community.

Table 6.10. CHILDREN AND YOUNG PERSONS UNDER THE CARE, CUSTODY OR GUARDIANSHIP OF THE DIRECTOR-GENERAL

  As at 30 June
  19921993

*Children and young persons may be removed from their usual caregiver under emergency provisions and placed in the Director-General's care.

† Custody orders give authority for custody but do not change guardianship.

‡Guardianship orders suspend the guardianship rights of all other guardians for the duration of the order.

§Care services may be provided by agreement between the Director-General and the parents, guardians or usual caregivers. Temporary care agreements are limited to 28 days duration, renewable once. An extended care agreement can be made once only for a maximum of 12 months and requires the agreement of a family group conference.

Source: Department of Social Welfare

via S39:Place of safety warrant*7428
via S40:Warrant to remove*33
via S42:Search without warrant* (police only)11
via S78:Custody order pending determination†260305
via S101:Custody orders†372693
via S102:Interim custody orders†178136
via S110:Guardianship orders§1,3111,338
via S139:Temporary care agreements*263188
via S140:Extended care agreements*170192
         Total2 6322 884

Youth justice services. The purpose of the Youth Justice Service is to work with families to ensure that children or young persons who commit offences are held accountable for their actions and encouraged to develop in responsible and socially acceptable ways. Services include:

  • Managing actions with offenders up to and including the age of 16 years.

  • Managing the processes of legal proceedings, including considering all available options and complying with statutory requirements.

  • Diverting offenders from formal legal proceedings.

  • Providing services to give effect to non-court and court disposals, either directly by the Service or indirectly by an approved organisation or individual.

  • Providing custodial services.

  • Overseeing the actioning of family group conference plans or Court Orders.

These services are provided under the Children, Young Persons and Their Families Act 1989 and the Criminal Justice Act 1985.

Youth justice family group conferences—youth justice family group conferences empower families/whanau to meet with the enforcement agency and with the victims of offending to make a plan to make reparation for the offending and to modify the offenders behaviour. The conferences are convened by the Youth Justice Co-ordinator.

Table 6.11. YOUTH JUSTICE FAMILY GROUP CONFERENCES

 Year ended 30 June 1993
*There may be more than one family group conference held per child or young person for any notification. However, if a family group conference is called together to discuss the welfare of several children or young persons simultaneously, it has been counted as a separate family group conference for each child or young person.
Referrals by enforcement agency6,438
Referrals by enforcement agency that ended in FGC4,086
Referrals from Youth Court1,800
        Total referrals12,324
FGC plans made and decisions/recommendations accepted6,234
FGC plans made and decisions/recommendations not accepted119
FGCs that did not reach agreement206
FGCs with outcome not specified0
        Total Youth Justice FGCs held*6 559
Notifications with current care and protection notifications933
FGCs where one or more victims attended3,138

Table 6.12. YOUTH JUSTICE FAMILY GROUP CONFERENCE DISPOSALS*

 Year ended 30 June 1993

*A family group conference may have one or more disposal outcomes.

Source: Department of Social Welfare.

Prosecution in Youth Court65
Police warning38
Formal police caution43
Referral to care and protection system84
Reparation1,958
Verbal apology1,407
Work for victim269
Written apology1,920
FGC community work2,702
Other4,375
No further action131
Total Youth Justice FGC disposals13,758

Mangere town centre bus station.

Youth court—The Youth Court is a division of the District Court that deals solely with the offending of young people. It has a number of disposal options available to it, ranging from unconditional discharge through a full-time custodial placement on transfer to District Court. Before making any order, the Youth Court will consider any decision, recommendation or plan made by the family group conference. The Children and Young Persons Service is involved in facilitating, monitoring and reporting of several Youth Court Orders.

Table 6.13. YOUTH COURT RESOLUTIONS AND OUTCOMES

 Year ended 30 June 1993
*A child or young person may be the subject of more than one order.
Number of Youth Court orders* by type 
Suspended sentence127
Fines18
Reparation195
Disqualification from driving121
Supervision375
Community work211
Supervision with activity97
Supervision with residence120
Transferred to District Court263
Total Youth Court orders made1,477
Number of Youth Court decisions of discharge827
Number of applications for cancellation, suspension or variance of orders135

Residential care services—for serious youth justice care and protection cases the service provides residential services in Auckland (Weymouth), Hamilton (Dey Street), Wellington (Epuni), Christchurch (Kingslea) and Dunedin. The residences are used for Youth Justice services which include supervision with residence orders, custody following arrest and pending hearing, and custodial services on behalf of the Department of Justice. The residences are also used for care and protection services provided under agreements, warrants, orders and High Court wardships.

Table 6.14. ADMISSIONS TO CHILDREN AND YOUNG PERSONS' RESIDENCES

 Year ended 30 June  
 199119921993

*Includes admissions for care and protection and youth justice, excludes some admissions on day of discharge. This differs from previous practice.

Source: Department of Social Welfare.

Admissions853712923
Individuals admitted510473553
Admissions to secure unit..672932
Individuals admitted to secure unit..570389
Number absconding756360417

Adoption Services. These services include:

  • Providing information and referral services to individual adults and families.

  • Delivering support services for individuals and families relating to adoption.

  • Providing services to give effect to the Adult Adoption Information Act 1985.

  • Developing agreements in the case of inter-country adoption.

  • Counselling of individuals and families considering adoption placement.

  • Preparing, educating, and assessing adoptive applicants.

  • Reporting to the court.

  • Providing post-placement information and support services.

These services are provided under the Adoption Act 1955 and the Adult Adoption Information Act 1985.

Table 6.15. CHILDREN PLACED FOR ADOPTION

 Year ended 31 December30 June
 1990x19911992x1993*

*Figures for six months ending 30 June 1993.

Source: Department of Social Welfare

Final adoption orders made906806794369
Adoptions handled by/reported to NZCYPS:    
Adoptions by—    
    Strangers220195196113
    One parent and spouse269300280129
    Relative16516516176
    Close friend2619199
    Foster parents24163815
        Total704695694342

Table 6.16. ADULT ADOPTION INFORMATION ACT 1985, SERVICES

 Year ended 31 December
 1990x19911992x1993*

*Figures for six months ending 30 June 1993.

Source: Department of Social Welfare

Birth parents placing vetos3946269
Birth parents removing vetos1521135
Adopted persons placing vetos3539189
Adopted persons removing vetos1417158
Birth parents requesting information521416196126
Applications for original birth certificate1,7951,7531,613623

Social Policy Agency

The Social Policy Agency of the Department of Social Welfare exists to provide policy advice which contributes to well-informed government decisions on social policy. Advice and services are provided to the Ministers of Social Welfare, War Pensions and Senior Citizens, and to Cabinet.

The Social Policy Agency consists of five divisions:

  • Income Maintenance Policy—providing policy advice on the full range of income maintenance issues, including: income support issues for older people, those with disabilities, sole parents and the unemployed, and issues related to income assistance to families and people with special needs.

  • Social Services Policy—providing policy advice on a wide range of social services policy matters, including: child and family policy, health/welfare interface issues, funding of non-government providers of social services, and other social issues such as child welfare, youth justice, family violence, adoption, crime prevention and disability support.

  • Strategic Policy and Major Projects—developing high quality strategies and plans for their implementation on issues which span more than one of the department's operational businesses, are outside existing business areas, or have a wider or longer focus.

  • Social Policy Information Services—supporting the provision of an excellent policy advice service with needed, timely, and accurate information. Develops and monitors major cost models, evaluates policies and programmes, analyses information and undertakes primary and secondary research.

  • Support Service—providing quality support to the operations of the Social Policy Agency.

Also contained within the Social Policy Agency is the Senior Citizens Unit. This unit provides policy and support to the Minister of Senior Citizens and assists the Minister in advocating on behalf of senior citizens. The agency has a staff of 100 and an annual budget of $9.8 million.

Loading tapes in the main operations room at Tritec, Hutt Valley.

TRITEC

TRITEC is the information technology group of the Department of Social Welfare. This group provides the department with real time, on-line computing services including the SWIFTT (social Welfare Information for Tomorrow Today) benefit processing system and the CYPfis (Children, Young Persons and their Families information system) nation wide computing system.

The SWIFTT Benefit Processing System now includes all major benefits processed in New Zealand. In 1993, the SWIFTT system was enhanced to process benefits for national superannuation, veterans' pension and the accommodation supplement. The most current benefit information for each client, along with a history of their benefit entitlement is recorded. The introduction and development of SWIFTT has resulted in many positive effects to the delivery of income support services. Improvements have been realised in customer service, management information, productivity and cost effectiveness.

Contributors

  • 6.1-.2 Department of Social Welfare.

Special Articles

Department of Inland Revenue; Department of Social Welfare.

STAFF EMPLOYED
In Department of Social Welfare

Further information

Report of the Department of Social Welfare (Parl. paper E. 12).

Statistical Information Report. Department of Social Welfare (annual).

The Year in Review. Department of Social Welfare (annual).

Chapter 7. Health and safety

Trainees on course for the safe use and storage of chemicals, Manukau Polytechnic.

7.1 Organisation of health services

The New Zealand health system is made up of public, private and voluntary sectors which interact to provide and fund health care.

Ministry of Health. On 1 July 1993 the Ministry of Health was launched, replacing the Department of Health. The ministry has a stronger focus on providing policy advice to government. Its functions include strategic planning; health policy advice; review, specification and assessment of services; regulation and protection; and the management of health funding. Some functions which were the responsibility of the Department of Health have now been transferred to the Public Health Commission and to regional health authorities.

Regional health authorities. The four regional health authorities (RHAs) are responsible for purchasing health and disability services for New Zealanders. RHAs also manage contracts with service providers specifying the services being provided.

It is intended that the purchase of primary and secondary health care and disability services will be managed within an integrated budget. The RHAs contract with organisations such as hospitals, and individuals such as doctors, to purchase health care for all those who need it. The integration of funding will give incentives for more effective use of resources. RHAs will seek the best possible standard of health care, at the best possible price, and will have the option of purchasing health care from the public, private or voluntary sectors.

The integration of primary and secondary care is being done over a number of years. Most funding arrangements used in the past have been continued during the initial phase of the new health sector to minimise disruption to services.

Public Health Commission. The Public Health Commission advises the Minister of Health on public health matters, monitors the public health status of New Zealanders, identifies public health needs and purchases public health services.

Crown health enterprises. The 23 Crown health enterprises are service providers which were formerly part of the 14 area health boards operating as public hospitals. Individual Crown health enterprises generally provide health care and disability services for a particular area based around a 24-hour acute care tertiary hospital.

National Advisory Committee on Core Health and Disability Support Services. The committee's role is to advise the Government which core health services it should purchase on behalf of New Zealanders. The Core Services Committee was established early in 1992 and has already carried out an initial stocktake of health services provided through public funding. The committee undertakes widespread public consultation in developing policy advice for the government.

Community trusts. A number of public hospitals have been set up as community trusts where representatives from the local community help determine how health care services should be provided.

Health sector reforms. Major structural reform in the health sector was implemented on 1 July 1993. The reforms are intended to produce a health care system that is more flexible and less centralised. Dissatisfaction with the area health board system focussed on the lack of integration between primary and secondary health care, and the greater efficiencies that could be achieved by separating the roles of funding and providing health services. The new structure for the health system is now in place though transitional arrangements are continuing in some areas. The entire reform process is planned to be complete by 1995.

The goals of the reformed health sector are to ensure:

  • All New Zealanders have access to an acceptable range, level and quality of health and disability services.

  • Individuals and families are encouraged to take care of and improve their health and well-being.

  • Government assistance for the purchase of health and disability services is directed to those who are least able to make provision for themselves.

  • People with disabilities can gain access on fairer terms to services which offer improved support.

  • Health service structures, regulations and funding mechanisms are in place which encourage the efficient provision of health and disability services responsive to the preferences of users.

  • The public is protected from malpractice and unsafe products or processes.

  • Government departments and Crown agencies have adequate information to allow them to meet their obligations as health and disability services policy advisors and monitors of the sector.

  • There is an adequate database to support research and analysis concerning the health and disability services system.

  • The Government's health and disability services policies are clearly communicated to the health sector and the public.

Advertisement for private hospital care, Wellington.

Health expenditure

Health expenditure in New Zealand amounted to an estimated $5,632 million for the government financial year ended 30 June 1992. This represented 7.6 percent of New Zealand's gross domestic product and was equivalent to $1,645 expenditure per head of population. An estimated 78.9 percent of this expenditure came from public sources.

At $2.8 billion, area health board grants were the largest single item of health expenditure in New Zealand. From 1 July 1993 the boards were abolished. Their former dual roles of purchasing and provision of health care have been separated. Four regional health authorities (RHAs) were established to purchase the health care needs of their populations. In addition the Public Health Commission was established as a purchaser of population based health services. These agencies will purchase health care from the public, private and voluntary sectors.

Table 7.1. HEALTH EXPENDITURE TRENDS*

Source of funding1989-901990-911991-92

*CPI deflated.

Expressed in 1992 dollars.

Source: Ministry of Health.

  $(million)† 
Public4,4924,4844,445
Private9429701,187
        Total5,4345,4545,632

Table 7.2. STAFF EMPLOYED BY AREA HEALTH BOARDS

Staff category19911993
Source: Ministry of Health.
Dietitians140.9156.8
Laboratory technologists (qualified)751.3722.2
Laboratory technologists (unqualified)671.2617.6
Occupational therapists451.0479.0
Occupational therapy assistants153.3148.8
Physiotherapists507.7499.4
Physiotherapy assistants116.9113.5
Radiographers571.4571.3
Scientific officers117.7127.5
Social workers719.9761.3
Nursing staff (qualified)17 440.616 600.0
Nursing staff (unqualified)2 435.42 260.0
Nursing students155.0..
Clerical5 751.0..
Other (students, other professional and technical staff)11 533.8..

Regulation of health service professionals

The health service workforce is made up of a large number of professions and occupations. Some require lengthy tertiary education with enrolled entry to the profession, and others have no formal training requirements.

The Ministry of Health is concerned with the number and kinds of workers required to meet New Zealand's health service requirements; maintaining workforce data profiles for the different groups; workforce planning; and retention of health professionals.

The role of registration boards/councils is to monitor entry standards for entry to the profession, register and discipline practitioners. There are separate disciplinary tribunals for dentists, clinical dental technicians and dental technicians.

Doctors. The Medical Council of New Zealand, constituted under the Medical Practitioners Act 1968, consists of the Director-General of Health, the deans of the faculties of medicine in the Universities of Otago and Auckland, eight registered medical practitioners appointed on a representative basis, and one layperson.

The council deals with all applications for registration as medical practitioners under the Act. Until an applicant is able to satisfy the council that he or she has obtained 12 months experience as a house officer or has obtained comparable experience, registration is on a conditional basis only. Conditionally registered doctors may only practise in an approved hospital under supervision. Responsible to the council is a medical education committee which supervises the training of those conditionally registered. The number of medical practitioners on the register at 30 June 1993 was 10,787, with 7,406 holding annual practising certificates. The Medical Council also has disciplinary powers, with a right of appeal to the High Court.

Dentists. The Dental Council is governed by the Dental Act 1988. It examines and approves the qualifications of applicants for registration as dentists, promotes high standards of professional education and conduct among dentists and provides administration services for the Dentists Disciplinary Tribunal. The number of dentists on the register at 31 July 1993 was 1,865.

The Dental Act 1988 provides for a disciplinary structure with independent Complaints Assessment Committees and a Dentists Disciplinary Tribunal comprising both lay and dental members.

Nurses and midwives. The Nursing Council of New Zealand is constituted under the Nurses Act 1977 and 1986 regulations. Its primary function is the registration and enrolment of nurses and midwives. The council sets minimum standards for registration; makes recommendations on programmes leading to registration and enrolment; conducts examinations; approves schools of nursing (subject to ministerial concurrence); issues annual practising certificates; and exercises disciplinary powers. It also maintains a register of nurses for each of the following categories: comprehensive, general, general and obstetric, psychiatric, psychopaedic, enrolled nurses and midwives.

In the year ended 31 March 1993, 43,948 nurses held annual practising certificates.

All registered nurses are now trained through three-year polytechnic courses which lead to registration as a comprehensive nurse. Some polytechnics also conduct midwifery courses. Two regional health authorities offer one-year programmes leading to enrolment. All hospital-based three-year programmes have been phased out.

Post-basic education for nurses ranges from regular in-service and short clinical courses to diploma courses at polytechnics and at Massey University, and degree-level courses at Massey and Victoria Universities.

The Ministry of Health is responsible for administering the Nurses Act and provides policy analysis and advice to the Minister of Health and other health agencies. The ministry is currently involved in reviewing the Nurses Act.

The Nursing Council of New Zealand has been consulting with nurses and consumers to enhance nursing health service delivery. To this end the council has, as part of its commitment to the Treaty of Waitangi, been working in partnership with Maori to develop this process. One way of achieving this has been to develop standards for nursing education which require that nurses have a knowledge of the needs of the indigenous people of New Zealand and how their actions and attitudes can impact on people who require nursing support or care.

Dentist filing horse's teeth, Dunedin.

Psychologists. The Psychologists Board is constituted under the Psychologists Act 1981. The board is concerned with the registration and conduct of those engaged in psychology. There are 1,166 registered psychologists, with 787 holding annual practising certificates.

Physiotherapists. The New Zealand Physiotherapy Board is constituted under the Physiotherapy Act 1949. The board registers candidates for physiotherapy practice, regulates the conduct of those registered under the Act and issues ultrasonic therapy licenses.

Since 1991 full-time four-year degree courses have been conducted at the Auckland Institute of Technology and the Otago Polytechnic and a conjoint arrangement with the University of Otago. Successful completion of a qualification from one of the approved training schools will be required for registration. There are 5,293 registered physiotherapists with 1,831 holding annual practising certificates.

Occupational therapists. The Occupational Therapy Board is constituted under the Occupational Therapy Act 1949. The board is concerned with the education, registration and conduct of occupational therapists.

Since 1991, the three-year full-time training courses have been conducted at the Auckland Institute of Technology and the Otago Polytechnic. Successful completion of a qualification from one of the approved training schools is required for registration. The training school at the Central Institute of Technology, Heretaunga closed at the end of 1991.

There are 2,266 registered occupational therapists, with 844 holding annual practising certificates.

Dietitians. The Dietitians Board is constituted under the Dietitians Act 1950.

The intern training period for a dietitian is 12 months in a training school (located in Auckland, Wellington and Christchurch hospitals). Students are usually already qualified in either ‘home’, ‘consumer’ or ‘applied’ science. There are 885 registered dietitians with 298 holding annual practising certificates.

Optometrists and dispensing opticians. The Opticians Board, constituted under the Optometrists and Dispensing Opticians Act 1976, is concerned with the registration and conduct of registered optometrists and registered dispensing opticians.

There were 632 registered optometrists with 328 holding annual practising certificates and 87 registered dispensing opticians with 56 holding annual practising certificates. Optometrists are trained at the University of Auckland in a four-year full time degree course. Dispensing opticians are trained via a three year correspondence course.

Podiatrists. The Medical Auxiliaries Act 1966 provided for the constitution of a Podiatrists Board. The board sets standards of education and conduct with regard to the profession and conducts special examinations. The Central Institute of Technology conducts a three-year full-time diploma course. Students who gain this National Diploma in Podiatry are eligible for registration.

There are 495 registered podiatrists, with 185 practising. Many of those work only part time.

Chiropractors. The Chiropractic Board is constituted under the Chiropractors Act 1982, and is concerned with the registration and conduct of practising chiropractors.

There is no training available for chiropractors in New Zealand. The principal criteria for colleges applying to the New Zealand Chiropractic Board for approval are documentary evidence that the college has been accredited by the federal appointed professional accrediting agency in the United States of America, or those accrediting agencies having reciprocity with that agency. There are 410 registered chiropractors 142 of whom were licensed to practise.

Pharmacists. The Pharmacy Act 1970 provides for the registration of pharmacists in New Zealand. All registered pharmacists, except those who have a conscientious objection to membership, are members of the Pharmaceutical Society of New Zealand. The society is managed by a 12 member council. Its role is to administer the Pharmacy Act and to protect the interests of both the public and the profession.

People wishing to enter the profession study a four-year degree programme at the University of Otago and, as graduates, must undertake a year's practical experience before becoming eligible for registration as pharmacists.

At the end of July 1993 there were 3,478 pharmacists on the register. The Pharmacy Act also requires that all community pharmacies are registered with the society. At the end of July 1993 there were 1,067 community pharmacies in New Zealand employing over 2,200 pharmacists. A further 250 to 300 pharmacists were working in hospitals, government departments and the pharmaceutical industry.

Medical radiation technologists. The Medical Radiation Technologists' Board is constituted under the Medical Auxiliaries Act 1966. The board is concerned with the registration, education and conduct of those practising medical radiation technology.

There are five classes of medical radiation technology: diagnostic radiography; radionuclide imaging; therapeutic radiography; ultrasound imaging; and magnetic resonance imaging. There are 2,074 registered practitioners, 1,053 of whom hold current practising licences. The training of diagnostic radiographers transferred from a hospital-based programme to a three-year full-time polytechnic course in 1992.

Medical laboratory technologists. The Medical Laboratory Technologists' Board is constituted under the Medical Auxiliaries Act 1966. The board is concerned with the training, examination, registration and conduct of those engaged in the practice of medical laboratory technology.

1991 saw major changes to the training and education of medical laboratory technologists. The traditional ‘apprenticeship’ style training system was replaced by courses based in the education sector. The board has approved Auckland Technical Institute's National Diploma in Medical Laboratory Science for registration. Otago Polytechnic offers a Bachelor of Medical Laboratory Science. There are 2,265 full registrations, with 1,100 licensed to practise.

Dental technicians. The Dental Technicians Board is constituted under the Dental Act 1988. It has the responsibility for registering clinical dental technicians and dental technicians. In 1993, there were 616 registered with 220 practising.

GP VISITS
Percentage of people who made 6 or more visits in last year

7.2 Health benefits

The Department of Health administers Part II of the Social Security Act 1964. It deals with medical and related benefits, and provides for medical, pharmaceutical, hospital, maternity and other benefits. This section describes these benefits. From 1 February 1992, medical, pharmaceutical, and hospital benefits are targeted in three income bands, Groups 1, 2 and 3.

Medical benefits

Regional health authorities (RHAs) pay a medical benefit to doctors that covers at least part of the cost of their services to Community Services Card holders. The benefit applies to visits to general practitioners. Doctors claim the benefit direct from the RHA and receive the remainder of their fees from the patient.

The benefit for groups 1 and 2 children as well as those children who are heavy users of health care is $25 if under the age of 5 years and $20 for children 5 years and over. All children in Group 3 receive a subsidy of $15 for visits to a general practitioner.

Beneficiaries, the elderly and adults in groups 1 and 2 receive a $15 benefit. The benefit for adults who are heavy users of health care is $15. Since 1 July 1993, both Group 1 and Group 2 Community Services Card holders have received the same level of benefits. Group 2 cards will be replaced with Group 1 cards as they expire.

All patients receive a benefit of $22.00 for first referred visits to some kinds of specialist (psychiatrists, paediatricians, neurologists, radiotherapists and specialist physicians). For first referred visits to all other types of specialist the benefit for children is $11.00, and for other patients, $5.45.

Medical benefits do not apply to certain services, namely, maternity cases (which are covered by maternity benefits described later), examinations for medical certificates, and extraction of teeth by medical practitioners (although anaesthetics for this are included).

There is also an incentive bonus for general practitioners in some rural areas. There is an immunisation benefit of $7.65. This should cover the full cost of doctors' vaccinations for children under 16.

Pharmaceutical benefits

New Zealand residents are entitled, at a small cost to themselves, to medicines, approved appliances and materials which are included in the drug tariff, and prescribed by medical practitioners, midwives or dentists. A charge is made for each prescription item which is included on the drug tariff. This charge is $5 for all people in groups 1 and 2, and both adults and children who are heavy users of health care. People in Group 3 pay up to $15 per item for adults and $10 per item for children. Certain medicines are also subject to an additional manufacturers premium charge to the patient. Doctors and chemists have a list of these items.

Families pay for a maximum of 20 pharmaceutical items each year, except Group 3 families which pay a residual charge of $2 per item after the first 20.

Hospital benefits

In-patient treatment in public hospitals is free of charge for all New Zealanders. Out-patient treatment in public hospitals is free of charge for all people in groups 1 and 2 and those people who are considered to be high users of health care.

A geriatric hospital special assistance scheme and daily patient benefit is available for geriatric patients in private hospitals who need hospital care but cannot be placed in public hospital beds. The patients must contribute to the cost where possible.

People in group 3 face a $16 charge for children. Adults in group 3 pay $31.

Group 3 families pay for a maximum of five out-patient visits each year. Exemptions are made for some sorts of treatment.

Psychiatric hospitals. Treatment of patients in public psychiatric hospitals is free, and there are hospital benefits available for treatment in approved private psychiatric hospitals.

Maternity benefits

Maternity benefits cover antenatal and postnatal advice and treatment by medical practitioners and midwives, and the services of doctors and nurses at confinements in maternity hospitals or elsewhere. Recognised specialists may charge the patient over and above the benefit.

Women may receive free pregnancy and childbirth care from their general practitioners or independent midwives (through benefits paid by RHAs) or by attending antenatal clinics established in connection with public hospitals with maternity wards. Some women choose private obstetric care from a specialist.

Approximately 99 percent of births take place in hospital but independent midwives and general practitioners may provide care for those women who choose to have their baby at home. Antenatal classes, to prepare parents for their baby's arrival, are available at hospitals from independent midwives or from voluntary organisations.

All private maternity hospitals are licensed under the Hospitals Act 1957, and the Ministry of Health is responsible for ensuring that regulations regarding buildings, equipment and staff are observed.

Home nursing and home help

Home nursing is free when provided by a registered nurse or midwife employed by a Crown health enterprise or an approved organisation. There are subsidies available to associations that provide domestic help in appropriate cases to old people or families with young children. Crown health enterprises also provide home-aid as part of a range of services to reduce the need for hospital or residential-home care.

Dental services

Routine dental treatment is free for people under 16, or under 18 if still at school or otherwise dependent. Dentists under contract to RHAs provide the treatment. Some public hospitals also have dental departments which provide services to patients.

Artificial aids

There are specific benefits available in various circumstances for a range of artificial aids. These include breast prostheses, contact lenses, hearing aids, wheelchairs, artificial eyes, and wigs. Specific conditions apply in each type of case as to the suitability of the aid and the necessity for it. The benefits generally contribute to the initial cost and to replacements.

Table 7.3. EXPENDITURE ON HEALTH BENEFITS

Item1989-901990-911991-921992-93
Source: Ministry of Health.
  $(000)  
Approved institutions4,5924,5064,4993,880
Artificial aids1,5841,7722,7192,346
Pharmaceutical benefits517,247545,331556,373118,220
Primary services235,390292,154287,557583,000
Private hospital services50,54251,89055,733304,093
Provider subsidies3,8623,1573,08154,177
Referral services102,820109,873110,2193,104
Geriatric hospital patient assistance88,587107,092120,388118,432
 1,004,6241,115,7751,140,5691,187,252

7.3 Public health

Environmental health

A major function of local government is the promotion and conservation of public health. Each local authority appoints environmental health officers to carry out regular inspections and take action on any nuisances or conditions injurious to health. Specific responsibilities include the control of sanitary conditions (including overcrowding of housing) and the regulation of plumbing and drainage. There is also the control of offensive trades, environmental noise and air pollution from small industries. Local authorities are also empowered to provide public water supplies, sewage disposal systems, refuse collection and disposal, stormwater drainage, public conveniences, cemeteries, crematoria, swimming pools and other sanitary works.

The Ministry of Health also has responsibilities in public health regulation. This includes licensing of hospitals and old peoples' homes, administration of legislation on communicable and non-communicable disease control, and environmental health.

Control of medicines and drugs

The Medicines Act 1981 and the Medicines Regulations 1984 provide controls over therapeutic substances.

New medicines and related products require the approval of the Minister of Health before they can be marketed. Consent is only given when satisfactory evidence of the safety, effectiveness and quality of the product has been provided.

A medicine is defined as any substance or article, other than a medical device, which is intended wholly or principally for administration to humans for a therapeutic purpose or as a pregnancy test. Any food, cosmetic or dentifrice (tooth powder or paste) which is claimed to be effective for a therapeutic purpose is considered to be a related product.

Any material change in a medicine or a related product has to be notified to the Director-General of Health, and the changed product must not be distributed until 90 days have elapsed from the notification or until the Director-General signifies consent.

Medicines are classified as either ‘prescription medicines’, ‘restricted medicines’ (for sale by a pharmacist personally), ‘pharmacy only medicines’, or are considered safe for general sale. The legislation controls the advertising and labelling of medicines, related products and methods of treatment; the standards of manufacture, package and storage of medicines, related products and cosmetics; and the prescribing and dispensing of medicines.

Licences are required for manufacturers and others dealing with medicines. Any refusal of a licence can be appealed to the Medicines Review Committee. The committee may also enquire into an objection to a recommendation that the Minister of Health refuse to consent to the distribution of a new medicine.

Misuse of drugs. A wide range of narcotic and other drugs are strictly controlled by the Misuse of Drugs Act 1975 and the Misuse of Drugs Regulations 1977. It is a serious offence to obtain, manufacture, possess, consume, supply or offer to supply controlled drugs unless authorised under the Act.

Controlled drugs are divided into three classes. The heavier penalties are for offences involving drugs in class A, which include heroin and lysergide. Classes B and C contain many drugs which are used for medical and scientific purposes, such as morphine, pethidine and codeine. Cannabis plants, as well as its fruit and seeds, and the recently manufactured ‘designer drugs’ are included in class C.

Illegal dealing in any class of controlled drug is subject to heavy penalties varying from lengthy terms of imprisonment through to fines.

To curb drug abuse, the departments of Health and Customs and the Police have maintained the National Drug Intelligence Bureau since 1972.

Communicable disease control

The Public Health Commission and the Ministry of Health monitor data on disease incidence and prevalence and on immunisation coverage and efficacy to enable programme planning and technical support for policy development, and the fulfilment of international disease reporting requirements. They contract the purchase of vaccine to meet the requirements of the immunisation schedule and also manage the national co-ordination of responses to disease outbreaks and management of immunisation programmes. Immunisation and the control and notification of communicable diseases are undertaken by a range of health service providers.

Food safety and quality

The Food Act 1981 requires food for sale to be safe, and not labelled or advertised in a misleading manner. It provides for the analysis of any articles of food or drink for sale, and for the inspection of places where food is manufactured or sold and includes stringent measures to control the adulteration of food. Regulations lay down minimum standards for many classes of food, control additives of all kinds and deal with the labelling of food packages. There are also regulations covering utensils and appliances coming into contact with food. Sampling and inspection of foods for sale in New Zealand and investigation of food complaints is undertaken by officers of area health boards.

A Food Standards Committee meets regularly to discuss the latest technical advances in food production and to make recommendations for amendments to food standards.

Food hygiene regulations require premises to be registered and to meet minimum construction requirements. These regulations also contain provisions dealing with the maintenance of food premises and the conduct of workers. Environmental health officers employed by local authorities carry out inspections to check compliance with these regulations.

Services for older people

The focus of services for older people is assessment and rehabilitation, and continuing care.

Regional health authorities purchase services for older people from public and private providers.

Until now most of the funding for long term services for older people has been spent on hospital and rest home care. The integration of funding through Regional Health Authorities will promote the development of more flexible and comprehensive services and the extension of assessment and rehabilitation services. Home support development includes more support for informal caregivers and more flexible arrangements for daycare and respite care. The extension of assessment and rehabilitation services is recognised as the key to matching needs with appropriate services.

Eating apples to mark World Health Day.

Voluntary welfare organisations

Over the years voluntary welfare organisations have made valuable contributions to important aspects of public health. The health vote funds, through a variety of contracts and other agreements, a wide range of independent service providers and related organisations. This includes, among others, the Royal Plunket Society, the New Zealand Family Planning Association, and the New Zealand AIDS Foundation. The Department of Health has worked with these and other contracted providers to improve their accountability for the services they supply to the community. The key purchasing agencies in the health sector are the RHAs and the Public Health Commission.

Mental health

The Mental Health (Compulsory Assessment and Treatment) Act 1992 came into effect on 1 November 1992. It replaced the Mental Health Act 1969. The legislation is designed to enhance patients' treatment and rights. It includes a new definition of ‘mental disorder’, provision for community treatment orders and more comprehensive procedures for review and appeal. It is being closely monitored throughout its first year of operation, with issues being identified that need review or amendment.

Other initiatives have included:

  • Production of guidelines for mental health services on seclusion, physical restraint, reporting and review of incidents and the management of suicidal patients.

  • Production of guidelines for discharge planning for people with mental illness and a paper on planned de-institutionalisation, prepared for Crown health enterprises, regional health authorities and the Public Health Commission.

  • On-going production of the quality assurance newsletter and Te Kupenga, a quarterly newsletter to inform Maori in the mental health area about initiatives, issues and ideas.

  • Initiatives on primary mental health, youth mental health and Maori mental health. This included a hui for Maori mental health workers held in June 1993.

  • Completion of a review of the procedures assessing drunken drivers convicted under 30A of the Transport Act 1962.

  • Completion of guidelines for the treatment of people with co-existing substance abuse and psychiatric disorders.

Forensic psychiatry applies to people who come to notice through the criminal justice system. Following the Mason Committee recommendations (1988) forensic psychiatry services have continued to advance. There are now six regional forensic teams and three of the seven proposed medium secure units have been commissioned. A working party is continuing to oversee forensic psychiatry developments until the full range of services is in place throughout New Zealand.

Family health

The health of families is promoted through co-operation between the Ministry of Health, RHAs, the Public Health Commission, other government departments, voluntary agencies, Crown health enterprises and health professionals.

Family planning. Family planning advice can be obtained from general practitioners, private specialists, and from clinics operated by the New Zealand Family Planning Association in various centres throughout the country. The New Zealand Family Planning Association is contracted to the RHAs and the Public Health Commission to provide a range of services, including clinics and education. These services are aimed at assisting people to make informed and responsible choices about their reproductive and sexual health.

The New Zealand Association of Natural Family Planning is also contracted to the RHAs and the Public Health Commission. The association provides clinic and education services, covering natural family planning and fertility awareness for those for whom other family planning services are inappropriate or ineffective.

A number of Crown health enterprises 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.

Women's health. Women's health is not limited to services associated with childbearing and reproduction.

Consideration of women's health issues takes into account barriers women face in accessing health services and the provision of services that are appropriate to the needs of women. Specific groups of women such as Maori women, adolescent women and older women have particular health needs that should be catered for in health planning.

The Ministry of Health provides policy advice to the Minister of Health on current issues concerning women's health. Those issues include contraception, infertility, pregnancy and childbirth services, terminations, breast cancer detection and cervical screening. Two breast screening pilot programmes have been established to assess the effectiveness and acceptability of mammography screening in New Zealand.

The Cervical Screening Programme is being nationally co-ordinated, and implemented by Crown health enterprises. The programme includes a cervical cytology register which acts as a recall and back-up system for women. The national programme aims:

  • To reduce by 1995 the death rate from cervical cancer by 20 percent in Maori women aged 20 to 69 years, and by 10 percent or more in Pacific Island and pakeha women aged 20 to 69 years.

  • By the year 2000 to reduce the incidence of invasive cancer to fewer than 180 cases annually.

Women's health services are provided by Crown health enterprises health professionals and a large variety of community and consumer groups. An advisory committee on women's health provides advice and suggests priority areas to the Minister of Health.

Child health. A comprehensive range of child health services which focus on disease prevention and health promotion are purchased by RHAs. The services include newborn screening, early childhood development, health screening and surveillance, immunisation, parent education, vision and hearing testing, health promotion and support for children with special needs. The majority of well child care services are provided by Crown health enterprises and the Royal New Zealand Plunket Society. Examinations by family doctors are recommended at about six weeks of age, and whenever there is anxiety over acute or chronic illness or development. The Plunket Society provides the major proportion of preventive community health nursing services to infants and pre-school children although some supervision is also undertaken by public health nurses. In addition to nursing services provided in the first year, developmental health checks are recommended at 18 months and three years. Hearing screening by impedance audiometry in the pre-school period is also recommended.

When necessary children are referred to family doctors, or to medical officers or community paediatricians employed by Crown health enterprises.

Infant mortality was 8.4 deaths per 1,000 live births. This is one of the lowest rates New Zealand has ever achieved, and is believed to be due to a dramatic reduction in cot death following the release of the preliminary findings of the New Zealand cot death study.

The Children's Health Camps Board is contracted by the RHAs to provide short-term residential and non-residential care for children with minor health problems, both physical and behavioural. Referrals to the camps are primarily made by public health nurses. The Ministry of Education maintains school classes in the camps, with emphasis on remedial teaching. An increasing number of parents are attending residential and non-residential courses to improve parenting skills.

A consultative service is provided to schools by public health nurses, with special emphasis on health education and health promotion.

The differing hospital discharge rates for Maori and non-Maori children, illustrated in the table below, reflect differing usage of health services by these groups. Improving usage of primary well child care health services through specifically targeted programmes, such as that provided by the Tipu Ora Trust, is a priority area for improving the health status of Maori children. The maintenance and improvement of child health services is one of the priorities identified by the Government in the policy guidelines to RHAs.

Table 7.4. CHILDREN'S PUBLIC HOSPITAL DISCHARGE RATES 1992*

PopulationAge group (years)
<11-45-910-14

*Per 1,000 mean population.

Source: Health Information Service.

Maori949.3182.184.852.9
Non-Maori1051.6155.582.355.4
    Total1027.3161.482.854.9

The Ministry of Health provides policy advice to the Minister of Health relating to personal health services for children and their families. The provision of public health policy advice and the purchase of population based promotion and disease prevention services is the responsibility of the Public Health Commission. The four RHAs purchase both disease prevention and treatment services, provided by a range of health care providers including health professionals and community groups.

Immunisation. Immunisation against a range of diseases is free and is usually performed by family doctors or their practice nurses, although some immunisations are given by public health nurses.

A computer image capture system used in a diagnostic laboratory, Auckland. Images can be printed out and faxed to other laboratories to be identified.

Table 7.5. RECOMMENDED IMMUNISATION SCHEDULE

AgeVaccine

*Diphtheria, tetanus, whooping cough.

Diphtheria, tetanus.

Hepatitis B; immunoglobulin and vaccine are given to children of carrier mothers at birth.

§Measles, mumps, rubella.

Source: Ministry of Health.

6 weeksTriple (DPT)*
Hepatitis B‡
3 monthsTriple (DPT)*
Poliomyelitis
Hepatitis B
5 monthsTriple (DPT)*
Poliomyelitis
12-15 monthsMMR§
Hepatitis B
18 monthsDouble (DT)†
Poliomyelitis
5 yearsPoliomyelitis
Form 1 girlsRubella
15 yearsTetanus

Table 7.6. INFANT IMMUNISATION LEVELS BY VACCINE TYPE, 1992

Vaccine typePercentage*

*National averages of RHA levels (unweighted).

Source: Ministry of Health.

Diphtheria/tetanus/whooping cough (DPT)80.6
Diphtheria/tetanus (DT)72.9
Hepatitis B66.6
Poliomyelitis67.6
Measles82.0

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, our health is a result of how we behave.

Health education is the basis of health promotion and aims to foster individual and community self reliance.

Smoking. Tobacco products consumption per adult in 1992 fell 10.7 percent below the 1991 level to a 72-year low of 1,600 cigarette equivalents per adult, among the lowest for developed countries. Doorstep surveys of 10,000 persons during 1992 showed that 27 percent of adults (27 percent of men and 27 percent of women) and 30 percent of 15-24 year olds, regularly smoked either manufactured or hand-rolled cigarettes.

Over 4,000 deaths in 1989 were estimated to be due to the smoking of cigarettes, comprising 79 percent of all drug deaths. Over 250 deaths per year are estimated to be due to passive smoking.

Expenditure on mass media tobacco advertising reduced 80 percent after the Smoke-free Environments Act took effect in December 1990, although some sponsorships are still permitted. One prosecution was taken in 1992 under the Smoke-free Environments Act 1990. At ordinary wage rates before tax, to earn 20 manufactured cigarettes required 21 minutes work in 1960,10 minutes in 1980, 18 minutes in 1990 and 21 minutes in 1992.

TOBACCO CONSUMPTION
Annual per capita consumption of tobacco products

Alcohol

In New Zealand the excessive consumption of alcohol is a major personal and public health issue. A major survey in 1990 found that 84 percent of the population aged 15-45 years had consumed alcohol in the last year. Most people consumed about four to five drinks a week in a safe and responsible manner. Within the group surveyed as having consumed alcohol in the last year, the drinking patterns for men and women are different, as shown in the following table:

Table 7.7. DRINKING PATTERNS

CategoryFemale drinkersAlcohol consumed by womenMale drinkersAlcohol consumed by men
Source: Alcohol Research Unit, Auckland University.
  Percentage  
Frequent at home drinkers30481226
Young heavy drinkers12302036
Very young heavy drinkers2526
Light drinkers38115928
Light drinkers decreasing consumption186--
Spirit drinkers decreasing consumption--74

The production of alcohol for consumption in New Zealand has continued to fall since 1978. The largest decrease has been for spirits which have dropped from 15.8 million litres in 1979 to 10.9 million litres in 1992 (a reduction of 31 percent). The amount of beer available for consumption has decreased by 9 percent between 1978 and 1992. The amount of wine available for consumption increased by 18.7 percent between 1990 and 1991 probably due in part to the greater stock held by an increased number of outlets provided for under the new Sale of Liquor Act, 1989. The amount of wine available for consumption has since decreased by 5.1 percent between 1991 and 1992 to 55.3 million litres, still slightly up on the previous peak of 54.7 million litres in 1986.

Alcohol is not the only drug that people use. A 1990 survey of drug use in New Zealand revealed that the most common pattern was for people to have used alcohol, tobacco and cannabis (33 percent). An equal percentage had used alcohol and tobacco or alcohol alone (23 percent) and a small number used alcohol and cannabis (8 percent).

In 1989, 758 deaths were recorded as attributable to the use of alcohol; 20 percent of all drug related deaths. Tobacco was the principle cause of 79 percent of these deaths. In 1990 alcohol was a factor in 44.5 percent of the 638 fatal road crashes.

Policy advice and co-ordination of health promotion and treatment services is provided by the Department of Health, the Alcohol Advisory Council of New Zealand (ALAC) and the New Zealand Drug Foundation. During 1991 ALAC was reviewed and it was agreed that its primary goal should be promotion of moderation in the use of alcohol and the development and promotion of strategies which will reduce alcohol related problems.

ALAC continues to fund a multi-disciplinary alcohol research unit in association with the Health Research Council and the University of Auckland School of Medicine, and also supports other independent research projects.

The majority of alcohol dependence cases are dealt with on an outpatient basis. In 1990, 2,337 people were admitted to a gazetted treatment centre and about 9,000 new-to-agency patients received outpatient treatment for alcohol use disorders. The cost of these treatment services was about $30 million of which $22 million was funded through the Department of Health.

In the health promotion area, ALAC funds mass media advertising to raise the level of awareness of alcohol-related problems, and is the lead organisation in encouraging host responsibility both on licensed premises and at private functions. The council has also sponsored an alcohol and drug education programme in schools, which is currently being promoted by the colleges of education. A wide variety of pamphlets and posters and more specialised information is available through the regional offices and the main library at the national office of ALAC. Contributions are made to the funding of community workers and groups around the country who are working to promote healthy choices about alcohol in their areas, such as drink-drive programmes.

The council also provides to the Government, government departments and other agencies, advice and statistics on control policies, treatment methods and facilities, and other alcohol-related matters.

See also section 22.1, Controls on trading.

ALCOHOL AVAILABLE FOR CONSUMPTION
Per person aged 15 years and over

Dental health

New Zealand's dental health service combines a school dental service for children, dental benefits for adolescents, and private practice for adults. Major hospitals also provide dental services for inpatients and other special groups. The skills of dentistry are taught at a school for dental therapists in Wellington and at the School of Dentistry, University of Otago.

School Dental Service. This service works to maintain a high standard of dental health of pre-school and school children by care, starting at the age of two-and-a-half and continuing through to the highest class at primary or intermediate school.

Dental therapists, after completing the two-year training course, provide children with routine dental care.

The dental care involves examination, disease prevention measures, fillings in deciduous (first) and permanent teeth, extraction of teeth and dental health education. Some children are referred to dentists for additional care which is beyond the scope of the dental therapists. The cost of such care is usually met as a special dental benefit. Orthodontic treatment and some other specialist services can only be obtained privately.

For children leaving the care of the School Dental Service at the end of their primary schooling, the number of filled teeth was down to an average of 1.7 per child in 1991, and 42 percent had no fillings at all in their permanent teeth.

Dental services for teenagers. Children who remain in full time study after age 16 continue to receive dental benefits up to age 18.

Dental research. The dental unit of the Health 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.

Fluoridation. By 1980 about 55 percent of the population lived in areas with fluoridated water supplies. In recent years several towns and cities have decided to cease fluoridation. As a result of the widespread availability of fluoride from sources other than fluoridated water, principally toothpaste, the difference in dental decay rates in fluoridated and non-fluoridated communities has decreased.

Health/welfare continuing care services

Responsibility for the funding and co-ordination of continuing care services for older people and people with physical, psychiatric and intellectual disabilities has long been a cause of confusion and concern. Area health boards, the Departments of Health and Social Welfare, and the private and voluntary sectors all have responsibilities in the provision, co-ordination and funding of some aspects of continuing care services. This has resulted in problems of duplication, overlap and role clarity. The area is under review and two principles have been identified to underlie the provision of future continuing care services, namely:

  • All of a client's funding for a particular purpose should be located in one agency.

  • There should be a separation of funders or purchasers of services from providers.

New Zealand Health Information Service

The Ministry of Health through the New Zealand Health Information Service (NZHIS) manages the national health information service and provides the health sector, the government, the public and health professionals and health managers with the information they need to manage the health service.

The four key activities of the NZHIS are:

  • The maintenance, management and development of the national health information collections.

  • Providing a range of specialised service and information to the Ministry of Health and clients within the health sector and the public.

  • Oversight and co-ordination of health information activities.

  • Providing advice and support on information and research to the health sectors.

The NZHIS was established in November 1993.

Information network and core system. A network of information services is accessible to health service and health care providers throughout the country.

National minimum dataset. The NMDS provides the basic data on health services and health status. Information in this database is used to provide analyses of trends in health status, use of services, and patterns of morbidity and mortality.

Documentary databases. In addition to the statistical data, the NZHIS also provides users with access through a documentary database service to a range of other health information, including information held on MEDLINE (United States National Library of Medicine).

Standards. A crucial role for the NZHIS is the development and monitoring of standards for information in the health sector. Work is carried out to quality assure statistical information supplied by hospitals and other providers and to develop a range of suitable information technology standards covering the exchange of information in the health sector. Privacy standards have also been prepared.

Publications. The NZHIS collects, analyses and disseminates national health information. The information is based on statistical collections of mortality, hospital inpatient morbidity and other institutional based data and data from health surveys and information provided by the primary healthcare sector.

Information is presented in a series of annual reports of Hospital and Selected Morbidity Data, Mental Health Data, Cancer Data, Mortality and Demographic Data, Fetal and Infant Death Data, brochures and other publications.

This section undertakes specific research and analysis on a cost-recoverable basis. One of its larger projects, the household health survey, continues this year. Information collation from the survey is now complete and the first published data is now available.

Some of the projects planned for the 1993-94 year include:

  • An investigation of teenagers' attitudes to sexually transmitted disease.

  • An analysis of maternity benefits data.

  • A literature review of consumer complaints programmes.

  • A disability services costing study.

  • Research on consumer understanding of food labelling.

  • A study on the iron and iodine status of New Zealanders.

  • Analysis of the household health survey.

Health Research Council of New Zealand. The Health Research Council of New Zealand was constituted as a body corporate by the Health Research Council Act 1990. The mission of the council is to improve human health by promoting and funding health research. Research funded by council covers a spectrum stretching from basic biomedical research to applied public health research. The HRC Act requires the council to pay particular attention to health issues that affect Maori people and to ethical issues in relation to health research.

The functions of the Health Research Council are set out in the Health Research Council Act 1990 and include:

  • Advising the Minister of Health on national health research policy.

  • Administering funds granted to the Council for the purpose of implementing national health research policy.

  • Fostering the recruitment, education, training and retention of those engaged in health research in New Zealand.

  • Initiating and supporting health research.

  • Promoting and disseminating the results of health research in ways that will be most effective in encouraging their contribution to health science, health policy and health care delivery.

The direct funding from government in 1992-93 for the council's work is $17.76 million. In determining priorities for health research, the council is required to consult widely, including with other persons who fund or produce research in the public and private sectors.

Causes of death

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 to which a death is classified, but to obtain more accurate data reference is also made to all autopsy reports received, cancer case registrations, coroners' reports, hospital case summaries, Ministry of Transport and Water Safety reports.

Medical practitioners certified 83 percent of deaths registered in 1991, and 17 percent were certified by coroners. Of the deaths certified by doctors, 4 percent were subject to autopsy, compared with 49 percent of deaths certified by coroners. Overall, 12 percent of all deaths had autopsies performed.

New Zealand adopted the ninth revision of the International Classification of Diseases in 1979 and the ninth revision clinical modification in 1988. As a result, care must be taken when comparing figures since 1988 with those for previous years.

Table 7.8. MAJOR CAUSES OF DEATH*

Cause of deathNumber of deathsRater per million of mean population
198919901991198919901991

*Further details of causes of death are available from Health Statistical Services

Source: Health Information Service.

Malignant neoplasm6,6316,7286,7881,9831,9912,011
Diabetes mellitus450411402135133119
Chronic rheumatic heart disease118126104353731
Hypertensive disease215184246645473
Ischaemic heart disease7,0356,8026,7402,1042,0131,997
Other forms of heart disease1,0371,0961,132310324335
Cerebrovascular disease2,6692,5992,661798769788
Disease of arteries, arterioles, and capillaries609632649182187192
Pneumonia1,1659751,095348289324
Bronchitis, emphysema, and asthma601454425180134126
Other diseases of respiratory system1,1711,180963350349285
Peptic ulcer21420337646011
Cirrhosis of liver107109132323239
Nephritis, nephritic syndrome and nephrosis2112491863745
Congenital anomalies208187201625560
Birth injury, difficult labour, other anoxic and hypoxic conditions, and other causes of perinatal mortality173172157525147
All other diseases2,4422,3982,973730710881
Motor vehicle accidents799762681239225202
All other accidents and external causes724715608217212140
Suicide and self-inflicted injury465455474139135140
        Total, all causes of death27 04426 43726 4868 0897 8237 846

SELECTED CAUSES OF DEATH
Age-standardised rate

Ischaemic heart disease, malignant neoplasms (cancer), and cerebrovascular disease are the leading causes of death in New Zealand and collectively account for approximately 60 percent of all deaths: ischaemic heart disease accounts for 26 percent of deaths, malignant neoplasms for 25 percent, and cerebrovascular disease for 10 percent.

Further statistics on causes of death can be found in section 7.5, Accidents. For general health statistics see section 7.4, Hospitals.

Cancer. In New Zealand one death in four is caused by cancer.

Table 7.9. DEATHS FROM CANCER. 1991

Age groups, in yearsMalesFemales
NumberRate per 100 000 of population at ages givenPercentage of total deaths at ages givenNumberRate per 100 000 of population as ages givenPercentage of total deaths at ages given
Source: Health Information Service.
Under 564.21.785.93.3
5-14145.416.283.217.4
15-24248.52.7165.811.2
25-4414729.016.521040.340.0
45-64996317.436.4933299.252.9
65 and over2,3511 468.325.22,075948.020.9
All ages3,538213.025.63,250190.925.6

A detailed report on cancer mortality and morbidity in New Zealand is published annually by the Health Information Service. It covers cancer registrations and deaths and surveys all cases reported to the National Cancer Registry.

Ninety-five percent of deaths from cancer are at 45 years of age or above, and 68 percent at 65 years of age or above. The lungs continue to be the major site in male deaths from cancer with 6 percent of all male deaths caused by lung cancer. The breasts are the major cancer site in females and accounted for 5 percent of all female deaths.

Table 7.10. DEATHS FROM CANCER AT SELECTED SITES

SiteSexNumberRates per million mean populations
198919901991198919901991
Source: Health Information Service.
Buccal cavity and pharynxM604144362526
 F272129161217
OesophagusM114110114696669
 F546765323938
StomachM180186199109111120
 F132116103786860
Large intestineM306321341185192205
 F379366386224214222
RectumM219192210132115126
 F160140169958299
Bronchus, trachea, and lungM896901869542539522
 F411433426243254249
BreastM383252
 F605633588358371344
Cervix uteriF85100106505962
Corpus uteriF516652303930
Ovary, fallopian tube, and broad ligamentF1521811619010694
ProstateM425436423257261254
Bladder and other urinary organsM10610194646056
 F484854282832
Skin, all formsM123115136746982
 F817281484247
BrainM7695125465775
 F596879354046
Lymphosarcoma and reticulum-cell sarcomaM20211212137
 F23171114106
LeukaemiaM136120116827270
 F1059599625658
All other and unspecified sitesM831899852503538512
 F767768847454450495
        Total cancer deathsM349535463538211321232126
 F313931913250185718701899

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 deaths consist of stillbirths and deaths in the first week of life. The late foetal death (stillbirths) and the perinatal mortality rate are calculated per 1,000 total births (stillbirths plus live births), while the death rate for neonatal and infant death is calculated per 1,000 live births.

Table 7.11. MAORI AND NON-MAORI PERINATAL MORTALITY RATES, 1991*

Category of deathMaoriNon-MaoriTotal population
NumberRateNumberRateNumberRate

*Per 1,000 total births (stillbirths plus live births).

Source: Health Information Service.

Late foetal253.62364.42614.3
Early neonatal223.21823.42043.4
Perinatal527.54338.14858.0
Neonatal334.72314.32644.4
Post-neonatal639.01773.32404.0
Infant9613.84087.75048.4

INFANT MORTALITY
Deaths of infants under 1 year

Table 7.12. INFANT MORTALITY RATES FOR SELECTED OECD COUNTRIES, 1990*

CountryPerinatal mortality*Infant mortality

*Rate per 1,000 total births.

Rate per 1,000 live births.

Source: OECD Health Data, 1993.

Australia10.38.2
Austria6.97.4
Germany6.07.1
Greece11.99.7
Iceland6.35.5
Japan5.54.6
New Zealand7.48.4
Portugal12.611.0
Switzerland7.76.8
United Kingdom8.17.9

The principal causes of infant mortality are shown in . The cause of death has been selected according to the main disease affecting the neonate, with a specific code for sudden infant death syndrome.

Table 7.13. PRINCIPAL CAUSES OF INFANT MORTALITY FOR MAORI AND NON-MAORI, 1991

Cause of deathMaoriNon-MaoriTotal population
Number of deathsRate per 1000 live birthsNumber of deathsRate per 1000 live birthsNumber of deathsRate per 1000 live births
Source: Health Information Services.
Infectious and parasitic diseases--50.0950.08
Malignant neoplasm--10.0210.02
Diseases of the nervous system--120.23120.20
Diseases of the circulatory system--40.0840.07
Diseases of the respiratory system20.29150.28170.28
Diseases of the digestive system10.1420.0430.05
Congenital anomalies182.591232.321412.35
Perinatal causes213.021332.511542.57
Sudden infant death syndrome486.91991.871472.45
Accidents, poisonings, and violence (external causes)50.72140.26190.32
Remainder (all other causes)10.14--10.02
        Total, all infant deaths under one year9613.824087.695048.40

Maternal deaths. Direct maternal deaths totalled 7 in 1991, with a rate of 1.2 per 10,000 live births.

Abortion. Abortion is permitted by New Zealand law in certain circumstances. The main conditions required 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, two specially appointed consultants both believe that the provisions of the law can be met, an authorising certificate is issued.

To supervise the workings of the abortion law a three-member committee, known as the Abortion Supervisory Committee, was established under the Act.

New Zealand's abortion law is kept under review by the committee, which also licenses institutions for the performance of abortions, appoints certifying consultants to consider cases, and liaises with all those providing facilities, both public and private.

Counselling advisors also monitor counselling services for women seeking advice about their pregnancy and keep the committee informed on related issues.

Table 7.14. ABORTIONS ACCORDING TO AGE GROUP

Age group199019911992P
PercentageNumberPercentageNumberPercentageNumber
Source: Abortion Supervisory Committee
11------
12-30.034--
130.190.0670.023
140.4490.28320.3338
151.31491.331541.15132
162.52852.783222.64302
174.34844.304993.87443
185.66275.115925.38616
196.16816.167156.26717
20-2429.5329029.70344329.263353
25-2923.2258322.32258722.932653
30-3415.8176615.91184416.211858
35-398.69549.3310829.171051
40-442.42782.572982.60298
45 and over0.1150.13150.1821
        Total100.0011173100.0011594100.0011460

Table 7.15. GROUNDS ON WHICH ABORTIONS WERE AUTHORISED

Grounds19881989199019911992P
Source: Abortion Supervisory Committee.
Serious danger to physical health1622262114
Serious danger to mental health98059911108871132111232
Combination of serious danger to physical and mental health10210712610060
Substantial risk of abnormal child4235446683
Incest---1-
Offence under s 131 Crimes Act1----
Woman severely subnormal11111
Serious danger to mental health and risk of abnormal child67121837866
Serious danger to physical and mental health and substantial risk of abnormal child4233-
Serious danger to mental health and offence under s. 131 Crimes Act2--11
Serious danger to mental health and woman severely subnormal-11-1
Danger to mental, physical health and woman severely subnormal-----
Other multiple grounds4-222
        Total1004410200111731159411460
Factors of alleged rape taken into account8383665652

Table 7.16. ABORTION RATES AND RATIOS: NEW ZEALAND AND OTHER LOW FERTILITY COUNTRIES

Country*YearRate per 1000Ratio per 1000
Total populationWomen 15-44BirthsBirths plus abortions

*With the exception of New Zealand, Sweden, England and Wales data has been obtained from the Alan Guttmacher Institute.

Source: Abortion Supervisory Committee.

New Zealand19923.314.2196164
Australia19883.816.2253202
Canada19882.610.6176150
Denmark19913.817.6307235
England and Wales19913.315.3239193
Finland19902.611.5200167
France19902.812.6212175
Germany19901.25.810898
Japan19903.717.0368269
Netherlands (residents only)19881.25.19688
Norway19913.616.7255203
Scotland19882.19.7169145
Sweden19914.220.4289224
United States19886.527.3401286

7.4 Hospitals

Hospital and community health administration

Crown health enterprises (CHEs) are responsible for providing health services in the health sector since 1 July 1993. CHEs are formed around existing large hospitals.

CHEs are expected to compete with other health care providers for contracts from the regional health authorities (RHAs). With the Public Health Commission, the four RHAs will be the country's health care purchasing organisations.

Licensing and inspection of private hospitals are delegated the responsibility of the Ministry of Health.

Hospital part-charges apply to a range of outpatient services and are targeted according to income (see 7.2, Hospital benefits). The Crown Health Enterprise Monitoring Unit is responsible for monitoring the performance of CHEs.

Public hospital patients

In 1991, there were a total of 337 hospitals in New Zealand; 146 of these were public hospitals and 191 private. The total number of hospital beds totalled 26,008,19,125 of which were in public hospitals and 6,963 were in private. The number of beds available per 1,000 people was 7.7, with the average number of occupied public hospital beds numbering 15,360.

Principal diseases and disabilities. Detailed statistical information is supplied to the Ministry of Health (New Zealand Health Information Service) about all patients discharged from, or dying in, public hospitals in New Zealand.

shows the principal diseases and injuries treated in public hospitals in 1991, together with average days stay and conditions as a percentage of total cases. The disease headings are the 50 disease group categories 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.

Length of stay in public hospitals. The average length of stay in public hospitals in 1992 was 8 days. Among sufferers from specified diseases, the longest average stays were made by those with psychoses (55 days), cerebrovascular disease (38 days) other diseases of the nervous system (28 days).

Table 7.17. AGE AND SEX OF INPATIENTS ADMITTED TO PUBLIC HOSPITALS, 1992

Age groupMalesFemalesTotal
Source: Health Information Service.
0-444,00636,39680,402
5-97,1455,26612,411
10-146,0724,73510,807
15-197,56714,11221,679
20-248,62927,84236,471
25-297,19434,44041,634
30-347,06929,35636,425
35-396,19114,81621,007
40-446,2348,65414,888
45-496,2436,87713,120
50-547,1596,88014,039
55-597,9166,88114,797
60-6410,6868,65619,342
65-6913,48710,53524,022
70-7413,11411,88725,001
75-7912,06912,76624,835
80-848,46210,80819,270
85+5,4699,53915,008
        Total184 712260 446445 158

Table 7.18. DISEASES AND CONDITIONS TREATED IN PUBLIC HOSPITALS (INCLUDING RE-ADMISSIONS, EXCLUDING DAY CASES) DURING 1992

Diagnostic groupTotal discharges or deaths in public hospitalsPercentage of all casesAverage stay (days)

*Carcinoma-in-situ, and malignant neoplasm of lymphatic and heamatopoietic tissue.

†Neoplasms of uncertain behaviour or neoplasms of unspecified nature.

‡Includes diseases of veins and lymphatics.

Source: Health Information Service.

Infectious and parasitic diseases (except tuberculosis)7,2591.65
Tuberculosis3490.114
Malignant neoplasms*22,5655.010
Benign neoplasms†2,9460.76
Disorders of thyroid gland4380.17
Diabetes mellitus3,4290.813
Other endocrine, nutritional, metabolic and immunity disorders19950.49
Diseases of blood and blood-forming organs2,6500.66
Psychoses5,5251.255
Other mental disorders4,1860.915
Disorders of the eye and adnexa6,3061.43
Diseases of ear and mastoid process3,5880.82
Other diseases of the nervous system3,1240.728
Acute rheumatic fever and chronic rheumatic heart disease6190.111
Ischaemic heart disease16,3643.77
Hypertensive disease and other forms of heart disease11,6552.610
Cerebrovascular disease8,3351.938
Diseases of arteries, arterioles and capillaries3,7880.813
Other diseases of circulatory system†3,9090.97
Acute respiratory infections and influenza6,7451.53
Pneumonia6,6051.511
Chronic obstructive pulmonary disease and allied conditions13,9203.16
Chronic disease of tonsils and adenoids3,6310.82
Other diseases of respiratory system2,7160.69
Diseases of oral cavity, salivary glands and jaws1,3580.32
Diseases of oesophagus, stomach and duodenum3,7060.86
Appendicitis3,7370.84
Hernia of abdominal cavity4,0490.93
Non-infective enteritis and colitis and other diseases of intestines and peritoneum8,9382.06
Other diseases of digestive system6,8611.57
Diseases of urinary system5,4371.26
Diseases of male genital organs3,5240.85
Diseases of breast and inflammatory disease of female pelvic organs2,5190.63
Other disorders of female genital tract6,8331.54
Pregnancy and complications of pregnancy, childbirth and the puerperium (except abortion)67,74815.14
Pregnancy with abortive outcome5,5431.22
Diseases of skin and subcutaneous tissue5,9921.39
Arthropathies and related disorders, dorsopathies and rheumatism except rheumatic fever14,2473.210
Osteopathies, chondropathies and acquired musculoskeletal deformities2,2540.511
Congenital anomalies5,0051.18
Certain conditions originating in the perinatal period11,9572.79
Symptoms, signs and ill-defined conditions23,2815.26
Fractures19,7404.411
Dislocations, sprains and strains of joints and adjacent muscles2,1160.54
Intracranial injury (except skull fracture)4,9281.13
Laceration and open wound6,1241.44
Burns1,1260.310
Poisoning by drugs, medicaments and non-medicinal substances2,6010.64
Other injuries and adverse effects, and late effects of injuries85,61319.17
        All conditions447 884100.08

The only bed of its kind in New Zealand—a $60,000 bed for burns patients donated to Middlemore hospital by the New Zealand Fire Service.

Injury cases. During 1991 the four largest categories of injury came under the headings accidental falls' and ‘other accidents’ (which includes, for instance, accidents caused by cutting and piercing instruments, machinery, falling objects, fire and hot objects); ‘motor vehicle traffic accidents’ and ‘surgical and medical complications and misadventures’. More than one in four patients had been injured in a fall of some kind.

Table 7.19. INJURY CASES TREATED AS INPATIENTS IN PUBLIC HOSPITALS (INCLUDING READMISSIONS), 1992*

Cause of injuryTotal casesPercentage of all injury cases

*Year ended 31 December.

Source: Health Information Service.

Transport—  
    Railway24
    Motor-vehicle traffic7,14311.8
    Motor-vehicle non-traffic7301.2
    Other road vehicles1,7152.8
    Water1930.3
    Air980.2
    Vehicle accidents not elsewhere classifiable12
        Subtotal, transport9 91516.4
Non-transport—  
    Accidental poisoning8341.4
    Accidental falls16,44527.2
Surgical and medical complications and misadventures11,03218.3
Other accidents11,49919.1
Late effects of accidental injury3,8696.5
Adverse effects of drugs, medicaments, and biological substances2,0333.4
Suicide and self inflicted injury2,4764.1
Homicide and injury purposely inflicted by other persons2,0303.4
Legal intervention by police9
Injury undetermined whether accidentally or purposely inflicted1690.3
Injury resulting from operations of war13
        Subtotal, non-transport50 43683.6
        Total60 351100.0

Accidents at home. A high percentage of non-transport accidents, especially those involving young children and elderly people, occur at home. Domestic accidents are included by type of accident in the previous section, and are listed separately in the table below. shows the number of patients discharged from, or dying in, public hospitals after treatment for injuries from accidents at home. It includes only inpatients in public hospitals, not the large numbers of home accident cases treated in outpatient departments, doctors' surgeries, and at home.

Table 7.20. INPATIENTS IN PUBLIC HOSPITALS AFTER ACCIDENTS AT HOME, 1992*

Cause of accidentTotal patients

*Year ended 31 December.

Source: Health Information Service.

Accidental poisoning by— 
    Drugs and medicaments394
    Petroleum products and other solvents55
    Agricultural and horticultural preparations other than plant foods or fertilisers39
    Noxious foodstuffs and poisonous plants31
    Other solid and liquid substances17
    Gases and vapours10
Accidental falls6,780
Struck by falling objects99
Accidents caused by cutting and piercing instruments1,424
Accidental burns165
Accidents caused by foreign bodies285
All other and unspecified accidents2,215
        Total11 514

For further accident statistics, see section 7.5, Accidents.

Psychiatric hospitals and hospitals for the intellectually handicapped

In 1991, 12 psychiatric hospitals and five hospitals for the intellectually handicapped were controlled by area health boards. Ashburn Hall is the only privately administered psychiatric hospital. In addition there were 16 psychiatric units attached to public hospitals. Lake Alice Hospital, near Marton, has provision for the care of maximum security patients from throughout the country.

The Mental Health (Compulsory Assessment and Treatment) Act 1992 which came into effect on 1 November 1992 removed the requirement for psychiatric hospitals to be separately designated from public hospitals. Psychiatric security institutions will continue to be separately designated.

A detailed report, Mental Health Data, is published annually by the New Zealand Health Information Service. It contains administrative and clinical data about first 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, ethnicity and length of stay.

Table 7.21. RATES OF FIRST ADMISSION TO PSYCHIATRIC HOSPITALS*

YearAgesTotal all ages
0-910-1920-2930-3940-4950-5960 and over

*Per 100 000 mean population. Year ended 31 December.

Source: Health Information Service

1987—        
    Maori1517039325311710351180
    Non-Maori1311121814912798149127
1988—        
    Maori521048827517013190218
    Non-Maori10108222159127103151129
1989—        
    Maori121794442601539192197
    Non-Maori119522515712995133124
1990—        
    Maori1216549633829215637230
    Non-Maori788240213165140136142
1991—        
    Maori41684703181979193208
    Non-Maori78022517412298125121

Admissions. The total number of admissions to psychiatric care during 1991 was 14,539. This total was made up of 4,360 first admissions, and 10,179 readmissions. Included in the readmission figure were 1,429 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 hospitals for the intellectually handicapped has been steadily declining since 1944. The downward trend reflects advances in treatment and, in more recent years, the provision of alternative forms of care.

During 1991, 82 percent of first admissions and 77 percent of readmissions were on an informal (voluntary) basis. shows that the two leading diagnostic reasons for entering inpatient care for all psychiatric admissions were schizophrenic psychoses and affective psychoses.

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 three-week basis, it was not found necessary to keep him or her for a longer period as a committed patient.

During 1991 there were 14,757 discharges from psychiatric hospitals and hospitals for the intellectually handicapped, psychiatric units of public hospitals and institutions treating alcoholism and drug addiction. Of these, 8,207 were discharged from psychiatric hospitals, 215 from hospitals for the intellectually handicapped, 5,179 from public hospital psychiatric units, and 1,155 from institutions licensed under the Alcoholism and Drug Addiction Act 1966.

Approximately six out of every 10 patients leaving hospital in 1991 had a stay of fewer than 30 days.

PSYCHIATRIC RESIDENT RATES
Rate per 100,000 population

Table 7.22. DISCHARGES FROM PSYCHIATRIC HOSPITALS, 1990*

DiagnosisOutrightLeaveNot committed
NumberMean stay (days)NumberMean stay (days)NumberMean stay (days)

*Year ended 31 December.

Source: Health Information Service.

Senile and pre-senile organic psychotic conditions24747613775--
Alcoholic psychoses526281254--
Drug psychoses138194670230
Other organic psychotic conditions15811531127--
Schizophrenic psychoses2,2391499362183630
Affective psychoses2,56340510992024
Paranoid states15424637621
Other psychoses4498013972416
Neurotic depression and other depressive disorders11003638376415
Other neurotic disorders284211365--
Alcohol dependence or abuse197341108143511
Drug dependence or abuse90824292131212
Other personality disorders613561231341416
Stress and adjustment reactions752543469210
Non-psychotic disorders of childhood and adolescence3666----
Non-psychotic mental disorders following brain damage4216111132--
Psychological malfunction due to mental factors109----
Mental retardation369186981782717
No psychiatric diagnosis1432163319118
        Total12 248177221023529919

Table 7.23. PSYCHIATRIC HOSPITAL DIAGNOSES, 1990*

DiagnosisTotalsFirst admissionsReadmissionsReplacements from leave

*Year ended 31 December.

Source: Health Information Service.

Senile and pre-senile organic psychotic conditions258179763
Alcoholic psychoses52221911
Drug psychoses1845211121
Other organic psychotic conditions184798025
Schizophrenic psychoses3,1313402,129662
Affective psychoses2,9965602029344
Paranoid states2297812427
Other psychoses59321829184
Neurotic depression and other depressive disorders1,13346065518
Other neurotic disorders2981311616
Alcohol dependence or abuse2,1258441,25427
Drug dependence or abuse90942047910
Other personality disorders71416046490
Stress and adjustment reactions77443432911
Non-psychotic disorders of childhood and adolescence29218-
Non-psychotic mental disorders following brain damage5421285
Conditions associated with physical disorder1147-
Mental retardation2774516468
No psychiatric diagnoses58829227917
        Total, all cases14 5394 3608 7501 429

Deaths. In 1991 there were 177 deaths in psychiatric hospitals and hospitals for the intellectually handicapped, psychiatric units of public hospitals and institutions licensed under the Alcoholism and Drug Addiction Act 1966. This compares with 251 in 1990.

7.5 Accidents

Accident compensation

A comprehensive system of accident rehabilitation and compensation is provided for all New Zealanders under the Accident Rehabilitation and Compensation Insurance Act 1992. The Act has an emphasis on prevention, risk management and rehabilitation. It specifically acknowledges that risk management and rehabilitation are facets of injury and compensation cost control and that injury prevention, risk management and rehabilitation strategies need to be integrated.

The scheme is administered by a Crown-owned enterprise, the Accident Rehabilitation and Compensation Insurance Corporation, which is controlled by a board of directors. It has a head office in Wellington and district and branch offices throughout New Zealand. The corporation's basic policies in terms of the extent of cover provided, eligibility for benefits, the limit of benefit payments and the setting of premiums are established legislatively by the government of the day. The board has a role to ensure the corporation operates with maximum efficiency within its policy parameters and that the expectations of stakeholders for claimants to employers, to motorists are realised. Introduced in 1974, the scheme was amended in 1992 to control costs and to ensure the costs of the scheme fall where they are incurred.

The aim of the scheme is to provide security to New Zealanders in a manner which is affordable, consistent, efficient and respectful of people through:

  • Restoring claimants as much as possible to their pre-injury position.

  • Reducing claims incidence, cost and duration.

  • Reduce, over time, the administrative cost of the scheme.

  • Achieve community acceptance of personal responsibility for injury prevention and independence.

  • Fund the scheme in an equitable manner.

The corporation strives to create and maintain an efficient, viable, affordable, professional and equitable compensation scheme that has been recognised internationally for outstanding performance.

ACC is a form of compulsory insurance where the community as a whole, via the premiums paid, accepts responsibility for the accidents which inevitably afflict a proportion of its members. The Motor Vehicle Licensing Premium and the Petroleum Excise Premium provide cover for motor-vehicle accidents. The Earner Premium covers the cost of accidents which occur in the home, during sport or recreational activities, or at other times when a person is not working or using a motor-vehicle. The government provides revenue for cover for accidents sustained by non-earners—children, the elderly, the unemployed and those caring for dependants. Employer premiums provide cover for accidents in the workplace and non-work accidents which occurred before July 1992. The four separate funder accounts enable premiums to be closely linked to accident costs in any particular account.

The Act requires that the corporation undertake or fund safety programmes which are cost-effective and which will result in a reduction of costs to the corporation and ultimately premium payers. Injury prevention priorities established for each of the four funder accounts are:

  • Employers: farming, meat industry and forestry.

  • Earners: sports injuries (specifically rugby and netball).

  • Non-earners: playground injuries to children, and falls by the elderly.

  • Motor vehicle account: motor vehicle (road) safety and motorcycle safety.

The approach adopted by the corporation recognises that injury prevention is both an individual and a community responsibility. For real gains in the long term, injury prevention programmes must be designed and implemented to foster and contribute to the on-going development of a New Zealand safety culture.

Effective rehabilitation is the cornerstone of ACC and is essential to ensure injured people are able to return to the workforce or an independent life in the community. The corporation has the task of facilitating the achievement of this objective. Its success involves partnership with the injured person, the health care provider and the employer. The corporation employs rehabilitation co-ordinators to help injured people identify their needs and to plan and coordinate individual rehabilitation programmes which are prepared in partnership with the injured person, the health care provider and, where appropriate, the employer. Early intervention is emphasised to ensure the injured person's medical, vocational and social rehabilitation is planned in an integrated manner.

Compensation is provided to give claimants financial security following an injury, without the need for them to prove fault or engage in litigation. Under the scheme injured people receive a wide range of benefits including contributions to medical costs, full public hospital costs, home help, attendant care, assistance with transport and financial assistance with the costs of modifying a home or car. An Independence Allowance designed to offset the additional costs associated with living with a disability is available and weekly compensation at the rate of 80 percent of earnings is payable for earners. In 1992/93 the corporation spent a total of $1,286 billion on compensating people injured in accidents. Just over half of that sum, almost $663 million, went on weekly compensation—providing income security for people while they were unable to work. The rest went on lump sum payments and payments, such as attendant care, home help, transport, home or vehicle modification and child-care, which are designed to help people while they are rehabilitating. The corporation spent a total of $154 million meeting the medical costs of injured people.

Table 7.24. ACCIDENT COMPENSATION CLAIMS REGISTERED BY ACCOUNT

Account*At 30 June
19891990199119921993*

*These figures include claims for medical treatment where the health care provider is normally reimbursed directly.

Source: Accident Rehabilitation and Compensation Corporation.

Employers'account112118128119293
Motor vehicle account1920211945
Non-earners' account40475565654
Earners' account    289
        Total claims1711852042031 281

Table 7.25. ACCIDENT COMPENSATION INCOME AND EXPENDITURE 1993*

 Employers' accountEarners' accountMotor vehicle account
Income $ 

*Year ended 30 June.

Source: Accident Rehabilitation and Compensation Corporation.

Gross premium revenue642,031,625192,034,884320,276,104
Investment income76,874,30418,455,74739,089,085
Government contribution---
        Total income718,905,929210,490,631359,365,189
Expenditure—   
Income maintenance529,223,77138,418,24687,639,920
Independence allowance185,487,514-47,079,143
Death benefits25,442,103764,26223,970,529
Medical treatment51,862,44634,247,4269,575,141
Hospital treatment51,286,7222,712,253110,788,524
Dental treatment2,577,9701,533,697822,548
Conveyance for treatment7,847,6332,620,8803,435,137
Vocational rehabilitation3,002,617158,9721,088,363
Social rehabilitation11,669,3031,113,5839,380,563
Miscellaneous benefits and expenditure2,122,478-582,557
        Total compensation870,522,55781,569,319294,362,425
Financial grants—Department of Labour23,101,685--
Financial grants—other805,431534,789285,798
Premium revenue collection fee15,500,0004,725,8111,797,973
General fund transfer76,427,4106,743,22424,199,509
        Total expenditure986,357,08393,573,143320,645,705
Change to account balance267,451,154+116,917,488+38,719,484
 Non-earners' accountTotal1992 total
Income— $ 
Gross premium revenue-1,154,342,613916,620,101
Investment income-134,419,136131,468,865
Government contribution210,718,093210,718,093183,020,101
        Total income210,718,0931,499,479,8421,231,109,067
Expenditure—   
Income maintenance7,438,935662,720,872633,729,983
Independence allowance100,435,092333,001,749245,817,709
Death benefits1,235,73551,412,62952,622,572
Medical treatment58,744,649154,429,662187,633,960
Hospital treatment4,699,136169,486,635138,136,879
Dental treatment3,857,2028,791,41712,801,699
Conveyance for treatment4,815,56718,719,21721,419,801
Vocational rehabilitation515,5884,765,5405,956,068
Social rehabilitation11,871,51234,034,96128,371,194
Miscellaneous benefits and expenditure572,7383,277,7736,666,678
        Total compensation194,186,1541,440,640,4551,333,156,543
Financial grants—Department of Labor-23,101,68523,467,759
Financial grants—other539,1192,165,1373,156,440
Premium revenue collection fee-22,023,78420,283,604
General fund transfer15,992,820123,362,96398,498,703
        Total expenditure210,718,0931,611,294,0241,478,563,049
Change to account balance--111,814,182-247,453,982

Accident compensation statistics. The Accident Compensation Corporation collects a number of statistics on compensated claims. Compensated claims largely exclude injuries causing less than eight days incapacity (for which the corporation is not required to pay compensation) and claims for medical treatment only (for which the doctor is normally reimbursed directly).

Statistics showing the type and location of accidents causing injury can be found later in this section, while statistics for accidental injuries treated in public hospitals appear in section 7.4, Hospitals.

Traffic accidents and road safety

Accidents on roads. Motor-vehicle accidents involving death or personal injury are required by law to be reported to the Land Transport Division of the Ministry of Transport or to the police. During the year ended 31 December 1992, there were 11,635 reported accidents resulting in 646 fatalities and injuries to 16,121 other people.

Table 7.26. ROAD ACCIDENT CASUALTIES BY TYPE. 1992

Classification of accidentsKilledSeriousMinorTotal
Source: Land Transport Safety Authority.
Overtaking or lane change41148474633
Head on (not overtaking)1695411,2601,970
Lost control or ran off road on straight603511,2271,638
Lost control or ran off road while cornering1587682,3873,313
Collision with obstruction15121588724
Rear end101119411,062
At intersections or driveways—    
    Vehicles moving in same direction, one turning13171802986
    Vehicles crossing paths, not turning392551,2211,515
    Vehicles crossing paths, one turning191949861,199
    Vehicles merging552254311
    Vehicles moving in opposite directions, one turning right212441,0651,330
Vehicles manoeuvring6134680820
Pedestrian crossing road53245644942
Pedestrian—other164272130
Miscellaneous2137106164
        Total6463 41412 70716 767

ROAD ACCIDENTS
Contributing factors by percentage, 1992

Table 7.27. AGE OF PERSONS KILLED AND INJURED IN MOTOR ACCIDENTS

Age groups (years)Killed*Injured
199019911992199019911992

*Killed immediately or died within 30 days of accident.

Source: Land Transport Safety Authority.

Under 5151420331310318
5-9201614521498504
10-14172116755740708
15-191351011053,8553,4203,087
20-241691301323,2543,1083,032
25-299568572,1031,9031,776
30-345053431,3371,4251,353
35-393943449861,050984
40-44254023821761799
45-49272130583583619
50-54192219481507519
55-59151611381363376
60-64192214374369338
65-69162024301335277
70-7492020296271290
75-7916916252265243
80 and over251827212200241
Unknown age181631855658657
        Total72965064617 69816 76616 121

Table 7.28. ROAD USERS KILLED AND INJURED IN ROAD MOTOR ACCIDENTS, 1992

Type of casualtyKilledSerious injuryMinor injuryTotal
Source: Land Transport Safety Authority.
Driver of—    
    Car2461,1265,6667,038
    Taxi-54853
    Van31139579749
    Truck536144185
    Bus131418
    Motorcycle756089981,681
    Other372030
    Unknown-1-1
Passenger of—    
    Car1547763,1174,047
    Taxi153440
    Van22108398528
    Truck1156379
    Bus-54348
    Motorcycle1365145223
    Other1--1
    Unknown----
Cyclist17207734958
Pedestrian763077001083
Other and unknown-145
        Total6463 41412 70716 767

Table 7.29. ROAD ACCIDENT CASUALTIES AND RATES

December yearPersons killedPersons killed per 100 000 populationPersons injuredPersons injured per 100 000 populationTotal causalities per 100 000 population
Source: Land Transport Safety Authority.
198779723.818,642556.6580.4
198872821.717,324516.2537.9
198976122.516,526488.3510.8
199072921.317,698516.1537.4
199165018.816,766486.0504.8
199264618.516,121462.5481.0

ROAD DEATHS
Death rate from motor vehicle accidents

Table 7.30. INTERNATIONAL COMPARISONS: MOTOR ACCIDENT DEATH RATES

CountryYearPersons killedPersons killed per 10 000 vehicles*Persons killed per 100 000 population

*Estimated for New Zealand.

Source: Land Transport Safety Authority.

New Zealand19926462.918.5
Australia19921,9771.911.2
United Kingdom19914,7531.68.2
USA199141,4622.216.4
Japan199114,4362.211.6
Canada19913,6842.113.6
Germany199111,3002.614.2
Sweden19917451.78.7
France199110,4833.918.5

THE ROAD TOLL
Numbers killed

Road safety. Road safety is administered by the Ministry of Transport with the road laws enforced by the New Zealand Police. For further information, see section 21.4, Road transport.

Publicity directed towards road safety is carried out through the press, radio, television, and by means of posters and other advertising. Special road safety campaigns and traffic improvement courses are held from time to time.

The main emphasis in schools and colleges of education centres around integrating traffic education into school programmes. Traffic education units are co-operatively planned and implemented. Police officers, teachers and others in the community also work together to plan and implement traffic education interventions that are based on the special social and traffic needs of the community. The New Zealand Automobile Association also provides the New Zealand Defensive Driving Course for licensed drivers.

Advice on road safety policy is given to the Government by the Transport Select Committee, by the Officials Committee on Road Safety, and by a number of other bodies, including local road safety committees.

Motor vehicle insurance. Under the Accident Rehabilitation and Compensation Insurance Act 1992 a Motor Vehicle Licensing Premium and Petroleum Excise Premium provides cover for motor-vehicle accidents. The Motor Vehicle Account, one of the four funder accounts, has set as its injury prevention priorities road safety and motorcycle safety. See ‘Accident compensation’.

Water accidents

The New Zealand Water Safety Council. The New Zealand Water Safety Council is a collective organisation, made up of most of the aquatic agencies in New Zealand, for example: the Swimming Federation, the Surf Life Saving Association, the Royal Life Saving Society and the Maritime Safety Authority. The council is funded by the Lottery Grants Board and through sponsorship by organisations such as Lotto.

Drowning is New Zealand's third highest cause of accidental death, with only road crashes and falls being greater in number. The drowning statistics have shown, on average, a 3 percent drop over the last 10 years, peaking at 222 deaths in 1985 and currently at 123 for 1992. There are currently no statistics which show the accident rates in the water; however, if a traditional formula is applied of 300:29:1 for non-injury accidents, minor accidents and major accidents, there are probably at least 3,500 non death accidents and at least 36,000 near misses annually.

Anglican priest practising safe cycling, during Road Safety Week.

The danger age for drowning is between the ages of 18 to 35 and it is almost exclusively a male problem. The only areas in which women are statistically significant are in the suicide group and in the over 75 age group. This is probably because of limited access to the activities which expose the participants to the danger of drowning, such as boating, fishing and scuba diving.

New Zealand enacted a Pool Fencing Act in 1987, which required all owners of home pools to adequately fence. This arose from statistics of the early 1980s when 53 pre-school children drowned in backyard pools in a four year period. While the Act has been controversial and difficult to enforce, public knowledge of the issue has resulted in a substantial drop in pre-school drowning in home pools to only six in the last two years.

While drownings as a whole are decreasing, there are three areas where there has been a substantial increase; adventure activities, rock fishing and under 4 metre power boating (dinghies). The rise in adventure based drownings is probably due to the increased popularity of these activities in recent years and reflects the greater statistical pool. Increases in rock fishing and small dinghy drownings are cause for great concern as they seem to reflect a lack of knowledge of, or an unwillingness to follow, basic safety precautions.

Table 7.31. DROWNINGS

LocationYear ended 31 December
1989199019911992

*Includes drownings in pools, rivers, seas and others.

Source: NZ Water Safety Council.

Boating34311421
Surf activities111-
Whitewater activities3335
Angling13496
Scuba diving and snorkelling59106
Swimming*1527196
River crossing4332
Other water-related-326
Non-water related1112
        Total recreational76826254
Immersion incidents—    
    Adult21191514
    Children 5-153275
    Preschool—pools81042
    Preschool—other8425
Rescuing others3445
Vehicle accidents2372114
Tourism and commercial----
Commercial fishing3477
Employment related-11-
Floods and civil emergencies----
Suicides and homicides19101717
        Total non-recreational88617869
        Total drownings164143140123

General accident statistics

Annually, accidents, poisonings and violence cause approximately 7 percent of total deaths.

Table 7.32. DEATHS FROM EXTERNAL CAUSES*

Causes of deathNumber of deathsRate per million of mean population
198919901991198919901991

*Registered during calendar year.

Includes falls aboard ship and from horseback.

Includes drowning from water transport.

Source: Health Information Service.

Motor vehicle accidents799762681239225202
Other transport accidents†959659282817
Accidental poisoning121131439
Accidental falls250248209757362
Accidents caused by machinery221616755
Accidents caused by fire and explosion of combustible material5928301889
Accidents caused by firearms688222
Accidental drowning and suffocation‡10374114312234
Suicide and self-inflicted injury465455474139135140
Homicide727866222320
All other external causes10515675314622
        Total deaths from accidents, poisoning, or violence1 9881 9321 763595572522

Table 7.33. DEATHS FROM LEADING EXTERNAL CAUSES BY SEX AND AGE, 1991*

Age group (in years)Motor vehicle accidentsAccidental drowningsAccidental poisoningsAccidental falls
MFMFMFMF

*Registered during calendar year.

Source: Health Information Service.

Under 15382123121152
15-241796112212111-
25-3497411234151
35-447223163426-
45-5426138--24-
55-642314511-51
65-742020352-124
75 and over1617451-41112
All age471210833125689120
Age group (in years)Suicide and self-inflicted injuryHomicideAll other causes of accidentsAll accidents, poisonings and violence
MFMFMFMF
Under 154-341138542
15-24109169425435788
25-34951911827525178
35-4460216328819260
45-5450196619311343
55-642474-1227425
65-7421111-1667546
75 and over17--181187147
All ages380944026146421 234529

Accidental falls. There were 209 deaths due to accidental falls in 1991. This is one accident area in which the total female mortality rate exceeds that for males; although there is an excess of male deaths over female deaths between the ages of 15 and 64 years. At 65 years of age and above, the higher life expectancy of females means that more elderly women than elderly men are exposed to the risk of fatal falls.

In 1991, 38 percent of fatal accidental falls occurred at home. Falls are the chief cause of death in domestic accidents, particularly for the aged and infirm.

Sites of non-transport accidents. Accidents occurring at home and in residential institutions (rest homes, hospitals, etc) accounted for 51 percent of all fatal non-transport accidents in 1991.

Table 7.34. SITES OF FATAL NON-TRANSPORT ACCIDENTS*

Place of occurrenceNumber of accidentsRate per million of mean population
198919901991198919901991

*Excludes surgical and medical misadventure, late effects of accidental injury.

Source: Health Information Service.

Home (including home premises and vicinity and any non-institutional place of residence)188190171565651
Farm (including buildings and land under cultivation, but excluding farm and home premises)181814554
Mine and quarry4-2--1
Industrial places and premises252116765
Places for recreation and sport5915134
Street and highway694231
Public building (building used by the general public or a particular group of the public)81211243
Residential institution (homes, hospitals, etc.)888960262618
Other specified places738488222526
Place not specified705871211721
        Total485490452145145134

Deaths of pre-school children. Mortality rates among children aged one to four years in New Zealand are disappointingly high. In 1991, New Zealand's age-specific mortality rate for children aged one to four was 45.3 per 100,000. This shows a 15 percent decrease since 1989 at which time the rate was 53.2 per 100,000.

Table 7.35. DEATHS OF PRE-SCHOOL CHILDREN FROM ACCIDENTS AND VIOLENCE, 1991

Causes of deathSexAge (in years)
1234Total
Source: Health Information Service.
DrowningM21115
 F-11-2
Motor vehicle accidentsM123511
 F-21-3
HomicideM1---1
 F-1--1
All other external causesM244-10
 F1-135
        Subtotal, male678627 
        Subtotal, female143311 
        Total71111938 

7.6 Civil defence and fire safety

Civil defence

The Ministry of Civil Defence was established in 1959 as part of the Department of Internal Affairs. The current Civil Defence Act dates from December 1983.

The phrase ‘civil defence’ describes the planning and organisation of measures necessary for public safety during events beyond the capability of regular emergency services. Communities have an obligation to take the steps necessary to prevent or reduce loss of life or distress by using their own resources and drawing on volunteers. Territorial authorities and regional councils form civil defence organisations and prepare appropriate plans. The Ministry of Civil Defence, through offices in Auckland, Palmerston North and Christchurch, helps local authorities to meet their obligations and co-ordinates government planning. The ministry also provides financial support for local and regional civil defence work and through the National Civil Defence School encourages training and planning.

A declaration of a state of civil defence emergency grants special powers to civil defence controllers appointed under civil defence plans, the police and to the ministry's director and commissioners.

The National Civil Defence Committee advises and assists the Minister and the Director of Civil Defence in the planning and implementation of civil defence measures.

A National Civil Defence Headquarters is established in the sub-basement of the Executive Wing of Parliament Buildings (the Beehive). It is kept ready for use but is activated only when required.

Primary school students at Wellington's Kelburn School practice earthquake drill.

Natural disaster insurance

The Earthquake Commission (formerly Earthquake & War Damage Commission) administers the Earthquake Commission Act 1993. This provides private property owners in New Zealand, who have purchased fire insurance, with insurance cover for damage to residential properties (dwelling, personal property and land) caused by:

  • Earthquake, natural landslip, volcanic eruption, hydrothermal activity or tsunami.

  • In the case of residential land, storm or flood.

  • Fire occasioned by or through or in consequence of any of these.

War damage has been removed as an insured peril.

The cover provided for residential properties is now replacement value to a maximum of $100,000 on dwellings and an additional $20,000 on personal property (exclusive of GST). Land cover is provided outside these limits. The commission is currently phasing out cover on non-residential property. Cover is no longer compulsory but can be applied for at reducing levels over the next two years (50 percent in 1994,25 percent in 1995). By 31 December 1996 the commission will no longer have to insure non-residential property. Premiums at the rate of 5 cents per $100 cover are collected by insurance companies and paid to the commission.

The Earthquake Commission is a Crown entity controlled by provisions in the Public Finance Act 1989 and the State-Owned Enterprises Act 1986. It is responsible to the Minister of Finance who usually delegates responsibility to one of the Associate Ministers of Finance. The commission's board consists of between five and nine commissioners appointed by the Governor-General on the recommendation of the Minister of Finance. Every commissioner is appointed for a term of up to three years, but may be re-appointed.

Claims for the year ended 30 June 1993 totalled 2,261 earthquake claims ($1,424,722), 197 landslip claims ($1,207,338) and 488 land claims ($1,112,632).

Fire fighting

Fire-fighting services are organised nationally as the New Zealand Fire Service.

New Zealand Fire Service Commission. The commission is the national administrative body which deals through the commanders of regions, areas and districts. There are three part-time commissioners appointed by the government and the Secretary for Internal Affairs.

Organisation of fire fighting. There are six administrative regions, based in Auckland, Hamilton, Palmerston North, Wellington, Christchurch and Dunedin. Their primary task is to co-ordinate operational units.

The fire regions are divided into fire areas, of which there are 20 in all. 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. The fire areas are further divided into fire districts, of which there are 269.

Nineteen of the 269 fire districts are served mainly by permanent firefighters, augmented by more than 1,000 volunteers. The remaining 250 fire districts are staffed by volunteer firefighters who are an essential part of the New Zealand Fire Service. During 1990 there were 2,537 employees and 6,980 volunteer firefighters and fire police officers. Several women are now employed as operational firefighters, and facilities for women are provided at all permanently staffed fire stations.

Approximately 90 percent of the cost of maintaining the New Zealand Fire Service is met by the insurance industry through a levy on policies, with the remainder being met by government. For the year ended 30 June 1992 contributions from insurance companies totalled $187,014,000 while Government contributed $14,449,000. This compares with levies of $221,159,000 and a government contribution of $18,827,000 for the 15 months ended 30 June 1991.

Fire prevention lesson.

Fire safety. The Fire Service Act requires the Fire Service Commission 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 nationwide fire safety survey and advisory service.

Table 7.36. INCIDENTS ATTENDED BY FIRE BRIGADES*

Incidents19911992

*This table excludes mutual aid calls and calls to the vicinity of another fire.

An exposure fire is where a fire originating in one property spreads to another property. They are subtracted from total fire incidents to reflect a clear total number of incidents attended.

Source: NZ Fire Service.

Fires—  
    Structure fires4,4464,496
    Vehicle fires3,0092,720
    Television and home appliances201221
    Oven fires718667
    Chimney fires1,3551,576
    Rubbish fires4,2813,713
    Tree, grass and scrub fires3,2903,458
    Yard storage/standing crops640634
    Authorised controlled burning-2,328
    Investigation only (out on arrival)437-
    Other fires9112,008
 19,28821,821
Less, exposure fires†214207
        Total, fire incidents19 07422 028
    Overpressure rupture with no combustion5258
    Hazardous substance emergencies2,7082,064
    Hazardous condition standby574680
    Special service incidents4,9805,256
    False alarms (good intent)4,8342,232
    False alarms (malicious)1,7221,569
    False alarms (equipment failure)10,6328,440
    False alarms (other)280258
        Total incidents attended44 85642 585

Fire statistics. Thirty-three people died as a result of property fires during 1992, compared with 26 in 1991 and 30 in 1990. In 1991 the most common suspected causes of fires resulting in fatalities were collision, overturn, knockdowns and falling asleep.

Fire insurance is described in section 22.3, Insurance and superannuation.

7.7 Occupational safety and health

Primary responsibility for the provision of occupational safety and health policy and services is held by the Occupational Safety and Health Service (OSH) of the Department of Labour. The Department of Health also has some input into health policy for the workplace and administers some related legislation.

Legislative reform. Recent legislative reform in the area of occupational safety and health has led to the introduction of a single Act prescribing minimum standards across all industries. The Health and Safety in Employment Act 1992 came into force from 1 April 1993 and sets out the responsibilities of employers, employees and others to manage the risks they face in their work on a day-to-day basis.

The Act spells out primary responsibilities for all employers, employees, people who hire contractors, and others involved with the workplace. Detail for ensuring the safety and health of those working in specific industries or processes comes through either regulations made under the Act or codes of practice approved by the Minister of Labour. Under the Act employers have the primary responsibility to ensure the health and safety of their workers by:

  • Providing a safe and healthy working environment for their employees.

  • Implementing effective hazard identification and control methods.

  • Providing training and supervision of their employees.

  • Involving their employees in the development of procedures for dealing with hazards and emergencies.

Employees have a responsibility under the new law to ensure that they do not endanger their own health and safety or that of other people by their work.

Occupational Safety and Health Service. This is one of five services to industry maintained by the Department of Labour. Its role is to minimise the economic and social cost of workplace illness and injury. This involves administering and enforcing the Health and Safety in Employment Act 1992, developing occupational safety and health policy, and providing health services to industry. The service has extensive direct involvement with industry. In 1992-93 its 285 staff made nearly 86,000 visits to workplaces, of which 33,000 were to inspect for compliance with legislation. Other major categories of visits were: investigating accidents and complaints (9,400) and education and training activities (approximately 15,500). Funding for these activities comes from a proportion of the levies charged by the Accident Rehabilitation and Compensation Insurance Corporation. Service expenditure was $22,617 million in 1992-93.

Priority projects. Over the last two years OSH has concentrated on two main types of high priority workplaces. Although industry-wide surveillance continues, the following two programmes have received a high share of resources.

Enterprise Self-management Programme—during 1992-93 OSH worked to reduce risks in 2,500 workplaces identified as having a poor level of achievement in occupational safety and health. Under this programme OSH fieldworkers used a range of approaches and resources as they work with the management of individual companies to, firstly, build an awareness of the need to manage risk, and then help to build risk management systems into workplaces. During 1993-94, up to 1,000 workplaces achieving improved safety and health performances will move into a new monitoring programme.

High hazard workplaces—under this programme workplaces with high hazard processes or activities are visited regularly and their safety and health performance monitored. During 1992-93, OSH staff visited 15,765 workplaces under this programme.

Responses to hazardous situations and other incidents continue to be a priority for OSH personnel. The service will continue to investigate all workplace fatalities and to work closely with the police and defence forces—particularly in the area of explosives and dangerous goods and other emergencies where public safety is threatened.

National projects. As well as focusing efforts on high priority workplaces, the service maintains a broader approach through three three-year national projects. Each of these projects, which began in 1991, concentrates on a particular area of risk that is found in virtually all New Zealand workplaces. The subject areas are manual handling, noise and chemicals. For each project the approach is to build awareness of the risks in workplaces and then offer the resources and assistance people need to control risk in their own workplace. This is achieved by:

  • Training OSH professionals and others in the field.

  • Developing and publishing guidelines, regulations and other resources.

  • Public education through the media and contact with occupational safety and health professionals.

Removing asbestos from a playcentre, Rotorua.

Research and policy development. The service is working to implement new administrative mechanisms for the identification and management of particular risks in the workplace.

A register of those exposed to asbestos dust and for victims of asbestos-related disease (established in 1992) has become part of a wider occupational disease register.

OSH technical staff are also responsible for the monitoring of international developments of relevance to New Zealand.

Contributors

  • 7.1 Ministry of Health; Medical Council of New Zealand; Nursing Council of New Zealand; Dental Council of New Zealand; Pharmaceutical Society of New Zealand.

  • 7.2 Ministry of Health

  • 7.3 Ministry of Health; Alcohol Advisory Council; Medical Research Council; Health Information Service; Abortion Supervisory Committee.

  • 7.4 Ministry of Health; Health Information Service.

  • 7.5 Accident Rehabilitation and Compensation Insurance Corporation; Ministry of Transport; Water Safety Council; Health Information Service.

  • 7.6 Department of Internal Affairs; Earthquake and War Damage Commission; New Zealand Fire Service Commission.

  • 7.7 Department of Labour.

Special articles

Public Health Commission; Ministry of Health.

Further information

Health

Alcohol Consumption in New Zealand. Alcohol Advisory Council (annual).

Annual Report and Statement of Accounts. Pharmaceutical Society of New Zealand.

Cancer Data. Health Statistical Services, Department of Health (annual).

Hospital and Selected Morbidity Data. New Zealand Health Information Services, Ministry of Health (annual).

Hospital Management Data. New Zealand Health Information Services, Ministry of Health (annual).

Mental Health Data. New Zealand Health Information Services, Ministry of Health (annual).

Mortality and Demographic Data. New Zealand Health Information Services, Ministry of Health (annual).

The Public Health: Report of the Department of Health (Parl paper E.10).

Report of the Abortion Supervisory Committee (Parl paper E.28).

Report of the Alcohol Advisory Council (Parl paper E.26).

Safety

Accident Compensation: A Fairer Scheme, Department of Labour, 1991.

Key Statistics. Department of Statistics (monthly).

Motor Accidents in New Zealand. Land Transport Safety Authority, Ministry of Transport (annual).

Report of the Accident Rehabilitation and Compensation Insurance Corporation (Parl paper E19).

Report of the Advisory Council on Occupational Safety and Health (Parl paper G41).

Report of the Department of Labour (Parl paper G1).

Report of the Earthquake and War Damage Commission (Parl paper B11).

Report of the Ministry of Transport (Parl paper F5).

Report of the National Poisons and Hazardous Chemicals Information Centre. National Toxicology Group (annual).

Report of the New Zealand Fire Service Commission (Parl paper G8).

Chapter 8. Education

First presentation in the nationwide ‘computers for schools’ promotion.

8.1 Administration of education

Education agencies

Early Childhood Development Unit. The Early Childhood Development Unit promotes and encourages the development and provision of quality, accessible, and culturally appropriate early childhood services. The Early Childhood Development Unit provides: community development; support for establishment of early childhood centres; parent support; advice and support to playgroups and Pacific Island language groups; and advisory support and professional development for staff, management and parents involved in early childhood centres and home-based schemes. The unit is a government agency contracted to provide services to the early childhood community.

Special Education Service. The Special Education Service is a Crown entity offering a New Zealand wide service of advice, guidance and specialist support for the benefit of people with special educational and developmental needs. Services provided include the following:

  • Educational and developmental assessment.

  • Programming assistance for individuals, families, schools and early childhood centres.

  • Specialist educational therapies and teaching.

  • Training for people working with those who have disabilities.

  • Placement advice and assistance for schools, families and communities.

  • Early intervention teaching and advisory services.

  • Specialist liaison services between schools and families.

  • Advice to government and non-government agencies on special education policy and practices.

Staff of the service include advisers on deaf children, early intervention teachers and advisers, visiting teachers, speech language therapists, kai awhina, advisers on special needs and psychologists.

The service is funded from a variety of government and non-government sources with most of its income coming from a major contract with the Minister of Education for the provision of specified services.

The Careers Service. The Careers Service is a careers advice and information service which helps people choose the work, education and training that suits them and which promotes the development of education programmes which will help meet their future needs.

A Crown entity, The Careers Service was established in July 1990. It is directly responsible to the Minister of Education who appoints a board to oversee its work. The Careers Service contracts with the Minister of Education to deliver a range of services to agreed consumers through a document of accountability signed between the Minister and the board. Being partly funded by the Crown, the document of accountability also allows the negotiation of contracts with other organisations, both public and private.

Education and Training Support Agency. The Education and Training Support Agency develops and administers training which supports individuals preparing to enter or re-enter the workforce, or who are participating in work-based training.

The agency is currently responsible for the successful implementation of three major training schemes: the Access Training Scheme, Apprenticeship, and the Primary Cadet Schemes. In addition to this operational focus, the agency works with the Ministry of Education to develop labour market training policy. The agency is an independent organisation working under a charter to the Minister of Education.

Ministry of Education. The Ministry of Education is responsible for providing policy advice to the Minister of Education on all aspects of education from early childhood to tertiary, including employment-related education and training, overseeing the implementation of approved policies and ensuring the optimum use of resources devoted to education.

The ministry provides funding to early childhood centres, schools, universities, polytechnics, colleges of education, and wananga and ensures this money is distributed according to government policy. It approves charters in all of these institutions and also negotiates funding bids for tertiary institutions.

The ministry administers legislation and manages all education property owned by the Crown. It is responsible for developing national guidelines on all aspects of education, including national curriculum objectives. It also conducts research and collects education statistics. The ministry will ensure the delivery of education advisory services, special education services, curriculum and early childhood development through contractual arrangements with other agencies.

New Zealand Qualifications Authority. The aim of the New Zealand Qualifications Authority is to promote improvement in the quality of education and training in New Zealand through the development and maintenance of a comprehensive, accessible and flexible National Qualifications Framework.

Its main functions are to:

  • Develop and maintain a comprehensive, flexible and accessible National Qualifications Framework.

  • Oversee the setting of standards for qualifications.

  • Ensure New Zealand qualifications are recognised overseas, and overseas qualifications are recognised in New Zealand.

  • Administer national examinations, both secondary and tertiary.

The Qualifications Authority is a Crown agency—an independent body which reports directly to the Minister of Education.

Education Review Office. The services of the Education Review Office are:

  • Assurance audit reports of schools and early childhood centres which provide high quality information and reliable analysis of the quality of management of the education sector.

  • Effectiveness review reports of schools which provide high quality information and reliable analysis of the factors affecting student achievement.

  • Evaluation reports which provide national assessments of aspects of the education system including management systems or structures, curricula content or delivery issues.

Assurance audit reports inform and assist the minister and governing authorities and managers of schools and early childhood centres, as well as parents and the wider community, about the performance of those institutions in terms of their contractual undertakings (as specified in charters and legislation).

Effectiveness review reports inform and assist the minister, governing authorities, managers, parents and others in the community in identifying and responding to the factors which influence school students' achievement.

In general, a school or centre will receive an assurance audit every two to three years. A school will also receive an effectiveness review every two to three years.

Teacher Registration Board. The Teacher Registration Board is a Crown entity, established under the 1989 Education Act. It approves the registration of teachers and maintains a register of teachers. There are 56,000 teachers on record.

Other administrative bodies

Boards of Trustees. All state primary and secondary schools in New Zealand are governed by Boards of Trustees. Members of a board are elected by parents of students enrolled at the school. Members include parent representatives, the principal of the school and a staff representative. One student enrolled full-time in a class above form three may also be elected to a board as a student representative.

Boards may co-opt additional members, to ensure, for instance, that there is a gender balance and that the board reflects the ethnic and socio-economic diversity of the student body of the school. Boards that administer integrated schools may include members appointed by the proprietors of the school or schools.

Each Board of Trustees has a large measure of autonomy in its control of the management of its school. It has responsibility for payment of ancillary staff salaries, salaries of designated management positions in schools and for the allocation of funds for the operational activities of the school. The board must also ensure that there is a written charter of aims, purposes and objectives of the school approved by the Minister of Education. The school charter includes the National Education Guidelines and local goals and objectives which reflect the particular aspirations of individual schools and their communities.

Polytechnic councils. Polytechnics are controlled by councils. Members represent business, industry, local authorities, universities, women's and ethnic groups, as well as education and community interests.

College of Education councils. Councils of colleges of education include representatives from universities and teacher organisations.

University councils. Each university is established under its own Act of Parliament and is also subject to the provisions of the Education Act 1989 as amended by the Education Amendment Act 1990. All matters relating to management are the responsibility of the council of the institution, which represents the interests of staff, students and the community.

Education Service Centres. Education Service Centres offer services such as administration of school transport, payroll, property, and other administration services to schools.

School traffic patrol utilising the new ‘swing’ design crossing sign, Christchurch.

Other educational bodies

New Zealand Council for Educational Research. As a result of an independent review of NZCER in 1989, the research function of the council was reorganised during 1990-91 under two main themes:

  • Educational achievement: assessment, monitoring, and reporting.

  • Educational institutions in change: policies and practices.

Within these two themes, projects are undertaken at each of the three levels of the education system—early childhood, the formal school system, and tertiary education. As examples, current projects in the area of educational achievement include revisions of the PAT tests and the development of tests for selecting staff in specific occupational groups and the feasibility of establishing an assessment resource bank. In the area of educational institutions in change, current projects include studies of training of teachers of preschool children, the training of primary and secondary school teachers, the impact on primary and intermediate schools of the reforms in educational administration and Qualifications Framework levels.

Reduced government funding has meant the council must seek increased contract research in order to maintain the momentum of its research programmes. Contract research has been undertaken for the Ministry of Education, other government departments and statutory bodies, including the Foundation for Research, Science and Technology, and professional organisations.

The council's Maori unit, Te Wahanga Kaupapa Maori, in addition to its own programme which has a linguistic emphasis, helps to provide a Maori dimension to other areas of the council's work. Two electronic information networks, established by Te Wahanga Kaupapa Maori in 1991 with assistance from IBM, have attracted increasing interest and membership.

A comprehensive range of research reports, periodicals, tests and other publication products were released during the period 1992-93. Notable amongst these were the reports Maori Teachers Who Leave the Classroom; Assessment and Reporting Practices in the First Three Years of School; Windows in Teacher Education: Phase 3, The Third Year; Five Year Olds and Their Curriculum; Children's Knowledge of Fire Safety; and Hearing My Mother's Voice: A Study of Sisters and Mothers.

A major monograph entitled It's Different for Daughters: A History of the Curriculum for Girls in New Zealand Schools 1900–1975 was reissued during the year to help celebrate the Centennial of Women's Suffrage in New Zealand.

A new Progressive Achievement Test in Mathematics was published during the year and two issues each of the periodicals set: research information for teachers, the New Zealand Journal of Educational Studies, and the NZCER Newsletter were distributed.

The council employs around nine full-time equivalent research staff plus contract staff and temporary research fellows or project assistants. From time to time staff act as consultants and visit South-East Asia and the Pacific Islands. The council also acts as a clearing house for information on educational matters and maintains five local institutes for educational research in Northland (Tai Tokerau), Auckland, Wellington, Christchurch, and Suva (Fiji).

Maori Education Foundation. The foundation was established to promote and encourage improved education for Maori by providing financial assistance. The foundation had net assets of $627,963 at 31 December 1992. The Board of Trustees allocates grants to sponsor annual speech contests; boarding grants to secondary education and scholarships for tertiary education.

In 1992 the foundation distributed $2,046,283 in grants for Maori education.

Funding

Early childhood education. Chartered early childhood services are funded at a rate of $2.25 per hour per child over two years of age and $4.50 per hour per child under two years of age for up to six hours per day, up to 30 hours a week.

Kindergartens are funded at an average rate of $2.86 per child per hour for up to eight three hour sessions (24 hours) per week.

Funding for capital works for non-profit-making early childhood groups is available from a grant and loans scheme.

Te Kohanga Reo, the Maori initiative early childhood service, is funded at the same rate as other chartered early childhood services at a rate of $2.25 and $4.50. The funding is administered by the national Te Kohanga Reo Trust.

Schools. The costs of teachers' salaries (excluding senior management salaries), school transport, teacher removal expenses, major capital works and long-term maintenance are paid directly by the Ministry of Education. From 1992, 70 schools are taking part in a three year trial of bulk funding of teacher salaries. All other costs are funded by bulk grants to individual schools, with expenditure being controlled by each school's board of trustees. From 1993 a salaries grant for designated management positions will be paid directly to boards of trustees. Financial management of the schools is subject to review and audit by the Audit Office. Education management and attainment is to be reviewed by the Education Review Office.

Special education. All special education schools, classes, units and pupils are funded at the appropriate institutions. Discretionary allocations of staffing, equipment and grants are made to meet the requirements of the pupils.

Recent developments in tertiary education funding. As a result of the tertiary reforms, a new system for funding tertiary institutions was introduced at the beginning of 1991.

EFTS funding system—the Equivalent Full-Time Student (EFTS) system funds tertiary institutions in bulk according to the number of students and the courses that those students are taking. Polytechnics, colleges of education, universities and wananga receive state subsidies for the number of equivalent full-time students in each of the course cost categories at their institution. These funded places are provided by the government in advance of the funding year. The funding is inclusive of capital works.

The EFTS funding system has abolished detailed central decision-making about levels of staffing, operating grants, and capital works projects. These responsibilities now lie with the management of tertiary institutions themselves.

Improved accountability is required from all tertiary institutions under the EFTS funding system. Each institution must meet the requirements of the Public Finance Act 1989 and the 1990 amendment of the Education Act 1989.

Study Right—the Study Right policy, introduced in 1992, ties in closely with the EFTS funding system. Under Study Right the government pays a subsidy towards the estimated tuition costs according to a student's Study Right status. Students who satisfy the criteria of Study Right are eligible for a higher rate.

The Study Right policy is part of the government's strategy to encourage school leavers to continue with tertiary education and training. Consequently, students eligible for Study Right are largely those aged under 22 at first enrolment. Some beneficiaries will attract the Study Right level of tuition subsidy, subject to the three year limit of Study Right.

Student loans—the Student Loan Scheme was established with effect from 1 January 1992 to assist students to participate in tertiary education. Under the scheme eligible students can receive a loan from the government to cover:

  • Fees—the compulsory fees which are payable by students at enrolment.

  • Course-related costs—a maximum amount of $1,000 a year for full-time full year courses to assist with course-related costs such as equipment, textbooks, field trips.

  • Living allowance: a maximum amount of $4,500 a year (less any entitlement to student allowances).

Loans, on which interest will be charged, will be repayable through the Inland Revenue Department, the level of repayments will be based on taxable income.

Applications are made through the institution at which the student will be enrolling. Student loans officers are available at each institution to assist in making these applications. The ministry updates the student loans information booklet every year.

Capital charge scheme—it was announced in the 1991 Budget that the Government had agreed in principle to a capital charge scheme for tertiary education institutions. The objective of the scheme is to ensure that the cost of capital is reflected in the resource and pricing decisions of institutions. Following the work of a task force, the Government decided to introduce the scheme from 1995, but is still considering the details of its structure.

Private training establishments—the EFTS funding system was expanded to provide state funding to subsidise certain programmes in private training establishments in 1993. The same levels of accountability as state tertiary institutions are expected.

All tertiary sectors are now funded according to the EFTS funding system. In addition to EFTS funding, a number of institutions receive grants for activities that are not funded through the EFTS system.

As a result of a transfer from Vote: Internal Affairs to Vote: Education, the New Zealand School of Dance and the New Zealand Drama School are now funded through the Ministry of Education. Both schools receive their funding through a payment on behalf of the Crown as providers of other tertiary education services.

In the 1992-93 financial year, the university sector received a total of $627,210 million through the EFTS funding system. The polytechnics received $385,729 million, and the colleges of education received $57,913 million through the EFTS funding system.

Table 8.1. EXPENDITURE ON EDUCATION, YEAR ENDED 30 JUNE

YearNet education expenditureProportion of GDPNet government expenditureProportion of net government expenditure

*Estimated actual.

Voted.

Estimated.

Source: Ministry of Education.

 $(million)percent$(million)percent
19904,0685.625,68615.8
19914,4016.027,25216.1
19924,4675.829,17415.3
19934,5485.829,682*15.3
19944,763†5.830,390‡15.7

International links

The Ministry of Education—in consultation with the Ministry of External Relations and Trade, the New Zealand Immigration Service and the Trade Development Board—has responsibilities for the Government's foreign student policy and its implementation, particularly as it affects fee-paying students. It compiles data on foreign students and provides information on policy and application procedures.

The ministry contracts a range of bilateral educational and cultural exchange activities to the New Zealand Council for Teacher Education. Each year, teacher exchanges are arranged between New Zealand, the United Kingdom, Australia, Canada and Germany. The New Zealand-Japan Exchange Programme provides financial and administrative support for a wide range of activities for school teachers, artists and scholars. There are also opportunities for study visits by New Zealand teachers to Japan or in-service support for teachers of Japanese in New Zealand by visiting Japanese lecturers. Other exchange activities include overseas in-service training for teachers of French and German, the Language Assistants Scheme to support the teaching of French, German and Spanish.

New Zealand is a member of various intergovernmental organisations concerned with education. It participates in the education activities of the United Nations Educational, Cultural and Scientific Organisation, the Commonwealth Secretariat, and the Organisation for Economic Co-operation and Development through the Education Committee of the OECD, and a large number of other international organisations such as the Australian Education Council (AEC), Asian Pacific Economic Co-operation (APEC), Pacific Circle Consortium (PCC) and the South East Asian Ministers of Education Organisation (SEAMEO).

8.2 Early childhood, primary and secondary education

Early childhood education is available to children under six years old through a wide range of services, most of which are administered by voluntary agencies with government assistance.

The Education Act 1989 provides for free education in state primary and secondary schools, and attendance is compulsory until the age of 16 years.

Primary school education is compulsory from six years of age, but children usually start formal schooling at the age of five. The final two 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 eight years' school attendance, a child normally enters form 3 of a secondary school, or alternatively form 3 in an area or form 1–7 school.

School terms

Primary and secondary schools are required to be open for at least 394 half days and 380 half days, respectively, each year. The school year is divided into three terms. The first term commences usually on the fifth Monday of the year (in secondary schools, the fifth Monday or Tuesday). Boards of trustees may apply to vary their school's terms and holidays to take local circumstances into account. In 1994, some schools will follow a four term year and some will follow a six term year.

Early childhood care and education

The main organisations involved in providing sessional programmes for early childhood care and education are the New Zealand Free Kindergarten Association, Kindergarten Federation and the New Zealand Playcentre Federation. Sessional programmes are also provided through mobile units and hospital play groups.

A wide range of childcare centres provide both sessional and full-day programmes. Childcare centres are administered by a variety of groups including community and church groups, voluntary agencies and commercial operators. Support is also provided by The Society for Intellectually Handicapped and NZCCS (formerly the Crippled Children Society). Nanny services in private homes provide other types of childcare services. Home-based services are provided by Barnardo's, and the New Zealand Family Day Care Association.

EARLY CHILDHOOD EDUCATION, 1992

To be eligible for government funding, centres must be licensed and chartered. Homebased services must meet the Education (Home-Based Care) Order 1992 and be chartered to receive government funding.

Kohanga reo (language nests) have been established by Maori to provide an educational environment in which children can learn Maori language and Maori cultural values. Nga Kohanga Reo are chartered by Te Kohanga Reo National Trust (Inc.) and licensed by the Ministry of Education.

Unlicensed playgroups and Pacific Island language groups receive funding through the Early Childhood Development Unit. Pacific Island community groups organise early childhood groups with an emphasis on language and cultural values assisting parental knowledge in early childhood care and education.

Primary and secondary school curricula

The official basis for the curriculum for schools is currently in transition. The new document, The New Zealand Curriculum Framework, once gazetted and supported by appropriate legislation, will provide a new legal basis for programmes for schools. Currently, the school curriculum is subject to the curriculum provisions of the 1964 Education Act and associated regulations.

Primary School Curriculum. Until the gazetting of The New Zealand Curriculum Framework, the curriculum of the primary and intermediate schools, as set out in syllabus statements covers English (including oral and written language, reading, spelling and handwriting), mathematics, social studies, art, science, physical education, health education, and music. At intermediate level (forms 1 and 2), the curriculum includes workshop craft and home economics.

Maori medium education has continued to grow across all education sectors. Three levels of immersion in Maori have been identified. Level 1 involves 80–100 percent immersion in Maori, level 2, 51–80 percent immersion in Maori and level 3, 31–50 immersion in Maori. In March 1993, 8,862 students were enrolled in Maori medium education at levels 1 and 2. There are growing numbers of students involved at level 3 in emerging Maori immersion programmes. There are currently 23 state funded kura kaupapa Maori.

Secondary School Curriculum. Until the gazetting of The New Zealand Curriculum Framework, the secondary school curriculum for the first two years is based on a set of syllabus statements for English, mathematics, social studies, art, science, physical education, workshop craft, health education, and music. Currently, secondary schools are required to give all students a minimum number of hours of instruction in these subjects.

At the fifth to seventh form levels, students may choose from a wide range of subjects.

New Zealand Curriculum Framework. The New Zealand Curriculum Framework describes the broad elements which are fundamental to learning and teaching in New Zealand schools.

It states a set of broad curriculum principles which underpin and give direction to all teaching and learning in New Zealand schools. The principles state that the curriculum will be broad, balanced and common; will be inclusive of all students; will foster success and achievement for all students; will enable students to become independent and lifelong learners; will ensure that learning progresses coherently throughout schooling; will recognise New Zealand's bicultural identity; will reflect the multicultural nature of New Zealand society; will be co-operatively designed; and will relate to the wider world.

The framework specifies seven essential learning areas which describe in broad terms the knowledge and understandings which all students will learn: language and languages/te korero, nga reo; mathematics/pangarau; science/te putaiao; social sciences/tikanga-a-iwi; the arts/nga toi; health and physical well-being/hauora; and technology/hangarau.

It sets out the essential skills to be developed by all students through the context of the essential learning areas. These are grouped under the following categories: communication; numeracy; information; problem-solving; self-management and competitive; social and cooperative; physical; and work and study.

The framework also outlines the policy for assessment at school and national levels. The New Zealand curriculum builds on the close relationship between learning and assessment. Assessment procedures will be applied throughout schooling to measure student progress and achievement against the defined objectives of the New Zealand curriculum. Such procedures will build on established classroom practices, and will draw on research and experience in New Zealand and overseas. Furthermore the document defines assessment at key transition points of schooling—at school entry, at the start of year seven (form 1) and year nine (form 3); records of school achievement; national monitoring of standards; and assessment for qualifications.

Finally, the framework provides direction to the development of the more specific national curriculum statements. These supporting statements will spell out in greater detail the required learning described broadly in the framework document. National curriculum statements, Mathematics in the New Zealand Curriculum and Science in the New Zealand Curriculum have been published and distributed to schools. Draft curriculum statements in English, technology, senior sciences (biology, chemistry and physics), te reo Maori, pangarau (Maori mathematics) and putaiao (Maori science) are under development and will be distributed to schools for comment during the 1994 school year.

Achievement Initiative. Student achievement is always a key issue in the education community. Learners, their parents and caregivers, schools, and the larger community may have different and particular approaches to the issue, but all are agreed that a prime goal of our education system is the best possible educational achievement for all students. Recognising the importance of educational achievement, the National Education Goals, which are deemed to be part of all state school's charters, include as goal one: ‘The highest standards of achievement, through programmes which enable all students to realise their full potential as individuals, and to develop the values needed to become full members of New Zealand's society’ and, as goal six, ‘Excellence achieved through the establishment of clear learning objectives, monitoring student performance against those objectives and programmes to meet individual need.’

Currently an important focus on student achievements is the Government's Achievement Initiative policy which is being developed within the New Zealand Curriculum Framework. With this policy, the Government has made a strong commitment to further improving the levels of achievement in New Zealand schools, and to ensuring a clear sense of direction for all involved in schooling. It has three main elements:

  • The establishment of clear achievement standards for all levels of compulsory schooling, initially in English, mathematics, science, technology, te reo Maori, social studies and later in other subjects.

  • The development of national assessment procedures at key transition points, by which the learning progress of all students can be monitored in those subjects.

  • The allocation of resources to support learning needs—these needs may be those of underachieving students, or those of exceptional ability.

The policy acknowledges that:

  • Individuals learn at different rates, at different stages and in different ways.

  • Sound learning builds on the learner's current knowledge and previous experience.

  • Some students need extra help at stages of their schooling.

  • The prime role of classroom assessment is to improve learning.

  • Most school classes include learners with a range of achievement and needs.

  • Classroom teachers must be given professional freedom and trust to take into account the particular needs of their students.

Prospect School, Glen Eden.

Secondary school attainments

School Certificate. The School Certificate examination is taken by most pupils at the end of three years of secondary education. With the exception of part-time students each candidate's course of study must include English, although the student is not required to sit the examination in that subject. A candidate may enter the examination in any number of subjects up to six and is credited with a grade for each subject. There are seven grades: A1 (highest), A2, B1, B2 (middle), C1, C2, and D (lowest). School Certificate regulations allow single subject gradings.

Sixth Form Certificate. Sixth Form Certificate is awarded, on a single-subject basis, to pupils who have satisfactorily completed a course of one year beyond School Certificate level. No more than six subjects can be taken. Grades are awarded on a 1 to 9 scale, grade 1 being the highest.

Higher School Certificate. Higher School Certificate is awarded after a five-year course of study, to pupils who have been accepted for entry to form 6 and have satisfactorily completed an advanced course of two years including at least three subjects beyond form 6 level studied for a full year. It is also awarded to pupils who have obtained an A or B bursary qualification from the University Bursaries Examination.

SIXTH FORM SUBJECTS
Percent of females and males enrolled

University Bursaries Entrance Scholarship. The University Bursaries Entrance Scholarships Examination, usually taken by secondary school pupils in form 7 is conducted by the New Zealand Qualifications Authority. Results in this examination are used in making supplementary awards for study at a university. Outstanding achievement in individual subjects is recognised by the award of subject scholarships. All round excellence leads to the award of New Zealand Qualifications Authority medals.

SCHOOL QUALIFICATIONS
Highest attainment of secondary school leavers

Table 8.2. SCHOOL CERTIFICATE CANDIDATES*

YearNew Zealand school candidatesExtra-mural candidatesPacific Island school candidatesTotal candidates
Number enteredPercentage of totalNumber enteredPercentage of totalNumber enteredPercentage of total 

*Based on number of candidates sitting examinations.

Figures for extra-mural candidates not collected since 1991.

From 1991 Pacific Island figures include candidates from Niue and Cook Islands only.

Source: New Zealand Qualifications Authority.

198759,45182.22,8553.910,04813.972,354
198860,84391.83,1084.72,3123.566,263
198960,99392.92,7984.31,8812.965,452
199061,31990.12,4433.64,3206.368,082
1991†65,75899.5....298‡0.566,081
199266,09799.6....2770.466,374

Table 8.3. NUMBER OF SUBJECTS TAKEN BY SIXTH FORM CERTIFICATE STUDENTS

YearNumber of subjects taken
654321
Source: New Zealand Qualifications Authority.
  percentage of total  
198819.048.410.75.85.610.5
198918.745.211.66.96.511.1
199017.744.411.67.57.311.5
199117.142.212.38.18.112.2
199218.037.614.08.88.912.7

Table 8.4. ATTENDANCE AND ATTAINMENTS OF SECONDARY SCHOOL LEAVERS 1991

Years in attendanceUniversity BursaryHigher School CertificateSixth Form CertificateSchool CertificateNo qualificationTotal
Source: Ministry of Education.
One—Male----372372
 Female----274274
Two—Male----1,2141,214
 Female----944944
Three—Male---1,7602,0013,761
 Female---1,2951,5342,829
Four—Male4213,3852,7907056,923
 Female543,6552,3685796,611
Five—Male5,4554,0593,46549331613,788
 Female5,8834,2503,47443727214,316
Six—Male1562252095153694
 Female8611515926131517
Total—Male5 6534 2857 0595 0944 66126 752
 Female5 9744 3697 2884 1263 72325 480
 Grand Total11 6278 65414 3479 2208 38452 232

Table 8.5. ATTENDANCE AND ATTAINMENTS OF MAORI SCHOOL LEAVERS 1991*

Years in attendanceUniversity BursaryHigher School CertificateSixth Form CertificateSchool CertificateNo qualificationTotal
Source: Ministry of Education.
One—Male----138138
 Female----107107
Two—Male----536536
 Female----440440
Three—Male---3867321,118
 Female---3656361,001
Four—Male--3375612481,146
 Female1-4786262061,311
Five—Male180352521135571,245
 Female231408552127591,377
Six—Male2242481011133
 Female5181871881
Total—Male2023949061 0921 7224 316
 Female2374261 0631 1251 4664 317
 Grand Total4398201 9692 2173 1888 633

Table 8.6. ATTENDANCE AND ATTAINMENTS OF PACIFIC ISLAND SCHOOL LEAVERS, 1991

Years in attendanceUniversity BursaryHigher School CertificateSixth Form CertificateSchool CertificateNo qualificationTotal
Source: Ministry of Education.
One—Male----2828
 Female----2626
Two—Male----115115
 Female----114114
Three—Male---120202322
 Female---126127253
Four—Male--15016673389
 Female--19618143420
Five—Male1152012065431607
 Female1022712715816718
Six—Male1240289190
 Female227142550
Total—Male1272413843494501 551
 Female1042984813673311 581
 Grand Total2315398657167813 132

Assessment for the school system. The New Zealand Curriculum Framework sets out three kinds of assessment for the school system: school-based assessment which emphasises diagnostic formative assessment to improve teaching and learning; transition point assessment at school entry, at the beginning of form 1 and the beginning of form 3 using nationally developed assessment resources; and national monitoring through the assessment of nationally representative samples of students at ages eight and 12, every form year to identify national achievement trends over time to identify learning needs.

Mangere College students with their two-stroke motors made from recycled materials.

Establishments

Educational institutions. sets out the number of educational institutions providing education in the pre-school, primary, primary and secondary, secondary and tertiary areas at the primary and intermediate (forms 1 and 2) level. The reduction in the number of state primary schools as indicated in this table can be attributed to the closure of a number of schools where rolls had fallen below nine pupils.

Table 8.7. NUMBERS OF EDUCATIONAL INSTITUTIONS

Type of institution19881989199019911992

*Includes one YWCA mobile kindergarten and eight Free Kindergarten Association mobiles.

Private school numbers include those provisionally registered.

Includes seven health camps and two hospital schools—the pupils temporarily attending these institutions have been counted with their regular schools in other tables.

§From 1988, figure includes 19 form 3–7 schools with attached intermediates.

Source: Ministry of Education.

Early childhood     
Childcare centres..663662741852
Home-based services....405372
Kindergartens*568575575578582
Playcentres644639621606578
Community-based non-profit making groups174202......
Kohanga Reo..470616630719
Early Childhood Development Unit funded play groups....192266334
Pacific Island language groups....126160169
Primary     
State full primary schools1,1111,1041,0991,1121,152
State contributing primary schools1,0111,0061,008999954
Intermediate schools148148148148148
Private primary and intermediate†7889878286
Special education schools     
State special schools‡6258535250
State-funded special schools1510555
Private special schools45555
Composite—primary & secondary     
Private schools†2828282832
Correspondence School11111
Area schools3535373839
Secondary     
State form 3–7 schools§262259259259261
State form 1–7 schools5355555657
Private secondary schools form 1–7 form 3–7†1819202121
Tertiary     
Polytechnics (including the Open Polytechnic)2424252525
Colleges of Education66655
University institutions77777

Table 8.8. STUDENT NUMBERS 1982 AND 1992 AS AT 1 JULY

Type of institution19821992
Source: Ministry of Education.
Early childhood care and education  
Correspondence School505812
Pre-school classes at Primary School825566
Home-based services..3,470
Pacific Island Language Nests..3,903
ECDU funded playgroups2,4909,647
Nga Kohanga Reo..12,617
Playcentres16,39520,601
Childcare centres..38,734
Kindergartens40,00945,603
        Subtotal60 224135 953
Primary education (J1—form 2)  
State primary367,879331,605
State intermediate75,51056,543
State area6,2056,475
State form 1–77,5016,818
State form 3–7 (attached intermediate)..2,174
State correspondence1,4511,069
Private schools27,19912,712
        Subtotal485 745417 396
Secondary education (Form 3 to 7) State form 3–7186,328187,840
State area2,7183,275
State form (1–7)13,51715,603
State form 3–7 (attached intermediate)..7,876
State correspondence9372,180
Private schools19,37611,138
        Subtotal222 876227 912
Special education (special classes and special schools)  
State primary schools (attached classes)..1,775
State composite schools..12
State secondary schools..2,074
State special schools5591,861
Private special schools..97
Other Vote Education special schools488201
Correspondence..74
        Subtotal1 0476 094
Tertiary—formal education programmes  
Polytechnics  
Full-time7,33033,589
Part-time66,04765,057
        Subtotal73 37798 646
Colleges of Education Full-time4,5035,583
Part-time..4,732
        Subtotal4 50310 315
Universities  
Full-time32,07658,745
Part-time13,23534,439
        Subtotal45 31193 184

Maori pupils. In July 1992 there were 37,061 Maori pupils receiving secondary education. This number comprised 18,422 male pupils and 18,639 female pupils. These figures, and further breakdowns (see ), are used in the analysis of the differences in school retention rates and levels of education attained between Maori and non-Maori, and the ratio of Maori males to Maori females staying on at school.

Consolidation of primary and secondary schools. In order to provide children in rural districts with an improved opportunity for secondary education with special facilities and more specialised teaching in larger schools, the consolidation of smaller rural schools has been a feature of the last 30 years. Composite schools in rural areas have been developed in recent years to bring together larger concentrations of primary and secondary age students. A key objective has been to provide in rural areas for the particular needs of form 1 and 2 students, as well as secondary students, in line with the opportunities available to students in cities. These rural schools provide education at primary and secondary level and are known as ‘form 1 to 7 schools’ and ‘area schools’. These schools receive enhanced staffing and facilities in order to provide improved educational opportunity for country children.

Area schools provide education for children in their immediate vicinity from infants to form 7 students, and for students from form 1 who previously attended contributing schools over a wider area.

Private schools. These schools comply with standards of accommodation, staffing, equipment and curriculum, as a prerequisite for registration. Some financial assistance is provided by the state towards the running costs and teachers salaries. The Private Schools Conditional Integration Act 1975 has allowed for the voluntary integration of private schools into the state system, and this has happened progressively.

Private schools are subject to the provisions for registration and inspection contained within the Education Act 1989. Integrated schools operate under the same system of control and management as state primary and secondary schools apart from the fact that the proprietor owns the land and buildings. Non-integrated private schools are controlled by boards of governors or committees of trustees.

Correspondence School. This is a national school administered by an elected board of trustees composed of parents, community representatives, school representatives and a student. It provides courses for four major categories of students: early childhood and full-time students obtaining all their education through the school; students enrolled in New Zealand primary or secondary schools but doing one or more subjects with the Correspondence School; and adult part-time students who wish to continue their basic education.

The school roll on 1 July 1993 was made up of 810 early childhood; 1,248 primary; 891 special education; 1,610 secondary full-time students; and 7,949 part-time adult students; and 7,650 pupils from other secondary schools studying some subjects by correspondence.

The full-time secondary students were enrolled for a variety of reasons such as isolation, medical reasons, New Zealand children living overseas, pregnancy, living in institutions, school suspensions, school phobia and other psychological problems, and adult full-time, itinerancy and students who are also enrolled at other secondary schools. For full-time correspondence school students the school provides daily lessons in print, tape and video. Regular radio broadcasts, club activities, a school magazine and parent and ex-pupil associations extend the school's work. Information technologies are being used extensively for administration and resource development and a range of educational applications.

Personal contact between students and the school is strengthened by regional representatives based in major centres who visit families regularly. Visits are also made by teachers from the school. At the district level, school-day and school-week gatherings are held periodically. A residential school for invited pupils from forms 1 to 4 is held each year to provide children with an opportunity for social education through taking part in group activities.

The total full-time teacher equivalent positions of the Correspondence School for 1993 were 296 secondary teacher positions, 91 primary teacher positions, 17 early childhood teacher positions and 114 support staff.

Table 8.9. TEACHING POSITIONS

Type of institution19911992
Source: Ministry of Education.
Early childhood—  
Playcentres227267
Kindergartens1,5451,511
Primary—  
State20,16619,647
Private419434
Composite—  
State684684
Private696719
Correspondence School 371
Secondary—  
State14,62014,609
Private515514
Special Schools—  
State615568
Private2018
Tertiary—  
Polytechnics4,4534,914
Colleges of Education575598
Universities3,7683,860

Teacher-pupil ratios. The ratios shown in have been calculated using the grading roll of a school divided by the staffing entitlement (measured in full-time teacher equivalents).

Table 8.10. TEACHER-PUPIL RATIOS IN STATE SCHOOLS

YearPrimary*Secondary

*Includes pupils and staff in full-primary, contributing, intermediate, attached intermediate, special schools, and primary departments of area schools and the Correspondence School.

Includes pupils and staff in form 1–7 and form 3–7 schools, secondary departments of area schools and the Correspondence School.

Source: Ministry of Education.

198620.016.75
198720.016.72
198819.816.35
198919.616.50
199019.315.74
199118.915.70
199218.915.50

Projected student numbers. The table below gives actual 1 July rolls and projected rolls for the period 1994 to 1996.

Table 8.11. PROJECTED STUDENT NUMBERS

 YearEarly childhoodPrimary (J1 to F2)Secondary (F3 to F7)
Source: Ministry of Education.
Actual1990118,367416,345230,156
 1991126,134416,084230,996
 1992135,953417,401227,912
 1993148,406423,510223,787
Projected1994160,200429,700222,000
(1993 base)1995174,600439,200220,700
 1996190,000449,000220,800

School boarding and course bursaries. The value of school boarding and course bursaries is $1,485 a year.

School transport. During the year ended 30 June 1993, 110,000 pupils received school transport assistance daily.

Approximately 2,200 school bus services carried 100,000 students to and from school each day. In addition, some 5,000 special needs pupils received assistance in the form of taxi or bus services. Transport allowances were paid to the remaining 5,000 students.

Special education

Boards of trustees govern special schools and special education classes in regular schools and in hospitals. Increasingly, special education services are being taken to children in regular schools, although the option of enrolling children in special facilities, where possible, is retained as a choice for parents. As resources permit, buildings are modified, special equipment is provided and additional staff appointed to assist teachers.

The Special Education Service, a Crown entity, is funded by the Government to provide advice, guidance and support for the benefit of people under the age of 21. The staff of the Special Education Service provide a range of special education services to schools and early childhood services, children and their families.

There are residential special schools which provide teaching and other services to meet the needs of some children with sensory disabilities. There are other residential special schools which provide programmes for children with severe learning, behavioural and/or emotional needs. There are also day special schools in some locations which provide for students with intellectual or physical disabilities. As well there are schools in health camps, some regular and psychopaedic hospitals and some welfare institutions. A significant number of special education classes and units which meet a range of special education needs are attached to regular schools.

In 1992 there were 60 residential or day special schools. These schools provide solely special education services. In addition there were 787.7 special education teachers working either with special education classes and units or providing a range of support to children with special education needs enrolled in regular classes.

Teacher training

There are five colleges of education offering courses in teacher training. They are situated in Auckland, Palmerston North, Wellington, Christchurch and Dunedin. The School of Education at the University of Waikato also offers teacher training.

Teacher training in early childhood education and Maori language is also offered by other tertiary providers.

Early childhood workers and teachers. Three-year training programmes for early childhood workers and teachers are operated at each of the colleges of education. The Advanced Studies for Teachers Unit at Palmerston North College of Education and Massey University offer advanced courses for all early childhood education workers and teachers.

Primary teacher training. The normal course of training for primary teacher trainees (division A) is a period of three years at a college of education, followed by two years of satisfactory teaching in a state primary school. Courses may be shortened to two years for trainees who are university graduates or who are partway through degree courses or for mature trainees with relevant work experience.

Primary teacher trainees are encouraged to undertake university degree study. Conjoint programmes are offered at all institutions.

Special education training. Students who wish to become speech/language therapists enrol for a four-year Bachelor of Education (Speech-Language Therapy) degree at the University of Canterbury.

Postgraduate courses for teachers who wish to be trained as teachers of people with disabilities are available at Auckland, Palmerston North, Wellington and Christchurch. Specialist postgraduate training courses for teachers of the deaf and visually impaired are located at Auckland and Christchurch.

There is also a postgraduate course for bilingual (Maori/English) teachers available at the School of Education at the University of Waikato.

Secondary teacher training. Two options are available to people who wish to train as secondary teachers. For graduates and those with other approved advanced qualifications there is a one-year (division C) course. People with University Entrance or acceptable Sixth Form Certificate may be accepted into division B which involves up to four years consecutive or concurrent study. All colleges of education provide both division B and C courses.

Table 8.12. TEACHER TRAINEES AT 31 JULY 1991

InstitutionPre-service teacher trainees
Early childhoodPrimarySecondary
MFTotalMFTotalMFTotal
Source: Ministry of Education.
Auckland College of Education104214312249141,138120207327
Waikato University School of Education51921971436117543867105
Palmerston North College of Education8154162168498666223557
Wellington College of Education4211215161462623166379
Christchurch College of Education11161172110463573137184321
Dunedin College of Education6138144151543685182240
Total students441 2771 3219573 4914 439351578929

Continuing education for teachers. A wide range of professional education papers is offered to teachers. The majority of the papers are intended to provide credits towards diploma qualifications and service increments for certified teachers.

The Advanced Studies for Teachers Unit at Palmerston North College of Education caters for the continuing education of teachers and other adult learners through distance education. It is a teaching department within the college, with a core of permanent professional tutorial and administrative staff. College of education staff throughout New Zealand act as part-time tutors for these courses.

Colleges of education offer a range of approved after-hours advanced study courses for teachers who wish to advance their professional qualifications.

Resources for teaching

Rural education activities programmes (REAPs). The Rural Education Activities Programme is a community managed and co-ordinated package of education resources based in the rural communities of the Far North, Eastern Bay of Plenty, East Coast, Central Plateau, Central King Country, Ruapehu, Southern Hawke's Bay, Wairarapa, Marlborough, Buller, Westland, Central Otago and Southland. Each REAP has received a professional staffing allocation, including components from a range of education services: early childhood, visiting teacher, liaison time for teachers in schools, advisory time, rural staffing, outdoor education organiser and community education organiser.

Hutt Valley High School band ‘Sanctuary’ at the Smokefree Rock Quest.

The purpose of the REAP is to provide support and assistance of a supplementary and complementary educational nature for all sectors of the defined rural community, across early childhood, primary, secondary and continuing education, which will enhance, promote and provide lifelong learning opportunities, community development and personal development in a manner that is equitable, appropriate, effective and efficient.

From 1 January 1991 the REAPs were bulk funded on the basis of base funding and a per capita amount. Each REAP is an incorporated society. Management committees are locally elected and appointed and will govern and manage the REAP.

Reading Recovery. The Reading Recovery Programme is an early intervention programme which provides intensive individual help to any child who is falling behind in reading and writing after one year at school. During 1992, 14,230 children took part in the programme. Sixty-eight percent of state schools provide reading recovery, representing 85 percent of six year olds.

Resource teachers of reading. These 68 specialist teachers attached to schools throughout New Zealand provide long-term assistance for children with serious reading difficulties.

Information studies and teacher librarianship. A three year part time information studies and teacher librarianship programme is being offered through the six colleges of education. Trained teacher librarians work with other teachers in all subject areas to develop students who are confident, independent learners, capable of using a wide range of information skills and resources. They are also responsible for the management of the school's library resource centre.

Other advisory services. A total of 222 primary and secondary advisers were employed on a full or part-time basis by colleges of education in Auckland, Palmerston North, Wellington, Christchurch and Dunedin and the School of Education at the University of Waikato in 1991. They provide advice and guidance to schools and run professional development programmes for teachers throughout the country. Particular emphasis is given to assisting schools to reach their local and curriculum charter objectives within the context of the national educational guidelines.

Both the Early Childhood Development Unit and the Special Education Service provide specialist assistance and advice.

Learning Media/Te Pou Taki Krero. Learning Media Limited is a registered Crown company. Its principal objective is to provide, through contracts with the Ministry of Education, the basic materials and services necessary to support the national education guidelines. It carries out all aspects of the planning, development, production, dissemination, and promotion of resources for learning. The emphasis is on materials that document and support early childhood education and the national curriculum for schools, for example, curriculum statements, syllabuses, teachers' handbooks, pupils' books and classroom materials in all media. Materials include picture packs, slide sets, audio cassettes, video cassettes, and books of all kinds.

Learning Media also publishes policy documents and international material for the Ministry of Education, the New Zealand Education Gazette, and the School Journal (which is published in four broad parts to cater for different levels in primary schools).

Publishing in the Maori language is an important function of Learning Media, and a range of reading material at different levels is published. A course for teachers to learn Maori, using audio-cassettes and booklets, is available, as are handbooks to assist teachers in planning class programmes in Maori, and a variety of other supporting resources. Pacific Islands language materials are also produced.

The Ready to Read books and associated handbooks for teaching reading in junior classes have proved to be both innovative and successful. They are marketed overseas, especially in the United States and Australia.

Materials are issued free to schools, or at a small charge. People may purchase personal copies of most items at a normal retail price.

Schools receive funding within their operating grants for purchase of additional materials of their choosing from publishers and bookshops. These include textbooks and library items. The work of Learning Media is complementary to that of commercial providers.

TERTIARY ENROLMENTS
Number of students

8.3 Tertiary and continuing education

Universities

There are seven universities in New Zealand. They are the University of Auckland, the University of Waikato, Massey University, Victoria University of Wellington, the University of Canterbury, Lincoln University and the University of Otago.

All universities offer courses in the usual faculties of arts, science, and commerce, while law and music courses are available at Auckland, Victoria, Canterbury, and Otago. Most universities specialise in certain fields. The University of Otago provides courses in medicine, dentistry, physical education, pharmacy and surveying; the University of Canterbury in forestry, engineering and fine arts; Lincoln University in topics related to agriculture and horticulture; the University of Auckland in architecture, planning, engineering, medicine, optometry and fine arts; and Victoria University of Wellington in architecture, public administration, and social work.

Massey University has courses in agriculture, horticulture, food technology, and veterinary science, as well as extra-mural tuition in a wide range of subjects throughout New Zealand. Conjoint programmes leading to the Bachelor of Education degree and Diploma of Teaching are available at several universities in association with local colleges of education.

Each university sets its own programmes, and each university council sets the dates for terms or semesters. All matters relating to management are the responsibility of the council of the institution, which represents the interests of staff, students and community. The council is also responsible for approving course regulations and for maintaining the equivalences of courses for degrees and other qualifications.

UNIVERSITY DEGREES
By subject areas, 1992

Table 8.13. ENROLMENTS AT UNIVERSITIES 1992

CourseMaleFemaleTotal
Source: Ministry of Education.
Postgraduate degrees, diplomas, certificates and other programmes—   
Doctorate1,0076061,613
Masters3,1232,7255,848
Bachelors with honours2,2761,7684,044
Postgraduate diplomas2,7082,8225,530
Postgraduate certificate405380785
        Subtotal9 5198 30117 820
Undergraduate degrees, diplomas, certificates, and other programmes—   
Bachelor degrees33,12237,95871,080
Undergraduate diplomas2,0432,0194,062
Undergraduate certificates7581,1311,889
Institution-awarded certificates2,2392,8475,086
        Subtotal38 16243 95582 117
Adjustment for multiple enrolments3,1833,5696,752
        Total enrolments44 49548 68793 182

Table 8.14. DEGREES AWARDED, 1992

ProgrammeDoctorateMastersBachelors honoursPostgraduate bachelorsBachelors
FemaleTotalFemaleTotalFemaleTotalFemaleTotalFemaleTotal
Source: Ministry of Education.
Education, science and teacher training2466102810--568707
Fine and applied arts--7151014--81122
Humanities6647834476--690978
Religion and theology22261117391950
Social and behavioural science519821644693--7611,387
Commerce and business administration-5762751135--8402,174
Law and jurisprudence115252976--227417
Natural science1968421323672--257565
Mathematics and computer science-5528954--98362
Medical science8297181622--327603
Engineering2145561761--77377
Architectural and town planning--17-1103062196
Agriculture, horticulture, forestry and fishery417310821--92196
Home economics--6667--5769
Communications and transport--23----12
Not specified1362133310166336--1,1042,310
Other-2133411--2245
        Subtotal622345021 27441889613395 28310 560
Less multiple completions1313232961--107264
        Total graduates612314891 25138983513395 17610 296
ProgrammePostgraduate diplomaUnder- graduate diplomaUnder- graduate certificatePostgraduate otherTotal
FemaleTotalFemaleTotalFemaleTotalFemaleTotalFemaleTotal
Education, science and teacher training891322322836267--1,0271,305
Fine and applied arts1623------114174
Humanities97142-333--8871,291
Religion and theology13--12--3989
Social and behavioural science116187-1122163--1,1322,014
Commerce and business administration14143676259----1,1443,184
Law and jurisprudence3412--95173361698
Natural science72518----362870
Mathematics and computer science1743210----131502
Medical science12924766----493925
Engineering1238---3--113549
Architectural and town planning--310----76244
Agriculture, horticulture, forestry and fishery235420162923--159483
Home economics2311----7286
Communications and transport4562710----5577
Not specified116210237299142-41,6543,446
Other-3------3685
        Subtotal8141 612372827296403951777 85516 022
Less multiple completions16394266223870248528
        Total graduates7981 573330761294401571077 60715 494

BACHELOR DEGREES AWARDED
Percentage, 1991

Discussing educational issues at a political ‘market day’ at Canterbury University.

MOST POPULAR UNIVERSITY PROGRAMMES 1991

Table 8.15. ASSISTED OVERSEAS STUDENTS AT NEW ZEALAND UNIVERSITIES, 1992

Form of assistanceTotal

*Ministry of Foreign Affairs and Trade.

Grant parented—overseas students enrolled prior to 1989 are treated the same as New Zealand students until their term of study is completed.

Source: Ministry of Education.

MFAT* Full scholarship440
MFAT* Fees scholarship572
Full-fee paying984
Exchange scheme123
Transition—grant parented†308
Postgraduate Research32
Not stated192
Treated as New Zealand student449
        Total2 952

Table 8.16. UNIVERSITY STAFF, 1991*

PositionFull-timePart-timeTotal
MaleFemaleMaleFemale

*As at 31 July.

Source: Ministry of Education.

Academic staff—     
Vice-Chancellor171--18
Professor3451639-400
Associate professor34232374415
Senior lecturer1,167195381881,831
Lecturer69350162871,343
Assistant lecturer8897151123459
Teaching fellow1110151349
Other academic staff15--6
        Total academic staff2 6648576853154 521
Support staff—     
Management6318--81
General clerical3221,333664932,214
Technical788299241061,217
Library8929438185606
Computer166441612238
Community, liaison and welfare4742818115
Medical947727
Early childhood 8-311
Trades24225114282
Grounds keeping71101-81
Care taking, cleaning and security1213928237425
        Total support staff1 9182 1161891 0575 298
        Total staff5 9032 9738741 3909 819

Table 8.17. UNIVERSITY STUDENTS

YearInternal studentsExternal studentsTotal
MalesFemalesMalesFemales
Source: Ministry of Education.
198727,04824,9915,6348,76266,435
198829,18827,7425,9299,45472,313
198932,04430,8316,3889,96079,223
199032,86132,4335,5458,08078,919
199136,14836,2336,3039,28987,973
199237,77638,5446,71910,14393,182

UNIVERSITY ATTENDANCE
By form of enrolment, 1992

A queue of enrolling Otago University students.

Student allowances

The reformed Student Allowances Scheme, introduced on 1 January 1992, provides a range of allowances for tertiary students 16 years and over, and secondary students aged 18 years and over on 1 January of the year they are attending secondary school.

For single students the rate of allowance is dependent on the student's age, parental income (if student is under 25 years old) and whether or not the student lives at home. There are also separate rates for students with a dependant spouse and/or dependant children, and married students.

In addition, there are two separate provisions allowing for students under 25 years to apply for an allowance without being tested on the taxable income of both parents. These are:

  • The provision for establishing independence from a parent, whereby the targeted allowance will be based on only one parent's income.

  • The Independent Circumstances Allowance, where the student can be considered independent of both parents and receive the maximum targeted allowance.

Students living away from their parental home may also qualify for an accommodation benefit, if they are receiving a targeted student allowance.

Rates of allowances may change annually and may be subject to review. The Ministry of Education annually updates the Student Allowances Information Booklet which is available from the Student Allowances Officers at each polytechnic, college of education, and university, and from the Student Loans and Allowances Division, Ministry of Education, National Office.

Student Allowances Officers at each tertiary institution are also available to assist students and potential students with inquiries relating to student allowances.

Table 8.18. STUDENT ALLOWANCE CLIENTS AT 31 JULY 1992

Allowance typeSecondary schoolsPolytechnicsColleges of educationUniversitiesPrivate institutionsTotal
Source: Ministry of Education.
16–24 years old away from home1304,8541,18611,74831318,231
16–24 years old at home6724,1314754,80513810,221
25+ away from home331,7803912,8282115,243
25+ at home7264463345656
Accommodation benefit2108,7362,12317,41273729,218
Couple allowance626071654641,055
Students with dependants217972807941152,007
Independent circumstances511,0231761,372642,686
Earning spouse away15321602137
Earning spouse at home12726404790321,964
        Total allowances1 14322 6245 17340 7971 68171 418
Adjustment for more than one allowance2108,7352,12317,40573629,209
        Total students93313 8893 05023 39294542 209

Polytechnic education

Over recent decades vocational education and training has moved away from the secondary to the continuing education sector, with training formerly provided by technical high schools now provided for by polytechnics. Polytechnics provide a diverse range of vocational education resources and cover an increasing number of subjects at various levels of specialisation.

There are 25 polytechnics in New Zealand. They are Northland Polytechnic, Unitec-Institute of Technology, Auckland Institute of Technology, Manukau Polytechnic, Waikato Polytechnic, Bay of Plenty Polytechnic, Waiariki Polytechnic, Tairawhiti Polytechnic, Hawke's Bay Polytechnic, Wairarapa Community Polytechnic, Taranaki Polytechnic, Wanganui Regional Polytechnic, Manawatu Polytechnic, Whitireia Polytechnic, Central Institute of Technology, Open Polytechnic of New Zealand, Hutt Valley Polytechnic, Wellington Polytechnic, Nelson Polytechnic, Tai Poutini Polytechnic, Christchurch Polytechnic, Aoraki Polytechnic, Otago Polytechnic, Telford Polytechnic and Southland Polytechnic.

Polytechnics are controlled by their own councils. Members of polytechnic councils represent business, industry, local authorities, universities, women's and ethnic groups, as well as education and community interests.

The Open Polytechnic of New Zealand. This is New Zealand's largest education provider, with over 350 tutors and 120 support staff educating more than 30,000 students every year. Nearly 75 percent of these students are in paid employment and are therefore studying part-time.

The polytechnic offers over 700 courses, spanning from certificate to degree level. Subjects range from the new Bachelor of Business degree, real estate, hairdressing and agriculture, to plumbing and airline pilot's licences. Many subjects are available to senior secondary school students under the polytech's nationwide ‘link’ scheme.

POLYTECH ENROLMENTS
Percent in selected programmes 1991

TOPNZ is recognised internationally as a leader in open learning. Open Learning provides maximum choice in how, when, where and at what pace students learn. It allows students to learn what they want, within the bounds of what they can afford or are willing to pay, while also ensuring the courses meet nationally recognised standards. This means open learning is extremely flexible. The study material and methods of delivery can be modified to meet any organisation or individual's needs. Students can enrol for most TOPNZ courses at any time of the year. Students have ready access to their tutors on a one-to-one basis through the use of a toll-free telephone line.

While printed material is still the main learning resource, other modes such as audio and video cassettes are increasingly part of correspondence material sent to students. Teleconferencing, face-to-face seminars, computer networking, workplace training packages, study groups and block courses are also used when closer student contact is needed. Future teaching mediums include video conferencing and interactive video.

Another new initiative from this polytechnic is a range of stand-alone consultancy services to businesses. This includes services such as helping companies assess their current training resource standards and helping them design their own courses.

Authority for Advanced Vocational Awards and Trades Certification Board examinations. The New Zealand Qualifications Authority has responsibility for Trades Certification and Advanced Vocational Awards, including the curriculum and examination of all three-stage technician certificates, five-stage New Zealand Certificate Courses and the examination of candidates sitting trade certificate or advanced trade certificate qualifications. The New Zealand Diploma offers an advanced qualification for students who have completed a New Zealand Certificate in the same, or a related, area.

Technician courses—Both the five-year New Zealand Certificate and the three-year Technicians' certificate are offered in a variety of vocational areas. New Zealand Certificate courses are part-time and require regular study at day-release and evening classes or intermittent periods of full-time study block courses.

Most subjects may be studied through the Open Polytechnic of New Zealand. Students may also study selected New Zealand certificate courses full time at a polytechnic. All New Zealand certificates require students to complete not less than three years of suitable work experience.

Trade courses—Training for trade qualifications accounts for a significant percentage of the work of polytechnics. The New Zealand Qualifications Authority has approved a wide range of trade courses and prescriptions under which assessment, examination and certification are conducted. Education and training requirements for the various trades are listed in the respective prescriptions. They specify a mix of theory and practical training, to be obtained through education providers and through on-job experience. The completion of prescribed requirements leads to issue of Trade Certificate and Advanced Trade Certificate qualifications.

Table 8.19. TECHNICIAN, TRADE AND INDUSTRIAL PRACTICE CERTIFICATES ISSUED

Year ended JuneTechnicians NZ. certificates Diploma three-stageNZ. certificates five-stage course finalTrade certificatesAdvanced trade certificatesIndustrial practiceTypingShorthandIndustrial Practice
IntermediateBasic

*Includes typing and shorthand.

Source: NZ Qualifications Authority.

1987..1794943,3211,0571,3182,230103....
1988..3724552,8909801,6772,18960....
1989..3489053,1859434,5365,202 ....
1990..755612,7831,0425,7314,528217....
1991161041,3722,507633......4,5215,150
19926526602,358608......4 556*5,254

Other courses. In addition to the national trade and technician courses, there is a large number of important courses such as national certificate, national diploma and polytechnic diploma courses. These have been developed nationally to meet vocational needs. These include courses in business studies, electronic data processing, journalism, and industrial and commercial design and crafts. In addition, instruction is given on the separate examination syllabuses for independent organisations such as the New Zealand Society of Accountants, the New Zealand Institute of Management, and the Real Estate Institute of New Zealand. A wide range of vocational courses has also been organised regionally to meet local demands. Many full-time polytechnic students take a three-year full time nursing course.

Transition education

Schools, polytechnics and community providers play important roles in providing transition education and training.

Schools funding is currently supplemented by tagged funding additional to entitlement to encourage schools to both maintain alternative programmes leading back to the mainstream, and to encourage the integration of transition skills development across the curriculum. Polytechnics provide substantial and numerous transition programmes to assist people to move into higher level education and training courses. Other programmes to assist young people to move more effectively from school to the post-school world are offered on contract to the Education and Training Support Agency (Training Opportunities Programme—TOPs). A number of community and private providers are involved in the provision of TOPs courses.

Waikato Polytechnic joinery apprentice.

Schools, polytechnics and community providers are all involved in the Link Programme, which allows secondary students to undergo specialised vocational education and training or to experience the tertiary education sector, while continue their secondary study. The Careers Service has responsibility for the co-ordination and administration of Link, as part of its statutory role in the promotion and facilitation of career development and transition education programmes. The administration of Link is one of the outputs in the document of accountability as are the Manaaki Programmes which seek to increase Maori participation in senior secondary and tertiary education. Decisions on the Link courses to be purchased are made by 22 Link Advisory Committees which represent school interests. There is over 50 percent female participation in these courses.

Table 8.20. ENROLMENTS AT POLYTECHNICS, 1992

Level of EmploymentMaleFemaleTotal
Source: Ministry of Education.
Level 3—General and vocational26,11123,10749,218
Level 5—NZ. Certificate/Diploma National Advanced/National Certificate24,99022,83447,824
Level 6—National Diploma/Polytechnic Degree3,1694,0867,255
Level 8—Access/Foundation/Pre-employment2,5582,1524,710
        Total56 82852 179109 007
Adjustment for multiple enrolments5,1895,17210,361
        Total students51 63947 00798 646

Continuing education

National Resource Centre for Adult Education and Community Learning. In 1990 the resource centre was established to: promote and assist the adult and normal education needs of the community, collect and distribute information resources; act as a network centre for people and groups involved in adult and community learning; set up and monitor research and help groups with their own research projects; and accommodate national community learning organisations. This centre is funded by a grant from the Ministry of Education.

Community Learning Aotearoa New Zealand (CLANZ). This group was established as the result of the report to the Minister of Education by the interim advisory group on non-formal education. Its function is to disburse grants to community groups for non-formal adult learning projects.

University extension. All seven universities have centres for continuing education.

A typical university education centre has a director-in-charge and a staff of lecturers in a range of academic disciplines. The courses are conducted by various methods—lecture courses, study conferences, seminars, schools of varying lengths (both residential and non-residential), and correspondence courses. Most universities continue to offer the general public substantial extension programmes in the liberal studies area. There has been, however, a significant increase in programmes designed for specialist groups, especially occupational. Some of these are national in scope.

Community education programmes. Most organised adult education is provided by day classes and community education activities at secondary schools. There has been an increase in adult classes leading to School Certificate examination, but there is also a wide range of other examinable and non-examinable courses. In July 1992 there were the equivalent of 2,470 full-time adult students attending day classes at secondary schools. This is in addition to the community education programmes in schools which had 49,782 enrolments.

Polytechnics also provide a range of community education courses and programmes for adults both on-campus and through out-posts established to give students in smaller centres the opportunity of participating in some form of tertiary education. Enrolments in non-formal and community education courses in polytechnics reached 35,631 in 1992.

Correspondence education. The main agencies in the field of distance education are the Correspondence School, the extramural studies department of Massey University (with 15,678 students enrolled in 1992), and the Open Polytechnic of New Zealand (with 17,486 students enrolled at 31 July 1992).

Community centres. Community centres are school-based community learning centres. To date community centres have been established in association with a primary school, an intermediate school and 11 secondary schools, with eight secondary schools having Ministerial approval to appoint community education co-ordinators as permanent staff.

Generally, community learning centres receive additional professional and ancillary staffing entitlement and an annual grant in addition to the tutor hour and co-ordination resources allocated to the secondary schools which organise community education activities for adults. Other schools offer successful programmes within their own resources. All have developed community education programmes with the aim of increasing community involvement in community development by making a wider use of schools for expanded extension programmes and by using the resources of the community.

Organisations contributing to non-formal and continuing education. Many voluntary organisations make some provision for continuing education. For most of them, such as the Playcentres Federation, and the Country Women's Co-ordinating Committee, continuing education is only one aspect of their overall activities. However, several organisations, such as the New Zealand Workers' Educational Association, Adult Reading and Learning Assistance and Te Ataarangi have community education as their primary purpose.

New Zealand Workers' Educational Association—this is an independent voluntary organisation which provides further educational opportunities for adults. District councils are located in Auckland, West Auckland, New Plymouth, Kapiti Coast, Wellington, Lower and Upper Hutt, Manawatu, Canterbury, Otago, and Southland. Branches exist in Upper Hutt, Lower Hutt, and 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.

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 Country Women of the World. Its main focus is on the South Pacific, giving financial and practical aid, and assistance with the training of women in the Pacific Islands.

Contributors

  • 8.1 Ministry of Education; New Zealand Council for Educational Research; Education Review Office; Teacher Registration Board; Maori Education Foundation; New Zealand Qualifications Authority; Education and Training Support Agency; The Careers Service—Quest Rapuara; Open Polytechnic of New Zealand.

  • 8.2-8.3 Ministry of Education.

Special articles

Central Institute of Technology; Early Childhood Development Unit; Ministry of Women's Affairs; New Zealand Qualifications Authority; Creative Learning Company.

Further information

Annual Report of the New Zealand Council for Educational Research.

Education Statistics of New Zealand. Ministry of Education (annual).

Educational Research Series. New Zealand Council for Educational Research.

New Zealand Polytechnic, College of Education and Teacher Trainee Summary Statistics 1991. Ministry of Education.

Report of the Ministry of Education (Parl paper E1)

Report of Education Review Office (Parl paper E39)

Report of Education and Training Support Agency (Parl paper E46)

Report of Career Development and Transition Education Service (Parl paper E27)

Report of New Zealand Qualifications Authority (Parl paper E44)

Report of the Maori Education Foundation (Parl paper E24)

Report of the Pacific Islands Polynesian Education Foundation (Parl paper E21)

Report of the Teacher Registration Board (Parl paper Ex).

Reports of the University Grants Committee and University Institutions (Parl paper E3).

Secondary Staffing Survey. Research and Statistics Division, Ministry of Education (annual).

Staffing of State Primary Schools 1992. Ministry of Education.

Staffing of Form 1–7 and Form 3–7 State Secondary Schools 1992. Ministry of Education.

Chapter 9. Justice and law

Judges arriving at first day in the new High Court, Wellington

9.1 Legal system

New Zealand has inherited a tradition of an independent judiciary, seen as a protection against unnecessary intrusion by the state in the lives of citizens. The Judicature Act 1908 and the Constitution Act 1986 contain a number of constitutionally significant provisions, designed to ensure judicial independence. Judges (including those who sit in the Court of Appeal) are appointed by the Governor-General. Neither Court of Appeal nor High Court Judges may be removed from office except by the Sovereign or the Governor-General on grounds of misbehaviour or incapacity upon an address of the House of Representatives. District Court judges may be removed from office by the Governor-General, but only on the grounds of inability or misbehaviour.

The salaries of judges are determined by the Higher Salaries Commission under the Higher Salaries Commission Act 1977. Salaries may not be diminished during a judge's 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 seven years. The retirement age is 68, although former judges may be reappointed as acting judges for two years, or one year if the judge is 72 years of age or over when reappointed.

Hierarchy of courts

At the head of the hierarchy of courts of New Zealand is the Judicial Committee of the Privy Council. Below this is the Court of Appeal, followed by the High Court, and the District Courts. All courts exercise both criminal and civil jurisdiction.

The Judicial Committee of the Privy Council. The Privy Council is the final appeal tribunal for New Zealand.

The judicial committee is not an English court, although its members are primarily eminent British judges. 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, instead it submits its opinion on a case it has heard to the Sovereign, who is then required to make the necessary order.

Appeals to the Privy Council may be brought by leave of the court appealed from, or by special leave of the Privy Council itself. Leave is granted as of right from any final judgment of the Court of Appeal, 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.

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

The primary function of the Court of Appeal 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 the lower courts may, by order of the High Court, be removed to the Court of Appeal. The court does, however, also have some original jurisdiction.

The court consists of the Chief Justice, who is a member by virtue of his or her office as the head of the judiciary; a judge of the High Court appointed by the Governor-General as its President; and five other judges of the High Court appointed by the Governor-General as judges of the Court of Appeal. Additional judges of the High Court may be nominated by the Chief Justice to sit on the Court of Appeal. The judges of the Court of Appeal are also judges of the High Court. They have seniority over all other judges of that court except the Chief Justice or the acting Chief Justice.

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

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

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

Being admitted to the Bar, Dunedin.

The High Court. The High Court of New Zealand was first established (as the Supreme Court) in 1841. It has all the jurisdiction which may be necessary for a court to administer the laws of New Zealand.

The High Court exercises jurisdiction in cases of major crimes, Admiralty proceedings, the more important civil claims, appeals from lower courts and tribunals, and reviews of administrative actions. The High Court also has inherent jurisdiction to punish for contempt of court. It consists of the Chief Justice and 32 other judges, as prescribed by the Judicature Act 1908. An additional judge or judges may be appointed, by the Governor-General when it is deemed necessary due to the illness, absence or anticipated absence of any judge.

All the judges of the High Court are stationed in Wellington, Auckland, Hamilton, or Christchurch. The High Court travels on circuit to Whangarei, Rotorua, Gisborne, Napier, New Plymouth, Wanganui, Palmerston North, Blenheim, Nelson, Greymouth, Timaru, Dunedin and Invercargill. There are High Court offices at Masterton and Tauranga, but the court does not sit in those areas.

Commercial list—instead of being included in the normal order of cases to be heard in the High Court, a separate list of commercial cases is kept to ensure they are resolved quickly. The Judicature Amendment Act 1986 made provision for the establishment of this list at the office of the High Court at Auckland for an initial period of four years. The Governor-General may extend that period by notice in the New Zealand Gazette or declare that it continue indefinitely.

Masters—there may be up to six masters of the High Court with the legal qualifications and experience necessary for judicial appointment. Masters may exercise certain powers of the High Court concurrently with High Court judges. Masters deal inter-alia with applications for summary judgments, specified company and land transfer matters, the assessment of damages where liability has been determined, and trials where the amount of the debt or damages only is in dispute. There are at present six masters: Master Anne Gambrill, Master J W Hansen, Master R P Towle, Master J H Williams QC, Master T Kennedy Grant and Master P F Feenstra.

Table 9.1. JUDGES OF THE COURT OF APPEAL AND HIGH COURT*

*As at 10 September 1993.
Chief Justice:Rt Hon Justice Sir Thomas Eichelbaum, GBE.
Court of Appeal:Rt Hon Justice Sir Thomas Eichelbaum, GBE (ex officio); Rt Hon Justice Sir Robin Cooke, KBE, President; Rt Hon Justice Sir Ivor Richardson; Rt Hon Justice Sir Maurice Casey; Rt Hon Justice M Hardie-Boys; Rt Hon Justice T M Gault; Rt Hon Justice I L McKay;
High Court:Rt Hon Justice Sir Thomas Eichelbaum, GBE; Hon Justice R I Barker; Hon Justice A D Holland; Hon Justice T M Thorp; Hon Justice L M Greig; Rt Hon Justice T M Gault; Hon Justice J H Wallace; Hon Justice D L Tompkins; Hon Justice R G Gallen; Hon Justice J S Henry; Hon Justice R A Heron; Hon Justice A A T Ellis; Hon Justice N W Williamson; Hon Justice R P Smellie; Hon Justice R E Wylie; Hon Justice R A McGechan; Hon Justice J A Doogue; Hon Justice A P C Tipping; Hon Justice N C Anderson; Hon Justice J B Robertson; Hon Justice R L Fisher; Hon Justice C C Fraser; Hon Justice D P Neazor; Hon Justice E W Thomas; Hon Justice P G S Pennlington; Hon Justice P B Temm; Hon Justice D A R Williams; Hon Justice P Blanchard; Hon Justice R G Hammond.

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, at present limits the number of District Court judges to 98. Judges are appointed by the Governor-General, who also appoints a Chief District Court Judge. The Chief Judge oversees the administration of the courts and also sits in court. District Courts have extensive civil and criminal jurisdiction. A number of District Court judges are specially warranted to preside over jury trials of criminal cases.

Justices of the Peace can sit as a District Court judge to hear a limited number of minor criminal and traffic charges which, if proven, attract a maximum fine of $500.

Specialist courts

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

Employment Court. This court is constituted under the Employment Contracts Act 1991. It consists of the Chief Judge of the Employment Court and five other judges appointed from time to time by the Governor-General. Qualifications for appointment, tenure and retirement age are the same as those applying to High Court judges. The Employment Court is located only in Auckland, Wellington and Christchurch.

Broadly speaking, the Employment Court has jurisdiction to deal with matters in the labour relations field. These include hearing and determining appeals or reviews of adjudicated decisions of the Employment Tribunal (see below) in respect of personal grievances, disputes about employment contracts etc; hearing and determining any questions of law referred to it by the tribunal; hearing and determining penalties in relation to freedom of association and strikes and lockouts; and issuing compliance orders on specified matters.

Family Courts. Family Courts have been established since 1980 as divisions of the District Courts. The Governor-General appoints the Family Court judges—who are also judges of the District Court—and a Principal Family Court Judge.

Family Courts have jurisdiction to deal with dissolution of marriages, adoption, guardianship applications, domestic actions, matrimonial property, child support, care and protection applications in respect of children and young persons, and similar matters. They may state a case on a point of law to the High Court or transfer complex proceedings to that court.

Youth Courts. These courts are constituted by the Children, Young Persons, and their Families Act 1989. The jurisdiction of the courts is exercised by specially designated District Court judges. Offences committed by children (under 14 years) and young persons (older than 14 but less than 17 years of age) come before the Youth Courts initially and most are dealt with there. The remainder proceed to District Courts or the High Court. The Youth Courts do not hear matters relating to the care or protection of children and young people. These are dealt with in the Family Courts.

Maori Land Court and Maori Appellate Court. These courts are constituted under the Te Ture Whenua Maori Act 1993 and have jurisdiction to hear matters relating to Maori land. The Governor-General may from time to time appoint a Chief Judge and other judges of the court as may be required. The judges of the Maori Land Court are also judges of the Maori Appellate Court. Three or more of the judges have power to act as the Maori Appellate Court.

The Maori Land Court or the Maori Appellate Court may state a case for the opinion of the High Court on any point of law arising in proceedings before it. The decision of the High Court is subject to an appeal to the Court of Appeal. The decision of the High Court or Court of Appeal, as the case may be, on any case stated is binding on the Maori Land Court and the Maori Appellate Court. See section 15.1, Maori land for more information.

Tribunals

Over 100 tribunals, authorities, boards, committees or related bodies exist to deal with disputes, largely between individuals, on matters such as environmental planning; economic issues; scientific and technical matters; censorship; welfare and benefits; taxation; occupational licensing and discipline; activity licensing, eg, shop trading hours and company registration. The main tribunals which deal with individual disputes are described below together with the Waitangi Tribunal and the Planning Tribunal, two of the most important of all tribunals.

Employment Tribunal. The Employment Tribunal is constituted under the Employment Contracts Act 1991. It consists of the Chief of the Tribunal and 13 other mediator and/or adjudicator members, appointed from time to time by the Governor-General. The tribunal is located in Auckland, Wellington, Christchurch and Dunedin.

The tribunal's jurisdiction includes:

  • Providing mediation assistance in all matters properly brought before it (here the parties are assisted to resolve their differences for themselves). Emphasis is placed on mediation as a first step towards resolution of differences between employers and employees.

  • Adjudicating on unresolved personal grievances, disputes about employment contracts, recovery of unpaid or underpaid wages, and recovery of penalties for breach of an employment contract or certain parts of the Employment Contracts Act (adjudication involves both parties stating their case to an adjudicator and the adjudicator making a decision for them).

  • Issuing compliance orders on specified matters.

Open day at Hamilton's new courthouse.

Appeals or reviews of tribunal decisions involving adjudication can be taken in the Employment Court.

Disputes Tribunals. These tribunals (previously known as Small Claims Tribunals) were established in 1976 as divisions of the District Courts. The tribunals have jurisdiction to determine disputes up to a value of $3,000 based on contract, quasi-contract, or tort (in respect of the destruction or loss of any property, damage or injury to any property, or recovery of property). Claims may also be determined by the tribunal up to the value of $5,000 if the plaintiff and the defendant agree to settle in this way, rather than take the matter to a higher court. Every District Court, apart from the five courts with police registrars, has a disputes tribunal. There are 54 part-time referees to service the 56 tribunals.

Equal Opportunities Tribunal. This tribunal was set up under the Human Rights Act 1977 to deal with complaints of unlawful discrimination. Each sitting of the tribunal consists of a barrister or solicitor who has not less than seven years practice and two other appointees with experience in the area.

Residential Tenancies Tribunals. These were set up under the Residential Tenancies Act 1986 to determine all disputes arising between landlords and tenants, to which the Act applies. The tribunals adjudicate on disputes relating to discrimination, notice to quit, bond, and rent arrears. They are set up on similar lines to disputes tribunals—the hearings take place at District Court premises under the authority of part-time referees. See also section 20.1, Housing.

Waitangi Tribunal. This tribunal was set up under the Treaty of Waitangi Act 1975 to consider claims by the Maori people under the Treaty of Waitangi. It was originally set up to consider only claims from 1975 onwards but its jurisdiction was extended in 1985 to claims dating back to 1840. See also section 5.4, Maori population.

Planning Tribunal. This tribunal was constituted by the Town and Country Planning Act 1977 and is continued under the Resource Management Act 1991. The tribunal consists of not more than five Planning Judges and not more than 10 Planning Commissioners appointed by the Governor-General on the recommendation of the Minister of Justice, after consultation with the Minister for the Environment and the Minister of Maori Affairs. Any number of alternate Planning Judges and Deputy Planning Commissioners may hold office.

The Planning Tribunal has jurisdiction to determine appeals, applications, submissions and references under the Resource Management Act 1991, proceedings commenced under the former Town and Country Planning Act 1977, and other relevant legislation. These are predominantly concerned with land and water use.

Sources of law

The law of New Zealand consists of the common law, statute law enacted by the New Zealand Parliament, a number of United Kingdom statutes which are still in force in New Zealand, regulations, by-laws, and other forms of subordinate legislation.

The common law. Sometimes referred to as case law or judge-made law, the common law is based on general rules developed by the courts in England over centuries and became part of the law of New Zealand in 1840. Like any statute 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 other parts of the Commonwealth, notably the United Kingdom, Australia, and Canada. The common law can be reversed or amended by statute law.

New Zealand statutes. Parliament has full power to make laws having effect in, or in respect of, any part of New Zealand and laws having effect outside New Zealand. The extra-territorial law-making power is rarely exercised, except in relation to crimes committed aboard Commonwealth ships or aeroplanes or any ship or aircraft that arrives in New Zealand.

United Kingdom statutes. A number of United Kingdom statutes are still in force in New Zealand. They are those statutes passed before 1840 (when New Zealand first became a British colony) which were applicable to the circumstances of the colony at that date, and others passed between 1840 and 1947 which extended to New Zealand expressly or by necessary implication. Many United Kingdom statutes have been repealed or replaced by enactments of the New Zealand Parliament. A few of particular constitutional significance remain: the Magna Carta of 1297, the Habeus Corpus Act 1679, and the Act of Settlement 1700.

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

Law Commission

The Law Commission is an independent advisory body set up to undertake the systematic review, reform and development of New Zealand law. It aims to help achieve coherent and accessible laws that reflect the heritage and aspirations of New Zealand society. Established by the Law Commission Act 1985, the commission is funded through Vote: Justice, has a membership of five commissioners, and maintains a staff of between 10 and 15 legal researchers and a director.

The Law Commission may initiate projects or may be given references by the Minister of Justice. In making its recommendations the commission is required to take into account te ao Maori and to give consideration to the multicultural character of New Zealand society. It consults widely when developing its proposals for reform and generally publishes discussion papers inviting responses before formulating final recommendations. In all its work, the commission must have regard to the desirability of simplifying the expression and content of the law.

The commission currently has five references from the Minister of Justice. The first calls for an examination of the law, structures and practices governing the procedure in criminal cases from the time an offence is suspected to have been committed until the offender is convicted. The second major reference asks the commission to examine the rules of evidence and make recommendations for their reform, with a view to codification. The third reference is concerned with the legal position of the Crown, including the civil and criminal liability of the Crown and its officers and agencies and a review of the Crown Proceedings Act 1950. As an adjunct to this work, the commission is proposing to consider the question of state immunity. The fourth reference is to make the law and practice governing the remedy for unlawful detention known as habeas corpus clearer and more accessible, and the fifth is a review of some of the provisions of the Official Information Act 1982.

The commission plans to report shortly on a review of the Property Law Act 1952 and the doctrine of tenure. It has recently taken on a major project to review the law of succession as well as smaller projects on the areas of guarantees and remedies for wrongs to goods.

Finally, the commission is aware of the growing importance of international legal developments for New Zealand and is at present working on several aspects of private international law. More generally, the commission strives to ensure that its work takes account of relevant international considerations, whether that be treaties or agreements to which New Zealand is a party or the growing harmonisation of New Zealand law with that of our trading partners.

Civil jurisdiction

The High Court has original jurisdiction to hear and determine civil proceedings including:

  • Proceedings in contract and tort.

  • Equity.

  • Supervisory powers over inferior courts and tribunals.

  • Wills and administration of the estates of the deceased.

  • Dissolution of partnerships and the taking of partnership accounts.

  • The sale and distribution of the proceeds of any property subject to a lien or charge.

  • Proceedings relating to mortgages, leases, sale, or partition of land, including specific performance of contract.

  • Execution of trusts, charitable or private.

  • Rectification, or setting aside, or cancellation of deeds or contracts.

  • Proceedings relating to the insolvency of individuals and companies.

  • Family law (matrimonial property, and proceedings under the Family Protection Act 1955).

  • Electoral petitions.

  • Admiralty.

  • Absconding debtors.

The High Court also issues declaratory judgments and hears appeals from the District Courts and from a number of administrative tribunals. Decisions on many civil proceedings in the High Court may be appealed to the Court of Appeal.

District Courts have jurisdiction to hear proceedings founded on contract or tort and other civil claims (including equitable claims) where the amount of the debt, demand, or damage, or the value of the chattels claimed is no more than $50,000. In proceedings for the recovery of land the courts have jurisdiction if the rent payable (if any) does not exceed $25,000 a year or where the value of the land does not exceed $200,000. The District Courts may hear proceedings involving a claim exceeding $50,000 if the parties agree in writing that the court has jurisdiction to hear and determine the proceedings.

Jury service

Every person between the ages of 20 and 65 years (inclusive) is eligible for jury service, subject to some exceptions. Those 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. Also precluded are people with recent prison records and those who have been imprisoned beyond three years.

Legal aid

Legal Services Act 1991. This Act brings together in one statute the civil and criminal legal aid schemes and aligns them as far as possible. It also gives statutory recognition to the duty solicitor scheme and to community law centres. The Act establishes a new administrative structure—the Legal Services Board and District Committees. The board is responsible for the legal aid budget. Its role is, however, wider. It can for instance investigate other ways of providing legal services to the public and set up pilot schemes.

Community law centres and neighbourhood law offices

These are offices set up to provide various legal services, particularly advice to people who cannot afford a lawyer. They also develop legal resource material. There are currently eight such offices nationally. They receive funding from a variety of sources, including city councils and central government, and the amount of funding varies from centre to centre. Staff are paid out of these funds.

9.2 Criminal justice

In New Zealand the more serious crimes are defined by the Crimes Act 1961. The Summary Offences Act 1981 provides for a wide variety of lesser offences not included in the Crimes Act. These include offences such as disorderly behaviour, offences against public order, offences against the person and property—such as common assault, wilful damage, and loitering and trespass.

A new Crimes Bill was introduced in 1989 and referred to Parliament's Justice and Law Reform Select Committee. The bill represented the first major review of New Zealand's criminal law since the enactment of the Crimes Act 1961. It proposed significant changes to the law relating to murder and manslaughter. The bill also set out the basic principles of criminal responsibility, updated the rules relating to parties, conspiracies and attempts, and rewrote and streamlined the law governing property offences. New offences were proposed, to deal with the theft of trade secrets and interference with computers. The Crimes Consultative Committee, which was set up in 1989 by the then Minister of Justice to examine the bill, presented its report to the Hon. Douglas Graham in April 1991. The report recommends that an amended version of the bill should proceed. As yet no further action has been taken.

Anti-theft signs, Auckland.

Reported non-traffic offences

For the year ended 30 June 1993, a total of 508,029 offences were reported to police, an increase of 6.5 percent from the previous year. The clearance rate was 39.6 percent in 1992 compared with 41.9 percent in 1991. The number of violent offences increased from 28,439 for the year ended 30 June 1991 to 29,120 at the same time in 1992.

During the year 40 murders were investigated. The number of robberies reported was 1,821, an increase of 2.2 percent over the previous year. Aggravated robbery decreased by 2.5 percent from 1,053 offences for the year ended 30 June 1992 to 1,026 in 1993. Non-aggravated robbery increased by 9 percent from 577 offences to 630 offences.

There were 1,193 reported sexual violations (a 28.8 percent increase in the number of offences reported in 1992). The clearance rate increased from 66.4 percent to 74.8 percent. The number of sexual offences increased by 13 percent, while that of sexual attacks increased by 26 percent.

During 1992-93 non-cannabis drug offences decreased by 5.2 percent to 1,206 when compared with the previous year. Cannabis offences increased by 8 percent to 21,036 and of these, 13,067 cases were prosecuted.

In total, reported drug and anti-social offences increased by 8.6 percent from 45,780 to 49,741 but the clearance rate increased from 88.9 percent to 90 percent.

Dishonesty offences reported decreased marginally (0.6 percent) but still accounted for the major proportion of all reported non-traffic offences, 68.4 percent compared with 70.4 percent in 1992. Within this group, burglary offences decreased by 1 percent from 101,633 to 100,604, theft increased by 1.6 percent from 147,471 to 149,842, vehicle takings and interference decreased by 7.2 percent from 67,365 to 62,457 and fraud increased by 3 percent from 29,959 to 30,858.

Of the 28 police districts, 13 reported a decrease in the number of reported non-traffic offences during the year ended 30 June 1993.

Children and young persons (ie, those under 17 years of age) were responsible for 18.9 percent of cleared offences and 46 percent of all offenders were under 21 years of age. Of all offenders, 80.3 percent were male and 19.7 percent were female. In the offence category of dishonesty, 30.5 percent of cleared offences involved children and 55.7 percent of offenders in this category were aged under 21 years.

Criminal proceedings

District Court judges deal summarily with the majority of indictable offences. They have jurisdiction over all crimes against property and all but the most grave of other crimes, such as treason, homicide, unlawful sexual connection, and perjury. A District Court judge may, however, decline to deal with an offence summarily, and the accused is committed for trial in the High Court in the ordinary way. The accused person also has the right to claim jury trial if he or she is charged with any offence, indictable or summary, punishable by imprisonment for more than three months.

District Court trial courts, currently located in 19 centres, hear cases for all criminal trials except the most serious of indictable offences, which are dealt with in the High Court. Criminal cases in the High Court are of two classes: those actually committed for trial or sent up for sentence.

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.

Convictions for non-traffic offences

Since the last Yearbook, a number of changes have been made to the formats which the Policy and Research Division of the Department of Justice uses to group offences into the main offence categories (violent, property, etc) and sub-categories (fraud, theft, etc). These changes make the categories that various individual offences are placed in more consistent. The figures provided have been using the new formats.

The total number of prosecutions for non-traffic offences was higher in 1992 than in any of the six previous years. The proportion of prosecutions resulting in a formally recorded verdict of the court that the charge has been proved has been falling in recent years, and continued to fall in 1992. This trend was influenced by increased use of diversion by the police. The rise of ‘not proved’ verdicts does not mean that there has been an increase of prosecutions where the charge could not be proved. Diverted cases do not result in a formally proved verdict, but a necessary condition of diversion is that the offender admits guilt.

In each year between 1986 and 1990, 70 percent to 71 percent of all prosecutions resulted in conviction, but the proportion in 1992 (67 percent) was slightly lower. The severity of offences which lead to conviction has continued to increase. During 1992, convictions related to much more serious offences (on average) than convictions ten years earlier.

Table 9.2. CONVICTIONS FOR ALL OFFENCES*

Offence type19831984198519861987
Violent6,6607,4027,6277,9888,758
Other against persons2,4712,8582,9213,5183,685
Against property49,56750,42750,22353,52855,053
Involving drugs7,8029,76110,94311,70112,325
Against justice4,9475,2305,2675,5806,118
Against good order6,7567,3267,9068,6478,297
Miscellaneous23,98023,69823,98021,61616,574
        Total102 183106 702108 867112 578110 810
Offence type19881989199019911992Overall percentage change

*Except traffic offences.

Source: Department of Justice.

Violent9,5489,6378,7429,60110,733+61
Other against persons3,4643,0362,6622,5962,701+9
Against property52,19952,48247,00454,83057,859+17
Involving drugs12,89611,59211,32811,57111,458+47
Against justice7,5889,1289,58910,58611,106+124
Against good order8,3337,5346,1536,5026,264-7
Miscellaneous18,56117,15612,73811,64314,094-41
        Total112 589110 56598 216107 329114 215+12

The total number of convictions for violent offences was higher in 1992 than in any other year in the past decade. Convictions relating to serious violent offences have continued to increase. There was a considerable increase in the number of convictions for violent sex offences (rape, unlawful sexual connection, attempted sexual violation and indecent assault) over the 10 year period. Over three-quarters of the convictions for a serious violent sex offence in 1992 involved a victim aged 16 years or less.

The most serious category of assault, injuring or wounding, showed a steadily increasing trend between 1983 and 1992, with the 1992 figure (356) being 121 percent higher than the 1983 figure (161). The number of convictions for aggravated robbery in 1992 (405) was considerably higher than the figure for any of the nine previous years. Violent offences accounted for 9 percent of non-traffic offences in 1992, compared to 7 percent in 1983.

CONVICTIONS, NON-TRAFFIC OFFENCES
By type of offence

Table 9.3. CONVICTIONS FOR VIOLENT OFFENCES

Offence type19831984198519861987

*Includes convictions for manslaughter which involved the use of a motor vehicle.

Before 1986 the figures shown for the category attempted sexual violation relate to the offence of attempted rape.

Includes both robbery and assault with intent to rob.

Source: Department of Justice.

Murder2011154147
Manslaughter*3222232236
Attempted murder11351414
Kidnapping or abduction5125417382
Rape629994119139
Unlawful sexual connection.........1680
Attempted sexual violation†2430372647
Indecent assault245311317401463
Aggravated burglary.........121
Aggravated robbery194209249327263
Robbery‡138148159233155
Injuring or wounding161172176210234
Aggravated assault406537553522584
Other assault5,1475,6385,7735,7306,297
Other violence179187185253296
        Total6 6607 4027 6277 9888 758
Offence type19881989199019911992
Murder2425382845
Manslaughter*2032463745
Attempted murder10591413
Kidnapping or abduction4954458161
Rape82143117160151
Unlawful sexual connection111157202277346
Attempted sexual violation†4052345756
Indecent assault468559543737942
Aggravated burglary6849516067
Aggravated robbery291321246295405
Robbery‡162153146172145
Injuring or wounding286335320373356
Aggravated assault712777666703715
Other assault6,9026,6495,9546,2476,897
Other violence323326325360489
        Total9 5489 6378 7429 60110 733

Table 9.4. CONVICTIONS FOR OTHER OFFENCES AGAINST THE PERSON

Offence type19831984198519861987

*Sex offences reported in the violent offences category are not included in these figures.

Previously, these offences were classified as offences against good order.

Source: Department of Justice.

Incest2727384048
Other sex offences*241254306297238
Obstructing or resisting any official1,8692,1552,1992,7362,917
Threats and intimidation†275339285348367
Other59839397115
        Total2 4712 8582 9213 5183 685
Offence type19881989199019911992Overall percentage change
Incest4051172464-
Other sex offences*320239354280403+67
Obstructing or resisting any official2,6862,4272,0181,9811,899+2
Threats and intimidation†301186167183216-21
Other117133106128119+102
        Total3 4643 0362 6622 5962 701+9

In 1991 and 1992 property offences accounted for 51 percent of all convictions for non-traffic offences, a slightly higher proportion than in any of the eight previous years. Convictions for fraud have increased in the last few years, and the 1992 figures (21,742) was the highest in the 10 year period under examination. The number of convictions for burglary was lower, on average, in the second part of the decade than in the first five years.

Table 9.5. NUMBER OF CONVICTIONS FOR PROPERTY OFFENCES

Offence type19831984198519861987

*Includes fraud, false pretences, and forgery.

Source: Department of Justice.

Burglary8,7918,0397,6117,9628,061
Theft14,00414,09414,65714,77915,363
Receiving stolen goods2,3562,6492,5772,8803,116
Motor vehicle conversion4,3223,8464,1764,3523,956
Fraud*13,81815,14914,87316,16317,259
Arson142167153220173
Wilful damage3,4793,8233,4064,0653,938
Other2,6552,6602,7703,1073,187
        Total49 56750 42750 22353 52855 053
Offence type19881989199019911992Overall percentage change
Burglary7,2516,9926,6517,9247,370-16
Theft15,30314,69913,01814,24314,401+3
Receiving stolen goods2,7182,5252,9383,2373,582+52
Motor vehicle conversion3,8333,6422,9503,3602,867-34
Fraud*15,66417,38714,21317,91121,742+57
Arson182221181144161+13
Wilful damage3,9653,8743,4383,6923,605+4
Other3,2833,1423,6154,3194,131+56
        Total52 19952 48247 00454 83057 859+17

The vast majority of convictions for drug offences involve using cannabis or dealing in cannabis. Although the total number of convictions for drug offences has remained relatively constant in the last four years, the average seriousness of the convictions has continued to increase. This trend is due to a decrease in recent years in the number of convictions for using cannabis, and a concurrent increase in the number of convictions for dealing in cannabis and dealing in ‘other’ drugs.

Table 9.6. CONVICTIONS FOR DRUG OFFENCES

Offence type19831984198519861987
Source: Department of Justice.
Use cannabis4,9056,2737,2387,6917,538
Use heroin1118201334
Use LSD3213191022
Use cocaine4141075
Use other drug152148233407427
Deal in cannabis1,8582,0962,0532,0452,526
Deal in other drug105238222137197
Other7359611,1481,3911,576
        Total7 8029 76110 94311 70112 325
Offence type19881989199019911992Overall percentage change
Use cannabis7,9197,0986,5716,4916,107+25
Use heroin3338243430-
Use LSD3423563639-
Use cocaine5121034-
Use other drug442424349321253+66
Deal in cannabis2,7102,4942,7943,0773,309+78
Deal in other drug215240353352384+266
Other1,5381,2631,1711,2571,332+81
        Total12 89611 59211 32811 57111 458+47

The number of convictions for offences against the administration of justice more than doubled between 1983 and 1992. Two major contributing factors were a steady increase in the number of convictions for breach of periodic detention (an increase of 94 percent over the 10 year period), and large increases in the number of convictions for breach of bail in the few years after the introduction of this offence in August 1987.

Damage done by vandals to the historic sexton's cottage, Northern cemetery, Dunedin.

Table 9.7. CONVICTIONS FOR OFFENCES AGAINST THE ADMINISTRATION OF JUSTICE

Offence type19831984198519861987
Source: Department of Justice.
Breach of periodic detention3,0953,2873,3653,7194,055
Breach of probation/supervision660679620502426
Breach of parole......251125
Breach of bail............172
Other1,1921,2641,2801,3081,340
        Total4 9475 2305 2675 5806 118
Offence type19881989199019911992Overall percentage change
Breach of periodic detention4,2694,8954,9415,7206,015+94
Breach of probation/supervision408477513466542-18
Breach of parole150194221254342-
Breach of bail1,2411,8992,2402,4052,405-
Other1,5201,6631,6741,7411,802+51
        Total7 5889 1289 58910 58611 106+124

Between 1986 and 1990 there was a rapid decline in the number of convictions for offences against good order, and since 1990 the number has remained at a lower level than in the 1980s.

Table 9.8. CONVICTIONS FOR OFFENCES AGAINST GOOD ORDER

Offence type19831984198519861987
Source: Department of Justice.
Riot232632241
Unlawful assembly76501087658
Possessing an offensive weapon7619511,0541,3111,462
Offensive language1,4051,4561,7202,0011,668
Disorderly behaviour2,9803,0983,1233,2223,240
Other1,5111,7451,8692,0131,868
        Total6 7567 3267 9068 6478 297
Offence type19881989199019911992Overall percentage change
Riot3535863-
Unlawful assembly4032303242-
Possessing an offensive weapon1,5601,3941,1791,1781,035+36
Offensive language1,3031,028693630560-60
Disorderly behaviour2,9862,6562,0532,1972,306-23
Other2,4092,3892,1902,4592,318+53
        Total8 3337 5346 1536 5026 264-7

A large majority (82 percent) of the cases which resulted in a conviction in 1992 for a non-traffic offence involved a male offender. Forty-five percent of the cases involved European offenders, 37 percent involved Maori offenders, 6 percent involved Pacific Island offenders, 2 percent involved offenders of some other ethnicity, and for 11 percent of the cases the ethnicity of the offender was not recorded in the data. Twenty percent of the cases which resulted in a conviction in 1992 for a non-traffic offence involved a teenage offender, and another 28 percent involved an offender aged between 20 and 24 years.

Sentencing for non-traffic offences

The use of custodial, community-based, and deferred sentences increased over the 10 year period under examination, while decreasing use was made of monetary penalties. This pattern was repeated for most types of offence.

The average seriousness of cases involving non-traffic offences increased steadily between 1983 and 1992, with the result that (on average) cases in 1992 were twice as serious as cases in 1983. The increase in seriousness of cases coming before the courts impacts on the seriousness of the sentences which are imposed.

The number and proportion of cases which resulted in a custodial sentence were considerably higher in the first three years of the 1990s compared with any of the previous seven years. In 1992, 6,227 cases resulted in a custodial sentence for a non-traffic offence, the highest figure in the last decade. Cases resulting in a custodial sentence related to substantially more serious offence (on average) in 1992 than in 1983, and this has resulted in an increase in the average length of custodial sentences which were awarded. In 1992 the average custodial sentence for a non-traffic offence was 12.1 months in length, compared to 7.5 months in 1983.

Nearly half (48 percent) of the cases which resulted in a custodial sentence for some offence other than a traffic offence related to Maori offenders, 44 percent to European offenders, and 6 percent to Pacific Island peoples. Most cases which resulted in a custodial sentence in 1992 related to a person aged under 30: 19 percent related to a teenage offender, 31 percent to an offender aged between 20 and 24 years, and 21 percent to an offender aged between 25 and 29 years.

The recent increase in the number of cases which resulted in a custodial sentence, and the increase in the length of sentences which were awarded, has resulted in a marked increase in the number of inmates in New Zealand's prisons. During 1992, there was an average of 3,834 sentenced inmates in prison at any one time, an increase of 49 percent on the average muster during 1983 (2,565). The muster of inmates remanded in custody has also increased. In 1992 the average number of remand inmates in prison at any one time was 444, an increase of 57 percent over the figure for 1983 (283 remand inmates).

Over the period 1983 to 1992 there was a dramatic increase in the use of periodic detention. The number of cases which resulted in periodic detention for a non-traffic offence increased from 6,394 in 1983 to 13,501 in 1992, an increase of 111 percent. In 1983, 12 percent of cases resulted in a sentence of periodic detention, but by 1992 the proportion reached 27 percent.

Between 1983 and 1988, between 2 percent and 3 percent of the cases resulted in a sentence of community service, but the proportion in 1992 was 9 percent. While the number of non-traffic cases resulting in community service has increased considerably in the last few years, the average seriousness of the cases resulting in community service has decreased. Nearly one third (32 percent) of the community service cases in 1992 related to female offenders, a much higher proportion than for the other community-based sentences.

In 1992, 869 non-traffic cases resulted in a sentence of community care, the highest number since the sentence was introduced. This, however, represents less than 2 percent of all non-traffic cases resulting in a conviction. Over the last 10 years, probation or supervision was imposed as the most serious sentence for only 4 percent to 6 percent of cases.

The number of cases involving a non-traffic offence for which the most serious sentence imposed was a monetary penalty (usually a fine) has nearly halved since 1983. In 1992, monetary penalties comprised 38 percent of all such sentences imposed compared to 67 percent of these sentences in 1983.

The decrease in the use of monetary penalties, and the concurrent increase in the use of community-based sentences, was not entirely due to changes in the seriousness of cases coming before the courts. In recent years, periodic detention and community service sentences have been increasingly imposed instead of monetary penalties for cases involving offences of similar seriousness.

Trends in sentencing in violent offence cases showed a similar pattern to sentencing for other types of offence, with increasing use being made of custodial and community-based sentences (particularly periodic detention), and decreasing use being made of monetary penalties.

For many of the violent offences, most cases resulted in a custodial sentence throughout the 10 year period. The average length of the custodial sentences awarded for violent offences increased considerably over the 10 year period (from an average of 12.7 months in 1983 to an average of 21.8 months in 1992). The increase in the average length of custodial sentences for violent offence cases as a group has coincided with an increase in the seriousness of the violent offences which resulted in conviction.

The average length of custodial sentences imposed for rape increased strongly between 1984 and 1987 (from 49.3 months to 69.0 months), and has remained relatively stable at this higher level since that date. The average length of the custodial sentences imposed for rape in 1992 was 67.4 months (5 years 7 months). Offenders convicted of serious violent sex offences in 1992 received longer custodial sentences (on average), if the victim was aged under 12 years, compared to offenders whose victims were aged at least 12 years.

SENTENCING, NON-TRAFFIC OFFENCES
By type of offence

The Criminal Justice Act 1985 included a presumption against custodial sentences for most property offenders. For most property offences, there was a decrease in the proportion of cases which resulted in a custodial sentence after the new Act was introduced. Burglary and arson are two offences which the presumption in the Act does not apply to. The proportion of burglary cases which resulted in imprisonment was about the same in 1992 as it was in 1983, while the proportion imprisoned for arson has been consistently higher (on average), since 1990 compared to earlier years. Custodial sentences for burglary increased in length over the 10 years period, and sentences for fraud have been a little longer, on average, since 1986.

Table 9.9. SENTENCES FOR NON-TRAFFIC OFFENCES*

Sentence type19831984198519861987

*Only the most serious sentence imposed is shown for cases where more than one sentence was imposed.

Monetary penalties are: fines, compensation.

Because of incomplete data in the category ‘No Sentence or costs’ no cases from that category were included in the totals.

Source: Department of Justice.

Custodial5,5745,7945,0725,6215,671
Periodic detention6,3946,6987,1018,1349,385
Community care....261797683
Community service1,4821,4261,4871,2811,335
Probation or supervision2,6462,4932,5172,7983,112
Monetary†36,77638,56940,43039,64235,047
Deferment1,8402,0532,0722,0612,433
Other26937330114543
No sentence or costs.........2,1892,502
        Total54 98157 40659 24160 47957 709
Sentence type19881989199019911992
Custodial5,2905,6616,9265,9616,227
Periodic detention10,15811,14111,27513,06313,501
Community care584604527795869
Community service1,5702,0342,5103,7944,482
Probation or supervision3,1843,0062,3312,2892,580
Monetary†32,80127,74821,49920,06318,964
Deferment2,6702,6782,1902,7113,241
Other4740323024
No sentence or costs2,7712,5181,9302,6113,045
        Total56 30452 91246 29048 70649 888

Convictions and sentencing for traffic offences

A large proportion of all convictions each year relate to traffic offences. In 1992, 38 percent of all convictions resulted from traffic offences. The decriminalisation of some minor traffic offences means that it is not possible to compare the overall number of convictions for traffic offences in each year.

The number of convictions for serious traffic offences, most notably driving while disqualified and driving with excess alcohol, increased considerably over the 10 year period under examination, although there was a downturn in 1992. This was most likely due to fewer officers being available for traffic enforcement due to training which had to be undertaken when the Police and Ministry of Transport merged in July 1992.

Table 9.10. CONVICTIONS FOR TRAFFIC OFFENCES

Offence type19831984198519861987

*A percentage change figure is not shown for the categories ‘Other traffic’ and ‘Total’ because the decriminalisation of some offences means that it is not possible to compare figures for different years.

Includes cases where the offender refused to supply a blood specimen, or was convicted for driving under the influence of drugs.

Drive causing death151186155227186
Drive causing injury8529709891,1141,189
Driving with excess alcohol†18,07218,91818,50919,75321,591
Driving while disqualified5,6945,9425,9076,5597,176
Other traffic47,83840,82737,58738,23345,726
        Total72 60766 84363 14765 88675 868
Offence type19881989199019911992Overall percentage change*
Drive causing death181205227168145-4
Drive causing injury1,1971,3391,3901,5181,449+70
Driving with excess alcohol†22,75926,62426,00731,09525,245+40
Driving while disqualified8,60310,51312,08713,31312,238+115
Other traffic67,78273,36938,44033,79530,002...
        Total100 522112 05078 15279 88969 079...

The number of cases involving a traffic offence which resulted in imprisonment doubled over the 10 year period. In 1983 there were 1,099 cases which resulted in a custodial sentence, but by 1992 the figure had increased to 2,205 cases. In 1992, custodial sentences were longer (on average) than they had been 10 years earlier.

The number of community-based sentences which were the result of a traffic offence increased significantly over the 10 year period. The number of such cases increased from 3,558 in 1983 to 15,453 in 1992. Part of the increase in recent years may be due to an amendment to the Transport Act in 1988 which allowed a community-based sentence to be substituted for a mandatory disqualification in some cases. A sizeable proportion of all cases sentenced to a community-based sentence relate to a traffic offence. In 1992, 40 percent of all periodic detention cases, 55 percent of all community service cases, 20 percent of all supervision cases and 32 percent of all community care cases were the result of a traffic offence.

Because of the large number of cases involving driving while disqualified, a sizeable number of offenders were imprisoned as a result of this type of offence, even though the proportion of cases resulting in a custodial sentence was not large (17 percent in 1992). In 1992, 1,613 cases of this type resulted in imprisonment, 19 percent of all cases, traffic and non-traffic, which resulted in imprisonment. The proportion of cases involving driving while disqualified which resulted in periodic detention increased from 25 percent in 1983 to 48 percent in 1992.

Table 9.11. SENTENCING OF TRAFFIC OFFENCES*

Sentence type19831984198519861987

*Only the most serious sentence imposed is shown for cases where more than one sentence was imposed.

Monetary penalties are: fines, compensation and reparation.

Because of incomplete data in the category ‘No sentence or costs’ no cases from that category were included in the totals.

Custodial1,0991,2761,0671,2341,360
Periodic detention2,5252,8302,8093,6734,320
Community care....80217178
Community service658641533677721
Probation or supervision375335338366452
Monetary†43,33640,28739,06838,76645,090
Deferment4645322433
Driving disqualification312326313371417
Other00000
No Sentence or costs.........1,0681,470
        Total48 35145 74044 24045 32852 571
Sentence type19881989199019911992
Custodial1,4941,9192,0842,2672,205
Periodic detention5,4178,2658,54210,2168,995
Community care193244245324413
Community service1,0302,4503,1124,8395,414
Probation or supervision565714607601631
Monetary†58,03666,66639,50835,89730,054
Deferment7389759296
Driving disqualification5689086291,102915
Other6477000
No Sentence or costs2,4023,1471,5531,4891,599
        Total67 44081 33254 80255 33848 723

Compensation for criminal injuries

The Criminal Injuries Compensation Act 1963 introduced the first statutory scheme in the world for compensation by the state to those 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 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. See section 7.5, Accidents.

9.3 Corrections systems

New Zealand's corrections system is responsible for protecting the community from offenders through both deterrence and reformation, with increasing emphasis on rehabilitation over recent years.

The primary consideration is to ensure that those who are a serious danger to society by reason of the nature of their offences or the character of their offending are removed from the community. Apart from that, wherever possible, sanctions are imposed which 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 or her successful resettlement on release.

The Corrections Operations Group of the Department of Justice is made up of three divisions which have responsibility for delivering corrections services. These are the Community Corrections Division (which is responsible for offenders on community-based sentences), the Penal Institutes Division (which is responsible for New Zealand prisons), and the Psychological Services Division (which provides psychological services as required to prison inmates and those on community-based sentences).

Community Corrections Division

The mission of the Community Corrections division is to contribute to promoting order and safety in society, reducing re-offending and reducing imprisonment by providing information on offenders, inmates and victims and administering community-based orders within the terms of the Criminal Justice Act 1985, and the Criminal Justice Amendment Act 1993.

Provision of information. The division provides reports to judges and parole authorities on appropriate options for sentence or release of offenders. Emphasis is placed on quality so that service is timely and recommendations are targeted effectively to offence and offender circumstances, and relevant to reintegration of offenders into the community. Court servicing procedures introduced in 1991/92 have been successful in enabling offenders to be dealt with effectively and appropriately on the day of conviction. The use of community-based sentences in relation to imprisonment is encouraged.

Corrections and criminal justice

Criminal justice and corrections are two key areas of the Department of Justice. To respond better to issues and trends in these areas, the department has reorganised its former Corrections Group into two new groups—the Criminal Justice Development Group and the Corrections Operations Group.

The restructuring separates the large operational side of corrections activity (the Penal Institutions, Community Corrections and Psychological Services divisions) from the department's criminal justice development activity.

Criminal Justice Development Group

The group's responsibility is to:

  • Manage government policy for the contract management of criminal justice activities including related policy advice, development of contract arrangements, tendering, negotiation of contracts, budget analysis and development, funding distribution and financial management, supervision of contracts, monitoring compliance with the law and contracts.

  • Plan for future developments and facilities in corrective services in a cost-effective way.

  • Direct and co-ordinate policy advice and research requirements for criminal justice development.

  • Manage activities which are general to the provision of corrective services.

  • Manage corporate department land holdings and facilities used for the purpose of providing corrective services or for the purpose of production and the provision of inmate work and training.

  • Contribute to appropriate departmental outputs and develop cost-effective policies and operations aimed at reducing the unacceptable level of public funds currently expended in the response to crime.

Corrections Operations Group

With international evidence clearly showing that properly targeted and well-run programmes do reduce re-offending, it is vital the strategies adopted by the three divisions complement each other in achieving their prime aim of reducing reoffending.

Planning at a group level allows resources eg money, people, buildings to be used more efficiently by reducing duplication of work and increases responsiveness by allowing resources to be shifted more easily from one area to another to meet changing needs.

Contrary to the public perception, the vast majority of people under Department of Justice control are not in prison but are on community-based sentences administered by the Community Corrections Division. On any given day in 1993, there would have been between around 4,600 prison inmates and about 25,000 people on community-based sentences. Resources need to be allocated appropriately to deal with those numbers.

Inmate programmes which start in prison, should continue in the community after inmates are released. Those programmes include training in literacy skills, work skills and social skills, such as cooking, budgeting, anger management and self-sufficiency.

Psychological Services contributes greatly to many programmes including running Kia Marama, a unit at Rolleston Prison considered to be a world leader in treating people who sexually offend against children. However, there are no psychological treatment sentences. New Zealand is party to a United Nations convention prohibiting compulsory treatment. Offenders must agree if they are to take part in any treatment programmes.

Links between offenders and the community are vital if offenders are to successfully reestablish themselves without re-offending. Involvement of community groups in programmes for inmates, parolees and offenders on community-based sentences is strongly encouraged, including the provision of funding for community run programmes, so offenders develop and maintain positive links with the community. When offenders finish their sentences eventually have to return to live in the community. If they are left to themselves with no support and no positive contact with the community they are more likely to re-offend.

Community Corrections has the additional role of enforcing conditions of parole. Conditions are set with the aim of supporting inmates during the often difficult transition from prison to life in the community. The aim is that of the whole corrections system, to reduce the likelihood of re-offending.

Table 9.12. REPORTS ON COMMUNITY-BASED SENTENCING*

Report typeAs at 31 DecemberAs at 30 June
19891990199119921993

*1992 figures are taken from the Justice Performance Management System and so not comparable with earlier years.

No longer collected.

Now known as community programmes.

Remand pre-sentence reports24,67123,86024,73818,67316,490
Courts servicing—same day reports.........15,53315,526
Community service assessments†4,6275,2935,899......
Reparation reports3,3223,4653,9773,2243,589
Community care reports‡892784846......
Community care agreements............1,132
Parole reports3,9792,8642,4122,4232,316
Home leave reports2,4242,6343,1972,8301,959
Special leave reports3645281,781411200

Community-based sentencing. Ensuring compliance with community-based sentences contributes to the promotion of order and safety in the community. Innovative and well-constructed programmes across all sentences make use of community-based initiatives. A community liaison policy has been developed which actively promotes a closer working relationship with communities, and enhances access to community-based services/support groups that provide opportunities for social integration for offenders.

Reviews of community-based sentences are regularly undertaken to improve the quality of service delivery, the most recent being a review of community service completed in April 1993. Recommendations are implemented as is appropriate, and implementation is continually assessed.

The division is involved in setting up a home detention pilot in the Hamilton Community Corrections District. The Criminal Justice Amendment Act 1993 details the conditions that apply to release of offenders on Home Detention and monitoring responsibilities.

Supervision—an offender may be sentenced to supervision for between six months and two years, and during that period must accept supervision by a probation officer and observe conditions relating to residence, employment and association. Additional conditions may be imposed by the judge directing the sentence.

During the year ended 30 June 1993, 6,561 supervision orders were imposed and the number of people sentenced to supervision, as at 30 June 1993, was 5,138.

Community service—this sentence requires an offender to provide unpaid service to a community organisation. The minimum number of hours which can be imposed is 20 and the maximum is 200, and the sentence must be completed within a 12 month period. The consent of the offender must be obtained prior to imposition.

During 1992-93, 15,389 community service orders were imposed and the number of people subject to that sentence, as at 30 June 1993, was 7,526.

Periodic Detention—the maximum length of the sentence is 12 months and during that period offenders are required to place themselves in the custody of the warden of a periodic detention centre for specified periods, the normal period of custody being eight hours each week. While in custody, the offender carries out supervised work in the community.

During the year ended 30 June 1993, 26,674 periodic detention orders were imposed and the number of people subject to that sentence, as at 30 June 1993, was 8,093.

Community care—this sentence requires the consent of the offender, who is required to undergo a programme which may involve attendance at medical, educational or rehabilitative facilities, or placement in the care of suitable community groups or individuals. The sentence cannot exceed 12 months, but may comprise a residential component for a maximum of six months. This became the Community Programme Order on 1 September 1993.

During the year ended 30 June 1993, 1,298 orders for community care were imposed, and the number of people subject to that sentence, as at 30 June 1993, was 670.

Parole—the period of parole supervision has a dual purpose: it is for the protection of the community against further offending, and to assist the prisoner in becoming re-established in the community.

Offenders serving a sentence of corrective training or imprisonment for more than 12 months are released to the supervision of a probation officer. Offenders sentenced to more than 12 months' imprisonment and eligible for parole at one-third of their sentence can be released on home detention or to a habilitation centre, for a period of up to 12 months. Offenders serving sentences of imprisonment for life, or preventive detention, are, if parole is granted, released to the supervision of a probation officer for the life of the offender.

Combined custodial/community-based sentences—an offender may be sentenced to a term of imprisonment of 12 months or less followed by a community-based sentence or combination of community-based sentences. An offender may be sentenced to a suspended term of imprisonment of between six months and two years. This may be imposed with a community-based sentence or combination of community-based sentences.

Table 9.13. COMMUNITY-BASED SENTENCING*

SentenceAs at 31 DecemberAs at 30 June
19891990199119921993
*Taken from Wanganui Computer statistics from 1989–1992; 1992 onwards figures taken from the Justice Performance Management System and therefore not comparable with earlier years.
Periodic detention7,7767,8418,5987,7607,356
Community service3,9284,2556,2157,3207,134
Community care470402595709655
Supervisions6,0265,3574,8044,8404,567
Parole1,7111,1511,4311,6011,554

Penal Institutions Division

The mission of the Penal Institutions Division is ‘to contribute to promoting order and safety in society, reducing the likelihood of re-offending and promoting a fair, just and humane correctional system by providing secure, fair, safe and humane management, including provision of programmes and services for persons committed to penal custody’.

This means the role of prisons encompasses not only the deprivation of liberty for a period of time as imposed by the courts, but also the provision of programmes to assist inmates to address their educational, cultural and social needs, with the aim of reducing re-offending.

As a result of the He Ara Hou reforms announced in 1989, the country's 19 prisons are moving towards unit management and case management of inmates. Unit management seeks to facilitate fair and humane containment and assists in the reintegration of inmates through the development of small semi-autonomous units with constancy of occupancy and staff. Inmates live and work in small groups, with staff assigned to units on a semi-permanent basis.

Unit management is most successful when coupled with case management in which all offenders serving sentences of 12 months or more have individual case management plans developed with them for their time in prison. Case management ensures that inmates have a sense of purpose during their time in custody, goals to aim for and a plan to work to, and that culturally appropriate programmes are available for this to occur.

Penal institutions

New Zealand's penal institutions are listed in . Any person serving a sentence of up to eight days may be detained at a police station which is deemed to be prison for that period.

Table 9.14. PENAL INSTITUTIONS*

CategoryInstitutionCapacity

*At 13 August 1993.

Includes Napier Prison (minimum security).

Includes Wanganui (City) Prison (minimum security).

§Included in other categories.

ķIncluded in Arohata Women's Prison.

Maximum securityAuckland Prison (East Division)210
Medium securityAuckland Prison (West Division)319
 Christchurch Prison525
 Invercargill Prison172
 Mangaroa Prison†421
 Mount Eden Prison250
 Rimutaka Prison636
 Waikeria Prison330
 Wanganui Prison‡120
 Wellington Prison59
Minimum securityDunedin Prison190
 Manawatu Prison108
 New Plymouth Prison80
 Ohura Prison236
 Rangipo Prison Farm254
 Rolleston Prison298
 Tongariro Prison Farm 
Male remand centres (Medium security)Christchurch Prison (Addington)§
 Dunedin Prison
 Invercargill Prison
 Manawatu Prison
 Mount Eden Prison
 Napier Prison
 New Plymouth Prison
 Waikeria Prison
 Wanganui Prison
 Wellington Prison
Corrective training institutionsArohata Corrective Training Institutionķ 
 Tongariro Corrective Training Institution 
Female institutions and remand centresArohata Women's Prison111
 Christchurch Women's Prison63
 Mount Eden Prison (female division)54

Detention in penal institution

The sentences of detention which the courts may impose are set out in the Criminal Justice Act 1985 and the 1993 amendment Act, and are:

Corrective training—the term fixed by statute is three months. The offender must be between 16 and 19 years of age and he or she may be eligible for final release after serving two-thirds of the sentence. After release the offender is subject to supervision by the Community Corrections Division for six months.

Imprisonment—for a stated period or for life. On conviction for murder a mandatory sentence of life imprisonment is imposed. The death penalty for murder was abolished in 1961. Capital punishment was removed as a penalty for all crimes, most recently treason and mutiny in the armed forces in 1989.

An offender sentenced to imprisonment for a fixed term of more than one year may in most cases be eligible for release on parole after serving one-third of the sentence, or else may be released after two-thirds of the term with a minimum of six months of conditions imposed. Those sentenced to one year or less are eligible for final release of sentence after half of their term has expired and are subject to certain conditions.

Preventive detention—means detention in prison for an indefinite term to be decided by the Parole Board, but in any event not less than 10 years. This sentence may be imposed on conviction for certain sexual or violent offences. The offender must be 21 years of age or over. After serving 10 years of the sentence the offender may be released on parole for life.

The Criminal Justice Act 1985 states that violent offenders are to be imprisoned except in special circumstances, while property offenders should not be imprisoned except in special circumstances.

The increase in the number of cases given custodial sentences, together with the increase in the length of custodial sentences has resulted in a marked increase in the number of inmates in New Zealand prisons. During 1992, there was an average of 3,834 sentenced inmates in prison at any one time, an increase of 49 percent on the average muster during 1983 (2,565). The muster of inmates remanded in custody has also increased. In 1992, the average number of remand inmates in prison at any one time was 444, an increase of 57 percent over the figure for 1983 (283 remand inmates).

Census of prison inmates. The following detailed statistics are taken from the census of inmates carried out on 14 November 1991 and published in the Department of Justice's Census of Prison Inmates 1991. The information was obtained directly from the prisons or extracted from the Wanganui Computer.

As at 14 November 1991 all prisons had less than the maximum manageable number of inmates. In total, there were 3,821 sentenced inmates, comprised of 139 females and 3,682 males. In addition, there were 411 remand inmates within the prisons (nine female and 402 male) making a grand total of 4,232 prisoners. A further 19 remand prisoners were held in police cells.

Age and ethnicity—in total, 2,356 inmates (62 percent) were under the age of 30, while 40 percent of this figure (1,515 inmates) were under the age of 25. Just over 56 percent of female inmates were under 30 years of age compared with 62 percent of male inmates. Fourteen percent of inmates were 40 years or over.

Table 9.15. AGE DISTRIBUTION OF INMATES*

AgeFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

*As at 14 November 1991.

Source: Department of Justice.

14-1996.941011.241911.0
20-243224.41,06429.01,09628.9
25-293325.280822.184122.2
30-343224.455415.158615.4
35-39129.23258.93378.9
40-49118.43389.23499.2
50+21.51644.51664.4
Total1311003 6631003 794100

Of the 3,537 inmates surveyed, almost all identified only one ethnic group. Of the 121 female respondents, 39 percent specified New Zealand European, 46 percent New Zealand Maori and 5 percent Pacific Island. Forty percent of male inmates specified New Zealand European, 43 percent New Zealand Maori and 9 percent Pacific Island only.

When ethnic origin by age group was surveyed, New Zealand Maori under the age of 30 years made up 71 percent of inmates, while (in the same age group) 57 percent of inmates were identified as New Zealand European and 62 percent were of a Pacific Island ethnic group. In the 40 years and over category, 18 percent of the inmates were New Zealand European, 13 percent Pacific Island and 8 percent New Zealand Maori.

Major offence—the census shows that 51 percent of all male inmates were imprisoned for violent crimes. The next largest offending group were those inmates imprisoned for offences against property (24 percent), followed by traffic offenders (8.9 percent, not including offences where death or injury resulted) and then by drug offenders (7.3 percent).

Table 9.16. MAJOR OFFENCE OF INMATES*

Major offenceFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

*As at 14 November 1991.

Source: Department of Justice.

Violence443161,88451.41,92850.8
Other against persons32.31464.01493.9
Against property5239.1786023.591224.0
Involving drugs2116.02687.32897.6
Good order--200.5200.5
Traffic64.63278.93338.8
Against justice10.81163.21173.1
Miscellaneous43.1421.1461.2
        Total1311003 6631003 794100

PRISONERS
Numbers in prison per 10 000 mean population

The most common violent offences for male inmates given custodial sentences were aggravated robbery (18 percent of violent offenders and 9 percent of all inmates) and injuring and wounding (13 percent of violent offenders and 7 percent of all inmates).

The most significant major offence groups represented for females were property offences (40 percent) and violent offences (34 percent). A smaller proportion of female prisoners were incarcerated for drug offences (16 percent) and six females were in custody for traffic offences. The most common violent offences for which female offenders were given custodial sentences were murder (25 percent of all violent offenders and 8 percent of all inmates) and injuring and wounding (26 percent of violent offenders and 8 percent of all inmates).

Thirty-nine inmates were in prison for a driving offence involving death or injury. Eight percent of all inmates were imprisoned for driving while disqualified and 0.4 percent were in prison for drink-driving.

Sentence length—the figures show that 34 percent of female inmates and 26 percent of male inmates were serving a total custodial sentence of less than one year in duration. A total of 11 females and 183 males were serving sentences of life imprisonment. Forty males were serving preventive detention sentences. Excluding life and preventive detention sentences, four females (3 percent of all female inmates) and 666 males (18 percent of all male inmates) were sentenced to a custodial sentence of at least five years in duration.

Learning sewing skills in a prison work programme.

Table 9.17. TOTAL SENTENCE LENGTH FOR INMATES*

Sentence lengthFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

*As at 14 November 1991.

Source: Department of Justice

Under 3 months43.1431.2471.2
3 months and under 6 months118.42727.42837.5
6 months and under 1 year3022.962917.265917.4
1 and under 2 years3123.773920.277020.3
2 and under 3 years2317.644712.247012.4
3 and under 5 years1713.064417.666117.4
5 and under 7 years32.337910.338210.1
7 and under 10 years10.82115.82125.6
10 years and over--762.1762.0
Life118.41835.01945.1
Preventive detention--401.1401.1
        Total1311003 6631003 794100

Fifty-three percent of female inmates and 38 percent of male inmates has at least one year in custody remaining to be served. Most inmates are released on parole or remission before the expiry of their sentence.

Offending history—thirty-nine percent of female inmates had a previous term in custody, compared to 61 percent of male inmates who had served a previous prison term. Sixty-seven percent of female inmates and 82 percent of male inmates had at least six convictions recorded prior to the census date, while 44 percent of female and 49 percent of male inmates had more than 20 convictions.

Table 9.18. TOTAL TIME SPENT IN PRISON ON PREVIOUS OCCASIONS*

Total time spent in prisonFemaleMale
NumberPercentNumberPercent

*As at 14 November 1991.

Source: Department of Justice.

No previous incarcerations8061.11,44539.5
Under 6 months2116.071719.6
6 months and under 1 year107.63559.7
1 and under 2 years107.642611.6
2 and under 3 years32.32386.5
3 and under 5 years53.82918.0
5 and under 7 years21.51233.4
7 and under 10 years00.0541.5
10 years and over00.0100.3
        Total1311003 659100

Traffic offenders—at the time of the census six female and 327 male inmates were imprisoned for traffic offences (other than those which involved death or injury). Almost all traffic offenders had a total of at least six convictions, 78 percent had more than 20 convictions and 33 percent had more than 50 convictions.

Classification status—fifty-four percent of the male inmates at the time of the census had a minimum security classification status, 39 percent were classified as suitable for medium security and only 4 percent had a maximum security classification. The majority of female inmates had a minimum security classification status.

An important objective is to ensure that inmates are held in humane conditions and the minimum degree of security consistent with public safety. Wherever possible inmates are given some sort of constructive employment, which can be either maintenance of the prison, industrial production, or work on farms, forestry or horticulture.

There is a full-time education co-ordinator in each penal institution who is responsible for contracting educational services from the community. Courses may be at any level from literacy to university study. The study gives inmates the chance to better their social and employment skills and aids re-integration into the community.

Increasingly prisons also offer specialised programmes such as the Kia Marama programme for people who sexually offend against children, anger management and drug and alcohol programmes which inmates are encouraged to participate in to help resolve problems and attitudes. In addition prisons offer cultural programmes and recreational activities, including hobby and sports.

Earnings. Modest earnings are paid to inmates who work or are involved in re-integrative programmes. Payments vary depending on the nature of the work or activity and the standard of performance; the maximum is 92 cents a day. Money earned is banked in a personal trust account and may be spent on personal items through a weekly shopping system.

Inmates who have been in prison for more than 31 days are eligible on release for the steps to freedom grant which is administered by the New Zealand Income Support Service. This grant provides a maximum of $350 and is abated by any prison earnings the inmate may have.

Punishments. An inmate charged with one of the less serious offences against discipline appears either before the general manager or a visiting justice who may impose a penalty. Serious cases are referred to an outside court.

Release to work. A small number of selected inmates may be released during the day for outside employment. They are required to contribute to the cost of their board and part of their earnings may also be withheld to fund debts and family expenses.

Parole system. The introduction of longer sentences designed to protect society from the hardened criminal has created the need for a procedure to enable persons serving one of these sentences to be released as soon as they show that they are fit to be returned to society.

Two types of board consider parole cases. Persons sentenced to life terms, terms of seven years or more or preventive detention have their cases considered by a national parole board. Those sentenced to between one and seven years appear before one of 17 district prisons boards (see also Community Corrections).

Psychological Services Division. The Psychological Services Division is a regionally-based service with offices in eight centres. It has a staff of 49 psychologists and also employs on a fee for service basis psychologists in private practice, with about 30 being employed at any one time. Psychological services are provided to both the Penal Institutions Division and the Community Corrections Division, to community agencies dealing with offenders, and to courts, the district prisons boards and the Parole Board.

The main work of the division is the psychological assessment and treatment of convicted offenders who are either serving a prison sentence or a community-based sentence administered by the Community Corrections Division. It also provides psychological assessments for courts at the pre-sentence stage, and for the district prisons boards and the Parole Board to assist in parole decisions.

Other work it undertakes is the provision of advice to the Corrections Group, the Department of Justice and the Minister of Justice on policy, practices and procedures, and to staff of the penal institutions and community corrections divisions and community agencies on ways to assist individual offenders. It participates in programme development, implementation and evaluation and provides training for prison and probation officers, staff of community agencies and postgraduate psychology students.

The division carries out several research projects each year to give a sound base for the advice it gives; to improve the assessment and treatment methods it uses; and to evaluate the effectiveness of both its own interventions and programmes offered by the penal institutions and community corrections divisions and community agencies working with offenders.

9.4 Police

The national administrative and operational control of the New Zealand Police is vested in a commissioner who is responsible to the Government through the Minister of Police.

For operational purposes, New Zealand is divided into six police regions, each controlled by an assistant commissioner.

Regional 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 Act and the Summary Offences Act, but also various other statutes such as the Arms Act, Sale of Liquor Act, Gaming and Lotteries Act, Misuse of Drugs Act, 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.

POLICE STRENGTH
Population per police officer

Police policy has moved towards a more community-oriented approach, with officers of all types encouraged to see themselves as responsible for well-defined communities. Police systems and establishments are also reflecting this approach.

The effective strength of the police at 1 July 1993 was 6,717 (including 1,222 former Traffic Safety Branch) sworn personnel, including 696 women and 1,648 non-sworn full-time equivalent positions.

Police operations

Armed offenders squads. These groups of specially trained and equipped officers are mobilised to deal with offenders with weapons. During the year ended 30 June 1992, armed offenders squads attended 589 incidents, compared with 433 in 1992.

A total of 219 members throughout the country now perform armed offenders squad duties on a part-time basis.

Special Tactics Group. This group is made up of selected members of armed offenders squads, is provided with specialised training to enable it to deal with acts of terrorism. The squad exercises with highly trained police negotiators and other specialist police support staff.

Refresher courses are held frequently and training has also been carried out with Ministry of Defence personnel. Close liaison has been maintained with ministry staff to ensure effective co-ordination if needed.

Search and rescue. There were 813 police-controlled search and rescue operations during the year ended 30 June 1993. These operations also involved many thousands of voluntary hours by, among others, members of the Federated Mountain Clubs and the New Zealand Coast Guard Federation.

Law-related education programme. There are 78 police staff appointed to positions in a law-related education programme. Their task is to encourage teachers and police to cooperatively plan law-related themes suitable for use in classrooms, such as the child abuse programme, “Keeping Ourselves Safe”, and the drug education programme ‘DARE’.

Police dogs. A comprehensive network of police dogs and handlers is maintained throughout New Zealand. During the year ended 30 June 1993 police dogs were deployed on 39,389 incidents. There were 76 general and dual purpose dogs (dual purpose dogs are trained to locate narcotics), 8 narcotic detector teams, and 3 explosive detector teams. In addition there were 23 trainee dog handlers, giving a total strength of 110 teams.

Community constables. Community constables have a wide brief within the areas that they work. They assess law-related problems and work to resolve them by enlisting community support— acting as a catalyst for community solutions to law-related problems. They may work from police stations, their own offices in shopping centres or other locations, or from a kiosk, such as in the Cathedral Square in Christchurch. At 30 June 1993 there were 251 community constables spread over all six police regions.

Police helmet leaflets, which were posted out to encourage people to participate in Neighbours Week.

Youth Aid Section. Under the Children, Young Persons and Their Families Act, 1989, the New Zealand Police have a statutory obligation to divert young offenders from the criminal justice system through its youth aid services and frontline staff. Youth aid staff throughout the country as at 30 June 1993 totalled 112 full time equivalent positions and 33 part time youth aid staff. There were 36,278 offences committed by children and young persons and 56 Family Group Conference referrals per officer.

Community Support Groups. There were 25,757 community support groups throughout New Zealand as at 30 June 1993, and 62 victim support groups.

National Drug Intelligence Bureau. For the year ending 30 June 1993 there were a total of 22,242 drug offences reported, of which 91.3 percent were cleared. In the year to June 1993, search without warrant powers were exercised in 2,980 cases, resulting in 2,470 seizures.

Table 9.19. DRUG SEIZURES BY SUBSTANCE

Substance1991-921992-93
Source: New Zealand Police.
Heroin (grams)3082,191
Heroin (millilitres)11278
Cocaine (grams)2,1496,280
Opium (grams)2127
Morphine (grams)2624
Morphine (millilitres)7072,449
Analgesics (tabs)40,8419,403
LSD (tabs)27,29923,456
Psilocybine (grams)2,4333,162
Psilocybine (mushrooms)35010,079
Amphetamine (grams)320163
Methamphetamine (grams)552837
Cannabis plant (number)300,041306,573
Cannabis leaf (grams)432,136578,888
Cannabis oil (grams)3,8112,426
Cannabis resin (grams)1,5047,372

Reported offences. A summary of offences reported to the police for the year ended 30 June 1993 can be found at the beginning of section 9.2, Criminal justice.

Police Complaints Authority

The authority is a one-member body, an experienced barrister or solicitor being appointed for a period of between two and five years. (There is also provision for the appointment of a deputy if the need arises.) It is an independent authority, funded by the Department of Justice. Its function is to receive complaints from the public against individual members of the police force or the procedures or policy of the police and, where reasonable grounds are established, to either investigate individual complaints itself, or oversee investigations by the police. It also reviews internal police investigations and has jurisdiction to investigate where any person suffers death or serious injuries as a result of police operations.

Where the authority investigates and upholds a complaint itself, it may recommend disciplinary or other action to the Commissioner of Police. It also has recourse to the Attorney-General if its recommendations are not acted upon. The authority may also make recommendations regarding the outcome of internal police investigations.

The police fingerprint computer in use.

In the year to 30 June 1993, 1,347 complaints were recorded, 1,240 of which were fully investigated; 192 were upheld.

Contributors

  • 9.1 Department of Justice.

  • 9.2 New Zealand Police; Department of Justice.

  • 9.3 Department of Justice.

  • 9.4 New Zealand Police.

Special articles

Department of Justice.

Further information

Conviction and Sentencing of Offenders in New Zealand: 1983 to 1992. Department of Justice.

Census of Prison Inmates 1991. Department of Justice.

Changes to the Seriousness of Offending and in the Pattern of Sentencing: 1979 to 1988. Department of Justice.

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

Report of the Law Commission (Parl paper E 31).

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).

Tables of New Zealand Acts and Ordinances and Statutory Regulations in Force. Government Printer (annual).

The Law Commission publishes in series both their preliminary papers and reports.

Chapter 10. Communications

Shooting TV's ‘Heroes’ on location.

The communications infrastructure in New Zealand has undergone dramatic changes in recent years. Over the past decade competition has been progressively introduced into all aspects of the market. Today it is one of the most rapidly growing sectors of the economy.

The Communications Division of the Ministry of Commerce provides advice to the Minister of Communications on broadcasting policy issues, manages the radio spectrum, and carries out regulatory functions relating to communications. It administers the Telecommunications Act 1987, Postal Services Act 1987, Radiocommunications Act 1989 and Broadcasting Act 1989.

10.1 Mass media

Broadcasting policy

Historically, most broadcasting services in New Zealand were provided by government. In 1989, the Government established a broadcasting policy regime which was intended to improve economic efficiency within the broadcasting industry, while still ensuring the continuation of the Government's social objectives. It was the Government's intention to increase economic efficiency by introducing a more competitive and flexible market for broadcasting services. On 1 July 1989, the Broadcasting Act 1989 came into force. The central objectives of the Act are:

  • Increase of economic efficiency and consumer choice by permitting more competition and flexibility in the broadcasting industry.

  • Promotion of New Zealand identity and culture.

  • Provision of broadcasting services for varied interests in the community.

  • Maintenance of broadcasting standards.

  • Separation of social, policy advice and regulatory functions from commercial activities.

Special restrictions no longer apply to the introduction of new services, such as cable television or direct satellite broadcasting. The Act abolished the Broadcasting Tribunal, the body previously responsible for granting of radio warrants and determining complaints in relation to broadcasting standards. It also removed all restrictions on advertising, except on Sunday morning television and on certain public holidays. Sponsorship and subscriptions are permitted for almost all services. In 1991, the Act was amended to remove all restrictions on foreign ownership of broadcasting services.

The Broadcasting Act 1989 is also the principal vehicle for meeting government's social policy objectives in broadcasting. The Broadcasting Commission and the Broadcasting Standards Authority were established as independent bodies to ensure these objectives are met. The establishment of these bodies also provides for the separation of regulatory, social and policy advice functions.

The Broadcasting Corporation of New Zealand Restructuring Act 1988 created two state-owned enterprises. Radio New Zealand and Television New Zealand Limited (TVNZ), each with its own management board. TVNZ was required to place its transmission assets in a subsidiary company, Broadcast Communications Limited. Aotearoa Maori Radio, which had been managed by a subcommittee of the Broadcasting Commission, was established as a charitable trust to be managed on an independent basis. The New Zealand Symphony Orchestra and the New Zealand Listener have both become separate companies.

Broadcasting Commission (NZ On Air). The commission's role is to promote cultural and social objectives in broadcasting and such other activities seen as unlikely to receive sufficient commercial provision. Revenue for funding is based on the collection of the broadcasting fee, set at $110 per annum per household with a television set.

The four main functions of NZ On Air are to:

  • Reflect and develop New Zealand identity and culture by promoting programmes about New Zealand and New Zealand interests and promoting Maori language and culture.

  • Maintain and, where it is considered appropriate, extend the coverage of television and radio broadcasting to New Zealand communities that would otherwise not receive a commercially viable signal.

  • Ensure that a range of broadcasts is available to provide for the interests of women, children, persons with disabilities and minorities in the community, including ethnic minorities.

  • Encourage the establishment and operation of archives of programmes that are likely to be of historical interest in New Zealand.

In television, NZ On Air funds New Zealand drama, documentaries and special interest programmes for broadcast and also funds non-commercial television coverage. Funding is also available for New Zealand music videos.

When allocating funding for programme production, NZ On Air is required to take into account such factors as availability of other sources of funding, likely audience size, and the likelihood of a programme being broadcast.

In radio, NZ On Air funds the two national and non-commercial public networks (National Radio and Concert FM) as well as Maori radio and Access radio. Funding is also given for New Zealand music programmes on commercial and student radio and for non-commercial radio coverage.

In 1991-92 NZ On Air's income from the broadcasting fee (after collection costs) was allocated as follows: television programmes (including Maori programmes and New Zealand music videos) $50.7 million; radio (National Radio and Concert FM, Access radio and New Zealand music programmes on radio) $23.9 million; Maori radio $7.7 million; non-commercial radio and television transmission $1.4 million; archiving $1.1 million.

The six members of NZ On Air are appointed by the Governor-General on the recommendation of the Minister of Broadcasting.

Broadcasting standards. The Broadcasting Standards Authority is an independent body established to enforce and oversee the standards and objectives laid down in the Broadcasting Act 1989. The four members of the authority are appointed by the Minister of Broadcasting. The authority's functions in relation to broadcasting standards are to:

  • Encourage broadcasters to develop and observe codes on the protection of children; the portrayal of violence; fair and accurate programming and procedures for correcting factual errors and redressing unfairness; restrictions on the promotion of liquor; safeguards in the area of human rights; and the presentation of appropriate warnings.

  • Develop and issue codes itself, if codes developed by the industry are seen as inadequate.

  • Commission research and publish findings.

In relation to complaints, the authority:

  • Hears and determines complaints against broadcasters when the complainant is dissatisfied with the action taken by broadcasters, or when the complaint relates to issues of individual privacy.

  • Publishes its findings.

  • Imposes penalties (the most severe being a 24-hour restriction on broadcasting).

There are appeal rights to the High Court against the authority's decisions.

Between July 1992 and June 1993 the authority issued 144 decisions on formal complaints. Over one third of the complaints alleged a breach of good taste and decency. The second largest area of complaint alleged a breach of standards requiring truth, accuracy fairness and a balance of views. Of the 144 decisions issued, 132 related to television and 12 to radio. Thirty-six of the complaints involved advertising, 75 percent of these were about liquor advertising.

Since 1 February 1992 the broadcast rules on liquor advertising have allowed brand advertising on radio and television. The advertising is subject to strict programme and advertising controls were reviewed after six months and small changes made.

The authority is also responsible for the allocation of free election broadcasting time and for this particular function, its membership is increased by two, with a representative of the Prime Minister and one selected by the Leader of the Opposition to represent all opposition parties.

In 1992 the Broadcasting Standards Authority reviewed the codes on the portrayal of violence. A new code was developed in conjunction with television broadcasters and became effective on 1 January 1993.

Maori broadcasting. Under the Radiocommunications Act 1989, radio and television frequencies were reserved throughout New Zealand for the promotion of Maori language and culture.

Prior to the broadcasting reforms, only one iwi-based radio station (Wellington's Te Upoko o Te lka) broadcast in New Zealand. There are now 24 iwi-based radio stations, 23 of which broadcast on frequencies specifically reserved by government for the promotion of Maori language and culture. In addition to the iwi stations, Aotearoa Maori Radio broadcasts on reserved AM frequencies to Auckland, Wellington and Christchurch. NZ On Air provides funding for operating and capital costs of iwi radio stations, funding for Aotearoa Maori Radio, the Mana News Service and consultancy costs relating to Maori radio.

As yet, no Maori television stations have been established.

Broadcasting Amendment Act 1993. The Broadcasting Amendment Act 1993 established a new Maori broadcasting funding agency, Te Reo Whakapuaki Irirangi. Te Reo Whakapuaki Irirangi will be allocated funding of $3 million in 1993/94, $5 million in 1994/95 and $5 million in 1995/96. These funds will be in addition to the funding for Maori broadcasting provided by NZ On Air. From 1 January 1995, Te Reo Whakapuaki Iriangi will also receive a proportion of the Public Broadcasting Fee, and will assume responsibility for the allocation of all funds for Maori broadcasting.

Television

Television New Zealand. Television New Zealand operates two channels, Television One and Channel 2, and has a number of subsidiaries and other broadcasting interests.

TVNZ aims to provide New Zealanders with quality communications products and services. It also endeavours to present programmes which reflect and foster New Zealand's identity and culture. A state-owned enterprise, it is charged with being a commercially successful electronic telecommunications business. It is headed by a group chief executive reporting to a board of directors appointed by government.

TVNZ broadcasts its services to approximately 1,126,000 households, and has almost 100 percent coverage of the New Zealand population. Both Television One and Channel 2 broadcast seven days a week, morning, afternoon and evening.

Television One aims to provide quality New Zealand and British drama, news, sport and information. It presents many of New Zealand's highest rating local programmes, including Crimewatch and Country Calendar.

Channel 2 features comedy, drama, family entertainment, children's programmes and the latest music specials.

Over 13,000 hours of television are broadcast each year on the two channels. Imported programming is mainly sourced from the United Kingdom, America and Australia. TVNZ accesses satellite-delivered programming from the BBC, ITV, CBS, ABC (US), ABC (Aust.), Channel 9 and other Australian networks. Near 30 percent of programmes are locally produced.

TVNZ comprises many divisions, including programming, international sales, telecommunications and Teletext.

TVNZ's main revenue source is advertising. Its advertising revenue was $246m in 1992, compared with $283m in 1991. For the year ended 31 December 1992, TVNZ reported a net profit after tax of $23m, compared with $28m in 1991.

Since the broadcasting reforms TVNZ has adopted a strategy of diversifying into new broadcast technology and telecommunications. It has invested in Sky TV and Clear Communications and its own subsidiary, Broadcast Communications Limited.

TV3 Network Services Limited. New Zealand's private national television network was launched on 25 November 1989. It currently reaches around 94 percent of the population. The station's headquarters are in Auckland with studio facilities in Wellington and Christchurch.

Dunedin presenters of the Starship Telethon.

In December 1991, after 19 months in receivership, shareholding in TV3 was bought by Can West Global Communications Corporation, a Canadian television company, which took a 20 percent stake in the network. Westpac Banking Corporation also raised its shareholding to 48 percent. The remaining 32 percent is held by TV3 Network Holdings.

The network's programming targets the 25-54 age group with a complete range of programming—news, current affairs, sport, sitcoms, movies and drama series, along with children's programming. Approximately 35 percent of the 130 hours of broadcasting each week is locally sourced, with other programmes coming primarily from Australia, the United States and Britain.

Sky Television. New Zealand's first entry into pay television began broadcasting on 18 May 1990. Sky provides movies, sport and news on three scrambled UHF channels. To receive the broadcast the subscriber must have a decoder unit and, where necessary, a dedicated UHF aerial.

Subscribers are Sky's main source of revenue, keeping commercial time down to two or three minutes per hour compared to eight to 12 minutes on the commercial stations. Sky currently has approximately 116,000 subscribers and expects to have over 130,000 by March 1994.

Sky offers news and sports broadcasts for 24 hours a day and movies for 14 hours a day. The news is provided by the BBC and CNN networks and, generally, broadcast live. The sports network endeavours to broadcast major events live or as close to live as possible and provides coverage of a diverse range of sports. Sky Movies presented by HBO shows a mixture of classics and new releases which it rotates over different times and days.

Regional television services. Canterbury Television (CTV) is one of only two regional channels broadcasting in New Zealand at this time. CTV commenced broadcasting in June 1991 using UHF television licences purchased at tender in February 1990. It has its own production house, CTV Limited, which started operations in October 1989. The channel has a strong emphasis on local content, with approximately 70 percent of its programmes being locally produced.

CRY TV is a Christchurch music station which broadcasts music videos on a UHF frequency from 7 pm to midnight, seven days a week.

Action TV. This channel, owned by the Totalisator Agency Board (TAB), commenced broadcasting in November 1992. It broadcasts live racing, race results and programmes about racing to Auckland, Waikato, the Bay of Plenty and Wellington, using UHF frequencies. In Christchurch, CTV broadcasts race meetings at present under contract to the TAB.

Local television services. Geyserland TV (Rotorua) and ITV (Queenstown) provide tourist information services to hotels, motels and similar facilities in their respective areas of coverage.

Cable television. The only cable operator in New Zealand as yet is Kiwi Cable, which operates a cable television system, Kapiti Television, in Paraparaumu. Its majority shareholder is a United States company, Todd Communications. As at September 1993, Kiwi Cable had approximately 500 subscribers. Subscribers receive nine channels, including a community channel, TV3, Action TV, overseas and local sports and news coverage, music channels and a religious channel. Subscribers also have access to a video-on-demand service which enables them to receive the movie of their choice on the channel, provided the particular movie and channel space are available.

Telecom, in partnership with Sky Television, is trialling cable in two Auckland suburbs. Six hundred households receive fibre optic cable access to television and telephone services. The project aims to investigate New Zealand viewers' responses to increased choice in television. Viewers in the scheme receive Television One, TV2, TV3, the three Sky channels and six additional channels.

Local content. The hours of local content on television have more than doubled since the deregulation of the broadcasting industry.

Table 10.1. HOURS OF LOCAL CONTENT ON TELEVISION

YearTV OneTV2TV3Total
Source: Ministry of Commerce.
19881,42468702,111
19891,7908901322,812
19902,4747721,0034,249
19911,8111,0161,2124,039
19922,5261,2271,9625,715

Radio

Since the broadcasting reforms in 1988-89, the number of registered radio frequencies has increased substantially. As at 1 July 1988, RNZ operated 29 commercial AM stations, three commercial FM stations, National Radio and Concert FM, 20 non-commercial AM stations, and the short wave external service (Radio New Zealand International). Private broadcasters operated 11 AM and eight FM commercial stations. In addition, two non-commercial AM stations operated privately. In total, 81 AM and 76 FM frequencies were in use throughout New Zealand.

As at 30 June 1993,150 AM and 288 FM frequencies were registered with the Registrar of Radio Frequencies. It is difficult to ascertain how many of the registered frequencies are in use but most licence holders commence broadcasting shortly after registration.

Radio New Zealand Limited. Radio New Zealand Limited (RNZ Ltd) was constituted as a separate state-owned enterprise at the end of 1988 when the Broadcasting Corporation of New Zealand, of which Radio New Zealand had been a service, was dissolved. The BCNZ's radio assets were to pass through the Crown straight to the new SOE, but Maori interests claimed that the new SOE structure was inadequate to carry out Treaty of Waitangi language and culture obligations.

While the issue was argued in the courts, the assets were legally frozen in Crown ownership and RNZ Ltd made use of them under licence. The company was therefore not the legal owner, and because of that and of Maori sensitivities relating to the situation, it could not manipulate major assets in a normal business manner to meet its plans and needs until early August of 1992, when the way was finally cleared for the assets to be vested in the Radio New Zealand SOE.

In addition to the performance required from all SOEs, RNZ Ltd must provide a range of programmes consistent with government social and cultural broadcasting objectives. The company's programme standards and complaint procedures are as set for all broadcasters by the Broadcasting Act 1989.

In addition to actual broadcasting, the company's activities include engineering, sales, and local and national news services. Its broadcasting falls into two main categories, Commercial or Community Radio and New Zealand Public Radio (non-commercial).

Radio New Zealand's sound archives, Christchurch.

In response to allegations that the present structure provides an opportunity for public funds to be diverted to the support of the commercial side of RNZ's business, there has been political pressure to separate the commercial and the public broadcasting functions more clearly. A first step is being taken in this process by the formation of a wholly owned but separately managed subsidiary company, New Zealand Public Radio Limited, which will own and control the assets used for public broadcasting and carry on the non-commercial activities. The separation of the two operations may be taken further in the future. In the meantime, New Zealand Public Radio Limited has three divisions: National Radio; Concert FM; and RNZ News and Current Affairs. Each is under its own separate general manager in the separate company structure.

Commercial—thirty-three commercial or community stations, each with a local management grouped under several regional management structures, and ultimately responsible to either a central metropolitan or provincial management, broadcast on a largely local basis. There is, however, a commercial network linking most of the stations for national and international news and some New Zealand-wide programmes (eg national talkback or all-night programmes). Some stations aim more at young adult/contemporary music audiences; others are more oriented towards general family listening. Many services have been either converted to FM or broadcast on both FM and AM (the latter may serve different audiences at some time of day). The total of 33 does not include regional ‘repeaters’ of main stations or take account of more than the ‘parent’ when both AM and FM transmissions are provided simultaneously. The powerful AM transmitters formerly used for Concert Programme transmission have been grouped to form the AM Network, broadcasting the proceedings of Parliament and extended sports coverage. The commercial services are funded entirely by advertising revenue, by sponsorship, or by commercial contract.

New Zealand Public Radio—the non-commercial services are funded by a share of the Public Broadcasting Fee collected and allocated by the Broadcasting Commission, NZ On Air. The networked National Radio and Concert FM services are the principle ones. Public Radio also covers Access Radio broadcasting and the Sound Archive in Christchurch where many thousands of historical tapes, discs and commercial gramophone records are preserved. Te Reo O Aotearoa, the RNZ Maori and Pacific Island language unit, produces a wide range of Maori, Pacific Island and English programmes broadcast through National Radio. The RNZ International shortwave service is managed by Public Radio, but funded by the Ministry of Foreign Affairs and Trade.

New Zealand Radio Sales—with offices in the three main cities, NZ Radio Sales is concerned with the selling and placement of commercial station advertising on a New Zealand-wide basis for both RNZ Ltd and also other radio broadcasters. Stations look after their own area advertising on a local basis. NZRS recently absorbed its private radio counterpart, PRISM.

Engineering and Operations—primarily concerned with RNZ's technical and property requirements, maintenance, and development and construction, Engineering and Operations also provide specialised, external consultancy and contract services to the industry.

RNZ News—a central operation which gathers national news (with specialist and general reporters attached to every RNZ station, central office and Parliament), and international news from correspondents, and three international 24-hour wire services. RNZ News prepares and produces news bulletins and programmes for all RNZ services, and also provides news and information services under contract to a number of external broadcasting and non-broadcasting clients.

For the year ended 30 June 1991, a total consolidated income of $94,550,000 was made up of sales (net) $64,078,000; Public Broadcasting Fee $21,932,000; and other various income $8,540,000. Total consolidated expenditure was $98,557,000 with extraordinary items totalling a further $6,744,000, leaving a net loss of $10,751,000. Total assets amounted to $55,044,000.

Private radio broadcasting. Forty-six AM and 84 FM stations were known to be in use in 1992, compared with 44 AM and 11 FM stations in 1988. New radio formats have emerged throughout the country, including ‘classic hits’, easy listening, country music and talkback stations. The Independent Broadcasting Association based in Auckland represents the private companies which operate independent radio stations. There are 42 members with stations in all metropolitan and provincial markets. Stations include both locally operated and network operations. News and sport are provided through Independent Radio News (IRN), based in Auckland.

Non-commercial broadcasting. The Crown has reserved AM radio frequencies and UHF television frequencies throughout the country for use by non-commercial broadcasters. AM frequencies have been reserved in all communities with populations of 10,000 or more. Broadcasters may have access to reserved spectrum for non-profit community purposes. In each case, a licence is allocated upon application to an appropriate community organisation which is responsible for ensuring that all interested groups have access to air time on the frequency. Use of reserved frequencies is restricted to non-profit activities.

Access radio stations. Access stations provide air time on a non-profit basis to a range of minority groups in the community. At present there are eight access radio stations operating in New Zealand. All have been assisted in providing access to minority community groups by funding from New Zealand On Air. New Zealand On Air funding for access radio in 1992/93 was $1.8 million.

New Zealand Vintage Radio Society exhibition and sale.

Radiocommunications

The Radiocommunications Act 1989 provided a revised framework for spectrum allocation in order to cope with an increased demand for frequencies resulting from broadcasting and telecommunications reforms. It established a market-based system for spectrum management, with up to 20 year tradeable spectrum property rights. Property rights were initially awarded to the highest tenderer. Such rights not only encourage investment in spectrum use, but also provide for situations where a number of uses are possible.

Broadcasters operating under warrants issued by the Broadcasting Tribunal on 1 July 1989, were entitled to a licence under the Radiocommunications Act. These licences were issued for a 20 year period in return for a one-off lump sum payment or an annual payment for each of the 20 years.

Allocation by tender. Most of the significant remaining UHF television, FM sound radio and AM sound radio frequencies have now been tendered. Tendering is conducted on a first price, sealed bid basis. The registration of licences following tendering establishes the tradeable right which is recorded in a publicly accessible register. An annual administration fee is payable to the Ministry of Commerce by all registered licence holders.

Additional licences are created, where technically possible, and tendered when there is demand for them. Amendments to licences, such as changes of transmission site, increases in power, etc, are accommodated where possible. Where an amendment is likely to result in an estimated increase in the value of the licence in excess of $5,000 or other parties have expressed interest in the frequency, the licence is required to be re-tendered. The existing licence-holder has preferred bidder status in that they are given the opportunity to match the top bid if they choose to do so. Pending tender, licences are often made available for interim use for a rental that is related to the value of the licence.

Newspapers and magazines

Taking into account the size of its population, New Zealand has a high number of daily newspapers. There are 28 daily newspapers published in New Zealand, of these eight are morning newspapers and 20 are published in the evening.

Of the eight morning dailies, the one with the largest circulation is The New Zealand Herald, published in Auckland, which has an audited net circulation of 244,535 copies daily. The other dailies have circulations ranging from 3,000 to about 105,000.

There is a concentration of ownership of the majority of the country's daily papers in two major companies. The previously dominant pattern of single family, or partnership, style of newspaper ownership now survives only in some centres. The two major publishing groups are Independent Newspapers Limited and Wilson and Horton Limited. Between them, these two groups now publish daily papers which account for almost 90 percent of New Zealand's aggregate daily newspaper circulation of about 1 million copies daily.

There are three Sunday newspapers, the Sunday Star, Sunday News, and Dominion Sunday Times, all published by Independent Newspapers Limited.

Another feature of newspaper publishing over the past 15 years, has been the steady growth of suburban newspapers, most of them delivered free to all households in their recognised circulation area, although 14 have paid circulations. The New Zealand Community Newspapers Association has 112 members which between them publish over 1.8 million copies per issue. The great majority are tabloid, but four are broadsheet. Most are weekly, but about 20 are bi-weekly or tri-weekly. Seven are fortnightly. Many of these community newspapers are owned by the two big newspaper publishing groups or by publishers of other newspapers outside the groups. Some are owned by individuals or by small companies.

There are over 2,300 magazines available in New Zealand on a regular basis. Of this number, 58 are listed with the New Zealand Audit Bureau of Circulations as being either published in New Zealand or New Zealand editions. Most of these local magazines (34) are published monthly, 11 are published on an alternate month basis and six are weeklies.

Table 10.2. MAGAZINE CIRCULATION, CONSUMER TITLES

PublicationCirculation*Published

*These figures cover January-June 1993.

Source: Audit Bureau of Circulations.

Direction533,341Bi-monthly
TV Guide232,686Weekly
Woman's Day NZ204,166Weekly
Readers Digest (NZ Edition)154,065Monthly
NZ Woman's Weekly150,633Weekly
Australian Woman's Weekly122,632Monthly
Listener, TV & Radio Times115,470Weekly
Grapevine114,451Monthly
New Idea NZ103,549Weekly
Little Treasures63,298Bi-monthly
Next43,186Monthly
Superannuitants' Lifestyle Quarterly42,121Quarterly
Time New Zealand Edition41,370Weekly
North & South39,904Monthly
More39,761Monthly
Metro29,432Monthly
Fashion Quarterly28,813Quarterly
NZ Home & Building27,489Bi-monthly
Your Home24,190Quarterly
RTR Countdown15,077Monthly

Advertising

The advertising industry in New Zealand, as in other western countries, is well developed. Advertising in the media is used by individuals, companies, government and many other organisations to sell goods and services and to inform the public.

Advertising industry. Approximately 900 people are employed in advertising agencies, and 2,000 in advertising-related services. Advertising revenue also contributes to the employment of another 9,000 people in the publishing, radio and television industries.

At the end of March 1993 there were approximately 70 agencies, most of which (57) were New Zealand-owned and the remainder (29) affiliated to multi-nationals by total or partial ownership (these tend to be the larger agencies). The number of agencies with overseas interests has grown from 12 in 1983 to 28 in 1992.

Total advertising expenditure (media and non-media) in New Zealand for the year ended March 1992 was $1,670 million. Of this, $1,169 million was spent on media advertising— television, radio, newspapers, magazines, direct mail, cinema and outdoor. The remaining $501 million came from production and non-media advertising, such as promotions, and expenditure on advertising production. Fifty-two percent of expenditure on media advertising ($617 million) was made through advertising agencies, with agencies placing 96 percent of advertising on television, 80 percent in magazines, 20 percent on radio, 15 percent in newspapers, and 50 percent of advertising through other media.

Table 10.3. MEDIA ADVERTISING, 1993

MediaExpenditureShare
Source: Advertising Agencies' Association.
 $(million)percentage
Newspapers36129.9
Television42335.0
Radio13911.5
Magazines776.4
Direct Mail816.7
Telemarketing90.7
Outdoor60.5
Cinemas30.2
Community Newspapers1109.1

Table 10.4. ADVERTISING EXPENDITURE BY SELECTED INDUSTRIES, 1992

Industry groupExpenditureIndustry groupExpenditure
Source: Advertising Agencies' Association.
 $(million) $(million)
Agricultural/industrial/office78Investment/finance/banking74
Automotive54Leisure/travel/entertainment148
Beverages54Miscellaneous68
Clothing19Pharmaceuticals30
Foodstuffs142Retail195
Household100Toiletries/cosmetics52

Industry organisations and self-regulation. The Advertising Agencies' Association of New Zealand is an incorporated body representing the interests of its members on issues affecting the advertising industry and agencies. There are 39 member agencies which collectively represent about 90 percent of agency billings in New Zealand.

The industry has two self-regulatory bodies, the Advertising Standards Authority, and the Advertising Standards Complaints Board. The first body's function is to promulgate codes of practice and develop policies on advertising standards. The Advertising Standards Complaints Board's function is to adjudicate in cases where codes have been breached and to advise the committee on codes and public issues. The council also provides a means for members of the public to complain about particular instances of advertising.

10.2 Telecommunications

Prior to 1987, Telecom had a monopoly on the provision of general telecommunication services. The Telecommunications Act 1987 ended this monopoly, requiring Telecom to allow integration of externally-produced equipment and services to its telecommunications network. Telecommunication services are now subject only to the constraints of general law, some rules relating to international services and the need to obtain radio frequency licences, where required.

The deregulation of the telecommunications customer premises market was phased in over several years. Residential wiring and telex equipment was deregulated on 1 October 1987. Deregulation was extended to telephones on 1 May 1988, and PABX equipment on 1 April 1989.

Competition issues. Competition in the industry is developing from several sources. CLEAR Communications Limited has entered the market, offering domestic and international toll and leased line services. Synet Communications 1990 Limited offers toll bypass services, Global Telecommunications Services has an interconnection agreement to provide international services and BellSouth Limited offers a GSM cellular service. Over 190 companies and individuals hold ‘Telepermits’, allowing them to supply equipment which can be attached to the Telecom network. There are numerous suppliers of services such as packet switching, payphones and private networks.

In recent years, new services and technologies have been introduced into the telecommunications market. These include ISDN services for business users, videoconferencing, centrex and frame relay, all of which are now widely available. Some broadband services are also being trialled.

Competition in long-distance and international services has increased substantially since 1989. Local loop services have not shown the same development, however, and Telecom effectively remains the only provider. Negotiations between CLEAR and Telecom for an interconnection agreement which would enable CLEAR to provide local loop services have not yet been resolved. This matter was the subject of legal action in 1992. A Court of Appeal decision is awaited.

Since 1987, the Government has introduced the following measures to support the new telecommunications regime:

  • In 1991, the Minister of Communications issued a policy statement reaffirming the Government's commitment too a competitive telecommunications environment. This statement noted the Government's expectation that telecommunications operators would act in good faith and provide interconnection on fair and reasonable terms, and reserved the option of further regulation, should this prove necessary.

  • The New Zealand Telecommunications Numbering Advisory Group was established in 1992 to address issues relating to the allocation and management of telecommunications numbering.

  • In 1992, provision was made for joint briefing sessions to be provided to government at the request of telecommunications operators.

Telecom Corporation of New Zealand Limited

Telecom Corporation of New Zealand Limited is the leading supplier of telecommunications services in New Zealand and operates one of the most technologically advanced telecommunications networks in the world. The advanced digital network is the result of a $3.3 billion modernisation and investment programme. This programme was begun in 1987 to prepare Telecom to operate competitively in one of the most open and deregulated environments in the world. Today, 95 percent of the total number of lines are connected to digital exchanges.

Telecom has been privately owned since September 1990 when it was purchased from the Government for $4.25 billion. The purchaser was a consortium of two leading United States telecommunications suppliers, Bell Atlantic and Ameritech, and two New Zealand companies, Fay Richwhite and Freightways. In July 1991, 10 months after privatisation, Bell Atlantic and Ameritech sold about 31 percent of shares in Telecom to the public. The $1.45 billion sale was the major contributor to the total equity of $2.16 billion raised on the New Zealand share market in 1991.

Telecom provides local, national and international telephone services and a wide range of other telecommunication services, including cellular telecommunication, data communications, leased circuits, directories, paging and mobile radio. Telecom is also the major distributor of telecommunication equipment in New Zealand. Collectively these activities account for approximately 25 percent of revenue, but are an area of rapid growth.

Since 1988 Telecom has been progressively introducing volume-based charging, to replace distance-based. The number of charging steps has been reduced from 10 to eight and special rates have been introduced on a number of major routes; the average national call price dropped 58 percent from November 1988 to March 1993. This is part of the planned implementation of a tariff rebalancing programme which will reduce cross-subsidies among services and establish prices more accurately reflecting the real cost of services.

Within the Asia-Pacific region, Telecom is well placed to participate in telecommunications investment opportunities. The corporation recently bid for major contracts in Australia and Indonesia, and Pacific Star (a Telecom/Bell Atlantic joint venture) has been appointed to manage the Queensland State Government telecommunications network.

Specially designed phone for arthritis sufferers.

CLEAR Communications Limited

In response to the deregulation of the New Zealand telecommunications industry, CLEAR Communications Limited was launched in November 1990. The company is owned by two New Zealand shareholders (the Todd Corporation and Television New Zealand) with two major international telecommunications companies (MCI Communications from the United States and Bell Canada Enterprises). The total shareholder capital investment by all partners is in excess of $100 million.

CLEAR was established to provide a full range of competitive toll, private line and specialist local network services. In an agreement reached with the Telecom Corporation of New Zealand Limited, CLEAR connects its inter-city network to the Telecom local networks for the operation of these services. Private line operations commenced in December 1990, and toll services in May 1991. CLEAR had over 30,000 toll customers within the first six months of operation. By the end of August 1992 it had gained over 12 percent of the national toll market.

Subscribers can make both national and international toll calls through existing telephone equipment by dialling CLEAR's prefix, followed by the desired area code and local number. No new numbers, special equipment or connections are required. CLEAR toll services are available to over 80 percent of New Zealand, with further expansion planned.

CLEAR Communications has one of the world's most modern telecommunications networks, consisting of fibre optic cables, digital microwave radio facilities and a satellite earth station.

Among the other services offered by CLEAR Communications are:

  • CLEARLINE, which provides customers with higher toll volumes or specialised communication needs with a range of digital leased line (point to point) services;

  • CLEAR Gateway, which allows large or multi-location businesses to operate as if all their phones are in the same building; and

  • a direct access option which links a customer's premises to the CLEAR network is available for those customers with more specialised communications needs.

Telephone services. New Zealand continues to have one of the highest telephone densities in the world, with 432 main lines per 1,000 of population. The telephone network has over 800 exchanges serving 1.5 million subscribers. The network is one of the most advanced in the world, with 93 percent of customers served by digital exchanges. Customers connected to a digital exchange have an additional range of telephone services available.

Telecommunications services by cable, satellite, and radio are available to almost all countries of the world. Competition is emerging in the provision of international services with Telecom, CLEAR Communications and AUSSAT Pty Limited (the Australian satellite operator) offering services overseas.

TELEPHONES
Number of subscribers

Cellular and other mobile services, including paging and mobile radio, continued to develop rapidly in 1992. Telecom began operating a cellular network based on the AMPS-B frequency in 1987. The network, which provides extensive land and marine coverage, is currently available to 95 percent of the New Zealand population, with more than 2 percent of the population using cellular phones. Telecom began introducing a digital cellular network in 1992, after winning the AMPS-A cellular frequency in open tender in 1990. BellSouth continues its preparations to offer a cellular telephone service in New Zealand, using the TACS-A band of radio spectrum. Competition was further increased in 1992 when the fourth cellular frequency, TACS-B, became re-available for sale.

Digitalisation and the rapid installation of optical fibre cable throughout New Zealand continue to increase the network's capacity to carry voice, data and image transmissions at extremely high volumes and speed. An integrated services digital network (ISDN) which enables simultaneous voice, data, and video transmission was commissioned in 1992. As a result, a growing number of customers are using video conferencing services to link up with people in other places in New Zealand and overseas. A new trans-Tasman optical fibre cable system (TASMAN 2) was installed in 1992.

A new satellite telecommunications service between New Zealand and Antarctica's Scott Base was introduced in January 1992. Through the data service, Scott Base staff are able to connect to the DSIR computer network in New Zealand and through gateways from there to international science and computing networks. Scientists based in New Zealand and other countries are able to log into their Antarctic experiments, helping them to manage them from many thousands of kilometres away.

Radio-based services. In July 1990 the Government tendered 20 year rights to six blocks of radio spectrum, in the 800-900 MHz range, suitable for three cellular telephone services. These blocks were won by BellSouth, Telecom Corporation, and Telecom Mobile Radio Limited, although the latter two purchases are currently the subject of legal proceedings. In June 1990 the Government also tendered rights to 12 blocks of radio spectrum in the 2.3-2.396 GHz range, suitable for point to point fixed link, pay television, or video conferencing services. Of the 12 blocks tendered, Telecom Corporation of New Zealand Limited won eight, MultiBand Television Limited won two and Broadcast Communications Limited and Sky Network Television Limited won a single block each.

Table 10.5. TELEPHONE SERVICES

ItemAs at 31 March
1990199119921993

*This information is not available after 1991 due to commercial sensitivity.

Source: Telecom Corporation of New Zealand.

Main line/telephones    
  Subscribers (000)1,4441,4811,5041,516
  Applicants awaiting service1111
        Total demand1 4451 4821 5051 517
Main line telephones (per 1,000 population)485495438433
  Exchanges    
  Automatic (number)836836748685
  Manual (number)5000
  Percentage of subscribers served by automatic exchanges100.0100.0100.0100.0
Toll service*    
  Inland toll calls (million)275.5314.4--
  Percentage increase in toll traffic22.714.1--
  Percentages of subscribers with direct dial facilities99.9100.0100.0100.0
  Outward international toll calls (000)25,79029,110--

Telegrams. The inland and international telegram service is operated by The Telegram Company, a division of Netway Communications Limited. The company is operated by Synet Communication Limited (a direct subsidiary of NZ Post), following the sale of The Telegram Company by Netway Communications in December 1991.

Telex service. The telex service is a subscriber-to-subscriber teleprinter communication service, operated through a worldwide network of automatic telex exchanges. Both an automatic inland and international service operate in New Zealand. Demand for telex service is decreasing, with telex traffic falling from more than 10 million minutes in 1989 to 3.9 million minutes in 1990. The service is also available to ships at sea.

Data communication services. These include leased and switched data services, as well as a number of services such as EDI and Electronic Mail.

Digital Data Service (DDS) provides a wide range of dedicated, point-to-point and multipoint managed data services. Available speeds range from 2.4Kbps to 1.92Mbps. DDS is provided over a specialised technology platform known as the Digital Services Transmission Network (DSTN).

Switched Data Services include Pacnet, a public packet switched data network providing dial-up and dedicated X25 service for both national and international use. A number of Managed Data Networks are provided to large corporate customers by Telecom including GCS Net to the Government Computing Service. These services are also provided via Net-X, the packet switch network of Telecom's fully-owned subsidiary, Netway Communications Limited.

Just some of the old telephone directories collected for recycling.

Datel provides for data communication over the switched telephone network. Subscribers' privately-owned terminals are connected to telephone lines through Telecom modems which convert the data signals to a form suitable for transmission over telephone circuits.

Datex is a text and data communication service whereby subscribers can use their word processors or computers to communicate with other datex subscribers, or to telex subscribers.

Telecom Transaction Service (TTS) is typically used for EFTPOS applications within the banking industry. Increasingly, TTS is being used for both credit and debit transactions and its use is being extended into the oil industry, and the hospitality industry where restaurants and hotels find it a convenient service to offer their customers.

The Alarm Transport Service (ATS) is a packet switch based service for transferring fire and security alarm information from customer sites nation-wide to centrally located monitoring and dispatch centres.

Videotex is a two-way, interactive, electronic information service which links subscribers' video screens to data bases through the telephone network. Subscribers may buy information and establish their own data bases for use by other subscribers.

A computer-based electronic messaging service called STARNET (store and retrieve network) allows businesses to communicate their products and services via personal computer linked to the STARNET system.

In addition to circuits leased for electronic data, circuits are leased for private voice, teleprinter and facsimile networks, music, and fire alarm systems.

Radio services to shipping. Radio stations for communication with ships at sea are located at Auckland, Wellington, Awarua and the Chatham Islands. They provide a safety of life at sea 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 on the New Zealand coast.

International links. Satellite services are provided to New Zealand by INTELSAT, INMARSAT and AUSSAT. These facilities are used by the telecommunications service providers for telephone connections and also by New Zealand television companies for both ‘live’ and delayed television relays. Major earth stations are located at Warkworth, near Auckland, and at Wellington and Christchurch. AUSSAT also operates an earth station in central Auckland.

Submarine cables are also used to connect New Zealand with the rest of the world. These are the TASMAN 1 and TASMAN 2 cables to Australia and the ANZCAN cable which connects to North America. By 1994, New Zealand will be fully connected to an international network of fibre optic cables ringing the Pacific Rim. These cables consist of the TASMAN 2 cable commissioned in 1992, the Pac Rim East cable to Hawaii which will be commissioned in 1993 and the Pac Rim West cable to Guam to be commissioned in 1994.

10.3 Postal services

Prior to 1987, New Zealand Post had a monopoly on basic letter services. The Postal Services Act 1987, as amended by the Postal Services Act 1990, provided for a gradual reduction in this monopoly. As at December 1991, New Zealand Post had a monopoly only on letters weighing less than 200 grams and costing less than 80 cents to post.

In September 1989, the Government and New Zealand Post concluded a ‘deed of understanding’ which clearly defined the service obligations of New Zealand Post in return for statutory protection on the basic letter post. New Zealand Post agreed to continue to provide a universal service at uniform nation-wide prices. The deed also specifies frequency of delivery, price controls for the standard letter, and the extent of the nation-wide network of postal outlets. Under the Postal Services Act 1987, as amended by the Postal Services Amendment Act 1990, New Zealand Post's monopoly on basic letter services was gradually reduced. Regulatory protection covers letters under 200 grams where a charge of less than $0.80 is made. Only one product, the standard 45 cent stamp, is now covered by this protection.

The deed was originally established for a period of three years. Following a review of the letter post market, which determined whether increased competition should be allowed, the decision was made to continue New Zealand Post's monopoly on the carriage of basic letters, and the life of the deed was extended to 31 March 1994. In making this decision, the Government noted that, while there were potential benefits in permitting open competition in letter services, there was public concern that the universal price-equalised service guaranteed by the monopoly might be at risk in a competitive environment. In the absence of clear agreement on measures to maintain service levels nation-wide (and particularly to remote rural residents), the Government chose to retain New Zealand Post's statutory protection.

The right of New Zealand Post to charge for rural delivery services was challenged during 1992, when Federated Farmers took action in the High Court against New Zealand Post, following an increase in the rural delivery fee, from $40 to $80 in April 1992. Federated Farmers' case submitted that the stamp price should cover the full cost of delivery, that New Zealand Post did not have a legal basis for charging a rural delivery fee and that the company had breached contractual obligations to deliver mail as addressed by the sender. The High Court found against Federated Farmers.

NZ Post archivist with some of the priceless stamps being donated to the Museum of New Zealand Te Papa Tongarewa.

New Zealand Post

New Zealand Post Limited's principal business is the provision of postal services within New Zealand and to and from other countries.

New Zealand Post took over a network of approximately 1,200 offices formerly the postal and agency business of the New Zealand Post Office. The composition of the network of post offices has since changed so that now more than 80 percent are operated on agency basis or on commission. The New Zealand Post network now consists of:

  • Post Shops (formerly post offices).

  • Postal delivery centres providing sales of stamps, delivery of mail across the counter, and holding mail for pick-up by New Zealand Post.

  • Stamp retailers such as small shops.

  • Stamp booklet outlets such as supermarkets and garages.

Table 10.6. TOTAL NEW ZEALAND POST OUTLETS

As at 31 March 1993Number
Source: New Zealand Post.
Post shops252
Post delivery centres633
Stamp retailers823
Stamp booklet outlets2,867
        Total4 575

Besides the provision of letter and parcel delivery and retail transaction services, the company also issues postage stamps, operates a philatelic business and has strategic investments in mail related businesses. New Zealand Post has assets of $400 million, and employs approximately 8,800 staff in its 252 Post Shops, mail processing, transportation and delivery network.

Inland postal services. Any postal item, from a letter to a parcel up to 20 kilograms, can be sent by ‘Fast Post’ or by Post. Fast Post offers next day delivery between major towns and cities, with Post providing next day delivery across town, and two to three working days across New Zealand. Other services include EasiPost, a prepaid priority service for documents up to 1 kg; assured services such as Registration and Insurance; and, the CourierPost service which from 1991 became available to the public through Post Shops.

Within its two-stream postal system, New Zealand Post gives discounts for bulk mailing, and handles unaddressed mail (circulars) and direct mail.

Table 10.7. POSTAL DELIVERIES AND VOLUME OF ARTICLES POSTED

 Year ended 31 March
 19921993
Source: New Zealand Post.
Deliveries to—number
    Households1,025,6951,036,184
Businesses—  
By delivery50,43150,205
By business and individual box and bag148,859149,611

Postal volumes. For the year ended 31 March 1993, New Zealand Post carried 667,752,000 Post medium letters (1992: 633,316,000) and 16,427,000 Fast Post medium letters (1992: 15,848,000).

Overseas mail services. Surface and airmail services are operated from New Zealand. Courier Post International offers a guaranteed, top priority delivery of letters and documents and parcels to 100 countries.

Other special services include international reply coupons, printpost direct bags, literature for the blind, and advice of delivery.

Stamp issues. New Zealand Post produced 15 stamp issues during the 1993 calendar year. A variety of philatelic products are sold by mail order through the Philatelic Bureau at Wanganui, at philatelic sales centres and through Post Shops.

Table 10.8. NEW STAMPS RELEASED DURING 1992

DateIssueDenominations
Source: New Zealand Post.
20 JanuaryRoyal Doulton45c, 50c, 80c, $1.00, $1.50, $1.80
 Royal Doulton Miniature Sheet$1.80
17 February1930s45c, 50c, 80c, $1.00, $1.50, $1.80
31 MarchWomen's Vote45c, 80c, $1.00, $1.50
 Fast Post Stamp Booklet10 x 80c Stamps
5 MayScenic—Thermal Wonders45c, 50c, 80c, $1.00, $1.50, $1.80
9 JuneConservation—WWF4 x 45c
 Conservation (Weta) Stamp Booklet10 x 45c
 Blue Round Kiwi$1.00
21 JulyHealth—Children's Pets50c, 85c
 Miniature Sheet$2.70
1 SeptemberChristmas4 x 45c, $ 1.00, $1.50
 Fish Stamp Booklet10 x 45c
1 OctoberDinosaurs45c, 80c, $ 1.00, $1.20, $1.50
 Dinosaur Miniature Sheet10 x 45c
3 November1940s45c, 50c, 80c, $1.00, $1.50, $1.80
 Christmas Stamp Booklet10 x 45c

Post Shops. About 220 Post Shops have opened self-service displays in their customer service areas, selling a range of post related items, stationery, packaging products, and greetings cards, including New Zealand Post's own ‘handi’ range of packaging products.

Ancillary services. Through its nation-wide network of Post Shops, New Zealand Post services a variety of government and business organisations. This includes the collection of the public broadcasting fees, banking transactions for PostBank, receipt of telephone account payments, maintenance of the electoral rolls, motor registration, collection of road-user charges, Housing New Zealand payments, and local authority and public utility account payments.

NZ Post's 1993 conservation stamp series.

Recent performance. Six years after corporatisation New Zealand Post has turned the loss-making Postal Division of the former New Zealand Post Office into a profitable business, paying more than more than $240 million in tax and dividends to its shareholder—the Government. A turnover of $588 million was recorded for the 1992-93 financial year.

The company's $200 million modernisation programme is now completed.

Contributors

  • 10.1 Ministry of Commerce; NZ On Air; Broadcasting Standards Authority; Independent Broadcasting Association; Television New Zealand; TV3 Network Services Limited; Sky Television; Radio New Zealand Limited; New Zealand Press Council; New Zealand Audit Bureau of Circulations; Advertising Agencies Association.

  • 10.2 Ministry of Commerce; Telecom Corporation of New Zealand Limited; CLEAR Communications Limited.

  • 10.3 Ministry of Commerce; New Zealand Post Limited.

Special articles

Television New Zealand; Ministry of Commerce.

Further information

Mass media

Annual Report of the Ministry of Commerce (Parl paper G46).

Annual Report of Television New Zealand Limited.

Annual Report of TV3 Network Services.

Annual Report of Radio New Zealand Limited.

Annual Report of New Zealand on Air.

Summary of Circulations, New Zealand Audit Bureau of Circulations (bi-annual).

Telecommunications

Annual Report of the Telecom Corporation of New Zealand Limited.

Report of the Residual Management Unit of the Department of Trade and Industry (Parl paper G14).

Report of the Ministry of Commerce (Parl paper G46).

Annual Report of CLEAR Communications Limited.

Postal services

Annual Report of New Zealand Post Limited.

Report of the Ministry of Commerce (Parl paper G46).

Chapter 11. Arts

Outdoor performance of ‘Romeo and Juliet’, Christchurch.

11.1 Fostering the arts

In New Zealand, as in most other countries, both the Government and local authorities recognise the importance of the arts and the nation's cultural heritage in the life of the community, and provide support accordingly. These central agencies charged with providing assistance to the arts in New Zealand are: the Queen Elizabeth II Arts Council of New Zealand (incorporating Te Waka Toi, the Council for Maori and South Pacific Arts and three regional councils); the Museum of New Zealand Te Papa Tongarewa; the New Zealand Film Commission; the New Zealand Historic Places Trust; National Archives; and the New Zealand Film Archive. The New Zealand Authors' Fund, now administered by the Queen Elizabeth II Arts Council, compensates authors for royalties lost through having their books lent by libraries.

Profits from state-run lotteries are used extensively to assist art galleries, museums, and cultural organisations and projects. New Zealand Lottery Grants Board funding is administered by the Department of Internal Affairs, which also administers the Cultural Conservation Advisory Council, established to support the conservation of movable cultural property; the Dictionary of New Zealand Biography; National Archives; and the Historical Branch.

Since the early 1970s the Ministry of Foreign Affairs and Trade has worked with various bodies in the arts and cultural heritage sector to foster New Zealand's cultural image abroad. The ministry's contacts overseas have been helpful in setting up various exhibitions and cultural exchanges, but increasingly the bulk of the financial support will have to come from other sources.

The Ministry of Cultural Affairs was established on 1 January 1991. The ministry took over the policy functions previously performed by the Arts and Cultural Heritage Division of the Department of Internal Affairs as well as assuming some new functions.

The ministry provides advice to government on cultural matters. It assists government in its provision and management of cultural resources for the benefit of all New Zealanders. The ministry's main functions are providing:

  • Policy advice: reviewing cultural sector legislation, advising on cultural policy issues, developing policy proposals and initiating projects, investigations and studies which have significance to the cultural sector.

  • Services to the Minister of Cultural Affairs: preparation of replies to ministerial correspondence and general services which assist the minister in meeting his portfolio obligations.

  • Administration of payments to cultural sector organisations; management and disbursement of payments on behalf of the Crown to the five cultural sector organisations and the monitoring of the Government's investment in these agencies.

The cultural sector organisations for which the ministry administers the Government's funding contributions are:

  • New Zealand Film Commission.

  • Museum of New Zealand Te Papa Tongarewa.

  • Queen Elizabeth II Arts Council of New Zealand.

  • New Zealand Symphony Orchestra.

  • New Zealand Film Archive.

The Minister of Cultural Affairs is responsible for the Film Commission, Museum, Arts Council and Symphony Orchestra. These are Crown entities and are owned by the Government. The Film Archive is a charitable trust.

Table 11.1. GRANTS TO THE ARTS AND CULTURAL HERITAGE SECTOR, 1993-94

GroupGovernment assistanceLottery grant
Source: Ministry of Cultural Affairs; Lottery Grants Board; Historic Places Trust; Department of Internal Affairs.
 $(000)
Museum of New Zealand42,7951,250
Queen Elizabeth II Arts Council3,80717,250
New Zealand Film Commission1,0007,475
New Zealand Film Archive86575
New Zealand Historic Places Trust1,8181,750
Cultural Conservation Advisory Council--
Antiquities Act costs21-
Lottery community facilities-11,600
National Archives8,996-
Dictionary of New Zealand Biography859-
New Zealand Symphony Orchestra7,100-
Historical Branch (Internal Affairs)962-
Ministry of Cultural Affairs1,497-

Queen Elizabeth II Arts Council of New Zealand

The Arts Council is an independent statutory authority whose mission is “to secure the arts as a resource for all New Zealanders.”

The Arts Council has six goals. To:

  • Stimulate and support creative expression in all communities.

  • Invest in the development of Maori art.

  • Invest in the development of new work by New Zealand artists.

  • Invest in the development of arts industries.

  • Invest in the professional development of people working in the arts.

  • Ensure the provision of the information, skills, services and resources required within the Arts Council to achieve these goals.

The Queen Elizabeth II Arts Council of New Zealand operates under the Queen Elizabeth II Arts Council of New Zealand 1974 Act and the Public Finance Act 1989, but operates independently of Government. It is funded by the New Zealand Lottery Grants Board and the New Zealand Government. The legislation governing the Arts Council is currently under review.

The activities of the council consist of investment and advocacy. As an investor in the arts, the Arts Council makes grants to arts organisations and artists, under policies in line with council goals. As an advocate for the arts, it provides information, advisory and research services to the arts sector and works with sectors such as local government, education, health, justice and social welfare are also fostered, in order to encourage growth and development in arts activity.

Arts Council investment is governed by policy which ensures that funds are used for specified outcomes. These include access to the arts, audience development, community development, the development and support of infrastructure, innovation, international cultural exchange, marketing, professional development and the fostering of excellence and enterprise in the arts sector. Investment decisions concerning individual artists are made by peer panels of artists and art workers and, in all policy, the council endeavours to uphold the principles of the Treaty of Waitangi.

The council comprises five constituent councils. The Queen Elizabeth II Arts Council, the largest of the five councils, is the national funding organisation for the arts and an umbrella organisation for Te Waka Toi (the Council for Maori and South Pacific Arts) and the Northern, Central and Southern Regional Arts Councils, which in turn support the volunteer community arts councils.

Accountability is ensured through the work of councillors who set policy for the Queen Elizabeth II Arts Council, Te Waka Toi and the regional arts councils. Councillors are appointed by the Minister of Cultural Affairs, except in the case of each regional arts council where four of the nine members are elected annually by community arts councils.

Arts Council programmes are administered as follows:

Projects in the major art forms of craft, dance, film, literature, music, theatre and visual arts are administered by the Arts Development Unit of the Queen Elizabeth II Arts Council. In each art form, granting schemes support a range of initiatives including new innovative work, residencies, tours, exhibitions, seminars, master classes, international activity, market development, professional development, international cultural exchange, industry and infrastructure development and commissions.

A range of professional arts companies in the fields of theatre, dance, music and the visual arts are supported through the Arts Investment Programme. In addition to base grants to support artistic and administrative activities, these companies are eligible to apply for contestable funds to develop artistic strengths, employ appropriately trained people in key areas and foster their professional development, develop education programmes, develop planning expertise, strengthen management structures and establish a secure financial position.

Other schemes managed by the Arts Development Unit include publications schemes, the Waewae Tapu (Distinguished Visitors) Programme, a block grant scheme for publishers, the New Zealand Book Awards, and the Authors' Fund which recompenses writers for library borrowing and support for selected organisations which provide marketing and other services for particular art forms.

Maori arts and Pacific Island arts projects are administered by Te Waka Toi, the Council for Maori and South Pacific Arts. Under the umbrella of Te Waka Toi, a Maori Art Committee and South Pacific Art Committee administer activity in each of their fields, with a high degree of autonomy.

Both the Maori Art Committee and the South Pacific Art Committee administer a range of programmes which support initiatives such as wanaaga, festivals, performances, marae art, seminars, workshops, hui, recording projects, tours, waka projects, publications, research, arts in education, international activity and cultural exchange. These apply to a wide range of traditional and contemporary art forms. The Te Waka Toi Award is given annually to a recipient who has made an outstanding contribution to Maori arts.

Projects with a community or regional focus are administered by the Northern, Central and Southern Regional Arts Councils and the volunteer community arts councils. The regional arts councils aim to increase access to, and participation in, the arts, especially through the provision of resources which lead to the growth of community-based arts activity. They operate in four main ways, as:

  • Investors in arts and cultural programmes, either in partnership or alone.

  • Service organisations providing information, advisory, management and other services to the arts and cultural sector.

  • Change agents assuming a leadership role in promoting events or programmes which result in productive change which benefits the arts.

  • Advocacy units providing a regional voice on arts and cultural issues.

Support is given to such activities as regional touring programmes, the employment of community arts workers and short-term project workers and the activities of over 100 community arts councils, which are voluntary and autonomous. Grants to arts groups are made with community interests as the main priority. An important priority of the regional arts councils is local authority liaison, particularly with the aim of encouraging local authorities to adopt arts and cultural policies to guide their considerable investment and involvement in arts and arts-related activity.

Advocacy, research, recreational arts, arts in education and information programmes are administered by the Research and Information Unit of the Queen Elizabeth II Arts Council. The Information Centre services the information needs of groups involved in arts advocacy, including the council itself and community arts councils. Arts in education activities include advocacy work with the education sector, an Artists in Education Touring scheme, residencies and joint school-community initiatives. Arts Access activities include advocacy work with the health and justice sectors and support is given to recreational arts organisations previously under the wing of the Hillary Commission.

New Zealand Symphony Orchestra

The New Zealand Symphony Orchestra is widely known for the artistic excellence of its public concerts, its programmes on radio and television, and its performances for major national opera and ballet productions. Distinguished international guest conductors and celebrity artists, along with resident soloists and New Zealand choirs, appear regularly with the orchestra.

The only full-time professional orchestra in the country, its playing strength of approximately 90 enables it to undertake the complete symphonic repertoire. It makes a major contribution to the New Zealand International Festival of the Arts and its travel programme is one of the most extensive in the world, involving some 40,000 kilometres of internal travel annually. As well as presenting concerts nationwide, the orchestra has toured overseas, the most recent visit being to the 1992 Seville Expo for performances with Dame Kiri Te Kanawa as part of the New Zealand Day celebrations. During 1993 a new series of late morning concerts, Tea and Symphony, was introduced to bring orchestral music to a wider audience.

The New Zealand Symphony Orchestra has made many commercial recordings, some of which have charted in the United States, and one which was nominated for international awards. The orchestra also commissions and performs works by New Zealand composers. As the national orchestra, it receives funding support from the Ministry of Cultural Affairs.

New Zealand Film Commission

The mission of the Film Commission (Te Tumu Whakaata Taonga) is to sustain and promote New Zealand films as a cultural and economic resource, to a diversity of audiences in New Zealand and overseas.

The functions, powers, and duties of the commission are defined in the New Zealand Film Commission Act 1978. The Film Commission receives funding through Government Vote: Cultural Affairs and as a distribution agency for the Lottery Grants Board. Each year, the Film Commission offers financial investment to a considerable number of film projects, both for development and for production. In the 15 years since the commission was established more than 50 features and more than 110 shorts have been made with commission funding.

Copyright

Copyright comes into existence automatically upon the completion of any original literary, dramatic, musical, or artistic work, including photographs. No registration is necessary, 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 of 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 of literary, dramatic, musical, and artistic works and of 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. New Zealand is a party to both these conventions. New Zealand has also acceded to the Convention for the Protection of Producers of Phonograms Against Unauthorised Duplication of their Phonograms. In New Zealand certain disputes relating to performing rights of copyright works, sound recordings or films may be determined by the Copyright Tribunal.

Scene from ‘The Piano’, directed by New Zealander Jane Compion.

Censorship

New Zealand is undergoing a far reaching change in its censorship policy and practice. The Films Videos and Publications Classification Act 1993 has replaced the Films Act 1983, the Video Recordings Act 1987 and the Indecent Publications Act 1963 with a single censorship regime. The Act was passed after considerable public interest and is based on many of the recommendations of the Committee of Inquiry into Pornography, 1989.

The Act establishes the Office of Film and Literature Classification which will have responsibility for classification of all printed and visual material. The office is a stand-alone Crown entity and not part of a public service department. The Chief Censor and Deputy Chief Censor are appointed on the joint recommendation of the Ministers of Justice, Women's Affairs and Internal Affairs.

Film and video are now required to be submitted to the Industry Labelling Body, appointed by the Minister of Internal Affairs, which rates and labels material at the middle and lower end of the censorship spectrum, based on foreign classifications (mostly from Australia). Broadly speaking, a classification is an enforceable restriction (i.e. R18) and a rating is an unenforceable recommendation (i.e. PG). The labelling body may only issue ratings or refer to the Classification Office for a classification decision.

Other material, such as printed works, sound recordings, computer bulletin boards, video games, etc, may be classified by the office either when submitted by a third party (eg customs or a public complaint) or on the request of the Chief Censor. Distributors are not required to submit this type of material for classification.

A classification need not be a traditional age restriction but can include restriction by place (eg that some material may be sold only on specific premises) or other restriction (eg allowing some material to be sold only in a sealed wrapper). The Chief Censor will have flexibility in determining types of restriction, when appropriate, if the decision has been made not to ban the material.

The official word for banned material is a classification called ‘objectionable’. The depiction of certain acts, such as paedophilia, torture and coprophilia, are deemed by the new Act to be automatically objectionable. For the first time, the possession of objectionable material has been made an offence, partly as a reaction to concerns over the spread of child pornography.

The Board of Review, comprising members of the public appointed by the Minister of Internal Affairs, will hear distributor and public appeals against classification decisions made by the office. Information regarding the process can be obtained from the censorship policy unit of the Department of Internal Affairs. The Classification Office has an information unit which also provides public information on censorship policy and practice.

Until the new censorship authorities have reviewed the classification systems under the new Act, the labels and classification listed below are still valid.

Classifications used for film are:

GApproved for general exhibition;
GYApproved for general exhibition; recommended as more suitable for persons 13 years of age and over;
GAApproved for general exhibition; recommended as more suitable for adults;
R (age)Approved for exhibition only to persons of the age specified or over (usually R13,R16 or R18);
RP (age)Approved for exhibition only to persons of the age specified or over, and to any person under that age when accompanied by that person's parent or guardian (usually RP13 or RP16);
R*Approved for exhibition subject to any such restriction as the chief censor may specify.

Disposing of pornographic material during amnesty before the introduction of the new Films, Videos and Publications Classifications Act.

Advertising material related to public exhibition also comes under the control of the chief censor and must be approved prior to use. Such advertising material must inform the public of the classification specified by the chief censor for the film or video.

Ratings and classifications used for videos are:

Green label

G—Suitable for general audiences.

Yellow labels

PG—Parental guidance recommended for persons under 13 years.

13—suitable for persons 13 years and over.

16—suitable for persons 16 years and over.

Red labels

Restricted 16—Not to be supplied to or viewed by persons under 16 years.

Restricted 18—Not to be supplied to or viewed by persons under 18 years.

Restricted R—This label imposes a restriction on the availability of the video. It may be utilized by specified persons or classes of persons or for restricted viewing for a specified purpose.

Each of these labels may bear a censor's note or description which provides additional information to potential consumers, for example—'contains violence' or ‘contains explicit sexual material’.

Indecent publications. Up to the passage of the Films, Videos and Publications Classification Act 1993, censorship of publications and sound recordings was the responsibility of the Indecent Publications Tribunal. In the year to 30 June 1992 the tribunal considered 129 referrals on a total of 1,641 publications.

11.2 The national collection

Art galleries and museums

There are more than 250 public museums and art galleries in New Zealand. Many are relatively small collections oriented towards the history or fabric of a particular region or location. The larger museums, of which there are many, carry out research, print catalogues and research papers and maintain education programmes for visitors and others.

Hobson Wharf, New Zealand's National Maritime Museum.

Over 60 percent of museums and art galleries are funded by local government, although the New Zealand Lottery Grants Board provides subsidies for capital works schemes and provides salaries for liaison officers attached to the four metropolitan museums.

Museum of New Zealand Te Papa Tongarewa. Founded in 1992, it is a museum of art, history, Maori culture and the natural environment. Its focus is on Aotearoa New Zealand and its place in the world.

The museum houses a large collection of Maori taonga including, Te Hau Ki Turanga, which is the oldest, extant Maori building in New Zealand. There is a collection of Polynesian, Micronesian and Melanesian art and culture and an extensive natural environment collection.

The Museum of New Zealand Te Papa Tongarewa holds a collection of paintings, drawings, graphic art, photography, and sculpture by New Zealand artists as well as Australian, British and foreign works. There are important collections of works by Natalia Gontcharova, Frances Hodgkins, Raymond Mclntyre and Colin McCahon.

The Hector Library is New Zealand's most comprehensive resource for students of systematic biology, ethnology and early European exploration of the region. It also houses art publications, archives, manuscripts, papers of artists, critics, dealers, slides and ephemera. The photographic collection includes artworks, 19th century historical images, natural history images and taonga.

Conservation of cultural property. The Cultural Property Council advises the Minister of Internal Affairs on all cultural property conservation matters, covering the specific areas of: paintings and works of art, ethnography, books and documents, films, photographs, machinery and textiles.

Historic places

New Zealand Historic Places Trust. This body is the principal organisation responsible for the care and protection of historic places, buildings and monuments in New Zealand. The historic places include European and Maori buildings and monuments constructed before 1940, historic sites, Maori traditional sites, and archaeological sites.

The staff of the trust, including curators and those employed at regional branches in Auckland, Wellington and Otago, are supported by more than 30,000 volunteer members.

Among the functions of the trust is the classification of buildings according historical significance or architectural quality. Buildings may be classified into one of four categories. They are:

  1. Those buildings having such historical significance or architectural quality that their permanent preservation is regarded as essential;

  2. Those buildings which merit permanent preservation because of their very great historical significance or architectural quality;

  3. Those buildings which merit preservation because of their historical significance or architectural quality; and

  4. Those buildings which merit recording because of their historical significance or architectural quality.

As at June 1993, almost 4,700 New Zealand buildings had been classified by the trust— including 130 ‘A’, over 628 ‘B’, more than 3,208 ‘C’ and over 717 ‘D’ classifications.

The board of trustees has the power to issue protection notices to prevent demolition or damage to buildings classified as ‘A’ and ‘B’ and it may also change the classification of buildings. The board has adopted a positive approach of encouraging the owners of historical buildings to discuss any proposed changes to the structures and working towards a mutually acceptable solution.

Public interest in the activities of the trust is generated and maintained by plaques and notice boards at many historical sites and a series of publications including leaflets, a quarterly magazine and books on historic preservation in New Zealand. A register of archaeological sites is maintained by the trust which has the authority to investigate the sites and prohibit unauthorised tampering.

Protection of antiquities and archaeological and traditional sites. There are a number of legal provisions to protect items and sites of historical and cultural significance. The Antiquities Act 1975 includes provisions controlling the sale of Maori artefacts in New Zealand. Artefacts found after 1976 are deemed to be Crown property. There are export controls on a range of items of cultural significance: Maori artefacts; chattels relating to the European discovery, settlement or development of New Zealand; written and printed matter; works of art, reproductions, prints, films and sound recordings; specimens of animals, plants and minerals; meteorites; remains of extinct fauna; and items of shipwreck.

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. During 1992-93 the trust processed and approved applications for seven traditional sites, defined by the Historic Places Act 1980 as a place important because of its historical significance or spiritual or emotional association for a group of Maori people.

The 100,00th visitor at the Auckland City Art Gallery's ‘Rembrandt to Renoir’ exhibition.

National Archives

National Archives, Te Whare Tohu Tuhituhinga o Aotearoa, is the country's largest repository of unpublished information on the history and development of New Zealand. It holds about 60,000 linear metres of paper documents, plus 550,000 maps and plans, large collections of films, videos, photographs, art works, posters, microfilms and objects. This wide variety of archives document the social, political, economic, scientific, military, legal, technical and administrative development of the country. Archives contain information on episodes, great and small, that have influenced and shaped the development of our nation; they are the raw material for the history of New Zealand.

The records held by National Archives are those created by central government. The Chief Archivist has the sole statutory authority over the disposal and destruction of all government records. Those records which are deemed to have permanent informational value, however, are selected by archivists for preservation as part of the country's documentary heritage. They are transferred to National Archives where finding aids are prepared that enable researchers to access the information in the reading rooms. All documents held at National Archives are available for public inspection without charge, unless a department has directed that access to its records be restricted.

Archival documents represent the memory of government because they provide evidence of its functions, policies, transactions, decisions and areas of responsibility. Because of the high degree of involvement by government in the affairs of its citizens, much information available from National Archives concerns the lives of the people of New Zealand going back to the 1840s and earlier. For that reason National Archives is particularly popular with people doing family research or local histories.

Since archives continue to relate strongly to the regions in which they were created and used, both for official purposes and wider historical research, National Archives maintains facilities to house and service archives in Auckland, Wellington, Christchurch and Dunedin. The selection of records for permanent preservation is carried out by staff based in each office (subject to the final approval of the Chief Archivist), and reading rooms and other reference services are provided for the archives held in each centre. Increasingly, researchers look for access to archives held in different offices: a research service on a cost-recovery basis assists enquirers to do this. On a longer-term basis, computerised access is envisaged to the full extent of the range of descriptive aids to the holdings of National Archives, from any one of its offices.

Records held by National Archives include those of government departments such as Education, Health, Police, Lands & Survey, and Internal Affairs, as well as Parliament, the armed forces, the courts and commissions of inquiry. Among the important and interesting archives from the 19th century are those of The New Zealand Company, the provincial governments, the Colonial Secretary, the Governor and immigration. Records of the 20th century are more diverse, reflecting the evolution of a more complex society, and range from the key operational and policy records of the departments of state to the records of the numerous wartime agencies and the war zones. The records of the Maori Land Courts, Maori Affairs Department and other departments contain vital evidence for all parties before the Waitangi Tribunal and provide a wealth of information on the history of the country's indigenous population. Papers of Prime Ministers such as Richard John Seddon, Sir Walter Nash, Norman Kirk and Sir Robert Muldoon are held, as well as those of a number of former cabinet ministers. In addition, the National Collection of War Art is kept at the National Archives headquarters in Wellington. It comprises oils, water-colours, and sketches of both wars made by New Zealand's official war artists and others.

Also at National Archives' headquarters in Wellington is the Constitution Room which provides an interesting walk-through history of New Zealand as illustrated by some of the country's most significant documents. The central focus of this unique exhibition room is the signed sheets of the original Treaty of Waitangi, carefully preserved in specially constructed environmentally controlled showcases. Other galleries have changing exhibitions that bring interesting aspects of the past to the notice of the public.

Storage of semi-current records on a cost recovery basis is available to public and private sector clients in Auckland and Wellington. National Archives has a statutory role to protect specified classes of local authority archives and advises and assists these bodies in the care, preservation and disposal of their records.

New Zealand Film Archive

The New Zealand Film Archive, Nga Kaitiaki O Nga Taonga Whitiahua, was established in 1981 to acquire, preserve and make permanently available for research, study and public screening a national collection of film and television materials of artistic, social and historic value. The archive is a charitable trust—not a government body—with a board of trustees selected to represent community, Maori, film and archival interests. Income is derived from the Lottery Grants Board, New Zealand Film Commission, the Ministry of Arts and Culture and NZ on Air, sponsorship and commercial activity.

The archive is to moving images what our art galleries and museums are to artefacts and paintings. The collection includes New Zealand and overseas films dating from 1896 to the present day comprising documentaries, feature films, shorts, animation, newsreels, television programmes, advertisements and home movies. The archive also houses a wide variety of promotional critical and historical documentation. Information is held for New Zealand and overseas films. This includes film reference books and periodicals, stills, posters, publicity, designs, unpublished scripts, special collections, clippings, production files and equipment.

The archive has begun a nation-wide Last Film Search, sponsored by the Bank of New Zealand. Two regional searches will be conducted annually until 2000. The primary aim is to locate any surviving film shot on nitrate stock—which until 1952 was used for all professional motion pictures. Nitrate begins an irreversible process of decay from the time it is manufactured and has an unpredictable life span of 30 to 70 years. The Last Film Search also collects all film materials of national significance.

The Film Archive began a major new project in 1993. With the support of NZ on Air, the archive has begun to assemble the first national collection of television advertising as part of an expanding television collection.

The archive also draws on the collections of overseas colleagues in FIAF (Federation Internationale des Archives du Film) for screenings of rarely seen films. International celebrations are being planned for the centenary of the moving image in 1995. For New Zealand the major celebrations will take place in 1996, 100 years after the first screening of moving pictures at the Opera House in Auckland on 13 October 1896.

11.3 Books and libraries

New Zealanders' use of books compares favourably with other English-speaking nations. There is a vigorous book publishing industry that caters not only for the local market but, particularly in the case of educational books, for an increasing number of overseas purchasers.

Libraries are distributed throughout the country, from very small school and community libraries to large library systems.

Book publishing

The New Zealand book market comprises New Zealand published books and overseas published books distributed by New Zealand agents, or distributed by New Zealand publishers representatives (sales agents), or ordered direct from overseas by the end user. Most of the book publishing industries are made up of companies who import as well as publish, though some are involved exclusively in one or other activity.

Industry sources estimate that the total number of books sold in New Zealand is around 400 million. This figures includes books sold through the book trade, books imported directly by institutions (libraries, etc.) and private imports. It is estimated that books published in New Zealand comprise approximately 35 percent of the total.

The number of publishers or producers of New Zealand books is around 300 though only 100 of these are specialist book publishers or importers of books. This specialist group is responsible for the production and distribution for over three-quarters of all new titles available in New Zealand and accounts for over 90 percent of the sales. The other 200 publishers comprise mainly government departments, local bodies, historic societies, business organisations, special interest groups and individuals.

A Lions Club collection of 200,000 books being sold to raise money for sports groups.

The number of New Zealand titles produced by commercial publishers has increased by 150 percent since 1980. The largest growth has been in educational publishing where healthy export markets have been developed. Educational publishing accounts for approximately 20 percent of all sales by value. However, economic pressure on the industry has led to titles being kept in print for a shorter period. Titles with low sales tend to be sold off cheaply and are not reprinted.

In recent years the majority of New Zealand published books have tended to be printed overseas where printing prices are lower. Generally the number of copies printed (or imported) of new New Zealand books has been declining. The average print run in 1986 was around 5,000 copies. The figure may now be around 3,000 copies.

The majority of major book publishers are located on Auckland's North Shore. Wellington has a smaller number of general book publishers but is a centre for legal and government book publishing.

The New Zealand book publishing industry has its own professional body, the Book Publishers Association of New Zealand. The association represents the wide ranging interests of its members, such as marketing, copyright concerns and the development of book exporting.

Libraries

The library needs of the majority of New Zealanders are met through public libraries provided by local authorities. Since local authority amalgamation, most of the 74 cities and districts provide a co-ordinated library service to the whole district population. There is usually one central district or city library and a number of other service points. The total number of permanent service points in 1993 was 260 within 92 library systems.

In the year ended 30 June 1993, local authority libraries held a book stock of over 8.5 million volumes, and made approximately 38 million issues.

There are some 58 libraries in tertiary education institutions, including the seven university libraries, each of which have major collections, and there is provision for a library or library room in every school. The seven New Zealand universities finance their libraries largely from government grants. Research collections have been developed, all have online integrated library systems and are linked nationally through the New Zealand Bibliographic Network. The holdings of all university libraries together were some six million volumes in 1992. Over 290 specialist libraries and information centres serve government departments, businesses and other organisations.

A co-operative inter-library lending system allows resource-sharing among its 246 member libraries. The Interloan scheme is administered jointly by the National Library and the New Zealand Library and Information Association.

Since 1980, librarianship has been taught at two schools; a postgraduate diploma course at Victoria University of Wellington, and a certificate course at Wellington College of Education. There is also a archives and records course from Wairarapa Polytechnic and school library skills are taught through the Auckland College of Education.

National Library of New Zealand. The mission statement of the National Library of New Zealand, Te Puna Matauranga o Aotearoa, is to maximise access to information resources for all New Zealanders by leading the national development of library-based services.

The National Library is the principal adviser to government on library policy and information issues. It collects, preserves and makes accessible an important part of the documentary heritage of New Zealand. It makes available an authoritative record of New Zealand publishing. It co-ordinates the availability of national information resources, and delivers information through the New Zealand Library system.

The collections which can be accessed through the service include approximately 700,000 books, mainly in the social sciences and the humanities; approximately 8,670 current journal titles and monographs-in-series in all subject areas including medicine, technology and pure science, over 2 million microfiche and microfilm, approximately 4,400 music scores; a collection of sound recordings including 10,000 compact discs; over 110,000 children's books; all daily New Zealand newspapers, and a selection of overseas newspapers.

The National Library in Wellington provides a cultural as well as an information resource for New Zealanders. Visitors can view displays in the National Library Gallery and the Turnbull Room. Items from the library's heritage collections are featured in changing exhibitions and displays, which may also include touring exhibitions from other institutions. A programme of events including openings, tours and other activities supports the exhibitions. The National Library has its own programme of exhibitions touring in other parts of the country.

The following services are available from the National Library:

Information service—the National Library provides a reference service to answer enquiries for information that cannot be satisfied from resources in other New Zealand libraries. The information service provides access to information in the National Library's extensive collections of New Zealand and overseas books, serials, music and local and overseas databases.

Services to libraries—in addition to the information service, a range of services are provided to other New Zealand libraries to facilitate, enhance and back up their work and collections.

These include: loan and copy services; resource sharing tools and directories (online or printed); bibliographic tracing and referral services; database services (New Zealand Bibliographic Network and Kiwinet); a range of publications, such as bibliographies and training guides.

During the three years from July 1991 to June 1994 the National Library has undertaken a programme to support the development of public library services in medium and small-sized local authority districts. The library has worked in partnership with local authorities to offer workshops in collection planning and reference skills.

Kiwinet—is the National Library's online information network. It hosts 25 databases which provide information on all aspects of New Zealand, including business, the social sciences, arts, commerce, the humanities and law. Over 750 clients access the service, often on a daily basis, nationwide and internationally.

The New Zealand Bibliographic Network (NZBN)—is an outline computer system which links most public, university, government and special libraries in New Zealand to a central bibliographic database. NZBN's prime function is to support libraries throughout New Zealand in their reference, interloan, cataloguing and acquisitions activities. There are over 230 member libraries.

The NZBN database contains over 7 million bibliographic records, including information on over 5.6 million books, periodicals and audio-visual programmes held in New Zealand libraries.

Alexander Turnbull Library—is a national research collection specialising in documentary materials relating to New Zealand and the Pacific, John Milton and his times, English literature, early printed books, voyages of discovery and exploration, and the arts and crafts of the book. It is based on the collections of Alexander Horsburgh Turnbull, a wealthy Wellington merchant who died in 1918 and bequeathed to the nation some 55,000 volumes as well as manuscripts, paintings and sketches, which he had collected during his lifetime. Turnbull's original collections continue to guide the library's collecting policy, but new initiatives, such as the Archive of New Zealand Music, the New Zealand Cartoon Archive and the Oral History Centre have been developed to reflect the importance of these media in recording aspects of the New Zealand experience.

Automated access to unpublished collections is being developed on TAPUHI (Turnbull's Automation Project for Unpublished Heritage Items). The cataloguing and indexing of published material focuses on giving access to commonly used books and serials to give researchers better access to locally-held New Zealand collections.

The library receives the output of several major international microfilming projects and maintains its own copying programme. The availability of all of these microfilms on interloan greatly enhances the resources available to researchers all over New Zealand.

Reference and research services based on these collections are available to those whose needs cannot be met by other libraries. The collections are not generally available for lending.

At July 1993, the collection included approximately 240,750 books; 16,100 rare books; 46,760 maps; 1,453,000 photographic prints, negatives and albums; 48,000 paintings, drawings and prints; 9,900 discs, tapes and cassettes; 1,000 linear metres of newspapers; 6,100 shelf metres of manuscripts; 3,020 metres of serials; and 41,000 microfilms.

The Dorothy Neale White Collection—this is a research collection of over 6,000 children's books and magazines read in New Zealand up to 1940.

Services to schools—the National Library provides support services to New Zealand schools through the School Library Service which incorporates the National Film Library.

An advisory service which includes training, is available from 14 National Library centres, to support school library development and management.

Schools have access to collections of material which support the primary and secondary curriculum.

Infoserve—this is the National Library's one stop information service. Established to meet the information needs of the business community, Infoserve has offices staffed by information consultants in Auckland and Wellington.

Infoserve has access to 5,000 online national and international databases, and published information from many books, conference papers and journals.

Client services include information searches on technical research, company, market or industry profiles, competitors or contacts. These can be expanded to monitor market trends, industry groups, competitors and the economy.

Infoserve can rapidly supply copies of articles from reports and books, and extracts from journals. It also operates an information consultancy referral service.

Kaiaua's library in the disused post office, with books donated by locals.

Recording New Zealand publishing—under the legal deposit provisions of the Copyright Act 1962, the National Library receives three copies of every publication produced in New Zealand. The National Library is responsible for making available the authoritative record of New Zealand publishing in book and non-book formats. The New Zealand National Bibliography includes most of the country's publications, and is published on fiche and as part of the NZBN database. Index New Zealand (INNZ) is a subject index to the contents of New Zealand general and scholarly serials, newspapers, theses and conference papers.

Parliamentary Library. This library provides library, information, research and reference services for Parliament as required by the Parliamentary Service Commission. The library's collection, which numbers over 500,000 volumes, is strongest in areas such as economics, politics, public administration, law, social sciences and biography, all being subjects relevant to members of Parliament for their legislative duties. The library has one of the largest collections in the country of books, pamphlets, periodicals and newspapers relating to New Zealand.

The International 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 European Community. This collection is available for public use.

Hocken Library. Founded in 1910 through the gift of Dr T. M. Hocken, physician, bibliographer and collector of Dunedin, the Hocken Library contains major research collections of New Zealand, Pacific and early Australian material. Administered in trust by the University of Otago, the library includes substantial holdings of books (165,000), newspapers and periodicals; sound recordings (9,000); microfilms (5,000); maps (12,000); photographs (103,000); posters (13,000); paintings (7,000), including modern works of art; and manuscripts, particularly of early missionaries and literary figures. The library's archives and manuscripts total 6,000 linear metres, and are rich in Otago sources—business, local government, education, health, sport, the goldfields, the churches and the University of Otago. In 1991 the library attracted 9,917 readers and 858 written enquiries were answered.

Contributors

  • 11.1 Ministry of Cultural Affairs; Ministry of External Relations and Trade; Queen Elizabeth II Arts Council; New Zealand Symphony Orchestra; New Zealand Film Commission; Department of Internal Affairs; Department of Justice.

  • 11.2 Department of Internal Affairs; Department of Conservation; New Zealand Film Archive.

  • 11.3 Book Publishers Association of New Zealand; National Library of New Zealand; Parliamentary Service; University of Otago.

Special articles

National Library of New Zealand; New Zealand Cartoon Archive.

Further information

Fostering the arts

Report of Ministry of Cultural Affairs (Parl paper G10).

Report of the Department of Internal Affairs (Parl paper G7).

Report of the New Zealand Film Commission (Parl paper G19).

Report of the New Zealand Lottery Grants Board (Parl paper G7b).

Report of the Queen Elizabeth II Arts Council of New Zealand (Parl paper G11).

Report of the New Zealand Historic Places Trust (Parl paper G10).

The national collection

Report of the Board of Trustees, National Art Gallery, Museum of New Zealand Te Papa Tongawera (Parl paper G12).

Books and libraries

Report of the Trustees of the National Library of New Zealand (Parl paper G13).

Chapter 12. Leisure and tourism

An Otago walking group.

12.1 Sport, fitness and leisure

Sport, fitness and leisure have played an important part in creating and shaping New Zealand's national image, both at home and abroad, and contribute much to the lifestyle New Zealanders enjoy. In New Zealand there is the potential for everyone to participate in some form of sport or leisure activity and it is government policy to promote access to it for all New Zealanders.

Sport has been a predominant focus for cultural identity and New Zealand is perhaps best known for the calibre of its international sportspeople. But other forms of leisure activity are equally as important within the nation's life. The 125,000-strong membership of the New Zealand Amateur Arts Assembly, which represents 23 national bodies and 1,546 clubs and groups, attests to the importance of the amateur arts as a form of participatory recreation. Outdoor recreation is favoured by a relatively pristine environment, rich in scenic beauty. An extensive and varied park system which includes national, forest and maritime parks, historic and scenic reserves, walkways and a large number of local parks and reserves showcases the environment and provides a full spectrum of recreational opportunity. The country's national parks and reserves are described in section 15.3.

The 1990 Life in New Zealand Survey, a baseline study of sport and leisure involvement identified five main reasons for participation in physical activity. These were: to feel good, to have fun, to keep healthy, to do things with friends and to do things with family. Top sports for the population over 15 years were swimming/diving, cycling, snooker/pool, tennis and aerobics. In the recreational physical activity section walking came out tops followed by running/jogging, cycling and fitness classes. In terms of favourite leisure activities reading was most popular followed by watching television and videos, visiting friends, listening to music and gardening.

Providing for sport and leisure

Hillary Commission for Sport, Fitness and Leisure. The commission was first formally established as a Cabinet portfolio in 1973 with the establishment of the Ministry of Recreation and Sport and the Council for Recreation and Sport. In 1987 the two bodies were superseded by an independent statutory body, the Hillary Commission for Sport, Fitness and Leisure.

The commission initiates, supports and facilitates programmes and policies aimed at raising the quantity and quality of active participation in sport, fitness and leisure among all age groups of New Zealanders, at all levels of competence.

The nine-member commission employs approximately 36 staff. Ex-All Black captain, Sir Wilson Whineray is the commission's presiding member. It is funded by the New Zealand Lottery Grants Board and government.

In the year ended 30 June 1992 the commission distributed nearly $14 million to sport, fitness and leisure groups. This included $3.4 million which was directed through local authorities to fund local sport, fitness and leisure, $4.5 million to assist national sports, fitness and leisure organisations, $0.6 million to the New Zealand Olympic and Commonwealth Games Association, $2.9 million to the New Zealand Sports Foundation, and $2.4 million towards the development of regional sports trusts and their programmes. In addition, the Hillary Commission has developed initiatives and programmes in sport, fitness and leisure such as the highly successful KiwiSport modified sports codes and programmes for Maori, women, older adults, people with disabilities, drugs in sport and fair play.

Older adults. With an increasing proportion of New Zealand's population over the age of 50 the commission introduced the Active in Age programme in 1990. Active in Age is the vehicle for a range of initiatives aimed at increasing the participation of this age group in sport, fitness and leisure activities by promoting the benefits of leading healthy, active lifestyles. Increasing numbers of older adults are participating in a wide range of physical leisure activities, and research (both in New Zealand and overseas) shows clear improvements in the fitness, flexibility, heart rate and blood pressure of participants.

The commission has encouraged local authorities to establish Fifties Forward programmes which meet the physical and social needs of older adults. In addition 18 Fun Festivals for Over Fifties were held in nine regions in 1992-93. A television programme, 50 Forward is designed specifically for this age group and features exercise routines, medical and nutritional information for older adults and interviews with prominent older New Zealanders in full and active lives.

People with disabilities. Full and active participation in sport and leisure need not be affected by a person's disability. Through its KiwiAble programme the commission encourages people with disabilities to capitalise on their abilities and skills. KiwiAble stresses the ability of individuals rather than any disability.

The majority of people with disabilities can be included in mainstream sport and leisure activities. A number of resources the Hillary Commission produces provide teachers and sports leaders with simple and effective guidelines for bringing people with disabilities into the main group.

Other central government bodies. A wide array of other government departments, corporations and statutory bodies are concerned with recreation. The Department of Conservation is, for example, a principal land manager in the sphere of outdoor recreation, whilst the Department of Internal Affairs administers a number of programmes to help local authorities and community organisations provide for the needs of young people.

New Zealand is a 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 the Ministry of Youth Affairs.

Local government. The provision of sport and leisure facilities such as libraries, community centres, parks and playing fields has long been an accepted part of the responsibilities of local and regional authorities. The Hillary Commission report The Business of Sport and Leisure estimates that local government invests $430 million each year in the provision of leisure services and facilities with $300 million dedicated to physical leisure.

Voluntary sector. Volunteers are the backbone of sport, fitness and leisure in New Zealand. Life in New Zealand showed that 30 percent of all New Zealanders regularly spend their leisure time in voluntary support roles for sport, fitness and leisure activities. In 1990 the Hillary Commission launched the Volunteer Involvement Programme to give formal recognition and support to the work of sport, fitness and leisure volunteers. A funding programme was also developed to enable local organisations to recruit, train and retain volunteers.

Leisure industry. In 1992 the Hillary Commission commissioned Business and Economic Research Limited to undertake a major study on the impact of the sport and leisure industry in New Zealand. The resulting document, The Business of Sport and Leisure, reveals some very interesting facts:

Founder of the Canterbury Beer Can Collectors' Club, with a selection of his 2000-can collection.

  • Sport and leisure is a $4.5 million a day business.

  • New Zealand's sport and leisure industry supports 22,745 jobs.

  • Sport and leisure pays $300 million a year in taxes.

  • Sport and leisure directly and indirectly contributes $1,648 million to New Zealand's gross domestic product.

  • Tourism generated by sport and leisure contributed $210 million and supported 4,013 jobs in 1991.

  • Sport and leisure benefits from $200 million of free volunteer effort every year.

  • New Zealanders spent $725 million on physical leisure goods in 1990/91. This represents 2.1 percent of household expenditure.

The 1993 Business Directory compiled by Statistics New Zealand showed 22,164 New Zealanders as being employed within the category ‘recreation services’, an increase over the 20,995 recorded a year earlier.

Sport

For many New Zealanders the successful New Zealand sportsman or woman represents the archetype of the battler succeeding against the odds. International sporting events in which New Zealand features have the power to arouse intense nationalistic fervour. New Zealanders have fared exceptionally well in the international arena despite the country's distance from the world's major venues and, until the early 1970s, a comparative lack of state or corporate funding. At the 1984 Los Angeles Olympics, for example, New Zealand achieved a greater medal ratio per head of population than any other nation competing, although this may have been due in part to the absence of many Eastern European nations.

Various reasons have been advanced for New Zealand's success. A small population may have helped produce an affinity between the national hero and weekend athlete, and, while a generally temperate climate has made it possible for athletes to train year round, there is sufficient variety of terrain and climate to foster a wide range of summer and winter pursuits.

Traditionally New Zealanders have excelled in rugby union, which has been regarded as the national sport, and track and field athletics. However, Sir Edmund Hillary, who with Sherpa Tensing Norgay in 1953 was the first to climb Mount Everest, probably remains New Zealand's best internationally known sportsman. Over more recent years New Zealanders have had sustained international success in rowing, netball, squash, softball, cricket, yachting and other disciplines.

Many New Zealand sportspeople, whether individually or in teams, have continued to succeed at the highest level, such as the All Blacks, Susan Devoy in squash, skier Annelise Coberger, the men's and women's golf teams and Danyon Loader in swimming.

Specific successes in other sports have included Olympic medals in skiing, swimming, yachting, windsurfing, boxing, equestrian, cycling, marathon running and athletics. World titles have been won in swimming, ice racing and darts.

Sports participation. New Zealand's success at an elite level is founded on a broad base of mass participation and support. The New Zealand Assembly for Sport, which represents over 50 national associations, claims a collective membership of over 1.5 million.

The 1990 Life in New Zealand survey found that 85 percent of the population had participated in a leisure or physical activity in the last four weeks with 47 percent of all New Zealanders belonging to at least one sport, fitness or leisure club.

'Life in New Zealand' also found that the most popular sports activity participated in by New Zealanders was aquatic sports (swimming/diving/water polo) with 28 percent of the population involved. The three most popular activities for women were swimming (29 percent), cycling (17 percent) and aerobics (16 percent). The three most popular activities for men were swimming (26 percent), snooker/pool, etc (23 percent) and cycling (16 percent).

Participation in sport changed dramatically with age while participation rates in general fell with increasing age. In contrast, golf participation in both men and women peaked in the 45–64 age group, and lawn bowls slowly built to 18 percent in the 65-plus age group.

The table below describes participation rates for the most common sports activities in New Zealand.

Table 12.1. PARTICIPATION IN MAJOR SPORTS BY PEOPLE OVER 15 IN 1990

SportParticipation (percent of population)
Source: Hillary Commission.
Aerobics/jazzercise12
Archery, pistol/rifle shooting3
Athletics/harriers5
Baseball/softball5
Basketball5
Boxing/wrestling1
Canoeing2
Cricket7
Cycling17
Fencing0
Golf8
Gymnastics1
Hockey/lacrosse5
Horse riding3
Lawn bowls/croquet5
Martial arts2
Motor boating7
Motorcycling/trail biking5
Netball4
Orienteering1
Rink sports1
Rowing2
Rugby League3
Rugby Union5
Sailing4
Skateboarding2

New Zealand Sports Foundation. The New Zealand Sports Foundation was incorporated in October 1978 as an organisation independent of all sports bodies or groups, and the Government.

The objective of the New Zealand Sports Foundation is to assist our current and potential high performance sportsmen and sportswomen to succeed at international level and by so doing bring credit to themselves, their sport and our country as a whole. It was conceived as a joint venture between the public and private sector, and the original proposition, which is valid today in every respect, including demonstrated performance, was that the foundation should be equally funded by the two sectors.

At 30 June 1992 more than $20 million assistance had been made available to more than 2,000 athletes, coaches and scientists from more than 50 organisations. The foundation currently operates on an annual grants budget approaching $5 million.

Over the past 13 years the foundation has proved remarkably successful in identifying and supporting outstanding sports talent thus facilitating international success. New Zealand's record at international events in a multitude of sports bears that out.

The foundation is committed to its objectives and will work with the Hillary Commission, the Olympic and Commonwealth Games Association, and National Federations and Associations representing non-Olympic sports for the betterment of New Zealand sport.

Sports Foundation chief executive with photographs of New Zealand's top sporting achievers.

New Zealand Olympic and Commonwealth Games Association. The association is responsible for a number of programmes and initiatives that promote sport and elite competition for New Zealanders. It oversees the administration, selection, development and funding of teams that compete at Olympic or Commonwealth level. Thirty-six sports federations are members of the NZOCGA.

Educational and promotional activities are a major part of the association's functions. A number of events are organised every year to celebrate the principles of mass participation and fair play, including the Olympic Day Run. Educational material is prepared for primary and secondary schools and the association provides an extensive library including a video section and archive with records and correspondence dating back to the first meetings of the International Olympic Committee.

The New Zealand team competed in skiing and short track speed skating at the XVIIth Olympic Winter Games in Lillehammer, Norway from 12–27 February 1994. The team included skier Annelise Coberger and the World Champion speed skating team.

From 18 to 28 August 1994, the New Zealand team compete in 10 sports at the XVth Commonwealth Games in Victoria, British Columbia, Canada. For the first time events for athletes with a disability will take place during the games.

Outdoor leisure activities

Fishing. A wide variety of fish abound around the coasts, in bays and harbours. In both the North and South Islands many streams, rivers, and lakes provide excellent rainbow and brown trout fishing.

Average sizes of trout vary from district to district depending on environment, climate, food available, and the numbers of anglers.

With the exception of the Lake Taupo Fishery, which is managed by the Department of Conservation, trout and salmon fisheries are managed by regional fish and game councils. These were established in 1990 and have taken over from acclimatisation societies.

Rainbow and brown trout are found in the lakes and rivers of the North Island, and the lakes of the South Island. The South Island also has sea-run brown trout in West Coast rivers, sea-run quinnat salmon in East Coast rivers and land-locked salmon.

Big-game fishing. The warm waters off the east coast of the North Island provide some of the best surf, line, and spear fishing in the world. The main bases for line fishing from charter boats are at Whangaroa, Bay of Islands (Russell, Otehei Bay, and Waitangi), Tutukaka, Mercury Bay (Whitianga), and Tauranga (Mayor Island).

The most prized catches are broadbill, black marlin, striped marlin and blue marlin, while other types of big-game fish found in New Zealand waters are mainly tiger shark, hammerhead shark, mako shark, thresher shark, kingfish (yellow tail), and tuna. The best catches are usually made in February but fishing is good from December to April.

Shooting and hunting. The principal game birds are duck, swan, pheasant, quail, geese, and chukor, but the sport is limited, the main season usually extending for about six to eight weeks depending on the fish and game region. By tradition the season starts on the first weekend of May.

There are few restrictions on big game hunting. Generally speaking there is no limit on the number of game animals that can be taken, no licence requirement and the season is open all year round. However, commercial hunting operations have severely limited the numbers of some game animals (deer of several species, elk, chamois, and thar) that once abounded in the forest and alpine regions. Wild pigs, goats, and wallaby are still numerous in several areas. For tourists and inexperienced hunters, the services of an experienced guide are recommended. For further information contact the Department of Conservation.

Hunting safari.

Skiing. The skiing season in New Zealand extends from June to late October at ski areas in the North and South Islands. Many fields also have snow making equipment to ensure reliable snow depth and quality. New Zealand has 12 commercial ski areas, 12 club ski fields and one commercial cross-country ski area.

In the North Island the main skiing centre is Mount Ruapehu in the Tongariro National Park. There are two commercial ski fields, Whakapapa and Turoa, and one club field (Tukino) at Ruapehu, with the Maunganui ski club area on Mount Egmont in Taranaki.

In the South Island the commercial ski areas are Coronet Peak, the Remarkables (Queenstown), Cardrona, Treble Cone (Wanaka), Ohau, Mount Dobson (Aorangi), Porter Heights, Mount Hutt, Mount Lyford (Canterbury), and Rainbow Valley (Marlborough). There are 10 smaller ski club fields in the South Island.

The Waioru Nordic Ski Area on the Pisa Range near Wanaka offers 24 kilometres of cross-country skiing. Glacier skiing on the Tasman and Fox Glaciers, with access via ski planes, is also available, while guided heliskiing and ski touring open up the Ben Ohau Ranges, the Harris Mountains, the Two Thumbs Range, the Mount Cook/Tasman Glacier area, Mount Hutt and Queenstown in the South Island and the Ruahine Ranges in the North.

The International Ski Federation (FIS) has sanctioned the holding of international ski competitions at Mount Hutt, Whakapapa, the Remarkables, Coronet Peak and Turoa, with Mount Hutt hosting the World Cup in 1990 and Continental Cups and FIS races which are held annually.

Mountaineering and tramping. The nearness of mountains and forests to the main centres of population in New Zealand gives the opportunity for adventures away from civilisation. In the Waitakere and Hunua Ranges, near Auckland, the many national and forest parks and reserves of the North Island, and through the extensive parks and protected natural areas of the South Island, there are tracks through beautiful scenery. Tramping tracks range from half-day family oriented walks to challenging tramps in back-country and alpine isolation. Climbing (both rock and ice) is becoming more popular with many opportunities for this activity found throughout New Zealand. Information on mountaineering and tramping in New Zealand is available through commercial guiding companies or the Department of Conservation. Some of the more popular and adventurous tracks are the Milford and Routeburn Tracks in Fiordland, the Heaphy Track near Nelson and the Waikaremoana Track in the Te Urewera National Park, all of which take several days to travel.

The Abel Tasman Coastal Track is the most popular of the tracks with around 24,000 overnight visitors per year, while the Milford Track has around 10,000 overnight visitors annually. Next in the popularity stakes come the Routeburn, Kepler (located in Fiordland), Lake Waikaremoana and Heaphy tracks.

Walking. Since 1976, emphasis has been placed on establishing walking tracks in rural and urban areas throughout the country. The ‘walkways’ system offers walking opportunities over primarily private land and is a complementary system to the network of back-country tramping tracks. Walkways vary in length from half-hour walks to four or five days journeying for the St James Walkway in North Canterbury. In addition to ‘walkways’, government agencies and local authorities throughout New Zealand develop and maintain public walking tracks.

A trail bike tour business, operating from an old national park railway station.

Racing and gambling

Racing. There are thoroughbred and harness racing clubs in most cities and larger towns, as well as many smaller centres throughout New Zealand. The number of meetings held each year and the stakes offered vary widely—particularly between the larger city and the smaller provincial clubs, which may hold meetings as infrequently as once a year. There is also a strong horse breeding industry, with annual yearling sales attracting an increasing number of overseas buyers, although, with few notable exceptions, New Zealand-bred horses have had their greatest successes in Australian feature races.

On-course and off-course betting is conducted through the Totalisator Agency Board (TAB), which has branches throughout the country. Turnover is taxed by central government and certain deductions are made to assist with stakes, amenities and the upkeep of clubs and the balance being the pool from which dividends are declared.

Greyhound racing's traditionally small attendances and turnover have steadily increased since the 1980 extension of TAB betting facilities to greyhound meetings.

A minister for racing was appointed in 1990 and a ministerial committee set up to recommend how the performance of the industry could be improved. The report was released in July 1991 with many of the recommendations viewed as easy to implement. It is hoped that the proposed changes will reverse the current downturn in turnovers.

New legislation has been introduced to amend the Racing Act 1971. The necessary changes came into force for the start of the racing season in August 1992. The major changes are the introduction of full Sunday racing, a new Racing Industry Board to replace the Racing Authority and the ability to introduce Fixed Odds Betting.

Table 12.2. RACE MEETINGS*

GallopingTrottingGreyhounds
  199219931992199319921993

*Full totalisator meetings only, for years ended July.

Source: Office of Minister for Racing.

Race meetings 35134423623110098
On-course turnover$(000)88,13077,37655,87550,7643,1972,973
TAB turnover$(000)504,767459,272222,119237,00036,82337,621
Total dividends$(000)474,316422,748222,395226,45732,01631,600

Lotteries and gaming. Under the Gaming and Lotteries Act 1977 gambling may only be run to benefit charities and the community. Larger games and lotteries need to be licensed, smaller ones are exempt providing they meet the requirements of the Act.

The Act distinguishes between five forms of gambling: games of chance (housie and gaming machines); bookmaking and betting (other than betting on horse racing and greyhound racing); prize competitions (pick the score competitions); lotteries (raffles); and instant games ('scratch' tickets). Horse and greyhound racing is controlled through the Racing Act 1971 and casinos through the Casino Control Act 1990.

Work on new legislation relating to gaming machines progressed throughout 1993 and is currently waiting for introduction to Parliament. There are now an estimated 6,900 machines in 2,100 hotels and club rooms. Machine turnover for the 1992/93 year is estimated to be $820 million. Total turnover for all other licensed gaming for the 1992/93 financial year (except Lotto and Instant Kiwi) is estimated at $55.6 million. The New Zealand Lotteries Commission recorded total sales for the year ended 30 June 1993 of $557.6 million being $432.8 million for Lotto and $124.8 million for Instant Kiwi.

Casino licences have been issued for New Zealand's first casino by the Casino Control Authority. It is expected that the casino will begin operation in Christchurch towards the end of 1994.

Casino licence applications are also being considered for Auckland. After this no licences will be issued for two years. The Department of Internal Affairs will be responsible for supervising and inspecting licensed casino operations in New Zealand. It will also license all gaming and management staff employed in casinos.

Table 12.3. ALLOCATION OF LOTTERY PROFITS

Recipient1990-911991-921992-93

*These amounts include carry forwards from previous financial year.

†DC is an abbreviation for ‘Distribution Committee’.

Source: Department of Internal Affairs.

 $(million)* 
Hillary Commission13.7524.024.0
Queen Elizabeth II Arts Council16.418.718.7
New Zealand Film Commission7.47.87.8
Lottery General DC†27.025.721.5
Alcohol and Drug Sub-committee--3.2
Lottery Community Facilities DC13.513.411.7
Lottery Welfare DC10.014.511.5
Individuals with Disabilities Sub-committee--3.2
Lottery Environment and Heritage DC--7.0
Lottery Aged DC3.05.84.0
Lottery Youth DC5.05.36.0
Lottery Health DC3.53.93.9
Lottery Science DC3.53.53.5
Lottery Centres Sub-committee7.53.94.5
1990 Community Projects2.0--
Ministry of Internal Affairs Discretionary Fund3.50.50.5
Total116.0126.9131.0

12.2 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 all 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 today are more interested in finding out more about the distinctive features of not only the New Zealand countryside, but also the way of life. 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 and are being used to promote New Zealand as a tourist destination.

The tourism industry

Tourism is the world's largest industry, according to research by the World Travel and Tourism Council. It employs 112 million people worldwide (one in every 15 workers) and generates US$2.5 trillion a year and is set to keep growing.

In New Zealand, tourism is a $20 million a day business and is one of the top foreign exchange earners. For the year ended 30 September 1993, the combined value of international and domestic tourism was estimated at $8.2 billion. Domestic travel accounts for about half the expenditure on tourism.

International visitor arrivals are expected to increase from just over 1 million in 1993 to nearly 3 million in the year 2000. Based on this continuing growth rate, the tourism industry in New Zealand is expected to be a leading generator of new job opportunities.

New Zealand's current share of the international tourism market is small at 0.2 percent, but visitor arrivals are growing at twice the world average. For the year ended March 1993, the number of visitors to New Zealand increased by 8.7 percent to 1,086,557. The World Tourism Organisation predicts that world tourism will grow at 3-4 percent through to the year 2000, but the growth rate to the East Asia/Pacific region, including New Zealand, will be higher at 6.8 percent per annum.

As a growing labour intensive industry, tourism generates an increasingly wide range of jobs for New Zealanders. The number of equivalent full-time jobs supported directly by tourism is about 68,000. A further 100,000 jobs are in areas servicing tourism. Given growth in tourism is expected to continue, the tourism industry will continue to be a leading generator of new job opportunities for New Zealand.

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. In a recent survey of New Zealanders' attitudes towards tourism, 98 percent of people surveyed saw tourism as important or very important to the economy and 89 percent thought that tourism had more benefits than costs for the country and their local area. Fifty-two percent of respondents said they had hosted international visitors and 49 percent of the workforce said their work involved direct contact with overseas visitors.

New Zealand's largely unspoiled and unpolluted environment is a major attraction for visitors. Protection and careful management of New Zealand's resources will help ensure tourism has a positive impact on the environment. Increasingly the industry is working with environmental partners to preserve and, where possible, enhance the environment, ensuring sustainable growth for the tourism industry. For tourism, sustainability means preserving the quality of the visitor experience for present and future visitors, meeting the needs of the host community, and protecting and enhancing the attraction for the future. In this way, tourism provides a strong justification for the protection of the environment, historic places and cultural sites.

OVERSEAS VISITORS
Total numbers

As many of New Zealand's finest natural attractions are located on the land administered by the Department of Conservation, the relationship and co-operation between tourism operators and the department has become increasingly important. The department has been working with the Ministry of Tourism and the New Zealand Tourism Board on strategies for managing the growth of visitors and providing visitor facilities and services on the conservation estate.

Table 12.4. EXPENDITURE BY TOURISTS FROM SELECTED COUNTRIES. 1993*

Country of residenceTotal travel expenditure†Mean expenditure per personMean expenditure per day

*New Zealand International Visitors' Survey, year ended 30 September.

Excludes international airfares. Includes pre-paid, cash and credit card spending during respondents' visit to New Zealand.

Source: New Zealand Tourism Board.

 $ (million)$$
Australia424.71,320.3795.66
United States243.71,874.37135.21
Japan392.13,148.24236.58
United Kingdom193.92,135.9269.79
Canada49.01,974.6072.68
Germany159.03,314.27104.95
Singapore36.11,882.96192.32
Taiwan83.92,481.85173.85
Hong Kong42.62,248.75162.66
Other Europe128.12,465.1978.46
Other Asia105.81,949.87128.38
Other countries204.52,197.6586.89
Total2,063.52,040.93110.88

Tourism Facilities Development Grants Programme. The Ministry of Tourism administers this grants programme. Its purpose is to increase the stock of nationally significant tourism facilities and enhance visitor understanding and enjoyment of New Zealand and its attractions. Grants are obtainable for projects which provide a permanent facility presenting and interpreting an aspect of New Zealand's environment, history or culture, likely to be of significant interest and attraction to overseas visitors. Many grants have gone towards preserving historical places, cultural sites and the environment, as well as providing facilities the whole country can enjoy.

Among the approved grants from the 1992-93 programme are grants to the: Otago Peninsula Trust for an audio visual display at the Tairoa Head Visitor Information Centre; Auckland Maritime Museum towards the Maori/Pacific Islands audio visual programme and nine video installations for the museum; Banks Peninsula District Council to assist with the purchase and refurbishment of the historic Akaroa Post Office building, which will have a number of functions including a tourist information centre; IHC Cottage Paper Mill in Whangarei for the establishment of a traditional 18th century cottage country garden; Department of Conservation to assist in upgrading the Queen Charlotte Walking Track in the Marlborough Sounds; and Rotorua District Council for Maori carvings and decorations for the interior of the new Tourism Rotorua Centre. Funding is not available for projects and organisations liable for income tax.

MORE TRAVELLERS
Visitors per 1,000 population

Mountain lobsters and huhu grubs at Wild Foods Festival, Hokitika.

TOURIST EXPENDITURE

Facilities for visitors. In recent years, there has been a marked trend toward more active, participatory holidays. Visitors and domestic travellers want new experiences, and there is also a much greater diversity of things to do. The variety of activities has increased as the demand for leisure activities among New Zealanders has increased. As visitors now expect activities and amenities that complement New Zealand's scenic attractions, and provide insight into another culture and lifestyle, attractions and facilities developed primarily for the local community are increasingly used by visitors.

Tourist 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/fishing lodges, backpackers' lodges, and farm/home-hosting. Accommodation patterns vary greatly between regions, depending on local population, terrain and climate.

Of all the person nights spent in New Zealand by international visitors in the year ended September 1993, 5 percent were spent in top class hotels, 10 percent were spent in mid-range hotels and motor inns and 12 percent were spent in motels.

The use of private homes by international visitors accounted for 39 percent of total person nights, and campervans, tents and camping grounds absorbed 7 percent of all person nights for the year ended September 1993.

Hot air balloons over Canterbury, at the first South Island balloon meeting.

Transport used by visitors. New Zealand has a highly developed public transport system, with scheduled air services to most areas and an extensive network of coach operations. 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 campervans.

In order of use, domestic air (34 percent), private car (34 percent), rental car (25 percent) and organised coach tours (22 percent) are the four most favoured means of internal transport for international visitors. Holiday/vacation visitors favour domestic air (38 percent), organised coach tours (34.1 percent) and rental cars (29 percent). Those visiting friends and relatives make much greater use of private cars (74 percent) compared with holiday visitors (15 percent). Business travellers prefer private cars (37.1 percent) and domestic air (33 percent). Most visitors use several modes of transport.

Bicycling trips have proven a popular trend amongst some tourists in recent years, providing a new way for visitors to experience the New Zealand countryside.

International visitors

More than 1.1 million overseas visitors arrived in New Zealand in the year to 31 March 1993. Visitor arrival numbers grew by 8.7 percent in the year ended 31 March 1993, compared with 3.4 percent in the previous year. There has been a growing diversification of countries from which overseas visitors originate.

Table 12.5. NUMBERS OF INTERNATIONAL VISITORS

Year ended 31 MarchHolidayStay with friends and relativesBusinessOther*Total
*Includes conference/convention work or working holiday, formal education, stopover, and unspecified
1983257,910114,75958,07456,915487,658
1984285,845116,79361,25054,553518,441
1985341,984127,58668,26959,156596,995
1986404,036140,48174,66169,895689,073
1987441,081157,61976,08788,422763,209
1988455,834194,93288,215116,511855,492
1989439,249207,333100,224120,716867,522
1990464,545224,875109,110134,901933,431
1991491,591238,034103,899133,538967,062
1992519,274245,845106,238128,357999,714
1993593,415255,149114,183123,8101,086,557

Table 12.6. COUNTRY OF LAST PERMANENT RESIDENCE OF INTERNATIONAL VISITORS

 Year ended March
Country1990199119921993
Australia237,459343,299341,098361,995
United States136,946139,030134,710134,003
Japan100,348105,716125,226131,078
United Kingdom78,52887,96392,90096,809
Germany24,86532,17138,06451,279
Taiwan14,93911,04919,47331,622
Canada32,26833,54528,94125,978
Hong Kong16,09216,11419,35120,316
Singapore14,76715,25118,06719,277
Korea, Republic of3,4203,8128,69016,408
Switzerland9,91611,29811,96412,514
Thailand3,9165,9807,27111,253
Malaysia7,9539,7839,10111,011
Netherlands7,2927,6248,42810,134
Indonesia4,2904,8985,9178,787
Fiji7,4667,5127,3908,044
New Caledonia3,7614,4715,2447,297
Sweden8,3338,2887,9726,226
France3,9063,8294,7385,500
Tahiti (French Polynesia)3,7733,9975,0054,862
Austria2,1452,5673,1474,227

Domestic travel

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. During 1989-90, New Zealanders made 10.3 million trips away from home which included at least one night away, and spent 41.4 million person nights away.

Table 12.7. DOMESTIC TRAVEL DESTINATIONS

 Year ended March 1990Year ended March 1990
RegionProportionVisitorsProportionVisitors
Source: New Zealand Tourism Board.
 percentno. (000)percentno. (000)
Northland6.82,9098.23,423
Auckland13.45,72015.86,574
Thames Valley6.12,6124.71,982
Waikato5.32,2835.42,274
Bay of Plenty9.54,0517.43,094
East Cape1.87712.41,008
Tongariro4.21,8193.31,393
Taranaki2.91,2472.41,018
Wanganui2.81,2142.1884
Manawatu3.31,4213.01,247
Hawke's Bay4.61,9804.21,774
Wairarapa1.25421.0429
Horowhenua1.56462.0859
Wellington6.62,8056.22,596
Nelson Bays2.51,1103.51,487
Marlborough3.21,3701.8754
Canterbury9.44,0209.33,885
Aorangi2.41,0392.81,199
West Coast2.39832.3979
Coast/North Otago3.21,3853.81,604
Clutha/Central Otago4.51,9494.51,886
Southland1.98252.51,072

Promotion of tourism

New Zealand Tourism Board. The New Zealand Tourism Board's mission is to ensure that New Zealand is developed and marketed as a competitive tourism destination to maximise the long term benefits to New Zealand. The Tourism Board takes a leadership role in achieving industry unity, representing the tourism industry with government and in the market-place, and in encouraging the private sector to work together to maximise its efficiencies. The Tourism Board's operations are focussed on marketing activity in seven key regions of the world via offices in: Sydney, Brisbane, Melbourne, Singapore, Hong Kong, Taipei, Seoul, Tokyo, Osaka, Los Angeles, Vancouver, Chicago, New York, London and Frankfurt.

Ministry of Tourism. The ministry's principal role is to provide advice to government on policy issues relevant to the tourism sector. Other functions include representing the Government's tourism interests in interdepartmental and intergovernmental activities; managing the Tourism Facilities Development Grants programme; managing and reviewing Crown lands and Acts for which it has responsibility; and providing services, including information, for Parliament and the Minister of Tourism.

The ministry seeks to ensure policies which affect tourism are consistent and conducive to growth, foreign exchange earnings and job creation. At the same time, the ministry seeks to ensure that tourism is sustainable in the long term, by being sensitive to environmental and social needs.

New Zealand Tourism Industry Association. Established in 1953 as the New Zealand Travel & Holiday Association the functions of the association have evolved as the tourism industry has increased in economic importance in New Zealand. It serves as the united voice of all those enterprises involved in New Zealand's tourism industry. This ranges from the large corporate members through to the small one person services providers. There are many smaller association groups which represent individual product sectors within tourism but the New Zealand Tourism Industry Association provides an organisational framework to link those groups and the various regional tourism organisations involved in promoting their geographical areas.

Contributors

  • 12.1 Hillary Commission for Sport, Fitness and Leisure; New Zealand Amateur Arts Assembly; New Zealand Assembly for Sport; New Zealand Sports Foundation; Department of Conservation; Office of the Minister for Racing; Department of Internal Affairs; Lotteries Grants Board.

  • 12.2 New Zealand Tourism Board; Ministry of Tourism; New Zealand Tourism Industry Association.

Special articles

New Zealand Maori Arts and Craft Institute; Statistics New Zealand.

Further information

Recreation and sport

Freshwater Catch. Ministry of Agriculture and Fisheries (quarterly).

Life in New Zealand. Hillary Commission for Recreation and Sport, 1990.

Report of the Department of Internal Affairs (Parl paper G7).

Report of the Hillary Commission for Sport, Fitness and Leisure (Parl paper E32).

Report of the New Zealand Lottery Grants Board (Parl paper G7b).

Report of the Queen Elizabeth the Second National Trust (Parl paper C2).

Tourism

New Zealand Domestic Travel Study: Accommodation Report. New Zealand Tourism Board (annual).

New Zealand International Visitors Survey. New Zealand Tourism Board (annual).

Report of the New Zealand Tourism Board (Parl paper G25).

The Ministry of Tourism produces a range of publications related to tourism issues.

Chapter 13. Employment

Conquering an obstacle course wall, at a naval training scheme for unemployed youths.

13.1 Labour force

In general terms the labour force includes people aged 15 years and over who are either employed or unemployed. The main source of labour force data is Statistics New Zealand which collects information in three ways, through the:

  • Household Labour Force Survey (which produces quarterly estimates of labour market indicators, based on a sample of 16,000 households).

  • five-yearly Census of Population and Dwellings.

  • Quarterly Employment Survey (which counts the number of jobs in various industries).

Another source is the Department of Labour, which produces statistics on the number of job vacancies reported to it, people in subsidised work, and the number of people registered as wanting work with the New Zealand Employment Service.

Official definitions of the labour force have changed as new sources of statistics have been developed, as labour market conditions have changed, and as different sources have attempted to standardise their definitions.

The Household Labour Force Survey, in accordance with International Labour Organisation guidelines, includes part-time workers in the labour force. The definition of part-time work is ‘less than 30 hours per week’. These definitions also apply to statistics from the 1991 Census.

The 1991 Census and the Household Labour Force Survey definitions of the labour force include all those people who work for one hour or more per week for pay or profit (including unpaid family members working in a family enterprise) plus unemployed people who are available for and actively seeking work, and those who have a job to start within four weeks regardless of whether or not they were actively looking for work.

Table 13.1. The Labour Force

Quarter endedLabour forceNot in Labour forceWorking-age population*Labour-force participation rateUnemployment rate
EmployedUnemployed

*The civilian, non-institutionalised usually resident New Zealand population aged 15 and over.

Source: Household Labour Force Survey.

  (000)  percent 
Male      
1991—Jun818.195.6329.51,243.273.510.5
Sep807.7105.1333.51,246.373.211.5
Dec818.9106.6324.71,250.274.011.5
1992—Mar821.9106.2326.71,254.974.011.4
Jun821.497.8339.01,258.273.110.6
Sep812.699.5348.91,260.972.310.9
Dec827.499.4338.11,264.973.310.7
1993—Mar829.599.3338.41,267.173.310.7
Jun836.593.1341.31,271.073.110.0
Female      
1991—Jun644.467.5596.21,308.154.49.5
Sep638.567.5604.91,310.953.99.6
Dec644.266.5604.11,314.854.19.4
1992—Mar638.075.2605.71,318.854.110.5
Jun648.064.5609.01,321.553.99.1
Sep642.562.8618.51,323.853.38.9
Dec654.770.1603.01,327.854.69.7
1993—Mar645.569.1618.21,332.853.69.7
Jun650.066.0620.31,336.453.69.2
Total      
1991—Jun1,462.5163.1925.82,551.463.710.0
Sep1,446.2172.5938.42,557.263.310.7
Dec1,463.1173.2928.82,565.063.810.6
1992—Mar1,459.9181.4932.42,573.763.811.1
Jun1,469.4162.3948.02,579.763.39.9
Sep1,455.0162.3967.42,584.762.610.0
Dec1,482.1169.5941.12,592.763.710.3
1993—Mar1,475.168.4956.52,599.963.210.2
Jun1,486.5159.2961.72,607.363.19.7

New Zealand's labour force grew steadily from 914,712 persons at the 1961 Census to 1,608,612 persons at the 1986 Census—an increase of 693,900 or 75.9 percent during the 25 year period. However, during the 1986—1991 intercensal period the number of persons in the labour force dropped to 1,564,173, a decrease of 44,439 or 2.8 percent. This was despite a continuing increase in the number of persons aged both 15 and over (from 2,468,301 to 2,590,284) and in the more usual working ages of 15-59 (from 1,987,386 to 2,069,607).

Labour force growth and changes in labour force participation levels varied markedly for males and females between 1961 and 1991. There was an extremely high level of growth in the female labour force, from 240,134 persons at the 1961 Census to 678,390 at the 1991 Census, an increase of 438,256 or 182.5 percent. This growth, however, did slow to a more modest 1.3 percent in the 1986-1991 intercensal period. The size of the male labour force increased less markedly (by 39.1 percent) between 1961 and 1986, and decreased by a significant 5.6 percent in the 1986-1991 intercensal period.

In contrast to male labour force participation, which decreased slowly but steadily during the intercensal period 1961-1991, female labour force participation has increased rapidly. This has resulted in an obvious change in the sex distribution of the labour force. At the 1961 Census 73.7 percent of the labour force were male, but by the 1991 Census this figure had fallen to 56.6 percent.

There is a clear difference in male and female participation in the labour force. As the age specific labour force participation rate graph shows, at every age group male participation is higher than female participation, the difference being particularly marked in the main child-bearing ages (between 25 and 34). At 73 percent the overall labour force participation rate for males is almost 20 percentage points higher than that for females.

Table 13.2. Labour Force by Full Time and Part Time Status, 1988 and 1993*

 MaleFemale
 1988199319881993

*Household Labour Force Survey. Annual averages for the years ended March 1988 and 1993.

For unemployed persons full-time means seeking 30 or more hours of work per week and part-time means seeking fewer than 30 hours of work per week.

 (000)(000)
Full-time    
    Employed834.5739.6442.2416.7
    Unemployed†35.390.417.943.8
    Total869.8829.9460.0460.5
Part-time    
    Employed59.883.2214.0231.0
    Unemployed†3.98.612.422.8
    Total63.891.8226.4253.8
Total, full-and part-time labour force933.6921.7686.4714.3
Percent in labour force full-time93.290.067.064.5
Total, working-age population1202.41262.81258.01326.5
Participation rate (full-time)72.365.736.634.7
Participation rate (part-time)5.37.318.019.1

shows the male and female full- and part-time labour force in 1988 and 1993. Almost three times as many women as men are participating in the labour force on a part-time basis. The number of part-time workers of both sexes has increased in recent years, the number of males in the labour force part-time increasing by 39.1 percent between 1988 and 1993, with the number of female part-timers increasing by 7.9 percent. The definition of full-time includes all persons working 30 or more hours per week and all those persons who were unemployed and looking for more than 30 hours employment per week. Therefore, part-time includes those people working or unemployed and looking for 1-29 hours of work per week.

Women in the labour force

At every census since 1961, the difference between male and female labour force participation rates has decreased. As can be seen in the following graph, male participation rates have decreased at every census since 1961, with the largest decrease coming between 1986 and 1991. By comparison, female labour force participation rates increased between 1961 and 1986, while between 1986 and 1991 the participation rates declined but at a slower rate than that for males.

Increased participation in the labour force by women reflects their changing role in society. Women are now living in a more career oriented society than previously and, like men, work because of economic necessity. This is especially evident in the increases in the female labour force numbers, and is also consistent with later marriage, more childless marriages and changes in patterns of child rearing.

National Advisory Council on the Employment of Women (NACEW). The National Advisory Council on the Employment of Women is composed of a chairperson and 15 other members. The chairperson and seven council members are appointed by the Minister of Employment for their knowledge and experience in women's employment matters. The remaining eight members represent the major employee and employer organisations in the private and public sectors, the Department of Labour, Ministry of Education, Ministry of Women's Affairs and the Ministry of Youth Affairs.

The council's primary function is to advise the Minister of Employment on all matters relating to the employment of women. NACEW's priorities for 1993 were work on women and self-employment, women's access to industry training, and the position of women in the labour market since the Employment Contracts Act was introduced in May 1991.

A second function is to promote greater public knowledge and understanding of women's employment and its implications. In 1992-1993 NACEW made submissions on various health and safety in Employment regulations, to the Task Force on Private Provision for Retirement, and on the Human Rights Bill. The council's annual report and publications are also publicly available.

Thirdly, in co-operation with the Department of Labour, which provides secretarial assistance to NACEW, the council has published statistics and other material on women's employment issues; promoted research into the employment of women and related topics.

Over 1992-93 NACEW, in conjunction with the Department of Labour and the Ministry of Women's Affairs, undertook research into women's self-employment. This research project which analyses both statistical data and interviews with 48 self-employed women will be completed in 1993. The council is also working alongside the Industrial Relations Service of the Department of Labour in their review of the Parental Leave and Employment Protection Act 1987.

Full-time and part-time work

The population resident in New Zealand employed in the full-time labour force, i.e. working 30 hours or more per week, decreased from 1,278,192 at the 1986 Census to 1,151,199 at the 1991 Census, a decline of 126,993 or 9.9 percent. By contrast, the number of persons working 1-29 hours per week increased by 27,984 or 12.7 percent, to 249,201.

Between 1986 and 1991 the composition of the employed population changed quite dramatically in terms of both hours worked and the sex of those employed. As can be seen in there were large increases in the number of employed males in the part-time labour force for all the hours worked categories, especially the 1-4 hours category. Conversely, the number of males working full-time decreased by 12.7 percent in the intercensal period.

The female labour force showed less pronounced movements, with an increase of 9.4 percent in part-time numbers being more than offset by a decrease of 4.6 percent in women working in the full-time labour force.

Table 13.3. Hours of Work*

Hours worked per weekMalesFemales
1986 Census1991 CensusPercentage intercensal change1986 Census1991 CensusPercentage intercensal change

*Population resident in New Zealand and gainfully employed in the labour force.

Excludes persons unemployed and seeking work.

Part time labour force      
1- 42943463257.4106771289420.8
5- 9110341303818.2275193285619.4
10-1483401132235.8296883396614.4
15-197305856817.331518327393.9
20-24111181551939.644286480458.5
25-295613771337.426175279126.6
Not specified2640-2352-- 
Total, part time489966078624.11722211884159.4
Full time labour force      
30-34179912195422.039405425137.9
35-395901645117-23.68768180838-7.8
40-44367122308967-15.8210045194010-7.6
45-49124854106866-14.4300213471315.6
50-549911498277-0.8189032501432.3
55-593607834968-3.17065875423.9
60-6452470563617.496781247128.9
65-6912567131975.02037280837.8
70-7418414202119.84002486921.7
75 or more2859328365-0.89972109299.6
Not specified25110--18054--
Total, full time841329734283-12.7436863416916-4.6
Total890325795069-10.7609084605334-0.6

Hours of work. Data regarding the number of hours of work in each week are presently collected by Statistics New Zealand from two sources:

  • The Household Labour Force Survey (HLFS) which asks respondents for the number of hours they usually work, the number of hours actually worked in the survey reference week and where the usual and actual hours differ, the reason for any difference.

  • The Quarterly Employment Survey which asks enterprises for the details of the number of paid ordinary and overtime hours worked in the week preceding the 20th of the month.

Given the shift from full- to part-time hours of work highlighted, a decrease would have been expected in the length of the average work week, but shows that this is not the case. Average total weekly hours have remained at approximately 39 paid hours per week, since 1987.

However, a shift in the composition of these hours has occurred over the last three years. The average number of ordinary time hours worked has increased from 36.66 hours per week in 1988 to 37.39 hours per week in 1993. Conversely, the number of overtime hours worked in the average week has decreased by 0.39 of an hour over the same period. This may be the result of recent changes in the terms of employment contracts extending the number of hours defined as ‘ordinary time’.

Table 13.4. Average Weekly Hours Paid for, 1987-1993*

Year as at FebruaryTotal hours paid for
MalesFemalesTotal
Ordinary timeOver-timeTotalOrdinary timeOver-timeTotalOrdinary timeOver-timeTotal

*Quarterly Employment Survey.

Average ordinary time and total paid hours are averages for full-time equivalent employees. The number of overtime hours paid for is averaged over the number of full-time employees only, it is assumed only full-time employees work overtime. For this reason average weekly total hours paid for is not the sum of average weekly ordinary time hours and average weekly overtime hours paid for.

198737.303.1040.3035.901.4037.1036.702.5039.00
198837.203.0040.0035.801.3036.9036.662.3038.70
198937.563.0140.4335.971.4137.1236.882.3939.01
199037.423.1840.4335.791.4836.9736.712.5138.91
199137.492.7440.0835.851.2936.8736.762.1638.66
199237.852.5340.2336.141.0736.9837.081.9438.77
199338.242.5540.6236.360.9837.1137.391.9139.04

Employment status

As would be expected wage and salary earners account for the majority of employed persons. Data from the HLFS indicate that during the year ended March 1993. 78 percent of employed persons were wage and salary earners. Those persons who were self-employed and did not employ others made up the next largest category, approximately 12 percent of employed persons.

Males dominate among those who are self-employed and those who employ others. shows that in 1993 over 70 percent of persons in these categories were male. Similarly females dominate amongst those working unpaid in a family business. Women made up 67.7 percent of these people.

The restructuring of the New Zealand economy during the mid-late 1980s coupled with the economic recession of 1990-91 have seen shifts in status in employment. The total number of employed persons has decreased by 80,100 or 5.2 percent in the last five years. The main contributor to this has been a decrease of 8.6 percent or 108,600 in the number of wage and salary earners. This has been offset by increases in the number of New Zealanders in self-employment (19,000 or 12.1 percent) or employing others (3,800 or 3.3 percent).

Forty years a projectionist.

Table 13.5. Status in Employment, 1988 and 1993*

StatusMalesFemales
19881993Percentage change19881993Percentage change

*Household Labour Force Survey. Annual averages for the years ended March 1988 and 1993.

 (000) (000) 
Wage and salary earners689.8602.6-12.6570.8549.6-3.7
Employer86.687.10.630.133.411.0
Self-employed not employing others111.1124.211.845.451.313.0
Unpaid in family business3.05.480.07.011.361.4
Not specified3.83.4-10.52.82.0-28.6
            Total894.3822.7-8.0656.2647.7-1.3

Industrial structure of the labour force

shows the distribution of employed persons by industry during 1993. The industries presented here are grouped into major divisions consistent with the New Zealand Standard Industrial Classification (NZSIC). The largest number of the employed are engaged in the ‘community, social and personal services’ division (28.4 percent), followed by the ‘wholesale, retail, restaurants and hotels’ division (21.3 percent) and the ‘manufacturing’ division (16.5 percent). The divisions employing the fewest people are the ‘mining and quarrying’ and the ‘electricity, gas and water’ divisions each employing less than 1 percent of employed persons.

Over 60 percent of female employment is concentrated in two industrial divisions, the ‘community, social and personal services’ (39.8 percent) and ‘wholesale, retail, restaurants and hotels’ (23.6 percent).

Over the last five years the industrial structure of New Zealand employment has shown a continuation of the long-term shift in employment away from primary (agriculture, hunting, fishing and forestry) and secondary industries (mining, quarrying, building and construction, manufacturing, transport and communications) into the services sector (wholesale and retail trade, restaurant and hotels, finance, insurance and real estate, and community, social and personal services).

As the following graph shows, the percentage of males employed full-time in agriculture and the other primary industries fell from 19.8 percent in 1956 to 12.4 percent in 1991. The percentage of males involved in manufacturing, mining and quarrying, electricity, gas and water, and building all fell between 1956 and 1991. In the services sector finance, insurance and real estate registered the largest increase in full-time male employment (from 2.1 percent to 10.4 percent). Similarly the percentage of full-time male employment in community, social and personal services, wholesale and retail trade all increased.

Female employment shows a different pattern, however. Full-time female unemployment appears to have shifted from manufacturing and community, social and personal services into business and financial services, insurance and property.

Table 13.6. Employed Persons by Industry, 1993*

    Percentage distribution
Major divisionMaleFemaleTotalMaleFemaleTotal

*Household Labour Force Survey. Annual average for the year ended March 1993.

Based on adequately defined cases only.

  (000)    
Agriculture, hunting, fishing and forestry108.548.5157.013.27.510.7
Mining and quarrying3.1-3.50.4-0.2
Manufacturing168.473.6242.020.511.416.5
Electricity, gas and water9.02.011.01.10.30.7
Construction71.58.079.68.71.25.4
Wholesale, retail, restaurants and hotels160.0152.5312.519.523.621.3
Transport, storage and communications62.227.389.57.64.26.1
Business and financial services79.176.9155.99.611.910.6
Community, social and personal services159.8257.8417.619.439.828.4
Not adequately defined--1.9   
            Total822.7647.71470.4100.0100.0100.0

Occupational structure of the labour force

Statistics New Zealand classifies occupations into nine major groups for the purposes of statistical collection and reporting. The system used for classifying occupations into major groups is the 1990 New Zealand Standard Classification of Occupations (NZSCO 90).

suggests that New Zealanders are relatively evenly spread amongst the differing occupations. The largest occupational group is ‘clerical workers’, with 14.1 percent of employed persons being engaged in this occupation. The smallest occupational group are engaged in ‘elementary occupations’ (6.7 percent).

Table 13.7. Employed Persons by Occupation and Gender, 1993*.

    Percentage distribution
Major occupational groupsMaleFemaleTotalMaleFemaleTotal

*Household Labour Force Survey. Annual average for the year ended March 1993.

Percentage calculations are based on adequately defined cases only.

Legislators, administrators and managers134.859.8194.616.49.213.2
Professionals82.898.5181.310.115.212.3
Technicians and associate professionals87.674.1161.610.711.411.0
Clerks45.1161.6206.75.525.014.1
Service and sales workers65.1126.1191.27.919.513.0
Agriculture and fishery workers108.645.2153.813.27.010.5
Trades workers130.49.4139.715.91.59.5
Plant and machine operators and assemblers107.235.0142.213.05.49.7
Elementary occupations60.737.698.37.45.86.7
Not adequately defined   
            Total822.7647.71470.4100.0100.0100.0

Significant differences emerge in occupational distribution when the number of employed is separated by gender. Men are quite evenly distributed among the occupational groups. The largest occupational group for males is the ‘legislators, administrators and managers group’, approximately one in six males are involved in these occupations (16.4 percent). Not far behind this group is the ‘trades workers’ group, in which 15.9 percent of males are employed.

Women tend to be concentrated in a much smaller number of occupations. A quarter of employed females are employed as ‘clerks’, with a further 19.5 percent employed as ‘service or sales workers’. The smallest occupational group for females are ‘trades workers’, this group accounts for 1.5 percent of female employment.

There is still a large degree of occupational segregation in the New Zealand labour force, i.e. so-called ‘male’ and ‘female’ occupations still exist. Males are over-represented in the trades, machine operators, agriculture and fisheries workers, and in legislators, administrators and managers groups. In contrast females are over-represented in the clerical and service/sales occupations.

NZSCO was extensively revised during 1990. This revision makes it impossible to compare changes in most occupational groups before and after 1990.

13.2 Unemployment

There are three main sources of unemployment data in New Zealand:

  • The Statistics New Zealand Household Labour Force Survey (HLFS).

  • The Statistics New Zealand five-yearly Census of Population and Dwellings.

  • The Department of Labour job seeker register.

These measures differ from each other in their scope, collection methods and the way they define unemployment.

The 1991 Census counts people as unemployed if, on census night, they were without paid employment and were available for and actively seeking paid employment. ‘Active’ job search requires that a person do more than look through job advertisements in newspapers. The HLFS definition of unemployment is similar to that used by the 1991 Census but also includes people who have a job arranged to start within four weeks, regardless of whether or not they were actively seeking work. This is based on the International Labour Organisation definition of unemployment, used in many countries.

The Department of Labour's measure of ‘registered unemployed’ is a count of all those who are unemployed, seeking full-time work and who have registered with the New Zealand Employment Service. Registration is open to all job-seekers but is required of those receiving the unemployment benefit. The Department of Labour releases monthly updates of registered unemployment data.

Definitional differences mean that persons counted as ‘unemployed’ by one measure may be excluded by another. For instance, a person on the Employment Service Register may have a temporary job working a few hours each week and would therefore be counted as ‘employed’ by the HLFS. Similarly, some persons without work may choose not to register with the Employment Service but could be counted in the HLFS definition of unemployment.

A major disadvantage of the population census as an indicator of the trends in unemployment is that it provides data at five yearly intervals only. In addition, unemployment figures in successive censuses are not strictly comparable because of changes in definitions of full- and part-time labour forces, and the working-age population. Short term trends are measured in the HLFS but the series did not begin until 1986. The dramatic increase in unemployment since the mid-1970s (and especially since 1985) is illustrated in the graph below.

Demographic and social characteristics of the unemployed

In the year ended March 1993, 165,600 persons were counted by the HLFS as being unemployed. This is equivalent to 10.1 percent of the total labour force. The unemployment rate for males was higher than that for females, at 10.7 percent and 9.4 percent respectively. The variation in unemployment rates is even wider when other social and demographic characteristics are taken into account.

shows the distribution of the unemployed by educational attainment. The unemployment rate is highest among those people with no educational qualifications (15.8 percent) and lowest for those people with both school and post-school qualifications.

Table 13.8. Unemployed Persons by Educational Attainment, 1993*

Educational attainmentNumber of unemployedUnemployment rate
MaleFemaleTotalMaleFemaleTotal

*Household Labour Force Survey. Annual average for the year ended March 1993.

    (000)  percent 
No qualifications42.125.767.817.014.315.8
School qualification22.218.240.310.88.69.6
Post school but no school qualification11.35.416.79.811.210.2
Post school and school qualification22.216.638.86.56.26.4
Not specified------
            Total99.066.6165.610.79.410.1

The number of unemployed is concentrated in the younger age groups. As can be seen in , more than half the number of unemployed are aged 29 or younger, whereas there are fewer than 1,000 unemployed persons aged 60 or over. As the graph ‘unemployment by age’ shows, the rate of unemployment for 15-19 year-olds is more than twice as high as the overall rate of unemployment. Similarly, the unemployment rate for 20-24 year-olds is significantly higher than the overall rate.

Table 13.9. Unemployed Persons by Age, 1993*

AgeNumber of unemployedUnemployment rate
MaleFemaleTotalMaleFemaleTotal

*Household Labour Force Survey. Annual average for the year ended March 1993.

  (000)  percent 
15-1916.813.830.623.221.222.2
20-2421.012.633.618.012.615.6
25-2913.59.022.511.510.611.2
30-3412.68.921.610.29.710.0
35-3910.16.716.88.87.28.0
40-447.15.712.86.46.26.3
45-496.33.910.16.64.85.8
50-545.53.79.27.46.77.0
55-595.02.17.19.26.07.9
60-64------
65 and over------
            Total99.066.6165.610.79.410.1

Unemployment rates for Maori and Pacific Islanders are more than three times than those for Europeans. shows that the unemployment rates for Pacific Islanders, New Zealand Maori and Europeans are 25.1 percent, 24.4 percent and 7.9 percent respectively.

Table 13.10. Unemployed Persons by Ethnicity, 1993*

Ethnic groupNumber unemployedUnemployment rate
MaleFemaleTotalMaleFemaleTotal

*Household Labour Force Survey. Annual average for the year ended March 1993.

  (000)  percent 
European/pakeha64.044.9108.98.27.47.9
New Zealand Maori20.613.434.026.721.624.4
Pacific Island group9.65.915.527.222.225.1
Other4.62.47.116.811.314.4
Not specified------
            Total99.066.6165.610.79.410.1

Employment Service job centre.

Duration of unemployment

The average duration of unemployment (the length of time people are unemployed) has increased steadily in recent years.

This increase in duration is due largely to a significant increase in the proportion of the unemployed who were ‘long-term unemployed’. For the purposes of the HLFS ‘long-term unemployment’ is defined as a period of unemployment lasting more than 26 weeks. The long-term unemployed accounted for 19.1 percent of total unemployment during 1987, but by 1993 they accounted for half (50 percent) of the total unemployed.

Table 13.11. Persons Unemployed, by Duration of Unemployment and Sex.*

Average for the year ended March1-45-89-1314-2627-5253 weeks and overNot specifiedTotal

*Household Labour Force Survey.

    (000)    
Males        
19876.33.93.55.14.32.77.533.3
19887.45.03.35.85.84.17.839.2
19898.67.66.88.210.88.07.257.1
19909.47.26.210.011.812.68.465.6
199111.68.27.613.713.918.17.280.3
199212.09.18.416.822.028.36.7103.4
19939.87.47.014.418.635.06.999.0
Females        
19878.03.62.73.93.31.97.330.7
19887.44.12.93.63.81.86.630.2
19898.65.24.85.65.83.97.040.8
199010.25.95.66.56.85.56.346.8
199111.37.05.98.28.48.16.555.4
199211.47.87.211.412.712.75.869.2
19939.76.47.49.912.616.56.166.6
Total        
198714.27.56.29.07.64.614.864.0
198814.89.16.29.49.65.914.569.5
198917.212.911.613.816.511.914.198.0
199019.613.211.816.518.718.014.7112.4
199122.815.313.421.922.226.213.7135.7
199223.416.915.628.334.841.012.5172.6
199319.513.812.424.231.351.413.0165.6

13.3 Training and employment assistance

Vocational training in New Zealand is increasingly becoming part of the education sector and recent government initiatives have tended to strengthen the links in this area.

The Education and Training Support Agency has taken over responsibility for the ACCESS training scheme, the apprenticeship system and other aspects of vocational training from the Department of Labour. The Career Development and Transition Education Service has assumed the activities of the former Department of Education and the Department of Labour in this field.

Government provides training and employment programmes aimed at the long-term unemployed, particularly those who are most disadvantaged in the labour market. This includes the ACCESS scheme and other initiatives, such as community work schemes, organised in co-operation with other agencies. The New Zealand Employment Service, a division of the Department of Labour, administers a number of schemes, in addition to providing an employment service.

Education and Training Support Agency

The Education and Training Support Agency was established by the Education Amendment Act 1990. It reports directly to the Minister of Education through its board. The agency's purpose is to advance a range of training options for its customers, who include employers, industry training organisations, training providers and trainees. With 16 regional offices and associated sub-offices, the agency has an extensive regional structure, as well as a national office based in Wellington.

The Education and Training Support Agency's mission is: ‘Skills Development for Work’, reflecting a commitment to raising the skill level of New Zealand. The programmes administered by the agency fall under the Skill New Zealand umbrella. Skills development is essential for economic growth and the ability to compete on the international market. Equipping New Zealanders with tomorrow's skills improves not just individual job prospects, but the economic prospects of the nation.

The agency is committed to providing equal opportunity to training, and has a special focus on those who have not been well served by traditional educational institutions. The agency works closely with its customers to understand their needs and develop solutions from a range of services. The agency has also developed a close working relationship with the New Zealand Qualifications Authority, so that all training will be carried out to nationally recognised standards. As units of learning are progressively developed by the Qualifications Authority, training organised by the agency will be recognised in the National Qualifications Framework, ensuring its high quality.

The Education and Training Support Agency is responsible for the Industry Training Strategy; Skill Start; the Training Opportunities Programme; Skill Pathways; and Maori Vocational Training. Some apprenticeships and primary industry cadetships are also administered by the agency.

Skill New Zealand. Skill New Zealand is designed to increase the relevance, and overall amount of industry training in New Zealand. The agency promotes training which is industry driven and reflects the needs of trainees.

Skill New Zealand aims to:

  • Extend systematic training to industries and occupations which do not currently have formal training systems.

  • Ensure that existing industry training arrangements can be developed to meet future needs.

  • Provide for training to national industry standards which will be recognised in the national qualifications framework.

Under the Industry Training Act 1992, industry is progressively taking over responsibility for developing, implementing and administering its own training.

Industry Training Organisations—the agency's board is responsible for recognising and supporting Industry Training Organisations (ITOs). The agency assists ITOs to develop and establish systematic training arrangements. ITOs are established by particular industries or groups of industries and are responsible for:

  • Setting national skill standards for their industry.

  • Developing training packages for employers in their industry.

  • Arranging for delivery of training on- and off-job.

  • Deciding how to monitor training standards and the assessment of trainees.

Participant in ACCESS-funded home maintenance course.

Apprenticeship training and primary industry cadet schemes—responsibility for apprenticeship training and primary industry cadetship training is progressively being transferred to the ITOs, as they are established and developed. The agency continues to administer those apprenticeships and cadetships which are yet to be transferred. Each industry continues to set its own training requirements. Instead of an apprenticeship contract, new apprentices have an employment contract under the Employment Contracts Act, and a training agreement.

Skill Start—Skill Start aims to encourage employers to recruit young trainees for systematic on-job vocational education. Incentive payments are available to employers for recruitment of trainees in the target group. As ITOs take over responsibility for apprenticeships and other vocational education in their industry they also take over responsibility for administering the Skill Start payments.

Training Opportunities. Training Opportunities provides access to education and training for people who have low or no qualifications or limited skills. It is targeted particularly towards young people, and people who have been unemployed for six months or more.

The programme is fully funded for targeted trainees. The agency contracts with a variety of training providers for courses which meet a variety of skill needs, including work-based training options. Outcomes sought from the programme are:

  • The acquisition of, or credit towards nationally recognised qualifications (as units of learning leading to national qualifications are developed).

  • Further education and training, or employment.

Skill Pathways. The principal objective of the Skill Pathways initiative is the design and promotion of a variety of vocational education and training pathways for young people. Skill Pathways uses a mix of on- and off-job vocational education and training which is linked to the National Qualifications Framework by way of unit standards.

Three principals pathways are being funded, initially on a two year transitional basis. School-based pathways enable school students to attain vocational or technical units involving some on-job learning; similar pathways are available for students in Polytechnics or Private Training Establishments; and employment-based pathways enable entry level vocational education and training to be conducted on a systematic and verifiable basis.

Maori Vocational Training. Maori Vocational Training runs parallel to Skill Pathways. It provides vocational education from a range of providers for young Maori and Pacific Island people, in both institutional and work-based settings.

Table 13.12. Apprenticeship Contracts in Selected Industries*

IndustryContracts begun during yearCompleted during yearTotal in force

*Year ending 30 June 1993.

Source: Education and Training Support Agency.

Carpentry4123911433
Electrical2403511091
Mechanical engineering290492931
Hairdressing5084731655
Motor3175381754
Plumbing and gas-fitting108117389
Printing94150280

The Careers Service

The Careers Service, formerly known as Quest Rapuara, the Career Development and Transition Education Service, is a careers advice and information service which helps people choose the work, education and training that suits them and which promotes the development of education programmes which will help meet their future needs.

A Crown entity, the Careers Service was established in July 1990. It is directly responsible to the Minister of Education who appoints a board to oversee its work. The Careers Service contracts with the Minister of Education to deliver a range of services to agreed consumers through a document of accountability signed between the minister and the board. Being partly funded by the Crown, the document of accountability also allows the negotiation of contracts with other organisations, both public and private.

The Careers Service is the leading provider of careers guidance, information and advice to New Zealanders. Its principal services are:

  • Career information: it researches, produces and distributes occupational, training and labour market information packaged in a variety of ways: career database, leaflets, books, posters, kits and videos. The Quest Database has been available to the public since February 1991. It contains detailed descriptions of approximately 550 jobs and over 3,000 courses. The database is available to the public in each of the Careers Service 21 offices. In addition the Database has been purchased by tertiary institutions, libraries, prisons, embassies, New Zealand Qualifications Authority, New Zealand Employment Service, Education and Training Support Agency, Workbridge, ACCESS providers and over 390 secondary schools.

  • Interpretation: it helps trainers and educators run effective career development and transition education programmes.

  • Career counselling and advice: it provides career counselling services which are culturally appropriate and gender inclusive to groups identified by the minister.

  • The Link Programme: it administers this programme which helps students prepare for the transition from school to post-school education and training and in experiencing exposure to tertiary education while still at school.

  • Manaaki Programmes: it administers the Manaaki Tauira and Manaaki Akongarua programmes which are designed to improve Maori participation rates in tertiary and senior secondary education.

The Careers Service has an infrastructure of five regions and 21 offices offering nationwide service.

Employment assistance measures

New Zealand Employment Service. The Employment Service (NZES) of the Department of Labour was established in 1988 to provide a nationwide employment placement service through 70 employment centres. The service aims to assist all New Zealanders who are unemployed and seeking work by providing:

  • Quality nationwide placement services to employers and job seekers.

  • Programmes that help people increase their opportunities for employment.

  • Work opportunities for communities.

  • Information and advice on the employment market.

NZES strives to provide quality service to employers by filling vacancies as quickly as possible. As well as placing job seekers into work, NZES also has a range of programmes and products which help job seekers towards the long-term aim of employment.

Job Plus—helps long-term job seekers into permanent full-time employment through partial subsidies to employers for a limited time (usually about six months). Eligible job seekers must be enrolled with the service for more than six months. The subsidy level is negotiated by the NZES centre with the employer for each individual job seeker.

Enterprise Allowance—helps job seekers into self-employment by providing an income during the initial stage of establishing their business. Eligible job seekers must be enrolled with the service for at least 15 weeks, and most Enterprise Allowance clients are in fact enrolled for more than six months. The actual rate of the allowance is negotiated with each individual job seeker. Job seekers may also be eligible for a business training and advice grant of up to $600. A small-scale pilot scheme is also being run which allows clients in selected areas to capitalise a portion of their Enterprise Allowance up to a maximum of $5,000. Clients must meet the normal Enterprise Allowance criteria, complete a ‘Be Your Own Boss’ training course, have a minimum of $1,000 equity in the business and have exhausted other forms of funding.

Community Taskforce—a work experience programme for job seekers who have been enrolled for more than three months. It aims to provide job seekers with skills to improve their chances of finding work. It also enables organisations to get projects which benefit the community off the ground. Sponsors provide three days work experience a week for up to six months while participants continue to receive a benefit and are paid an additional $15 per week to cover costs.

Taskforce Green—a programme which provides project-based work to job seekers who have been enrolled with the service for more than six months. Employers are paid a partial wage subsidy while employees receive a wage negotiated with the employer. The programme is open to both public and private sector employers for projects of benefit to the environment and the community.

Job Clubs, Job Wise and Job Search Seminars—help job seekers enrolled with the service to improve their job seeking skills. Job Clubs are run over two weeks and teach job seekers a complete range of job search, interview and cold-calling skills. Job Search Seminars are intensive one day sessions on job search techniques. Job Wise is a special programme to assist long-term job seekers to improve their motivation and job search skills.

Wahine Ahuru/Turning Point—a programme to help women who are returning to paid work. The programme runs mornings only over two weeks and teaches confidence, motivation and the skills needed to track down the right job or training.

Modification Grants—help employers to recruit people with disabilities by funding modifications to the workplace, equipment or access to enable the person to work to his or her ability.

Possum products created by workers on ACCESS scheme.

Employment and training for Maori and Pacific Island Polynesians. Maori input to government employment and training policies is co-ordinated by the Ministry of Maori Development (see also section 5.4).

Assistance is provided to Maori and Pacific Island students participating in pre-apprenticeship and vocational courses. On the completion of courses, efforts are made to place students in full-time employment. Support is also provided to Maori students undertaking university studies. Maori and Pacific Island youth are also placed directly with employers for a period of training. Wages are subsidised for one year, after which the trainee is taken onto the employer's staff or is found similar work with another firm.

Funding allocated by the government to the ACCESS programme is delivered through a network of tribal and regional authorities.

MANA Ennterprises—this programme is designed to provide grant funding to an iwi collective with a commercially viable proposal. It is not intended that MANA fund individuals or be the sole provider of funds, but to provide a level of financial assistance so as to attract other joint venture partners or financiers.

Community Employment Group. The Community Employment Group (CEG) is a catalyst for a wide range of community employment initiatives. The group helps communities identify resources to encourage local economic development, overcome barriers to employment and create job opportunities. A self-help approach is encouraged to ensure the success and viability of each initiative. A nationwide network of community employment advisers work on initiatives which range from assistance for small business to projects working with groups of people severely disadvantaged in the labour market.

The group has supported the network of services for mature unemployed and the national growth of volunteer centres. It has worked successfully in partnership with local organisations creating work opportunities with sports clubs, local authorities, church organisations, Maori and Pacific Island groups, enterprise agencies and employment resource centres. At risk groups are also helped to develop projects which generate jobs and move people towards employment.

The group helps identify enterprise opportunities and helps ensure services such as enterprise skills training and mentoring are available to assist unemployed and non-business wise people into self-employment. It contracts for programmes such as ‘Be Your Own Boss’, an integrated package of business skills training and support, and has supported two successful models of small business assistance—Business Grow which expands job opportunities in small business and Company Rebuilders which saves jobs through assisting businesses in difficulty. Both models are spreading nationally.

It is also working alongside a number of communities involved in economic renewal programmes. These communities are developing their main streets and investigating opportunities for jobs in a variety of areas including tourism and heritage trails. Five Community Employment Mobile Information Services bring information about employment, training and services offered by the group to remote rural areas. Part-funding is available to help communities identify, maintain and develop work opportunities.

The Community Employment Group is a service of the Department of Labour.

13.4 Pay and incomes

Personal income

Personal income information from the 1991 Census of Population and Dwellings shows significant income disparities between males and females. Table 12.11 relates the median personal incomes of males and females in the labour force to their employment status, and shows that for all employment status categories the income for males is higher than that of their female counterparts. The disparity is greatest, in dollar terms, among persons who are employers of others in their own business, where the male median income exceeds the female median income by $11,334.

Table 13.13. Median Incomes by Employment Status, 1991 Census*

Employment statusMedian Incomes ($)
MaleFemaleTotal

*Population resident in New Zealand aged 15 years and over.

Wage or salary earner26,74518,01122,574
Self employed and not employing others22,38914,63420,283
Employer of others in own business32,82221,48829,303
Unpaid worker in family business9,2176,7697,871
Unemployed and actively seeking work7,4467,1187,330
Not specified21,19314,27217,998
            Total, labour force24,67316,27720,864

Income disparities are also present in the broad work status statistics shown in . The larger income differential in the total labour force, relative to the full time and part time labour forces, is due to the larger proportion of females in the part time labour force.

Median income disparities within the full-time and part-time labour forces are mainly the result of the different occupational and industry mixes of females and males.

Table 13.14. Median Incomes by Work Status 1991 Census*

Work statusMedian Incomes ($)
MaleFemaleTotal

*Population resident in New Zealand aged 15 years and over.

Persons working 30 or more hours a week, plus persons unemployed and actively seeking full-time work.

Persons working 1-29 hours, plus persons unemployed and actively seeking part-time work.

Full-time in labour force†25,72120,20223,479
Part-time in labour force‡10,4839,1199,355
Non labour force8,9718,8408,890
            Total19,24311,27814,142

Office workers processing calls at the Department of Social Welfare.

Earnings

Apart from the five-yearly Census of Population and Dwellings, the other source of information on earnings is the Quarterly Employment Survey. The Quarterly Employment Survey covers all businesses with more than two ‘full-time equivalent’ employees (excluding working proprietors). Information is collected for the payweek ended immediately on or before the 20th of the middle month of the quarter and is deemed to apply to the mid-point of the month concerned.

Industries excluded from the survey are: agriculture and agricultural contracting, fishing, hunting and trapping, seagoing work, domestic services in households, the armed forces and the owning and leasing of real estate.

The average weekly levels of ordinary time and overtime earnings are shown in . Average weekly total earnings and average weekly ordinary time earnings have increased in recent quarters.

Table 13.15. Average Weekly Earnings*

Date of surveyAverage weekly earnings
Ordinary TimeOvertimeTotal

*Quarterly Employment Survey.

Includes allowances and special payments (bonuses, penal and shift allowances, paid leave and commission) earned in the payweek. Payments not earned in the payweek (eg back pay, redundancy and severance pay) and non-taxable payments, such as tool money, are excluded.

Average ordinary time and total weekly earnings are averages for full-time equivalent employees. Overtime weekly earnings are averaged over full-time employees only as it is assumed that only full-time employees work overtime. For this reason, average total weekly earnings do not equal the sum of average ordinary time and overtime earnings.

  $ 
1990—Aug515.1633.41548.57
                    Nov521.2536.23557.48
1991—Feb529.4034.07563.47
                    May531.7836.17563.22
                    Aug537.8831.66565.24
                    Nov541.4035.84572.34
1992—Feb549.4435.16579.99
                    May550.9433.68580.00
                    Aug549.4030.07575.19
                    Nov554.7834.68584.42
1993—Feb555.7234.27585.31
                    May556.0032.29583.62

Persons employed in the central government sector are paid, on average, more than those in other sectors. shows average ordinary time hourly and weekly earnings in the private, central government trading, central government non-trading, local government trading and local government non-trading sectors. In both the central government trading and central government non-trading sectors the average ordinary time weekly wage is over $640 per week as compared with an average weekly wage of $524 in the private sector. The weekly wage for local government lies between that for the central government and private sectors.

Table 13.16. Average Ordinary Time Hourly and Weekly Earnings, February 1993*

 PrivateCentral government tradingCentral government non-tradingLocal government tradingLocal government non-tradingAll sectors

*Quarterly Employment Survey.

   $   
Hourly earnings—      
    Male15.3817.9619.7416.2716.1516.20
    Female12.1614.5115.1112.5314.2913.15
    Total14.0916.8516.9415.5415.5214.86
Weekly earnings—      
    Male587.13701.08756.57637.22611.88619.40
    Female436.49527.42565.57454.36511.97478.01
    Total524.44642.46640.20599.42576.81555.72

Real disposable income

Real disposable income indexes and related series measure the impact of changes in incomes, taxation and consumer prices on the purchasing power of selected groups of individuals and of households within the New Zealand population. They are therefore important economic indicators.

The real disposable income series are produced by Statistics New Zealand. Information on individual incomes and other tax-related characteristics (eg, number of dependent children) is obtained from a representative sample of New Zealand private households who have participated in the department's Household Expenditure and Income Survey.

To calculate the series for any particular quarter, incomes from all sources, government benefits and tax-related expenditures are projected to equivalent current levels and the appropriate tax scales, rebates and exemptions are applied to estimate and deduct income tax liability. The net incomes are then adjusted for inflation as measured by the Consumers Price Index (CPI), to produce a measure of changes in the purchasing power of the group concerned over time.

In addition to the overall real disposable income series, the following component series are published:

Average gross income indexes—measuring the changing level of gross income from all sources.

Average tax rates—expressing total personal income tax liability as a percentage of total gross income.

These series are calculated for individual full-time wage and salary earners (defined as persons working at least 30 hours per week for wages and/or salaries as the principal source of income). Series are also calculated for the households of full-time wage and salary earners and for national superannuation payments.

For individual full-time wage and salary earners only, separate series are produced for the highest 20 percent of earners, the second highest 20 percent and so on down to the lowest 20 percent. Only series for the highest, middle and lowest income groups are shown in the following tables and graph. The estimated annual gross income ranges for the June 1993 quarter are specified below:

Highest 20 percent$41,100 and over
Second highest 20 percent$32,400 and under $41,100
Middle 20 percent$25,100 and under $32,400
Second lowest 20 percent$18,400 and under $25,100
Lowest 20 percentunder $18,400

The income ranges relating to the five income groups vary from quarter to quarter. The individuals falling into each group may also change due to differing wage increases between industries and, occasionally, due to changes in government benefit schemes.

Trends in the Real Disposable Income Indexes for full-time wage and salary earners are illustrated in the accompanying graph and some significant economic events, which influenced the results, are marked.

It should be noted that from the June 1990 quarter Family Support for two-parent families is paid to the primary caregiver, whereas previously it was divided between both parents. As a significant proportion of spouses receiving Family Support are not full-time wage and salary earners, the series do not reflect the full impact of the scheme on families.

Similarly, because most recipients of Social Welfare benefits are not full-time wage and salary earners, the real disposable income series do not fully reflect policy changes, such as the reduction of benefit payments which was applicable from April 1991. The introduction of the ACC levy on 1 April 1992 impacts on the series for the June 1992 quarter. Changes in the National Superannuation surcharge, benefit rates and student allowances at the same time have a much less significant effect on the full-time wage and salary earner series.

It should be noted that the relevance and reliability of the real disposable income series has been called into question in the current economic environment. These statistics should therefore be interpreted with caution.

The Real Disposable Income Indexes were designed at a time when centrally-negotiated wage settlements were the norm, inflation was rising rapidly and changes from direct to indirect taxation were being considered. During this period of highly-regulated and relatively stable economic activity, the series reflected the interaction of such factors on the well-being of full-time wage and salary earners and their households.

Several shortcomings have emerged as the role of government has altered and the economy has been restructured. The real disposable income model uses industry-based income indicators and therefore cannot quantify the effects of the localised wage-fixing arrangements being made under the Employment Contracts Act. There is increasing emphasis on workplace settlements and individual contracts and on wage differentials for varying occupations and skill levels.

The coverage of the main real disposable income series, namely full-time wage and salary earners, is now less representative of the New Zealand population as a whole than when it was developed. Levels of part-time employment and unemployment have increased significantly in the deregulated economy, but the Real Disposable Income Indexes cannot reflect the experience of those who move out of work or to lower-paid or part-time positions.

User-pays policies, which are a feature of life in New Zealand today, impact differentially on different income groups. However, the Consumers Price Index is based on the average expenditure pattern of all New Zealanders. By using the CPI as a measure of purchasing power in the calculation of real disposable income, the impact of health-user charges on full-time wage and salary earners is not fully addressed.

Table 13.17. Real Disposable Income Indexes and Related Measures for Full-Time Wage and Salary Earners*

Calendar quarterLowest 20 percentMiddle 20 percentHighest 20 percentAll full time wage and salary earners
Index numberPercentage change from same quarter previous yearIndex numberPercentage change from same quarter previous yearIndex numberPercentage change from same quarter previous yearIndex numberPercentage change from same quarter previous year

*Persons working 30 or more hours per week for wages and/or salaries as the principal source of income. Base: Year ended 31 March 1981 (=1000).

To calculate these indexes gross incomes are first adjusted for income tax liability and then for inflation as measured by the Consumers Price Index. The series therefore measure quarterly changes in the after-tax purchasing power of gross incomes.

Measure the changing level of gross income from all sources.

§For each group of taxpayers, total personal income tax liability is expressed as a percentage of total gross income from all sources.

Real disposable income indexes        
1991—Mar932-1.9952-1.21079-1.0992-1.3
Jun922-1.6945-0.71075-0.6986-0.9
Sep919-0.8943-0.21072-0.2984-0.2
Dec9300.19560.710850.79960.6
1992—Mar9370.59641.310941.410041.2
June9230.19500.510790.49900.4
Sep913-0.7939-0.41069-0.3979-0.5
Dec927-0.3952-0.41083-0.2992-0.4
1993—Mar928-0.1953-1.11084-0.9994-1.0
Jun921-0.2943-0.71075-0.4984-0.6
Sep911-0.2931-0.91061-0.7972-0.7
Average gross income indexes        
1991—Mar26173.726463.726943.626613.6
Jun25901.626322.326872.426482.2
Sep25921.826362.326902.226522.2
Dec26261.526732.127231.926861.9
1992—Mar26621.727092.427582.427222.3
June26522.427032.727522.427162.6
Sep26291.426791.627371.726941.6
Dec26792.027262.027802.127402.0
1993—Mar26850.927310.827881.127470.9
Jun26861.327230.727831.127410.9
Sep26651.427000.827580.827180.9
Average tax rates (percent)§        
1991—Mar17.8 23.6 28.4 25.1 
Jun17.8 23.7 28.4 25.1 
Sep17.8 23.7 28.4 25.2 
Dec18.0 23.8 28.5 25.2 
1992—Mar18.2 23.8 28.5 25.3 
June18.8 24.6 29.1 26.0 
Sep18.7 24.5 29.1 26.0 
Dec18.8 24.6 29.2 26.1 
1993—Mar18.8 24.6 29.2 26.1 
Average tax rates above and below this line relate to different data base samples and the series is therefore discontinuous at this point.
1993—Mar18.5 24.5 29.0 25.9 
Jun18.5 24.6 29.0 26.0 
Sep18.4 24.6 29.0 25.9 

Overwhelming response to advertisement for temporary factory worker, Petone.

Wage indexes

Prevailing Weekly Wage Rates Index. This index measures changes in ‘as paid’ wage and salary rates for full-time adult employees whose minimum pay rates were at least nominally covered by an award or agreement registered with the Arbitration Commission in the base period of the index.

The index is calculated using wage and salary data obtained by a postal survey of a representative sample of employees, for the pay period in which the 15th of the middle month of the quarter falls.

In addition to an index for all sectors, separate indexes are compiled for the private, local authority and central government sectors. Each of these sectors is further divided into specific occupation and industry groups. Industry groupings conform to the production groups of the New Zealand System of National Accounts, and the occupational groups to the New Zealand Standard Classification of Occupations.

Members of the armed forces, most managerial and professional employees in the private sector, and the more senior executive and professional staff in the local authority and central government sectors are excluded from the coverage of the index. Remuneration and conditions of employment for most of these groups have generally been established on an individual employee basis and have not been subject to the provisions of any award or registered agreement.

Table 13.18. Prevailing Weekly Wage Rates Index: by Sector*

QuarterPrivate sectorLocal authorityCentral governmentAll sectors

*Indexes measure changes in the level of prevailing (actual) rates of pay for full-time employees (those aged 20 years and over, working 30 or more hours per week). Base: December 1985 quarter (= 1000).

Indexes    
1990—Sep1411149114451427
Dec1414149514611435
1991—Mar1426150614701446
Jun1437151714751455
Sep1439152014751456
Dec1440152114751457
1992—Mar1445152114771461
Jun1450152614781464
Sep1455153214791469
Dec1458153714831472
1993—Mar1463153714861476
Jun1470154014871481
Percentage change from same quarter previous year    
1990—Sep4.45.64.64.5
Dec4.35.44.64.4
1991—Mar3.24.64.43.7
Jun2.43.13.83.0
Sep2.01.92.12.0
Dec1.81.71.01.5
1992—Mar1.31.00.51.0
Jun0.90.60.20.6
Sep1.10.80.30.9
Dec1.21.10.51.0
1993—Mar1.21.10.61.0
Jun1.40.90.61.2

Labour Cost Index. The June 1993 quarter was the final quarter for which the Prevailing Weekly Wage Rates Index (PWWRI) was compiled. The index has been superseded by a new measure, the Labour Cost Index (LCI), which provides a more comprehensive and relevant measure of movements in wage rates and other employment costs in today's changing labour market.

The Employment Contracts Act came into effect in May 1991, replacing the Labour Relations Act 1987. Under the old legislation, awards and agreements were registered with the Arbitration Commission. Both the award system and the Commission were abolished under the new Act, and this had major implications for the PWWRI.

By the June 1993 quarter, all but a handful of the 571 awards and agreements in the PWWRI sample had expired. Most employees moved to individual or collective contracts negotiated under the Employment Contracts Act. Clearly, there was a need to redefine coverage of the index if it was to continue and to remain relevant.

Furthermore, a committee reviewing macroeconomic statistics in 1990 recommended the development of an index which included other costs of employing labour as well as wages and salaries. In order to implement the committee's recommendation and address the need to redefine coverage of the PWWRI, it was decided to use the PWWRI as a basis for the development of the LCI.

In addition to ordinary time wage and salary rates, the new index includes overtime pay rates and other labour related costs such as Accident Compensation Commission employer premiums and employers' contributions to superannuation and medical insurance schemes.

The new index covers more employees and occupations than the old wage rates index, taking in private sector managers and professionals, part-time employees and those employees under 20 years of age. Initial results of the Labour Cost Index will be included in the 1995 Yearbook.

13.5 Labour relations

Under the Employment Contracts Act 1991 the award system that previously existed under the Labour Relations Act 1987 has been replaced by a more flexible system involving the negotiation of employment contracts. Greater choices are available to both employees and employers in terms of who represents them, how the bargaining system is arranged, and the type of contracts available.

Employment Contracts Act 1991. This Act removes union monopolies over coverage and bargaining and gives employees the right to decide whether or not they wish to belong to an employees organisation, such as a union, and the right to choose who, if anybody, they want to represent them. It aims to encourage bargaining outcomes that are relevant to the workplace and enables employers and employees to negotiate either individual or collective employment contracts directly.

In particular the Act provides for:

Freedom of association and voluntary union membership—employees can determine for themselves whether or not they wish to join any form of employees organisation, such as a union, and they are protected from undue influence in making that decision. No one, including employers, is able to compel any employee to join a union or to stop those who want to join from doing so. Unions are free to play a full role as employees organisations, but they no longer have automatic and exclusive rights to cover workplaces, nor compulsory membership.

New bargaining arrangements—there is no longer an annual ‘wage round’ where workers, unions and employers used to renegotiate the wages and conditions in their specific industry or occupation each year. Wage fixing is now completely decentralised. The emphasis is instead on employers and employees having a direct say in bargaining, using bargaining arrangements appropriate to their organisation and taking responsibility for their own agreements. In particular:

  • Every employer has an employment contract with every employee, either an individual contract or a collective contract.

  • Employees and employers have the right to authorise another person, group or organisation to represent them in negotiations for an employment contract.

  • Bargaining agents must establish their authority to represent their employee or employer client and that authority must be recognised by the other party.

  • Anybody may act as a bargaining agent, provided they have not been convicted of an offence punishable by five years or more in prison, within the last 20 years.

  • Employees are required to formulate, together with their bargaining agent, an agreed procedure for the ratification of any settlement of a collective contract negotiated by the agent.

  • Prospective and authorised agents have limited rights of access to employees in the workplace in order to assist the process of negotiation where the employer agrees and where normal operation of the workplace is not disrupted.

  • Authorised agents may become party to an employment contract when the employer, employees and agent concerned all agree.

The bargaining arrangements give employers and employees maximum latitude to negotiate about any matter they choose, including their bargaining arrangements. Within this framework employees have the ability to negotiate individual contracts, and employers have the ability to negotiate single employer arrangements. Collective contracts may be negotiated between any number of employers and employees, and will only bind those who agree to be included. The parties may agree to include a clause in a collective contract that new employees are permitted to join the contract, with the agreement of the new employee at the time the employment commences.

Procedures for dealing with personal grievances—an employee may claim a personal grievance against an employer for unjustifiable dismissal, other unjustifiable action by the employer, discrimination, sexual harassment, and duress in relation to membership or non-membership of an employees organisation. All employment contracts must contain an effective procedure for the settlement of personal grievances. This can be the standard procedure as set out in the First Schedule to the Act, or another procedure not inconsistent with the standard one. The application of the procedures is not able to be frustrated by the deliberate lack of co-operation on the part of any person. Depending on the circumstances of each case, the remedy in the case of a proven grievance can include reimbursement for lost wages, reinstatement, and compensation for humiliation, loss of dignity and injury of feelings.

Enforceable rights and obligations—all employment contracts must contain a procedure for the settlement of disputes about their application, interpretation or operation. It is the responsibility of the individuals bound by any employment contract to enforce their rights under the contract, as well as their rights under the Act. The standard disputes procedure provided by the Act will apply unless other effective procedures are agreed. In enforcing their rights under an employment contract or any other relevant Act, employers and employees may choose an authorised representative to act on their behalf. The Act requires employers to keep a wages and time record for each employee and provides for the recovery of unpaid or underpaid wages.

Penalties may be awarded for any breach of any provision of the Act or for breach of any employment contract. Individuals are liable to a penalty up to $2,000, companies and other corporate bodies can be fined up to $5,000. However, the primary remedy for a breach of any employment contract or of any provision of the Act is an order for compliance. This is an order made by, depending on the circumstances, either the Employment Tribunal or the Employment Court to require someone to comply with their legal obligations.

The Act deals with harsh and oppressive contracts. It enables employers and employees to ask the Employment Court for help if they believe their employment contract or any part of it was obtained as a result of harsh or oppressive behaviour, undue influence, or duress, or is itself harsh or oppressive.

Lawful and unlawful strikes and lockouts—in general terms, strikes relating to the negotiation of single-employer collective contracts are lawful so long as the contract is not in force. Strikes and lockouts that take place during the currency of a contract are therefore unlawful. In addition, strikes and lockouts in support of obtaining multi-employer contracts (where not agreed), or which relate to personal grievances or disputes over the interpretation, application or operation of an employment contract are also unlawful. Strikes and lockouts in essential industries remain subject to notice provisions if the industrial action is to be lawful. Participation in a strike or lockout is not unlawful if there are reasonable grounds for believing that the strike or lockout is justified on the grounds of safety or health.

The legislation contains powers for employers to suspend striking and non-striking employees. The Employment Court has jurisdiction in relation to torts and injunction actions in relation to industrial action.

The establishment of specialist labour relations institutions—there is a lower order Employment Tribunal and a higher order Employment Court. The tribunal has two main functions: mediation assistance and adjudication. Its jurisdiction includes:

  • Providing mediation assistance. Here the parties are assisted to resolve their differences for themselves.

  • Adjudicating on personal grievances, disputes, recovery of unpaid or underpaid wages and recovery of penalties for a breach of an employment contract or of certain parts of the Act dealing with bargaining, personal grievances or disputes.

  • Issuing compliance orders on specified matters.

The tribunal places emphasis on mediation as a first step toward resolution of differences.

The jurisdiction of the Employment Court includes:

  • Hearing and determining appeals from adjudications of the tribunal, and questions of law referred to it by the tribunal.

  • Hearing and determining penalties under the parts of the Act dealing with freedom of association and strikes and lockouts.

  • Issuing compliance orders on specified matters.

  • Hearing and determining any action founded on an employment contract.

  • Hearing and determining proceedings founded on economic torts and hearing and determining injunctions in the event of industrial action.

  • Dealing with harsh and oppressive contracts.

Minimum entitlements. Following enactment of the Employment Contracts Act 1991, certain other statutory provisions have been designated by the Government as the Minimum Code of Employment. These underpin employment contracts as statutory minimum entitlements and include:

  • A statutory minimum wage for those aged 20 years or over.

  • Protection from unlawful deductions from wages.

  • Eleven paid public holidays where the holiday would otherwise be a working day.

  • Three weeks paid annual leave after 12 months employment.

  • Five days special leave after six months employment.

  • Parental leave and employment protection.

  • Equal pay for men and women.

  • Access to procedures for resolving personal grievances and disputes.

Minimum wage. The Minimum Wage Act 1983 authorises the determination of the national adult minimum wage and establishes the floor below which wages cannot generally fall. Those 20 years of age and over are entitled to receive the minimum rate prescribed by the most recent Minimum Wage Order. The Minimum Wage Order 1990, the current Minimum Wage Order, sets the rate at $6.125 per hour, $49 for an eight hour day, and $245 for a 40 hour week. The rate of pay in any employment contract cannot be less than the minimum rate.

There are several groups who are not entitled to the minimum wage. They are:

  • Those under the age of 20 years.

  • Apprentices.

  • Teacher trainees.

  • Full-time university students employed during holidays to obtain practical experience related to their studies.

  • Persons undergoing training in some professions.

  • Holders of under-rate workers permits (those with recognised disabilities who are incapable of earning the minimum wage). Such permits are issued by the Labour Inspectorate.

Hours of work. Hours of work are not directly governed by statute, but are negotiated into employment contracts. The Minimum Wage Act 1983 provides that, unless the parties agree otherwise, every employment contract under the Employment Contracts Act shall fix the working week at not more than 40 hours, exclusive of overtime.

Holidays. The Holidays Act 1981 contains minimum rights and obligations concerning annual leave, public holidays, and special leave for sickness, domestic or bereavement reasons. They apply to employees whether they are full-time, part-time, permanent, casual or temporary. Employers and employees can not agree to contract out of the Holidays Act, but can agree to better terms and conditions.

Public Holidays—the Holidays Amendment Act 1991 now ensures that all workers receive 11 paid public holidays as of right, if they fall on days which would otherwise be working days for them. The statutory and public holidays are: Christmas Day (25 December); Boxing Day (26 December); New Year's Day (1 January); 2 January (or another day in its place); Waitangi Day (6 February); Anzac Day; Good Friday; Easter Monday; Queen's Birthday; Labour Day; and the anniversary of the province where an employee is employed. Where employees work on a public holiday, and that public holidays falls on a day they would normally work, they are entitled to a paid day in lieu. There are special exceptions for Anzac Day and Waitangi Day where employees who work for greater than ordinary rates on either Anzac or Waitangi days do not have to be granted a day in lieu. In the case of the Christmas/New Year period falling on either a Saturday or Sunday, provision has been made for the transferral of these holidays to a Monday or Tuesday.

Holidays and anniversaries 1994
New Year's Day1 January
New Year's holiday1 January
New Year's holiday4 January
Waitangi (New Zealand) Day6 February
Good Friday1 April
Easter Monday1 April
ANZAC Day25 April
Queen's Birthday observed (actual date 21 April)6 June
Labour Day24 October
Christmas Day25 December
Boxing Day26 December
Christmas holiday27 December
Wellington (actual date 22 January)24 January
Auckland and Northland (actual date 29 January)31 January
Nelson (actual date 1 February)31 January
Taranaki (actual date 31 March)14 March
Otago and Southland (actual date 23 March)varies
Hawke's Bay (actual date 1 November)21 October
Marlborough (actual date 1 November)31 October
Canterbury (actual date 16 December)11 November
Chatham Islands (actual date 30 November)28 November
Westland (actual date 1 December)varies

Annual leave—after one year's continuous service with the same employer, an employee is entitled to three weeks paid annual leave. At least two uninterrupted weeks holiday must be allowed within six months of the holiday entitlement becoming due. Public holidays are additional to annual holidays.

Special leave—on 15 May 1991 a new provision was included in the Holidays Act for special leave. On completion of six months employment with an employer, an employee now becomes entitled to five days special leave on pay during the next 12 months of employment. Special leave that is unused cannot be carried over. Special leave can be taken if: an employee is sick; the employee's spouse is sick; a dependent child, or dependent parent of the employee or the employee's spouse, is sick; or on the death of an employee's spouse, parent, child, brother, sister, grandparent, father-in-law or mother-in-law, or any occasion on which the employer accepts that by reason of the death of any person an employee has suffered a bereavement.

Parental leave. Under the Parental Leave and Employment Protection Act 1987, parental leave is available to employees who are having a child, and to their partners. It is also available to employees, male or female, who are adopting a child under five years old. To apply for parental leave under the Act an employee must have worked at least 10 hours a week for 12 months at the expected date of birth and for the same employer. Applications for parental leave should in most cases be made in writing at least three months in advance. There are some exceptions for medical or work problems during pregnancy, and special provisions for adoption. A medical certificate is required in that case.

All forms of leave under the Act are unpaid. The four types of parental leave available include:

  • Special Parental leave—leave of up to 10 days is available to a women during pregnancy for reasons connected with the pregnancy.

  • Maternity leave—a woman is entitled to up to 14 weeks maternity leave, of which up to six weeks may be taken before the birth or, if agreed by the employer, a period before the adoption of a child under five years.

  • Paternity leave—a man is entitled to two weeks paternity leave from the time of childbirth by his spouse or the adoption of the child.

  • Extended leave—one or both parents are entitled to a total of up to 12 months leave before the first birthday or anniversary of adoption of the new child. The entitlement may be shared between both parents, although any period taken as maternity leave is deducted from the total available. Paternity leave does not affect entitlement to other parental leave.

Job Protection—where an employee take parental leave of four weeks or less, their job must be kept open. Where parental leave of more than four weeks is applied for, the employer may decide that the job is a key position and cannot be filled by a temporary replacement. The employee has a right to challenge this decision. If parental leave over four weeks is taken and the employee has accepted that their job cannot be kept open, the employee will be entitled to a preference period of six months after the parental leave finishes where the employer must offer her or him any available job that is substantially similar to the previous one.

Employers may not dismiss an employee for being pregnant or for applying for parental leave. Employees who are dismissed or given notice of dismissal for either of these reasons have a special right to go directly to the Employment Tribunal and can ask for a temporary order to give them their job back, or cancel the notice of dismissal. Any complaints about other parental leave matters should be taken to the employer first and if still unsettled may then be taken to the Employment Tribunal.

The provisions of the Parental Leave and Employment Protection Act taken together are a minimum standard. Employment contracts may have different provisions. If the employment contract has provisions which are overall less favourable to an employee than the Act then the employee can claim under the Act instead. If the employment contract provisions on parental leave are better overall, the employee can claim them instead.

Huntly East miners' jobs safe due to Coalcorp's plans to extend the operation.

Equal Employment Opportunities. The objective of achieving an equal employment opportunities (EEO) environment that addresses the needs of those who are vulnerable or disadvantaged in the labour market is supported by anti-discrimination legislation. The Equal Pay Act 1972 ensures that employers can not differentiate in pay rates between employees on the basis of their sex. Under the Human Rights Commission Act 1977 and the Race Relations Act 1971, an employer cannot discriminate in hiring or firing, training or promotion because of their employees' race, colour, sex, marital status, religious belief, age, or national or ethnic origin. Employees may make a complaint under the Human Rights Commission or Race Relations Acts, or alternatively may use the personal grievance procedures under the Employment Contracts Act to enforce their rights in cases of discrimination or sexual harassment.

In addition to the anti-discrimination legislation, the Government considers that EEO will be most effectively achieved by voluntary promotion of progressive EEO management practices. To facilitate this a two pronged approach has been adopted.

Firstly, a joint private/public sector funded Equal Employment Opportunities Trust was established in 1991 for the development, promotion and research into EEO policies and practices in the private sector. The main aim of the trust is to promote EEO as good management practice. Secondly, the Government has established an Equal Employment Opportunities Fund for the promotion of EEO programmes and practices in private sector workplaces. Projects funded by the EEO Fund which develop EEO resources will be available for wider distribution to employers and interest groups via the EEO Trust.

Employment Related Education Fund. In July 1993 the Employment Related Education Fund was established by the Government to foster training and education to improve workplace relationships between employees and employers. This fund has replaced the former system of union education which was concerned with providing trade union training for union delegates. The new industrial relations environment under the Employment Contracts Act allows employees and employers at the workplace to be more directly involved in the negotiation of terms and conditions of employment. The Employment Related Education fund is available to help develop negotiation and other skills of those directly involved at the workplace.

The fund is contestable with applicants bidding for the amount they need once a year for a project which meets the aims of the fund. The intention is not only to assist employment related education in a successful applicant's own area, but also to allow sponsored projects to act as a positive model for other groups.

Work stoppages

The Employment Contracts Act 1991 places restrictions on the ability of employers to lock out and on the ability of employees to strike at will by making strikes and lockouts lawful only in certain circumstances. The right to strike and lock out is recognised but the legislation attempts to minimise the extent and wider economic impact of industrial action.

Participation in industrial action is unlawful in cases where the legislation provides a resolution procedure; that is, where the dispute concerns:

  • A dispute over the operation, application or interpretation of an employment contract; or

  • A personal grievance; or

  • Issues relating to membership of an employees' organisation.

Participation in industrial action is also unlawful if it:

  • Occurs while a collective employment contract relating to the employees involved is still in force; or

  • Is concerned with the issue of whether an employment contract will bind more than one employer; or

  • Occurs in an essential industry (as defined in the schedules to the Act) and the statutory notice requirements have not been complied with.

Participation in industrial action is lawful only if it relates to the negotiation of a collective employment contract for the employees concerned and if it does not fall into any of the above categories of industrial action. Statutory penalties are not imposed in the event of unlawful industrial action. The primary remedy is through a civil action in the Employment Court for an injunction, damages or both.

Work stoppage statistics are compiled by Statistics New Zealand from the ‘Record of Work Stoppage Forms’ submitted by the Department of Labour. For statistical purposes, work stoppages are defined not only as those disputes which result in a complete withdrawal of labour or lockout but also disputes in which an organised ‘go slow’, refusal to work overtime or other methods of passive resistance are clearly manifested. This includes unauthorised stopwork meetings as well as unauthorised delays in resuming work after stopwork meetings. These cases are referred to as ‘partial’ strikes or lockouts.

Published statistics relate to complete strikes and complete lockouts which involve the equivalent of 10 or more working days lost, and to all partial strikes and lockouts which have been identified. It should be noted that the statistics regarding the number of workers involved in work stoppages includes workers who, while not participating in a stoppage directly, are suspended because of the unavailability of normal work.

The indicators used to measure work stoppage activity are the number of stoppages (measuring frequency), the duration of stoppages (measuring persistence), the number of workers involved (measuring extent), the number of working days lost (measuring economic impact) and the estimated loss in wages and salaries (also measuring economic impact). Instances where several stoppages occur over the same issue are treated as one stoppage. From January 1988 coverage of the stoppage statistics has been extended to the public sector as well as the private sector.

shows that the number of work stoppages has fallen markedly in recent years. During the 1992 calendar year there were 54 stoppages recorded, less than half the number recorded in 1990. Not surprisingly, the number of employees involved in industrial action has fallen to slightly more than half the 1990 level. The number of working days lost, the average duration of industrial action and losses in wages and salaries registered increases over 1991 but are still well below 1990 levels.

Table 13.19. Industrial Distribution of Work Stoppages*

Industry groupsTotal number of stoppagesNumber of employees involvedWorking days lostAverage days lost per employee involvedEstimated loss in wages and salaries

*Stoppages which affect more than one industry have been recorded in each of the industries concerned. For this reason the total figures may not be the sum of the industry figures.

Rounded to the nearest whole day.

Rounded to the nearest $1,000.

§This is a combination of industries. It is necessary to group these industries together to preserve the confidentiality of the statistics.

There was only one small stoppage in these industries in 1992. Figures for this stoppage have been combined with Manufacturing for reasons of confidentiality.

ķThere was only one small stoppage in these industries in 1992. Figures for this stoppage have been combined with Community, social and personal services for reasons of confidentiality.

**In addition to the reason given in *, total figures for the number of working days lost and the estimated losses in wages and salaries may not equal the sum of their respective columns due to rounding.

     $ (000)
Agriculture, mining, electricity and related industries§     
19904108820.767
19913280784028.001250
1992◊
Manufacturing     
1990682140525489511.9139976
19913718982329521.743671
19922852779232517.5016824
Construction     
1990843821494.91209
1991538112373.25122
19920000.000
Retail and wholesale trade     
1990839612043.04100
199152123051.4423
19920000.000
Transport, storage and communication     
1990209453463494.905882
199118390676171.95709
199253641100.3016
Finance, insurance and real estate     
199032162541.1812
199153724461.2042
1992ķ
Community, social and personal services     
19903517991259931.442247
19912127829486361.755761
19922121162213081.012532
            Total all stoppages**     
1990137500073309236.6248433
19917151962990321.9111577
199254268031137434.2419372

The number of work stoppages decreased steadily during the 1980s. The high point of industrial activity occurred in 1977, when 562 work stoppages were recorded. Apart from a brief increase during the mid-1980s the number of reported stoppages has fallen each year since. A similar pattern emerges in the number of working days lost in work stoppages. The peak year was reached in 1986 and the number of workers involved in stoppages has fallen every year since that time.

Contributors

13.1 Statistics New Zealand; Department of Labour.

13.2 Statistics New Zealand.

13.3 Ministry of Education; Department of Labour; Education and Training Support Agency; Department of Internal Affairs; Ministry of Commerce

13.4 Statistics New Zealand.

13.5 Department of Labour; Statistics New Zealand.

Special articles

Ministry of Women's Affairs; Workbridge.

Further information

Employment and Incomes

Census of Population and Dwellings 1991: Report CO5: New Zealanders at Work, Statistics New Zealand

Household Labour Force Survey: Statistics New Zealand

Labour Market Statistics 1992: Statistics New Zealand

New Zealand Social Trends: Work; Statistics New Zealand

Quarterly Employment Survey; Statistics New Zealand

Report of The Career Service Rapuara (Parl paper E 27).

Work Stoppages; Statistics New Zealand and Department of Labour

Labour Relations

A Guide to the Employment Contracts Act 1991, Department of Labour, 1991.

The Employment Contracts Act—A Brief Guide, Department of Labour, 1991.

Contract—The Report on Current Industrial Relations In New Zealand, Department of Labour, 1992.

The Department of Labour produces a series of pamphlets regarding rights and obligations covering employment contracts.

Chapter 14. Science and Technology

Measuring beech trees.

14.1 Organisation of science

The new approach to the funding and delivery of state sector research, science and technology has three principal objectives: accountability, enhanced economic growth, and improved decision-making.

A key element of the science reforms has been the organisational separation of government's involvement in science and technology policy, science funding and the carrying out of research and development. This separation has enabled much clearer objectives to be established at all levels in the science system with corresponding gains in the ability of organisations to focus their activities.

The separation of operational activities, such as research, from policy has enabled those operational activities to be given a clearer science focus. The New Zealand science system used to be dominated by a small number of large government departments with mixed roles and direct funding. The new system is characterised by a larger number of more highly focussed operating agencies faced with much stronger and more transparent disciplines for excellent science performance.

Science and technology policy including science priorities and overall funding levels is decided by Cabinet based on the recommendations of a Cabinet Committee. The name and membership of the Cabinet Committee with responsibility for science can change from time to time.

There are presently two ministerial portfolios in the Government with specific responsibilities for science and technology. These portfolios are Research Science and Technology (RS&T) and Crown Research Institutes (CRIs). The RS&T portfolio includes the Government's interest in both policy and funding (or the purchase of science). The CRI portfolio covers the Government's ownership interest in Crown Research Institutes.

Structures

Ministry of Research, Science and Technology. The ministry's main purpose is to provide advice to government on science and technology policy, including advice on science priorities and funding. The Office of the Chief Scientist is also based in the ministry and plays an important role in ensuring the provision of technical input into government policy development in general and in maintaining good liaison with the science community.

The ministry is also responsible for gathering and disseminating statistics and descriptive information on research, science and technology activities and for administering government-to-government science relations.

It also acts as the agent of the Minister of Research, Science and Technology in the overall administration and monitoring of science funding.

Foundation for Research, Science and Technology. The foundation's major roles are to invest public funds in research and development, provide independent policy advice on science and technology and research priorities to government and encourage technological innovation in private companies.

The foundation administers a contestable pool of funds for science research. The Public Good Science Research Fund receives bids from government departments, Crown funded agencies, research organisations, private individuals, non-profit private trusts, incorporated societies and state-owned enterprises that conduct public good science research and universities. The ‘science providers’ compete to win contracts to undertake agreed research programmes, which reflect national science priorities. High priority research areas have been determined by Government in the 1991 Science Priorities exercise and the more detailed research strategies currently being developed by the foundation. These science priorities and ‘national science strategies’, i.e. the control of possums and the threat of bovine TB and emphasis on atmosphere and climate research have been selected by Government in consultation with all key stakeholders in science.

One hundred percent of the Public Good Science Fund vote is administered by the foundation, subject to some adjustments for non-specific output funding (NSOF). NSOF allows Crown Research Institutes to receive 10 percent of their equivalent funding for non-discretionary research.

The foundation works alongside the private sector to increase their involvement in research and development. The Technology for Business Growth programme invests in research and technological development business projects conducted jointly between business and research institutions.

There are also Research Associateship and Fellowship programmes, funded by the foundation, to encourage young scientists to further their work in specific areas of priority research either in a research institution or in industry.

In addition, the foundation sponsors the Hodge fellowship for research in the social sciences.

Ministerial Advisory Group. Established in 1992, the MAG provides a consultative forum on issues and policy proposals in research, science and technology. Its members are appointed by the Minister of Research, Science and Technology so as to provide perspectives from major science and technology organisations and interest groups in New Zealand. The group includes representatives from government science organisations, research organisations, universities, the private sector and Maori who engage in significant scientific activity.

Crown Company Monitoring and Advisory Unit. The unit (CCMAU) was established in 1993 to advise the shareholding ministers and to review the performance of the boards of Crown companies including the Crown Research Institutes (CRIs). The shareholding ministers for CRIs are the Minister for CRIs and the Minister of Finance.

The unit also provides administrative and analytical support for the External Advisory Group for CRIs. This group comprises people with a proven commercial and/or scientific and technical experience. The members are appointed by the Minister of CRIs to provide independent advice on the performance of the CRIs.

Government science agencies

On 1 July 1992 the final organisational changes of government funded science were put in place with the formation of 10 Crown owned research institutes. These institutes replace the former departmental or ministry science agencies (DSIR, MAFTech, NZ Meteorological Service, Forest Research Institute and Communicable Diseases Centre of the Department of Health).

The organisation of government science in New Zealand now comprises a Ministry of Research, Science and Technology which provides policy advice to government in such areas as the priorities for science, and the level of science activity required by New Zealand; and also provide an audit on the quality of science emanating from government research laboratories. The Foundation of Research Science and Technology's main role is to invest public funds in research, development and training. The foundation also has an important role in providing independent policy advice to government and in encouraging technology transfer and technological innovation through the operation of the Technology for Business Growth programme. In the 1993/94 financial year the foundation allocated approximately $240 million from the Public Good Science Fund (PGSF). The universities received $10.668 million from their ‘ring-fenced’ pool of funding (derived from their ‘entry fee’ to bid from the PGSF). Universities will gain full access to the PGSF by 1996/97.

Crown Research Institutes. Government owned science is now structured as 10 autonomous research institutes registered as companies in New Zealand law. Each institute has its own Board of Directors, appointed by the government, and manages its own assets. Ownership of the Institutes remains with the government represented by two shareholding ministers, the Minister for Crown Research Institutes and the Minister of Finance.

The Crown institutes are as follows:

AgResearch (National Institute for Pastoral Research Limited)—AgResearch is an internationally pre-eminent provider of innovative solutions and opportunities to the food, fibre and biotechnology related industries which are based on the pastoral agriculture industry of New Zealand. The institute is committed to a strategy of actively supporting New Zealand agriculture away from a commodity base to one of diversified, high value products, by increasing the year-round supply of differentiated foods from pasture-fed animals; and developing specialised plant and animal products, and new, high-value products based on biotechnology.

The institute has over 1,000 staff distributed between five internationally renown research divisions. Each division is headed by a general manager with specific national research and technology development responsibilities: dairy and beef (Ruakura), forage (Grasslands), animal health (Wallaceville), environmental agriculture (Lincoln) and sheep, deer and equine (Invermay).

Explaining DNA sequencing at AgResearch's Wallaceville Animal Research Centre.

Institute of Environmental Health and Forensic Sciences Limited—the institute provides research, analytical and consulting services in environmental health and forensic sciences to public health, law enforcement, regulatory, commercial and research organisations.

The institute has a staff of 300 scientists and support staff. The main areas of research are in food and drugs, pharmacology, communicable diseases and environmental health.

Landcare Research New Zealand Limited/Manaaki Whenua—Landcare Research is New Zealand's first multi-disciplinary organisation providing a scientific basis for the sustainable management of land resources. It aims to be a world leader in natural resource research and consultancy, covering both production and conservation. Landcare serves national, regional and local government, industry, all land users, and overseas clients through research, consultancy, technical services and technology development.

Landcare Research has a staff of 350, at 20 locations around the country. There are four major science research groups comprising: native plants and animals; weeds and pests; soil and plant processes; and land management.

NZ Institute of Crop and Food Research Limited (Mana Kai Rangahau)—the focus of the institute is in research for the production and processing of arable crops, vegetables, seed crops, flowers, ornamentals, essential oils, medicinal crops and seafood. The research is strongly market oriented in its approach. Many of the 315 staff work alongside local and overseas processing and manufacturing companies in joint venture partnerships. Farmer and grower groups are also important clients of the institute, as are other research organisations.

The institute encourages a multi-disciplinary approach to research activities, with staff skills as diverse as plant breeding and soil science, aquaculture and post-harvest physiology, molecular biology, agronomy, entomology and fishing methods.

New Zealand Forest Research Institute Limited—the New Zealand Forest Research Institute carries out research and development so as to enhance New Zealand's advantage in plantation forestry and assist the profitable production of high quality, high value wood products while protecting environmental values. NZFRI has a clear focus on forest and wood products research, and the institute is recognised internationally as a centre of excellence.

The institute has a staff of about 400, with the main laboratories and the headquarters based at Rotorua, and a South Island operation based at Rangiora.

Areas of science activity are: forest technology, biotechnology, wood processing, wood products, pulp and paper research organisation (PAPRO), and logging industry research organisation (LIRO). These divisions align closely with identifiable sectors of the industry through links provided by the Forest Products Research Organisation which seeks to promote forest research through a co-operative relationship between researchers and industry. Each division will capitalise on critical areas of growth—tree quality and breeding, harvesting, wood processing and utilisation and the development of new products.

Institute of Geological and Nuclear Sciences Limited—The Institute of Geological and Nuclear Sciences undertakes public good research and provides a number of services on a commercial basis. Current activities include resource evaluation within the hydrocarbon industry, geophysical surveys, regional mapping, scientific drilling, engineering geology, natural hazard assessment and mitigation, geothermal processes, groundwater and environmental chemistry, the application of the nuclear sciences to industrial and environmental studies, and resource management.

The institute has inherited over 120 years of scientific research experience. Its research is focused on the earth sciences and the application of nuclear science to scientific, environmental industrial and health issues. The institute has established five science groups, or Centres of Excellence in Regional Geology, Hydrocarbon Resources, Earthquake and Hazards, Volcanology and Geothermal Resources, and Nuclear Sciences.

The institute has 270 staff and its library collections are of national importance.

Horticulture and Food Research Institute of New Zealand Limited—HortResearch is New Zealand's nationally focussed horticultural research organisation. The institute is very much a ‘one stop shop’ for the industry. Its research spans molecular biology, plant breeding and crop production, through to food processing transport and the evaluation of consumer preferences.

The institute has over 500 science and support staff, located at 17 regional research centres and orchards throughout New Zealand. It aims to bring the horticulture industry superior plants and novel crops, improved management methods, better plant health without today's dependence on chemicals, and higher quality fresh and processed export produce. The work covers a large range of horticultural crops of economic importance to New Zealand including fresh fruit, flowers, ornamentals and processed foods.

Industrial Research Limited—Industrial Research Limited has a mission to conduct viable world class research that leads to internationally competitive added-value opportunities.

The institute is 400 strong, with a focus on the manufacturing and processing sectors of industry.

The activities of the institute are focused into six broad science areas of: production, automation and control; packaging, storage and transport; measurement, applied mathematics and analysis; communication electronics, sensing and information technology; natural products processing; materials science and performance.

NIWA Taihoro Nukurangi (National Institute of Water and Atmospheric Research Limited)—has been formed to conduct research and provide related services required to understand natural processes and human influences in the atmospheric, marine and freshwater systems, in order to provide a scientific basis for effective environmental and resource management. Their principal focus is on New Zealand and its territorial waters. However, NIWA has a growing interest in international projects. Environmental consultancy work is carried out in Asia and the Pacific while involvement in the atmosphere and ocean is on a global scale.

NIWAR has a staff of 350 with a wide discipline base across five science divisions: ecosystems; oceanographic; atmosphere; freshwater; and Environmental Data. Staff are committed to cross-disciplinary work for many research and applied science consultancy projects. Servicing and supply of instruments is carried out by NIWA, Kainga.

New Zealand Institute for Social Research and Development Limited (Te Kura Kōkiri, Rangahau-ā-Iwi o Aotearoa)—The Institute for Social Research and Development (SR&D) is a centre for research to monitor, analyse and assess changes and their policy implications in New Zealand society and economy. SR&D is multi-disciplinary and draws on specialists from many fields of social sciences in undertaking social research in the public good, or on a contract and consultancy basis from government, private sector, community organisations and international agencies.

Alexandrium minutum (magnification x 4420). One of the three species of toxic dinoflagellates identified by NIWA—Oceanographic division during recent shellfish poisoning.

Currently SR&D is the smallest of the Crown Research Institutes with a staff of 15.

SR&D's core research priorities are employment and working life; technological change and innovation; societal change; and social policy. Work includes: policy analysis; social assessment; social and socio-economic surveys; design of research methodology; data analysis and interpretation; compilation of databases; action and participatory research; strategic planning; rapid rural appraisal; project management; case studies; and social monitoring.

The Royal Society of New Zealand. In keeping with the changes to New Zealand scientific and technological institutions that have occurred over the last five years, the Royal Society of New Zealand is at present changing its structures. Legislation to revise the 1965 Act is in the final stage of preparation following a 20 month review by a ministerial panel and over a year spent implementing the panel's recommendations. The organisation has seen many changes in its 126 year history as a statutory body, some as far-reaching as the present restructuring exercise. The ability to change, as a means of remaining relevant to both the constituency it represents and the wider community, has been a feature of the society since its inception. These changes have occurred at 25 to 30 year intervals and the timing of the present review is in accord with this cycle.

In the 28 years since the introduction of the Royal Society of New Zealand Act 1965 there has been a decline in the number of branches and the affiliation of over 60 scientific and technological societies representing a wide range of disciplines. The fellowship has increased also, but not at nearly the same rate as the member body membership. Today, following much discussion within the society, and with the benefits of the comprehensive government review, a new organisation is being set up that better reflects the present nature of the society as an umbrella group comprising fellows, individual members, constituent societies, regional branches and affiliate organisations.

Some important features of the changes are:

  • The ownership of the society will pass from the Crown to the membership.

Sampling stack emissions for trace organic contaminants.

  • The scope will widen to take in applied, technological and engineering sciences and the social sciences.

  • The society will be open to any person or group subscribing to the statutory objects and to the objectives of the society and paying the prescribed fees.

  • The governance of the society will pass from a majority of fellows to a council made up of three fellows' representatives, one regional branch representative, and nine members drawn from electoral colleges covering the full spectrum of the society's many disciplines.

  • The fellowship will continue its traditional activities within an academy of science and technology and will continue to have a president and council to govern its own affairs.

  • The regional branches will also continue their traditional roles, but it is expected that they will have additional responsibilities in initiating regional activities and providing information to the scientific and technological community in their regions.

  • A new class of ‘member’ is instituted, allowing individuals to join the society directly. These members will be able to vote for council members in electoral colleges. Professional scientists and technologists with appropriate qualifications and experience will be able to show this by using the letters MRNZS. They will be bound by a code of ethics.

  • Another class of members—companions—is being instituted to recognise members who have made outstanding contributions to the promotion and advancement of science and technology in the widest sense.

  • Scientific Societies will continue to have an important place as ‘constituent societies’ and they also will have votes in the electoral colleges in proportion to their membership.

  • Other bodies who wish to be more loosely affiliated may do so by subscribing to the statutory objects and to the objectives of the society and paying affiliation fees. These affiliate organisations will have votes in electoral colleges and will be able to cooperate in society enterprises.

  • The name of the overall organisation will become ‘The Royal New Zealand Society for Science and Technology’.

The pending legislative changes are aimed at producing a society that will provide scientists and technologists with the opportunities they need to attain their objectives—to promote the science and technology culture throughout New Zealand, to influence science and technology policy wherever it is formed, to recognise excellence in all areas of science and technology, to extend awareness, knowledge and understanding of science and technology throughout society, to enhance science and technology education and to provide support for the attainment of professional and disciplinary objectives. The changes have the support of ministers and government agencies, and the society is fully recognised as an important element in the total science and technology structure.

Federation of Scientific and Technological Societies. The federation (FOSTS) represents New Zealand's 17,000 scientists and technologists. The new structure within the Royal Society of New Zealand has made it necessary to review the role of FOSTS and its council. Formed in 1990, FOSTS's elected council exercised most of the powers previously held by the society's Member Bodies' Management Committee. Now that the society's interim board is representative of the constituent societies through an electoral college process, there is no reason for FOSTS to continue in its previous form. In future, FOSTS will operate as a sub-set of the interim board with special responsibility for the information communications role within the new Royal Society.

Other organisations contributing to research

There are five main areas in which social science research is carried out in New Zealand: universities; research units in government departments and in some local government authorities; independent social research units which receive government funds, eg the New Zealand Council for Educational Research and the New Zealand Institute for Economic Research (Inc); commercial market research firms, private research consultancies and research or analysis units within private enterprises; and voluntary agencies.

New Zealand Institute of Economic Research. The institute 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 and is funded from membership subscriptions, contracts and consultancy.

The institute is 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.

Cawthron Institute. The only major endowed research organisation in New Zealand is the Cawthron Institute at Nelson. Founded in 1921, it is funded from the original bequest, commercial activities, and monies contested for and received from the Public Good Science Fund.

Canterbury University chemists with frozen Kaikoura sponge samples. See ‘Yellow slimy’ section 17.3.

Cawthron undertakes research into marine and freshwater microbiology and ecology, and provides commercial services to industry, specialised environmental consulting services to resource managers and users, and analytical and microbiological testing services for monitoring and quality control across a wide range of client groups.

The organisation of medical research is described in section 7.3, Public health.

14.2 Technology services

Patents, trade marks and designs

The Patents Act 1953, the Trade Marks Act 1953, and the Designs Act 1953 are administered by the New Zealand Patent Office, a division of the Ministry of Commerce. The main function of the Patent Office is to examine patent, trade mark, and design applications to ensure that only those which comply with the requirements of the relevant Act are granted (in the case of patents) or registered (in the case of trade marks and designs).

Patents are granted for a maximum period of 16 years, provided that the appropriate renewal fees are paid at three-yearly intervals. Trade marks may be kept on the register indefinitely as long as renewal fees are paid after an initial period of seven years, and every 14 years thereafter. Registration of designs is for an initial period of five years, with provision for two more five-year periods (giving a maximum of 15 years).

New Zealand is a party to the International Convention for the Protection of Industrial Property (the Paris Convention), under which each member state provides the same protection to the inventions, trade marks, and registered designs of the nationals of other member states as it accords to those of its own nationals.

The total number of applications for the grant of letters patent, and for the registration of designs and trade marks during the financial year 1992-93 was 13,293 a decrease of 25 over the previous year.

The Patent Office library contains a comprehensive collection of patent specifications from a number of countries. A detailed list is available on request, and the office maintains a mail order service for patents, trade marks and designs.

Table 14.1. Applications for Patents and Registration of Trade Marks and Designs

Year ended MarchPatentsTrade marksDesigns
Source: Ministry of Commerce.
198842897285686
1989445512562630
199045828327656
199144888168637
199245348178606
Year ended June 199336438720690

The 3,643 applications in 1993, originated in the following countries: New Zealand 1,127; United States 1,087; Australia 296; United Kingdom 261; Germany 178; Switzerland 172; France 120; Japan 100; Netherlands 52; Canada 43; Italy 38; Sweden 28; Denmark 25; Austria 13; Belgium 13; Israel 13; Finland 12; Norway 9; Spain 9; Taiwan 9; and the balance of 38 from 19 other countries.

The technical content fell into the following categories: chemistry 1,602; mechanical engineering 907; electrical engineering 394; home science and miscellaneous 335; primary industries 199; and building technology 206.

The range of subjects for which patent applications were filed is similar to last year. Applications relating to genetic engineering, vaccines, the techniques for producing them, enzymes and for human and veterinary antiviral medicines have been maintained. There has been increasing activity relating to aerosols which contain environmentally acceptable propellants. Applications have been received for optical signal processing, computer related inventions and digital, mobile telecommunication systems. Interest in syringes, needles, and catheters, in absorbent, laminated articles and in powder medicament dispensers has continued. Other applications include window and door fittings and light guides for buildings, various recreational devices and milking machine components.

During the year 2,956 applications proceeded to acceptance after search and examination, and Letters Patent were sealed on 3,049 applications.

Fourteen grants of patents were opposed. Four applications for revocation of patents and seven applications for extension of term were filed. Fourteen opposition proceedings and two applications for revocation were finalised and five extension of term applications were resolved.

Patent Co-operation Treaty. In December 1992 New Zealand became a party to the Patent Co-operation Treaty. This allows one ‘international application’ to be filed in a member country, which then results in applications in any one or more countries designated from the 55 member states. Although membership has caused the number of New Zealand patent applications to decline in the current year, it is expected that membership will result in a considerable increase in future.

Trade marks. The applications for registration originated in the following countries in 1993; New Zealand 3,797; United States 1,849; Australia 961; United Kingdom 427; Germany 281; France 238; Japan 187; others 980. The number of applications from New Zealand has increased approximately 17 percent and they now represent 44 percent of the total filed.

During the year, 9,062 applications were examined (up 16 percent), 4,671 applications were accepted, 4,267 went to registration (up 6 percent) and 4,190, registrations were renewed (up 8 percent).

Designs. Applications for design registration numbered 690 representing a 5 percent increase over the previous year. There are no examination arrears in this area.

Virtual reality machine at Christchurch shopping mall.

Telarc

Telarc is a user-funded statutory body responsible for ensuring technical standards are met in New Zealand's industrial, technical, commercial, regulatory, health care and administrative sectors.

Amendments to the Testing Laboratory Registration Act 1972 in 1983 and 1988 gave Telarc the functions of the National Quality Management System Certification Authority and the New Zealand Industrial Design Council. These amendments give Telarc the responsibility to assess and certify organisations' quality management systems and added the New Zealand Designmark programme to its list of accreditations.

Telarc works through training, advisory, accreditation and certification services in product design and development, quality management and the testing of products and materials with the major accrediting agencies of the United Kingdom, Australia, United States, Western Europe and the Far East. Telarc's educational arm is the New Zealand Quality College.

Telarc carries six ‘marks of excellence’ which laboratories, companies and products certified or accredited by Telarc are authorised to use. These are listed below:

Registered Supplier. This mark indicates that the companies to which it is awarded have implemented quality management systems complying with national and international standards, and this has been confirmed through assessment by Telarc.

Q-Base. This programme is similar to the registered supplier programme, but it is aimed at small businesses.

Registered Laboratory. This is intended to provide laboratory users with an assurance of accurate, reliable testing. It indicates that the laboratory has achieved international standards of laboratory practice.

Quality Mark. This is a mark of excellence awarded to products or services from Telarc registered suppliers. The supplier must have an accredited quality system and the product or service meet quality standards.

Designmark. This is a symbol of excellence in industrial design. It is awarded on the basis of assessment by industrial design specialists, on the basis of a product's aesthetic, functional and engineering design. Both Designmark and Quality Mark symbols are shown on products, packaging, advertising and point of sale material.

Environmental Choice NZ. Authorised by the Minister of Commerce in 1990, this label is awarded to products that take account of environmental factors.

Standards Council

Standards New Zealand (SNZ) operates under a charter from the Standards Council, the body responsible for the administration of the national standards system.

The aim of SNZ is to improve efficiency and stimulate development in industry and commerce by providing nationally agreed standards. These also help to promote public and industrial welfare, health and safety. SNZ administers the New Zealand Standard certification mark and quality assured supplier schemes, which encourage improved quality control in industry, and therefore in consumer goods.

Standards New Zealand provides the ‘Technical Help to Exporters’ service, supplying assistance to manufacturers whose products need to comply with the standards and regulations of overseas markets. SNZ is also the enquiry point for the GATT code on Technical Barriers to Trade. The council recognises the importance of international standardisation in facilitating trade and is the New Zealand member of the International Organisation for Standardisation and the International Electrotechnical Commission.

Standards New Zealand's library holds full sets of New Zealand and international standards, and national standards of the United Kingdom, United States, Australia, Germany and many other countries. Its information service provides comprehensive technical information on New Zealand, overseas and international standards. Details of these and other standards activities are given in a monthly publication, Standards, and there is a catalogue, published annually, which lists all the standards in use in New Zealand.

The council depends on the subscriptions of members and on sales of standards for the greater portion of its income. Sales of publications exceeded $3.2 million in the 1992-93 year. Subscribing membership 1,950 totalled 1,750 at 30 June 1993.

Contributors

14.1 Royal Society of New Zealand; Ministry of Research, Science and Technology; Federation of Scientific and Technological Societies; Foundation for Research Science and Technology; Crown Research Institutes; New Zealand Institute of Economic Research, Cawthron Institute.

14.2 Ministry of Commerce; Telarc New Zealand; Standards New Zealand.

Special articles

The Royal Society of New Zealand.

Further information

Patent Office Journal. New Zealand Patent Office (monthly).

Standards. Standards New Zealand (monthly).

Report of the Ministry of Research, Science and Technology (Parl paper G50).

Report of the Foundation of Research, Science and Technology. (Parl paper G53).

The Foundation of Research, Science and Technology publish a number of discussion, occasional and position papers.

Chapter 15. Land and environment

Rounding up the feral horse, Kaimanawa.

15.1 Land resources and ownership

Surveying, mapping and land information

The Department of Survey and Land Information is the principal government (civil and military) survey and mapping and land information agency. The major functions of the department include the maintenance and extension of the survey control system; examination of all land title surveys; development of the digital cadastral database; co-ordination of government aerial photography requirements; the publication of topographical, cadastral and special maps; the production of cadastral data in digital and paper formats; investigations into the status of Crown land and Maori land; maintenance of records related to the unregistered lands of the Crown; and promotion of land-related data integrated through the national land information system (LIS).

Surveying. The 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, marine licences, engineering and construction, communications, mapping production, scientific studies, and the location of marine and air navigation aids. In managing the survey control system the department uses the high technology global positioning system (GPS) controlled by orbiting satellites. The resultant data links New Zealand to other national and international survey and mapping systems, providing certainty of the positions of New Zealand's national and economic zone boundaries. 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 Department of Survey and Land Information also completes surveys for land title, land development, survey control navigational purposes, earth deformation studies, administration of justice, land and environmental planning, draughting services related to local government administration, census, electoral activities, and mining applications. Computerisation of cadastral land records, as the base of a national land information system, is well advanced in all land districts.

Aerial photography. Extensive use is made of aerial photography in support of New Zealand's national mapping programme. This programme consists of two components, i.e. the mapping of regions not previously covered and the revision of existing mapping. The department holds and maintains the national air photo library which provides a comprehensive national source of land information data. The department also receives and holds multispectral imagery collected by earth resource satellites. This data is available to the public.

Mapping. The metric 1:50,000 topographic map series which is now reaching completion, provides a reliable and authoritative inventory of the physical resources over all of New Zealand. This series is in constant demand for planning, construction, development, environmental assessment, local government and defence purposes. A start has been made on converting data from the 1:50,000 maps into digital form. In addition, the Department of Survey and Land Information maintains a 1:250,000 digital topographic database of New Zealand, a regularly updated series of street maps over all urban areas, and publishes a wide range of maps for recreation purposes. Its map holdings include maps for all national parks, plus miscellaneous and general maps of New Zealand, the Pacific, Antarctica and the world. The department produces maps (in both hard copy and digital form) to service specific needs of other national agencies. These include the charts needed for military and civil aviation use and those required for meteorological use. The department uses photogrammetric methods to produce a range of other digital map products to support energy investigations, hydraulic modelling for flood control purposes, forest management activities and the needs of the New Zealand land information industry.

Image processing provides new opportunities to enhance the capture of topographic information, with stereo viewing a fundamental feature of the set-up.

Land Information System. Stage one of a core Land Information System (LIS) is a computer system linking the survey, title and valuation records of three government departments:

  • Automated Land Transfer Journal—the automated processing of documents received for registration.

  • Automated Index to Certificates of Titles—a computerised index to records held in the Lands and Deeds Division of the Department of Justice.

  • Maori Land Court Titles Index—an index to Maori land administered by the Maori Land Court of the Department of Justice.

  • Digital Cadastral Database (DCB)—the digitised boundaries of all land parcels and their identifiers in the Department of Land Survey and Information.

  • Parcel Plan Index—an automated index to every survey plan and every parcel ever created and recorded by the Department of Land Survey and Information.

  • Valuation Roll System—standardisation of components of the Valuation New Zealand database to make it more compatible with other core systems.

Stage two of the LIS envisages the linking of statistics, topography, utility and land use data with the ‘core’ cadastral land data.

The LIS Pilot. In November 1992 the Government directed the three departments to cooperatively demonstrate a prototype of the LIS in the Auckland region. The developments are sponsored by the Department of Survey and Land Information. They will demonstrate the benefits of the adoption of standards for land records management, co-ordinate maintenance of land data records and enable on line computer access to a central index of key data from the core land departments.

Registration of land ownership

Land and Deeds Division. All property rights in New Zealand are derived from the Crown and title to land in private ownership is a matter of public record. The creation of new rights and termination of existing rights in land is the function of the Land and Deeds Division of the Department of Justice, as is the keeping of title records.

Almost all privately-owned land in New Zealand is held under the land transfer system, presently embodied in the Land Transfer Act 1952. The principal features of the system are title by registration and guarantee of that title by the state.

Successive governments have charged the Land and Deeds Division with duties of surveillance under the laws relating to the subdivision and aggregation of land, overseas ownership 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. Maori land, when vested in any person for a freehold estate, comes automatically under the land transfer system. In recent years new technology has been progressively introduced into Land and Deeds offices throughout the country in order to improve customer services, streamline processes, and contribute to an overall Land Information System.

The first stage in the automation of the land titles register has been the development of the Automated Land Transfer Journal (unregistered documents file). This application holds details of all documents lodged for registration and is essentially a work-in-progress file. Development is also under way to incorporate new plan details (including a tracking facility) and early allocation of new title references permitting new subdivisions of land.

Another new application is the Automated Index, which allows enquiries to be made on owners names or legal descriptions and displays the relevant title references. An inventory of land held for up to 370 public purposes can now be categorised. As at 1 September 1993 details on over 1.3 million titles were in the database. The Auckland District office of Land and Deeds is utilising the Automated Index as a first step in the establishment of a core Crown Land Information system, which matches the title index data (text) with the survey data (graphic) from the Department of Survey and Land Information. Data from the Maori Land Court and Valuation New Zealand will be added to form a central (common) index.

The creation of moveable marginal strips, the sale of Crown Forests, irrigation schemes and the issue of title to state owned enterprises have been significant areas of work undertaken by the division. The Resource Management Act 1991 has had a widespread effect on the processing of documents, plans and new titles in all offices. Te Ture Whenua Maori Act 1993 introduced changes for dealing with the registration of Maori land.

Table 15.1. Land Transfer Documents Processed

Year ending 30 JuneInstruments receivedCertificates of titlePlans lodgedGuaranteed searchesTitle searchesDocument searches
Source: Department of Justice.
19889216425083816415665901051535283141
198910296884725816889821921176421306599
199010076205398718000906031109663283376
1991869864535621821487552919900255932
1992819015503341606593125966078263045
1993775631420511411499211936805258389

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 the land and its resources are used to the best advantage of the community as a whole. Legislation prevents, where there is an operative regional plan or district scheme, the acquisition by overseas interests of land of 4,000 square metres or over designated or zoned as ‘reserve’ for recreation or other purposes, any islands or parts of islands within 150 kilometres of the mainland or any land on the Chatham Islands.

The legislation also covers rural land and farmland of 2 hectares or over. Here a purchase may be approved if specified conditions, ensuring beneficial use of the land from a national viewpoint, or permanent residence, are met. The Land Valuation Tribunal is the judicial authority which controls the sale and lease of land. Before purchase is approved, the tribunal must be assured of the intention of the purchaser to reside in New Zealand and conduct experimental or research work on the land beneficial to New Zealand, and that the purchaser has the ability and means to sustain their work. The tribunal must also be satisfied that the land is not required for any reserve purpose. All the conditions are set out in the Land Settlement Promotion and Land Acquisition Act 1952.

There is a relatively small percentage of land transfers involving leasehold property as opposed to freehold property. The majority of the urban transfers are in the ‘under 2 hectares’ size-group, which is 94 percent of the total. Besides normal residential properties, this size-group includes many business, commercial, and industrial properties, and blocks of flats.

Any land transfer data should be used with caution owing to the great diversity of property transactions covered. These transactions may 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 given in section 20.2, House purchase and mortgage finance.

Recent figures for freehold open-market sales of farmland are shown in . Family sales are excluded, as are leasehold sales and sales for uses other than primary production.

Table 15.2. Market Sales of Freehold Farmland

Half year endedNo. of salesTotal sale priceIndex number*Percentage change from previous half year

*Base (=1000) half year ended December 1989.

Source: Valuation New Zealand.

Dec 19881532306.6882-3.6
Jun 19891996455.2932+5.8
Dec 19892249531.81000+7.2
Jun 19902347652.51163+16.3
Dec 19901939483.91188+2.1
Jun 19911735422.51169-1.6
Dec 19911750390.71181+1.0
Jun 19922392735.41300+10.1
Dec 19921951514.41358+4.5
Jun 19932546952.91601+17.9

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 usage. The land remaining in this tenure is termed ‘Maori customary land’. By the Treaty of Waitangi, the right to purchase land from Maori was reserved to the Crown. Almost all of what had been Maori customary land was converted to other forms of title by one or other of the following processes: (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 found entitled upon an investigation of title. (This process was used instead of process (b) after the introduction of the land transfer system into New Zealand.) Land in titles issued under the latter two processes became known as 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 Maori in addition to their holdings of Maori freehold land. Maori freehold land is subject to the jurisdiction of the Maori Land Court pursuant to the Te Ture Whenua Maori Act 1993 and some general land owned by Maori is subject to certain provisions of that Act.

Maori Land Court. The purpose of the Maori Land Court is to contribute to the administration of Maori land, the preservation of taonga Maori and the promoting the management of Maori land by its owners. The Maori Land Court achieves its purpose by servicing the Maori Land Court and related tribunals, maintaining the records of title and ownership of Maori land and providing information from the Maori Land Court record and the records of Crown and other agencies.

The Maori Land Court, during 1992/93 continued with the development of an Information System Strategy. The strategy recommends implementation by way of two separate programmes. These are:

  • Update the compiled list of owners. This programme will provide for the creation of a computer database of ownerships of Maori land for each title automation of the application process and will simplify many of the manual steps involved in receipting and processing applications of the court such as the typing of minutes and orders and the updating of existing records.

  • Protection of the physical record. This programme will see the conversion of the records of the court to image, either traditional, microfiche or electronic, allowing for the transfer of these valuable documents to the National Archives.

During 1992/93 an imaging pilot was conducted in the Wanganui Maori Land Court to test the suitability of electronic imaging technology.

Table 15.3. Land Administered by Maori Land Court 1993*

Maori Land Court districtsSurveyed blocksTotal blocks administered

*As at 30 June.

Source: Department of Justice.

Whangarei24134813
Hamilton10603465
Rotorua30334750
Gisborne27425014
Hastings11181265
Wanganui32723755
Christchurch13401490
              Total1497824552

Maori land development. The development and use of Maori land for the benefit of Maori owners is a function inherited by Te Puni Kokiri (the Ministry of Maori Development) through the disestablishment of the Iwi Transition Agency. The role of Te Puni Kokiri in Maori land development is the facilitation of the return of all development schemes under the ministry's control to the owners of the land themselves.

Crown-owned lands

Prior to 1987, Crown owned lands were administered by various Crown agencies pursuant to the Public Works Act 1981. Land Act 1948, Reserves Act 1977, National Parks Act 1980 and the Forests Act 1949. Significant reconstruction of the public sector commenced in 1987. This reconstruction included the reorganisation of the government's environmental and public work administrations. Much of the Crown's commercial or productive land was subsequently transferred to State Owned Enterprises. Land currently remaining in Crown ownership now comprises land administered by the Department of Survey and Land Information operating through the Commissioner of Crown Lands, service delivery departments and the Department of Conservation.

Lands administered by the Commissioner of Crown Lands. The Commissioner of Crown Lands is responsible for the administration of residual Crown-owned lands pursuant to the Land Act 1948, Public Works Act 1981 and Crown Forest Assets Act 1989.

Land administered pursuant to the Land Act 1948 comprises unalienated Crown land, pastoral leasehold land, other Crown leasehold lands and endowment leases. At 1 July 1993 there were an estimated 2,121 parcels of unalienated Crown land, 365 pastoral leases/ licences, 158 other Crown leases and 58 endowment leases.

Land administered by the Commissioner of Crown Lands pursuant to the Public Works Act 1981 comprises land no longer required to be held by the Crown for the public work purpose for which it was taken. It includes surplus government properties formerly held by the Crown for hydro electric power development, post offices, public work depots and government office accommodation. At 1 July 1993 there were an estimated 3,452 surplus government properties in the process of being disposed of by the Commissioner of Crown Lands.

Land administered by the Commissioner of Crown Lands pursuant to the Crown Forests Act 1989 comprises Crown Forest land over which Crown Forestry licences have been issued. At 1 July 1993 there were some 98 Crown Forestry licences.

All Crown Forest lands and a significant number of the other lands administered by the Commissioner of Crown Lands are required to be held in Crown ownership pending the Crown's resolution of Maori land claims lodged pursuant to the Treaty of Waitangi Act 1975 or the completion of direct negotiations between the Crown and claimants. The commissioner also administers Treaty of Waitangi landbanks, pending completion of negotiations between the crown and claimants.

Lands administered by service delivery Crown agencies. A significant quantity of Crown owned lands are held by service delivery Crown agencies. These lands are held for government works pursuant to the Public Works Act 1981 and other functional legislation including education, defence and law and order.

Lands administered by the Department of Conservation. The department administers national, maritime and forest parks, wilderness areas, marginal strips around lakes and rivers and more than a thousand other reserves of different kinds. It also protects privately owned land under special arrangement with the landowner. The department is responsible for conservation in New Zealand's sub-antarctic islands and the Ross Dependency in Antarctica. For more information see section 15.3 National parks and reserves.

Records of lands of the Crown. Information on the status of, and administrative responsibilities for, lands of the Crown is a matter of public record. Where such lands are registered under the provisions of the Land Transfer Act 1952, current records of registered interests in that land are held by the Land and Deeds Division of the Department of Justice. However, where such lands are unregistered the most comprehensive records available are held by the Department of Survey and Land Information.

Records relating to the new status and administration of unregistered lands of the Crown are also held by the Department of Survey and Land Information. These records are in the form of plans and schedules prepared to record allocation decisions taken by Government. A set has also been prepared and certified correct by Chief Surveyors pursuant to section 62 of the Conservation Act 1987. These plans and schedules will remain the prime records for these unregistered lands until such time as they are registered under the provisions of the Land Transfer Act 1952. Records of the allocated lands which were subject to the Public Works Act 1981 are also held by the Department of Survey and Land Information.

Land Corporation. The Land Corporation Limited (Landcorp) came into being on 1 April 1987, primarily to handle the Government's commercial farming and land management operations previously undertaken by the Department of Lands and Survey. The corporation has two main operating subsidiaries, Landcorp Farming and Landcorp Property and an investment subsidiary, Landcorp Investments. These are supported by the parent company which incorporates finance and other activity.

The farming subsidiary is responsible for the corporation's farming operations involving some 1.6 million stock units on 159 properties spread throughout New Zealand. Among other projects, the corporation is involved in animal breeding schemes covering a range of animal species.

Landcorp Investments is responsible for some 4,695 leases, licences, and other financial instruments taken over from the Crown.

Landcorp Property is a fee-based property portfolio management company. It is responsible for the administration of the South Island high country pastoral leases under a management agreement with the Crown, the development and sale of corporation lands, and the provision of consultancy services in both the rural and urban fields. Its real estate branch handles the purchase and sale of properties for government agencies and private organisations.

The corporation's head office is in Wellington. There are also 18 property district offices and four farming regional offices.

Valuation of land

Equitable land values are needed for:

  • Levying rates by local authorities.

  • Apportioning rating levies over contributing local authorities.

  • Lending money on mortgage by government agencies and by trustees under the Trustee Act 1956.

  • Assessing stamp, estate and gift duties.

  • Fixing prices for transfers of land to or from the Crown.

Valuation New Zealand assesses values of real estate for taxation and other central government purposes, and for local rating. The work of Valuation New Zealand is directed by the Valuer-General. The actual work of valuing is done by valuers under the supervision of district valuers. Valuers examine each property and estimate:

  1. The capital value of the whole property (land and buildings plus other improvements);

  2. The value of the land as if it were vacant; and

  3. The value of the improvements (if any) upon the land.

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 or locality. ‘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, currently every three years. Objections can be lodged against revaluations, and taken to the Land Valuation Tribunal. Special valuations are made for particular purposes such as loans by government agencies or trustees and the assessment of stamp, gift and estate duties.

Rating valuations. By law, every local authority rating on the basis of either the capital value or land value frames their valuation roll from the district valuation roll. A third major rating system is the annual (rental) value system, and 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. Valuation rolls for annual value rating are prepared either annually or three-yearly.

The Rating Powers Act 1988 makes provision for equalisation of values as a basis for the equitable adjustment of rates and levies between a number of local authorities or between parts of a territorial or regional authority if they have been revalued at different times.

Valuers Registration Board. The Valuers Act 1948 provides for the protection of the public through the registration of valuers of land. There is a registration board under the chairmanship of the Valuer-General, which sets standards of education and practical experience for registration. The board maintains a register of those valuers who meet the required standard and issues annual practising certificates to public valuers. In addition the board exercises disciplinary power, where a valuer is charged with incompetent, improper or unethical behaviour. Of the 1,729 valuers registered as at 31 August 1993, 1,017 held annual practising certificates. The remaining 712 registered valuers are either retired, overseas, or do not make valuations for members of the public.

15.2 Environmental and resource management

New Zealand occupies approximately 27.1 million hectares. It is predominantly mountainous and hilly country and can be categorised in terms of slope and altitude. Over two-thirds (18.5 million hectares) slopes at greater than 12 degrees and nearly half at greater than 28 degrees. Approximately three-fifths of the country (16 million hectares) is over 300 metres above sea level, with one-fifth over 900 metres. It has been estimated that in pre-Polynesian times 78 percent of the total area (21 million hectares) was under forest cover, 14 percent was made up of the alpine zone, and the balance was drylands, lakes, and swamps. Polynesian and European settlement 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 human needs.

Table 15.4. Land Use Today*

Type of landAreaPercentage of total area

*These estimates are approximate only and at slight variance with those given in , which gives a more accurate estimate of the total land area of New Zealand.

Source: Ministry of Forestry.

 hectares (million) 
Total forested land7.527.4
Pasture and arable land13.950.7
Other land use5.620.4
Minor islands0.10.4
Lakes, rivers, etc0.31.1
              Total area of New Zealand27.4100.0

Vegetation, wildlife and other aspects of the New Zealand environment are described in chapter 1, Geography.

Soils

Soil is a product of its environment: its composition depends on the parent ingredient, the climate, the length of time it has weathered, the topography, and the vegetation under which it has formed. The complex soil pattern of New Zealand is a result of the many different kinds of rock, and the various conditions under which the soils have formed. Climate varies from such extremes as the subtropical climate of North Auckland, the cold uplands of the alpine regions, and the semi-arid basins of Central Otago. The country's topography is equally varied, with 50 percent of the land classifiable as steep, 20 percent as moderately hilly, and only 30 percent as rolling or flat. The natural vegetation ranges from kauri forest to subalpine scrub, and from tussock grassland to broadleaf forest. Occasionally occurrences such as river floods on alluvial plains, sand drifts, or a volcanic ash eruption interrupt and alter the pattern of soil development.

Table 15.5. Classification of New Zealand Soils

RegionSoilsVegetation and land use
North Auckland Peninsula and Auckland regionLarge areas of infertile gumland soils formerly covered with kauri. Loams and clay from volcanic rocks.Patchy land use. Exotic forests on sand country and remnant kauri forest on uplands. Intensive dairying on rolling lands around Kaipara Harbour, Whangarei, Kaikohe and Dargaville. Sheep and beef on hill country.
Bay of Plenty-Waikato-Thames-Hauraki PlainsVolcanic ash covers much of the area, giving rise to deep, 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 on 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 as native forest. Extensive exotic forests. Topdressing 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 diarying 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 farming 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 north Westland. Dairying on river flats.
CanterburyVery thick layer of gravel covered by variable thicknesses 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-country 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 rolling areas inland, and intensive fattening on plains. Dairying on plains near Invercargill.

Worm farmer, Havelock North.

Environmental planning framework

In October 1991 the Resource Management Act became law in New Zealand. The Act is, first and foremost, a means of planning how the people of New Zealand are going to use, distribute or preserve natural and physical resources. These resources include rivers, lakes, coastal and geothermal areas; land, including soils, forests and farmlands; the air; and the constructed environment—buildings, bridges and other structures in cities and towns.

The Act calls for a new attitude to law. Instead of prescribing what activities should or should not be allowed, the Act places the emphasis on the effect a proposed activity will or might have on the environment. The Act also provides for the community to become involved in making decisions about resource management.

The purpose of the Act is to promote the sustainable management of natural and physical resources. This means the environment is looked at as a whole when authorities are planning and making decisions. The focus of the legislation is on the effects proposed activities will have on the environment—not, as was in the past, on whether an activity was or was not allowed.

The Act says that, to the greatest extent possible, people should be allowed to make their own choices as to the development, use or protection of natural and physical resources. But they must do this with the purpose of the Act in mind. That purpose is to promote sustainable management. Therefore the key role of planners and decision makers should be to minimise adverse effects so that the sustainability of New Zealand's resources is not jeopardised.

It is in the process of formulating these plans and policies that members of the community have an important opportunity to have their say about what they want to happen in their area. The Act encourages councils to seek the views of their residents, iwi and business people when developing resource management plans.

National policies. In the preparation, implementation, and administration of regional policy statements, regional plans and district plans the following matters—which are declared to be of national importance—must be recognised and provided for:

  • The preservation of the natural character of the coastal environment (including the coastal marine area), wetlands, lakes and rivers and their margins, and the protection of them from inappropriate subdivision, use and development;

  • The protection of outstanding natural features and landscapes from inappropriate subdivision, use and development;

  • The protection of areas of significant indigenous vegetation and significant habitats of indigenous fauna;

  • The maintenance and enhancement of public access to and along the coastal marine area, lakes, and river; and

  • The relationship of Maori and their culture and traditions with their ancestral lands, water, sites, waahi tapu, and other taonga.

There is no priority suggested in the order of this list.

Those exercising functions and powers are required to have particular regard to other matters in achieving the purpose of the Act. These matters are as follows:

  1. Kaitiakitanga (the exercise of guardianship);

  2. The efficient use and development of natural and physical resources;

  3. The maintenance and enhancement of amenity values;

  4. Intrinsic values of ecosystems;

  5. Recognition and protection of the heritage values of sites, buildings, places or areas;

  6. Maintenance and enhancement of the quality of the environment;

  7. Any finite characteristics of natural and physical resources; and

  8. The protection of the habitat of trout and salmon.

Again, there is no priority suggested in the order of this list.

The Minister of Conservation will provide a management framework for the coast through New Zealand coastal policy statements. The minister's functions and powers also include approval of regional coastal plans and, in certain situations, a consent-granting function.

Sustainable management. In the Act, sustainable management means ‘managing the use, development, and protection of natural and physical resources in a way, or at a rate, which enables people or communities to provide for their social, economic and cultural well-being and for their health and safety while:

  • Sustaining the potential of natural and physical resources (excluding minerals) to meet the reasonably foreseeable needs of future generations.

  • Safeguarding the life-supporting capacity of air, water, soil and eco-systems.

  • Avoiding, remedying or mitigating any adverse effects of activities on the environment.’

An important aspect of this definition is that sustainable management should not be compromised by social or economic goals.

Truckloads of possums killed during one weekend's ‘big hunt’ Rotorua.

Regional policies and plans. Regional councils have a pivotal role in resource management administration. Each region has to prepare a regional policy statement, which sets out the objectives for managing all resources of the region in an integrated manner. Regional plans deal with specific resource management issues. They are not compulsory, yet there may be more than one.

Regional councils have been given primary responsibility for the management of water, soil, geothermal resources and pollution control. In addition, regional councils will have responsibility for regional aspects of natural hazards mitigation, soil conservation and hazardous substances. The latter does not affect existing functions of other bodies under legislation not affected by the Resource Management Act.

They also have joint control (with the Minister of Conservation) of various resource management issues in the coastal marine area.

District planning. Territorial authorities (district and city councils) have primary responsibility for land use management (including those on the surface of water, subdivision and noise control). They complement the role of regional councils on some issues such as natural hazard mitigation and hazardous substances.

Matters to be considered by the territorial authority in preparing district plans include the preservation and conservation of the amenities of the district, and buildings, trees, bush, plants, landscapes, objects, or areas of architectural, historical, scientific, wildlife, visual, or other interest. Each territorial authority must have one district plan to help them carry out their functions. The plan must be consistent with any national policy statement or the regional policy statement. The district plan may include rules which prohibit, regulate or allow activities.

Resource consents. A resource consent gives a person or organisation permission to develop a natural or physical resource, and/or carry out an activity that affects the environment in some way for a stated period. Resource consents replace the many different permissions granted under the previous law.

Under the Resource Management Act there are five types of resource consent:

  • Land use consent (granted by district and sometimes regional councils).

  • Subdivision consent (district).

  • Water permit (regional).

  • Discharge permit (regional).

  • Coastal permit (regional).

All applications for consents follow the same procedures. The basic rule is that the applicant, whether a landowner intending to subdivide, or a farmer needing water for irrigation, should check to see if a consent is required, and if so what type and category. The applicant will also need to work out what impacts the proposal is likely to have on the environment and submit this assessment to the consent authority. The applicant may also have to explain what consultation has taken place with any persons who may be affected by the proposal.

Some of these resource consent applications will require public notification. This gives the community a chance to consider the application and make a submission if they wish.

Public involvement. The Act provides for members of the community to take part in managing the resources of their area. Therefore getting involved with the local authority planning process at the right time is a crucial matter if a person wishes to have an input into the decisions.

Some of the places where a person can have an input are:

  • Initial consultation by local authorities when they are preparing policy statements and plans.

  • Submissions to local authorities after they have notified the public about policy statements or plans, plan changes and resource consents.

In addition many councils provide opportunities for input in the initial stages of preparing policy statements and plans before they formally notify.

Use of land. The Resource Management Act 1991 requires councils to address the effects of activities rather than the activity itself. The presumption is that people can use their land in the way they wish provided there are no adverse environmental effects. These constraints must be clearly identified in policy and plans. The Resource Management Act also seeks to address past errors in the destruction of areas of natural beauty, the loss of historic areas of cities and the destruction of neighbourhood communities. A key to this is the inclusion of ‘amenity values’ in the definition of ‘environment’. By providing for amenity values it is possible for policies and plans to consider ‘those natural or physical qualities and characteristics of an area that contribute to people's appreciation of its pleasantness, aesthetic coherence, and cultural and recreational attributes’. It is over to councils to identify the appropriate ways to maintain those qualities and characteristics, of which controls on the built environment may be one.

Similarly, by identifying as a ‘matter of national importance’ the relationship of Maori to their ancestral lands, water, sites, waahi tapu, and other taonga (treasures), it is possible for policies and plans to cater for Maori-related uses on Maori land. The most prominent of these are the marae and papakainga housing. In the first instance, rules in a plan could allow for the construction of the marae itself. Other rules for papakainga housing would provide for residential development on Maori land which is generally in multiple ownership.

'Reasonable use' of land is covered in section 85 of the Act. The phrase carries its commonly understood meaning plus an extension under this section. This extension ensures that uses which do not impact on people, other than the landowner, or the environment are classed as reasonable uses. Those whose land has been rendered incapable of reasonable use can challenge the provision during plan review or on an application for a plan change.

Hazardous substances and new organisms. The Resource Management Act provided for the reform of laws regarding the management of hazardous substances and new organisms and for the establishment of an agency to administer the reformed legislation. It has since been decided this is to be a regulatory authority to be called the Environmental Risk Management Authority.

Further additional measures are required to achieve this reform. It is considered necessary because the existing legislation is recognised as being outdated, complex or, in some cases, non-existent. The intention is to both minimise the risk from hazardous substances and new organisms while retaining their benefits, and to improve the efficiency of current assessments of controls for hazardous substances and new organisms.

The principles for the new legislation require that all hazardous substances and new organisms are assessed prior to their introduction, development or manufacture in New Zealand, and that they all will follow a similar assessment process. Assessment is to be publicised and open to public input, and the decisions made will also be publicised.

Management is to focus on the adverse effects of hazardous substances and new organisms on the health and safety of people and the environment rather than just on the end use to which they may be put. Hazardous substances are to be controlled at points in their life cycle where the environment and health and safety of New Zealanders are at risk. The legislation will also ensure that New Zealand's obligations under international agreements relating to hazardous substances and new organisms are adhered to.

In June 1993 the Government announced it hoped to introduce the proposed legislation into the House before the end of the year.

Pupils in amongst the plastic milk containers at their school's recycling collection point.

Waste management. The production of waste and its impact on people, the economy and the environment is a matter of long-standing public concern in New Zealand. The Resource Management Act provides a framework for dealing with these impacts and the management of all wastes to meet the objectives of sustainable management of the environment. As well, the Government has recently agreed to a waste policy which is focused on reducing resource use and waste generation.

New Zealand's waste management policy is to:

  • Ensure that as far as practicable, New Zealand's waste generators should meet the costs of the waste they produce; and

  • Encourage the implementation of the internationally recognised hierarchy of reduction, reuse, recycling, recovery and residual management by all involved in waste generation and management in New Zealand.

The implementation of the policy is consistent with the purposes and principles of Part II of the Resource Management Act 1991 including the promotion of sustainable management of natural and physical resources.

The Ministry for the Environment is the lead agency for waste management policy at central government level, and in performing this function the ministry will co-ordinate waste management policies produced by other agencies in meeting their responsibilities. A national data base to provide statistical information on waste is being established by Statistics New Zealand. Investigations (carried out in consultation with relevant government departments) are to be made into regulatory and economic mechanisms to back up the voluntary initiatives in the event that they fail to result in adequate internalisation of the costs of waste.

Waste reduction targets are to be negotiated with business sectors to encourage voluntary initiatives in waste reduction and resource recovery to achieve the targets. Cleaner production methods have already been implemented by a number of companies and organisations. ‘Cleaner production’ means:

  • Avoiding or reducing the amount of waste produced.

  • Using energy and resources efficiently.

  • Producing environmentally sound products and services.

  • Achieving less waste, fewer costs and higher profits.

The links between cleaner production principles and enhanced economic performance are well documented. Cleaner production, therefore, offers New Zealand businesses the opportunity to improve their competitiveness in New Zealand and international markets.

To assist with the implementation of the waste reduction policy, the Ministry for the Environment has allocated part of its research fund towards work which will demonstrate the benefit of cleaner production techniques. The goal is to reduce the adverse impact of production and service activities on the environment.

Mineral exploitation

The impact of mining, prospecting and exploration of minerals is controlled through the Resource Management Act 1991 by local authorities. Controls are imposed through plans and resource consents established by that Act. They control the environmental impact of mining activities, including the rehabilitation of land.

The Minister of Energy issues permits allocating Crown-owned minerals, or the rights to search for such minerals, under the Crown Minerals Act 1991. These permits will include provisions relating to rentals and work programmes. The basis for these rules may be set out in a Minerals Programme prepared by the minister.

The Crown Minerals Act provides for land access arrangements to be made with the owner of the surface estate in order to access the minerals.

Legislative control of Crown-owned mineral production is contained in the Crown Minerals Act. The administrative agency is the Resource Allocation Agency in the Ministry of Commerce. Other environmental consents from the local authority may also be required under the Resource Management Act.

Water and soil conservation

The administration of water and soil resources is being achieved through the Resource Management Act, with protection against flooding and erosion control provided by the Soil Conservation and Rivers Control Act 1941. Both Acts are administered by the Ministry for the Environment.

The management of water use, control of rivers, mitigation of erosion, assessment of coastal, landslip, and flooding hazards, and the protection of scenic and recreational waterways are achieved largely through these Acts by the work of regional councils. Government subsidies are provided to assist a limited range of regional council resource management activities. This assistance is targeted in terms of regional ability to pay, and focuses on new and devolved functions under the Resource Management Act; the development of environmental quality standards; and the assessment of options for risk management associated with contaminated sites, natural hazards and waste management.

Water resources. It has been estimated that New Zealand's consumption of water approaches 2,000 million cubic metres per year. Households use 210 million cubic metres, industry 260 million cubic metres, livestock 350 million cubic metres, and irrigation 1,100 million cubic metres per year. Approximately 87 percent of the population is supplied by public water-supply systems. The rest rely on an independent domestic supply (rainwater collecting, aquifer bores, etc). Industry obtains about 33 percent of its requirements from public supply systems and 66 percent from its own sources. These figures do not include the use of water for hydro-electric generation, which exceeds 100,000 million cubic metres per year. 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 (the last station) is over 7,000 million cubic metres per year. Thus the total irrigation, agricultural, industrial, and domestic water consumption could be supplied three times over by the Waikato River alone, at Karapiro.

In terms of total water resources, the country has an estimated 300,000 million cubic metres per year, although these are by no means evenly distributed. High mountains, especially in the South Island, create substantial rain-shadow areas. In a few areas, annual rainfalls of over 10,000 mm have been measured, while in others as little as 340 mm may fall in a year.

In some parts of the country, including the Canterbury Plains, the Heretaunga Plains in Hawke's Bay, and the Waimea Plain near Nelson, underground water is an important resource. The cities of Christchurch, Lower Hutt, Napier, and Hastings draw at least some of their domestic and industrial supplies as well as irrigation water from such sources. Management of underground water, and its protection from contamination, is an increasing concern of regional authorities in these areas.

Water quality. Maintenance of water quality is also the responsibility of regional councils within national standards. The Resource Management Act controls contamination of water (as well as discharges onto or into land and into air) through a discharge permit. A schedule to the Act also establishes a classification system based on water use (eg recreational activities). Regional policy statements and (optional) regional plans are the statutory vehicle for water quality policies, objectives and rules. Water permits may be restricted or suspended in order to maintain minimum standards of quality and water flow.

The Resource Management Act continues earlier legislation which provided for water conservation orders to be placed over rivers, streams or lakes to protect outstanding wild and scenic, recreational, fisheries, scientific or other in-stream values. An order can contain two types of provisions: it can preserve a water body in its natural state, or it can protect certain features by placing restrictions on the issue of future water permits. Orders have been placed over the Motu, Rakaia and Manganui-o-te-ao Rivers, and Lake Wairarapa.

Irrigation. Irrigation was initially practised in New Zealand as a drought protection measure and was concentrated in such areas as Central Otago and South Canterbury where high soil moisture deficit is experienced during summer, due to hot drying winds. More recently, irrigation has been used as a beneficial farm management tool with schemes in North Canterbury and 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 234,000 hectares are now irrigated, by community- and government-supported schemes. Of this area, 218,000 hectares are irrigated for pastoral purposes, mostly in the South Island, and 16,000 hectares are irrigated for horticulture, almost entirely in the North Island. Since 1960 central government has supported 26 new irrigation schemes designed to irrigate approximately 73,000 hectares. Of these, 13 schemes were developed for pastoral and/or crop production, two for combined pastoral and horticultural development and nine 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.

Private irrigation undertaken by individuals or groups of farmers has been practised over much of the country, often with the assistance of concessionaire interest rates. 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.

River control. River control projects carried out by councils often serve both the objectives of preventing damage by erosion and protecting property from flood damage. River training works are designed to give the river channel a stable alignment that will prevent bank erosion. Stopbanks are constructed to provide flood relief to low-lying and, mostly, highly-productive agricultural lands.

A catchment-wide approach to water and soil problems is encouraged. Comprehensive catchment control schemes embrace land retirement from grazing and protection planting of trees in the upper catchment; bank protection works in the middle reaches; and flood alleviation and drainage works in the lower reaches of a river. Increasingly, flood plain management planning is being adopted to identify and mitigate risks associated with flooding.

Soil conservation. 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.

Successful techniques 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.

Hot water weed-killing invention.

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.

The problems of water pollution are being addressed by regional councils through the Resource Management Act 1991. The Ministry of Agriculture and Fisheries (through the Fisheries Act), and the Department of Conservation (through the Wildlife Act), also have statutory powers to control water pollution. Both air pollution and noise control are included in the Resource Management Act. Within the territorial sea and harbours, the Marine Pollution Act 1974 controls the discharge or dumping of oil or any other substance declared a pollutant. There is also a contingency plan for cleaning up oil pollution in coastal waters and on the shore.

Pollution of rivers and lakes can be caused by soil erosion, farm run-off, industrial waste, or domestic sewage. The Resource Management Act 1991 provides for the control of waste discharges through discharge permits. 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 (eg Lakes Rotorua and Horowhenua) have 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.

Organic chemical pesticides and herbicides are widely accepted as essential for efficient agriculture and horticulture. The use of such chemicals is controlled by the Pesticides 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. The board also gives guidance on the application of those chemicals.

New Zealand's geography is, in general, favourable to the dispersal of air pollutants, although some areas, such as Christchurch, suffer from poor air quality due to local climatic conditions. The Clean Air Act 1972 established the principle of air pollution control on industry by the best practicable means. Provision was also made for the establishment of clean air zones. Clean air zones have been established in Christchurch and these regulatory provisions have been maintained through the Resource Management Act 1991.

Global environmental issues

Some of the most pressing environmental problems extend beyond national borders. They include climate change as a result of the enhanced greenhouse effect and ozone depletion. They are known as global environmental issues. No one country is responsible for them, but all countries ultimately suffer the consequences. New Zealand's comparative isolation does not make it any less vulnerable.

Greater awareness of the importance of global action on environmental matters had led to increasing international activity in recent years. The international debate involves striking the right balance between the twin imperatives of environmental protection and economic activity, in order to provide for future generations and to protect the Earth's resources and biodiversity. The goal is to achieve sustainable development.

Since 1990 the focal point for international consideration of these issues has been preparations for the United Nations Conference on Environment and Development (UNCED), held in Rio de Janeiro, Brazil in June 1992. At a series of preparatory meetings and in negotiations on conventions on biodiversity and climate change, the full range of environmental and economic development issues were addressed.

UNCED brought together governments, business, non-government organisations, indigenous people, women and youth in unprecedented numbers. The Earth Summit, a two-day meeting of political leaders during UNCED, brought together the largest number of heads of government or state and senior politicians ever assembled.

UNCED produced the Rio Declaration, a list of principles for governments, individuals and the world community to follow; Agenda 21, a forward looking action plan setting benchmarks for behaviour and identifying directions in which the world community should move; and a statement of Forest Principles for the protection and sustainable management of all of the world's forests. The Framework Convention on Climate Change and the Convention on Biological Diversity were opened for signature by governments, with over 150 countries doing so at Rio de Janeiro.

New Zealand played its full part in the UNCED process. The development of the New Zealand approach involved consultation with a wide range of interests, including government departments, environment and development groups, business interests and Maori. New Zealand's delegation, led by the Minister for the Environment, also reflected this diversity of interest in UNCED issues.

As the UNCED process demonstrates, New Zealand has wide-ranging interests in international environment work which it vigorously pursues. Priority issues have included climate change, ozone depletion, Antarctica, forestry, waste issues, driftnet fishing, the protection of marine mammals, sustainable resource use and South Pacific environment matters.

Environmental policy development, which is led by the Ministry for the Environment and the Ministry of Foreign Affairs and Trade, involves a wide range of government agencies and, as highlighted by the UNCED process, appropriate wider consultation. The Environment Division of the Ministry of Foreign Affairs and Trade, set up in 1990, advises government on international aspects of global environment issues, including representation of New Zealand interests and concerns in negotiations. The Ministry for the Environment established in 1986 provides advice on the scientific and domestic aspects of global environmental issues, as well as on purely domestic matters.

During the course of 1993 New Zealand ratified the Framework Convention on Climate Change and the Convention on Biological Diversity. It was the third country (the first developed one) to ratify the London Amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer. It took the decision to participate in the 1993-1996 replenishment of the Global Environment Facility which provides funding for projects of a global nature. New Zealand was actively engaged in negotiations on amendments to the London Convention on the Prevention of Marine Pollution by Dumping of Wastes, 1972. It also participated as a Governing Council Member at the 17th Session of the United Nations Environment Programme (UNEP).

New Zealand has been particularly active in questions relating to trade and environment including discussions held at the OECD and in GATT.

New Zealand recognises the special vulnerability of South Pacific countries to global environment problems. Through the South Pacific Regional Environment Programme (SPREP), the South Pacific Forum and other international environmental negotiations New Zealand has sought to support Pacific Island countries and to ensure their concerns are heard. It has been particularly active in preparations for the Global Conference on the Sustainable Development of Small Island Developing States which is to be held in Barbados in April 1994.

Domestic implications. The Ministry for the Environment, in addition to its Resource Management Act work, deals with the domestic implications of global environmental issues through the Environment Policy Directorate (EPD).

EPD co-ordinates the inter-related work of sustainable management of energy and climate change, and has a prime role in providing advice to government on moves to reduce carbon dioxide emissions. Having signed the Framework Convention on Climate Change (FCCC) at the United Nations Conference on Environment and Development (UNCED) in June 1992, New Zealand, along with other signatory nations, has an obligation to reduce its greenhouse gases.

Scientist inside the portable UV measuring shed at NIWA research station, Lauder.

The Government's first steps towards lowering New Zealand's carbon dioxide emissions were announced in July 1992. These were reinforced in June 1993 with the Government's commitment to a strategic programme to reduce nett carbon dioxide emissions to 1990 levels by the year 2000, and to maintain them at that level beyond that date. The interim strategy involves energy efficiency measures and incentives, encouraging forest planting to absorb carbon dioxide as a temporary measure, and the investigation of options to use renewable energy.

Further work is continuing on a package of policy measures to reduce carbon dioxide emissions, along with a comprehensive strategy to reduce all greenhouse gases and adapt to the effects of climate change.

Advice to government on achieving sustainable provisions and use of energy, including policies relating to energy and the environment, is also provided by the directorate.

EPD is also responsible for the State of the Environment Reporting (SER) project which aims to develop regular monitoring and reporting systems on the nation's environment. Government has recognised that such a system is necessary to help New Zealand meet international environmental obligations and to enable high quality environmental decisionmaking. The SER project's main tasks are the production of the nation's State of the Environment Report and the development of a set of core environmental indicators. This latter task involves collaboration with Statistics New Zealand and the Department of Survey and Land Information, as well as the large number of regional and territorial organisations which have monitoring responsibilities under the Resource Management Act.

EDP is responsible for following up the domestic work arising from UNCED, in particular the implementation of Agenda 21, the framework of action to help all nations achieve sustainable development into the 21st century.

15.3 National parks and reserves

The Department of Conservation administers the majority of publicly-owned land in New Zealand that is protected for scenic, scientific, historic and cultural reasons, or set aside for recreational purposes. More than 8 million hectares—nearly 30 percent of the nation's total area—are administered by the department.

There are 12 national parks, covering more than 2 million hectares, 20 forest parks, covering some 1.7 million hectares, and nearly 4,000 reserves, including some 3,000 hectares of protected private land that have been set aside for scenic, scientific or ecological reasons. The department also has responsibility for the preservation and management of wildlife, and has a role in management of the coastal marine area.

National parks

The National Parks Act 1980 provides for the establishment of national parks or reserves in areas where the scenery is of such distinctive quality, or the natural features or ecological systems so important scientifically that their preservation is in the national interest. The Act also provides for the public to have freedom of entry and access to the parks, though this is subject to such conditions and restrictions as are necessary for the preservation of native plants and animals or for the welfare of the parks in general. Access to specially protected areas constituted under the Act is by permit only.

The Act states that National Parks are to be maintained as far as possible in their natural state so that their value as soil, water and forest conservation areas is maintained. Native plants and animals are to be preserved and introduced plants and animals are to be removed if their presence is seen to conflict with the aims of the Act. Development in wilderness areas established under the Act is restricted to foot tracks and huts essential for wild animal control or scientific research. The Act allows the Department of Conservation to provide houses for park staff, accommodation houses and other buildings, hostels, huts, camping grounds, ski tows and similar facilities, parking areas, roading and tracks within the parks. Accommodation, transport and other services at entry points to the parks are provided by the department, other government agencies, voluntary organisations and private enterprise. Some services within the parks, such as guided walks and skiing instruction, are provided by private firms under concessions from the department.

New Zealand's national parks are listed, from north to south, below.

Tongariro National Park. (79,598 hectares, established 1887), was New Zealand's first national park. It includes the three active volcanoes, Ruapehu, Ngauruhoe and Tongariro.

Urewera National Park. (212,675 hectares, established 1954), together with neighbouring Whirinaki Forest Park, is the largest remaining area of native forest in the North Island. Lake Waikaremoana is noted for its scenic shoreline.

Egmont National Park. (33,543 hectares, established 1900), comprises all the land in a 9-kilometre radius of the Taranaki/Mount Egmont summit and some outlying areas to the north. The symmetrical cone of the dormant volcano is a provincial landmark.

Whanganui National Park. (74,231 hectares, established 1986), borders the Wanganui River. It incorporates areas of Crown land, former State Forest and a number of former reserves. The river itself is not part of the park.

Abel Tasman National Park. (22,541 hectares, established 1942), has numerous tidal inlets and beaches of golden sand along the shores of Tasman Bay. It is New Zealand's smallest national park.

Nelson Lakes National Park. (101,753 hectares, established 1956), is a rugged, mountainous area in Nelson Province. It extends southwards from the forested shores of Lakes Rotoiti and Rotoroa to the Lewis Pass National Reserve.

Paparoa National Park. (30,560 hectares, established 1987), is on the West Coast of the South Island between Westport and Greymouth. It includes the celebrated Pancake Rocks at Punakaiki.

Arthur's Pass National Park. (99,270 hectares, established 1929), is a rugged and mountainous area straddling the main divide of the Southern Alps. It includes at least 30 peaks more than 1,800 m in height.

Westland National Park. (117,547 hectares, established 1960), extends from the highest peaks of the Southern Alps to a wild remote coastline. Included in the park are glaciers, scenic lakes and dense rainforest, plus remains of old gold mining towns along the coast.

Mount Cook Park. (70,013 hectares, established 1953), is an alpine park, containing New Zealand's highest mountain, Aoraki/Mount Cook (3,764m), and longest glacier, Tasman Glacier (29 km). A focus for mountaineering, ski touring and scenic flights, the park is an area of outstanding natural beauty. The Mount Cook and Westland National Parks have together been declared a World Heritage Area.

Mount Aspiring National Park. (355,500 hectares, established 1964), is a complex of impressively glaciated mountain scenery centred on Mount Aspiring (3,036 m), which is New Zealand's highest peak outside Mount Cook National Park.

Fiordland National Park. (1,251,924 hectares, established 1952), is the largest national park in New Zealand and one of the largest in the world. The grandeur of its scenery, with its deep fiords, its lakes of glacial origin, its mountains and waterfalls, has earned it international recognition as a World Heritage Area.

Forest parks

The Department of Conservation administers 20 forest parks formerly administered by the New Zealand Forest Service. Their primary purpose, in most cases, is to protect the catchments of forested mountain ranges throughout the country, but they also provide a less restricted range of recreational activities than national parks and reserves, including tramping, camping, fishing, and shooting for a variety of game.

The forest parks contain a varied landscape including coastal areas, lakes, mountains, tablelands and tussock grasslands within an approximate area of 1.8 million hectares.

Reserves

National reserves protect areas of outstanding natural beauty or scientific or ecological importance. They are second only to national parks in the degree of protection they offer.

Other protected areas include scenic, nature, scientific, historic and recreation reserves, wildlife reserves, protected private land and land protected under various conservation and open space covenants.

There are more than 1,200 scenic reserves with a total area in excess of 300,000 hectares. They include areas of scenic interest such as native forests, limestone and glow-worm caves, thermal areas, coastal areas, lakes, rivers, waterfalls and scenic vantage points.

Nature reserves are established for the preservation of native plants and animals and generally consist of areas where rare plants are growing or which supply a suitable habitat for rare birds or other animals. Some of the 50-odd reserves in this category are on the mainland but most are on offshore or outlying islands.

The Snares Islands, Auckland Islands, Campbell Island, Antipodes Island and the Bounty Islands together form the Subantarctic Islands National Reserve of approximately 74,885 hectares in area. They are the major breeding places for several species of birds and animals, including the yellow-eyed penguin, the royal albatross and the Hooker's sealion. The threat of rats or other predatory animals accidentally being introduced to the islands has led the Department of Conservation to allow access by permit only. Previous experience has shown that one pregnant rat arriving on a previously rat-free island could lead to the extinction of a vulnerable species.

Scientific reserves are generally smaller areas reserved to protect examples of rare or endangered plants or animals or unique geographic features for scientific research or education. Entry may be prohibited if this is considered necessary to prevent disturbance.

Historic reserves include Maori rock drawings, the sites of prehistoric fortifications, the landing places of Captain Cook, the sites of engagements during the New Zealand Wars, and buildings of historic importance. The Department of Conservation and the New Zealand Historic Places Trust co-operate closely in the investigation and administration of sites and buildings of historical or archaeological interest (see section 11.2, The national collection).

Recreation reserves include public domains, camping grounds and other public recreational areas administered by the Department of Conservation.

Wildlife reserves may be proclaimed over land of any tenure, prohibiting certain actions in respect of wildlife, but without affecting land ownership. There are three classes:

  • Wildlife sanctuaries preserve wildlife habitats from human or animal disturbance and protect wildlife species that are low in numbers or confined to sensitive habitats. The public may be partially or totally excluded.

  • Wildlife refuges provide havens for any class of wildlife. The public have freedom of access but firearms and domestic animals are prohibited.

  • Wildlife management reserves protect areas for the conservation and management of wildlife. The public has access for a variety of activities, including the hunting of game.

Marine reserves and parks

At present there are seven marine reserves, the Cape Rodney—Okakari Point Marine Reserve (2,959 hectares), Kapiti Marine Reserve (2,167 hectares) and the Poor Knights Islands Marine Reserves (2,410 hectares), Whanganui A Hei (840 hectares), Tuhua (Mayor Island 1,060 hectares), Long Island (619 hectares) and the Kermadec Islands (745,000 hectares). Marine resources may not be extracted from a marine reserve.

There are three marine parks at present, Mimiwhangatangata Marine Park located on the north-east coast of Northland north of Whangarei; Tauharanui Marine Park located in the Hauraki Gulf north of Auckland; and the Sugar Loaf Islands Marine Park located off the New Plymouth coast.

Fire prevention

The Department of Conservation is responsible for fire protection in national parks and reserves, forest parks, unalienated Crown land and other state-owned areas, together with a 1,500 metre fire safety margin adjoining all these lands.

Protected Natural Areas Programme

In addition to administering areas which are already under some form of protection, the Department of Conservation is responsible for augmenting the network of protected areas through the Protected Natural Areas Programme. The programme operates in two phases. First there are district surveys to identify the unprotected areas that best represent the range of natural ecological diversity characteristic of the district. This is followed by an implementation phase, working towards effective protection of these areas, under either public or private ownership.

Forest funds

The Forest Heritage Fund and Nga Whenua Rahui were established as part of the Indigenous Forest Policy. Both these funds are aimed at the permanent protection of conservation value forest on private and Maori land. With the Forest Heritage Fund this is achieved through gifting, covenanting and outright purchase. The Nga Whenua Rahui Fund uses a range of mechanisms with covenanting being the most suitable. Iwi perceive the use of covenants acceptable in lessening the sense of alienation from the land. Nga Whenua Rahui in particular aims to facilitate the voluntary protection of forests on Maori owned land, while honouring the rights guaranteed to Maori landowners under the Treaty of Waitangi, and affirming the status and tino rangatiratanga of the tangata whenua.

Both funds are contestable. Anyone can apply to the Forest Heritage Fund. Nga Whenua Rahui is restricted to Maori landowning interests. Applications to each of these funds are considered by the two advisory committees who make recommendations to the Minister of Conservation.

Statutory and associated committees

New Zealand Conservation Authority. The New Zealand Conservation Authority established in 1990, has wide-ranging conservation responsibilities for policy concerning national parks, walkways and wildlife; for the approval of conservation management strategies and conservation management plans; and for other nature conservation matters of national and international importance.

The authority is currently involved in investigations into the creation of new National Parks in north-west South Island and Northland, energy and conservation, marine conservation, wild animals, Conservation Week, tourism, and New Zealand's responsibilities under the Biodiversity Convention signed at UNCED.

Conservation Boards. Seventeen conservation boards carry out the above functions at a regional level. Te Ao Marama is the quarterly newsletter of the New Zealand Conservation Authority and the Conservation Boards.

National Fish and Game Council. This council represents nationally the interests of anglers and hunters and provides co-ordination of the management, enhancement and maintenance of sports fish and game. The council may give advice to the minister and develop, together with regional fish and game councils, national policies for carrying out its functions. It oversees the effective implementation of any general policies established by the minister. Other functions include an advocacy role in statutory planning processes and the fair distribution of revenues between the Regional Fish and Game Councils.

Regional Fish and Game Councils. There are 12 Regional Fish and Game Councils, whose functions include assessment and monitoring, promotion and education, planning, representing the interests of anglers and hunters in planning processes, and the issuing of licences to fish or hunt.

Taupo Fishery Advisory Committee. This committee provides advice to the Department of Conservation and the minister on the day-to-day management by the department of the Taupo Fishing District, and on the allocation and expenditure of money.

Queen Elizabeth II National Trust. The trust encourages and promotes the provision, protection and enhancement of open space for the benefit and enjoyment of the people of New Zealand. The trust most often deals with land in private or non-government ownership, as an independent and permanent trustee. A principal function of the trust is protecting privately owned land through purchase, open space covenants and acceptance of bequests, donations and gifts of land. Open space covenants are legal agreements between the trust and a landowner or leaseholder to protect a special landscape feature for a specified time or, more usually, in perpetuity. Covenants so far negotiated include wetlands, lakes, coastline, tussock lands, tracts of rural landscape and forest remnants.

Taupo Swamp, north of Wellington, owned by the National Trust.

Other activities of the trust include landscape awareness projects, demonstration farms, and the protection of wild and scenic rivers. The trust also has educational and advisory responsibilities.

New Zealand Historic Places Trust. This is a non-profit organisation which exists to identify, record and preserve New Zealand's historic buildings and archaeological sites and to encourage public interest in the nation's past. The trust is described in more detail in section 11.2, The national collection.

Waitangi National Trust Board. This board administers the Waitangi National Reserve which includes the Treaty House. The Minister of Conservation is administrator of the trust, and is an ex officio member of the board. Other members of the board are the Governor-General (Chairman), the Prime Minister, the Minister of Maori Affairs, and nine others representing those with a close association with the Treaty of Waitangi.

Wild Animal Recovery Service Appeal Authority. This tribunal considers appeals lodged by unsuccessful applicants for wild animal recovery service licences.

A number of other boards have been set up to aid the Government and the department in administering specific responsibilities. These include: Guardians of Lakes Manapouri, Monowai and Te Anau, and Lake Wanaka, Te Roaroa Waipoua Archaeological Advisory Committee, Forest Heritage Fund, South Westland Environmental and Community Advice Group and Nga Whenua Rahui.

Non-governmental conservation organisations

New Zealand has many private organisations actively involved in conservation and environmental issues. These vary from local clubs concerned to preserve some feature of the local landscape to national societies concerned to preserve the environment for its ecological, scientific, recreational or scenic value.

Contributors

15.1 Department of Survey and Land Information; Department of Justice; Valuation New Zealand; Land Corporation Limited.

15.2 Ministry of Forestry; Ministry for the Environment; Ministry of Foreign Affairs and Trade.

15.3 Department of Conservation.

Special articles

Department of Conservation; Ministry for the Environment.

Further information

Land resources and ownership

The Conveyancing Bulletin. Butterworths (eight times a year).

Listings of rural, commercial, and industrial sales. Valuation New Zealand (quarterly).

Residential Sales Summary. Valuation New Zealand (quarterly).

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

Report of the Department of Survey and Land Information (Parl paper C 14).

Report of the Valuation Department (Parl paper G 26).

Rural Property Sales Statistics. Valuation New Zealand (six-monthly).

Urban Property Sales Statistics. Valuation New Zealand (six-monthly).

Environmental and resource management

Report of the Ministry for the Environment (Parl paper C 11).

Statistics of the Forests and Forest Industries of New Zealand. Ministry of Forestry (annual).

National parks and reserves

Report of the Department of Conservation (Parl paper C 13).

Report of the New Zealand Conservation Authority (Parl paper C 10).

Report of the Queen Elizabeth the Second National Trust (Parl paper C 2).

Chapter 16. Agriculture

Seaside cattle droving.

Farming and horticulture are major industries, providing a high proportion of New Zealand's export earnings.

Traditionally farming has centred on sheep and cattle to produce sheepmeat, beef, wool, dairy produce and hides, although in recent years new types of livestock have included deer, goats and fur-bearing animals such as fitch.

Cereal crops are grown on a limited scale mainly for the home market.

Horticulture has always provided well for the home market, but since the 1970s horticultural produce has become an important export earner.

Land used for meat and wool farming is mainly hill country and rolling downs. The lowlands and coastal plains support dairy, arable and horticultural production. Increasing use of coastal flat land for horticulture has been a major development over recent decades.

16.1 Current situation and trends

Farm exports provide a large proportion of New Zealand's exports; they are, however, exposed to subsidised export competition from surplus producing countries.

After seven years of negotiations, the Uruguay Round of the GATT Multilateral Trade Negotiations was concluded in December 1993. Ratification of the draft agreement is expected in April 1994. The transition period, during which reforms will be implemented, is to cover trading arrangements until the year 2000.

New Zealand is expected to benefit from the outcomes, as the key provisions include:

  • Reduction in spending on domestic subsidies supporting farm incomes by 20 percent.

  • Reduction in export subsidies of 36 percent by value and 21 percent by volume.

  • Conversion of non-tariff barriers to their tariff equivalents to improve market access (in turn, tariffs are to be reduced in line with other export subsidies).

New Zealand's gross agricultural production is estimated to have increased to $9.7 billion for the year ended 31 March 1993, an increase of nearly 8 percent.

New Zealand's milk production in 1992/93 was 2 percent higher than the previous seasons record level, the increase being mainly due to higher cow numbers. The average dairy company payout for the season ending May 1993 was $6.38-a 23 percent rise over the previous season. World prices for dairy products, except butter, maintained their strength.

Sheep numbers continue to decline and are estimated to be down to 49.1 million for the June 1993 year. Poor weather conditions during the lambing season over recent years have lead to a decline in lamb numbers. On average, the net profit before tax of sheep farming has been gradually improving from the lows experienced in the 1985/86 years, except that the 1989/90 high was not sustained.

The New Zealand beef cattle herd is expanding from the June 1992 total of 4.75 million head. Beef production in the year ended 1993 at 554,000 tonnes, was up by just over 3 percent. Higher beef cattle numbers in recent years have been due mainly to increase retention of dairy beef calves. Farmgate prices for manufacturing grade cow beef for the year ending June declined from 211c/kg in 1992 to 197c/kg in 1993.

New Zealand apple production is still expanding from its September 1992 record level of 394,000 tonnes. Prices in the 1992/93 season fell by almost 30 percent, mainly owing to high levels of EC apple stocks and strong competition from other southern hemisphere producers. Further expansion is expected over the next five years as young trees mature and the area planted in apple trees increases.

The 1992/93 kiwifruit season was characterised by a large crop of about 235,000 tonnes, and the lowest ever return to growers of $3.85 per tray. The New Zealand export crop rose by 12 percent in the year ended March 1993.

Table 16.1. Farmland Use by Regional Council Area as at 30 June 1992

Regional councilNumber of farmsGrassland, lucerne, tussock or danthoniaHorticulturePlantations of exotic timberTotal land*

*Includes farmland not classified above.

Includes Chatham Island County.

   hectares (000)  
Northland82476665136992
Auckland82213371336450
Waikato12391116554181864
Bay of Plenty669433814143665
Gisborne1465564564727
Hawke's Bay34397741374986
Taranaki4557445112557
Manawatu-Wanganui722513886641599
Wellington2536433135555
              North Island547756111649848395
Nelson-Marlborough3819841101201221
West Coast1265196-28438
Canterbury†9947254411753027
Otago464927364862993
Southland521110891431227
              South Island248917406263518905
              Total, New Zealand796661351790133517300

Table 16.2. Land Use by Farm Type, as at 30 June 1992

Farm typeNumber of farmsGrassland and lucerneTussock and danthoniaHorticulturePlantationsGrain and fodderTotal land*

*Total land includes fallow & other land not shown here.

More than 75 percent of income is derived from these types of farming.

Income derived from the first named activity gives between 51 to 74 percent of income.

§Included here are mushroom, & tobacco growing, beekeeping, & research educational farms

    hectares (000)   
Dairy farming town supply†6276873574496406142973844
Dairy farming factory supply†14210120582314962772629846851314981
Sheep farming†11201198144913580152479532628533588687
Beef farming†9117735509205910197373631241135593
Cropping†7352776220362484094911082528
Dairy farming with other‡16451933655755116140964379234647
Sheep farming with beef‡50742059033131913927115884281963701900
Sheep farming with cropping‡688110085374616771926918145886
Sheep farming with other‡16883376403291693421361513392753963
Beef farming with sheep‡32941204509284066146638267381719188
Beef farming with other‡17221275291103046045502530169602
Cropping with sheep‡5095899677428630637826101243
Cropping with other‡257140553845182311552431657
Pig farming75626378863117461364234557
Horse breeding & training223443370123556911299870552
Deer farming21311681873773422821013380270397
Goat farming3206546274514228077
Small animal breeding1824322  288
Mixed livestock3360864919275749194039459282791351965
Poultry farming314526912190776386963
Citrus orchards35398114132854212710
Pipfruit orchards15961001412201762983868533199
Stonefruit orchards2431714252165243444071
Kiwifruit orchards2438108802891556587824932175
Berry fruit growing 31436731241781538296990
Grape growing3141272254043341276004
Other fruit n.e.c644541312362535318111371
Vegetable growing2089474971149297654411213596236
Flower growing63575871138151334427112160
Plant nurseries3211396514232221433855
Plantations2010753892142918912213377411766163
Idle land832315784427958194 1680468396
Other farming n.e.c.§48637122718349021891267260598
              Total all farm types796669600 1843917 052896591335 17432344117300 446

Table 16.3. Farm Employment, as at 28 Feb 1992

Farm typeWorking owners, leaseholders and sharemilkersUnpaid family members assisting on farmPaid permanent employeesCasual workers
Full-time*Part-time†Full-time*Part-time†Full-time*Part-time†

*Full-time = 30 hours or more per week.

Part-time = less than 30 hours per week.

Other farming includes all remaining farm types.

Dairy farming21468523121004122499810291983
Sheep farming784735731505310712505011046
Beef farming454536748432294611247414
Cropping468237781491793197
Sheep farming with beef48141359756142822715061169
Sheep farming with cropping6781811232281544987
Sheep farming with other1350568305623368109274
Beef farming with sheep26159933787601375465555
Beef farming with other92381821858519591100
Cropping with sheep537149701561617479
Cropping with other227794458543146
Pig farming5932481302093249289
Deer farming10681121269726228100164
Goat farming6915421109   
Mixed livestock2808115052412061446452602
Horticulture7195392297124756380264913162
Plantations2875161123562090107142
Other farming n.e.c.‡188111694088111278540747
              Total, all farm types593732514288551940223362707320756

Table 16.4. Capital Expenditure on Farms by Farm Type*†

Farm typeBuildingsLand developmentAll other capital expenditureTotal capital expenditure

*Excluding idle farms, forestry, research and educational farms.

Year ended 30 June 1992.

        $(000)  
Sheep, beef, deer, and goats78,21249,509123,053252,540
Dairy farming56,09625,27599,558181,227
Cropping4,1581,24315,43019,642
Horticulture54,2259,82249,066113,176
Other13,3232,00912,58528,017
              Total206,01487,857298,450594,601

The 25th National Agricultural Fieldays at Mystery Creek, near Hamilton.

Topdressing

Topdressing with artificial fertilisers has been an important factor in the intensification of grassland farming. Most New Zealand soils need fertilisers, especially phosphates, to maintain and increase production.

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. Fertiliser usage has increased over the past two to three years, with total fertiliser application increasing by 279,300 tonnes from 1990 to 1992.

Lime is used to correct soil acidity and increase the availability of trace elements. In 1992, 947,087 tonnes of lime were applied.

Table 16.5. Fertiliser Application

Year ended 30 JunePhosphatic fertilisersOther fertilisersTotal
 tonnes (000) 
19861227.1710.11937.2
19871118.1606.31724.4
19881104.7618.81723.5
19891216.7711.01927.8
19901235.9892.12128.0
19921353.91053.42407.3

Agricultural production indicators

Statistics New Zealand's Agriculture Production Account is a statistical series that provides a summary of the activities of all market-oriented establishments classified under agricultural and livestock production or agricultural services (major groups 111 and 112 of the New Zealand Standard Industrial Classification). All types of farms are included, together with agricultural services operated by contractors, such as topdressing, weed-spraying, harvesting, threshing, shearing, and scrub-cutting. Other services included are herd testing and artificial insemination. Farms operated as trading enterprises by government departments and other organisations are included.

The ‘account’ includes all income derived from the activities of the establishments covered, including their characteristic farming activities, and also their ‘other’ productive activities. However, investment income (such as dividends and interest) accruing to the proprietors of farming establishments is excluded.

Table 16.6. Agriculture Production Account: Analysis of Intermediate Consumption

ItemYear ended March
1987-881988-891989-901990-91
  $(million)  
Purchase of livestock575546685598
Feed and grazing261313376347
Animal health and breeding206224258263
Weed and pest control120123146151
Fertiliser, lime, and seeds434525604598
Fuel and power334361382379
Repairs and maintenance539622739709
Freight140160163173
Other (not elsewhere classified)1,2521,3931,4651,459
 3,8634,2674,8194,677
Less, capitalised development12121920
              Total, intermediate consumption3,8514,2554,8004,657

and show the consumption and production of major categories of products for the agricultural sector over recent years.

Table 16.7. Gross Agricultural Production

CommodityYear ended March
1988-891989-901990-911991-92
  $(million)  
Wool1,5081,252832783
Sheep610865885833
Cattle1,1731,1871,3761,422
Pigs101125126125
Dairy products1,9022,1661,6412,203
Poultry products192215208193
Crops and seeds262338313317
Fruit, nuts, and oilseeds549623694821
Vegetables373412420430
Other horticultural products145166160175
Agricultural services556620648665
Other products, n.e.c.243259255272
Value of change in livestock—    
    Sheep-32-48-992
    Cattle-931094685
    Pigs, deer, goats5870391
Sales of live animals585721671701
              Gross output8,132x9,0808,2169,027

Farm price indexes

The Farm Inputs Price Index measures the change in the price level of goods and services purchased by farmers. Several farm type and input type price indexes are published. The range of series are shown in the tables below. The four farm type indexes, together with agriculture contracting comprise the agriculture input index of the Producers Price Index (see section 24.2).

To ensure that the indexes are up-to-date and relevant to current farming practices, a comprehensive revision of the index weights and specifications of price surveyed items was completed for the December 1992 quarter.

Table 16.8. Farm Inputs (Excluding Livestock Purchases) Price Index*

Farm typeGroup FPIH series1990199119921993
JunDecJunDecJunDecJun

*These indexes were revised and rebased to give the index for the year ending 31 December 1992=1000. The grouping of the farm types was changed to comply with national accounting practices.

Sheep and beefS3Y9991017101499899610001027
DairyS4Y1008100799498199210001060
HorticulturalS6Y97198898898299210001000
Cropping and other livestockS8Y98399899798299110001015
All farmsS9Y9971009100499199410001029

Table 16.9. Farm Inputs Price Index—All Farms*

Input typeGroup FPIH seriesInput Price Index for half-year ended:
1990 JunDec1991 JunDec1992 JunDec1993 Jun

*Includes sharemilking until the December 1992 half-year.

AdministrationS9A92794996998498910001015
Animal health and breedingS9B90793894699198610001015
Dairy shed expensesS9C92993997798999210001005
ElectricityS9F97297698699510081000992
Feed, grazing, cultivation and harvestingS9G98599198196397110001023
Fertiliser, lime and seedsS9H98798598898798110001006
FreightS9I100810401047104110271000978
FuelS9J94810449849579661000992
Insurance premiumsS9K8738919189299721000998
Rent and hireS9L94494494596698210001028
Repairs, maintenance and motor vehicle repairsS9M93094496497198010001016
Packaging costsS9N9509609589669921000993
ShearingS90100310191031101510071000997
Weed and pest controlS9Q91792895697299410001010
Livestock purchasesS9R87191989086592110001155
Local and cent govt, rates and feesS9U96298298498899710001003
InterestS9V1273128411981054104810001108
Wages and salariesS9W96297698398699110001006
All Inputs excluding livestock*S9Y9971009100499199410001029
All inputs including livestock*S9Z97299098196597810001043

Agricultural organisations

New Zealand has been, and still is, a world leader in agricultural research and advisory services. This reflects the importance of agriculture to the New Zealand economy and exports. There is also a broad range of administrative and special interest organisations in the sector; a network of local, regional and national farmers' associations to advance the interests of the industry; growers' and livestock breeders' associations; produce marketing authorities; and others. Some of these are discussed in the following sections.

Ministry of Agriculture and Fisheries. The ministry is the main government agency in the agricultural sector. It advises government on policy, administers and develops quality standards, manages agricultural security and provides other services to the agricultural and fishing industries. Its function is outlined in section 2.3, State sector.

Competitor at a regional final of the Trust Bank Skellerup Young Farmer of the Year.

On 30 June 1992, MAF underwent a significant set of changes. These were largely brought about by the restructuring of government science activities into Crown-owned research institutes (CRIs). As a result of these science reforms:

  • MAF Technology, MAF's former research arm, no longer exists. It has been transferred to five new CRIs: New Zealand Pastoral Agricultural Research Institute Ltd; Horticultural and Food Research Institute of New Zealand Ltd; New Zealand Institute for Crop and Food Research Ltd; Land Care Research New Zealand Ltd and National Institute of Water and Atmospheric Research.

  • The former Freshwater Fisheries branch of MAF Fisheries has also been transferred to the National Institute of Water and Atmospheric Research.

  • The consultancy branch of MAF Technology, Management Consultancy Services, became a separate business arm of MAF, trading as Agriculture New Zealand.

There have also been changes within the remaining MAF, separate from the science reforms. A regulatory authority has been created, and the former Corporate Services and Corporate Affairs groups have been streamlined into a Wellington-based Corporate Office. MAF Quality Management has also made changes, bringing in a flatter management structure.

MAF therefore has five business groups: MAF Quality Management, MAF Policy, MAF Fisheries, MAF Regulatory Authority and MAF Corporate Office. MAF also has a new vision statement, MAF—Adding value to agriculture and fisheries, and a new mission statement: To contribute to the Government's agricultural and fisheries objectives for enterprise development, growth and profitability, sustainability, market access and agricultural security.

MAF Quality Management

MAF Quality Management is New Zealand's “front line” against exotic pests or diseases that could threaten the nation's livelihood as a primary producer. This group also plays an essential role in New Zealand's continued access to existing export markets—and to new markets—through the maintenance of quality standards.

The group's activities are divided into three key areas:

  • Agricultural Security: border protection, quarantine services, surveillance, responding to an exotic pest or disease emergency and animal welfare.

  • Meat Services: meat, fish and game inspection.

  • Quality Services: food hygiene consultancy, seed certification, disease control, animal export management and certification.

MAF Policy

MAF Policy provides policy advice and decision support to the Ministers of Agriculture and Fisheries and the government as it develops policies, legislation or regulations affecting agriculture and fishing.

This support is focused in several areas:

  • Policy Services: providing an overview of external and domestic policy; servicing the Minister of Agriculture.

  • Rural Resources: providing management and disposal of community irrigation schemes; responses to major climatic and other adverse events; liaison with rural communities, local and regional government; and monitoring of the effects of government policies on services to rural communities and the performance of the agricultural industry.

  • Science Advice: operational research management, eg rabbit and land management programme, pesticides, Bovine TB and possums; science policy advice and analysis and science input into policy advice.

  • Trade Policy: international policies and structures for agriculture, horticulture, livestock, plants and fisheries, eg under GATT, OECD, FAO, etc.; government to government liaison, eg negotiation on technical standards to open the way for market access; market outlook, information and analysis; and international project facilitation and collaboration.

  • Domestic Policy: gathering information and providing analysis and advice on issues affecting the performance of agriculture. These include issues such as sustainability, resource use, and the effects of policies on industry; managing the legislative programme; and facilitating implementation of policy.

  • Fisheries Policy: servicing the Minister of Fisheries; liaising with fisheries interest groups, eg commercial, Maori; providing international fisheries advice, eg EEZ issues; and providing policy advice on specific issues including Maori and recreational fisheries and aquaculture.

MAF Regulatory Authority

MAF's Regulatory Authority is made up of MAF's four chief technical officers (CTOs) and their staff. The CTOs are: the chief veterinary officer, chief meat veterinary officer, chief plants officer and chief dairy officer.

This group works closely with MAF Policy, and assists in the development and promulgation of policy. Within each area of expertise the Regulatory Authority also designs, specifies and promotes standards to protect New Zealand's hard-won reputation as a supplier of safe and pure products.

The authority works in the following specialist areas:

  • Agricultural security: developing standards for border protection, quarantine, monitoring for outbreaks of pests or diseases and response procedures for exotic pest/ disease outbreaks.

  • Quality assurance: developing standards for accreditation, licensing and registration, and certification; and inspecting production facilities to ensure compliance with standards.

  • Pest and disease management: developing standards for disease and noxious plants control.

  • Animal welfare: developing new codes of practice.

The Regulatory Authority maintains strong links with its counterparts in other countries, and represents the Government overseas on agricultural security and quality assurance issues.

Agriculture New Zealand

Agriculture New Zealand is a fully commercial agricultural consultancy and technology transfer service, run as a business arm of MAF. Its competitive advantage lies in:

  • Comprehensive, nationwide coverage (32 offices, from Kerikeri to Invercargill).

  • Independence.

  • Experience, based on MAF's 100-year involvement in agriculture.

  • Access to innovative technology and information.

  • Expertise in all production types and systems.

Corporate Office

MAF's Corporate Office provides the systems and structures essential to the efficient operation of MAF's business groups and head office units.

The office's functions are grouped into several areas of responsibility, including:

  • Administration: services to head office and MAF Policy.

  • Legal Services: legal advice to MAF businesses, directorate-general and Ministers of Agriculture and Fisheries.

  • Corporate Communication: internal and external communications.

  • Financial Services: systems, financial planning and reporting, accounting services, asset management.

  • Corporate Development and Human Resources: industrial relations, organisation development.

  • Secretariat Services: executive support to senior management and board.

16.2 Pastoral agriculture

Pastoral agriculture is practised throughout New Zealand, with beef cattle predominating in the Far North, dairying in Waikato and Taranaki, and sheep farming with cattle in the hills and in the south of the North Island. There are also areas of intensive sheep farming, the major output of which is ‘fat lambs’ for the meat trade. In the South Island, sheep farming (both intensive and extensive) is the main form of pastoral agriculture, with a sprinkling of beef cattle farmed in the high and hill country and wetter flat areas, and some dairying on the flat land of both coasts.

Livestock are rarely housed, but feeding of small quantities of supplements, such as hay and silage can occur, particularly in winter. Grass growth is seasonal, largely dependent on location and climatic fluctuations, but normally occurs for between eight and 12 months of the year. Stock are grazed in paddocks, often with movable electric fencing, which allows rotation of grazing around the farm. Lambing and calving are carefully managed to take full advantage of spring grass growth. A few feed-lot units have been built in recent years to produce table beef for export.

Phosphatic fertilisers are used extensively on New Zealand's predominantly grass/clover pasture. Nitrogen fertilisers are used to a small degree (see ‘Topdressing’, section 16.1).

Livestock numbers and types

Lines of development are influenced by overseas prices for farm products, including meat, wool, dairy products and, more recently, venison and goat fibre.

Probably New Zealand's best known statistic is that it has more than 20 times as many sheep as people (actually now closer to 15 than 20 times as many). Grasslands have been developed to the extent that the best sheep farms can carry up to 25 sheep per hectare throughout the year. The best dairy farms carry 3.5 cows per hectare throughout the year.

Over the last 10 years the sheep population has declined sharply from 70.2 million at June 1983 to stand at around 52.6 million at June 1992. The beef cattle population has remained fairly static at around 4.6 million, and the number of dairy cattle has increased to 3.5 million.

Table 16.10. Distribution of Livestock, as at 30 June 1992

Regional CouncilDairy cattleBeef cattleSheepPigsDeerGoats
   (000)   
Northland36158794381552
Auckland227273788345032
Waikato124374836646215390
Bay of Plenty3391798552310645
Gisborne334321774189
Hawke's Bay174784687810862
Taranaki5721711193232317
Manawatu-Wanganui26174679993111542
Wellington741872460252617
              North Island3097371324765218615365
Nelson—Marlborough741401802275334
West Coast66702461316
Canterbury127343951713620163
Otago502408198207540
Southland531728041816026
              South Island37196427804193521168
              Total New Zealand34684676525684111135533

Sheep. The most popular sheep in New Zealand is the Romney, an English breed. The Romney in New Zealand has been further developed as a dual purpose breed being carried for both meat and wool production. The Romney has been cross-bred with such strains as the coarse wooled Border Leicester, suited to the wet conditions on many farms. A number of breeds which produce both meat and wool have been developed by New Zealand breeders during this century. There is also considerable regional variation in the types of sheep grazed—to meet different climates and topography.

Deer. Deer farming has developed since the early 1970s to become an important livestock industry. As venison finds a ready overseas market, most of the meat produced is exported. In recent years elk from Canada and deer from Europe have been imported.

The Department of Conservation 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. Red, Wapiti, and fallow deer are the predominant farmed species. Currently there are about 5200 deer farms registered with the Department of Conservation and they hold over 1 million deer.

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. At 30 June 1992 there were 532,767 goats. Data shows 72 percent were being farmed for mohair, cashmere and cashgora production, while about 13,000 goats were being used for milking and 55,000 goats were classed as ‘other’. In the 1992 calendar year, 140 tonnes of mohair, 22 tonnes of cashgora, and 40 tonnes of cashmere were produced.

Boer goats. Another African ‘import’, the Boer goat produces both lean meat and fine goat skin leathers.

Table 16.11. Sheep Categories

As at 30 JuneBreeding ewes including hoggetsOther sheepTotal sheep
1988459451865564600
1989424961807360569
1990420971575657852
1991398331532955162
1992383991416952568

Table 16.12. Size of Sheep Flocks*

Size of flockNumber of farms
19881989199019911992

*As at 30 June.

1-991116411021118231196011262
100-19926792692240025882492
200-49939384161394638843873
500-99936193593347738843259
1000-149931543276319131722903
1500-199932553152305729632762
2000-249930982998290726492458
2500-499966916114582955495229
5000-999919431768167515811517
10000 and over526475431439430
              Total flocks4006739250387363808036185
    Average flock size16121543149314491453

Table 16.13. Cattle Categories

CategoryAs at 30 June
19911992
Dairy cows and heifers in milk or calf26417122722939
Dairy cows and heifers not in milk or calf8769592274
Dairy heifer yearlings and calves (including bobby)664705621980
Dairy bulls for breeding3531530631
            Total, dairy34294273467824
Beef cows and heifers bred from13879871418955
Beef cows and heifers not bred from446281464429
Bulls—all ages699055748930
Other beef cattle21372462044183
            Total, beef cattle46705694676497
            Total cattle80999968144321

16.3 Meat

Meat industry products are New Zealand's largest export income earner, accounting for around one dollar in every five earned overseas. New Zealand's main meat exports are lamb, mutton and beef. For the year ended September 1992, 91 percent of lamb, 68 percent of mutton and 84 percent of beef animals processed in New Zealand were exported overseas. Increasingly, lamb exports are in a further processed form, particularly cuts. Mutton tends to be exported boneless, and beef as boneless manufacturing beef. The domestic market absorbs around 100 percent of the pigmeat and poultry produced in New Zealand.

Table 16.14. Meat Production

ProductYear ended September
19891990199119921993
Source: Ministry of Agriculture and Fisheries.
   tonnes (000)  
Beef544466524523553
Veal1613131414
Mutton229186145158133
Lamb396348383400350
Pigmeat4543434748
            Total12301056110811421098

Table 16.15. Livestock Slaughter at Meat Export Works and Abattoirs*

AnimalsYear ended September
19891990199119921993

*Excludes killing on farms.

Source: Ministry of Agriculture and Fisheries.

   head of stock (000)  
Lambs3033625149272492802023253
Sheep97527675722776816508
Adult cattle22921935218021322241
Calves and vealers911735741779760
Pigs779749748807807

Table 16.16. Export Meat Production

Type of meatYear ended September
19881989199019911992

*Figures may not add due to rounding.

Provisional.

Source: New Zealand Meat Producers Board.

  tonnes (000) shipping weight   
Lamb—carcases208.2186.5125.2123.9135.7
         —other130.7137.1135.5162.2176.0
Mutton—carcases51.375.952.046.754.9
         —other26.228.425.229.928.7
Beef—manufacturing205.8215.7185.2207.2219.0
         —other65.184.252.974.0x75.4
Veal6.07.38.47.27.8
Goat0.22.41.72.32.0
Variety meats41.939.536.931.237.3
Inedible meat and offal18.520.317.019.316.9
             Total*754.6797.5640.0703.9x753.6

Meat types

Sheepmeat

Lamb—is a young sheep under 12 months of age or one that does not have any permanent incisor teeth in wear.

Hogget—is a young male sheep or maiden ewe having no more than two permanent incisors in wear.

Ram—is an adult uncastrated male sheep having more than two permanent incisors in wear.

Mutton—includes ewes and castrated males (wethers) with more than two permanent incisors in wear. A wether must not show any ram characteristics.

Beef

Steers, heifers, cows and bulls—a steer is a male bovine castrated when young. A heifer is a female bovine which has no more than six permanent incisors. Cows have more than six permanent incisors. A bull is an entire male bovine with masculine characteristics.

Veal and bobby calves—vealer calves include maiden female, castrated male, and entire males which are not showing masculine characteristics that are up to 14 months of age. Bobby veal carcases are derived from milk-fed bovine calves generally under two weeks of age.

A standard system of classifying meat is used in New Zealand. Export meat is classified according to the type of animal, age, sex, weight, fat content and, in some cases, muscling. The classification standards are established by the New Zealand Meat Producers Board after consultation with the New Zealand Meat Industry Association.

Schedule prices

Most meat processors publish their schedules of stock purchase prices in the weekly Agrifax publication, daily newspapers and in company newsletters. Producers can sell their stock on schedule, on a pool account system, on the hoof, on contract or by auction.

The average net schedules for the last five seasons are given in . The schedule prices quoted are inclusive of pelt, slipe wool and hide payments.

Table 16.17. Average Net Schedule Prices

Classification1987-881988-89§1989-90§1990-91§1991-92

*Includes skin and one kilogram wool pull.

Prior to 1988-89 steer prices are for PI class.

Over schedule premium data added in after completion of season led to revision of prices.

§Confusion over hot and cold weights led to over estimation of schedules for beef prices.

Source: New Zealand Meat Producers Board.

Lamb ($/head)*     
PL 9.0-12.5 kg14.23x17.1826.2021.9921.18
PM 13.0-16.0 kg18.42x24.8335.9328.1929.19
YL 9.0-12.5 kg14.11 x16.5024.5321.3423.34
Mutton ($/head)*     
MX 22 kg and under13.50x10.4718.8611.7213.16
ML 22 kg and under13.50x11.7420.4013.3414.69
Beef (cents/kg)     
P2 Steer 245.5-270 kg†171.9x234.0x274.2x261.6x272.1
K2 Steer 245.5-270 kg†226.8x268.2x257.3x268.1 
M Cow 145-170 kg153.0x187.9x227.4x216.7x211.5
Bull 245.5-270 kg185.2x230.3x283.7x272.6x282.0

Red meat production

The New Zealand production season runs from 1 October to 30 September. New Zealand accounts for 1 percent of global beef and veal production, and 7.8 percent of global lamb and mutton production.

In the 1991-92 season increases in per head production and total slaughterings lifted total production above levels achieved in 1990-91.

New Zealand Meat Producers Board

The purpose of the New Zealand Meat Board Producers Board, as defined by statute, is to maximise the returns to New Zealand meat producers. In the interests of producers, the board's main responsibilities are: licensing of meat exporters; meat classification and quality assurance; research and development; negotiation of freight services and rates; global promotion; market information; market development and trade access.

The board does not directly sell meat, this is undertaken by a variety of licensed meat exporting companies. However, the board does provide market support through its overseas offices in Bahrain, Brussels, London, Hong Kong, Tokyo and Washington.

The board is funded by means of a compulsory levy on stock, a per head charge collected at the time of slaughter. Levy income totalled $26 million in the year ended September 1992.

Table 16.18. Meat Board Levies, 1 October 1992

Class of meatCents per head*

*Excluding GST.

Source: New Zealand Meat Producers Board.

Lambs, other sheep and goats47
Bobby calves24
Cows, vealers and other adult cattle420

Export marketing

New Zealand meat is sold overseas by 82 companies licensed by the Meat Board. New Zealand is a major exporter of sheepmeat, accounting for 46.5 percent of the world export trade, but is a smaller player in the global market for beef, accounting for 6.5 percent of all world beef exports.

New Zealand's major meat markets include the United Kingdom, Iran, Japan, Saudi Arabia, France and Germany for lamb; the United Kingdom, Iran, the Commonwealth of Independent States and South Korea for mutton; and the United States, Canada and South Korea for beef. In 1991-92, 52 percent of all sheepmeat exports went to the European Community. The United States alone accounted for 76 percent of all beef exports in 1991-92. All export figures are in shipped weight.

Sheepmeat. During the 1991-92 season lamb exports totalled 335,089 tonnes, an increase of 14.5 percent on the 1990-91 season. Exports to the United Kingdom increased from 79,225 tonnes in 1990-91 to 90,210 tonnes in 1991-92. Exports to other European Community markets also increased by 12,708 tonnes, or 18 percent. In 1991-92 there was an Iranian contract, with lamb exports totalling 43,546 tonnes.

Mutton exports decreased by 3 percent to 81,789 tonnes. Shipments to the European Community increased to 29,402 tonnes, the United Kingdom, New Zealand's largest single market for mutton, taking 15,592 tonnes. With a contract in 1991-92, mutton exports to Iran totalled 15,347. Shipments to the former USSR decreased 9,968 tonnes to 4,728 tonnes. All export figures are in shipped weight.

New Zealand's lamb, mutton and goat exports to the European Community are subject to a voluntary restraint agreement.

Cattle beast being cut in half at the Alliance Burnside plant, Dunedin.

Beef and veal. New Zealand's biggest market for beef and veal in 1991-92 was the United States, with shipments totalling 231,120 tonnes. Canada was the next largest market, with 16,576 tonnes. Exports to South Korea remained relatively stable at 16,345 tonnes. All export figures are in are in shipped weight.

Imports of beef, veal, mutton and goatmeat into the United States can be subject to voluntary restraint agreements or quotas under the US Meat Import Law. Restraints were required in 1991. Canada can impose quotas on beef and veal imports although greater discretionary powers are vested in the Canadian Government as to whether, and at what level, quotas are to be imposed.

Meat prices

The International Meat Trade Association in the United Kingdom compiles a weekly London wholesale meat price list. The London wholesale prices in are an indicative measure of world prices for New Zealand lamb.

Table 16.19. London Wholesale Lamb Prices

End of last week in MarchP ClassY Class
9-12.5 kg13-16 kg16.5-20 kg9-12.5 kg13-16 kg
Source: New Zealand Meat Producers Board.
   Pence a kilogram  
1989127.9131.2127.9125.7130.1
1990153.2149.9145.5153.2147.7
1991125.7123.5116.9125.7121.3
1992138.9133.4124.6138.9132.3
1993173.1169.8158.7173.1169.8

gives a measure of New Zealand exported beef prices, derived from the New Zealand Meat Producers Board's weekly price series for imported manufacturing beef to the United States.

Table 16.20. United States CIF Beef Prices

End of last week in MarchManufacturing bull Manufacturing cow
Source: New Zealand Meat Producers Board.
 US cents a kilogram 
1989264.6260.2
1990277.8260.2
1991280.0262.4
1992270.1255.8
19932646253.5

16.4 Wool

New Zealand sheep are largely dual purpose wool/meat animals and their wool is predominantly strong. New Zealand is the world's largest producer of crossbred (strong wool), contributing 25 percent of the world total and two and a half times as much as either the CIS or China, the next most significant producers of strong wool.

This type of wool is used mainly in interior textiles such as carpets, upholstery, furnishings, bedding and rugs. It is also used for handknitting yarn and blankets.

In contrast, wool produced in Australia is mainly fine wool for apparel. Australia is the world's largest producer of wool overall.

It is estimated that worldwide 45 percent of New Zealand wool is used in machine-made carpets, 15 percent in handknotted and hand-tufted carpets, 30 percent in apparel, and 10 percent in other uses, primarily upholstery and bedding. Uses vary markedly from country to country.

Wool production. Although New Zealand's sheep flock ranks fourth largest in the world, the country's total wool fibre production is second only to Australia on a clean mass basis. This is due to the high clip yield per head and lower quantities of grease and other contaminants in New Zealand wool.

Table 16.21. Wool Production*

Season ended 30 JuneFlock sizeYield/headTotal wool production (clean)Average 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.

 (million)(kg)tonnes (000)cents/kg
198864.65.2254688
198960.65.1233615
199057.95.3227422
199155.25.4221437
199252.64.9193433

New Zealand Wool Board

The New Zealand Wool Board was established to get the best possible long-term returns for New Zealand woolgrowers. To do this it promotes the use of New Zealand wool in existing or new markets; encourages efficiencies in the preparation, handling, distribution, shipping, and selling of wool; and promotes and undertakes extensive research and development work into wool, sheep and wool products.

The board is entirely funded by woolgrowers and has no government financial backing. The main sources of income for the board are: a 6 percent levy on gross wool receipts ($144.8 million in the 1992-93 season) and interest on investments ($11.1 million for the 1992-93 season).

Grower services. Board field staff work with growers to improve wool production, raise the quality of the wool clip, and help growers maximise their returns. In 1992/93 training courses were provided for more than 1,000 shearers and a similar number of wool handlers. Education and extension programmes were also held on wool production, harvesting and packaging. The board operates wool price services to help growers establish selling prices and reserves at auction.

Research and development. The board has a comprehensive research and development programme investing around $11 million in 1992/93. It funds and directs research to help ensure the future of New Zealand wool by increasing demand for wool fibre through improved products and processes. Priorities for on-farm and post-harvest research are established annually, taking into account market signals and woolgrowers' needs. Research proposals are invited from New Zealand and overseas groups interested in working with the board on the development of new and improved products and processes using New Zealand wool.

The Wool Research Organisation of New Zealand (WRONZ) receives a large proportion of the board's research funding. Established in 1960 at Lincoln, Christchurch, WRONZ conducts fundamental research on wool fibre and applied research on scouring, processing, and performance of New Zealand wools.

Zim Angora goats. Based on embryos imported from selected Zimbabwean stock, it is hoped the Zim Angoras will improve the quality and quantity of mohair production in New Zealand.

Promotion and product development. The board concentrates on promoting wool within New Zealand, while international marketing is handled primarily by the International Wool Secretariat (IWS) on the board's behalf.

IWS is a partnership of New Zealand, Australia, South Africa and Uruguay. Together the four countries account for 80 percent of all wool traded internationally. IWS has its headquarters in Ilkley, England where it has a major process and product development centre, and branches throughout the world. IWS's role is to increase demand for its partner countries' wool worldwide.

Most of its work for New Zealand promoting the use of New Zealand wool in interior textiles such as carpets, upholstery and bedding. Resources are concentrated on the developed markets of USA, Japan and Western Europe. Together these markets consume 70 percent of all New Zealand wool used in interior textiles. IWS mounts international product promotion programmes and works with processors giving technical advice on wool manufacturing, wool styling and fashion trends.

In New Zealand assistance is given by the board to local textile manufacturers through fashion and design services, technical help for new products and processes, and quality control techniques. Consumer marketing programmes are also devised for wool products, particularly Woolmark carpets.

Stocks. The board manages and sells wool from its stockpile which was built up under market support activities (suspended in 1991). At the end of July 1993 the stocks totalled 342,700 bales.

Markets for wool

The most common way of selling wool in New Zealand is by open auction; 61 percent was sold this way in 1992-93. The auction season runs from July to the following June. Sales are held at three 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 (25 percent of sales in 1992-93).

Table 16.22. Wool Sold at Auction

Season ended JuneGreasy and scoured new season wool (clean equivalent)Average clean price per kilogramTotal sale valueAverage clean auction price 1992-93
Source: New Zealand Wool Board.
 tonnes (000)cents$(million)cents
1989164687.61,146.8775
1990154614.51,009.7645
1991153422.0660.6431
1992140437.0623.2442
1993116443.0517.3433

Around 90 percent of the New Zealand clip leaves the country in a greasy, scoured, or slipe form. Eighty percent of exports are scoured. Of the 10 percent of the clip processed in New Zealand, roughly half is exported in product form.

It is important to distinguish between initial and final destinations of New Zealand wool exports. Initial destinations have changed substantially over the years, and there are sometimes very large changes from year to year. Export destinations for wool fibre are shown in . During 1992-93 the largest importers were China, Nepal, the United Kingdom and Japan.

With the exception of China and the CIS, 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 was years ago, even though the location of the early-stage processing may have changed. Countries such as the United States and West Germany use less wool fibre, but import made-up carpets from other countries. India and Nepal have emerged as large customers for New Zealand wool, mostly for processing into handknotted carpets for export to Europe and North America.

A blade shearer, Lake Hayes.

Table 16.23. Export Destinations of New Zealand Wool Fibre

Country1988-891989-901990-911991-921992-93
Source: New Zealand Wool Board.
   tonnes  
China6287415147190514769236516
Nepal2367592786771659917711
United Kingdom1969417252182751905616314
Japan1941021439246041970615503
Belgium1341214246120961616711481
India53277914161001040611197
Germany109961179011198128089706
Hong Kong36993160310796598819
United States128729933747691758398
Australia107199075841886107682
CIS2412926664782246661609
Other52902434034484543333 

Net domestic consumption of wool in New Zealand is among the highest in the world on a per head basis. In 1989 this was estimated at 3.56 kg per head compared with 1.99 kg in Australia, 2.21 kg in West Germany, 1.61 kg in the United Kingdom, and 0.53 kg in the United States.

Because New Zealand wools are predominantly strong they do not compete directly with the output of other major producers. The adjacent graph shows the relative positions of the main exporting countries.

Wool product exports. The most important wool product exports from New Zealand are floor coverings and yarns, particularly carpet yarns. Carpets and rugs accounted for 27 percent of wool product export earnings in 1992-93. Carpet yarn accounted for 21 percent and other yarn for 8 percent. Other wool-based export items include: raw and processed sheepskins, tops, wool waste, blankets, fabrics, knitwear and other clothing.

Total export earnings from wool products increased by 5.5 percent to $244 million in 1992-93. These exports are summarised in .

Table 16.24. Wool Product Export Earnings*

Product1989-901990-911991-921992-93

*Year ended 30 June.

Source: New Zealand Wool Board.

  $(million) fob  
Carpets/rugs81.165.166.766.0
Wool yarn92.775.475.671.4
Wool apparel7.97.814.719.0
Skeepskin final products 21.922.330.6
Sheepskins—raw and processed41.920.629.236.1
All other17.814.423.221.3

16.5 Dairy produce

Dairy product exports constitute some 20 percent of total merchandise trade receipts for New Zealand, and, with the exception of milk and some dairy products for local consumption, the industry is primarily geared towards overseas markets—which account for between 80-90 percent of all milk produced.

There are four major product groupings manufactured from liquid whole milk by dairy factories in New Zealand: milk powders such as skim-milk powder (SMP), whole-milk powder (WMP), and buttermilk powder (BMP); cream products, such as butter, anhydrous milkfat (AMF), and ghee; cheese; and protein products such as casein and caseinates.

Liquid whole milk can be broken down into three chief components: milkfat, solids-nonfat (protein), and water. Skim-milk powder is made from skim milk after the cream (milkfat) has been separated from the liquid whole milk. Whole-milk powder is manufactured directly from the liquid whole milk, without separating of the cream. Buttermilk powder is made from buttermilk, a by-product of the butter manufacturing process. Most of the butter produced is of a ‘sweet cream’ type, and anhydrous milkfat and ghee are further refinements of butter. The predominant cheese variety manufactured in New Zealand is cheddar or cheddar types, although the manufacture of speciality cheese types has recently shown considerable growth. The final product grouping, milk proteins, are derived from the by-products of skim milk and also from the by-products of other dairy product manufacture such as cheese.

Table 16.25. Milk Production and Utilisation

Product1987-881988-89*1989-901990-911991-921992-93

*New series, includes milk sold for processing only.

Source: New Zealand Dairy Board.

   million litres   
Production      
Total milk production770569697302750978718050
Utilisation      
Milk sent to dairy factories692165336868707874547629

Table 16.26. Dairy Factory Production

Product1989-901990-911991-921992-93
Source: New Zealand Dairy Board.
  tonnes  
Creamery butter232014216291218351206606
Anhydrous milkfat25828345904330245661
Frozen cream71166080-6278
Cheese118109124773137405144521
Whole-milk powder158273235383250105279179
Infant food15388160942456328778
Skim-milk powder183884147413136037126545
Buttermilk powder27160244962340223496
Casein products69381656227419474216
Lactose18587225202560326222
Whey powders11022118821370813976

Dairy organisations

There are presently 16 co-operative dairy companies, which operate around 40 dairy factories for the production of manufactured dairy products. Each company is governed by a board of directors who are elected by farmer suppliers. The co-operatives utilise funds supplied in the form of share capital by the farmers.

The companies produce all dairy products manufactured in New Zealand. On an annual basis the companies convert approximately 7.5 million tonnes of milk into approximately 900,000 tonnes of dairy products, of which around 800,000 tonnes is exported. The balance is consumed on the relatively small domestic market.

Milk sold on the New Zealand market, known as town milk, has traditionally been produced by different farmers from those who supply dairy factories. However, during recent years some companies which have interests in both town milk and manufacturing dairy products have ceased drawing milk from separate sources but they have offered a winter premium for town milk supplies to reflect the additional input costs in producing out of season milk.

New Zealand Dairy Board. The board is the single organisation responsible for marketing dairy produce manufactured for export. As the exporting and administrative arm of the industry, it links manufacturing and industry growth plans with export market requirements.

The board exports to over 100 countries annually and has its own marketing distribution network in all of these countries. With over 80 fully owned subsidiaries, associate companies and agencies the Dairy Board is the largest multinational dairy marketing organisation in the world. The vertical integration of the corporate structure gives the industry a strong international position.

Overseas marketing

The international market for dairy products is characterised by its small size relative to total world milk production, with only about 5 percent of production entering international trade. Because of this the market is especially vulnerable to shifts in climatic, commercial, and political forces. Marginal production changes in the major producers can trigger massive shifts in supplies of, and prices for, products on the international market.

The major dairy exporters are: the European Community; New Zealand; Australia; and to a lesser degree the United States and Canada. These five exporters supply between 90 and 95 percent of dairy products traded on the international market. Relatively smaller quantities are exported by the Nordic countries and from Eastern Europe.

Export markets. The dairy industry has been working to diversify its markets and product range for many years. Today, New Zealand's major markets vary for different products. There has been reduced access to both the United Kingdom and the European Union butter market; Britain, however, remains New Zealand's most valuable market for butter. In 1994, 51,830 tonnes has been allowed to be exported to the European Community, the Former Soviet Union. The Middle East and North Africa are other important butter markets.

The Uruguay Round was concluded in December 1993 in Geneva. It will mean considerable gains for the dairy industry through the reduction of export subsidies by the European Community and the United States and through more access to existing and new markets.

The primary markets for casein and cheese are the United States, Japan, and the European Community. New Zealand is the world's largest exporter of casein and caseinate products and is also moving forward in its range of other specialised milk protein products. These are highly specialised, high-cost products which are put to a myriad of uses, from automobile manufacture to meat processing and alcohol distillation.

The most important milk-powder markets are in Central and South America and South-East Asia, but there has also been growth in skim-milk powder exports to the Middle East.

Continued diversification of markets, however, is limited as the international dairy market—although free of trading restrictions—is finite and relatively small.

Export markets 1993. The international dairy market for the year to 31 May 1993 showed a decline with weakening prices for all commodities except cheese. In the European Community, which dominates the market in volume terms, supply is in the balance.

The board's export volumes for the 1992-93 season were approximately 800 000 metric tonnes and the export income earned of NZ$3 billion approached 20 percent of New Zealand's export income. Over the last five years, the value of dairy product exports has increased by 60 percent.

Another major influence on the recent international dairy trading environment was the economic and political restructuring occurring in a number of big importing markets. Of most importance were developments in the former Soviet Union, where the unprecedented transformation of the world's largest import market for butter inevitably created uncertainty about the security of payments on trade already in the pipeline and on the prospects for future sales, relevant not only for New Zealand but for all exporters of dairy products.

One result of the economic metamorphosis under way in Eastern Europe has been a major dislocation to the dairy industries in those countries, especially Poland. Milk production has been sharply reduced, and with the needs of the domestic market the top priority, reduced production has translated directly into a major withdrawal from exporting products such as skim milk powder and casein.

Economic growth and development elsewhere, particularly in Latin America and in South-East Asia, provided a further modest stimulus to demand for dairy product import in 1992-93. Financing imports into many of the markets in these regions, and in other key markets such as Algeria, has remained a difficulty.

Dairy produce prices

Dairy farmer suppliers are paid for their milk by their co-operatively owned dairy factories on the basis of dairy product prices on the international market. The system of establishing the price paid to dairy companies for product purchased for export by the board, and hence the price paid to the milk supplier, is set out in the Dairy Board Act 1961.

The Dairy Board Act was amended during 1988 to reflect government's withdrawal from overseeing price setting. Other changes to the Act allowed for the freeing up of the board's accounting and credit-raising practices and the removal of a requirement to hold accounts with the Reserve Bank.

Payments to suppliers for the past three seasons are given in , which shows that although milkfat prices have remained static over recent years, there has been a rapid increase in the value of the protein value of milk.

Table 16.27. Prices for Milkfat and Protein

Season ended 31 MayMilkfatProteinTotal whole-milk (milkfat equivalent)
Source: New Zealand Dairy Board.
1988209.00202.00360
1989264.00356.00530
1990269.28413.80580
1991164.24275.40370
1992232.00388.67520
1993254.00423.00565

16.6 Pigs, poultry and bees

Pigs

At 30 June 1992 the total pig numbers were 411,000, this was 1 percent up on the 1991 figure of 407,306.

Over the past two years there has been a significant increase in pig production, both in terms of numbers of pigs slaughtered and tonnage of pigmeat produced.

In the 1991-92 year ended 30 September, 808,316 pigs were slaughtered, an increase of 49,500 over the previous year. The tonnage of pigmeat produced also increased significantly to 47,170 tonnes, over 4,000 tonnes up on the previous year. The estimated production for the 1992-93 year is 815,000 pigs slaughtered and 48,000 tonnes of pigmeat produced. Imports of pigmeat are expected to be in the order of 2,000 tonnes. This was the highest production which occurred in New Zealand and would give a total consumption of 14.7 kg per capita.

Increases in pig production are still occurring at a greater rate in the South Island than in the North Island. This is mainly because most of the grain grown in New Zealand is in the South Island, and this is a major source of feed for pigs.

Table 16.28. Pigs

At 30 JuneBreeding sows one year old and overOther pigs of all ages (including boars)Total pigs

*Total pig numbers only are collected since 1991.

198847183366375413558
198944471356120411334
199044665340013394701
1991*  407306
199245583365565411148

New Zealand Pork Industry Board. The board is a statutory body which operates under the Pork Industry Board Act 1982. The industry however has had an organisation since 1937, being one of the first farming industries to form a national organisation. Its source of income is from a levy on all pigs slaughtered at licences premises. The board currently comprises nine members, five of whom are elected by producers and four are appointed by the Minister of Agriculture.

The functions of the board are to promote and organise the orderly development of an efficient pork producing industry in New Zealand. The aim is to provide a stable market place for efficient producers. To achieve these functions the board is responsible for maintaining and improving the quality of stock produced in New Zealand. This it does by genetic improvement programmes to improve productivity in stock. This role is carried out by the National Pig Breeding Co (NZ) Limited, a subsidiary company in which the board has the major share holding.

Up until 1 October 1992, the board provided an advisory service for farmers. It has now passed responsibility this over to the Monogastric Research Centre at Massey University. The board contracts back technical support, and also technology transfer services to the industry. The board also funds research into pig production at the Monagastric Research Centre as well as research into a number of environmental issues, particularly the land application of piggery effluents.

The board has set up an Environmental Taskforce which keeps an overview on all matters relating to the Resource Management Act, and has produced a code of practice for pig farming, setting out criteria by which piggeries can be established whilst at the same time minimising any adverse environmental effects.

Industry training has been an important facet of the board's work over the last 10 years, and the Pork Industry Training Scheme now operates under the umbrella of the Farm Education and Training Association as its Industry Training Organisation.

The board's marketing is well known, particularly through ‘Trim Pork’ promotion and current projects are looking towards improving the quality of pork and pork products and addressing animal welfare issues which affect pigmeat quality.

Poultry

In the last 10 years, New Zealand has seen the refinement and development of the level of sophistication of its poultry meat industry to the equivalent, and in most cases superior, status to that found anywhere in the world. Improvements in production and processing have been achieved through improved management, nutrition and genetics, greater processing efficiency, and strict quarantine regulations.

In New Zealand, since 1965, annual chicken meat consumption has increased from 1 kilogram per capita to approximately 20 kilograms of chicken per capita and another 2 kilograms of turkey and other poultry. A factor towards this increase is that chicken is now in real terms half the price per kilogram of what it was in 1972.

Chicken's share of the total marketplace has increased from 5.6 percent in 1975 to around 22 percent in 1993. There has also been a trend from frozen to fresh chicken. In 1985 frozen chicken accounted for 55 percent of consumption and 45 percent was fresh. It is expected that the fresh product will be 75 percent of the total consumption within five years.

Table 16.29. Chicken Production

YearBirdsDressed weightFreshFrozen
Source: Poultry Industry Association of NZ Inc.
 numbertonnespercent 
1986377090004602746.153.9
1987389250004777747.852.2
1988421460005283549.250.8
1989455830005873251.148.9
1990434690005537955.244.8
1991458910005903653.546.5
1992481870006279255.045.0
1993P530000006897055.045.0

A major factor in the growth of the industry has been the advent of new product lines. Over the next five years, development is also predicted in the areas of turkey and duck consumption. Turkey especially, both production and products, is expected to follow the pattern of development in consumption set by chicken.

Ninety percent of the chicken meat industry is owned and controlled by three main companies: Tegel Foods Ltd, Ingham Enterprises Limited and P H van den Brink Limited.

Eggs. The late 1980s saw the abolishment of both price and production controls in the egg industry, and the disestablishment of the New Zealand Poultry Board. The state of the egg industry and the position of wholesalers has changed considerably due to deregulation.

Many producers now sell direct to the wholesale and retail trade. Consequently there has been a dramatic fall in the wholesale price of eggs and returns to the producer. However, a similarly significant fall in the price of retail eggs for the consumer has been slow and has varied widely throughout the country.

Falling returns have resulted in many producers leaving the industry with the total number of egg producers reduced to 270 in 1991, compared with 2,500, 10 years ago. A further decline in the number of producers is expected, leaving a smaller number of larger operators.

Deregulation has made available to the consumer a wider choice of types of eggs from standard white and brown, to wholemeal, vegetarian and free range eggs, jumbo size and other premium packs and an increase in tray eggs and self-packing in retail outlets.

During 1991 egg producers, through the Egg Producers Federation of NZ Inc., made efforts to form a national body to represent the egg industry's interests. A levy, under the Commodity Levies Act 1990, has now been approved by the Minister of Agriculture to fund this body.

Bees

The rich pasture lands of New Zealand and some of its forest and 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 have wide national and international consumer appeal. An example is Honeydew honey, which is produced from beech forests in the north of the South Island.

Honey gathered from Ling Heather (Caluna Vulgaris) is four times as valuable as clover honey. It is gathered over a six-week period, from mid February to late March, around the lower slopes of Mt Ruapehu. There is no demand for this honey in New Zealand, it is all exported. A much larger crop of this honey could be produced but the Tongariro National Park will not allow bees to be placed on the park.

In 1992 researchers confirmed that Manuka honey (Leptospermum scoparium) is unusually effective as an antiseptic dressing. Waikato University biochemists have shown that it is particularly useful for wounds, burns and ulcers. It is expected that this discovery will make Manuka honey a much more valuable product than it has been traditionally.

In the year ended 30 June 1992 the total honey crop was assessed at 9,560 tonnes, compared with the previous year's crop of 7,290 tonnes, with an average production of 31.4 kilograms per hive. An average annual crop is 24.5 kilograms per hive. About 2,000 tonnes are exported annually. Traditionally this has been in bulk form, but larger quantities of cut comb and of extracted retail-pack honey are now being exported as well.

The industry's other products include beeswax, pollen, package bees and queen bees. Exports of queen bees and package bees are expected to grow, with continuing demand from North America.

There is also an increasing demand for bees for crop pollination. Colonies are transported specifically for the purpose of orchard pollination (mainly for kiwifruit, berryfruit, apples, and stonefruit).

Approximately 300 beekeepers completely depend on beekeeping for their livelihood. A further 250 earn at least part of their income from beekeeping. Commercial and semi-commercial beekeepers are represented by the National Beekeepers' Association of New Zealand, based in Wellington.

A hive levy, payable by all beekeepers who own 50 or more honey-producing hives, is administered by the association for the benefit of the industry generally. The rate of the levy is reviewed annually—and was $1.61 per hive in 1993.

Apiarist displaying the poor results of a wet season.

Table 16.30. Apiaries and Honey Production*

DistrictBeekeepersApiariesHivesHoney production

*Year ended 30 June.

Previously Alexandra.

Source: Ministry of Agriculture and Fisheries.

  number tonnes
1992    
Whangarei13163072323011200
Hamilton6273044454521068
Tauranga602357351938998
Palmerston North13323927375541231
Blenheim497204823941650
Lincoln7584949590902870
Alexandra5854344537891543
            New Zealand5717249573040659560
1993    
Whangarei12643033309671033
Hamilton596298543185811
Tauranga606359353043958
Palmerston North1319396138446577
Blenheim484203622448560
Lincoln7655143581161611
Invermay†5884373527771536
            New Zealand5622251242989827086

16.7 Crops and horticulture

Although pastoral farming is the major land use in New Zealand, in recent years there have been significant increases in the area planted in horticulture and other crops.

After a period of decline in the 1980s the area planted in traditional cereals, such as wheat, barley and maize, is stabilising. This has occurred as the profitability of cereals has improved relative to that of other crops and farm enterprises. There has also been an increase in plantings of pasture seeds and specialist crops.

Major crops for the export market include kiwifruit, pipfruit, stonefruit, onions, squash, flowers and berryfruit. Grapes are grown mainly for the domestic market and for wine production.

Grain, vegetable and seed crops

Stock feed. Animals can be grazed in open pasture for the full 12 months of the year, but the winter growth of grass, except in certain favoured localities, needs to be supplemented in order to keep stock in good condition during the colder months, and in some districts supplementary fodders are necessary in the drier summer months. Hay and silage crops are grown almost exclusively on the farms where they are consumed, though some districts specialise in the growing of certain other supplementary fodder crops. The bulk of the supplementary fodders, other than grass and clover, hay, and silage, is grown in the South Island, since the colder climate necessitates more extensive supplementary feeding than in the North Island.

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 16.31. Grain and Peas 1992*

CropArea sownYields
North IslandSouth IslandTotalNorth IslandSouth IslandTotal
  hectares  tonnes 
Wheat7405303923779733223157816191039
Oats1510125231403352385238757625
Barley12150552306738055426263361318787
Peas1772208752264765296876175290
Maize17604362179661587925050163842

Wheat. New Zealand wheat is primarily grown for domestic human consumption and is milled for flour. Some wheat grain and the by-products of flour milling, bran and pollard are used for stock feed. Wheat constitutes 21 percent of the area planted in grain crops.

Most wheat is grown in the South Island in the Canterbury Regional Council Area. In the year ended June 1992 this region provided 68 percent of the total production of 191,039 tonnes.

Barley. Most barley grown in New Zealand is used for the manufacture of stock feed and for malting. Exports of malting and feed barley fluctuate in response to price changes, which reflect international supply and demand.

Barley makes up 48 percent of the area planted in grain crops and peas. The main growing area is the middle and southern parts of the South Island. In the North Island the main growing region is Wanganui-Manawatu, which provided 11 percent of the refined crop of 318,787 tonnes in 1992.

Maize. Primarily grown in the eastern North Island, maize is used as poultry feed and increasingly as a supplementary feed for pigs and other livestock. Of the area planted in grain crops and peas, maize makes up 14 percent. In 1992 the Waikato Regional Council Area provided 33 percent of the crop, and the Bay of Plenty 18 percent. The total yield was 163,842 tonnes in 1992.

Oats. Grown mainly for threshing and green feed, oats are also used to produce milled rolled-oats, oatmeal, and oaten foods. The total yield for oats was 57,625 tonnes in 1992. The main areas for oats are Southern Canterbury and Southland.

Field peas. In 1992, 76 percent of the total yield of 75,290 tonnes of peas were grown in the Canterbury Regional Council Area in the South Island. Of the total area planted in grain crops, field peas make up 14 percent.

Potatoes. The production of potatoes is usually adequate to meet home market requirements. In 1992, the total area planted in potatoes was 9,695 hectares. The main growing areas are the Auckland, Manawatu and Canterbury local government regions. Potatoes make up 25 percent of the total area planted in vegetables.

Seed certification. The Ministry of Agriculture and Fisheries operates a seed certification scheme covering all the main herbage and arable species (and participates in the OECD seed scheme). There are considerable exports of certified seed to EC countries, the Pacific Basin, and North and South America.

Cutting mustard crop.

Plant variety rights. Any breeder of a new and distinct plant variety may obtain a grant of plant variety rights. Such a grant gives the breeder, for a prescribed number of years, exclusive rights of commercialisation for the variety enabling the breeder to recover costs, and perhaps make a profit. The scheme is administered by the Ministry of Commerce. Rights may be obtained for varieties of all plants except fungi, algae, and bacteria. The New Zealand scheme complies with the 1978 Convention of the International Union for the Protection of New Varieties of Plants (UPOV).

Fruit

In the year to June 1992, 468,099 tonnes of fresh fruit at a value of $890.9 million was exported. outlines the main types of fruitgrowing in New Zealand.

Table 16.32. Areas Planted in Fruit

FruitAt 30 JuneMain districts
1988198919901992

*Areas of grapes planted by activities classified to winemaking are not included here.

  hectares   
Citrus—     
    Grapefruit/Goldfruit222200204167Bay of Plenty
    Lemons282277279334Bay of Plenty
    Mandarins358426490544Northland
    Oranges792770833826Northland, Bay of Plenty
    Tangelos502493475406Bay of Plenty, Northland
Pip fruit—     
    Apples9670102521133312283Hawke's Bay
    Pears798759903995Hawke's Bay, Nelson
    Nashi (Asian Pears)757762739590Auckland, Nelson
Stone fruit—     
    Apricots832857854814Otago
    Nectarines11491058946889Hawke's Bay, Otago
    Peaches115011321101958Hawke's Bay
    Plums330303324309Hawke's Bay, Auckland
    Cherries259269283272Marlborough, Otago
Berry fruit—     
    Blackcurrants655616703778Canterbury, Southland
    Blueberries532495346328Waikato
    Boysenberries421365311250Nelson
    Raspberries388340285220Nelson, Canterbury
    Strawberries246245313261Auckland
    Other brambles80686030Canterbury, Northland
Subtropicals—     
    Avocados1296131413541308Bay of Plenty, Northland
    Feijoas283255272243Bay of Plenty, Auckland
    Kiwifruit18905176941750815251Bay of Plenty
    Tamarillos477436420353Northland, Bay of Plenty
    Passionfruit80757574Bay of Plenty
    Grapes (outdoor)*4871483254085328Hawke's Bay, Gisborne, Marlborough
Persimmons441460488415Auckland

Pruning an olive plant, Blenheim. The tree is part of a five year old grove which is producing the first New Zealand grown cold press olive oil. The New Zealand olive oil has a very low acidity rate (lower than the average high quality oil) and is extremely pure.

Grape growing and wine production. New Zealand has an estimated area of 5,980 hectares (ha) of producing grape vines as at 30 June 1993. The major grape growing regions are Marlborough (1,997 ha), Hawke's Bay (1,616 ha) and Gisborne (1,498 ha). New Zealand's most widely planted grape variety is Chardonnay (1,232 ha) replacing Muller Thurgau (1,109 ha) which previously has been the predominant grape variety planted. Plantings of premium varieties (eg Chardonnay, Sauvignon Blanc) are planned to increase in the future whereas the plantings of bulk varieties (eg Muller Thurgau, Palomino) are forecast to decrease.

The 1993 vintage was the smallest for more than a decade. In total 41,000 tonnes of grapes were harvested compared with 55,000 tonnes in 1992, and 65,708 tonnes in 1991. The average yield was 6.8 tonnes per ha, down from 9.3 tonnes per ha in 1992 and 12.2 tonnes per ha in 1991. Production of the principal export varieties fell less than bulk grapes. This reflected improved weather in the latter part of the vintage and some new plantings coming into production.

Sales of New Zealand wine declined by almost 20 percent in 1992/93, due to the shortfall in stock availability from the 1992 vintage. Sales of New Zealand wine in the home market were affected particularly by the stock shortfall. Domestic sales fell to 33 million litres from 43.6 million litres in 1992. Export of New Zealand wine continued to grow due to greater availability of exported styles. Exports for the year to 30 June 1993 totalled 8.6 million litres worth $48.3 million, up 21 percent in volume and 39 percent in value on the previous year. This growth continues the surge in export sales evident since 1989. The industry has targeted exports to reach $100 million per annum by the year 2000.

The number of wineries in New Zealand has increased from only 97 in 1984 to nearly 180, with significantly increased investment and employment in wine producing regions.

Table 16.33. New Zealand Wine Industry Statistics

 Unit19891990199119921993*

*Estimated figures.

Source: Wine Institute of New Zealand.

Producing areahectares43704880544058005980
Average yieldtonnes per hectare13.814.412.29.36.8
Crushedtonnes6033570265657085550041000
Total productionmillion litres45.6x54.4x49.941.630.8
Domestic salesmillion litres39.139.241.143.6x33.0
Consumption per capitalitres (NZ Wine)11.711.712.112.89.7
Stock: sales ratiosales ratio1.52:11.73:11.65:11.28:11.31:1
Export Volumemillion litres2.64.05.67.18.6
Export Value$(millions)11.618.425.334.748.3

Table 16.34. New Zealand Wine Production, Sales and Stocks

 1989199019911992*1993*

*Estimates only.

Source: Wine Institute of New Zealand.

   litres (000)  
Production—     
White38.62747.07442.51335.2 
Red5.1605.2985.7464.5 
Sparkling0.3400.4210.3790.4 
Fortified1.5201.6521.2871.5 
                Total45.64754.44549.92541.630.8
Sales—     
White26.50029.95033.73937.5530.2
Red3.3003.7004.1004.303.2
Sparkling6.1005.3005.3005.655.0
Fortified5.8004.3003.6003.603.2
                Total47.70043.25046.73951.1041.6
Losses—1.0422.1303.1002.0...
Stocks—     
White42.01257.86055.79545.90 
Red9.4548.53911.26410.85 
Sparkling3.5913.1483.3263.25 
Fortified8.2577.4956.6025.50 
            Total63.31477.04276.98765.5054.7

Pipfruit (apples and European/Asian pears). As at June 1992 a total of 8,000 hectares were planted in apples and 650 hectares in European pears. The main production areas are Hawke's Bay and Nelson. Granny Smith, Red Delicious types, Royal Gala, Braeburn, Fuji and Cox's Orange Pippin are the most commonly planted varieties. European pear varieties are mainly Packham's Triumph, Buerre Bosc, Winter Nelis and Winter Cole.

Apple and European pear export marketing is carried out by the New Zealand Apple and Pear Marketing Board. The board is effectively a grower co-operative, charged with handling the international marketing and sales of all New Zealand's export pipfruit. The domestic market for pipfruit is de-regulated.

During the 1993 season a record crop of 24.4 million cartons of fruit was handled by the New Zealand Apple and Pear Marketing Board, with a turnover of $587 million. A total 12.7 million cartons of fruit was exported in fresh form, which equalled $445 million.

Asian pears (nashi) are gaining popularity. As at June 1992 there were 600 hectares planted in Asian pears in New Zealand. The main Asian pear growing districts are Auckland and Bay of Plenty and the main varieties are Hosui and Nijisseiki. Asian pear growing is well organised with this fruit being exported through licensed exporters. However, the New Zealand Apple and Pear Marketing Board shipped and marketed more than half the total volume of Asian pears exported from New Zealand in 1993.

Table 16.35. Apple and Pear Sales by the New Zealand Apple and Pear Marketing Board*

 199119921993

*For year ended 30 September.

Source: NZ Apple and Pear Marketing Board.

  $(000) 
Fresh fruit—export480,432512,066445,357
Fresh fruit—local41,17339,55641,653
Processed foods95,981108,06299,877
              Net return617,586659,684586,887

Summerfruit. At 30 June 1990 the areas planted in summerfruits were: apricots, 854 hectares; cherries, 283 hectares; nectarines, 945 hectares; peaches, 1,101 hectares; plums, 324 hectares.

The main summerfruit production areas are Central Otago, Hawke's Bay, Marlborough, Canterbury, and Auckland.

Most summerfruits are produced for local consumption, although there is an increasing focus on exports. In 1993, 2,423 tonnes were produced with a value of $11.6 million compared to 1992 with 3,703 tonnes with a value of $15 million. Nectarines account for 47 percent of the volume of exports, followed by apricots, cherries and peaches. Australia is the main export market, with South-East Asia and other markets being developed.

Exporting summerfruit comes under the Summerfruit Export Group of the New Zealand Horticulture Authority.

Kiwifruit. Kiwifruit is one of New Zealand's leading horticultural exports, earning $290 million f.o.b. in 1992. Export volumes have increased dramatically in the past decade. In 1992, the fourth selling season of the New Zealand Kiwifruit Marketing Board, which is sole exporter except to the Australian market, sales were 52.3 million trays. Global over-production has meant New Zealand growers have reduced output to remain viable. shows production.

Kiwifruit is produced in most regions of the North Island, as well as the north of the South Island. The Bay of Plenty, with 73 percent of production, is the major growing area.

The Kiwifruit Marketing Board's sales in its three major markets in 1992 were: Europe, 29.3 million trays (56 percent of total), Japan, 12.6 million trays (24 percent); and North America, 4.6 million trays (9 percent).

Kiwifruit packing warehouse.

Table 16.36. Growth in Kiwifruit Production

YearAreaExport traysSales trays
Source: New Zealand Kiwifruit Marketing Board.
 hectares(million)
198180576.26.2
19901574472.162.8
19911498059.854.7
19921459467.352.3

Avocados and subtropicals. Although small compared to the kiwifruit and pipfruit industries, export markets are being developed for a large number of these crops. In 1992, 2,028 tonnes of avocados were exported at a value of $8 million; in 1993, 1,281 tonnes were exported at a value of $5.3 million. The volume of persimmons exported in 1993 was 951 tonnes, a decrease from the 952 tonnes that were exported in 1992 at a value of $5.3 million. The various product groups of the New Zealand Horticulture Export Authority have formed export marketing strategies directed at achieving medium and long term stability and growth for the industry. These export marketing strategies are reviewed and updated annually.

Contributors

16.1-16.2 Ministry of Agriculture and Fisheries, Statistics New Zealand.

16.3 New Zealand Meat Producers Board.

16.4 New Zealand Wool Board.

16.5 New Zealand Dairy Board.

16.6 Statistics New Zealand, Ministry of Agriculture and Fisheries, National Beekeepers' Association.

16.7 Ministry of Agriculture and Fisheries, Statistics New Zealand, New Zealand Apple and Pear Marketing Board, New Zealand Kiwifruit Marketing Board, New Zealand Horticulture Export Authority, Wine Institute of New Zealand Incorporated.

Further information

Agriculture. Statistics New Zealand (annual).

Annual Review of the New Zealand Sheep and Beef Industry. New Zealand Meat and Wool Board's Economic Service.

Census of Agricultural Contracting Services, 1984-85. Department of Statistics.

Contacts in Agriculture. Harding McPhail (biennial).

Export Levels of New Zealand Wool and Wool Products and Their Current Markets. New Zealand Wool Board (annual).

Key Statistics. Department of Statistics (monthly).

Farm Monitoring Report. Ministry of Agriculture and Fisheries (six-monthly).

New Zealand Apple and Pear Marketing Board Annual Report.

New Zealand Beekeeper. National Beekeepers Association of New Zealand (quarterly).

New Zealand Dairy Board Annual Report.

New Zealand Meat Producer. New Zealand Meat Producers Board (quarterly).

New Zealand Meat Producers Board Annual Report.

New Zealand Pork Industry Board Annual Report.

New Zealand Wool Board Annual Report.

Report of the Ministry of Agriculture and Fisheries (Parl paper C5).

Situation and Outlook for New Zealand Agriculture. Ministry of Agriculture and Fisheries (annual).

Statistical Handbook. New Zealand Wool Board (annual).

Surveillance. (Reports on animal health). Ministry of Agriculture and Fisheries (quarterly).

Wine Institute of New Zealand Incorporated Annual Report.

Wool Market Review. New Zealand Wool Board (fortnightly).

Wool Report. New Zealand Wool Board (quarterly).

Chapter 17. Forestry and fishing

Kawerau Pulp and Paper Mill.

17.1 Forestry

Forests cover about 28 percent or 7.5 million hectares of New Zealand's land area. Of this, about 6.2 million hectares are in natural forest and 1.3 million hectares in planted production forests. Of the total planted production forest estate, about 89 percent is radiata pine (Pinus radiata), and 6 percent is Douglas fir (Pseudotsuga menziesii). Hardwoods comprise about 2 percent of New Zealand's planted production forests. The most important hardwood plantation species are eucalypts originating from Australia.

New planting has been increasing recently from 16,000 hectares in 1991 and 48,000 hectares in 1992 to 61,000 hectares in 1993. Nearly all areas which were already in forest were replanted after harvesting.

Although radiata pine is the principal plantation species its properties mean it is not suitable for all uses, especially where decorative features, dimensional stability and surface hardness are important. With the declining supply of timber from natural forests, special purpose species such as blackwood (Acacia melanoxylon) and black walnut (Juglans nigra) have been established to meet specialist markets.

The available wood resource from plantations is expected to rise rapidly over the next two decades. Because the domestic demand for timber is not expected to change significantly in the future, the volume of wood available for export is expected to increase dramatically, with about a twofold increase over the next ten years. However, major increases in supply are not expected until after the year 2000.

Forestry research is described in section 14.1, Organisation of science, while the role of the Ministry of Forestry is summarised in section 2.3, State sector.

Resources

Planted production forests. Trees planted in the eras of boom afforestation (between 1923 to 1936 and 1961 through to the mid-1980s) are reaching large-scale utilisation. There are now 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.

Special-purpose plantation species have also been evaluated and these are increasingly being planted by small scale forest growers on suitable sites. Uses for these timbers include furniture, cabinet work, turnery, joinery, veneers and boat-building.

Table 17.1. Forestry Planting and Production: Summary 1940-1992

Year ended 31 MarchNew area plantedRough-sawn timberWood pulp*Newsprint, other paper and paperboard
StatePrivate

*Chemical and mechanical wood pulp.

 hectares (000)hectares (000)cubic metres (000)tonnestonnes
19403 79322113079
19451 8031568120949
19502 11312178122136
19552214535301640917
1960321638221408164255
1965951739370499316104
19701581803521654445976
197521232086843244546834
1980182620001122456673834
1985203623061144911770098
198931718761259005735207
199012121211233809757371
1991-1622831348760822340
1992x-1623011343320780016
1993P-4826341280536746776

Natural production forests. Seventy-nine percent of the natural forests are state-owned, the remainder being freehold and leasehold land. A significant area is Maori land. The vast majority of the state's forests are managed by the Department of Conservation for soil and water, conservation and recreation values. The remaining 164,000 hectares are largely administered by Timberlands West Coast Limited for long-term sustained yield or to meet contractual demands for sawlogs.

Management of the state's natural forests which have been set aside for production of timber involves restriction of the annual cut, rigid insistence on full utilisation, and block sales of standing timber.

Selective harvesting of terrace rimu forest in south Westland is intended to provide a favourable environment for the regeneration of rimu, while in the central North Island harvesting of timber from the state's natural forest is now restricted to removal of totara for Maori cultural purposes, and to recovering dead trees from selected forests.

The remnant kauri forests are mainly state-owned. The management objective is perpetuating kauri ecosystems in the interests of science and public enjoyment, with areas of mature and immature kauri set aside as sanctuaries and programmes of research and artificial establishment also conducted.

Ownership of forests

Many of the earlier plantation forests were developed by the state, but the impetus for development and ownership has moved increasingly to the private sector over the last decade as the industry's capital and infrastructure has expanded. This led to the sale in 1990 of the cutting rights to 247,000 hectares of the state's planted production forest resource, and the sale in 1991 of a further 97,000 hectares.

Prior to these sales ownership of plantation forests was shared almost evenly between the public and private sectors. Today approximately 80 percent of the resource is in private ownership. The state holds the majority of the natural resource available for wood production.

Sale of state forest assets. The sale of management and cutting rights to Crown commercial forestry assets was officially launched by the New Zealand Forestry Corporation Limited on 25 October 1989. Rights to about 550,000 hectares of plantation forests were offered for sale in 90 units of varying sizes. The state-owned sawmilling operations at Waipa and Conical Hill were also offered for sale. However, the sale did not include the land or Maori leased forests. Prospective bidders were provided with detailed information on the sale, and bids for the forests were called prior to 30 June 1990. There was no distinction between domestic and overseas bidders. The Government retained the right to remain the owner of the resource if bids received were unacceptable.

Following consideration of the bids, management and cutting rights to 247,000 hectares were allocated to new owners, while the rights to 306,000 hectares remained unsold. Major purchasers of the first sale of state plantation forest resource were the established New Zealand forestry companies Carter Holt Harvey Limited, who purchased 94,000 hectares, and Fletcher Challenge, who purchased 49,000 hectares.

Several foreign owned companies made significant investments in New Zealand plantation forests. Juken Nissho Limited acquired the rights to 43,000 hectares, Earnslaw One Limited acquired 24,000 hectares, and Wenita Forestry Limited acquired 21,000 hectares.

The Conical Hill sawmill was purchased by Earnslaw One Limited, but the Waipa sawmill remains in Crown ownership.

Where management and cutting rights were not sold, plantations were transferred to three new state-owned enterprises: Forestry Corporation New Zealand Limited, Timberlands West Coast Limited and New Zealand Timberlands Limited. The Minister of Finance subsequently announced in the 1991 Budget Government's intention to sell New Zealand Timberlands Limited which manages about 116,000 hectares of plantation forest. American company ITT Rayonier subsequently purchased 97,000 hectares of forest managed by New Zealand Timberlands after the balance of 22,000 hectares was withdrawn from the sale. New Zealand Forestry Corporation Limited, the holding company for the three state-owned enterprises, continued to manage these forests for the Crown.

An agreement between the Crown, the Maori Council and the Federation of Maori Authorities provides security of tenure for purchasers of state plantations and protects the interests of Maori who have claims before the Waitangi Tribunal. Purchasers have the right to use the land for a period sufficient to permit any existing tree crop to reach maturity and be harvested. The right to use the land is automatically extended by one year each year unless notice of termination is given. If notice of termination is given, the purchaser will still have time to harvest tree crops planted prior to this notice.

In the event of a successful Maori claim the Government will issue notice of termination to the purchaser and compensate the claimant for the rights the purchaser retains until the end of the termination period.

Private forestry. The total area of planted production forests in New Zealand is 1.28 million hectares. Approximately 50 percent of the resource is owned by three companies, Carter Holt Harvey Limited, Fletcher Challenge and ITT Rayonier. Juken Nissho Limited, Earnslaw One Limited and Wenita Forestry Limited together own about 7 percent of the resource among them.

Employment and training in forest industries

Employment. There is a concentration of employment in the forestry and wood products industries near the largest forest areas, particularly in the central North Island. Over half the country's planted production forests are located there, with one-quarter of the regional labour force engaged in forest industries. Forest industries have had a marked effect on regional development. Established towns, such as Rotorua, have expanded, while industrial development has led to the establishment of a completely new town—Kawerau—and the rapid growth of another—Tokoroa. The development of such industrial complexes has also stimulated other industries, especially transport, vehicle repair, building and construction and the tonnage passing through the ports of Tauranga, Napier and Nelson.

Statistics New Zealand's annual Business Directory update recorded a total 26,570 people engaged in timber related industries in 1993. There were 4,552 people engaged in forestry, 3,880 in logging, 6,385 in sawmilling, 6,975 in timber merchanting, and 4,778 in pulp and paper manufacturing and wholesaling. This compares with 25,937 engaged in the same activities in 1992.

Education and training. Canterbury University offers a Bachelor of Forestry Science, a Bachelor of Engineering (Forestry) degree, a Diploma in Forestry and other post graduate qualifications. At Waikato University a forestry option has been introduced to the Bachelor of Science (Technology) degree. The University of Auckland, in partnership with the Pulp and Paper Research Organisation, provides a Diploma in Pulp and Paper Technology in order to equip future managers, early in their careers, with a thorough technical knowledge of the industry.

Waiariki Polytechnic operates the Forestry Training Centre and the Timber Industry Training Centre. The Forestry Training Centre holds block courses for the New Zealand Certificate in Forestry, and also offers a wide range of short courses in forestry-related subjects. The Timber Industry Training Centre provides apprenticeship block courses and other types of training in saw doctoring, timber machining, sawmill practice, timber grading and preservation.

Other polytechnics, as well as ACCESS/TOPs courses, provide pre-entry training in forestry, including logging.

Work and safety standards in forestry and logging are set and administered by the Logging and Forest Industry Training Board. The board has developed an accreditation system for forestry and logging skills.

The pulp and paper industry runs a Trade Certificate in Pulp and Paper Technology, as well as a Certificate in Pulp and Paper Technology aimed at the managerial level of employees.

The Forest Industry Training and Education Council (FITEC) was formed in March 1991. FITEC is concerned with co-ordination, policy and funding for various education and training programmes in forestry and solid wood processing. It maintains a regional network of FITEC boards to co-ordinate and implement programmes at a local level.

FITEC, in partnership with the Ministry of Forestry, has embarked on a major project to introduce forestry related materials into schools. This programme is funded through sponsorships.

Forestry worker cutting logs to the order length.

17.2 Timber and forest products

Timber

Roundwood. In 1992-93 logs from planted production forests supplied 15 366 000 cubic metres, or 99 percent of the total roundwood removals. shows the quantities of roundwood removed from the forests of New Zealand to support approximately 260 sawmills, 6 plywood, and 7 veneer plants, 3 particleboard mills, 6 pulp and paper mills, and 5 fibreboard mills in 1992-93. This roundwood production does not include firewood.

Table 17.2. Roundwood Production

Year ended 31 MarchNatural forestsPlantation forestsTotal
Source: Ministry of Forestry.
  cubic metres (000) 
198857091189688
19893771024210619
19903601151111871
19913681312613494
1992x2081420814416
1993P1941536615560

Sawn timber. Radiata pine and other pines account for about 88 percent of the total cut of exotics and Douglas fir for most of the remainder. About 4 percent of the country's sawn timber production comes from the natural forests, and this proportion has reached the point where only a small, sustained yield in native timber is possible for special purposes.

Table 17.3. Rough-Sawn Timber Production

Year ended 31 MarchSoftwoods fromHardwoods fromTotal
Natural forestsPlantation forestsTotalNatural forestsPlantation forestsTotal
Source: Ministry of Forestry.
     cubic metres (000)  
19879319632056181192075
19886817331801171181819
19896018011861151161877
19907120332104161172121
19917221982270121132283
1992542237229191102301

Table 17.4. Sawn Timber Production by Species

SpeciesYear ended 31 March
19891990199119921993
Source: Ministry of Forestry.
  cubic metres (000)   
Natural forest—     
Rimu and miro5868695155
Matai-----
Totara-----
Kahikatea23223
Tawa56742
Beech1010744
Other--123
              Total, natural7587866367
Plantation forest—     
Pines15791799195019972379
Douglas fir191212224221160
Eucalypts1-112
Other30x23251926
            Total, plantation1801 x2034219922382567
            Total, all species1876 x2121228323012634

Round and split produce. As with forest products in general, most post and pole requirements formerly met by native round and split produce are now met from exotic resources. A dramatic increase in the volume of posts and poles treated with preservatives in the years 1955 to 1985 indicated the switch from native to introduced roundwood, together with the effective introduction and maintenance of timber preservation standards.

Export wood chips. The export wood chip industry originated in the Nelson region. Both native and exotic trees unsuitable for sawn timber production were used. The process also uses forest and sawmill residues which would normally be wasted. Mount Maunganui is the principal chip export port, handling about 31 percent. Nelson, which exports 27 percent, has fallen to third place after Bluff which handles 28 percent. Japan is the principal destination.

Other wood chip export ports include Mount Maunganui, Port Chalmers and Southport. Chip exports during the year ended June 1993 totalled 225,000 bone-dry units. (A bone-dry unit for radiata pine wood chips is equivalent to 2.63 cubic metres; and for beech, 2.25 cubic metres.)

Timber preservation. Approximately 1.4 million cubic metres of timber, including round-wood, is preservative treated in New Zealand each year. Factors which have encouraged growth in the timber preservation industry include: the versatility, availability and high permeability of non-durable exotic softwood species such as radiata pine; regulations requiring timber to be preservative treated; high levels of quality control; and a research programme carried out by the Forest Research Institute.

Timber preservation has expanded markets for timber products in the building, farming and export sectors.

The Timber Preservation Council is responsible for maintaining standards in the industry.

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. Ministry of Forestry timber inspectors inspect and disinfect imported wood and wood products, including logs, sawn timber and manufactured wood products.

Wood utilisation standards. There are a number of inter-related standards concerned with the processing and use of timber. These promote the correct processing and use of timber, safety, and provide consumer protection and a sound basis for trading.

Forest products

Pulp and paper. The pulp and paper industry is mainly concentrated near the big planted production forests on the volcanic plateau of the North Island. Of the eight plants in New Zealand, seven are in the North Island, and four are integrated with sawmills to utilise fully the total input of wood. There are four main pulp and paper companies.

The Tasman Pulp and Paper Company Limited, part of the Fletcher Challenge Corporation has its plant at Kawerau, Bay of Plenty, where wood from Kaingaroa State Forest is utilised.

In 1990 Carter Holt Harvey Limited acquired the assets of Elders Resources NZFP Limited. NZFP Limited operates an integrated pulp mill, paper mill, plywood mill, and a reprocessing plant at Kinleith, near Tokoroa. A corrugating medium machine at Te Papapa produces corrugating medium paper from waste paper.

Whakatane Board Mills Limited, a subsidiary of NZFP Limited, manufactures paperboard from groundwood and from semi-chemical and waste-paper pulp produced on site. A sawmill operates adjacent to the board mill.

Caxton Paper Mills Limited, at Kawerau, also owned by Carter Holt Harvey Limited, manufactures a wide range of tissues and lightweight merchant and processing papers for domestic and export markets.

New Zealand Paper Mills Limited, at Mataura, is also a subsidiary of NZFP. It has two 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.

Pan Pacific Limited operates an integrated sawmill and thermo-mechanical pulp mill at Whirinaki, near Napier.

Winstone Pulp International has a chemical thermo-mechanical pulpmill at Karioi. The plant uses wood from Karioi State Forest, as well as sawmill residues.

Table 17.5. Pulp and Paper Production

Year ended 31 MarchWood pulpPaper and paperboard
Chemical*MechanicalNewsprintOther printing and writing paperOther paper and paperboardTotal paper and paperboard

*Chemical includes semi-chemical pulp.

Mechanical includes groundwood pulp, thermo-mechanical and chemithermo-mechanical pulp.

Source: Ministry of Forestry.

         tonnes   
198860178961015025501947707398079700805
198966393659506929629540323398589735207
199065823057557929488137802424688757371
199173324061552032128635178465876822340
1992673949x669371x35635119949403716780016
1993P6197116608253761058795371113756013

Wood-based panels. Six factories manufacture plywood, and the total output for the year ended 31 March 1993 was 86,426 cubic metres. Total production of veneer in the industry in 1992-93 was 116,959 cubic metres. Radiata pine has become increasingly important as a species for peeler-log supply because of the demand for industrial plywood, and constitutes about 96 percent of total peeler-log production.

Manufactured from wood fibre, the different forms of fibreboard (hardboard, softboard, and medium-density fibreboard) have different properties and end uses. Mills in Canterbury, Taupo and Richmond (near Nelson) produce medium-density fibreboard by a dry process for both domestic and export markets. Particleboard is manufactured from roundwood and sawmill residues and is used by the domestic market for interior panelling, flooring and furniture manufacture. Particleboard is also exported to various markets. A triboard plant operates at Kaitaia.

Table 17.6. Veneer, Plywood, Particleboard and Fibreboard Production

Year ended 31 MarchVeneerPlywoodParticleboardFibreboard
Source: Ministry of Forestry.
  cubic metres  
19888971463069170968301116
19898285563655178209412825
19908937368479171621442603
19917417960726159893463232
19928281057864x155428x513877x
1993P11695986426164933537602

Overseas trade in forest products

Exports. Forest products are important earners of overseas funds. For the year ended June 1993 exports of forest products were valued at about $2,324 million. Australia was the largest customer, taking 30 percent (by value) of exports, mainly in sawn timber, paper and paperboard, panel products and wood pulp. Japan was the next largest, taking 27 percent, mainly logs and pulp. The remaining 43 percent is taken by smaller customers, of which the largest was Korea, taking 14 percent.

Imports. The main categories of sawn timber imports are tropical hardwoods, Australian hardwoods, and North American softwoods. Imported sawn timbers generally have specialist applications such as weatherboards with a natural finish, decorative furniture, panelling, and boat-building. Durable Australian hardwoods are imported for use as large poles, crossarms, wharf, bridge and constructional timbers, and similar. Oregon pine, redwood, and western red cedar from North America are imported for structural uses, exterior joinery, and weatherboards. Specialty pulps, manufactured articles of paper and paperboard, together with paper and paperboard not produced in New Zealand accounted for 86 percent of the value of total forest products imports in the year ended June 1993. Imports of forest products for the year ended June 1993 were valued at $661 million.

Table 17.7. Overseas Trade in Forest Products

Year ended 30 JuneWood and wood productsWood pulpPaper and paper productsAll forest products
Source: Ministry of Forestry.
Imports cif       $(000)  
198876,51410,406258,607345,528
198979,68811,861297,367388,916
1990109,16414,682357,089480,935
199193,65610,068373,461477,185
199285,489x16,949440,889x543,327x
1993P94,32218,470548,272661,064
Exports fob       $(000)  
1988395,760353,599236,014985,373
1989537,680398,711300,7531,237,144
1990658,759386,817340,2951,385,871
1991843,643389,817343,8001,577,260
19921,028,666x379,168416,885x1,824,719x
1993P1,550,310352,709421,1062,324,125

Table 17.8. Volume of Timber Imports

Year ended 30 JuneHardwoodsSoftwoodsTotalLogs and poles
Source: Ministry of Forestry.
  cubic metres (000)  
19881818368
19891814327
19902025456
19911425404
19921319x32x3
1993P1218303

Loading logs for export, Aotea Quay, Wellington.

Table 17.9. Volume of Timber Exports

Year ended 30 JuneSawn timberTotalLogs and poles
Natural forestRadiata pineDouglas firOther plantationTotal plantation
Source: Ministry of Forestry.
   cubic metres (000)    
198853366213411416830
1989540867335085141545
1990444273295445482170
19912566x83306796813293
199227158647x848x850x3793
1993P389257419909924734

Table 17.10. Volume of Overseas Trade in Pulp and Paper

Year ended 30 JuneWood pulpFibreboard*Paper and paperboard
NewsprintOtherTotal

*In cubic metres.

Excludes manufactures from paper and paperboard and excludes minor items for which no quantities are given.

Source: Ministry of Forestry.

Imports  tonnes  
198811266465130507909992149
19891124566199328172991661
199011635138487399110699845
19911013419641609494062110156
19921685016556022110297x117318x
1993P1844217673193845193848
Exports  tonnes  
198858258616946815962176375235996
1989567836211472175752103263279015
1990560728240310201213112482313695
1991624954285586209158107651316809
1992656088336138x271469x116825x388293
1993P625382390909285850117293403143

17.3 Fisheries

Fishery resources

New Zealand's Exclusive Economic Zone (EEZ), which extends 200 nautical miles seaward from the low water mark around New Zealand and its offshore islands, is one of the largest in the world. At 1.2 million square nautical miles, it is about 15 times the land area of New Zealand. In spite of the large size of the zone, the waters are relatively deep and not particularly rich in nutrients and, because of this, the average productivity of the fishery resources tends to be low. Less than one third of the New Zealand EEZ is shallower than 1,000 metres, the fishable area in which most fish resources occur, and only one twentieth of the EEZ is coastal water shallower than 200 metres.

There are over 1,000 species of marine fish in New Zealand's waters, about 100 of which are commercially significant. The fisheries range from numerous, but mostly small, resources of subtropical species in the north, through moderate resources of many warm temperate species on the shelves around the main islands, to large resources of a few cool water species on the extensive plateau to the south east and east of the country.

New Zealand's marine fish fauna is diverse because there are elements of many faunas that converge near New Zealand, from migrant tropical tunas to deep cold water fishes. In some ways it is similar to New Zealand's human communities: derived from many parts of the world, a mix of residents, recent immigrants, and seasonal visitors, rather thinly spread through the environment with a few areas of high density.

Fisheries management

The fisheries within New Zealand's EEZ are a ‘common property’ resource and the Government has an important role in ensuring they are managed and conserved. In practice, this means ensuring the fisheries are not overfished while balancing the competing demands of various user groups.

The Ministry of Agriculture and Fisheries (MAF) is the lead government agency with responsibilities for the management of fisheries. Within MAF, the responsibilities for management are separated into policy functions and delivery functions. MAF Policy provides advice on fisheries management to the Government, having regard to such things as international conventions, obligations to Maori under the Treaty of Waitangi, user group demands, and resource constraints. One of MAF Policy's main functions is to advise government on the conservation limits that should be set to protect the fishery resources. MAF Fisheries provides services in the areas of stock assessment, management systems, and enforcement.

The methods of managing commercial fisheries in New Zealand have evolved from a system of open access with ‘input’ controls (controls on fishing effort by restrictions on such things as the number and size of vessels, fishing methods and closed seasons), to a system based on ‘output’ controls (controlling the levels of catch) in the form of Individual Transferable Quota (ITQ). These changes occurred in response to increasing concern over depletion of fish stocks and declining economic viability of the fishing industry. The Quota Management System (QMS) for fisheries management has been in place for all major fisheries since 1986 and is widely supported by the fishing industry. Before any commercial fishing operation can begin, a fishing permit is required under the Fisheries Act 1983, whether or not the targeted species is in the QMS. If a fishing vessel is to be used, it must be registered according to the Fisheries Act.

Under the QMS, ongoing assessments are made of the size and productivity of each fish stock (interbreeding population). The information provided by the stock assessments is used to set a sustainable total allowable commercial catch (TACC) for each fish stock, after taking account of recreational and indigenous catching rights. The TACC is allocated among individual commercial fishers and companies in the form of Individual Transferable Quota (ITQ). ITQ provides a fisher or company with a right to catch a share of the TACC. Individual fishers and companies may buy, sell, and lease their ITQ freely. Only New Zealand companies and individuals may own and control fishing quota. Foreign investment in New Zealand fishing companies that control fishing quota is limited to 24.9 percent of the voting power in that company.

The QMS provides security for participants in the fishing industry to invest in harvesting and processing capacity. Use of foreign chartered vessels to harvest New Zealand owned quota has enabled the domestic fishing industry to expand rapidly and employ the most cost-effective harvesting strategies while concentrating investment in onshore facilities. There has been substantial growth in New Zealand's value-added processing and marketing strategies since the inception of the QMS.

The QMS applies throughout the New Zealand EEZ for the main commercial species. There are many other fish species that can be taken commercially. Many are caught as a by-catch of fishing for quota species, and fishers who hold quota can land and sell this non-quota fish if it is taken as a result of their quota fishing activities. Some commercial fishers have permits to target non-QMS species, but there is currently a moratorium on the issuing of any new fishing permits.

In addition to the QMS, various methods are used under the Fisheries Act 1983 to manage other aspects of commercial fishing. These include:

  • Detailed national regulations covering fishing methods, species, and gear generally.

  • Detailed regional regulations governing area restrictions, minimum fish sizes, and fishing gear.

  • Controlled (limited entry) fisheries incorporating licensing provisions.

  • Restrictions on commercial fishing permits.

Recreational fishing is regulated by the use of daily limits for amateurs, minimum fish sizes, gear controls, method restrictions, closed areas, and closed seasons through both national and regional regulations.

Table 17.11. Total Allowable Catch, 1993*

Fish or shellfishQuantity

*As at 30 September. Excludes tuna species.

 tonnes
Alfonsino2652
Barracouta33202
Blue cod2725
Blue Moki357
Blue warehou4511
Bluenose2026
Elephant fish638
Gemfish7401
Grey mullet1086
Gurnard4979
Hake13847
Hapuku/Bass/Groper2165
Hoki202165
Jack Mackerel32546
John Dory1106
Ling19736
Mixed flats6670
Orange roughy35740
Oreo Dory26160
Packhorse Rock Lobster40
Paua1214
Red cod15930
Rig2072
Scallop1100
School shark3089
Silver warehou9514
Snapper6859
Spiny Rock Lobster2913
Squid123207
Stargazer5300
Tarakihi5990
Trevally3931
            Total580874

Commercial catch limits for the 1993/94 fishing year. In September 1993 the Minister of Fisheries adjusted total catch limits in six fisheries. The TACC for blue cod was reduced from 136 tonnes to 95 tonnes due to concern that commercial target fishing for blue cod might increase and to increase the availability of fish to recreational fishers. The blue moki TACC was increased from 157 tonnes to 200 tonnes as the stock appears to be rebuilding and unavoidable by-catch is occurring in trawl fisheries. Jack mackerel TACCs were increased from 8,670 tonnes to 17,000 tonnes. Evidence suggested that there is potential for larger catch limits in the jack mackerel fisheries, particularly for Chilean mackerel which is now the bulk of the catch in some areas. Catches will, however, be restrained to current regulatory limits until allocation issues are resolved for Maori. The orange roughy TACC was reduced by 20 percent from 2,879 tonnes to 2,300 tonnes as recommended by the industry. The TACC for stargazer was increased under an adaptive management plan from 22 tonnes to 50 tonnes to facilitate the development of a small target fishery. The minister also reduced the competitive purse-seine catch limit for kahawai from 1,666 tonnes to 1,200 tonnes. This decision was made in response to the uncertainty associated with the stock assessment and concern over the low catch rates being experienced by recreational fishers. In addition to this 466 tonne reduction, the moratorium on purse-seining in the Bay of Plenty was extended to cover the period 1 December to the first Tuesday after Easter, and the purse-seine exclusion areas on the east coast of Coromandel and in the Bay of Plenty were extended.

The minister did not change the Chatham Rise orange roughy or northern snapper TACCs. However, it was signalled that future orange roughy TACC reductions were likely and that such reductions would likely be significant but made in a phased manner. The minister announced that MAF and user groups were to work together to resolve problems in the northern snapper fisheries such as the misuse of overcatch provisions, highgrading, dumping, and illegal harvesting.

Table 17.12. Domestic Fleet Catch, 1992-93 Fishing Year*

SpeciesQuantity

*Does not include non-quota species.

Alfonsino1818.8
Barracouta28435.0
Blue cod1780.9
Blue moki376.8
Blue warehou3215.5
Bluenose2487.6
Butterfish/greenbone16.9
Dredge oyster733.5
Elephant fish609.2
Garfish0.2
Gemfish3164.4
Grey mullet701.9
Gurnard3682.6
Hake13129.9
Hapuku/Bass/Groper1492.4
Hoki192024.7
Jack Mackerel48196.3
John Dory845.5
Ling18685.7
Mixed flats5088.7
Orange roughy36576.9
Oreo dory23873.0
Packhorse rock lobster9.3
Paddle crab24.7
Paua1278.7
Pilchard0.05
Queen Scallop0.4
Red cod14216.9
Rig1635.3
Sardines/sprats0.05
Scallop827.1
School Shark2893.8
Sea urchin/kina/seae233.2
Silver warehou6705.2
Snapper7453.0
Southern bluefin tuna38.1
Spiny rock lobster3203.4
Squid37276.2
Stargazer3270.0
Tarakihi5167.4
Trevally3358.0
Yellow eye mullet29.8

Viewing the results of snapper research.

Maori fisheries

In September 1992, negotiations were entered into by the Government and the Maori fisheries negotiators. The negotiators had a mandate from most Maori tribes to finalise a settlement of claims to fisheries on certain conditions. The negotiations proceeded in good faith from both sides and resulted in the signing of a memorandum of understanding which set the base for final negotiations.

These negotiations resulted in a final deed of settlement that was placed before a meeting of representatives of most Maori tribes in New Zealand and which after a period of discussion was signed by the majority of participants at the meeting. The deed and the Treaty of Waitangi (Fisheries Claims) Settlement Act resulting from the deed, clearly provide for a full and final discharge of the Government's obligations under the Treaty of Waitangi.

The settlement provided:

  • $150 million for the purchase of Sealord Products Limited.

  • Twenty percent of all new species to be transferred to Maori as they come under quota.

  • A new Treaty of Waitangi Fisheries Commission comprised of Maori to hold the assets in the interim.

  • For Maori to develop a policy for the distribution of any assets received in the settlement.

  • A requirement that the Government make regulations, in consultation with Maori, to recognise and provide for customary food gathering to the extent that such food gathering is not commercial in any way.

  • For Maori to be able to continue to take non-commercial fishing claims to the Waitangi Tribunal.

  • For the repeal of s88(2) of the Fisheries Act 1983 and thus remove the ability of Maori to take court action on claims.

  • The removal of the rights of Maori to take further claims in respect of commercial fishing claims.

While not being perfect in all respects, the settlement is a world leader in resource transfer to indigenous people. Other settlements have addressed claims to individual fisheries, but no other country has transferred over 35 percent of its total commercial fishing industry to its indigenous people.

The settlement with Maori over commercial fisheries clears the way for more species to be brought into the Quota Management System. Before the settlement, expansion of the system was prevented by court action taken by Maori against the Crown.

Aquaculture

Pacific oysters, greenshell mussels and salmon continue to be the mainstay of New Zealand's marine farming industry, and this is likely to continue through the 1990s. While production tonnages may not substantially increase, value-added processing and niche marketing is expected to generate increased income from these products.

The aquaculture industry is expected to diversify into other species during the 1990s, as government investment in biological research during the 1980s starts to pay off. Though industry investment has been limited by general economic conditions, work by MAF on the most promising new species (scallops, paua, rock lobster, dredge oysters and seaweeds) can now be capitalised on by industry. Paua farms are now established, and seaweed pilot projects are underway.

Reseeding, or ‘enhancement’, of the southern scallop fishery by MAF scientists and fishers has been spectacularly successful in increasing catches. Other valuable inshore fisheries, such as paua, rock lobster and snapper, may have similar potential for enhancement, but more research is required to evaluate the potential. However, a suitable tenure system needs to be devised to provide incentives for private sector enhancement of fisheries on the sea floor. Legislation is planned to allow this type of activity.

New Zealand's first major toxic algal bloom during the summer of 1992-93 resulted in shellfish harvesting being suspended until periodic testing (using United States Food and Drugs Administration criteria) indicated that harvesting and export could resume. A similar event could occur again in the future. However, the experience (and our response) served to reinforce New Zealand's image as a responsible supplier of high quality seafood products to the international market.

Processing and marketing

The New Zealand seafood industry has grown in the last 10 years from a relatively small industry, based upon inshore species, to one of the major export sectors of the New Zealand economy.

  • Ninety percent of earnings in the fisheries sector are derived from exports.

  • In 1992 exports of seafood products were worth about $1.2 billion, placing fisheries in New Zealand's top five sectors for export earnings.

  • Hoki, orange roughy, rock lobster, squid and snapper remain the most important export species for the New Zealand industry. These five species accounted for about 50 percent of the total value of seafood exports in 1992.

Table 17.13. Registered Commercial Fishing Vessels*

YearForeign licensed vesselsForeign chartered vesselsDomestic vessels

*At 30 September

Source: Ministry of Agriculture and Fisheries.

19901141882143
19911331602210
199244792802
1993251672707

Future policy directions

Fisheries legislation and policy in New Zealand is under review. The Government commissioned an independent Fisheries Review Task Force in 1991 which reported to the Minister of Fisheries in 1992. The Government is now working through the recommendations, but to date there have been no final decisions on future legislation.

MAF officer measures undersized crayfish seized on the North Island's east coast.

The broad policy direction for reform suggested by the Task Force is to enable a greater range of fisheries issues to be resolved by trade and negotiation between users, rather than by government decree.

Specific proposals under discussion include:

  • Cost recovery for management services from the fishing industry.

  • An efficient process for allocating ITQ in new species and obtaining a fair return to the Crown.

  • Simplification of the Quota Management System (QMS).

  • A more effective regime for managing and conserving species outside the QMS (currently under a permit moratorium) so that the expansion of the QMS is an orderly process.

  • A satisfactory structure of rights for aquaculture and enhancement that integrate well with the Resource Management Act.

  • A statutory framework that facilitates collective action for quota holders wishing to improve the value of their quota through better management of their fisheries.

  • Explicit criteria for environmental protection.

Development of new fisheries legislation was delayed partly because of the Government's efforts to resolve Maori commercial fishing claims. Successful resolution of these claims allows the Government to proceed with its commitment to introduce new commercial species to the Quality Management System. An expanded and improved QMS is expected to be the primary tool to manage marine fisheries in the future. The QMS achieves both sustainable environmental outcomes and provides for economic efficiency in the fishing industry.

17.4 Seafood trade

Exports. Seafood export revenue topped the billion dollar mark for the first time in 1992. This record year saw seafood exports become the fourth largest export earner behind meat and edible offal, dairy produce and forest products. The most significant species in 1992 were: hoki for the second year running, orange roughy and rock lobster. Hoki revenue has increased because of the higher demand for fillets. Orange roughy revenue has decreased with the availability of supply. Rock lobster revenue has increased with the demand for live product into Japan. The continued interest in New Zealand seafood by the EC and other Asian nations apart from Japan has kept the top three's (Japan, USA, Australia) market share at 66 percent.

Imports. New Zealand imported 20.5 thousand tonnes of seafood in 1992, an increase of 5.6 thousand tonnes on 1991. Total cost was $67 million, an increase of $5.4 million on 1991. The largest imported species continue to be prawns, shrimps, sardines and salmon which account for 56 percent of imports. The main product form of imports is prepared or processed which makes up 75 percent of all imports.

Table 17.14. Seafood Exports

Commodity exported1989199019911992
QuantityValueQuantityValueQuantityValueQuantityValue
Source: New Zealand Fishing Industry Board.
 tonnes$(m)tonnes$(m)tonnes$(m)tonnes$(m)
 (000)f.o.b(000)f.o.b.(000)f.o.b.(000)f.o.b.
Finfish or wetfish160.4529.2162.2520.8218.0701.0227.5887.7
Rock lobster2.782.22.783.62.8101.862.6228.6
Shellfish87.4185.645.8140.340.4158.42.8101.4
            Total250.5797.0210.7744.7261.2961.2292.81,217.6

Table 17.15. Principal Fish Exports

Species19881989199019911992
QuantityValueQuantityValueQuantityValueQuantityValueQuantityValue
Source: New Zealand Fishing Industry Board.
 tonnes$(m)tonnes$(m)tonnes$(m)tonnes$(m)tonnes$(m)
 (000)f.o.b.(000)f.o.b.(000)f.o.b.(000)f.o.b.(000)f.o.b.
Abalone0.718.90.616.50.725.11.137.91.151.2
Barracouta11.113.99.912.211.816.612.917.510.616.1
Gemfish1.97.51.78.41.910.81.411.11.614.9
Hake2.410.32.69.62.79.94.416.94.025.0
Hoki28.645.116.636.133.968.849.2156.357.2202.0
Ling3.414.83.615.74.016.66.129.09.150.0
Mackerel, Blue2.92.63.12.83.02.57.45.57.15.9
Mackerel, Jack12.212.510.011.310.710.814.410.121.823.3
Mussels6.124.36.928.88.834.210.742.112.852.4
Orange roughy19.5169.414.4167.216.7145.214.3138.612.1165.1
Oreo dory4.615.44.519.35.318.16.224.55.520.6
Rock lobster2.771.42.782.32.883.72.8101.82.8101.1
Salmon1.411.81.210.51.814.52.320.22.627.5
Scallops0.47.50.47.80.48.70.615.01.020.1
Scampi0.00.20.10.70.33.90.23.20.611.8
Snapper5.443.46.752.66.749.46.651.57.063.3
Southern blue whiting0.60.68.015.62.72.412.716.614.041.2
Squid34.652.978.7124.934.362.525.247.344.780.2
Tunas4.77.310.023.07.319.88.916.64.214.7
Warehous5.713.44.211.16.318.85.714.36.122.6

Table 17.16. Value of Fisheries Exports to Principal Markets

Country1989199019911992
ValuePercentage of total exportsValuePercentage of total exportsValuePercentage of total exportsValuePercentage of total exports
Source: New Zealand Fishing Industry Board.
 $(m) $(m) $(m) $(m) 
 f.o.b. f.o.b. f.o.b. f.o.b. 
Japan361.044.1279.437.3290.030.2409.233.6
United States229.028.0208.427.8253.726.4291.123.9
Australia80.29.886.411.5102.710.7121.810.0
    Total fisheries exports818.9748.8961.61,217.4    

Within New Zealand, the trend in recent years has been towards greater fish consumption per capita. Imported fish products consist largely of canned sprats, sardines, anchovies, herrings, salmon, crab sticks and prawns.

New Zealand Fishing Industry Board

The New Zealand Fishing Industry Board was formed to promote the interests of all sectors of the fishing industry. It is a statutory organisation with income from an industry levy. Outside its major responsibilities for orderly and profitable development of the industry, the board deals with issues at the request of individual fishers, processors, retailers and fish farmers.

Practical involvement with the industry is maintained by the presence on the board of two fisher representatives, two 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 a nominee, two members nominated by the Treaty of Waitangi Fisheries Commission and appointed by the Minister of Fisheries and one other member appointed by the Minister of Fisheries, complete the board's 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.

Board staff, stationed in Wellington and Auckland, provide centralised support for the industry in the areas of economic research, information and publicity. The board advises government on sound fishing management policies and practices by providing information, being available for consultation and by direct input into government decision-making. There is also close liaison with the Fishing Industry Training Council, in the provision of industry training at all levels.

Strong growth, in terms of both volume and value over the past two years, has generated increased employment opportunities in the seafood industry. Full-time employment rose from 8,292 to 9,057 from 1990 to 1992 (the industry also employs significant numbers of seasonal workers who are not included in these figures). Numbers employed in the catching sector rose slightly to 4,838 but most of the increase was due to the creation of 631 jobs in the processing sector. This trend looks set to continue as increasing the level of New Zealand involvement in harvesting and processing the country's fisheries is a stated objective of the seafood industry.

Orange roughy in cod end.

Fishery statistics

Statistics on fish landed and fish exports are compiled annually by the Ministry of Agriculture and Fisheries. A selection of these can be found above, while more detailed information is available from the ministry.

Statistic's New Zealand's (formerly the Department of Statistics) five-yearly Census of Fishing has produced broad economic data on the industry. The results of the most recent census formed part of the 1987 Economy Wide Census. The results from the census are updated annually by the Annual Enterprise Survey. Both the censuses and the enterprise survey cover the activities of all businesses classified in Division 13 of the New Zealand Standard Industrial Classification. A summary of results is given below.

Table 17.17. Fishing Industry Statistical Summary

Statistical item1987-88R1988-89R1989-901990-91
  number  
Group enterprises41424238
Enterprises within these group enterprises64635553
Enterprises not within these group enterprises1931190118061776
Activity units (including ancillaries)2021198618831852
Full-time equivalent persons engaged5085460547044642
  $(million)  
Stocks—    
    Closing19.131.638.725.5
    Opening15.727.034.617.6
Income—    
    Sales of goods and services548.9611.3668.0638.8
    Interest and dividends received6.15.311.44.5
    All other income received30.134.266.946.5
            Total income585.1650.8746.4689.8
            Adjusted for change in stock values588.5655.5750.4697.8
Operating expenditure—    
    Salaries and wages62.366.383.077.1
    Depreciation28.128.727.723.4
    Interest, bad debts, etc.20.726.230.415.8
    Indirect taxes0.70.81.11.7
    Purchases88.394.1120.090.1
    All other operating expenditure317.4351.7414.8414.6
            Total expenditure517.5567.7676.9622.8
    Working proprietors/partners salaries and wages10.510.713.116.3
    Net profit before tax after deducting working proprietors/partners salaries and wages60.677.160.458.7
Economic values—    
    Operating surplus93.4113.090.899.0
    Value added220.5243.6236.7207.8
Fixed tangible assets—    
    Purchases during the year115.4141.339.753.2
    Sales during the year16.010.714.610.7
Balance sheet—    
    Shareholders funds, etc.276.9273.9305.5331.9
    All other liabilities244.7273.2316.0286.0
            Total capital and liabilities521.6547.1621.4617.9
Fixed tangible assets249.9242.7226.6219.7
All other assets271.7304.5394.9398.2
            Total assets521.6547.1621.4617.9
 $$$$
Ratios—    
    Value added per full-time equivalent persons engaged43,372.552,903.350,319.044,760.9
    Value added per $1,000 of salaries paid3,537.43,676.52,853.32,693.9
    Total sales and other income per full-time equivalent person engaged115,072.3141,321.2158,663.8148,609.1
  percent  
    Net profit per total sales and other income10.411.88.18.5
    Total salaries and wages per total sales and other income10.710.211.111.2
    Value added per total sales and other income37.737.431.730.1
    Shareholders funds per total capital and liabilities53.150.149.253.7
    Fixed assets per total assets47.944.436.535.6

Contributors

17.1 Ministry of Forestry; Statistics New Zealand.

17.2 Ministry of Forestry.

17.3 Ministry of Agriculture and Fisheries.

17.4 Ministry of Agriculture and Fisheries; New Zealand Fishing Industry Board.

Further information

Forestry

A National Exotic Forest Description. Ministry of Forestry, 1993.

Economy Wide Census 86-87. Department of Statistics.

Business Activity Statistics 1992, Statistics New Zealand.

Market Report. Ministry of Forestry (quarterly).

Report of the Ministry of Forestry. (Parl paper C16).

New Zealand Forestry Statistics 1993. Ministry of Forestry, 1993.

Statistical Releases. Ministry of Forestry (series).

The Forestry Sector in New Zealand. Ministry of Forestry, 1993.

Fishing

Economy Wide Census 1987. Department of Statistics.

New Zealand Fisheries Technical Report. Ministry of Agriculture and Fisheries.

New Zealand Fisheries Occasional Publication. Ministry of Agriculture and Fisheries.

New Zealand Journal of Marine and Freshwater Research. Royal Society of New Zealand (quarterly).

Report of the Ministry of Agriculture and Fisheries (Parl paper C5).

Report of the New Zealand Fishing Industry Board (Parl paper C6).

Unemployed scallop fishers, Whitianga, July 1993. Beds between Coromandel and Tauranga were closed because of contaminated shellfish.

Chapter 18. Energy and minerals

Clyde Power Station.

New Zealand depends on a sustained supply of energy and mineral resources to ensure the continued operation of the economy, the maintenance of industrial and commercial activity, and the well-being of its citizens. New Zealand is not self-sufficient in a number of key energy and mineral commodities and the shortfall is made up by imports.

The energy and mineral sectors have undergone a series of structural changes over recent years. A strong focus on direct government involvement in the energy sector characterised the early 1980s. In 1987, however, the Crown sold its interests in the production, transmission and distribution of gas to the private sector company, Fletcher Challenge Limited. Also in 1987, the state's involvement in electricity generation and transmission and in coal production was transferred to two newly-created State-owned enterprises established as corporations with commercial objectives—the Electricity Corporation of New Zealand and the Coal Corporation of New Zealand. Since then there have been moves to deregulate both the electricity and gas industries, and to facilitate the development of competition in electricity and gas markets.

The provision of policy advice to the government on the operation of energy markets, energy supply and demand, energy efficiency, management of Crown-owned mineral and energy resources, and safety in the mining and energy sectors is the responsibility of the Energy and Resources Division of the Ministry of Commerce. The ministry also has operational responsibilities in these areas.

18.1 Energy sector

Energy policy

The key element of the Government's energy policy is to ensure the continuing availability of energy to commercial, industrial and household consumers at the lowest cost to the economy as a whole, consistent with sustainable development. To this end, the Government has taken a range of initiatives designed to ensure greater efficiency of energy use, to increase competition in the energy sector, and to provide greater flexibility in meeting consumer requirements.

The overall policy is outlined in the Government's Energy Policy Framework Statement, which it issued in 1992. In 1993 a supporting document, the Renewable Energy Policy Framework Statement was issued.

Energy markets. Recent initiatives to enhance the performance of energy markets have included introducing the Energy Companies Act 1992, which required electricity supply authorities, the gas trading activities of local authorities and energy boards to transform themselves into companies by 1 April 1993. The Electricity Act 1992 and the Gas Act 1992 introduced provisions for abolishing area franchises for gas and electricity markets and putting in place information disclosure requirements for these industries. These items of legislation also contained provisions for streamlining the safety regimes for the gas and electricity industries.

Climate change. The Government is actively involved in international co-operation that seeks to address the issue of the greenhouse effect and the possible impacts on global and regional climates. This involvement was formalised in the signing of the United Nations Framework Convention on Climate Change (FCCC) at the Earth Summit in Rio de Janeiro in 1992. In June 1993 the Government announced a Climate Change Strategy which in the interim focuses on net carbon dioxide emissions, the best understood of the greenhouse gases, but in the long term is designed to move to a more comprehensive approach. While in New Zealand the forestry sector has the potential to absorb carbon dioxide emissions, the energy sector contributes over 90 percent of the man-made emissions of this gas, and it is therefore energy sector initiatives which are sought for containment of gross emissions.

The Government has taken a number of significant steps which will limit carbon dioxide emissions; these include the energy market reform which will improve market efficiency and provide incentives for investment in energy efficiency, and the establishment of the Energy Efficiency and Conservation Authority (see below). In addition, the Government has been engaged in analysing the resource potential, cost and feasibility of renewable forms of energy, and in examining if there are any undue barriers to renewable energy development (see section 18.5). A key concern is that New Zealand should play its part in reducing emissions of greenhouse gases while maintaining its competitiveness in world markets.

Energy efficiency and the Energy Efficiency and Conservation Authority. Energy is a significant cost to households, industry and commerce. When properly managed, increasing the efficiency of energy use can reduce the cost of energy to the end user and from a national point of view, reduce demand. Similarly, improving the efficiency with which energy is produced and delivered will reduce the amount of primary energy required to meet a given level of demand. Thus energy efficiency can reduce the environmental impacts of energy production and use, and result in a slower rate of depletion of non-renewable energy resources.

In recognition of the importance of energy efficiency, in 1992 the Government established a new body, the Energy Efficiency and Conservation Authority (EECA) to promote energy efficiency and conservation. EECA's role is to develop, implement and promote strategies for energy conservation, to advise on these strategies, and to monitor existing energy sources and their use. EECA will also investigate potential new energy sources taking into account the long and short term economic, social and environmental impacts of such strategies.

Initially EECA had net government funding of some $2.3 million per annum. In June 1993 the Government announced the allocation of an additional $2.5 million for the 1994/95 year for energy efficiency initiatives to be taken up by EECA.

Oil security. The importance of oil security was highlighted during the 1990-91 Gulf crisis when measures were taken to boost local oil production. This was done in conjunction with International Energy Agency emergency procedures. While the crisis did result in price rises, these were not as great as in some other countries nor were there any problems with continuity of supply. International oil markets are now more flexible than they were in the 1970s, resulting in a reduced likelihood of major disruptions to imported oil supplies. Thus, while oil supply security is still an important issue, it is unlikely to be as crucial as it was in the 1970s.

Unless significant new oil and gas discoveries are made, New Zealand's long term self-sufficiency in hydrocarbons is expected to decline after 2005 as known oil and gas reserves run down.

Energy research. In 1992 the Government made decisions on its priorities for public good funding of research for the five years 1993/94 to 1997/98. These were presented in a document Investing in Science for Our Future, issued by the Ministry of Research, Science and Technology. Subsequently, the government funding agency, the Foundation for Research Science and Technology, has been preparing research strategies to implement the priority research themes.

For energy, funding from the Public Good Science Fund will increase by 25 percent to $5.77 million in 1997/98, and greater emphasis will be given to research in such areas as energy efficiency, alternative and renewable sources of energy, and social aspects. The energy research strategy will support the objectives of the Government's Energy Policy Framework and Renewable Energy Policy Framework Statements.

Trends in primary energy supply and energy consumption

'Primary energy' is that energy obtained from natural sources, which means that coal is accounted for as it is mined, oil products as they are imported in various degrees of refinement, natural gas as it is taken from wells in Taranaki and so on. Primary energy refers to all energy used in the economy including that lost or used in energy transformation from, for example, energy in gas to electricity. The proportion of total energy supply dependent on oil imports decreased during the mid-1980s (16 percent in 1986) but has gradually risen since (23 percent in 1992).

Petajoules are used to measure energy in a number of tables in this chapter. A joule is a measure of work done or energy expended and allows for standardised comparisons between different forms of energy and between energy supplied or consumed in New Zealand compared with overseas. A petajoule (PJ) which is 1015 joules or a terajoule (TJ) which is 1012 joules are commonly used.

Table 18.1. TRENDS IN PRIMARY ENERGY SUPPLY

Calendar yearCoalImported oil Indigenous Woods + productsoilElectricity from hydro + Gas geothermalTotalImported oil as percentage of total

Source: Ministry of Commerce.

    petajoules    
197462.817.7180.68.014.558.8342.452.7
197559.118.5194.18.316.064.0360.053.9
197660.519.1153.022.037.559.7351.843.5
197757.721.4153.731.563.656.6384.540.0
197853.421.7136.226.859.760.1357.938.1
197947.421.1149.917.939.969.6345.843.3
198050.822.6154.215.736.973.2353.443.6
198151.423.9130.721.045.174.1346.237.8
198250.923.3119.332.379.969.2374.931.8
198356.021.9122.831.586.474.4393.031.2
198452.722.2121.040.8109.777.1423.528.6
198552.124.0116.231.4140.174.2438.026.5
198657.722.975.458.6168.583.0466.116.2
198751.422.998.259.4162.782.3476.920.6
198849.424.575.961.7178.286.0475.716.0
198951.325.795.557.0182.886.4x498.7x19.1x
199052.4x25.8113.347.0181.6x89.0x509.1x22.3
199146.8x27.3x119.8x46.6197.8x88.6x526.9x22.7x
199249.326.1125.846.6209.880.4538.023.4

For hydro and geothermal electricity, the measure of primary energy is the electricity generated. This is justifiable for hydro-electricity which has a high degree of generation efficiency but is not so justifiable for geothermal generation of electricity where a large proportion of energy is wasted. However, this wasted energy is low grade and for the sake of simplicity is not shown.

Consumer energy is that energy used by final consumers and excludes energy used or lost in the process of transforming energy into more usable forms and in bringing the energy to the final consumers. Historical consumer energy use based on solid fuels (coal and wood), oil, gas and electricity is shown in , while how primary energy was used to meet demand in the major sectors of the economy during 1992 is shown in terms of petajoules in . The same data is shown expressed in terms of percentages of total energy demand in .

Table 18.2. TRENDS IN CONSUMER ENERGY USE

Calendar yearSolid*OilGasElectricityTotal

*Solid fuels include wood.

Source: Ministry of Commerce.

petajoules
19545559216132
19644890230170
197441151758257
1984401404883311
1985351365484309
1986411415388323
19874214054105341
1988551475294348
1989571544497352
199073x16240100x375x
199172x16041102375x
19926717741100385

Table 18.3. ENERGY SUPPLY AND DEMAND, 1992

 Source of energy
 Solid fuelOilGasHydroGeothermalElectricityTotal

Source: Ministry of Commerce.

 petajoules
Supply       
Indigenous production99.587.7210.172.990.9-561.1
Imports0.1168.6----168.7
Exports24.352.1----76.4
Stock change-1.00.3---1.3
International transport-31.8----31.8
            Total primary energy supply75.4171.4209.872.990.9-620.3
Transformation       
Electricity generation-9.8-2.7-74.7-72.9-75.1109.3-125.9
Liquid fuels production-29.2-58.7----29.5
Losses and own use-2.0-3.6-4.1--6-9.3-25.0
            Total, transformation-11.822.9-137.5-72.9-81.1100.0-180.4
Non-energy use--12.4-31.4----43.8
            Consumer energy (calculated)63.8181.840.99.89.8100.0396.1
Discrepancies-3.85.3-0.1---0.11.3
            Consumer energy (observed)67.4176.541.09.89.8100.1394.8
Demand       
Agriculture0.817.0---3.221.0
Industrial56.911.729.57.27.241.5146.8
Commercial2.85.74.92.62.618.634.6
Domestic6.87.74.1--36.054.6
Transport0.1134.42.5--10.8137.8

The following points should be considered when examining :

  • Consumer energy (calculated) = total primary energy supply + total transformation + non-energy use.

  • Consumer energy (observed) = agriculture + industrial + commercial + domestic + transport.

  • Direct use of geothermal energy (domestic consumption is included in the commercial/agriculture figure).

  • Solid fuel includes coke, peat and wood (wood is estimated).

Energy supply—the supply data is compiled from monthly returns. Other solid fuels and geothermal are estimated. Approximately 80 percent of geothermal is used as an input to electric power generation. LPG production is included in indigenous oil production.

Total primary energy supply—total primary energy is that amount of energy available for use in New Zealand for energy conversion and end-use. Primary energy = Indigenous production + imports - exports ą stock change - international transport.

Transformation—transformation of energy from one form to another always results in conversion losses. These losses are shown as negative totals in the table. Efficiencies for electricity generation are taken to be 34 percent for gas plant and 35 percent for coal. Hydro is taken as being 100 percent efficient and geothermal as 10 percent.

Energy demand—consumption data is estimated from information about where and how energy is used. Transport refers to on-road transport and rail transport. Motor gasoline includes alternative fuels. Total end use of gas is estimated from information about where and how energy is used. Total electricity generation in this table includes estimates of the generation by private plants and supply authorities.

PRIMARY ENERGY SUPPLY

Table 18.4. ENERGY USED BY CONSUMER GROUPS, 1992

 IndustryCommerce and agricultureTransport including internationalHouseholdThermal electricity generation
   percent  
Oil8.040.897.514.10.3
Solid fuel (coal and wood)38.86.50.112.510.4
Gas (natural and manufactured)20.08.81.87.589.3
Electricity (including direct use and geothermal)33.243.90.665.9-
            Total100.0100.0100.0100.0100.0

18.2 Electricity

New Zealand is fortunate to have many rivers suitable for generating cheap hydro power. Hydro electricity was first used in New Zealand in the gold mining industry and the first generating station supplying the public with electricity was installed in Reefton in 1887 by the Reefton Electric Lighting Co. The first general government operated station was the Lake Coleridge scheme opened in 1914. The first thermal station was Meremere which opened in 1958. In recent years hydro power has represented 70-80 percent of total electricity generation, depending on demand and lake storage conditions.

The New Zealand electricity industry is not vertically integrated. Generation is dominated by the Electricity Corporation of New Zealand (ECNZ), a state-owned enterprise, which supplies over 95 percent of all electricity. The operation of the national grid is carried out by Trans Power New Zealand, a subsidiary of ECNZ. The Government has decided that Trans Power should be separated from ECNZ to facilitate the development of competitive generation. Initially, Trans Power will be a Crown-owned company but consideration is being given to eventual changing to other ownership structures, as arrangements for a wholesale electricity market are developed. Distribution to final consumers—industrial, commercial and house-hold—is carried out by energy companies which have been established under the Energy Companies Act 1992 to succeed the former electrical supply authorities.

Electricity Corporation of New Zealand. ECNZ has 39 power stations, of which 38 are operational, which range in capacity from 3 MW (Megawatts) to 1,000 MW. ECNZ's newest power station, Clyde (432 MW), came on stream in 1992 after commissioning was delayed in order to carry out stability work on landslides around the lake margin of Lake Dunstan behind the dam. The final stage of filling the lake was completed in late 1993. The Meremere coal-fired power station was mothballed in October 1991 due to age, operating cost and asbestos and pollution problems.

Significant generation constraints developed in the winter of 1992, caused by exceptionally low in-flows to the major South Island hydro storage lakes in 1991 and early 1992. In the event, major power cuts were avoided by a combination of increased thermal generation, reduced hours of supply for domestic water heating and public street lighting and voluntary savings by consumers. Following the crisis, the Government appointed an Electricity Shortage Review Committee to investigate its causes. The committee recommended a number of changes, which included greater consultation and operational co-ordination between ECNZ and electricity distributors, increased encouragement of energy efficiency measures and that ECNZ should review the standards for security of supply built into its operational planning. A higher standard (allowing a one in 60 years drought as opposed to a one in 20 years drought) has been adopted as a temporary measure pending completion of the review of operational planning, and the remaining measures are progressively being implemented by ECNZ and electricity distributors.

Clyde Dam.

Trans Power operates the New Zealand transmission system. Its high voltage DC link between the South and North Islands is being upgraded to raise its capacity from 600 MW to 1,240 MW (South to North) and from 200 MW to 800 MW (North to South). Three new cables were laid in 1991, complementing the three original cables laid in 1965, and commissioned in 1992.

Electricity generation. The total electricity generated for the year ending 31 March 1992 was 31,905 GWh of which 71.8 percent was generated by hydro stations, 19.4 percent was generated using oil and gas, 6.6 percent was generated using geothermal and the remaining 2.3 percent was generated using coal. Both hydro and geothermal generation decreased over the previous year, while oil and gas, and coal generation rose.

As at 31 March 1993, the Electricity Corporation had 30 operational hydro-electric stations with a capacity of 4,761 MW (65 percent of total capacity) and eight operational thermal stations (plus Meremere which is currently non-operational) with a capacity of 2,564 MW (35 percent of total capacity). The high fuel cost and operating costs involved in running thermal stations as compared with hydro generally means that hydro stations produce a larger percentage of the nation's electricity. A small amount of electricity is generated by the Electrical Supply Authorities (ESAs) from 23 small plants. These small plants have capacities ranging from 0.2 to 53 MW and a total capacity of 317 MW. Many large industrial concerns have their own oil-based generating capacity which is used for emergency generation.

Table 18.5. ELECTRICITY CORPORATION OF NEW ZEALAND PROFIT STATEMENT

ItemYear ended 31 March
19921993

Source: Electricity Corporation of New Zealand.

 $(000)$(000)
Gross income1,631,4841,643,449
Operating expenses excluding abnormal costs795,504767,138
Net finance costs214,074345,326
Profit before abnormal costs621,906530,985
Abnormal costs-125,817
Profit before taxation621,906405,168
Taxation118,94375,567
Profit after taxation502,963329,601
Extraordinary expense53,796-
Profit after taxation and extraordinary expense449,167329,601
Less: Dividends335,034280,436
Transfers from reserves(16,237)(21,313)
Total appropriations318,797259,123
Retained earnings for the year130,37070,478
Opening retained earnings225,396314,071
Prior period adjustments-151,099
Opening retained earnings (restated)334,800465,170
Closed retained earnings465,170535,648

Table 18.6. ELECTRICITY CORPORATION POWER STATIONS

StationInstalled capacity at 31 March 1992Static headEnergy generation year ended 31 March
Number of unitsMW*19901991*19921993

*'In-situ maximum' rating.

Source: Electricity Corporation of New Zealand.

Hydro  metres kWh(million)  
Arapuni816053551844905915
Aratiatia38434373393353351
Atiamuri47925334340304303
Karapiro39630583620565569
Mangahao5192738810210998
Maraetai1036061952980273266
Matahina27261306315882882
Ohakuri411235454468424423
Rangipo2120206575543553579
Tokaanu4210208804820792781
Waikaremoana—       
    Kaitawa234135    
    Piripaua237113585}525488579
    Tuai358206    
Waipapa35116278284255259
Whakamaru410038551576531535
Arnold231327252726
Aviemore422037956958979729
Benmore6540922,3712,4982,4451,774
Clyde443259......1,278
Cobb632594198174195176
Coleridge935149214221222229
Highbank12510173808684
Manapouri76001774,0614,4404,3713,887
Ohau ‘A’4248581,2881,3281,290875
Ohau ‘B’4212481,0521,0791,054734
Ohau ‘C’4212481,0591,0811,062742
Roxburgh8320461,4861,4941,5571,414
Tekapo ‘A’12530162154158102
Tekapo ‘B’2160146928948953700
Waitaki710521514555536392
            Subtotal, hydro1244 744...20 82321 84521 36919 682
Thermal       
Huntly41,000...4,5625,1525,525 
Marsden2114...-4-8-581
Meremere6112...16121-3-
New Plymouth5575...7123041,0331,530
Ohaaki5106...624851891856
Otahuhu690...-12-15-1865
Stratford4198...54188372497
Wairakei9153...1,1811,2171,1741,257
Whirinaki4216...11124
            Subtotal, thermal452 564...8 1787 7118 9709 887
            Total1697 328...29 00229 55630 93929 569

Table 18.7. TOTAL ELECTRICITY GENERATION AND DISPOSAL

Year ended 31 MarchElectricity CorporationSupply authoritiesOther sourcesTotalSold retailNon-productive

Source: Ministry of Commerce.

   GigaWatt hours   
198625,9851,0191327,01724,2752,742
198726,9901,163728,16025,3492,811
198827,4751,1981328,68625,8052,883
198928,1781,2811329,47226,6982,774
199028,9751,1493330,15727,3652,792
199129,5831,1868930,85827,8193,039
199230,33981774931,90528,6093,296

Table 18.8. ELECTRICITY SUPPLIED BY ELECTRICITY CORPORATION

Year ended 31 MarchHydroGeothermalFossil fuelsTotal

Source: Ministry of Commerce.

  GigaWatt hours  
198720,5821,1745,19226,948
198820,8911,1835,42427,498
198921,9001,2375,05228,189
199020,8231,8056,37429,002
199121,8452,0685,64329,556
199221,3692,0656,90530,339
199319,6822,1137,77429,569

Electrical Supply Authorities. The Energy Companies Act 1992 provided for the corporatisation and resolution of the ownership of the 48 electrical supply authorities (ESAs) which operated New Zealand's distribution and retail electricity system. Previously they had been local government entities: the 37 Electric Power Boards were special purpose local authorities, and 11 district and city councils had also owned their own electricity supply operation. In the Electrical Supply Companies (ESCs), successors to the former Electric Power Boards, the shareholdings have a mixture of local authority, trust and direct consumer ownership, decided in consultation with the community. The 11 former Municipal Electricity Departments have been corporatised under the ownership of city councils.

As of August 1993 the corporatisation process was all but complete, although a few establishment plans for Electrical Supply Companies were still the subject of legal challenges. Some mergers took place as part of the corporatisation process, and additional mortgages or takeovers are possible in the future. It is expected that the restructuring will promote favourable outcomes for consumers and the economy and provide a basis for further investment in the energy sector. The ESCs generally buy electricity in bulk from ECNZ and then on-sell it to individual customers. Some ESCs have their own generation capacity, meeting part of their needs. ECNZ also sells power directly to several major industrial users, and to NZ Rail for the electrified portion of the North Island Main Trunk Railway.

Rural Electrical Reticulation Council. The council has in the past subsidised the cost of electrical reticulation or small scale private generators in remote areas. This was funded by a levy on electricity sales. The extension of supply is now essentially complete and the subsidy scheme ended. The council will have a transitional role in monitoring the impact of the electricity reforms on the rural community, and the Electricity Act 1992 provides for its dissolution not later than 1 April 1997.

Hydro supplies. The New Zealand electricity system is dominated by hydro-electric power. To minimise hydro spill, the total capacity of the system is 146 percent of the reserve peak capacity. The normal reservoir capacity is only around 13 percent of the annual electricity demand, that is equivalent to approximately six weeks of average national demand. The South Island normally has spare hydro capacity which is transmitted to the North Island through the high voltage DC link. Historically, the generation system was planned to provide a 7 percent margin of supply over consumption for years when drought reduced available hydro power to 85 percent of the mean supply (a 20 year drought). As earlier noted this has been raised to a 60 year drought standard as a temporary measure, following the recommendation of the Davison Committee.

Electricity markets. Use of electricity in the New Zealand economy is shown in . During 1991/92 industrial users accounted for 44 percent of the total demand, household demand was 37 percent of the total and commercial usage was 19 percent.

Table 18.9. ELECTRICITY MARKETS

Year ended 31 MarchDomestic*IndustrialCommercialFanning†Public lighting‡Rail and bus traction‡TotalElectricity account holders

*Includes domestic water heating.

Now included in ‘Industrial’.

Now included in ‘Commercial’.

Source: Ministry of Commerce.

GigaWatt hours
19869,08010,0384,4175781323024,2751,462,735
19879,42410,4724,7225671333125,3491,488,253
19889,42310,7324,9165661383025,8051,509,209
19899,51011,0655,2506861375026,6981,528,550
19909,82411,1875,4616551166627,3091,547,573
199110,26411,2005,4966871106127,8181,581,879
199210,47412,5845,550......28,6081,599,037

18.3 Fossil energy supplies

New Zealand has a wide range of energy resources ranging from coal and hydrocarbons to hydro-electric potential, geothermal energy, wind and solar radiation. Both hydrocarbons and coal resources are not renewable within the human time scale and geothermal resources can only be considered a renewable resource if extraction of energy balances the geothermal systems ability to recover through natural heatflow. Current exploitation of the resource is on a non-renewable basis.

Crude oil, condensate and gas

Crude oil is the primary fuel source in New Zealand and is the basis for most of the country's energy consumption for transportation. New Zealand does not produce enough oil and condensate to meet existing demand and some that is produced can obtain a better price overseas and so is exported. As a consequence, there is a continuing need for imports. Natural gas is New Zealand's largest hydrocarbon resource, but because of constraints in its transportation, its use is largely confined to the North Island. Natural gas has less value then crude oil and cannot be transported significant distances without either providing transmission pipelines or liquefying (LNG).

All of New Zealand's current hydrocarbons are produced from fields in the Taranaki region. Six fields were producing during 1993 (Kapuni, Maui, McKee, Kaimiro, Ngatoro and Waihapa/Ngaere) and a further three fields under appraisal (Ahuroa, Tariki and Kupe) are expected to commence production in 1996.

In the 1992 calendar year, natural gas production was 6,730 MMm3 (million metres3), up from 6,290 MMm3 (million metres3) in 1991. Natural gas was produced from the Kapuni, Maui, McKee, Kaimiro and Waihapa fields with production dominated by Maui at 76 percent of the total production and Kapuni with 20 percent. These were followed by McKee (2.2 percent), Waihapa (1.6 percent) and Kaimiro (0.1 percent). Condensate production was 973,188 tonnes, up 6 percent on the 916,461 tonnes produced in 1991. Condensate is produced from the Maui and Kapuni fields, with Maui dominant with nearly 77 percent of the total. Crude oil production was 779,014 tonnes, significantly down on the 963,583 tonnes produced in 1991. Crude is produced from the McKee, Kaimiro, and Waihapa fields with Waihapa dominating, although production from this field is declining. The McKee field is the second largest, while Kaimiro and Stratford both produced a small percentage of the total.

A second production platform for the Maui field ('Maui B') was installed in 1993 off the Taranaki Coast. When operational, this drilling platform will operate as an unmanned facility, connected by a pipeline to the main Maui A platform. In June 1992 a 2,500 tonne topsides module was installed on the anchored substructure, and a 15 kilometre pipeline was laid to the Maui A platform. Production commenced in early 1993.

The average daily production of crude oil, condensate and natural gas production and currently identified recoverable resources are set out in and .

Table 18.10. RECOVERABLE RESOURCES AND PRODUCTION OF OIL AND CONDENSATE*

Field/licenceEstimated reservesEstimated reservesProportion of total†Approximate average daily production

* At 31 December 1992.

Proportions based on energy content (petajoules) of reserve estimates.

Development of the field is not yet certain to proceed and reserve estimates are preliminary.

Source: Ministry of Commerce.

 millions of barrelspetajoulespercentbarrels per day
Maui77.943147.016,900
Waihapa/Ngaere14.99310.16,500
Kapuni15.4889.65,300
McKee13.4818.87,100
Kaimiro0.640.435
Kupe‡35.020522.3-
Tariki‡2.0121.3-
Ahuroa‡0.740.4-
Ngatoro........
            Total159.991899.935 835

Table 18.11. RECOVERABLE RESOURCES AND PRODUCTION OF NATURAL GAS*

Field/licenceEstimated reservesEstimated reservesProportion of total†Approximate average daily production

* At 31 December 1992.

Proportions based on energy content (petajoules) of reserve estimates.

Development of field is not yet certain to proceed and reserve estimates are preliminary.

Source: Ministry of Commerce.

 millions of barrelspetajoulespercentbarrels per day
 billion ft3petajoulespercentmillion feet3/day
Maui2,1822,41873.5435.9
Kapuni53541212.579.5
McKee75902.715.2
Kaimiro33280.91.0
Waihapa/Ngaere19210.66.7
Kupe‡2152266.9..
Tariki53652.0..
Ahuroa‡24290.9..
            Total3 1363 289100.0447.1

Industry

Petroleum imports and refining. About a third of New Zealand's net petrol needs are derived from the synthetic petrol plant at Motunui. The Motunui plant uses Maui natural gas to make petrol which can be used directly by some vehicles. Further processing is necessary, however, to make the petrol suitable for use in vehicles with high compression motors. This synthetic petrol is sold to the highest bidder and is often exported.

Most of the balance of New Zealand's petrol needs are produced at the Marsden Point oil refinery which is New Zealand's only oil refinery. The main refinery feedstocks are imported crude oil, and indigenous gas condensate and crude oil. Locally produced hydrocarbons make up 30 to 40 percent of the refinery's intake. These consist of the condensates derived from the Maui and Kapuni fields, and crude oil produced from onshore fields in Taranaki, chiefly McKee and Waihapa. Most of New Zealand's crude oil imports come from Saudi Arabia, the United Arab Emirates and Indonesia. Refined petrol is imported to make up any shortfall in supply. Some refined products are exported from New Zealand, chiefly to supply international shipping and aircraft. Use of the refinery is maximised, resulting in the refined product exports of around 11.1 PJ in 1992, which is equivalent to 6 percent of local consumption. Hydrocarbon production, imports and exports are summarised in .

Table 18.12. CRUDE OIL AND CONDENSATE, PRODUCTION AND TRADE

 Crude oil and condensate
YearNew Zealand productionImportsTotal*Exports

* Total indigenous supply and imports prior to exports.

Source: Ministry of Commerce.

  petajoules  
198661.5048.65110.158.38
198758.69102.82161.514.66
198870.66112.81183.4714.46
198979.21137.90217.1127.56
199081.63143.53225.1640.24
199185.28143.84229.1244.88
199276.95141.52221.1739.89

Use of natural gas. Around 36 percent of the gas produced in New Zealand is used by electric power stations at New Plymouth, Huntly and Stratford. Another 31 percent is used to produce synthetic petrol at Motunui and 10 percent goes to produce methanol at Waitara and 3 percent for the production of urea at Kapuni. Industrial and commercial users consume around 20 percent. There are a large number of domestic users but they only use 2 percent of the gas produced. The building industry and secondary production, in the form of dairy factories, pulp and paper mills, and freezing works, make up a large proportion of the industrial and commercial usage. The transport sector directly uses around 1.5 percent of the gas produced in the form of compressed natural gas (CNG).

Distribution. Over 30 percent of New Zealand's total supply of petroleum products is distributed via a refinery-owned pipeline linking the refinery with Wiri in South Auckland. The balance is distributed by coastal tankers chartered by the four large wholesalers (Shell, BP, Mobil and Caltex). At the main ports and at Wiri, products are stored in tanks and each wholesaler distributes products to retailers and bulk customers by road tanker.

Natural gas production centred on Taranaki is piped south to Wellington, north as far as Whangarei and also east to Gisborne via Napier and Hastings, and into the central North Island at Taupo. Much of the pipeline is owned by the National Gas Corporation (NGC). The major exception is the pipeline from Oaonui to Huntly which is owned by Maui Development Limited. There are also a number of other short pipelines owned by various companies, some of which are operated by NGC. LPG is shipped to the South Island by tanker. Much of this is used by industry or supplied as bottled gas. However, it is also reticulated in Dunedin and some parts of Christchurch.

Table 18.13. GAS PRODUCTION

YearNet natural gas production*Manufactured gas productionTotal

* Excludes reinjected gas, LPG extracted, gas flared and production losses.

Source: Ministry of Commerce.

  petajoules 
1986165.110.39165.50
1987160.090.15160.24
1988174.660.11174.77
1989180.580.10180.68
1990179.670.07179.72
1991195.86-195.86
1992205.96-205.96

Table 18.14. NATURAL GAS SUPPLY

YearDirect sales*Reticulated salesStock changeTotal production†

*Direct sales include sales to ECNZ, the synthetic fuels plant and all other customers supplied directly.

Totals do not add due to rounding.

Source: Ministry of Commerce.

1986124.9840.220.28165.50
1987117.8142.090.31160.24
1988133.1241.280.33174.77
1989139.4840.920.24180.68
1990140.3039.200.26179.72
1991152.0443.390.42195.86
1992164.8340.930.32205.96

Coal

Coal is New Zealand's largest energy resource with 8.6 billion tonnes potentially recoverable. The coal resource is relatively well known because of the New Zealand Coal Resources Survey programme of the 1970s and 1980s. Lignite is located largely in Southland and Otago and dominates New Zealand's recoverable coal resources (82 percent) with sub-bituminous coal comprising 14 percent, and high value bituminous coal located mainly on the West Coast of the South Island comprising less than 4 percent. This is in contrast to current production, of which lignite comprises 6 percent, sub-bituminous coal 66 percent and bituminous coal 27 percent.

The New Zealand coal industry faces competition from alternative energy sources, particularly for use in electricity generation, but despite this, production has climbed steadily since the deregulation of the industry in the 1980s. Production has concentrated on those resources that could be recovered easily or are of particularly high value. The export market for premium grade New Zealand coals has not suffered in comparison with the domestic market and international demand for specialist bituminous Westland coals remains good.

Long term the outlook for coal is good. The introduction of new thermal power generation technologies, such as combined cycle, may allow coal to be used for power generation at a cost and level of thermal efficiency that allows it to compete with natural gas. The newly developing technologies are also working to resolving some of the potential environmental impacts of coal use in thermal utilities, in particular, the level of carbon dioxide emissions.

Coal stockpile at Lyttelton Harbour.

Coal occurs widely in New Zealand. The major areas where coal is found have been divided into seven coal regions (Northland, Waikato, Taranaki, Nelson-Westland, Canterbury, Otago and Southland) with the Waikato, Westland and Southland being the major coal producing regions. The most important producing coalfields, with the class of coal found in each are:

Bituminous coal—Greymouth, Buller, Garvey Creek.

Sub-bituminous coal—Huntly, Maramarua, Rotowaro, Ohai, Kaitangata.

Lignite—Waimumu, Mataura.

Other coalfields with the potential to be major producers are Waikare, Mokau and Kawhia (sub-bituminous) and St Bathans, Roxburgh and Ashers-Waituna (lignite).

Table 18.15. RECOVERABLE COAL RESOURCES*

Coal regionMeasuredIndicatedInferredTotal

* Resources do not equate with reserves which are that part of the recoverable resource that can be extracted under current technological and economic conditions.

Source: Ministry of Commerce.

  million tonnes  
Waikato274.58390.81177.47842.86
Taranaki0.15147.0426.25173.44
            North Island total274.73537.85203.721 016.30
Nelson-Westland49.40199.8188.35337.56
Canterbury-0.010.700.71
Otago331.75735.2067.171 134.12
Southland1 225.514 358.31529.406 113.22
            South Island total1 606.665 293.33685.627 585.61
            New Zealand total1 881.395 831.18889.348 601.91

Exploration. Coal exploration remains at a low ebb. Except for on the West Coast, recent exploration concentrated on extending reserves within existing mining licence areas. On the West Coast, CoalCorp continued its investigations of the Mt Davy/Upper Seven Mile area in Greymouth and intends to investigate the Upper Waimangaroa sector of the Buller coalfield in conjunction with a join venture partner. Greymouth Coal Limited has been granted a new prospecting licence for its large Rapahoe prospect and is also applying for a mining licence. There has also been a general increase in interest in New Zealand's coal prospects with a number of companies carrying out reviews of New Zealand's potential.

Production and mining. In 1992 coal production totalled 2.984 million tonnes (MT), an increase of around 300,000 tonnes over 1991. The declared workforce in coal mining was 745 people, up slightly on 1990 when 723 people were employed but still fewer than 1989 when the workforce was 855 people. Opencase operations dominated production nationally with 2.21 MT (82.5 percent) extracted from opencast mines compared with 468,459 tonnes (17.5 percent) produced from underground mines. This is a continuation of a long term trend. In 1980, for example, 69 percent (1.49 MT) of all production was from opencast mines while in 1985, 72 percent (1.74 MT), and in 1990, 78 percent (2 MT) was from opencast mines.

Sub-bituminous coal continues to dominate output with 1.89 MT (63.7 percent) produced compared with 907,102 tonnes of bituminous coal (30.3 percent) and 179,666 tonnes of lignite (6 percent). The value of coal produced in New Zealand was $177.45 million up from $156.28 million in 1991.

Coal

Restructuring within the coal sector since the mid-1980s has led to increased overall coal production, higher productivity and reduced prices. Coal production in 1980 was 2.16 million tonnes and production has increased to 2.984 million tonnes (MT) in 1992, an increase of more than 25 percent. Total coal production in 1992 increased by 299,864 tonnes over 1991.

Opencast production increased from 2.215 MT in 1991 to 2.513 MT in 1992, an increase of just under 300,000 tonnes with much of this increase arising from increasing production from Coalcorp's Stockton opencast mines in the Buller Coalfield. Opencast production also increased in the Waikato region. Underground coal production in 1992 was 470,167 tonnes, a 1,708 tonne increase over 1992. The value of coal production in New Zealand in 1992 is estimated at $177.48 million, up from $156.28 million in 1991 and from $142.98 million in 1990.

Bituminous coal production in 1992 was 907,102 tonnes, an increase of 172,980 tonnes over 1991 while sub-bituminous coal production was 1.897 MT, a small increase over the 1.78 MT produced in 1991. Lignite production was 179,666 tonnes, a small increase over the 170,476 tonnes produced in 1991. All of the North Island's production was based on coal of sub-bituminous rank and represented 73 percent of all sub-bituminous coal produced. All bituminous coal is produced from the coalfields of the South Island's West Coast coal region.

The West Coast contains all of New Zealand's reserves of bituminous coal and most of the country's bituminous coal resources. Interest in developing new mines in this region have declined since the mid-1980s with the ongoing exploration by Greymouth Coal Limited and the redevelopment of the Roa opencast mine by Francis Mining the only significant developments. Lignite is mainly produced from Otago and Southland with a small amount produced on the West Coast. Lignite is New Zealand's largest energy resource.

Table 18.16. COAL PRODUCTION 1991-1992

Coal regionTotal 1991Opencast 1992Underground 1992Total 1992

Source: Ministry of Commerce.

Waikato1,473,2161,369,798190,8641,560,662
Taranaki20,3977,0393,16910,208
            North Island total1 493 6131 376 837194 0331 570 870
West Coast813,599905,247117,5751,022,822
Canterbury2,7692,450-2,450
Otago56,83556,338-56,338
Southland317,331172,972158,559331,531
            South Island total1 190 5341 137 007276 1341 413 141
            New Zealand total2 684 1472 513 844470 1672 984 011

In the North Island, the 1992 production of 1.57 MT increasing from the 1.49 MT produced in 1991 and the 1.48 MT produced in 1990. Production in the Waikato region was 1.56 MT, up from 1.47 MT in the previous year. Production in the Taranaki region continued to decline with 10,208 tonnes produced compared with 20,397 tonnes in 1991 and 39,546 tonnes in 1990. The number of operating mines increased to 18 in the Waikato dropping to 17 late in the year with the mothballing of Huntly West following an explosion. The number of mines in Taranaki remains at two. Opencast mines continued to dominate production with 1.37 MT produced by opencasts in the Waikato and 7,039 tonnes produced by a single opencast in Taranaki. All North Island coal produced is of sub-bituminous rank. Waikato remains New Zealand's largest coal producing region with 52.3 percent of total 1991 production, while Taranaki produced only 0.34 percent of the total. Overall, North Island production was 52.64 percent of New Zealand's total production.

In 1992 North Island production had a value of around $77.75 million, slightly greater than in 1991 ($73.9 million). This represents 43.8 percent of New Zealand's total coal production by value in 1992 ($177.45 million).

COALFIELDS

In the South Island coal production reached 1.41 MT, 222,607 tonnes more than in 1991. In the South Island there are 43 operating mines with one mine (Wangaloa opencast at Kaitangata mothballed since 1991). On the West Coast 14 of the 33 mines are underground mines and produced 0.117 MT while in the North Island five underground mines produced slightly more coal at 0.194 MT. Ground mines produced only slightly less coal at 0.214 MT. The largest mine producing bituminous rank coal is the Webb opencast in the Buller Coalfield which produced 369,260 tonnes with the adjacent Stockton opencast, the second largest bituminous coal producer with 345,278 tonnes. Output at Stockton increased significantly over the 107,483 tonnes produced in 1991. The Wairaki underground mine at Ohai was the largest producer of sub-bituminous coal in Southland with 158,559 tonnes mined during 1992, a slight increase over 1991. The Newvale opencast near Gore was the largest lignite mine and produced 102,808 tonnes of coal in 1992, an increase over the 99,727 tonnes produced in 1991.

South Island coal production was worth $99.69 million or 56 percent of total coal value, a $16.71 million jump in value over 1991. The high value bituminous coal exports represents a large proportion of the total value of production and accounts for much of the increase in value of production over 1991.

The demand for coal as a feed stock in thermal power stations has declined to a nil demand in recent years as alternatives, especially Maui gas, have become more cost competitive. Because of the 1992 power crisis, however, coal used in electricity generation at ECNZ's dual-fired thermal power station (980MW) at Huntly totalled 430,640 tonnes for that year. The New Zealand Steel plant at Glenbrook, south of Auckland, is the largest and most consistent single user of coal in New Zealand. It is possible, however, that unless significant new hydrocarbon resources are made in the near future this trend will be reversed as supplies of cheap indigenous natural gas decline.

Industrial usage (eg food processing, iron and steel manufacturing) uses almost 73 percent of domestic coal production. Commercial usage takes up 6 percent of domestic coal consumption, while total domestic usage uses almost 4 percent.

Before the first trial shipments of West Coast coal left New Zealand for Japan in the mid-1970s, little was known internationally about the special qualities of New Zealand bituminous coal. International customers and especially those in Japan, however, soon realised that New Zealand export quality coals had qualities which made them suitable for use in the chemical and steel industries. These properties included a consistently low ash and sulphur content, a fixed carbon content of around 60 percent, and a crucible swelling number equal to, or greater than, nine. Today, most of New Zealand's high-quality bituminous export coal comes from the Buller Coalfield. In the Buller Coalfield, CoalCorp's Stockton No 2 and Webb opencast mines currently have an annual production of 714,538 tonnes (1992). The coal is transported from the coal face to a coastal loading facility at Ngakawau by aerial cableway. From Ngakawau, the coal required for export is railed across the Southern Alps to the east coast port of Lyttelton. Coal exports for 1992 totalled 743,053 tonnes. Japan took almost 75 percent of this total with the remainder going primarily to India, China and the Netherlands.

Table 18.17. COAL PRODUCTION BY RANK, 1992

Coal regionBituminousSub bituminousLignite

Source: Ministry of Commerce.

  tonnes 
Waikato-1,560,662-
Taranaki-10,208-
            North Island total-1 570 870-
West Coast907,102115,349371
Canterbury--2,450
Otago-52,4653,873
Southland-158,559172,972
            South Island total907 102326 379179 666
            New Zealand total907 1021 897 243179 666

18.4 Geothermal energy

Production. Geothermal steam is used for electricity generation in the Wairakei and Ohaaki geothermal power stations, and is also used for direct process industrial heating, and for commercial and household heating. Geothermal waters are also used for recreational purposes and tourism.

Although geothermal systems occur widely throughout New Zealand, only those in the area between Lake Taupo and the Bay of Plenty (15 high temperature fields), and in Northland (Ngawha field) have the potential to provide a significant energy resource. The information that is available indicates that the geothermal resource is extensive and could comprise between 21,100 PJ and 43,000 PJ which could provide between 2,150 and 4,620 MW of electricity generation capacity.

Table 18.18. GEOTHERMAL RESOURCES OF NEW ZEALAND

Geothermal systemReservoir temperatureAreaInferred available heatEnergy estimates
MinimumMaximumMinimumMaximum

* The Taupo field comprises the Wairaki and Tauhara sub fields which are connected at depth.

   °Csq kmpetajoulesmegawatts (electricity)
Broadland/Ohaaki265-3075-116001,90060210
Kawerau250-3106-126002,20060230
Mokai280-32412-161,7003,200180340
Ngatamariki270-2806-127001,70080180
Orakeikorako230-28010-127001,70070180
Reporoa240121,0001,000110110
Rotokawa300-33015-182,5003,700270400
Rotorua25010-151,0001,500100160
Taupo*      
    Tauhara265-27918-222,2003,100230330
    Wairakei250-271252,1002,800260340
Te Kopia24165005005050
Tokaanu/Waihi25088008008080
Waimangu/Rotomahana26022-302,5003,400260360
Waiotapu220-29516-189002,90090310
Tongariro28015-201,7002,800180300
Ngawha225-32025-501,6009,800701,040
            Total  21 10043 0002 1504 620

18.5 Renewable energy

New Zealand produces a large proportion of its electricity from renewable resources. Hydro resources account for 70-80 percent of electricity generation and geothermal resources contribute a further 5 percent. There is also increasing interest in non-traditional renewable resources (such as wind, biofuels, solar, biogas and wave energy) for electricity generation and other uses.

Wind

With present technology, windpower is likely to be the largest non-traditional renewable resource available in New Zealand at reasonable costs in the future. Windspeeds have been measured at 12 potential wind farm sites in New Zealand. The average wind speeds at these sites range from 6.4 metres per second to 10.5 metres per second which is very favourable by international standards.

New Zealand's potential wind resource is huge. However, the cost of converting much of this wind power to electricity is estimated to be above the expected cost of traditional forms of generation for some time. It is nevertheless possible that some wind farms in particularly favourable conditions could produce electricity at costs that are competitive with traditional generation within the next few years. A demonstration wind turbine was installed in Wellington by the Electricity Corporation of New Zealand in 1993.

Wind power is expected to become more competitive as technological improvement brings costs down and as the options for further development of traditional forms of energy become more expensive.

Biofuels

Wood residues from pulp and timber processing, forest arisings from plantation harvests, short rotation fuelwood plantations, domestic firewood, and cereal straw from grain harvests are forms of energy that can be considered renewable if the biomass is replanted to replace each harvest.

Around 50 percent of wood residues are already used on-site to produce energy for industrial processes and it has been estimated that more energy (280 GWh) could be produced annually from wood residues at a reasonable cost. Fuelwood plantations have even greater potential (approximately 2,000 GWh per year) but are more expensive. Some further energy from forest arisings is expected to be available at a similar cost.

Several small short rotation woodlots have already been harvested for firewood. Woodlots for significant additional amounts of domestic firewood and cereal straw resources are estimated to be more expensive than traditional forms of energy.

Solar

Passive solar space heating through building designs that absorb, store and release heat from sunlight are potentially New Zealand's cheapest form of energy. Passive solar features are not explicitly included in most building designs at present. Passive solar design buildings need not cost any more to build than conventional designs and save energy over the life of the building.

Active solar space heating (using mechanical means to move the transport medium to where it is needed to heat rooms) and both active and passive solar water heating are currently more expensive than traditional forms of energy but are commercially available. It has been estimated that at present fewer than 5,000 New Zealand houses have solar water heating.

Solar energy can be used to produce electricity from photovoltaic cells and is used in New Zealand on a very small scale, mainly to provide power for small electronic installations in remote sites. Further use of photovoltaic energy is likely to be limited because of its cost.

Biogas

Biogas, a mixture of carbon dioxide and methane, can be obtained from anaerobic decomposition of purpose grown crops or organic materials such as straw or vegetables. It is produced in biogas reactors or effluent ponds. The number of biogas plants set up is currently very small. Biogasification plants are operated in the meat, dairy, pulp and paper, fish processing, rendering, vegetable processing, pig and poultry industries in New Zealand. It is estimated that there are several hundred thousand tons of organic material suitable for biogasification produced in New Zealand each year.

Biogas is produced from several municipal sewage treatment plants and is also produced from mixed municipal waste in landfills. Two landfill sites in Auckland, Greenmount and Rosedale, use landfill gas to produce electricity. Several other landfills are being investigated for their methane producing potential.

Wave

New Zealand's potential energy resource from waves is considerable. Wave energy systems have been produced overseas but face major design challenges before they can be proven to be practicable. The relatively low tidal ranges in New Zealand suggest that there is little prospect of harnessing tidal energy.

18.6 Minerals

New Zealand's mineral resources are diverse, but mining is generally on a small scale. Gold, ironsand, clays, and sand and gravel for construction are the main minerals mined. Total production of non-metallic minerals in 1992 was valued at about $216 million, while the value of metallic minerals totalled about $250 million.

Mineral production and resources. The legislative control of mineral production underwent a major change in 1991 when the Resource Management Act and the Crown Minerals Act replaced the Mining Act 1971, the Coal Mines Act 1979, the Iron and Steel Industry Act 1959 and the Petroleum Act 1937 on 1 October 1991. This change involved the devolution in responsibility for the assessment and management of environmental impacts to regional and district councils, and the requirement under the Crown Minerals Act for the development of minerals programmes with the objective of ensuring a fair and financial return to the Crown as owner and the efficient allocation of permits to prospect, explore and mine.

Metals

Iron. New Zealand has a large resource of potential iron ore in the black sands of the west coast beaches, from Westport south in the South Island and from Wanganui to Muriwai in the North Island. New Zealand Steel Limited has two mining operations in the North Island; Waikato North Head and Taharoa. The Waikato North Head deposit is mined using bucket wheel excavators. The titanomagnetite concentrate slurry is pumped through a pipeline to the steel works in Glenbrook where it is smelted in locally developed process smelters to produce a good grade of steel. The operation at Taharoa pumps titanomagnetite slurry to ships moored offshore for export to Japan.

Ilmenite and other heavy mineral sands. The beaches between Westport and Greymouth contain heavy minerals including significant quantities of ilmenite. This is a source of titanium dioxide, which is used as a filler and a pigment in paint, paper, plastics, cloth and rubber. Investigations into the mineral sands at Barrytown and Westport have led to mining licence applications being lodged over the Barrytown Flats where an annual production of 250,000 tonnes of ilmenite concentrate is proposed. These applications are still being processed.

Gold. Gold is present as alluvial gold in river gravels, as lode gold in quartz veins, and as disseminated gold, finely dispersed through host rocks. The hardrock forms of gold can be mined by underground as well as openpit methods. The majority of current gold mining operations in New Zealand are for alluvial gold, however, approximately 79 percent of total production in 1992 (8.32 tonnes) came from three hardrock mines, Martha Hill at Waihi, Golden Cross at Waitakauri in the Coromandel area and Round Hill at Macraes Flat in Otago. The opening of these mines had resulted in a dramatic increase in gold production from 1.216 tonnes in 1987 to 10.5295 tonnes in 1992. Alluvial gold mining occurs dominantly on the West Coast of the South Island, Otago and Southland. Extraction methods range from small hand-held plants worked by up to three people to large floating plants fed by hydraulic excavators. The trend in the industry is away from small plants to those of medium and large size which have a high throughput and can efficiently recover the fine gold that characterises the alluvial deposits of the South Island.

One such alluvial mine at Nokomai in Southland produced 0.724 tonnes of gold and is New Zealand's fourth largest goldmine.

GOLD PRODUCTION
By mining operations

Silver. Silver almost always occurs with gold in various proportions in the North Island. Historically, the Coromandel area had produced most of the silver mined in New Zealand and with the recent opening of Martha Hill and Golden Cross, production has resumed, reaching 22.4 tonnes in 1992.

Tungsten. The principal ore of tungsten in New Zealand is scheelite. It has been mined on a small scale in Otago and Marlborough in the past, but there is no production currently. Scheelite is associated with the gold at Round Hill mine, Macraes Flat but it is not currently sold.

Other metallic minerals. There are small deposits of manganese minerals in many localities. Uranium minerals occur in Westland but resources have never been fully assessed. Some areas of Northland, Coromandel, Nelson and Westland have potential for base metals (copper, lead, and zinc) but there is currently little prospecting, in part because of uncertainty over land access. Iron ore, stibnite (antimony), orpiment (arsenic), chromite, monazite, nickel and rutile have been mined in the past and some are presently being investigated. Tin is known from Stewart Island, where less than one tonne has been produced. The aluminium ore, bauxite, is found in Northland where reserves of 20 million tonnes have been identified. Molybdenite occurs widely throughout Northwest Nelson but awaits full assessment. Historically, cinnabar, the principal ore of mercury was produced in limited quantities from sinter deposits in Northland. Interest in platinum in New Zealand recently underwent a brief upsurge with prospecting in Southland in the late 1980s.

Non-metallic minerals

Aggregates. Aggregates are the product of a variety of rocks, gravels and sands used in road works and construction. Aggregates are found throughout New Zealand and are usually mined by small operators to supply local needs. Large numbers of quarries from Kaitaia to Invercargill extracted the 19.1 million tonnes of aggregates, worth around $164 million in 1992. Major uses are for roading, reclamation and construction.

Clays. Clays are found throughout New Zealand and include bentonite, halloysite and kaolinite. They are used in the manufacture of sanitary ware, ceramics, bricks, tiles, pipes and pottery, and as fillers in the manufacture of paper, paint, pharmaceutical and animal health products. Clay production dropped from 142,400 tonnes in 1991 to 84,480 tonnes in 1991. Clay production in 1992 was worth $14.65 million, up from $11.8 million in 1991.

New Zealand's biggest bulldozer at work, Martha Hill Mine, Waihi.

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. 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. Demand is low and in 1992 stockpiles were sufficient to meet demand.

Halloysite. Halloysite has been mined in Northland for more than 30 years. The New Zealand China Clay Limited mine at Matauri Bay is generally recognised as a world leader, but no production was reported in 1992.

Dolomite. Dolomite rock is produced near Collingwood. It is used in agriculture and home gardening and shipped to Whangarei for use in glassmaking. About 13,000 tonnes, worth around $259,000 was extracted in 1992.

Table 18.19. METALLIC AND NON-METALLIC MINERAL PRODUCTION, 1991 AND 1992

 19911992
 QuantityValueQuantityValue

Source: Ministry of Commerce.

 tonnes$tonnes$
Metals    
Gold6.7583136,459,40310249,278,064
Silver11.37052,553,961225,042,857
Ironsand concentrate2,264,84924,855,120934,11139,522,475
            Total2 264 867163,868,4842 934 143293,843,396
Non-metals    
Bentonite----
Clay for bricks, tiles, etc.121,030896,83656,721419,735
Clay for pottery, etc.21,33810,940,02527,75914,232,039
Dimension stone17,8981,385,84423,4322,926,016
Dolomite for agriculture9,549190,9804,39087,800
Dolomite for industry11,636232,7208,553171,060
Limestone for agriculture946,05612,880,5311,299,55817,673,989
Limestone for industry364,0173,705,920400,5003,432,285
Limestone and marl for cement1,390,3676,944,639531,5131,637,060
Limestone for roads407,2133, 907,3571,489,1156,701,018
Perlite1,67430,6122,00036,560
Pumice52,644246,726112,476526,388
Rock for harbour work, filling, etc5,238,33825,351,7491,558,1698,227,132
Sand for industry494,4284,340,950427,7143,135,144
Sand, rock, gravel for building3,486,47637,921,3728,070,87696,285,551
Sand, rock, gravel for roads and ballast10,460,11195,959,2349,422,41959,959,364
Serpentine13,647312,46823,781542,207
Silica sand99,1322,869,89713,955403,997
Sulphur45114,355--
            Total23 136 095208,132,21523 501 174216,397,344

Greenstone. Nephrite, popularly known as “greenstone”, occurs in north Westland. A deposit of greenstone boulders in Olderog Creek, a tributary of the Arahura River has been the main source of greenstone recently. The boulders are reduced in size by a portable diamond trepan saw and airlifted by helicopter. No production was reported to the Ministry of Commerce in 1992. There is currently an unresolved Treaty of Waitangi claim over greenstone.

The best known occurrences of bowenite, the serpentine variety of greenstone, are in Fiordland.

Limestone. Limestone is found throughout New Zealand and is used in cement manufacture, reading, pottery and agriculture. High quality limestone from Te Kuiti and Nelson is processed for export. Limestone is also used in New Zealand as a filler in the paint, glass, rubber, plastic and paper industries. Marble, a crystallised form of limestone, is mined in Nelson. It is used as a filler and in building construction. About 2.2 million tonnes, worth around $22.7 million, were mined in 1992.

Salt. At Lake Grassmere in Marlborough, salt is produced by the solar evaporation of sea water. Low rainfall, long hours of sunlight and the right wind conditions make this locality the most suitable in New Zealand for salt production. About 60,000 tonnes is produced each year for New Zealand consumption.

Serpentine. Serpentine is a magnesium-rich rock used as a fertiliser additive. Deposits are mined at Wairere, and at Greenhills in the South Island. About 23,781 tonnes, worth about $542,000 was mined in 1992.

Silica sand. Northland, North Auckland and Canterbury have deposits of silica sand which are mined for use in glass manufacture, foundries and the building industry. About 14,000 tonnes worth $0.4 million was extracted in 1992.

Sulphur. Sulphur is mined from Rotokawa near Taupo. In 1991, 451 tonnes were produced, down from 2,689 tonnes in 1990, with none produced in 1992. Sulphur is mainly used for fertilizer.

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 diatomite (industrial fitration), barite (industrial uses include glassmaking and fillers), asbestors (building material), feldspar (glassmaking, ceramics, enamels), magnesite (used in agriculture), mica (used in electronics), phosphate (fertiliser), and wollastonite (insecticide, paper, asbestos substitute and plastics production). Pumice and sulphur are also extracted at present.

Mining and quarrying industry statistics

The Department of Statistics' five-yearly Census of Mining and Quarrying has provided broad economic data on the industry. The most recent census formed part of the 1987 Economy Wide Census. The results from the census are updated annually by the Annual Enterprise Survey. Both the censuses and the enterprise survey cover the activities of all businesses classified in Major Division 2 of the New Zealand Standard Industrial Classification. A summary of the results is given below.

Coverage: The mining and quarrying of coal and lignite whether from underground or open cast mines. Also included are coal crushing, pulverizing, cleaning, screening and sizing plants whether or not operated in connection with the mines served. Oil well and natural gas well operations, exploration and drilling; completing and equipping wells when not performed on a fee or contract basis. Included are all activities involved in making oil and gas marketable up to the point of shipment from the producing area.

Palmers Quarry, Dunedin. Since the quarry opened 107 years ago about 7 million tonnes of volcanic basalt rock has been removed.

Table 18.19a. COAL MINING, CRUDE PETROLEUM AND NATURAL GAS

Statistical items1987-881988-891989-901990-91
  number  
Group enterprises31292726
Enterprises within these group enterprises64696771
Enterprises not owned by group enterprises49484341
Activity units (including ancillaries)136140144146
Full-time equivalent persons engaged1,9021,7731,6121,747
Stocks $(million)  
    Closing49.953.956.657.2
    Opening45.051.353.855.5
Income    
    Sales of goods and services1,081.21,120.31,044.51,147.3
    Interest, etc. received41.742.637.671.4
    All other income33.117.55.26.2
            Total sales and other income1,156.11,180.41,087.31,224.9
Adjusted for change in stock values1,161.01,183.11,090.11,226.7
Operating expenditure    
    Salaries and wages75.685.279.880.8
    Depreciation135.7112.4105.8121.8
    Interest, bad debts, etc92.8120.6125.681.6
    Indirect tax67.078.473.964.5
    Purchases118.3151.264.162.5
    All other operating expenditure399.7422.8320.0326.0
            Total operating expenditure889.0970.7769.2737.3
Working properties/partners salaries and wages0.81.40.70.6
Net profit before tax, after deducting working proprietors/partners salaries and wages271.3211.0320.3488.8
Economic values—    
    Operating surplus323.0290.5409.0499.6
    Value added609.3572.7672.6772.7
Fixed tangible assets—    
    Purchases during the year258.3109.786.3517.8
    Sales during the year5.219.46.428.6
Balance sheet—    
    Shareholders funds, etc.2,193.72,249.82,253.72,998.3
    All other liabilities1,154.11,299.31,217.91,883.8
            Total capital and liabilities3,347.93,549.13,471.64,882.0
Fixed tangible assets1,702.51,768.21,632.52,493.7
All other assets1,645.31,780.81,839.12,388.3
            Total assets3,347.93,549.13,471.64,882.0
Ratios— $  
    Value added per full-time equivalent persons engaged320,372.2323,026.6417,260.6442,307.5
    Value added per $1,000 of salaries/wages paid8,064.96,721.98,423.79,557.9
    Total sales and other income per full-time equivalent persons engaged607,833.1665,788.6674,525.4701,150.4
  percent  
Net profit per total sales and other income23.517.929.539.9
Total salaries and wages per total sales and other income6.57.27.36.6
Value added per total sales and other income52.748.561.963.1
Shareholders funds per total capital and liabilities65.563.464.961.4
Fixed assets per total assets50.949.847.051.1

Contributors

  • 18.1-18.5 Ministry of Commerce.

  • 18.6 Ministry of Commerce; Department of Statistics.

Special articles

Electricity Corporation of New Zealand; Ministry of Commerce.

Further information

Energy

Annual Statistics in Relation to the Electric Industry in New Zealand. Ministry of Commerce.

Key Statistics. Department of Statistics (monthly).

Report of the Ministry of Commerce (Parl paper G40).

Wave Power Generation. Ministry of Energy, 1988.

Wind Energy Resource Survey of New Zealand. New Zealand Energy Research and Development Committee, 1987.

Electricity Corporation of New Zealand Limited. Annual Report, 31 March 1992.

Energy Data File. Ministry of Commerce.

Minerals

Economy Wide Census, Mining and Quarrying 1987. Department of Statistics.

Geothermal Resources of New Zealand, Resource Information Reports. Ministry of Commerce.

Key Statistics. Department of Statistics (monthly).

Mineral Resources of New Zealand, Resource Information Report II. Ministry of Commerce, 1991.

New Zealand Annual Mining Review. Ministry of Commerce.

Petroleum Resources of New Zealand, Resource Information Report II. Ministry of Commerce.

Report of the Ministry of Commerce (Parl paper G40).

The Coal Resources of New Zealand, Coal Geology Report 4. Ministry of Energy, 1988.

Chapter 19. Manufacturing

Computer-driven laser head cuts stainless steel patterns for commercial kitchen fabrication.

19.1 Manufacturing environment

Historically, industry policy was largely synonymous with selective sectoral assistance. Today, the nature and form of assistance has changed. A key difference in contemporary assistance policies, not only to manufacturing but to all sectors of the economy, is the provision of stability and greater certainty at the macro-economic level, with supporting reform designed to bring business costs down.

The current policy settings are intended to develop an internationally competitive New Zealand manufacturing sector. The Government's role in this area is not one of direct participation, but rather one of encouraging firms to improve their competitive performance.

Reforms to create this competitive environment have included the termination of import licensing and the decision to maintain tariffs only on imports of goods for which there is no local manufacture of suitable alternatives. By 1988 less than 10 percent of imports by value were subject to licensing, and by 1992 licensing disappeared all together. Tariffs were reviewed in 1987 and a five-step reduction programme was announced. The majority of industrial tariffs were halved over the period 1 July 1988 to 1 July 1992. This was followed in 1992 by the announcement of a further four-step tariff reduction programme to be implemented over the period 1993 to 1996, during which most tariffs will fall by one-third.

The tariff reductions have a dual effect on the manufacturing sector: they lower the cost of imported materials, while at the same time opening up the domestic market to international competition.

Other general economic policy changes have also had an effect on the manufacturing sector. More disciplined monetary and fiscal policies, lower inflation and interest rates, labour market reform (particularly the Employment Contracts Act 1991) and the floating exchange rate policy are particularly significant. Actions to reduce the costs for businesses have included the corporatisation and privatisation of state-owned enterprises and reform of the regulatory environment. Major reforms in some infrastructural sectors (notably transport, energy, finance and communication) have had a positive impact on manufacturing.

Changing industry assistance policies and a greater export focus have encouraged manufacturing to concentrate its efforts on maximising international competitiveness through measures such as quality management techniques. Important improvements have occurred in productivity, marketing and consumer services, information systems, moves to increase exports and in individual companies' mixes of imports and manufactures.

In the changed economic climate, the manufacturing sector has an increasingly outward focus. Questions of fair trade, technical barriers to trade, safety and environmental factors are all increasingly relevant. General economic policies are more critical in the new framework in which manufacturing has to operate.

Growth issues

Over the last two years manufacturing appears to have emerged from a period of contraction and adjustment to the liberalisation of imports and the economic reforms of the 1980s. International competitiveness and confidence in the domestic market characterise the start of what should be a period of sustainable growth.

Manufacturing investment grew by 20.5 percent in the year ended March 1993. Total real manufacturing sales grew by 6 percent in the same year, the strongest performance recorded for seven years. The value of manufactured exports rose by $440 million to $4,564 million for the year to June 1993, following a $480 million increase in the previous June year. The manufacturing sector's contribution to gross domestic product (GDP) was 5 percent higher in the quarter ended 31 March 1993 than in the same quarter in 1992.

If the sector is to consolidate on these results and translate them into sustained growth, it will have to meet a number of medium and long-term challenges. Tariffs will continue to reduce. Under a reduction programme which commenced 1 July 1993, tariffs in 1996 will have fallen to two-thirds of their 1992 levels. Some industries (motor vehicles and components, apparel, footwear, textiles and carpets) are subject to different programmes, but almost all tariffs are reducing. Post-1996 tariffs will be decided after a review to be undertaken in 1994.

With domestic manufacturing activity now relying heavily on continued improvements in international competitiveness, the implications for business (especially small-scale enterprises) of costs of compliance with various regulatory initiatives are important. The implementation of a wider taxation base has progressively increased costs for business, and some consider that an effective balance between the extension of the tax base and the increase in compliance costs has not been maintained. The Resource Management Act, environmental legislation and occupational health and safety regulations are other areas in which the balance of compliance cost and regulation are debated.

Increasingly, economic growth objectives are being called on to be consistent with the principles of environmental sensitivity and sustainability. The United Nations Conference on Environment and Development, in which New Zealand participated in Rio de Janiero in June 1992, adopted a set of 27 principles and a guide for implementation known as Agenda 21. Subsequent analysis by officials indicated that New Zealand was relatively well advanced in the implementation of the Rio objectives. However, environmental questions and the implications for economic growth and trade are likely to be dominant issues, both domestically and internationally, in the 1990s.

The Manufacturing Strategy, first published in 1992 by the Manufacturing Advisory Group, highlighted two imperatives for the manufacturing sector. The first was continued improvement in the competitiveness of the New Zealand economy; the second was an increase in the number of fully internationally competitive manufacturers. Organisations like the Business Development Boards, the Industrial Supplies Office and TRADENZ have taken an important role in helping new and established businesses improve their all-round performance, with a particular emphasis on export performance.

The establishment of free trade across the Tasman under the Australia New Zealand Closer Economic Relations Trade Agreement (CER) signed in 1983 has been, and will continue to be, a catalyst to the development of internationally-competitive and export-oriented manufacturing industry in New Zealand.

It is in the area of manufacturing that the mutual benefit of CER is most obvious. New Zealand rivals Japan as Australia's largest market for all manufactured goods and Australia is New Zealand's largest market for manufactures. In the year to 30 June 1993 provisional figures indicate that exports from New Zealand to Australia increased by 10 percent to $3.52 billion.

New Zealand also has much to gain from a successful conclusion to the GATT Uruguay Round. Manufacturers should benefit, both directly and indirectly, from expanded market access and fairer international trading rules.

Apprentice machining at Tiwai Point.

Manufacturing groups

Below is a brief description of some of the major secondary industries in New Zealand. Others, such as meat processing and forest products, which are among the major export earners, are described elsewhere.

Electronics. This sector has largely transformed itself from a predominant involvement with the manufacture of consumer electronics to a concentration on commercial, industrial, health and communications products and software. The major exception is whiteware, where investment in market preferences and development has seen continued expansion on the domestic market.

Engineering. The engineering sector comprises a variety of fabrication, structural and heavy engineering activities. Following extensive adjustment as the large energy-based products were completed in the latter half of the 1980s, the sector switched to serving local needs in areas such as forestry and agricultural production and processing. This experience has also been useful in developing overseas markets and the sector is now committed to export development.

Motor vehicles. The New Zealand industry, comprising the assembly of cars and light commercial vehicles and the manufacture of certain components, has continued to adjust to the progressively lowering levels of frontier assistance instituted in 1989. The sector has also faced the impact of technological improvement on motor vehicle performance, and has coped with the adverse influences of domestic and international recession. Following falling sales in 1991 and 1992, sales of new vehicles appeared to stabilise in 1993 as confidence in the domestic economy became more established. Although assembly is dependent on the domestic market, component manufacturing has developed significant export markets.

Plastics. This sector is now well out of the adjustment phase and operates by providing an efficient quality-based product to end users in a variety of industries. Major concerns are now with certain environmental issues such as the move to phase out ozone depleting substances and questions involving packaging and waste policies, including international developments such as the German ‘Green Dot’ system.

Metals. Steel and aluminium are the only base metals produced in significant quantities in New Zealand. Brass and copper are made in a number of forms, including downstream manufactures of tubing and plumbing fittings. Steel is produced by the unique direct reduction process using indigenous ironsands at the BHP-New Zealand Steel works at Glenbrook, while Pacific Steel produces rod and bar using scrap. Aluminium produced at the Tiwai Point smelter is a significant export earner utilising raw bauxite imported from Australia.

Timber. Increasing international demand has resulted in problems for some domestic processors in securing a long term supply of logs or sawn timber. Long prices on the export market increased dramatically in 1993 as international environmental concerns curtailed production from indigenous forests (particularly tropical hardwoods and North American softwoods), strongly-growing Asian economies boosted demand, and radiata from New Zealand's renewable plantation forests was recognised as an acceptable substitute for traditionally-used species. There have been similar increases in demand and price for sawn timber on the international market.

Many wood processors who do not own forests or hold long term supply contracts are finding it difficult to respond to these sudden changes in input prices. Companies who purchase sawn timber for further processing are also concerned about resource supply. Processors and re-manufacturers have been obliged to modify established purchasing and production practices in order to continue trading successfully.

Wine manufacturing.

Food. With annual exports to Australia worth some $500 million, the New Zealand food industry was significantly affected when, in August 1992, the Australian Government extended its Imported Foods Inspection Programme, establishing a series of checking procedures to ensure that all imported food complied fully with Australian regulations. Although the more rigorous system increased the costs of clearing foods into the Australian market, New Zealand food exporters' familiarity with Australian regulations meant that practically all products continued to meet Australian requirements.

Wine. In March 1993 the Wine Institute, with the support of the Grape Growers' Council, finalised its plans for the introduction of a New Zealand Regional Denomination Scheme and submitted them to the Government with a request that the necessary legislative and regulatory changes should be implemented. The draft Regional Denomination Scheme prescribes a hierarchy of geographical names which may be used on wine labels. It is essentially a ‘truth in labelling’ provision which would guarantee that the wine in the bottle was true to the names on the label.

The regional Denomination Scheme would, if implemented, complement a proposed agreement on wine between New Zealand and the European Community, negotiations on which were scheduled to commence in September 1993. Such an agreement could provide New Zealand with assured access, less rigorous conditions of market entry, reduced compliance costs and protection for our geographical names (eg Marlborough) in return for protection of most European geographical appellations (eg Beaujolais, Burgundy, Bordeaux, Chablis). The name ‘Champagne’ is already protected by a New Zealand Court of Appeal decision under the Fair Trading Act.

Textiles, apparel, footwear and carpet sectors

These industries were covered by the Industry Development Plans throughout the 1980s. The principal focus of the Industry Development Plans was on frontier controls with the basic intent of the plans being to achieve the gradual removal of import licensing and the reduction of tariff levels in a manner which would enhance the competitiveness and exporting potential of these industries.

Motif body suit and lashed pirate pants, designed and made in New Zealand.

Textiles and apparel. Textiles and apparel were amongst the last product groups to retain import licensing (licensing was removed from textiles in July 1991 and from apparel by July 1992). The import licensing regime covering these products significantly restricted the levels of imported textiles and apparel and therefore limited the extent to which the industries were exposed to international competition. The tariff reduction programmes for these industries have also been more gradual than those for most other industries, with tariffs on apparel imports in particular remaining significantly higher than those for most other industrial goods. Under the tariff reduction programme for the period July 1993 to July 1996, apparel non-preferential tariff rates will reduce from 40 percent to 30 percent. A revised regime of alternative specific (dollar value) rates for certain apparel has also been implemented. The provisions are aimed at addressing some of the problems of enforcing appropriate tariff levels for lower-cost apparel imports.

Textiles (a category covering a wide range of products) became subject to the Government's General Tariff Programme. This means that there will be one-third tariff reductions for most products in the period July 1993 to July 1996. However, a number of core textile products, namely fabrics, yarns, blankets and rugs, have been accorded a more gradual tariff reduction regime.

The progressive removal of import licensing and the reduction in tariffs have seen apparel imports from all sources increase significantly in the period 1988 to 1992, from $84 million cif to $308 million cif. This has led to a considerable rationalisation, and employment levels in the industry continue to decline. However, taken together, the textile and apparel industries remain significant employers. As at February 1992 there were 20,700 people employed in these industries.

During the 1988 to 1992 period export success has been achieved in the apparel sector, with exports of apparel increased from $30 million fob in 1988 to $123 million fob in 1992. Australia is New Zealand's main export market for apparel. However, efforts have been made to diversify export destinations, particularly into Asia. Joint Action Groups (JAGs) supported by the Trade Development Board and industry bring exporters together to develop strategies to overcome constraints to achieve export success. The range of clothing produced covers all main categories of garments. A substantial proportion of apparel manufacturers are small businesses.

Carpet. from 1985 to 1990, import licensing for carpet was gradually phased out. The final industry plan review of carpet took place in 1990 and set reducing tariffs for the industry through to 1996. These were revised in September 1991, with the result that carpet has been afforded a more gradual tariff reduction programme and one which is aligned with the Australian tariff regime for carpet. During the July 1993 to July 1996 period carpet tariff rates will reduce from 32 percent to 23 percent.

Tufted and woven carpet production in 1992 increased by 8 percent over the previous calendar year to 7.7 million square metres. Production of wool-rich carpets (80 percent or more wool content) was 6.5 million square metres or 84 percent of total production. The two main players in the New Zealand carpet industry, which produces predominantly wool-rich carpet, are Feltex Carpets and Cavalier Bremworth. As at February 1992 there were 1,200 people employed in the carpet industry.

Footwear. New Zealand has a long established footwear manufacturing industry. Historically, high levels of tariff and import licensing protection were reduced as a result of reviews under the Footwear Industry Development Plan in 1986 and 1990. On 1 July 1991, adults' footwear (the only category still requiring an import licence) was removed from import licence control. Under the current tariff reduction programme for the period July 1993 to 1996 adults' footwear tariff rates will reduce from 45 percent to 30 percent. Children's footwear tariff rates will reduce from 33 percent to 25 percent over the same period.

Considerable rationalisation of the industry has taken place since 1986, when the first significant reductions in protection occurred. Domestic production has reduced from 8.9 million pairs in 1986/87 to 4 million pairs in 1991/92.

The reduction in assistance has also led to a significant increase in the volume of footwear imports. In 1992, imports supplied more than 69 percent (7.7 million pairs) of the New Zealand footwear market, compared with 63 percent (6.8 million pairs) in 1991 and 18.6 percent (1.9 million pairs) in 1986. Exports have decreased from 1 million pairs in 1991 to 623,000 pairs in 1992 (June years). This is, however, still higher than the 300,000 pairs exported in 1986. As with apparel, Australia is the main destination for most of New Zealand's footwear exports. Tariff rates for the apparel, textile, carpet and footwear industries will be reviewed again in 1994 to set rates for the post 1996 period.

Manufacturing enterprises

shows the different types of manufacturing businesses recorded by a survey to update the Department of Statistics' Business Directory at February 1991. The data was among the most recent available at the time of going to press and shows major groupings under the New Zealand Standard Industrial Classification. shows the number of manufacturing activity units (business locations) and persons engaged over the last four years, again using the annual Business Directory update as a source.

Table 19.1. MANUFACTURING ACTIVITY UNITS AND PERSONS ENGAGED, FEBRUARY 1993

NZSICType of manufacturing Persons engaged size group
 0-56-910-4950-99100+Total
3111Slaughtering and meat processingActivity units13630262858338
  Persons engaged3362092,2861,95823,18427,973
3112Dairy productsActivity units4511411825140
  Persons engaged83831,0841,2984,8247,372
3113-3122Other foodsActivity units90225332347451,570
  Persons engaged2,3461,8516,5683,4108,84423,019
313BeveragesActivity units98284176180
  Persons engaged2292168175109092,681
314Tobacco productsActivity units132028
  Persons engaged019300433482
321TextilesActivity units570951392817849
  Persons engaged1,2487033,0242,1162,7789,869
322-324Apparel and footwearActivity units1,03012730249261,534
  Persons engaged2,1739126,7613,3914,24217,479
33Wood processing and productsActivity units2,37934143442213,217
  Persons engaged5,0112,4488,4452,8903,78722,581
341Paper and paper productsActivity units5913482022162
  Persons engaged1321041,1921,4785,8078,713
342Printing and publishingActivity units93718331132281,491
  Persons engaged2,2081,3345,7972,2065,25216,797
351Industrial chemicalsActivity units10331451412205
  Persons engaged2402261,0011,0051,6984,170
352Other chemicalsActivity unit2104196207374
  Persons engaged4933022,0541,4341,4175,700
353Petroleum refineriesActivity units200024
  Persons engaged6000663669
354Petroleum and coal productsActivity units281121042
  Persons engaged497317520425
355Rubber productsActivity units67143913124
  Persons engaged145101829577481,880
356Plastic productsActivity units233491271914442
  Persons engaged5443502,8251,2632,2867,268
36Non-metallic mineral productsActivity units6659111487885
  Persons engaged1,4096592,2044901,3186,080
37Basic metal industriesActivity units101275159193
  Persons engaged2671851,0763104,2996,137
381Fabricated metal productsActivity units1,83234743239162,666
  Persons engaged3,9232,5388,2652,5242,28819,538
382MachineryActivity units2,2643353162892,952
  Persons engaged4,8422,4065,7551,8981,13916,040
383Electrical machineryActivity units433681161920656
  Persons engaged9284912,3251,4794,4849,707
384Transport equipmentActivity units774118141232011,076
  Persons engaged1,5928402,9241,6486,19613,200
385Professional equipmentActivity units6010131286
  Persons engaged11974251505351,029
39Other manufacturingActivity units8987172601,047
  Persons engaged1,7875141,40837404,083
3        Total manufacturingActivity units13 8272 2873 30145537120 241
  Persons engaged30 11016 57267 23831 84187 131232 292

MANUFACTURING TODAY
Employment by industry type

Table 19.2. BUSINESS LOCATIONS AND PERSONS ENGAGED BY INDUSTRIAL CLASSIFICATION, 1990-1993

NZSICType of manufacturing Persons engaged
 1990199119921993
3111Slaughtering and meat processingActivity units330338339338
  Persons engaged28,89126,55026,64327,973
3112Dairy productsActivity units144147144140
  Persons engaged7,8157,4747,4487,372
3113-3122Other foodsActivity units1,4221,4461,5351,570
  Persons engaged22,83723,11223,18223,019
313BeveragesActivity units143155156180
  Persons engaged3,0553,1342,7452,681
314Tobacco productsActivity units9698
  Persons engaged648611558482
321TextilesActivity units817805824849
  Persons engaged11,99610,2059,7519,869
322-324Apparel and footwearActivity units1,4791,4911,4961,534
  Persons engaged19,67618,20916,85317,479
33Wood processing and productsActivity units2,9803,0933,1223,217
  Persons engaged22,58421,72121,32722,581
341Paper and paper productsActivity units172173170162
  Persons engaged8,5889,7299,0108,713
342Printing and publishingActivity units1,3341,3971,4241,491
  Persons engaged17,30117,38416,59316,797
351Industrial chemicalsActivity units211200203205
  Persons engaged4,2024,2554,2274,170
352Other chemicalsActivity unit338338381374
  Persons engaged6,0445,7575,7855,700
353Petroleum refineriesActivity units1613114
  Persons engaged843811828669
354Petroleum and coal productsActivity units34365742
  Persons engaged341324312425
355Rubber productsActivity units123122128124
  Persons engaged2,2512,0371,8001,880
356Plastic productsActivity units448456474442
  Persons engaged7,8817,2807,1987,268
36Non-metallic mineral productsActivity units864851849885
  Persons engaged6,9356,3065,7966,080
37Basic metal industriesActivity units190187194193
  Persons engaged7,0806,6656,0456,137
381Fabricated metal productsActivity units2,5652,5802,6272,666
  Persons engaged22,15120,89519,25419,538
382MachineryActivity units2,9062,9323,0052,952
  Persons engaged17,48316,47215,82016,040
383Electrical machineryActivity units674679680656
  Persons engaged11,01910,3379,5419,707
384Transport equipmentActivity units1,1031,0741,0531,076
  Persons engaged17,07114,64413,12913,200
385Professional equipmentActivity units1031029186
  Persons engaged1,2681,0089911,029
39Other manufacturingActivity units8409069861,047
  Persons engaged4,2204,0024,0794,083
3        Total manufacturingActivity units19 24519 52719 93820 241
  Persons engaged252 180238 922228 915232 892

Assistance to industry

The Government's Business Development policy is aimed at assisting regions to identify and capitalise on their own opportunities for development. As part of this policy the Government provides targeted assistance through its Business Development Programme. The objective of the Business Development Programme is to encourage New Zealand businesses to become more innovative and internationally competitive. Currently the programme comprises a network of 21 Business Development Boards, three grant schemes and the ExcelleNZ quality products.

The Business Development Boards. The Business Development Boards' major responsibilities are to administer the Business Development Programme Grant schemes, provide information to the public on other government enterprise assistance initiatives, encourage business growth and provide advice to the Minister of Business Development on matters relating to business development in their region. Board members are appointed by the Minister of Business Development and are selected for their business experience and knowledge of their region. The boards are located throughout New Zealand.

In 1993, the Government transferred some of the funding from the Mana Enterprises Scheme, administered by Te Puni Kokiri, to the Business Development Boards. This was to provide the necessary resources to ensure that the BDBs were able to improve the delivery of their services to Maori, the transferred resources were used primarily to add to each board's membership a member drawn from the local Maori business community in the board's region and to allow boards to hire or contract staff dedicated to working with Maori clients.

The Business Development Programme Grant schemes. The Business Development Investigation Grant provides up to $20,000 to firms or individuals towards investigating the commercial feasibility and/or technical viability of a potential commercial activity which is new to a region. For the year ended June 1993, 1,041 grants worth $8.6 million were approved. This represents a 28 percent increase in number and a 26 percent increase in value over June 1992 approvals.

The Expert Assistance Grant Scheme provides up to $8,000 for firms to engage consultants in key management areas where better performance will lead to sustainable improvements in efficiency. For the year ended June 1993, 473 grants worth $2.62 million were approved. This represents a 99 percent increase in number and a 106 percent increase in value over June 1902 approvals.

The Enterprise Growth Development Scheme provides up to $20,000 in a variety of areas to help firms improve their level of competitiveness by becoming more efficient and effective. For the year ended June 1993, 1,382 grants worth $4.74 million were approved. This represents a 131 percent increase in number and a 95 percent increase in value over June 1992 approvals.

For all three grant schemes, recipients are required to meet half the eligible costs themselves.

Fishing lure entrepreneur tells success story to TV's ‘Real Business’.

ExcelleNZ Quality Package. In August 1992, the Business Development Group of the Ministry of Commence took on the responsibility for the ExcelleNZ package. The ExcelleNZ programmes are being promoted as a key component of the Government's Business Development policy directed at fostering business excellence to lead to international competitiveness. The ExcelleNZ programmes are franchised from the Australian National Industry Extension Service and are delivered in New Zealand by consultants contracted to the Ministry of Commerce. These consultants are first screened by an assessment panel appointed from the private sector by the Minister of Business Development. If approved by this panel the consultant is required to complete formal workshop training before being offered a contract by the Ministry to deliver the relevant ExcelleNZ programme. The Minister of Business Development launched the World Competitive Service, the latest ExcelleNZ programme, in August 1993 to complement the Total Quality Management and World Competitive Manufacturing programmes. Training workshops for each programme are held when a sufficient number of consultants have been approved as potential deliverers of the programmes by the assessment panel.

Business Development Quality Awards. The Business Development Group of the Ministry of Commerce was commissioned by the Minister of Business Development to develop an award for delivery through each Business Development Board region which would recognise progress in the application of total quality management principles and educate businesses to embark on the quality journey. In the inaugural year (1993) of the Business Development Quality Awards over 180 applications were received from a wide range of organisations and 24,000 leaflets introducing the principles of total quality management were distributed throughout New Zealand. The Business Development Quality Awards are based on the US Baldrige award and are promoted as feeder awards to the New Zealand National Quality Awards which are recognised as the premier quality award in New Zealand, delivered by the New Zealand National Quality Awards Foundation to an international standard.

REGIONAL EMPLOYMENT IN MANUFACTURING 1993 - NORTH ISLAND
By major types of industry

REGIONAL EMPLOYMENT IN MANUFACTURING 1993 - SOUTH ISLAND
By major types of industry

Packing vitamin tablets.

Standards and Business Innovation. The Ministry of Commerce works to ensure that business is served by an infrastructure which meets its need to be internationally competitive in the area of standards and certification. To this end the ministry has developed a close relationship with Australia aimed at reducing the potential for product standards to become technical barriers to trade and increasing the international standing of New Zealand certification bodies. The ministry serves on the monitoring committee established by the Agreement on Standards, Accreditation and Quality and on the Council of the Joint Accreditation System of Australia and New Zealand, which was established by treaty in 1991. A recent development with Australia has been the proposal to establish a trans-Tasman mutual recognition agreement for goods and occupations subject to regulation and the ministry is contributing to the assessment of this proposal.

The ministry's role in developing the standards and certification infrastructure extends to the European Community, which is proposing to enter into agreements with third countries aimed at recognising each others' certification bodies and to the Asia Pacific Economic Cooperation countries which are undertaking a survey of member economies standards and certification policies and practices.

Innovation. Increased innovation is a goal of the ministry and it has investigated a number of areas relevant to the innovation capability of business, including management performance, business finance, networking and information flows. The ministry's activities in the area of business finance contributed to the establishment of the Greenstone Fund, a provider of equity capital in which the government is an investor along with three private sector parties.

Manufacturing statistics

Statistics New Zealand's Quarterly Economic Survey of Manufacturing (QMS) is designed to give a representative survey estimate of economic activity for each of the New Zealand Standard Industrial Classification (NZSIC) divisions within the manufacturing sector. The manufacturing sector is defined under the NZSIC as major division 3 which encompasses the industrial divisions, shown in table 19.5. For a fuller description of these divisions, refer to the department's NZSIC catalogue.

The survey maintains a sample of just under 2,000 respondents selected from Statistics New Zealand's Business Directory. The unit records are collected at the accounting unit level. The survey asks for predominantly current income and expenditure data although some investment data is also collected. Quarterly results are published in the Hot Off the Press publication and are also available on the department's public database INFOS.

has the data presented in the form of annual series for the March years of 1988 to 1993 for total manufacturing for some of the collected variables. Fuller descriptions of these variables can be found in the glossary at the back of this book. shows the sum of the four quarters for the year ended March 1993 with total manufacturing divided into the NZSIC divisions referred to above.

The survey provides a quarterly sample estimate that is a useful short-term indicator of the manufacturing sector's activity. The Annual Enterprise Survey provides a more in-depth measure at a higher level of financial and industry detail while the QMS provides more timely estimates with less detail. The department performs census surveys also which provide data for a full inter-industry study. The next manufacturing census is scheduled for 1993/94 while the previous was in the Economy Wide Census 1986/87.

The data below is revised from what was published in the 1992 Yearbook as the series have been ‘linked’ into the estimates produced by the December 1992 sample re-selection. This process ensures that the sample selected for the QMS continues to be representative of the ever changing population of the manufacturing sector.

Table 19.3. QUARTERLY ECONOMIC SURVEY OF MANUFACTURING: ALL-INDUSTRY TOTALS

Year ended 31 MarchSales and other incomeStocks*Additions to fixed assetsSalaries and wagesPurchases and other operating expensesHours worked
MaterialsFinished goods
*At end of year.
   $(million)    
(000)       
198833,6022,6272,4282,2206,15125,269522,695
198934,4582,4952,3851,9056,21225,334479,961
199037,4402,6792,7941,8286,31128,464463,700
199137,6232,6383,1941,6416,41728,479442,586
199237,8312,4123,0321,3316,38528,087419,396
199341,4932,4453,2841,5206,68031,622433,906

Table 19.4. QUARTERLY ECONOMIC SURVEY OF MANUFACTURING, 1993*

Industry division (NZSIC)Sales and other incomeStocks*Additions to fixed assetsSalaries and wagesPurchases and other operating expensesHours worked
MaterialsFinished goods
*Year ended 31 March.
   $(million)   (000)
Primary food9,8762257843371,1548,50968,898
Other food beverages and tobacco6,0643564852587624,64354,226
Textiles, apparel and leathergoods2,866205309836052,03250,402
Wood processing and products2,862137221925012,05737,083
Paper, printing and publishing4,3652742101759182,88750,979
Chemical, petroleum, coal, rubber, etc4,8393763822216883,70840,090
Non-metallic mineral products99943616317369711,100
Basic metal products1,532153164792561,17312,437
Fabricated metal products, etc7,6966366391981,5585,633103,452
Other manufacturing393402914652835,239
 41,4932,4453,2841,5206,68031,622433 906

Contributors

  • 19 Ministry of Commerce; Statistics New Zealand.

Further information

Census of Manufacturing 1983-84. Department of Statistics.

The Diffusion of Microelectronics through New Zealand Manufacturing. New Zealand Institute of Economic Research, 1987.

Islands of Excellence? New Zealand Institute of Economic Research, 1993.

Key Statistics. Statistics New Zealand (monthly).

Report of the Ministry of Commerce (Parl paper G46).

Research and Development in New Zealand: A Public Policy Framework. New Zealand Institute of Economic Research, 1987.

Productivity and Prosperity. Ministry of Commerce, 1989.

Productivity and Quality in New Zealand Firms: Effects of Deregulation. New Zealand Institute of Economic Research, 1989.

Productivity Trends and Cycles in New Zealand: A Sectoral and Cyclical Analysis 1961-1987. New Zealand Institute of Economic Research, 1989.

Chapter 20. Housing and construction

Auckland construction site.

20.1 Housing

The housing sector forms a vital part of New Zealand's domestic economy. For everyone a good standard of housing, that meets individual preferences, is as vital as any of the other factors upon which we rely, such as health and education. Housing also fulfils a variety of social roles. It provides shelter and security for the family and for the individual, a physical anchor in our environment. For some it provides a measure of social status and an expression of lifestyle choices. Housing provides employment and livelihood for a variety of trades, and the maintenance, renovation and improvement of homes is a major leisure-time activity for ‘do-it-yourself’ New Zealanders. In a market-based, property-owning economy, housing is also the main area of investment for many.

The total number of dwellings in New Zealand as recorded in the 1991 Census was 1,185,700, of these 1,164,400 were permanent and occupied, an 8 percent increase from the previous census in 1986. Of the total number of dwellings, 852,400 (74 percent) were recorded as owner-occupied; 267,300 or 23 percent as rented or leased; and the remaining 3 percent were occupied without payment. Fifty-four percent (456,400) of owner-occupied dwellings were owned with a mortgage, while 396,000 or 46 percent were owned without a mortgage.

By comparison with most other western nations, New Zealand has a very good standard of housing and a very high level of owner-occupier dwellings. At the time of the 1991 Census, 99 percent of New Zealanders were living in conventional permanent dwellings (either detached houses or flats). Home ownership is the dominant form of tenure in New Zealand, with 74 percent of households owning their own homes in 1991. This is well ahead of many other western countries (70 percent for Australia, 66 percent for the United Kingdom, 64 percent for the United States, 62 percent for Canada, 55 percent for Sweden, 30 percent for Switzerland). Household amenities, such as electricity, water and sewage disposal, are almost universal in New Zealand, and in 1991 only 1.4 percent of private dwellings had no form of heating. On census night in 1991, just 1 percent of private households were occupied on a semi-permanent basis: baches, cribs, huts, caravans or other temporary premises intended for short-term accommodation. Moreover, the census showed that less than 1 percent of occupied private dwellings had three or more persons per bedroom.

While families accounted for 74 percent of all households in 1991, what was once the typical family (a couple with at least one dependent child) represented only 38 percent of all families and 29 percent of all households.

The average number of persons per household reached a new low of 2.8 people at the time of the 1991 Census, after falling below three people in the 1986 Census. Over half of New Zealand's households now contain one or two people only, and the number of couples without any children at home continues to rise. By 1991, more than a third of families consisted of a husband and wife only (including de facto couples). Single person households now constitute 20 percent of all households: at the time of the 1991 Census almost 236,000 adults lived alone.

The 1991 Census also showed that 51 percent of Maori were owner-occupiers, and 49 percent of Maori were in rental housing. This compares to the population as a whole, where 76 percent were owner-occupiers and 24 percent lived in rental housing. Older people are more likely to be owner-occupiers than tenants, with 84 percent of those aged over 60 years owning their own home compared to 72 percent of those aged less than 60.

The average floor area of building permits issued in New Zealand for new homes between April 1973 and June 1990 was 123 square metres. Although it is not possible to identify the total floor area of all dwellings, given that there are 2.8 people per average household, it is likely the average dwelling area per person is in the vicinity of 44 square metres per person.

Current issues of concern in the housing sector include affordability and access for low income or disadvantaged New Zealanders, meeting the particular housing needs of special groups, the standards of housing and associated difficulties with tenure in some parts of New Zealand, and the delivery of housing assistance.

GOVERNMENT HOUSING
Ratio of state/private housing starts

The housing market

Following the pattern of the past three years, mortgage interest rates over the year August 1992 to August 1993 continued to fall, though not as dramatically as in previous years. In the December 1990 quarter the average interest rate was 15.3 percent per annum, by August 1992 it had fallen to 9.5 percent and by August 1993 it was 8.4 percent per annum.

Over 1992-93, the growth in mortgage borrowing continued. Vigorous competition between banks continued to be a feature of the home lending market, leading both to the continuing downward trend in interest rates and more flexible, individually-tailored products being offered. Banks now offer their customers the ability to vary many of the conditions attached to their mortgage loan, such as increasing or decreasing the amount of their monthly payment, switching to fortnightly payments intervals, altering the type of mortgage or transferring it to another property.

The number of freehold, open market house sales totalled 29,128 in the six months to June 1993, compared with 26,195 in the corresponding period in 1992. House sales in the six months to December 1992 totalled 27,133 compared with 26,533 in the six months to December 1991. House sales during the May 1993 quarter showed a 6.6 percent increase on the number of house sales during the May 1992 quarter. The average house sale price for the June 1993 quarter was $123,428, a 3.3 percent increase on the June 1992 quarter, and the volume of sales in the June 1993 quarter rose 13 percent compared to the June 1992 quarter. Section sale numbers and average sale prices also increased strongly, with the average price up 18 percent in the June 1993 quarter compared with a year earlier. In the year to June 1993, $8 billion was approved by lending institutions for home owners, compared to $7.5 billion in the year to June 1992.

Building permits issued in June 1993 showed a 10.5 percent increase in number and a 21.3 percent increase in value on permits issued in 1992. For the 12 months to June 1993, 18,165 building permits with a total value of almost $2 billion were issued. This is an increase of 2.8 percent in number and 10.5 percent increase in value, compared to the 12 months to June 1992.

During the year to June 1993 the nation-wide rental component of the Consumer Price Index changed by 2.3 percent. House price movements, as measured by Valuation New Zealand's House Price Index, increased in 1992 by 1 percent. This compares with a movement of -2.5 percent in 1991 and 7.6 percent in 1990. Very little change occurred in average nation-wide rents for private sector dwellings, while the transition to market rents for state houses continued throughout 1992-93, as part of the Government's reform of housing assistance.

Rental housing currently accounts for approximately 23 percent of the housing stock in New Zealand. It caters for people at all income levels but especially for households on low incomes. Fifty-four percent of renters earn less than $25,000 gross per annum, while 56 percent of owner-occupiers earn more than $30,000 gross per annum. Forty-nine percent of Maori are in rental housing, compared with 24 percent of the population as a whole.

At the 1991 Census of Population and Dwellings the stock of rental housing was 0.4 percent lower than at the previous census, although the total housing stock increased by 8.2 percent over the same period.

Statistics compiled by Valuation New Zealand in illustrate the overall trend in residential prices in 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.

Town houses being built on, and incorporating, the historic site of Long Cottage, Christchurch.

Table 20.1. RESIDENTIAL PRICES

 December year
 19881989199019911992
Source: Valuation New Zealand.
Average sale price of—  $  
Sections33,86739,53443,38941,04043,668
Houses98,732109,840115,150115,461120,734
Owner-occupier flats93,601103,267107,416105,839108,626

Urban House Property Price Index. This index is designed to measure changes in the average level of prices paid for residential properties sold during each half-year. Variations in the average age of properties transferred, as an indicator of the average quality of such properties, are eliminated in the index methodology in order to arrive at a valid index of price level changes.

Table 20.2. HOUSE PRICE INDEX

LocalityDecember 1991June 1992December 1992June 1993

Base: Half year ended December 1989 (=1000).

*Includes North Shore City, Waitakere City, Manakau City, Papakura District, Auckland City.

Includes Porirua City, Upper Hutt City, Wellington City, Hutt City.

Source: Valuation New Zealand.

Whangarei District1047104310471067
Auckland Area*969948952969
Hamilton City1103109310921118
Tauranga District1065106110781103
Rotorua District1016101110241037
Gisborne District1207120612471309
Napier City1148115211791253
Hastings District1170125012911371
New Plymouth District1182122812611314
Wanganui District1175116911601168
Palmerston North City1122113011291145
Masterton District1071105910661082
Wellington Area†944942941947
Nelson City1131115812811274
Christchurch City1175118811971220
Timaru District1186120912391273
Dunedin City1215124412951340
Invercargill District1226124212371286
        Total New Zealand1049104810591081

Movers' yard, Haywards Hill, Hutt Valley.

20.2 House purchase and mortgage finance

Borrowing money on mortgage is a principal means of financing the building or purchase of houses and commercial buildings, and the purchase of farms. Banks are the main lender of funds to New Zealanders seeking finance to buy a home. Thirty-six thousand housing loans for new and existing houses and flats were approved by registered banks in the year to June 1993 from a total of 37,453 loans approved by all financial institutions. Lending for housing by banks amounted to $20 billion at the end of June 1993. These institutions currently advance around 90 percent of all money lent for housing in New Zealand. The next most significant category of lender, and the largest individual organisation in the housing market, is the Housing Corporation of New Zealand, although policy changes are reducing the significance of the corporation in this market. Insurance companies have traditionally been major lenders for housing, but their involvement has declined recently, and they now lend only 2 percent of the total.

During 1993, around 13 percent of lending was for new housing, similar to the proportion observed in recent years. Approximately 99 percent of all housing lending was secured by a first mortgage.

Table 20.3. SOURCE OF HOUSING LOANS

QuarterHousing CorporationLife insurance officesM3 Financial institutionsTotal
Source: Reserve Bank of New Zealand.
1991no.$(000)no.$(000)no.$(000)no.$(000)
Mar3,700126.933022.528,6571,630.532,6871,779.9
Jun2,819121.636425.034,1301,725.637,3131,872.2
Sep2,55276.343732.033,5791,924.936,5682,033.2
Dec1,86054.746734.733,1801,734.735,5071,824.1
1992        
Mar1,48533.052841.732,4841,735.534,4971,810.2
Jun1,58836.347932.632,7121,785.134,7791,854.0
Sep70913.352841.933,1151,857.834,3521,913.0
Dec71210.738528.935,5131,982.636,6102,022.2
1993        
Mar60111.638726.735,8681,946.436,8561,984.7

Table 20.4. HOUSING LOAN APPROVALS

 Housing CorporationSurveyed financial institutionsLife Insurance officesTotalPercentage of funds for new housingPercentage of funds in first mortgage
Source: Reserve Bank of New Zealand.
 no.$(m)no.$(m)no.$(m)no.$(m)  
1991          
Mar3,700126.928,6571,630.533022.532,6871,779.914.298.1
Jun2,819121.634,1301,725.636425.037,3131,872.213.096.5
Sep.2,55276.333,5791,924.643732.036,5682,033.210.798.3
Dec1,86054.733,1801,734.746734.735,5071,824.112.799.1
1992          
Mar1,48533.032,4841,735.552841.734,4971,810.210.999.1
Jun1,58836.332,7121,785.147932.634,7791,854.012.598.7
Sep70913.333,1151,857.852841.934,3521,913.011.799.0
Dec71210.735,5131,982.638528.936,6102,022.212.899.3
1993          
Mar60111.635,8681,946.438726.736,8561,984.712.798.8

MORTGAGES
Registered and discharged

Maori housing

For the year ending 30 June 1993, Te Puni Kokiri assisted 527 clients for $30,747 million. The major portion of loan finance was advanced to fund client families into first home ownership. A limited number of advances were made for essential additions/repairs, refinancing of existing mortgage debt, kaumatua flats and papakainga housing. Lending ceased in the third quarter of the year due to the transfer of the mortgage accounts administered by Te Puni Kokiri to the Housing Corporation of New Zealand. The transfer was a result of Government's decision to mainstream housing services, and occurred between April 1993 and 30 June 1993. Prior to the transfer, the total lending portfolio of the ministry as at 31 March 1993 was made up of 9,300 clients with 11,916 loans for $296 million. The ministry also provided rental accommodation for the elderly under its Kaumatua flats programme, with 407 flats administered up until October 1993.

Housing assistance and government housing agencies

Accommodation Supplement. The Accommodation Supplement has replaced subsidised housing assistance from the Housing Corporation, and the Accommodation Benefit from the Department of Social Welfare. The supplement was introduced on 1 July 1993. All low income households are eligible to apply for the Accommodation Supplement, irrespective of whether they live in public or private sector housing, and whether they are renters or mortgagors.

The Accommodation Supplement is a cash payment administered by the New Zealand Income Support Service, which is part of the Department of Social Welfare. The payment of the supplement will be capped on a regional basis and takes account of higher housing costs in Auckland and Wellington. A cash assets test is also applied. This is the same test that has previously been used for the Accommodation Benefit. An abatement regime assists in targeting the supplement to households on lower incomes.

A number of transitional measures were implemented in the period prior to the introduction of the Accommodation Supplement. These measures are designed to give on-going assistance to Housing New Zealand Limited tenants who lost their access to existing housing subsidies after the supplement was introduced. Tenants 65 years of age and over on 1 October 1992 may benefit from tenure protection. Tenure protection may also assist Housing New Zealand tenants who on 1 October, were living in a unit specially modified to accommodate a disability, or were unable to move for reason of health.

The Housing Corporation. The Housing Corporation of New Zealand was established by the Housing Corporation Act 1974. From 1974 until mid-1992 the corporation was responsible for rental housing services, home lending, and housing policy advice. From 1986 until mid-1992 the corporation was responsible for administering the Residential Tenancies Act. As from 1 July 1992, however, the corporation was restructured to leave it with only responsibility for home lending functions, the principal part of which was administration of existing loans.

With Housing New Zealand Limited acting as its agent, the Housing Corporation provides home ownership lending for households unable to obtain finance in the marketplace. For the year ended 30 June 1992, the corporation authorised 5,014 loans for $159.8 million, under the Home Acquisition Lending Programme.

Table 20.5. HOME BUYER LENDING

ProductNumber of loan approvalsValue of loan approvalsNumber of households assisted*
1990/911991/921990/911991/921990/911991/92

*Households assisted prior to 1989/90 are estimates based on number of loans approved.

Modest Income, Second Chance, Tied Accommodation and pensioner Owner Occupier were jointly classified as ‘homeloans’ in 1991/92.

Source: Housing Corporation.

   $(million)   
First Home (Modest Income)†4,9331,469228.0067.125,1621,551
Loans to tenants76421737.9011.02831231
Second Chance†2,08182389.4033.902,112849
Refinance2,1232,31865.2037.022,3262,397
Papakainga (Multiply Owned Lending)26411512.106.95269144
New Horizons92-3.90-93-
Relocatables1370.300.18246
Equity sharing610.300.0662
Sweat Equity15140.800.701514
Primary Housing Corps11211.502.084542
Pensioner owner-occupier-10.400.19-1
Joint ventures-25-0.42-27
Tied accommodation†430.200.1643
        Total10,3065,014440.00159.8010,8875,267

Table 20.6. HOME OWNER LENDING*

ProductNumber of loan approvalsValue of loan approvals
1990/911991/921990/911991/92

*These products do not contribute directly to household assisted targets.

Source: Housing Corporation.

  $(million)  
Home Improvement1,36854512.404.89
Better Use226604.201.12
Helping Hand32340.300.29
        Total1,62663916.906.30

HOME MORTGAGE RATES
Registered mortgages

Resident at Alexandra Holiday Camp.

Table 20.7. DEPOSIT ASSISTANCE*

ProductNumber of loan approvalsValue of loan approvals
1990/911991/921990/911991/92

*These products do not contribute directly to household assisted targets.

Source: Housing Corporation.

  $(million)  
Homestart6,463-62.6-
Building suspensory loans93380.500.19
Home ownership supplementary loans213840.900.34
Tenancy savings scheme1860.100.02
        Total6,78712864.100.55

Housing New Zealand Limited. On 1 July 1992 Housing New Zealand took over the rental housing activities of the Housing Corporation of New Zealand, including the management of a residential stock of approximately 70,000 units. Housing New Zealand was set up under the Housing Restructuring Act 1992 and is a registered company, wholly owned by the Government. Its principal objective is to operate as a successful business that will assist in meeting the Crown's social objectives by providing housing and related services to low income people. The company has two shareholding ministers, the Minister of Finance and the Minister responsible for the administration of the Housing Restructuring Act (currently the Ministry of Housing). The shareholding ministers appoint the board of directors and also perform other functions as set out in the Act.

Housing New Zealand has five regional offices and 54 neighbourhood units throughout the country. It competes on an equal basis with other housing providers, charging market rents for its tenancies. It is required, however, to allocate its vacant rental units primarily to low income New Zealanders and to give priority access in allocations to people in temporary accommodation, or who are in accommodation that is detrimental to their health or well being. These obligations are set out in the company's statement of corporate intent, which is tabled in Parliament by the shareholding ministers.

Housing New Zealand also provides staff to the Housing Corporation for the administration of its mortgage portfolio.

The Ministry of Housing. Established on 1 July 1992, the ministry's main functions are the provision of high quality, independent and timely policy advice on housing to the Government, and efficient and effective tenancy bond and dispute resolution services across New Zealand.

Tenancy Services, which is a division of the Ministry of Housing, administers the Residential Tenancies Act 1986. The Act established a mediation service and a Tenancy Tribunal to resolve tenancy disputes. Tenancy Services runs the mediation service, while the Tenancy Tribunal is administered by the Department of Justice. The ministry operates the Bond Processing Centre located in Porirua, for the lodgement, processing and refund of all bonds paid to landlords by their tenants.

In the year to 30 June 1993 there were 27,365 applications made to the Tenancy Tribunal. Of these applications, 21,349 were referred to mediation, of which 10,554 were resolved by mediation. There were 6,403 applications which were either not resolved or only partly resolved in mediation and these were referred to the Tenancy Tribunal. The remainder were withdrawn. The total number of applications referred to the tribunal for a hearing, either directly or after an attempted mediation, totalled 14,828. A total of 9,849 applications were resolved at the Tribunal while the others were either withdrawn, adjourned or referred back to mediation. Approximately 87 percent of applications were made by landlords, most commonly for rent arrears.

Community housing

The delivery of assistance for community housing needs has been restructured as part of the Government's housing reforms. Community housing organisations provide housing to people with special needs, and like any other users of housing, they rent or borrow from whom they choose in order to perform this role. Housing New Zealand has tenancies available at market rents, and the Housing Corporation makes available special lending at market interest rates also for use by community housing providers. The Community Funding Agency (a service of the Department of Social Welfare) is responsible for delivery of funding support for approved community housing providers, to assist them in meeting their rent and mortgage outgoings.

Table 20.8. COMMUNITY LENDING

ProductNumber of loan approvalsPerformance value of loan approvals $(m)Number of households assisted
1990/911991/921990/911991/921990/911991/92
Source: Housing Corporation.
Pensioner/Disabled654710.89.23351183
Womens fund3-0.4-23-
Venture fund2-0.3-5-
Housing co-operatives20317026.321.231,054717
Boarding house loans110.010.01-1
        Total27421837.830.471 433901

Table 20.9. RENTAL ALLOCATIONS*

ProductNumber of households assisted
1989/901990/911991/92

*Includes community housing.

Source: Housing Corporation.

Rental housing9,9729,8369,280
Relocatable cottages140205146
Special tenancies596765627
Boarding houses-1212
        Total10 70810 81810 065

20.3 Building and construction industry

Building and construction is an important part of the New Zealand economy. For the year ended 31 March 1993 there was $6.0 billion of gross fixed capital investment on building and other construction. For the previous year the equivalent figure was $6.4 billion. The number of full-time equivalent jobs (including working proprietors) in the industry at the end of March 1993 was 78,600, 5.3 percent of the total New Zealand workforce. In addition, tens of thousands are employed indirectly, supporting the industry in manufacturing, material supplies and transport.

The most common construction systems used in New Zealand are light timber framing for housing, reinforced concrete (precast and in situ) for multi story buildings and light steel framing for industrial buildings. However, with the introduction of the performance-based building code traditional systems are slowly being replaced with new methods and products, and with shortages of timber on the local market light steel framing is becoming more common.

SIZE OF NEW DWELLINGS
Average floor area

Construction standards

Building controls are administered by the Building Industry Authority, a Crown entity established under the Building Act 1991 and responsible for writing the New Zealand Building Code. The code specifies the essential standards for building performance to ensure the health and safety of building users and protection of other peoples property. The Building Industry Authority has issued guidance documents which provide one means of satisfying the code, but these are not mandatory, and the building industry is encouraged to develop new materials and systems as alternatives to traditional methods. Important requirements of the code are durability, ease of access for all users and energy efficiency in buildings. Day-to-day administration is the responsibility of the territorial authorities who must confirm that building projects satisfy the code provisions.

Building consents are required for new buildings and for alterations for existing buildings, and any such work must also comply with district plans of territorial authority prepared under the Resource Management Act 1991. Further information is set out in chapter 15, Land and environment. For completed buildings the requirement for regular maintenance of essential systems, such as fire alarms, lifts and air conditioning is covered by compliance schedule and annual building warrant of fitness provisions.

New Zealand has developed particular expertise in the design of earthquake resistant structures, in other specialist areas such as hydro and geothermal power station design and construction, and the construction of economic granular-based road pavements.

Laying foundations.

HOUSING COSTS
Average building cost per square metre

Building activity

The main official building statistics are Statistics New Zealand's monthly analyses of building authorisations and its quarterly analyses of the value of work put in place. The prime source of these statistics is building consents issued by territorial authorities. Building activity commenced by government departments, hospitals, and education and harbour boards are included, even though authorisations for such work were not required before 1993.

The authorisation value shown usually represents the contract price or estimated cost of the building prior to the commencement of construction. The finished cost may be higher or lower because of wage and material price change, the rising cost of materials, etc particularly in the case of larger buildings.

The values of building authorisations for five years to March 1993 are described by types of building in . Permits cover alterations and additions as well as new buildings.

Table 20.10. VALUE OF BUILDING PERMITS ISSUED

Type of buildingYear ended 31 March
19891990199119921993
   $(million)  
Residential—     
New dwellings1,610.52,057.71,997.11,704.11,851.3
Alterations/additions and outbuildings478.0495.9431.5413.8433.5
Non-residential (includes additions and alterations)     
Hostels, boardinghouses37.38.73.48.417.3
Hotels, motels, etc82.723.020.814.930.8
Hospitals and nursing homes81.858.851.986.371.5
Education buildings105.975.8117.169.194.5
Social, cultural, and recreational buildings111.1114.3105.394.0117.9
Shops, restaurants, taverns146.3186.1207.6135.9173.0
Office and administrative1,130.1419.1226.5169.2280.8
Warehouses78.068.743.549.857.7
Factories and industrial232.9263.3231.6126.5145.8
Farm buildings47.460.448.948.369.1
Miscellaneous and multi-purpose buildings40.053.552.523.530.2
        All buildings4,182.03,885.33,537.92,943.83,373.2

Work put in place. Statistics New Zealand conducts quarterly surveys of building work put in place. In contrast with the statistics based on building authorisations, these figures show the gross value of actual work done. It should be noted that there are varying time-lags between the issue of the building authorisation and the commencement of building and the actual work for which an authorisation is issued can be extended over varying periods. Also, the total value of this work may differ considerably from the value estimated at the time of application for the building authorisation, especially in times of inflation.

Table 20.11. LOCATION AND VALUE OF BUILDING AUTHORISATION, YEAR ENDED 31 MARCH 1993

Main urban areaNew dwellingsNon-residential value*Total buildings value*
NumberResidential value
*Includes alterations and additions.
  $(million) 
Whangarei15114.214.732.7
Auckland (Main) Urban Area4,574535.6252.6901.7
Northern Auckland Zone1,339163.834.0232.0
Western Auckland Zone64571.324.8110.1
Central Auckland Zone1,331147.9115.1307.0
Southern Auckland Zone1,259152.678.8252.6
Hamilton56464.437.2113.8
Tauranga75570.427.0106.8
Rotorua15712.815.231.3
Gisborne888.29.920.4
Napier25125.511.641.2
Hastings19519.922.448.7
New Plymouth26927.817.751.8
Wanganui12812.47.624.4
Palmerston North35539.045.891.4
Wellington (Main) Urban Area88892.4178.5309.7
Upper Hutt Valley Zone616.15.214.5
Lower Hutt Valley Zone19719.715.945.7
Porirua Basin Zone16621.53.328.5
Wellington City Zone46445.1154.1220.9
Nelson49646.614.866.2
Christchurch1,980203.778.0311.9
Timaru869.38.420.3
Dunedin44843.263.4120.9
Invercargill12713.516.935.0
        Total, 17 main urban areas11 5101,238.9821.72,328.2

Museum Hotel on the move, Wellington.

Table 20.12. TYPES OF BUILDING AUTHORISATIONS, YEAR ENDED 31 MARCH 1993*

Type of buildingType of applicantTotal
Producer enterprisesFinancial intermediariesGeneral governmentPrivate non-profit organisationsHouseholds and foreign
*Includes alterations and additions.  
   $(000)  
Residential14,403-4,04815,3652,250,9952,284,810
Hostels and boardinghouses4,109-11,6811,474-17,264
Hotels, motels, etc.30,140-232407-30,779
Hospitals and nursing homes38,534-13,31219,677-71,523
Education buildings8,531-72,52013,480-94,531
Social, cultural, and recreational38,256-24,70154,615350117,923
Shops, restaurants, taverns167,4931,052274,410-172,982
Office and administrative98,39829,670143,2609,422-280,751
Warehouses57,324-37619-57,719
Factories and industrial138,522155,1062,120-145,793
Farm buildings67,955-755347-69,057
Miscellaneous and multipurpose26,961-3,071145-30,177
        All buildings690,65630,737279,088121,4822,251,3453,373,308

The high proportion of the total value of building authorisations represented by dwellings built by the private sector (households) highlights the importance of private investment in residential buildings as a key to stability in the building industry. The total for dwellings during 1992-93 includes 17,905 permits or authorisations to a total value of $1,851.3 million for new dwellings. This includes authorisations for 33 new government dwellings (value $3.0 million).

Some categories of buildings used in those and other building permit tables require additional explanation. ‘Hostels and boardinghouses’, for example, includes barracks, orphanages, nurses' homes, and boarding school accommodation; ‘hotels and motels’ includes private and licensed hotels, but excludes taverns; ‘education buildings’ includes primary and secondary schools, teachers colleges, technical institutes, university buildings, kindergartens, and play centres; and the broad category of ‘social, cultural and recreational buildings’ includes churches, halls, theatres, cinemas, clubrooms, community centres, and grandstands.

NEW DWELLINGS
Dwellings as a percentage of total value

Table 20.13. BUILDING AUTHORITIES

Year ended 31 MarchNew dwellingsResidential buildings (including outbuildings)*All buildings*
UnitsValueFloor area
*Includes additions and alterations.
 no.$(million)sq m (000)$(million)
198919,5831,610.52 447.92,088.64,182.0
199022,8512,057.13 029.82,553.63,885.3
199120,8201,997.12 827.02,428.63,537.9
199217,5631,704.12 465.62,117.92,943.8
199317,9051,851.32 746.72,284.83,373.3

Table 20.14. WORK PUT IN PLACE

Year ended 31 MarchGovernmentOtherand outbuildingsSubtotal
  $(million)  
198987.91,489.2503.02,080.1
199062.41,851.6531.42,445.4
199188.32,000.4487.82,576.5
199257.91,650.5462.42,170.8
199323.61,808.1486.02,317.1
Year ended 31 MarchNon-residential buildings (including alterations and additions)Total
Hotels, boarding houses and nursing homesHospitals and industrial buildingsFactoriesCommercial buildings*Education buildingsMiscellaneous† and multipurpose‡Subtotal

*Includes shops, restaurants, taverns, offices, administrative buildings and warehouses.

Includes social, cultural, recreational and farm buildings.

Includes shop/offices, office/warehouses, and shop/office/warehouses.

    $(million)   
1989196.9131.6336.01,432.5111.1204.22,412.34,492.4
1990195.6115.2302.61,208.4109.5266.22,197.34,642.8
1991127.095.3354.3965.197.7214.81,854.24,430.7
199232.391.2171.8565.4128.3214.31,203.43,374.2
199339.6115.1167.0480.3106.8244.11,152.93,470.6

NEW DWELLINGS
Number of building permits issued

Building and construction price indexes. Price indexes for buildings and construction are contained within the Capital Goods Price Index. Two series for residential buildings, four non-residential buildings, four other construction and four land improvement price indexes have been produced from the December 1989 quarter.

For the year ended in the March 1992 quarter the index recorded increases of 2.0 percent for residential buildings, 0.3 percent for non-residential buildings, 0.3 percent for other construction, and 2.2 percent for land improvements.

Industry statistics. Statistics New Zealand's periodic Census of Building and Construction has provided broad economic data on the industry. The most recent census formed part of the 1987 Economy Wide Census. The results from the census are updated annually by the Annual Enterprise Survey. Both the censuses and the Enterprise Survey cover the activities of all businesses classed in Major Division 5 of the New Zealand Standard Industrial Classification. A summary of results is given below.

Table 20.15. BUILDING AND CONSTRUCTION: STATISTICAL SUMMARY

Statistical item1989-901990-91
 No
Group enterprises363341
Enterprises within these group enterprises516471
Enterprises not owned by group enterprises24,13025,331
Activity units (including ancillaries)25,39126,544
Full time equivalent persons engaged87,13684,122
Stocks  
    Closing602.5547.1
    Opening572.4569.7
Income—$(m)
    Sales of goods and services8,630.68,389.4
    Interest, etc. received52.058.7
    All other income265.1349.8
Total sales and other income8,947.78,797.9
    Adjusted for change in stock values8,977.78,775.4
Operating expenditure—  
    Salaries and wages1,434.01,453.5
    Depreciation175.9179.0
    Interest, bad debts, etc.172.5154.9
    Indirect tax34.432.6
    Purchases3,742.13,723.1
    All other operating expenditure2,403.62,392.1
Total operating expenditure7,962.57,935.1
Working proprietors/partners salaries and wages426.3374.2
Net profit before tax, after deducting working proprietors/partners salaries and wages588.9466.0
Economic values—  
    Operating surplus1,135.8936.4
    Value added2,870.62,696.3
Fixed tangible assets—  
    Purchases during the year302.8374.3
    Sales during the year122.493.0
Balance sheet—  
    Shareholders funds, etc.1,375.4 
    All other liabilities2,862.53,072.2
    Total capital and liabilities4,237.94,929.2
Fixed tangible assets1,237.51,619.9
All other assets3,000.33,309.3
Total assets4,237.94,929.2
Ratios$
    Value added per full-time equivalent persons engaged32,943.932,052.0
    Value added per $1,000 of salaries-wages paid2,001.81,855.1
    Total sales and other income per full-time equivalent person engaged102,686.6104,585.0
 percent
    Net profit per total sales and other income6.65.3
    Total salaries and wages per total sales and other income16.016.5
    Value added per total sales and other income32.130.6
    Shareholders funds per total capital and liabilities32.537.7
    Fixed assets per total assets29.232.9

Solidification of the ground for the Museum of New Zealand's wharfside site.

Evening Post

Contributors

  • 20.1 Housing New Zealand; Ministry of Housing; Valuation New Zealand; Statistics New Zealand.

  • 20.2 Statistics New Zealand; Reserve Bank of New Zealand; Ministry of Maori Development (Te Puni Kokiri).

  • 20.3 Statistics New Zealand.

Special articles

Housing Industry Association.

Further information

Housing

Annual Report of the Building Research Association of New Zealand.

Annual Report of Housing New Zealand Limited.

Annual Report of the Ministry of Housing.

Half-yearly Report of Housing New Zealand Limited.

Report of the Valuation Department (Parl paper G26).

Residential Sales Summary. Valuation New Zealand (quarterly).

Statement of Corporate Intent. Housing New Zealand Limited.

Urban Property Sales Statistics. Valuation New Zealand (six-monthly).

Building and construction industry

Building and Construction and Transport, Storage and Communication 1987. Statistics New Zealand (Economy Wide Census).

Building Statistics. Statistics New Zealand (annual).

Enterprise Survey. Statistics New Zealand (annual).

Chapter 21. Transport

Remarkables communication site, Queenstown.

The evolution of New Zealand's transport system has been characterised not only by the country's remoteness from many of its trading partners, but also by its relatively small population being spread over two main islands with a combined length of nearly 2,000 kilometres.

International air and telecommunication links have helped overcome the country's isolation, but there is still a heavy reliance on sea transport for overseas trade.

The establishment of road and rail links to ports served by refrigerated cargo ships was an important factor in New Zealand's development as one of the world's major exporters of meat and dairy products. Comprehensive railway and road networks have been established over difficult terrain, frequently through innovative engineering, and, taking into account the size of the population, the capital cost has been high.

In recent years the trend of deregulation has brought major changes in the transport and telecommunications sectors. Previously both these sectors were characterised by the various protections afforded to them by being wholly government-owned, and protected by legislation. The costs associated with ownership of industries in these sectors, changes in the marketplace and developments in technology required a new approach to enable them to function more efficiently and to respond to the new challenges.

With this in mind, government has progressively reduced, and in some cases relinquished, state-ownership in different areas, and each area of transport and communications has faced restructuring in some form. This has involved major reviews of, and changes to, legislation to put these industries on a more commercial footing.

Restructuring of New Zealand Railways has centred on the need to improve the efficiency of the organisation. In 1986 the then Railways Corporation became a state-owned enterprise, responsible for managing its resources on commercial lines and rationalising its operations.

The road transport industry has also undergone major changes and was largely deregulated by the end of 1989, with the quantitative system of road licensing replacing the qualitative system. As well, a new Crown agency, Transit New Zealand, was established to take over the functions of the former National Roads Board and the Urban Transport Council.

Civil aviation in New Zealand has undergone tremendous changes in the last decade. In 1983 domestic air services were effectively deregulated by liberalising the licensing regime. Competition was further stimulated by revocation of overseas investment limitations in 1986 and in 1990 qualitative licensing was removed leaving safety certification as the only criterion for market entry.

The Government announced a new liberalised external aviation policy in 1985 which has resulted in an expansion in international air services. Twenty-one international airlines operate to New Zealand and Air New Zealand offers services to 29 destinations world-wide. The foreign investment changes in 1986 led to Ansett New Zealand commencing domestic operations in direct competition with Air New Zealand in 1987. Air New Zealand was privatised in 1989. At about the same time the Air Transport Division of the Ministry of Transport, in accordance with overall government ‘user-pays’ policy, began recovering the costs of its operations from aviation operators.

Airports, previously run by local and central government, were encouraged to form companies. Auckland and Christchurch International Airports were corporatised in 1988 and Wellington International Airport followed in 1990. Several regional airports have also been corporatised and others will follow. The Government also initiated changes to the aviation infrastructure. First, in 1987, the air traffic services provided by the Ministry of Transport were separated and transferred to a state-owned enterprise, the Airways Corporation of New Zealand Limited. A stand-alone Civil Aviation Authority, responsible for aviation safety and technical matters, was formed from the Air Transport Division of the Ministry of Transport in 1992 and marks a major change for aviation in New Zealand.

In 1992 negotiations began with Australia to form a single aviation market, which will eventually enable Australasian airlines to operate freely within, between and beyond the two countries.

Comprehensive reforms of New Zealand's waterfront since 1988 have resulted in cost savings and efficiency improvements. Passage of new marine pollution legislation took a high priority during 1993. The Government's move within new shipping law to allow foreign operators to enter New Zealand's coastal shipping trade aroused considerable debate. Some non-Australasian-crewed ships began to enter trans-Tasman trade, although not in such a quantity of service that has caused the withdrawal of Australian or New Zealand-crewed ships.

Deregulation of the telecommunications industry has made New Zealand one of the least regulated countries in the world in this area. In 1990 the Telecom Corporation was purchased by a consortium of two United States and two New Zealand companies, with shares in Telecom being available to the public in July 1991. CLEAR Communications Limited was launched in 1990 and provides toll, private line and specialist local network services in competition with Telecom. CLEAR is 50 percent New Zealand owned.

The Department of Statistics' five-yearly Census of Transport, Storage and Communication has provided broad economic data on the industry. The most recent census formed part of the 1987 Economy Wide Census. The results are updated annually by the Annual Enterprise Survey. Both the census and the Enterprise Survey cover the activities of all businesses classified in Division 12 of the New Zealand Standard Industrial Classification.

Table 21.1. TRANSPORT STORAGE AND COMMUNICATION: STATISTICAL SUMMARY

Statistical item1987-881988-891989-901990-91
  number  
Group enterprises555571498512
Enterprises within these group enterprises796792762772
Enterprises not owned by group enterprises9,2019,5739,34310,054
Activity units (including ancillaries)12,66013,00712,60213,319
Full-time equivalent persons engaged99,23293,10888,15587,949
Stocks— $(million)  
    Closing310.2242.1211.5239.5
    Opening360.2316.0219.9247.4
Income—    
    Sales of goods and services8,829.39,491.09,617.811,267.9
    Interest, etc. received163.7163.295.397.8
    All other income838.2929.11,086.4329.8
Total sales and other income9,831.210,583.310,799.411,695.5
    Adjusted for change in stock values9,781.210,509.410,791.111,687.6
Operating expenditure—    
    Salaries and wages2,544.82,619.62,476.92,772.6
    Depreciation793.4902.1948.31,045.2
    Interest, bad debts, etc.560.0614.1575.3585.3
    Indirect taxes182.6207.8201.7203.1
    Purchases926.31,017.0992.33,959.2
    All other operating expenditure4,030.14,316.54,510.62,137.9
        Total operating expenditure9,037.29,677.39,705.310,703.4
Working proprietors/partners salaries and wages190.0198.1196.7166.0
Net profit before tax after deducting working proprietors/partners salaries and wages554.0634.0889.1818.2
Economic values—    
    Operating surplus1,149.41,283.11,565.41,465.9
    Value added4,873.45,287.55,313.35,839.6
Fixed tangible assets—    
    Purchases during the year1,680.91,755.71,970.32,537.0
    Sales during the year578.2770.2554.81,324.8
Balance sheet—    
    Shareholders funds, etc.5,901.16,759.35,894.76,123.8
    All other liabilities5,793.56,759.56,919.66,844.9
        Total capital and liabilities11,694.513,518.812,814.312,968.7
Fixed tangible assets8,313.09,590.28,880.59,455.8
All other assets3,381.53,928.53,933.83,512.9
        Total assets11,694.513,518.812,814.312,968.7
Ratios— $  
    Value added per full-time equivalent persons engaged49,11156,78960,27266,398
    Value added per $1,000 of salaries/wages1,9152,0182,6572,106
    Total sales and other income per full-time equivalent person engaged99,072113,667122,505132,981
  percent  
    Net profit per total sales and other income5.66.08.27.0
    Total salaries and wages per total sales and other income25.924.822.923.7
    Value added per total sales and other income49.650.049.249.9
    Shareholders funds per total capital and liabilities50.550.046.047.2
    Fixed assets per total assets71.170.969.372.9

21.1 Shipping

Over 90 percent of New Zealand exports and imports by value, and almost 99 percent by volume, are carried by sea. This clearly illustrates the importance to New Zealand of efficient and cost-competitive international shipping services. Another consideration is the country's distance from overseas markets. Coastal shipping also provides inter-island links and plays a key role in the distribution of petroleum products and cement.

New Zealand shipping policy has recognised that the country's interests may be best served by being a ship-using, rather than a ship-operating nation. It seeks to ensure for New Zealand exporters and others unrestricted access to the carrier of their choice, and the benefits of healthy competition between carriers.

The Government continues to promote the opening of trans-Tasman shipping, which has been mostly reserved for Australian and New Zealand-crewed ships through a maritime union accord, to international competition and foreign crewed ships carrying some cargo. Neither the Australian nor the New Zealand Government supports the accord and both are fully committed to open competition in all international trades, including the trans-Tasman trade.

Legislation covering ship safety, maritime liability and marine pollution matters was introduced to Parliament in May 1993 with the intention being to enact new law by the end of the year. A joint industry-government Maritime Safety Authority was established in August 1993. The authority will be primarily funded from user charges and be responsible for maritime safety regulations and marine pollution functions.

Overseas lines

Conference lines handle much of New Zealand's overseas shipping. These are associations between shipping companies to provide joint service on the following established trade routes. Increased competition in New Zealand's intentional trades over recent years has seen increasing participation by independent carriers, some of whom operate round the world services that call at Auckland. An indication of New Zealand's established trades is set out below:

United Kingdom/Europe. The New Zealand European Shipping Association and the New Zealand and United Kingdom Shipowners' Committee play the main role in servicing Mediterranean and Northern European ports. The P & O group (UK) have the largest trade share in the conference, with the balance held by a number of continental carriers. There is some competition from independent lines outside the conference.

Middle East/Indian subcontinent. Direct container services are provided in a joint service by NYK Line (Japan), P & O and Blue Star Line (both United Kingdom). Some lines in the New Zealand-United Kingdom/Europe conference trade also offer direct services and a number of other carriers provide container trans-shipment services. Chartered conventional tonnage plays an important role in these areas particularly for meat exports.

East Asia/South-East Asia. The Australian and New Zealand Eastern Shipping Conference provides a direct container service between New Zealand, Japan and Korea. Independent services are provided by the China Ocean Shipping Company (People's Republic of China), Tasman Asia (New Zealand), Nedlloyd Lines (Netherlands), The Far Eastern Shipping Company (Soviet Union) and the New Zealand Orient Line (Singapore). The Middle East Container Service of NYK Line, P & O and Blue Star Line also serves Singapore and the Straits area.

North America. The Australia/New Zealand Direct Line operates between Australia, New Zealand and the West Coast of the United States and provides for the through transport of cargo by road and rail throughout the United States and Canada. Columbus Line (Germany) and Blue Star Line (United Kingdom) ships service both east and west coasts. International Marine Transport Lines operates to the West Coast of North America, ABC Containerline (Belgium) operates to the east coast of the USA, and conventional refrigerated vessel operators from Denmark and Japan carry a significant portion of New Zealand's beef exports to the USA.

Trans-Tasman. Australian and New Zealand carriers play a prominent role in the provision of trans-Tasman shipping services. The largest market share is held by Union Shipping New Zealand, which operates three ships in association with the Tasman Express Line and the Australian National Line which each run two ships. BHP Transport (Australia) operates two ships on the Tasman, while the Pacific Forum Line provides services to and from Brisbane as part of its South West Pacific trade. South Pacific Shipping (NZ) operates six smaller ships on the trade.

Ship deck.

South Pacific. The regionally-owned Pacific Forum Line operates four vessels linking New Zealand, Australia, Fiji, the Marshall Islands, Nauru, Papua New Guinea, the Solomon Islands, Tonga, and Western Samoa. A service to Kiribati and Tuvalu was halted in early 1993 after substantial losses were incurred, despite Australian and New Zealand government subsidies for the service. Sofrana Unilines, Cook Islands National Line, W Islands Lines, Translink Pacific Shipping, NZ Pacific Container Line, and Blue Star Line (as part of its North America trade), also operate ships in New Zealand's South Pacific trade. Their individual operations provide New Zealand with services to the Cook Islands, Fiji, Kiribati (transshipment), New Caledonia, Niue (on inducement), Papua New Guinea, the Solomon Islands, Tahiti, Tonga, Tuvalu (transshipment), Vanuatu, American and Western Samoa.

Inter-island ferry services

A ferry service across Cook Strait between Wellington and Picton is provided by rail ferries operated by New Zealand Rail's Interisland Line. The Arahura and Aratika carry passengers and vehicles. The Arahanga is confined to the carriage of freight and provides only limited accommodation for passengers. Pacifica Shipping Limited operates the freight-only roll-on/roll-off vessels Spirit of Competition between Wellington and Lyttelton, and Spirit of Freedom between Lyttelton and Auckland. Strait Shipping runs the livestock carrier Straitsman across Cook Strait. Auckland-based Sea Tow operates three tugs on tramp services around the New Zealand coast, while Wellington-based Southern Tug and Barge have started a timber trade out of the Marlborough Sounds.

The Cook Islands National Line operates a service between Napier and the Chatham Islands as part of its South Pacific service to the Cook Islands and Niue.

Bulk shipping

Overseas trade. 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.

Cargoes 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. Bulk cement distribution is handled by three small cement carriers operated by Milburn New Zealand (2) and the Golden Bay Cement Company (1). Three product tankers operated by Union Shipping New Zealand distribute petroleum products from the Marsden Point oil refinery. Liquigas operates the LPG carrier Tarihiko under New Zealand Line management.

Services to shipping

Ports. The 1988 port reform programme addressed the administration of ports and the manner in which labour is employed and used in stevedoring operations. Port companies established under the Port Companies Act 1988, operate New Zealand's 13 major commercial ports. These companies are predominantly local government-owned, although two are partly privatised and further private ownership is being encouraged by the Government.

Registration of ships. As at 31 December 1992 there were 2,689 ships on the New Zealand Shipping Register, with a total gross tonnage of 308,397 tonnes and net register tonnage of 178,973 tonnes. This compared with 2,592 ships totalling 301,131 gross tonnes and with a net tonnage of 175,874 tonnes in December 1991.

New registrations within this period included deep sea fishing vessels, Drysdale, Albert Sanford, San Rakino, Petersen, San Aotea, San Arawa, Amaltal Columbia, Matariki II and Takaroa I, the coastal fishing boat Lady Anna, the coastal cargo vessel Straitsman, the tug Te-Matua and the restricted limit passenger launches Lady of The Sounds and Milford Wanderer.

Vessels removed from the New Zealand Register during 1992 included the restricted passenger launches Sea-Flight and Ngaroma.

Table 21.2. REGISTERED VESSELS INVOLVED IN DOMESTIC AND OVERSEAS TRADE*

 Number of vesselsNet registered tonnageNumber of crew‡

*Ships in overseas trade mainly engaged in trans-Tasman and Pacific Islands trading movements.

The shipping register is not metricated and 1 net register ton equals 100 cubic feet (or 2.83 cubic metres) of cargo capacity.

Crew figures taken from annual manning list as at 1 July 1992.

Source: Martime Safety Authority.

Domestic   
19891351,444404
19901351,444409
19911241,346348
19921452,702362
Overseas   
1989984,296274
1990862,043185
1991857,582141
1992849,297145

Merchant navy qualifications. The Maritime Safety Authority (formerly the Maritime Transport Division of the Ministry of Transport) is the licensing authority for merchant service personnel who, after training and examination at approved teaching institutions, are issued with certificates of competency as master, mate or engineer. There are different standards of certificates for foreign-going, coastal, and restricted-limits ships. The foreign-going certificates as master, first mate, second mate, watchkeeper and engineer (class 1,2 and watchkeeping), are valid in most Commonwealth countries. Certificates of competency are issued to skippers, mates and engineers of deep-sea, coastal and inshore fishing boats. Voluntary examinations are held for pleasure boat mariners by the Royal New Zealand Coast Guard Federation. They are responsible for issuing certificates of competency to boat masters and yacht masters.

Ship survey and safety. The Shipping and Seamen Act 1952 is primarily concerned with the safety of ships and those who sail in them. It contains the necessary authority for implementing the provisions of several international conventions to which New Zealand is a signatory. It also provides for the safety of all ships plying New Zealand coastal waters, and all New Zealand-registered ships on international voyages.

Marine and Industrial Safety Inspection Services, which is a service delivery group within the Ministry of Transport, carries out surveys of ships as required by the Shipping and Seamen Act. Special surveys are also made for seaworthiness after damage, for efficiency of equipment and for tonnage measurement. In the 12 months to 30 June 1992, 1,831 certificates of survey were issued.

Marine safety services. There are 163 navigational aids on headlands, capes, reefs and shoals around the 7,000 kilometres of coastline controlled by the Maritime Safety Authority. At September 1993, these aids consisted of 97 automatic lights, 58 day beacons, 6 navigational buoys and 2 radio beacons. The total cost of this Navaids service is $1.8 million which is met by a marine safety charge collected from overseas and coastal ships and fishing boats. There are now no staffed lighthouses in New Zealand.

The Martime Safety Authority will construct a new coast radio station in 1994, the exclusive function of which will be the provision of distress and safety services to mariners. It is intended that the station will eventually be fitted with advanced technologies, such as Narrow Band Direct Printing and Digital Selective Calling, in order to become a station which is fully integrated into the Global Maritime Distress and Safety System (GMDSS).

Wrecks. The Maritime Safety Authority investigates the cause and circumstances of any wreck or shipping casualty in New Zealand waters. In cases of loss of life or serious damage, a Superintendent of Mercantile Marine, or appointee, carries out a preliminary inquiry. The report is sent to the Minister of Transport, who may order a formal investigation. Such an investigation is usually held by a judge, assisted by technical assessors, who can cancel or suspend the certificate of any officer found to be at fault.

Receivers of Wreck have extensive powers for preserving life and protecting property. Contrary to popular belief, a wreck or any article belonging to it remains the property of the owner and it is illegal for others to take any items of wreckage.

Table 21.3. SHIPPING CASUALTIES, 1992*

Ship typeMachinery breakdown and miscellaneousCapsizing and collisionStranding and groundingFounderingFireTotal

*Year ended 31 December.

Source: Maritime Safety Authority.

Passenger131319
Cargo423-312
Fishing2466523
Dredges, tugs, etc.------
Pleasure51228128
        Total122112171072

Fishing boat casualties during 1992 resulted in the loss of six vessels and seven lives.

Marine pollution. The Marine Pollution Act 1974 gives effect to a number of international conventions relating to marine pollution, in particular the International Convention for the Prevention of Pollution of the Sea by Oil 1954, as amended in 1962 and 1969, and the convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter, 1972. Revised marine pollution legislation is being developed to give effect to MARPOL 73/78 (International Convention for the Prevention of Marine Pollution From Ships 1973, as modified by its 1978 Protocol). This convention supersedes the 1954 convention, providing comprehensive measures for regulating the discharge of oil, other pollutants such as chemicals, garbage from ships and sewerage. The new legislation will also link the convention based controls of discharge and dumping into the controls that are provided by the Resource Management Act 1991. Further changes expected from the new legislation will reinforce present arrangements for marine and spill contingency planning and the provision and stockpiling of equipment and dispersants to deal with marine spillages in New Zealand waters.

21.2 Civil aviation

Control of civil aviation

Overall responsibility for civil aviation lies with the Minister of Transport. Prior to August 1992 the administration of civil aviation was vested in the Air Transport Division of the Ministry of Transport. On 10 August 1992, the Civil Aviation Authority of New Zealand (CAA) was established as a separate Crown-owned entity reporting directly to the Minister of Transport, with the prime function of promoting civil aviation safety and security at reasonable cost. The functions of the CAA include developing and providing civil aviation safety and security policy advice; developing safety and security standards for the civil aviation system and monitoring their adherence; performing entry and exit control over participants in the civil aviation system; reviewing the functioning of the system from a safety point of view, including the investigation of incidents and some accidents; and promoting aviation safety and security through the provision of information and education programmes. Overall responsibility for aviation policy continues to lie with the Ministry of Transport, which also audits and monitors the performance of the CAA on behalf of the Minister of Transport.

Surveying for the 190 metre extension to the Dunedin airport runway. The $2 million-plus project will enable the airport to carry trans-Tasman flights.

The Airways Corporation of New Zealand Limited. The movement of air traffic in New Zealand airspace is managed by the Airways Corporation of New Zealand Limited. The Airways Corporation provides air traffic services to civil and military air traffic and is responsible for the planning, provision and maintenance of radars, navigational aids and communications. Established in 1987 as a State-owned enterprise, Airways aims to ensure the safe, orderly and expeditious flow of air traffic within New Zealand airspace, which extends over the land mass and the seas and oceans surrounding it. Airways also provides services over 26 million square kilometres of the Pacific region, a responsibility assigned to New Zealand by the International Civil Aviation Organisation (ICAO). Airways was the first fully commercial air traffic control organisation in the world.

Aircraft operators and pilots pay Airways for the services they use. These include radar control, landing charges and aeronautical charts and publications. Information imperative to safety in the skies, such as weather forecasts, are provided free of charge. Airways also has contracts with airport operators in New Zealand and overseas for the installation and maintenance of technical facilities including runway lighting and navigation aids.

To provide its wide range of services, Airways uses primary and secondary surveillance radars, computerised flight data and radar data processing systems, some 111 navigational aids, air-to-ground radio telephony and an extensive ground-to-ground telecommunications network linking Air Traffic Control (ATC) units both at home and abroad. Apart from its day-to-day operational responsibilities, Airways is engaged in planning the development of the ATC infrastructure to meet the future demands of civil and military air traffic. It also assists in discharging the operational and technical commitments arising from New Zealand's membership of ICAO. All military ATC and radar surveillance is supplied on contract to the Air Force by the corporation.

In order to capitalise on new developments and ever-changing technology, Airways is committed to an investment programme more radical and far-reaching than anything seen before in New Zealand air traffic control. In its first six years of existence the corporation completed a modernisation of New Zealand's entire air traffic control system, and began the replacement and upgrade of the nation's network of navigation aids. Together, these projects have positioned the corporation, and with it the aviation industry, to take full advantage of the next generation of air traffic control technology—satellites.

Airways Corporation is responsible for ensuring the safe and orderly flow of air traffic. It provides extensive ground services including air traffic control and flight information, navigation services, alerting services and telecommunications. The corporation also assists search and rescue and aerodrome emergency organisations. Elements of emergency organisations are provided at most aerodromes.

Airways Corporation provides all air navigation facilities in New Zealand. These navigation facilities include electronic aids such as non-directional medium frequency beacons (NDB), doppler very-high-frequency omni-directional radio ranges (DVOR), instrument landing systems (ILS), primary surveillance radar equipment (PSR), secondary surveillance radar (SSR), distance measuring equipment (DME) and very-high-frequency direction-finding equipment (VDF). Visual aids include the visual approach slope indicator systems (VASIS) and precision approach path indicator (PAPI). An aeronautical Information Service publishes NOTAM (Notices to Airmen) and other aeronautical publications. It works closely with the Department of Land and Survey Information in the production of aeronautical maps and charts.

The corporation also maintains a national aviation training centre in Christchurch. Regular courses are conducted in air traffic services and telecommunications. The corporation has implemented the Airways Modernisation Project (AMP). Apart from replacement of existing primary radars, the project introduced Secondary Surveillance Radar (SSR) to New Zealand. This allows positive identification of aircraft fitted with transponder beacons, and the whole system integrates and automates this and other aircraft flight information to improve availability and reliability of services, and thus safety. Following the successful introduction of the Airways Modernisation Project, the corporation is implementing the navigation systems modernisation project (NSMP) which will replace navigation aids with state-of-the-art equipment by 1994.

Domestic air services

The deregulation of domestic aviation commenced in 1983 and was completed in 1990 with the abolition of air service licensing. Air New Zealand and Ansett New Zealand are the major domestic operators. Air New Zealand offers services to the major centres and Air New Zealand Link, the trading combination of Air Nelson, Eagle Airways, and Mount Cook Airlines, provide services to provincial towns, many of which were previously serviced by Air New Zealand's F27 Friendships which were withdrawn from service in 1990.

Although New Zealand has allowed 100 percent foreign ownership of domestic airlines, such as Ansett New Zealand, under the agreement reached with Australia on the single market, New Zealand airlines will not be able to commence operating domestically within Australia until 1994. The advent of a single aviation market will, in due course, see Australasian airlines operating across the Tasman as a domestic sector. This will have a major impact on boarder control procedures and air services in general.

Table 21.4. SUMMARY OF DOMESTIC SCHEDULED AIR SERVICES

December yearSeat kilometres availablePassengers carriedPassengers-kilometresFreight carried (tonnes)Freight (tonne-kilometres)Mail (tonne-kilometres)
Source: Ministry of Transport.
 (000)(000)(000)(000)  
19862,413,6123,4441,652,43365.133,5771,199
19872,540,1933,7851,728,45658.431,461877
19883,165,8134,1741,899,78539.426,4051,292
19893,087,7794,4671,908,43843.027,9881,721
19903,599,2364,5022,101,88247.728,4551,562

International air services

International air services are operated in accordance with formal agreements relating to air transport, usually negotiated between governments. New Zealand is signatory to 25 such agreements and has negotiated another which is awaiting signature. These agreements, and associated documents, outline the routes by which airlines can operate to/from New Zealand and, in most cases, the capacity that can be used on those routes. New Zealand's External Aviation Policy is to maximise the overall economic benefit for New Zealand, taking into account the country's trade, tourism, aviation, consumer, foreign policy and strategic considerations. The policy states that this objective will best be achieved by encouraging the liberalisation of air services to and from New Zealand including moves to minimise restrictions on competition. Twelve international airlines have commenced services to New Zealand since the policy was introduced in 1985.

AIR TRAVEL
Passengers carried on scheduled international and domestic flights

Table 21.5. SUMMARY OF INTERNATIONAL SCHEDULED SERVICES BY AIRPORT

December years1987198819891990

Note: This table excludes all transiting traffic.

Source: Ministry of Transport.

Traffic through Auckland Airport    
PassengersIn1,110,0001,240,8371,183,4381,113,276
 Out1,109,3391,248,1171,195,6981,125,679
 Total2 219 3392 488 9542 379 1362 238 955
Freight (tonnes)In43,84948,77955,18350,236
 Out47,65951,08157,49652,772
 Total91 50999 860112 680103 008
Mail (tonnes)In2,4932,6382,6292,413
 Out1,1681,1241,3891,768
 Total3 6623 7634 0184 181
Traffic through Christchurch Airport    
PassengersIn238,392243,549235,078241,035
 Out235,583252,862241,158240,275
 Total473 975496 411476 236481 310
Freight (tonnes)In7,2827,5807,0056,824
 Out8,7668,98211,82510,302
 Total16 04916 56218 83017 127
Mail (tonnes)In366341282279
 Out85128194192
 Total451468476471
Traffic through Wellington Airport
PassengersIn112,989124,586114,823107,658
 Out112,708126,207116,299107,321
 Total225 697250 793231 122214 979
Freight (tonnes)In5,3294,8554,9883,965
 Out3,0693,1883,7303,474
 Total8 3988 0428 7197 439
Mail (tonnes)In200185199181
 Out7486124118
 Total273270323298

Table 21.6. INTERNATIONAL AIR SERVICES: VOLUMES

 Year ended
 1987198819891990

Note: This table excludes all transiting traffic.

Source: Ministry of Transport.

Trans-Tasman Flight Stage    
    Passengers1,910,2122,132,6911,919,7411,807,364
    Freight and mail (tonnes)76,19182,31692,45284,190
    Kilometres flown (000)26,18230,25631,50634,593
North American Flight Stage    
    Passengers421,167430,234465,135426,241
    Freight and mail (tonnes)19,22917,33919,35117,350
    Kilometres flown (000)15,39816,42418,28717,616
South American Flight Stage    
    Passengers21,72324,2829,9688,256
    Freight and mail (tonnes)19121413081
    Kilometres flown (000)1,1141,0621,3331,250
Asian Flight Stage    
    Passengers238,739329,274426,590470,927
    Freight and mail (tonnes)11,48513,93918,73319,780
    Kilometres flown (000)7,82312,73917,52121,453
Pacific Island Flight Stage    
    Passengers409,782444,202433,965419,044
    Freight and mail (tonnes)15,05719,34420,03517,778
    Kilometres flown (000)8,4048,6629,2478,160

There are currently 22 international airlines operating out of New Zealand, providing links to the Pacific, Asia, the Americas and Europe. It is only in the past five years that nine of these carriers have begun services to New Zealand, one of them in 1991.

Table 21.7. AIRLINE OPERATIONS—DATE OF COMMENCEMENT AND ROUTES OPERATED

DateAirlineRoutes now operated

*Qantas, Canadian Airlines International, Japan Airlines and Mandarin Airlines operate code-shared services in conjunction with Air New Zealand. Canadian Airlines first commenced operating to New Zealand in 1949 but later discontinued its service. In 1985 scheduled services resumed and in 1990 the carrier began code-sharing services with Air New Zealand.

UTA merged with Air France on 31 December 1992 and the new airline retained the Air France name.

Continental Airlines terminated its services to New Zealand at the end of October 1993.

§Cathay Pacific operated between New Zealand—Papua New Guinea and Hong Kong between May 1983 and May 1984.

1 Apr 1961Qantas*Sydney/Melbourne/Brisbane/Perth/Adelaide/
Hobart/Cairns-Auckland/Christchurch/Wellington
Sydney-Auckland-Los Angeles
4 Apr 196British AirwaysLondon-Bangkok- Melbourne-Auckland
London-Singapore-Perth-Auckland
2 Dec 1965UTA Air France†Noumea-Auckland-Papeete
1 Oct 1974Air PacificSuva/Nadi-Auckland
1 May 1976Singapore AirlinesSingapore-Auckland/Christchurch Singapore-
Sydney/Auckland (Freight)
25 Feb 1978Polynesian AirlinesApia-Tonga-Auckland Apia-Tonga-Auckland-Sydney
1 May 1979Continental Airlines‡Los Angeles-Honolulu-Auckland-Melbourne/
Brisbane San Franciso-Honolulu-Sydney-Auckland
1 Dec 1979Air NauruNauru-Auckland
1 Jul 1980Japan Airlines*Tokyo-Auckland Tokyo-Christchurch-Auckland
Nagoya-Auckland
1 Nov 1985Canadian Airlines International*Toronto/Vancouver Honolulu-Auckland Toronto/
Vancouver-Honolulu-Nadi-Auckland
3 Dec 1985Cathay Pacific§Hong Kong-Auckland
20 Dec 1985Aerolineas ArgentinasBuenos Aires-Auckland-Sydney
11 Feb 1986United AirlinesLos Angeles-Auckland-Melbourne
8 Nov 1987Air CaledonieNoumea-Auckland
5 Nov 1987Thai AirwaysBangkok-Sydney-Auckland
4 Nov 1988Garuda IndonesiaJakarta-Denpasar Bali-Auckland
1 Nov 1989Air VanuatuPort Vila-Auckland
5 Dec 1989Malaysia AirlinesKuala Lumpur-Brisbane-Auckland
13 Jun 1990Solomon AirlinesHoniara-Port Vila-Auckland Honiara-Port Vila-Nadi-Auckland
1 Jul 1991Royal Tongan AirlinesTonga-Auckland
7 Nov 1992Mandarin Airlines*Taipei-Auckland

Air New Zealand offers services to seven gateways in Australia (Sydney, Melbourne, Brisbane, Perth, Adelaide, Hobart and Cairns) and also to Norfolk Island. In the Pacific, Air New Zealand operates to the Cook Islands, Western Samoa, Fiji, Tonga, Tahiti and New Caledonia. Thailand, Singapore, Indonesia, Malaysia, Japan (Tokyo and Nagoya), Hong Kong and Taiwan are served in Asia and the United Kingdom and Germany in Europe. In North America services are available to both the United States (Honolulu and Los Angeles) and Canada (Vancouver and Toronto).

The Tasman route is the busiest air route into New Zealand in both the volume of passengers carried and the number of airlines operating. Eight airlines offer services between Australia and New Zealand and for the year ended March 1993 carried a total of 940,932 including 399,146 New Zealand residents. For the same period 1,117,732 foreigners visited New Zealand. The greatest number of visitors to New Zealand are Australians, followed by the Americans and Japanese.

In order for an airline to operate scheduled services to or from New Zealand, the company must hold a valid air services certificate and an international air service licence. The certificate relates to the technical and safety procedures of the airline, ensuring that all necessary safety standards have been met, and is issued by the Director of Civil Aviation, and the licence, issued by the Minister of Transport, ensures that the services operated are in accordance with the bilateral arrangements.

Code-shared services. Code-shared services utilise only one airline's aircraft but carry more than one airline's designator. Air New Zealand code-shares with Canadian Airlines, American Airlines and Qantas Airways.

Table 21.8. SUMMARY OF SCHEDULED INTERNATIONAL AIR SERVICES

December yearPassengers carriedFreight carriedMail carried
Source: Ministry of Transport.
 (000)tonnestonnes
19862,45796,8704,153
19873,001117,7694,385
19883,361128,6334,549
19893,263146,1234,936
19903,129134,0745,082

Distances to overseas destinations. Distances to the Australian cities from the airports at Wellington and Christchurch differ slightly from the Auckland figures given in the following table. The distances are: Wellington-Sydney, 2,235 km; Wellington-Melbourne, 2,589 km; and Wellington-Brisbane, 2,508 km; Christchurch-Sydney, 2,124 km; Christchurch-Melbourne, 2,413 km; Christchurch-Brisbane, 2495 km; and Christchurch-Hobart, 2,024 km.

Table 21.9. DISTANCES FROM AUCKLAND AIRPORT TO SELECTED OVERSEAS DESTINATIONS*

DestinationDistanceDestinationDistance

*These are airport-to-airport great circle distances.

Source: Ministry of Transport.

Adelaide3,247Papeete4,093
Apia2,893Perth5,400
Brisbane2,293Port Moresby4,126
Hong Kong9,145Rarotonga3,013
Honolulu7,086San Francisco10,503
Los Angeles10,480Singapore8,410
Melbourne2,635Suva2,141
Nadi2,156Sydney2,158
Norfolk Island1,091Tokyo8,837
Noumea1,859Tonga2,004
Pago Pago2,902Townsville3,359

Airports. All three international airports are operated by airport companies. The three companies have a mixture of central government and local government ownership. Auckland International Airport Limited, the largest airport company, is majority-owned by central government, as is Wellington International Airport Limited, the smallest. Christchurch International Airport Limited is majority-owned by the Christchurch City Council. Corporatisation has resulted in many changes at the airports, but the airport companies longest established are experiencing increasing profitability as the greater commercial focus made possible by corporatisation brings benefits.

In addition to the international airports, there are now six additional airport companies operating provincial airports ranging in size from Dunedin Airport Limited to the smallest airport company, Chatham Islands Airport Limited. Both the tourist centres of Queenstown and Rotorua now have airports operated by airport companies, resulting in improved levels of service to tourists visiting those locations. The recent moves by the governments of Australia and New Zealand to form a single aviation market brings new challenges to New Zealand's major airports and corporatisation gives the airports the flexibility to make the most from the upcoming changes.

Model aircraft enthusiast awaiting clearance before taking off, Rotorua.

Aerial work

Aerial topdressing is a means of improving hill pastures and checking and preventing soil erosion. During recent years the extent of both aerial topdressing and spraying has varied according to demand by farmers, largely as a result of varying farm incomes.

Table 21.10. SUMMARY OF AERIAL WORK

December years19861987198819891990

*Includes pellets, prills and dusts.

Source: Ministry of Transport.

Solids     
    Number of flights321,077502,262390,655493,785522,728
    Hours flown22,88633,60527,85337,12036,829
    Tonnes dropped:     
        Fertiliser257,350393,284311,241422,978396,796
        Lime47,43956,32237,48545,57253,068
        Seed2,0793,228882605713
        Poison baits3,3853,3843,9115,03711,192
        Other*9071,945611771469
        Total311 160458 162354 130474 963462 237
    Hectares treated1,541,5442,391,9312,260,3122,588,4602,926,835
Liquids     
    Number of flights71,61977,36557,32266,53760,403
    Hours flown11,02811,41410,21211,46611,843
    Litres dropped:     
        Fertiliser1,270,1191,737,2441,777,9593,521,0363,927,141
        Insecticides895,604858,989861,6211,118,0911,133,335
        Fungicides4,868,7064,370,9294,177,3004,478,3713,081,663
        Weedkillers21,942,85218,792,26416,303,99317,071,50917,219,098
        Other125,416145,635224,493241,464505,376
        Total29 102 69725 905 06123 345 36526 430 47125 866 613
    Hectares treated528,539690,471712,293892,592976,596
Supply dropping     
    Number of flights32,81110,23810,5744,4322,885
    Hours flown3,9422,8751,956898797
    Tonnes distributed10,6024,4964,2141,8171,060
Fencing materials     
    Number of flights12,9633,0962,8201,8102,539
    Hours flown797489405213224
    Tonnes distributed2,1699581,085650814
Venison recovery     
    Number of flights3,4591,4723,587750652
    Hours flown3,0781,9361,553845808
    Tonnes distributed2,0141761,317240271
Photography and survey     
    Number of flights6,64210,0206,7073,5243,785
    Hours flown6,9206,4776,5645,0638,654
All other work     
    Number of flights33,01828,65532,90334,81632,268
    Hours flown10,4449,55711,9269,5409,012
Total, all aerial work     
    Number of flights481,589633,108504,568605,654625,260
    Hours flown59,09666,35360,46965,14568,167
Total, non-productive hours9 5149 14011 7828 6748 578

21.3 Railways

New Zealand Rail Limited operates freight and passenger rail services over a railway network extending over 3,973 kilometres. There are also a number of short private railway sidings mainly serving collieries and other industrial undertakings. The company also operates a rail and road vehicle and passenger service, the Interisland Line, across Cook Strait between Wellington and Picton.

New Zealand Rail Limited

Due to the corporatisation of New Zealand Railways in 1982 and the deregulation of the transport industry over the past decade, restructuring has been a common feature of the railways in recent times. In 1986, Railways Corporation became a State-owned enterprise and in October 1990 the Government established New Zealand Rail Limited as a limited liability company. In December 1992, it announced its intention to sell the company and on 20 July 1993 announced the sale of New Zealand Rail Limited to a consortium consisting of Wisconsin Central Transportation Corporation, Boston-based investment company Berkshire Partners and New Zealand merchant bank, Fay, Richwhite & Company Limited.

New Zealand Rail Limited operates the core rail freight, rail passenger and interisland services previously owned by the Railways Corporation of New Zealand. The Railways Corporation, since the sale of its rail operations in 1990, is solely involved with the disposal of its remaining assets, mainly land. Its relationship to New Zealand Rail Limited is that of landlord. New Zealand Rail Limited currently holds a licence to occupy land owned by the Railways Corporation and is working towards the long-term leasing of essential operating railway land. The rationalisation of railyards by New Zealand Rail Limited is allowing the release of increasing areas of land, which will be offered for public sale by the Railways Corporation.

The basic structure of New Zealand Rail is three business units—Railfreight, Passenger Group and Operations. In addition to these units there is a corporate office structure providing essential support services.

NZ RAIL PRODUCTIVITY
Index of NTK per average freight staff

Kingston Flyer en route, northern Southland.

Railfreight. New Zealand Rail Limited carried 8.5 million tonnes in the 1992/93 financial year (ending 30 June 1993), over an average distance of 291 kilometres and achieved some 2.45 billion net tonne kilometres.

Developments throughout the year include the establishment of a freight forwarding business unit to develop new products and promote door-to-door services. A new computer system was also introduced to all branches and terminals which has improved revenue collection by reducing billing times from an average 4.6 days to the same day and has improved billing accuracy and completion.

Passenger Group. Cityrail, which operates commuter services in Wellington and Auckland, provide an estimated 10 million passenger trips in 1992/93. In July 1993, diesel multiple units (DMUs) purchased from Westrail in Perth were introduced on Auckland lines.

InterCity, which operates eight long distance passenger services, had 391,000 passengers during the year. It introduced two new passenger services in December 1991—the Geyserland between Auckland and Rotorua and the Kaimai Express between Tauranga and Auckland. The other services are the Overlander which runs daily to and from both Auckland and Wellington, the Northerner which runs the same route overnight six days a week. There is also a daily Wellington/Napier/Wellington service, the Bay Express. The South Island is served by the Southerner which runs six days a week each way between Christchurch and Invercargill, the Coastal Pacific which travels from Christchurch to Picton return daily and the TranzAlpine between Christchurch and Greymouth which is considered to be one of the world's finest scenic train trips.

Passenger Group is also responsible for passengers, cars and commercial vehicles which travel on The Interislander. In the last year 920,000 passengers, 170,000 cars and 23,359 commercial vehicles travelled on The Interislander.

Operations. The operation group controls and operates the physical assets of the company. These include 27 electric locomotives, 257 diesel locomotives, urban electric units, 5,221 bogie wagons and 3,638 ‘4 wheel’ wagons.

Engineering workshop activities are undertaken at Woburn and Hillside while daily servicing is carried out at 22 depots throughout the country.

Other examples of operations group services includes train control functions, technological/engineering services and the reconstruction and upgrading of track by shortening distances, easing gradients, aligning track and eliminating joints. This work enables the use of heavier axle loads and improved clearances thereby allowing increased train speeds. Operations is also responsible for the running of the three Interisland Line vessels, Arahura, Aratika and Arahanga which made 3,836 sailing in the year to 30 June 1993. During that time, the Interisland Line services carried 74,912 rail wagons.

Support Services. These include communications/computer equipment, safety, security, human resources, public relations, legal, financial and other services required for business support.

Railway construction and engineering. The most significant recent development in railway construction was the 1988 electrification of the central section of the North Island main trunk line from Palmerston North to Hamilton.

Bridges. To carry the railways across the many gorges, rivers and streams in New Zealand, about 2,330 bridges and viaducts have been built with an aggregate length of approximately 75 kilometres. The longest railway bridge is that over the Rakaia River, in Canterbury, spanning 1,743 metres. The highest viaduct is the Mohaka, standing 97 metres above the Mohaka River on the Napier-Gisborne line. Twenty-one viaducts carry the rails more than 33 metres above the rivers and streams they cross.

Tunnels. There are 150 railway tunnels in New Zealand. The three longest tunnels are Kaimai (8.9 km), between Tauranga and Morrinsville, Rimutaka (8.8 km), between Upper Hutt and Featherston, and Otira (8.5 km), between Otira and Arthur's Pass. The Otira Tunnel has a gradient as steep as 1 in 33 and has electrified line running through it.

Table 21.11. NEW ZEALAND RAIL—SUMMARY OF OPERATIONS

CategoryUnitAs at 31 March
1987198919901993
Source: New Zealand Rail Limited.
Route—     
    North Islandkm2,5552,5552,5782,481
    (electrified)km139510510510
    South Islandkm1,7111,7111,4921,492
    (electrified)km14141414
Bridgesno.2,3032,3032,1882,330
 km68.7168.7164.6375.45
Tunnelsno.165165153150
 km91.5391.5389.6988
Locomotives—     
    diesel/diesel-electric.no.416270259257
    electricno.5282727
    steamno.22--
Rolling stock—     
    freightno.18,30512,39610,0678,859
    passenger (incl. motorised)no.171212256269
Passengers carried—     
    long distanceno.845,202....391,000
    suburbanno.14,203,287....10,000,000
Total freight carriedtonnes9,003,5168,570,0008,295,0008,451,000

21.4 Road transport

Capital investment in New Zealand's roading and road transport system exceeds that in all other forms of transport. There are about 92,300 kilometres of formed roads and streets, and over 2.3 million motor vehicles. The most recent employment statistics available on the transport industry, the Statistics New Zealand Annual Business Directory update of February 1993, recorded 8,216 persons engaged in the provision of road passenger transport, and 18,763 persons engaged in providing road freight transport.

Transport licensing

The Transport Services Licensing Act 1989 replaced the sections in the Transport Act 1962 relating to transport licensing as the main legislation governing road transport licensing. The Act provides for a system of road transport licensing which operates on a qualitative basis for goods, passenger, rental and vehicle recovery services. A quantitative licensing system for road transport operators was replaced with a qualitative system. (Qualitative licensing means that based on minimum standards of service rather than the number of vehicles to be licensed.) As of 1 November 1989 the concept of ‘a fit and proper person’ was adopted as the principal criteria for road transport operators.

Land transport

Under the Transit New Zealand Act 1989, Transit New Zealand has the responsibility for developing a national land transport programme.

Every regional council is required to establish a regional land transport committee for its area. Each year every territorial authority must submit to that committee, and make available to the public, a district land transport programme for the next year. This programme comprises the territorial authority's recommendations concerning the land transport needs of its district and must include local roading, safety (construction and maintenance), passenger transport, state highways, research, administration and safety (administration).

Each year the Transit New Zealand Authority is required to submit to the Minister of Transport for approval, a national land transport programme for the next year, which must include the authority's recommendations; proposed funding for those recommendations; and a statement of intent.

Transit New Zealand

Transit New Zealand took over the responsibilities of the National Roads Board and Urban Transport Council and became the new organisation to represent the interests of all New Zealanders in the planning and funding of the land transport system.

Huntly's turn of the century railway pedestrian overbridge being dismantled for transportation to railway station restoration project at Helensville.

Transit New Zealand works in close partnership with local authorities and the Ministry of Transport to develop a land transport system that meets the needs of local communities and New Zealand as a whole (see above text).

Transit New Zealand is directed by a central authority, made up of between seven and 10 members, appointed by the Governor-General on the recommendation of the Ministers of Transport and Finance.

Transit New Zealand is responsible to the Minister of Transport for meeting its financial and management reporting requirements under the Transit New Zealand Act 1989.

The principal objective of Transit New Zealand is to promote policies and allocate resources to achieve a safe and efficient land transport system that maximises national economic and social benefits.

The functions of the Transit New Zealand Authority are:

  • To prepare an annual national land transport programme and revise it where necessary.

  • To control all aspects of the state highway system and monitor and assist with local roading.

  • To advise and assist local authorities on all aspects of the Transit New Zealand Act 1989.

  • To make payments from the Land Transport Fund, and monitor the collection of revenue for the fund.

  • To advise the Government on all aspects of the land transport system.

Roading

There are 74 national and provincial state highways in New Zealand, comprising 10,438 kilometres of roading. This network includes major routes that carry the greatest volume of traffic between residential communities, commercial and industrial areas. In addition, there are 14,943 kilometres of urban roads and 66,925 kilometres of rural roads, making a total of 92,306 kilometres of developed roading, which includes 15,612 bridges.

The operation and management of the strategic roading network is, in most cases, affected by the laws embodied in the Transit New Zealand Act 1989. As far as possible, these laws enable freedom of use of land, while ensuring that the roading network is able to provide for the safe and effective movement of people and goods.

ROADING
Total length by type of road surface

Table 21.12. FORMED ROADS AND STREETS

Nature of surfaceLocal authority roadingState highways and motorwaysTotal
Urban areasRural areas
Source: Transit New Zealand.
  kilometres 
At 30 June 1992    
Paved or sealed14 411.929 690.811 210.055 312.7
Metal or gravel447.538316.3238.939002.7
            Total, maintained roads14 859.468 007.111 448.994 315.4
At 30 June 1993    
Paved or sealed14 487.329 811.810 277.854 576.9
Metal or gravel455.537 113.7159.837 729.0
            Total, maintained roads14 942.866 925.510 437.692 305.9

Roading taxation is described in section 26.2, Taxation.

Table 21.13. EXPENDITURE ON STATE HIGHWAYS

Class of expenditure1990*199119921993P

*Fifteen month financial year to 30 June 1990.

Excludes motorway structures.

Maintenance figures include the cost of flood damage repairs when applicable.

Source: Transit New Zealand.

  $(000)  
Construction and improvement142,03959,94868,219100,640
Bridges and other structures†20,7767,9316,4539,480
Maintenance, repairs, etc.*238,567228,888225,499200,000
            Total401,382296,767300,171310,120

Table 21.14. PUBLIC ROADING EXPENDITURE

Item1990*199119921993

*Fifteen month financial year to 30 June 1990.

Previously known as the National Roads Fund.

Source: Transit New Zealand.

  $(000)  
State highways expenditure401,382296,767300,171310,120
Special purpose roads2,3041,6932,1712,450
Local authority roading expenditure—    
From Land Transport Fund†292,142205,359226,312229,550
            Total695,828503,819528,654542,120

Registration and licensing of vehicles

All vehicles using public roads in New Zealand are required to be registered. An annual relicensing charge is payable, which includes a licence fee, accident compensation levy, goods and services tax, and, in some cases a certificate of fitness or transport licence fee. The country's more than 2.3 million vehicles are relicensed progressively throughout the year.

The annual relicensing charges are: ordinary motorcars, $206.13, motorcars subject to transport licence fee, $216.13; motorcycles, $74.50 (60cc or less) or $184.75; rental cars, $299.63; trucks, vans and utilities from $206.13 to $389.13; and tractors, $95.88. All figures include goods and services tax.

The various types of motor vehicles registered and licensed are itemised in the tables following.

Table 21.15. LICENSED MOTOR VEHICLES

Type of vehicleAt 31 March
199119921993
Cars1,539,8091,542,9121,562,134
Rental cars8,2838,4389,631
Goods service cars2,3772,3532,117
Light trucks, vans, utes234,652242,644254,332
Heavy trucks64,14964,29365,951
Taxis3,2503,5723,803
Buses and service coaches8,3657,3288,227
Trailers369,301369,048368,846
Motorcycles73,54665,44260,099
Mopeds1,2071,2341,146
Trade plates D4,8994,5884,460
Trade plates C595574573
Miscellaneous17,30216,68716,422
Exempt vehicles21,53422,75521,676
            Total, all vehicles2 349 2692 351 8682 379 417

Table 21.16. REGISTRATIONS OF NEW VEHICLES

December yearNew cars and station-wagons—c.c ratingCars previously registered Total overseas*New motor cycles
  850 and under851 to 13001301 to 16001601 to 20002001 to 50005001 and over

Included in total.

Source: New Zealand Post.

198684717,90718,23230,21812,39841980,0213,94613,372
198774618,56620,51029,16019,71792989,62812,12912,609
198869017,79627,31028,30614,08440388,58917,3728,968
198988021,49644,06650,00018,137309134,82850,9665,796
199068319,75156,43884,18118,391302159,74685,3244,897
199180610,52335,36141,60114,497178102,96647,3514,042
19925927,20930,24136,67917,17420592,11039,1462,469

MOTOR VEHICLES
Number licensed

Table 21.17. REGISTRATIONS OF NEW COMMERCIAL VEHICLES

December yearNew commercial vehicles by gross weight in kilogramsTotal commercial vehicles
2500 or less2501 to 45004501 to 90009001 to 1450014501 and overOmnibus and service coaches
Source: New Zealand Post.
198810,8872,92087170283244016,652
198916,1733,96891859286176323,275
199018,3058,299918503103738329,445
199114,9897,47783136978453524,985
199211,9008,784130240194643923,772

Not included in the above tables are new tractors, of which there were 907 in 1989, 863 in 1990, 752 in 1991 and 779 in 1992.

Motor vehicles exempted from the annual licence fee include a variety of machines such as farmers' motor vehicles used solely on the farm and only venturing on roads to proceed from one part of the farm to another, or from farm to garage for repair, etc excavators, scoops, trench diggers, cranes, and logging trucks (used on private roads), etc.

Table 21.18. 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.
19902.291.77R
19912.241.74R
19922.211.72
19932.211.72

Motor Vehicle Securities Register

A motor vehicle securities register is administered by the Department of Justice under the Motor Vehicle Securities Act 1990.

The register was established to help buyers avoid the situation of their vehicles being repossessed because money is still owed on them. It also provides protection for the party having an interest over the vehicle. The ‘Autocheck’ service opened to the public on 1 April 1990. As at 30 June 1993 there were 164,590 current security interests registered over vehicles. The Autocheck means that a consumer considering buying a vehicle can phone the register toll free to check if any security interest is registered against the vehicle.

The register includes vehicles such as private and commercial motor vehicles, motorcycles, trucks, trailers, caravans and farm vehicles. It does not cover boats, trains or aircraft.

The Autocheck service is not connected with the change of ownership or registration of vehicles. This is handled by New Zealand Post.

Transport to work

Table 21.25 shows the main means of transport used by those persons employed in the full-time labour force to travel to work on the day of the 1991 Census of Population and Dwellings.

A large section (50.0 percent) drove a privately-owned car, truck or van to work, while a further 14.6 percent drove a vehicle owned by the employing company. The public transport system serviced only 4.7 percent of those travelling to full-time work, with buses contributing 3.8 percent and trains only 0.9 percent.

Among the less common employment related means of transport are walking (7.3 percent) ‘other’ (1.1 percent), travelling as passengers in cars, trucks or company buses (7.7 percent), by bicycle (4.7 percent) and as riders of motorcycles or powercycles (2.6 percent). The remaining 7.3 percent worked at home.

Significant patterns of travel to work at the 1991 Census relate to male-female differentials in means of transport. Males showed a much greater tendency than females to drive company vehicles, or ride motorcycles, powercycles or bicycles to work. Females, by contrast, tended to make greater use of the public transport system (public buses and trains), drive private vehicles, travel as passengers in cars, trucks and company vehicles, and walk more than their male counterparts. This male-female structure of transport use reflects a combination of demographic and economic variables including living arrangements, household composition and income, number of household income earners, access to household vehicles, distance travelled to work, occupation, industry and employment status.

Median strip mover, Auckland Harbour Bridge.

Table 21.19. TRANSPORT TO WORK, 1991 CENSUS

Means of transportEmployed in full-time labour force*
MalesFemalesMales as percentage of total
NumberPercentageNumberPercentage

*Population resident in New Zealand aged 15 years and over working 30 or more hours. Excludes those unemployed and seeking full-time work. Excludes those who did not go to work on the day of the census.

Includes jogging or running.

Public bus16,4852.423,5866.241.1
Train5,4660.84,4791.255.0
Drive private vehicle310,36245.8217,88157.558.8
Drive company vehicle138,15020.416,6654.489.2
Passenger in car, truck or company bus39,2945.841,62511.048.6
Bicycle38,4365.711,6643.176.7
Motorcycle, powercycle24,2973.63,1680.888.5
Walk†46,6356.930,3428.060.6
Other8,8531.32,7450.776.3
Work at home50,0527.426,7397.165.2
Not specified10,887-6,135-64.0
        Total688 920100.0385 023100.064.1

Road safety

From 20 August 1993 road safety has, as a result of recent transport reforms, been under the control of a new Crown agency, the Land Transport Safety Authority. The laws are enforced by the New Zealand Police following their merger with the Traffic Safety Service (enforcement and support services) of the Land Transport Division of the Ministry of Transport on 1 July 1992. The combined service is able to concentrate enforcement resources, targeting serious offences and related crime in a concerted bid to reduce the road toll.

Police officers enforce traffic laws and driving standards and investigate serious and fatal accidents. They also enforce the laws relating to heavy traffic, the allowable weights of vehicles and loads and assist with the licensing of road transport services (such as taxis, buses and tow-trucks).

Driver licensing. A driver's licence is valid without renewal until the end of the month in which the holder turns 71. Those special classes of licence which require annual medical tests, such as passenger service vehicles, require validation but otherwise no testing or renewal need be undertaken until the age of 70. A separate regime of medical and practical tests for renewal begins at this age.

A graduated system for obtaining a driver's licence involves a number of restrictions on learner drivers to ensure they are protected from high-risk situations until they have obtained experience on the road in ‘normal’ conditions. Incentives for attending driver training courses are also built into the system, which applies to all first applicants for licences under the age of 25. The new system has three stages: learner stage; restricted stage and full licence.

Inspection of motor vehicles. All vehicles using the roads must be inspected regularly to ensure their mechanical and structural fitness. They are inspected every six months but vehicles first registered since 1 August 1987 and less than six years old may be inspected every 12 months. Most lightweight vehicles are required to have a ‘Warrant of Fitness’ which can be issued at approved garages, or at testing stations operated by local authorities. All heavy vehicles, with minor exceptions, undergo a more exacting examination for a Certificate of Fitness, which, in respect of passenger service buses, has special regard for the safety and comfort of passengers. Taxicabs and rental vehicles also require a Certificate of Fitness.

Inspecting speed camera film.

Seat-belts. Wearing of seat-belts is compulsory for drivers and front-seat passengers in most classes of light vehicle registered after January 1955. All cars must have seat-belts fitted in the rear passenger seats and it is compulsory for rear-seat passengers to wear seat-belts where fitted.

The law also requires that children under eight years use a child restraint; and if one is not available, a seat-belt; and if neither of these options are available the unrestrained child must travel in the rear seat. New requirements for child restraints will be introduced progressively from 1 April 1994.

All motor cyclists and pillion riders must wear safety helmets at all speeds. Bicycle helmets have been compulsory since 1 January 1994.

Alcohol impairment. Police officers have a wide range of tests available to them to deal with drivers affected by alcohol or drugs or a combination of the two. Any driver may be required to give a breath screening test at any time. This may be administered after the officer has detected alcohol on the driver's breath using a passive alcohol detector. If this screening test is positive the person may be required to give an evidential breath test. If this is also positive, the person has the option of either accepting the breath test reading or providing a blood sample for analysis. An exception to this rule is made if the person has been tested using more sophisticated equipment and achieves a result one-and-a-half times the legal limit.

A driver commits an offence and is liable for prosecution if either:

  • His/her breath-alcohol concentration as recorded on an evidential breath-testing device exceeds 400 micrograms of alcohol per litre of breath in the case of a licensed driver, or 150 micrograms of alcohol per litre of breath in the case of a person not holding the appropriate licence or under the age of 20; or

  • His/her blood-alcohol concentration exceeds 80 milligrams of alcohol per 100 millilitres of blood in the case of a licensed driver, or 30 milligrams of alcohol per 100 millilitres of blood in the case of a person not holding the appropriate licence or under the age of 20.

Speed limits. The maximum speed limits for highways and motorways are: 100 km/h for cars, motorcycles, 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 all closely populated areas. 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 100 km/h or 50 km/h depending on conditions and circumstances.

Insurance. See section 7.5, Accidents and section 22.3, Insurance and superannuation.

Road safety education. Details on road safety campaigns are given in section 7.5, Accidents.

Traffic 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 people convicted of driving offences.

The director of the Land Transport Safety Authority has the power to suspend drivers' licences for six months where 100 or more demerit points are received in less than a year, or for three months where this number of points is received within two years. A new scale of graduated demerit points is shortly to be implemented.

Breaches of certain laws are dealt with under an infringement system whereby a motorist may pay an infringement fee within a certain time to avoid court proceedings.

DRINK-DRIVING
Convictions per 10,000 population

The following table covers only offences reported by police officers.

Table 21.20. TRAFFIC OFFENCES REPORTED*

Type of offence199019911992

*Years ended 31 December.

Includes infringements and notice to prosecute offences.

Source: Police.

Accident-promoting offences—   
    Driving or attempting to drive under the influence of drink or drugs362435479
    Breath/blood alcohol offences6,0745,7915,471
    Evidential/excess alcohol16,04716,54615,875
    Failure to fulfil duties after an accident1,8981,9611,765
    Reckless driving226247197
    Driving in a dangerous manner1,3171,3631,288
    Driving at a dangerous speed397356351
    Driving without reasonable consideration159167216
    Careless use of a motor vehicle17,11717,11416,563
    Overtaking offences566714754
    Failure to keep to the left2,3273,1533,111
    Failure to yield right of way2,4993,1923,048
    Failure to stop/following too close3,6984,9425,059
    Exceeding 50 km/h†48,91660,01961,617
    Exceeding 70 km/h†1,9752,5952,953
    Exceeding 80 km/h†81122107
    Exceeding 100 km/h†2,47925,13324,208
    Exceeding temporary speed limits214264258
    Exceeding by-law speed limits74100123
    Failure to stop at traffic lights6,87410,2759,311
    Failure to stop at compulsory stop sign3,7994,9954,863
    Failure to give way at give way sign1,3991,7631,787
    Failure to yield right of way at pedestrian crossing514682675
    Failure to stop or give way for siren699
    Failure to comply with road signs1,7802,2602,279
    Failure to wear safety helmet7561,130936
    Provisional motor cyclist exceeding 50 km/h112
    Exceeding 70 km/h with trailer/heavy vehicle-52
    Exceeding 80 km/h with trailer1,2861,5471,440
    Exceeding 90 km/h with trailer273336
    Exceeding 90 km/h with heavy motor vehicle while towing262426
    Exceeding 90 km/h with heavy motor vehicle-7380
    Defective brakes536156
    Lighting offences1,8282,1232,019
    Failure to dip lights586156
    Mechanically defective or unsafe vehicle2,2112,9502,994
    Subtotal127,429172,305169,996
Non accident-promoting offences—   
    Failure to obey officer6,7456,4936,094
    Owner failing to supply information4687701,019
    Failure to pay overloading infringement fee101
    Warrant of fitness offences21,2761,7821,713
    Certificate of fitness offences1,411236236
    Certificate of loading offences207219241
    Exceeding certificate of loading2034261
    Cng and lpg offences264261
    Road user charges6,5228,3189,144
    Driver's licence offences23,13834,36832,310
    Driving whilst disqualified7,3017,3767,520
    Probationary drivers' offences7,43274
    Vehicle licences and registration offences15,93028,06135,128
    Safety-belt offences12,03915,20713,378
    Noisy motor vehicles189280258
    Emitting excessive smoke65117160
    Loading offences1,3191,4571,304
    Other nuisances130181137
    Cycling offences1,7913,2402,821
    Pedestrian offences604943
    Transport service licence offences-1,0081,144
    Hazardous substances offences transport service licence offences281388
        Subtotal106,376145,971153,975
Other notices issued—   
    Parking infringements and offences11,01712,67311,842
            Total, listed offences and infringements244 822330 949335 813

TRAFFIC CONVICTIONS
Rate per 10,000 population

Contributors

  • 21.1 Ministry of Transport.

  • 21.2 Ministry of Transport; Airways Corporation of New Zealand.

  • 21.3 New Zealand Rail Limited.

  • 21.4 Transit New Zealand; Ministry of Transport.

New Zealand's first female jet airliner commander.

Further information

Transport—general

Annual Enterprise Survey. Department of Statistics.

Census of Transport, Storage and Communication 1984-85. Department of Statistics.

Key Statistics. Statistics New Zealand (monthly).

Report of the Transport Committee (Parl paper 12B).

Report of the Ministry of Transport (Parl paper F5).

Report of Transit New Zealand (annual).

Shipping

Shipping and Cargo Movements. Department of Statistics (annual).

Civil aviation

New Zealand Civil Aircraft Accidents. Transport Accident Investigation Commission (annual).

New Zealand Register of Aircraft. Civil Aviation Authority of New Zealand.

Annual Report of Air New Zealand Limited.

Railways

Report of the Railways Corporation (Parl paper F7).

New Zealand Rail Limited Annual Report.

Roads

Breath Tests in New Zealand. Land Transport Safety Authority (annual).

Motor Accidents in New Zealand. Land Transport Safety Authority (annual).

Report of the New Zealand Police (Parl paper G 6).

Chapter 22. Commerce and services

Deregulation has transformed the traditional concept of milk delivery.

Over recent years a new emphasis in the New Zealand economy has been brought about by change in several of the country's major export markets towards more competition. New Zealand's export industries are having to compete more in international markets, rather than relying on traditional alliances and arrangements.

Government's response has been to encourage structural change within the economy through deregulation, and the process of change has been rapid since 1984. Both the Labour Government of 1986-1990 and the present National Government have followed a programme of industry assistance reform (notably a significant across-the-board tariff reduction programme), a continued move away from import licensing (which disappeared completely on 1 July 1992, 54 years after it first came into force), the removal of restrictions on the operation of financial markets, and the reorganisation of state trading enterprises on a more competitive basis. Among specific sectors deregulated to allow greater competition are the telecommunications, transport and petroleum industries.

The resulting withdrawal of subsidies and import controls has exposed large areas of the domestic economy to new levels of competition. The result has been reorganisation and, in some cases—notably in manufacturing—attrition.

These policy changes have made it necessary to review the legal environment in which business is conducted.

Like virtually every developed market economy New Zealand has a law which is aimed at protecting the competitive process. The Commerce Act 1986 is a key piece of legislation in a less regulated business environment. In general terms, the Act rests on the premise that the existence of open and competitive markets will ensure the efficient allocation of economic resources. It includes prohibitions on anti-competitive collusive and unilateral behaviour, and upon mergers that create or strengthen a dominant position in a market. The Act also constitutes the Commerce Commission as a public enforcement agency and provides scope for private remedies. The Commerce Act was reviewed in 1992 to ensure that its provisions are consistent with other government policies promoting economic growth.

A comprehensive review of New Zealand's company and securities law is in progress, to ensure that it achieves the best balance between providing flexibility and encouragement for business and investment on one hand, and safeguards for the interests of shareholders and creditors, on the other. This should ensure that New Zealand's capital markets are internationally competitive. Areas of law covered include companies legislation (Companies Act 1955), securities legislation (Securities Act 1978), financial reporting, takeovers, insider trading and insolvency.

As the economy has become more market-oriented, traditional controls in the retail sector have also been reviewed. The laws controlling both shop trading hours and the sale of liquor have been reviewed and relaxed in some areas to encourage competition and provide the structures to compete with imported products and allow businesses to meet consumer demand.

Legislation to protect the interests of consumers in the increasingly competitive domestic market has been introduced in the form of the Fair Trading Act 1986, administered by the Commerce Commission. A Ministry of Consumer Affairs was also established in 1986.

Up-to-date summary information on distribution is provided by the Annual Enterprise Survey, which covers the activities of all businesses classified in Division 12 of the New Zealand Standard Industrial Classification.

Table 22.1. DISTRIBUTION: STATISTICAL SUMMARY

Statistical item1987-881988-891989-90
   number
Group enterprises2,5592,5732,189
Enterprises within these group enterprises4,1903,9273,254
Enterprises not within these group enterprises38,18440,68443,742
Activity units (including ancillaries)51,00452,89755,841
Full-time equivalent persons engaged279,268278,173278,784
Stocks $(million) 
    closing8,034.68,339.28,560.3
    opening7,833.07,537.08,511.9
Income—
    Sale of goods and services65,636.367,292.365,847.3
    Interest, etc received658.0737.3551.2
    All other income3,394.72,745.6763.1
            Total sales and other income68,689.070,775.367,161.6
            Adjusted for change in stock values68,890.671,577.567,210.0
Operating expenditure—
    Salaries and wages4,742.05,050.95,190.0
    Depreciation622.9719.4816.3
    Interest, bad debts, etc.1,722.11,645.11,636.7
    Indirect taxes51,567.853,199.6209.7
    Purchases199.8202.848,301.4
All other operating expenditure8,094.18,666.68,759.0
Total operating expenditure66,948.869,484.564,913.0
Working proprietors/partners salaries and wages833.1718.71,033.1
Net profit before tax after deducting working proprietors/partners salaries and wages1,103.71,374.31,263.9
Economic values—
    Operating surplus3,005.93,000.83,302.9
    Value added8,324.98,837.510,845.9
Fixed tangible assets
    Purchases during the year1,780.12,003.11,991.5
    Sales during the year619.6648.1588.9
Balance sheet
    Shareholders funds, etc.11,739.010,806.211,873.1
    All other liabilities19,018.319,955.719,326.0
Total capital and liabilities30,757.330,761.731,199.1
Fixed tangible assets7,132.77,453.98,259.2
All other assets23,624.623,307.922,939.9
Total assets30,757.330,761.731,199.1
Ratios $ 
    Value added per full-time persons engaged29,81031,77038,904.3
    Value added per $1,000 of salaries paid1,7561,7502,089.7
    Total sales and other income per full-time persons engaged245,961254,4291,201,373.0
   percent
    Net profit per total sales and other income1.61.91.9
    Total salaries and wages per total sales and other income6.97.17.7
    Value added per total sales and other income12.112.516.1
    Shareholders funds per total capital and liabilities38.235.138.1
    Fixed assets per total assets23.224.226.5

Last day at the old site of Auckland market, established 1916.

Controls on trading

Consumer affairs

Fair Trading Act 1986. This Act came into force on 1 March 1987. It is important for all consumers and businesses in New Zealand as it:

  • Consolidates the laws on misleading advertising.

  • Prohibits deceptive or misleading conduct and “false representations” about the provision of goods and services.

  • Prohibits certain unfair trading practices.

  • Provides for new consumer information and product safety standards.

Any person (including those who may not be directly affected by a particular breach) can take action if he or she believes the Act has been contravened.

Those breaching the criminal provisions of the Act can be fined up to $100,000. Damages can also be awarded against businesses. Enforcement of the Act's general provisions is undertaken by the Commerce Commission.

Ministry of Consumer Affairs. The ministry exists to help New Zealanders prosper by promoting a fair and informed market-place for consumers. Its purpose will have been met when:

  • Consumers are protected by law and/or practice from deceptive, misleading or otherwise unreasonable and objectionable practices, and unsafe goods.

  • Consumers are well informed, discerning and able to exercise choice.

  • Business and consumers find mutual benefit and satisfaction in their fair dealings with one another.

  • Legal rights and obligations are known and used/met.

  • Access to redress and enforcement is easily available and fully effective.

Policy advice is provided to the Government on consumer law reform, in particular the operation of the Fair Trading Act 1986, Consumer Guarantees Act 1993 (which comes into force on 1 April 1994 consumer credit legislation, Weights and Measures Act 1987, product safety standards, and market-place regulation issues. In formulating policy, consultations are held with consumer/community groups, government departments and traders.

Consumer awareness is promoted by a consumer education resource programme in schools and teaching institutions; consumer education resource programmes in the community; and consultation with the community in developing education materials. Consumer representation on statutory and governmental boards is encouraged.

The ministry's Consumer Advice Service, with toll-free lines based in Auckland, Wellington and Christchurch, handles general enquiries from consumers about their legal rights and assists consumers to resolve their own complaints.

The Trade Measurement Unit aims to ensure that goods and services are exchanged on the basis of fair and accurate measure, in accordance with the relevant legislation or regulation, thus contributing to the economic welfare of both consumers and traders. The unit has offices in Auckland, Palmerston North, Wellington and Christchurch. An accreditation programme has been introduced to enable private sector firms to certify weighing and measuring equipment.

The ministry was established in 1986. It operates as a division of the Ministry of Commerce but its head reports directly to the Minister of Consumer Affairs.

Restocking shelves with safe mussels.

Consumers' Institute. The institute is an independent and impartial consumer protection and publishing organisation. It conducts comparative tests and surveys of consumer goods and services, and researches financial, legislative, health, food, safety, environmental, welfare, gardening, home improvement and do-it-yourself subjects.

Its findings are published in the monthly magazine Consumer (which has over 73,000 subscribers) and the quarterly Consumer Home & Garden (over 31,000 subscribers). These publications are unique in reporting by name on products, services, companies, traders, professionals and government and other organisations. Survey results are sent to named parties before publication, and draft articles are checked with expert commentators.

Subscribers to either or both magazines are members of the Institute. It has operated with no income except that received from its subscribers since 1989 when it ceased to be a statutory body with some government funding. Consumer's Institute has one of the highest ratios of membership to population of any consumer organisation in the world. Despite the comparatively small number of households from which to draw membership, it maintains research and magazines equal to those of overseas groups (with whom it co-operates).

While no longer a publicly-funded body, the institute continues to work on behalf of all New Zealanders. It represents consumers before and on a wide range of bodies and liaises with many organisations to promote the consumer interest.

A board elected by the subscribing members governs the institute. The day-to-day work is carried out by a small staff, all except two in Wellington.

Shop trading hours

Traditionally, retailers have been restricted in the hours they can open their shops by legislation. On 1 August 1990 all such restrictions were removed with the repeal of the Shop Trading Hours Act.

Now shops can open every day of the year, 24 hours per day, except Christmas Day, Good Friday, Easter Sunday and up to 1 pm on Anzac Day. There are exceptions to this which allow certain shops to open on any day, i.e.: dairy/mixed businesses, service stations, takeaways, souvenir and duty free shops, shops at public passenger transport terminals and genuine exhibitions and shows.

Sale of liquor

On 1 April 1990, the Sale of Liquor Act 1989 came into force, replacing the Sale of Liquor Act 1962.

The object of the new Act is to establish a reasonable system of control over the sale and supply of liquor to the public with the aim of contributing to the reduction of liquor abuse, so far as that can be achieved by legislative means.

The Sale of Liquor Act 1989 provides that the sale of liquor to the public, or any member of the public requires a licence.

There are four kinds of licences under the Act: On-licences; Off-licences; Club licences; and Special licences.

An on-licence authorises the holder of the licence to sell and supply liquor on the premises or conveyance (such as a ship or aeroplane) for consumption on the premises only. Examples of this include taverns, licensed restaurants and nightclubs.

An off-licence authorises the holder of the licence to sell or deliver liquor on or from the premises to any person for consumption off the premises. Examples of this are wine resellers and others formerly known as wholesalers.

A club licence authorises the holder to sell and supply liquor on the premises for consumption on the premises by a club member or guest of a member. A ‘club’ in this instance means a chartered club; a club that participates in or promotes any sporting or other recreational activity, other than for gain or; any group of people combined for any purpose other than gain.

A special licence enables the holder of the licence to sell and supply liquor on the premises, for consumption on the premises to any person attending a particular occasion or event and is the only licence granted by district licensing agencies.

Drinking age. The legal drinking age has not changed, and the sale of liquor to persons 20 years of age or under remains prohibited except in certain circumstances.

Hours of sale. Under the new legislation the hours liquor is permitted to be sold or consumed are not spelt out.

Each application is dealt with on its merits. Application for liquor licences are made to the appropriate district licensing agency in the first instance and then referred to the Liquor Licensing Authority for determination.

Liquor licensing. The central licensing body is the Liquor Licensing Authority consisting of a District Court judge, as chairperson, together with three or four members, appointed by the Governor-General on the recommendation of the Minister of Justice. It considers and determines applications for on, off and club licences, and for managers' certificates. It also decides on appeals against decisions by district licensing agencies.

There are 74 district licensing agencies, which are essentially the local authorities for each district or city throughout New Zealand.

The district licensing agencies are able to grant special licences and renewals where there are no objections. The agencies also receive all applications and objections, gather reports, and forward complete files to the Liquor Licensing Authority for determination. They may also consider applications for temporary authority to carry on the sale and supply of liquor.

22.2 Commercial framework

Companies and partnerships

Individuals wishing to join together to form a business have the choice of two principal forms of operation. They can form an ordinary or special partnership under the Partnership Act 1908, or they may form a registered company under the Companies Act 1955. If, as usually happens, they wish to limit their individual liability for any losses that the business may suffer, then they will choose to register a limited liability company under the Companies Act 1955. This is by far the most usual form of business operation in New Zealand.

Registered companies. Any number of persons from two to 25 may form a private company, but in special circumstances the number may increase to 50. A public company must have a minimum of seven members. Under certain conditions a private company may be re-registered as a public company and vice versa.

A registered company becomes a corporation, which is a separate legal entity from the individual members of the company. Certain important consequences flow from this. The debts of a registered company are those of the company and not of its members, that is, the shareholders in most cases. A registered company contracts in its own name and is liable on its contracts. The members, therefore, are not usually liable on its contracts. A registered company has perpetual succession. This means the death, bankruptcy, retirement, etc of its members does not affect its existence or its capacity to hold property. A registered company can enter into contracts with its members. Lastly, the members of a registered company are not its agents and therefore have no power to deal with its assets, or enter into binding contracts on its behalf.

Associated with the principle of separate legal entity is that of limited liability. Most companies are registered with the members having limited liability. A company is always fully liable for claims against it; it is the members' liability for a company's debts that is limited. In the case of a company limited by shares the liability is limited to the amount, if any, unpaid on that member's shares.

Table 22.2. COMPANY REGISTRATIONS

Year ended 30 JuneNew companies registeredCompanies dissolved or struck offCompanies on register

*Year ended 31 March.

Source: Department of Justice.

1988*16,0615,187158,032
1989*12,3469,390160,988
1990*11,28912,377159,922
199110,95314,984153,275
199212,33011,144154,526
199313,34111,483156,161

NEW COMPANY REGISTRATIONS
Related to size of population

Responsibilities to company shareholders. Comprehensive legislation relating to companies is contained in the Companies Act 1955. The Act has recently been completely reviewed by the Law Commission and the Department of Justice, and a Companies Bill and associated legislation is presently before the House.

Financial planning.

An important principle of the current legislation is the protection of shareholders, creditors, and the general public by the requirement that there be the fullest practical disclosure of information concerning the activities of companies. Annual statements of account are required from public and non-exempt private companies (which have 25 percent or more of their capital held by persons domiciled overseas) and must exhibit a true and complete account of a company's affairs and transactions.

Offers of shares to the public can only be made after the issue of a prospectus, which has to be registered with the Registrar of Companies. The Securities Act 1978 established a Securities Commission, whose responsibilities include recommending rules in this area, which are set out in the Securities Regulations 1983. See ‘Securities Commission’ below.

The Companies Amendment Act 1963 regulates takeovers by ensuring that shareholders in other companies have enough time and information to make a proper decision about the takeover offer. The Companies Amendment Act 1964 deals with flat-owning companies, which issue occupation licences registered under the Land Transfer Act 1952.

Partnerships. A partnership is defined in the Partnership Act 1908 as the relationship between persons carrying on a business in common with a view of profit. Partnerships are started by mutual agreement, which can be informal, but the terms would normally be contained in a written agreement. Its characteristics are described below. Each partner is usually under a joint liability for all the partnership debts. A partnership will as a rule be dissolved by the death or retirement of a partner. Partnership interests are not usually capable of being assigned or transferred. Control and management of a partnership's affairs are (subject to the partnership agreement) vested in all the partners. Lastly, a partner is ostensibly an agent for the other partners, and can commit the partnership to agreements and arrangements that bind them.

Company practices

In the process of freeing up the economy and reducing government regulation of markets, legislation has been introduced to prevent large companies and industries from dominating markets by, for example, buying out their competitors, and creating a monopoly of the supply of goods and services.

Commerce Commission. The commission investigates companies for compliance with and enforces the provisions of the Commerce Act 1986. This Act exists to promote workable and effective competition in markets within New Zealand and controls restrictive trade practices, business acquisitions which result in or strengthen market dominance, and prices for controlled goods or services.

In the area of trade practices, such as contracts, covenants, arrangements and understandings, the Commerce Act prohibits any that have the purpose or effect of substantially lessening competition in a market, except where public benefits are deemed to outweigh this outcome and the Commerce Commission authorises it.

Where a business merger or takeover is proposed, the parties may apply to the commission for a ‘clearance’ that no dominance issues arise. If dominance is, or is likely to be, acquired, an application to the commission for authorisation is necessary.

It is unlawful for a business to acquire or strengthen market dominance by takeover or merger unless authorised by the commission. An acquisition can only be authorised if the commission considers that the benefit to the public outweighs the harmful effect of the change in structure on business competition.

In the prices area, the commission determines prices of controlled goods and services (the last price control, over natural gas, was removed on 1 April 1993).

The Commerce Commission is a body corporate with investigative and administrative powers. It was restructured under the Commerce Act 1986, with substantial changes introduced by amendment in 1990.

The Commerce Commission also has responsibility for enforcing the Fair Trading Act 1986 (see above).

Securities Commission. Established under the Securities Act 1978, the fundamental purpose of the commission is to facilitate private capital investment in New Zealand by: improving the efficiency and fairness of the markets for the security of entities which raise funds from the public in New Zealand; and enhancing public confidence in these markets, while minimising the need for (and the cost of) intervention in these markets by the government and agencies funded by the government.

To achieve this purpose the commission directs its work towards:

  • Ensuring that investors and prospective investors are informed reasonably, fairly, truthfully and promptly of: the nature of their investment contracts, the financial position and performance of the entities in which they have invested or propose to invest, and of the material interests of the persons who direct these entities or promote any offerings of their securities.

  • Encouraging improvements in the law relating to securities and bodies corporate.

  • Encouraging improvements in the standards of ethics and business practices in the markets for securities.

  • Encouraging improvements in the procedures for transacting business in the markets for securities.

  • Improving public understanding of the law and practices of the securities of public issuers.

  • Achieving closer economic relations with companies and securities regulators in other countries and contributing to the harmonisation of business law and regulatory practices between countries for the purpose of improving efficiency and of producing malpractice in across border securities transactions.

The commission aims to achieve these objectives by the exercise of its statutory powers, by the review and comment on business law and practices, and by the promotion of the public understanding of business law and practices.

Serious Fraud Office. The Serious Fraud Office is a specialist, inter-disciplinary department established to facilitate the detection, investigation and expeditious prosecution of serious or complex fraud offenders. The office is composed of chartered accountants, investigators and lawyers and multi-disciplinary teams are used in the investigation and prosecution of cases.

The powers given to the office are to be found in the Serious Fraud Office Act 1990 which came into effect on 3 July 1990.

For the purposes of determining whether an offence involves serious or complex fraud, the Act provides that the director may, among other things, have regard to the following four factors:

  • The suspected nature and consequences of the fraud.

  • The suspected scale of the fraud.

  • The legal, factual and evidential complexity of the matter.

  • Any relevant public interest considerations.

The director's decision to investigate or take proceedings in relation to serious or complex fraud or proceedings under the Act is discretionary and not subject to review.

Essentially, however, the Serious Fraud Office specialises in the investigation and prosecution of all serious and complex fraud, leaving other enforcement authorities to concentrate their resources on the prosecution of other offences.

In the long term it is hoped that the establishment of this new, specialist government department will make a significant contribution towards the combating of serious and complex fraud offending.

Stock exchange

There are three broad categories of stock that are bought and sold on the New Zealand Stock Exchange—shares in companies, debentures and other loans to companies, and government and semi-government stock. As on other stock exchanges around the world, company shares account for the bulk of trading.

New Zealand Stock Exchange. This central exchange was established by the Sharebrokers Amendment Act 1981, and is governed by a board of directors comprising members, independent directors and one exchange executive (managing director). Its office in Wellington is responsible for granting of listings, supervision of listed companies as regards their compliance with the listing requirements and the collection and promulgation of all market information and the operation and supervision of the trading system. It is also responsible for the membership of the exchange.

The exchange is financed by the payment of annual fees by listed companies and by levies on its members.

The New Zealand Stock Exchange is made up of members (sharebrokers) who assist companies to raise capital through issuing securities on the market, providing investment advice and acting as agents on behalf of their clients in the purchase and sale of securities. To become a member, a person must obtain a sharebrokers' licence and be approved by the board which is guided by qualifications, financial standing and experience. No entry fees are required but trading members are subject to extensive capital adequacy requirements and regulations governing the operation of their sharebroking businesses.

There were 123 New Zealand companies and 52 overseas companies listed with the exchange at 31 December 1992.

New technologies, changed management and regulatory approaches continue to have an impact on the way the New Zealand Stock Exchange operates and the way the market conducts its business. These changes include the introduction of a computerised trade matching and settlement system in 1988, a Market Surveillance Panel in 1989, an automated screen trading system in 1991, and the FASTER system of electronic transfer of securities in August 1992. They have improved the conduct and efficiency of the market, reduced the risks associated with the activity of trading and have enhanced the openness and fairness of market activities.

Traders at CS First Boston office, Wellington.

Market surveillance panel. The Market Surveillance Panel was established by the New Zealand Stock Exchange to administer and enforce the new listing requirements implemented in 1989.

The panel has proved extremely successful, and there has been full acceptance by companies and investors alike. This has reinforced the view that self-regulatory measures can operate to the overall benefit of market participants.

The listing requirements were further revised and amendments introduced in February 1991. The revision saw the introduction of new policy on late reporting, disclosure of relevant information, independent requirements for appraisal reports and shareholder approval of transactions with associated parties, and for restrictions on voting. The latter two amendments are seen as major steps forward in shareholder protection.

The exchange's rules and regulations were further revised and introduced in June 1991, to cover screen trading, short selling and a revision of the existing disciplinary rules. Further review to New Zealand Stock Exchange regulations and the listing requirements during 1992 provided for the electronic transfer of securities.

A new Companies Bill and subsequent amendments are before Parliament to replace the Companies Act 1955. Securities laws are under general review and a formal reporting regime has been announced, including the establishment of an Accounting Standard Review Board. The implementation of new legislation in these areas will necessitate further changes to the listing requirements, and a committee is being established to carry out a complete review.

SHARE PRICE INDEX
Gross index

Insolvency

Bankruptcy. The term bankruptcy usually refers to the financial insolvency of individuals. The law relating to bankruptcy in New Zealand is contained in the main in the Insolvency Act 1967 (which came into force in 1971), the Insolvency Rules 1970, and the Insolvency Regulations 1970. Jurisdiction in bankruptcy matters is vested in the High Court.

All proceedings in bankruptcy are commenced by a petition filed in the court by either the debtor or a creditor. Not less than $200 in total must be owing by the debtor to any creditor, or creditors, filing a petition.

The Official Assignee is a statutory officer, and an officer of the court, in whom (apart from certain statutory exceptions) all the assets of a bankrupt vest on adjudication, and who acts as a trustee in respect of those assets. The assignee is empowered to sell the bankrupt's property, enforce debts due to the bankrupt's estate or carry on the business of the bankrupt so far as it is necessary or expedient for its disposal or conclusion. When all the assets are realised, the assignee deducts expenses incurred, pays any debts given statutory priority and then divides the proceeds among the creditors. Secured creditors are paid from the proceeds of the security, and other creditors are paid on a pro rata basis. Creditors may accept a composition in satisfaction of the debts due to them.

Upon application being made by the bankrupt, the court is empowered to grant an order of discharge, which can be absolute, conditional, or suspended. The application may be opposed by the assignee, or by any creditor whose claim has been proved and public examination of the bankrupt may be demanded. In all other cases a person adjudged bankrupt is automatically discharged three years after adjudication, in the absence of any earlier application by the bankrupt.

Where a creditor is concerned that a bankrupt may realise the assets and depart, without regard for any financial obligations, application may be made for the assignee to be appointed as a receiver/manager of the property prior to the hearing of the creditor's petition.

Another form of financial failure is covered by private assignments, which are not included in official bankruptcy statistics.

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.

Table 22.3. OCCUPATIONS OF BANKRUPTS

Occupational group198719881989199019911992*

*Figures for 1992 are not comparable to previous years figures due to the New Zealand Standard Classification 1990 being used from the September 1992 quarter onwards.

Professional, technical, and related workers5584886487142
Administrative and managerial workers73142185211249348
Clerical and related workers262554356143
Sales workers159235183194248165
Service workers951611169011579
Agricultural, animal husbandry, and forestry workers, fishers, and hunters1291671458110681
Production and related workers, transport equipment operators, and labourers310447437313455493
Not actively engaged/unknown3826137148151,0891,089
            Total bankruptcy petitions1 2291 8741 9221 8032 4102 440

Hardware retail chain in receivership.

Company liquidation. Liquidation (sometimes called ‘winding up’) is the legal process by which a company's life is ended. The company's assets are realised, its creditors paid out, any surplus is distributed to the shareholders, and the company is then dissolved.

Liquidation is carried out in accordance with the relevant provisions of the Companies Act 1955, the Companies (Winding Up) Rules 1956, and the High Court Rules.

Companies with heavy debt loads and cash-flow problems often have a receiver appointed over their assets, either by the court, or more usually under an express clause in a mortgage or debenture. Debentures often contain a lengthy recital of the events which will enable debenture-holders to recover their loans if borrowers get into financial difficulties. One of these provisions will be the power of the debenture-holder to appoint a receiver.

The function of a receiver once appointed is to realise the assets charged by the debenture, that is to sell what is necessary to recover the amount owed to the debenture-holder (plus costs), and then get out. No property of the company is actually vested in the receiver, and, although the directors remain in office, the receiver supersedes them and exercises their powers. The receiver's status is one of agent, not officer of the company. Receivership is quite distinct from liquidation, as a receiver acts for the benefit only of the debenture-holder who appointed him or her.

Table 22.4. COMPANY INSOLVENCIES

Year ended 31 MarchCompanies placed under receivershipCompany liquidations
Court orderVoluntary

Source: Department of Justice.

1988369468363
19891,1038311,063
19908401,0122,597
19916561,033707
19926601,063759
19934251,004436

BANKRUPTCIES
Rate per 100,000 population

22.3 Insurance and superannuation

Operating environment

The insurance industry in New Zealand, both life and non-life, has a number of unique characteristics which make international comparison difficult. In taking an overview of the New Zealand industry it is necessary to identify and understand those characteristics.

Regulation. The New Zealand insurance market is one of the least regulated in the world, a circumstance that applies to both fire and general insurance and life insurance. The most important regulatory legislation is the Insurance Companies' Deposits Act 1953, which requires any person or company carrying on the business of insurance in New Zealand to lodge approved securities with a market value of not less than $500,000, with the Public Trustee.

There is a similar provision for deposits under the Life Insurance Act 1908 but the deposit requirement has been for securities with a market value of not less than $500,000 for many years. The deposits are held by the Public Trustee as security for policyholders or claimants in respect of policies or other contracts issued, granted or entered into by the person making the deposit. The value of deposits held by the Public Trustee under the Insurance Companies' Deposits Act 1953, was $36.6 million ($32.5 million in 1990), and $30.7 million under the Life Insurance Act 1908 ($29.5 million in 1990), at 31 March 1991.

Statutory reporting is required only in terms of the Life Insurance Act 1908. The Insurance Companies' Deposits Act 1953 was amended in 1983 to require detailed annual reports and statements of financial condition to be provided to the Department of Justice. New Zealand has no insurance commissioner or equivalent public official and there are no statutory solvency requirements or controls, nor is there any restriction or control on re-insurance.

Life insurance companies may apply to the Securities Commission on an annual basis to be ‘authorised’ in terms of the Securities Act 1978, which gives certain exemptions from the requirements of that Act. The life insurance industry is also required to comply with all consumer protection legislation such as the Fair Trading Act 1986 and the new Consumer Guarantees Act 1993 which will be effective from 1 April 1994.

There are no fiscal regulations designed to direct life or fire insurance investment funds to particular investment sectors. There are some limited reporting and disclosure requirements contained in the Marine Insurance Act 1908.

The Mutual Insurance Act 1955 provides for the establishment of mutual insurance associations which were intended to provide insurance primarily for farm owners and certain rural industries and their employees. Other insurance companies are subject in the ordinary way to the provisions of the Companies Act 1955 and comply with New Zealand company law in the same manner as other business enterprises.

The regulatory position can be summarised by saying that the size and closely knit nature of the New Zealand insurance market has meant that regulation of the industry has proceeded through a combination of rather loose government supervision coupled with a measure of self-regulation. Competition has also been an important factor in regulating all parts of the insurance market. During 1990 the Insurance Council of New Zealand adopted self-regulation in order to provide greater information to consumers. In 1989 the Life Office Association became a self-regulating organisation with an independent review authority and a defined relationship with the Securities Commission.

Insurance intermediaries. These are not regulated, and New Zealand has developed a highly sophisticated system for marketing of insurance services. Traditionally, the insurance needs of the community have been served through a network of agents established by each insurance company. This agency network is now reinforced by other networks of international and local insurance brokers, the former servicing the major commercial accounts and providing access to international insurance services, and a growing network of independent insurance agents selling fire and general insurance.

The life insurance agency system has substantially been a tied agency system with individual agents contracted to a particular life insurance company.

Government's role in the insurance market. Some classes of insurance which make a substantial contribution to the premium pool outside New Zealand do not feature in New Zealand at all because of the different legal climate and background. For instance, the accident compensation scheme effectively removed many classes of liability insurance in New Zealand. This Act is comprehensive ‘no fault’ legislation which abolishes all common law actions in tort for negligence and provides a system of compensation and rehabilitation in respect of accidental injury. The current Accident Rehabilitation and Compensation Insurance Act 1992 is administered by the Accident Rehabilitation and Compensation Insurance Corporation (ACC) which also has statutory responsibilities in the field of accident prevention. The system of accident compensation in place is described in section 7.4, Accidents.

New Zealand has a high degree of susceptibility to losses arising from earthquake and other geophysical events, so insurance in respect of earthquake and volcanic activity has presented a considerable problem. The Earthquake and War Damage Commission Act 1944 established a government guaranteed fund to meet losses accrued through natural disaster or war. The Act was recently replaced by the Earthquake Commission Act 1993 bringing several changes to the original scheme. Under the new Act the Earthquake Commission (EQC) provides coverage of up to $100,000 for replacement of private dwellings and $20,000 for domestic contents is available in case of earthquake, natural landslip, volcanic eruption, hydro-thermal activity and tsunami; the same level of cover is provided for residential property in the case of storm or flood; and all properties are covered in the event of fire occasioned by or through any of these calamities. Land cover is provided outside these limits. War damage has been removed as an insured peril. The commission is currently phasing out cover for non-residential property which will be available at 50 percent in 1994 and 25 percent in 1995. By 1996 EQC will no longer cover non-residential property. Premiums at a rate of 5 cents per $100 cover are collected by insurance companies and brokers and then paid to the commission.

Historically, government has also been involved in both fire and general and life insurance through government-backed life insurance and mutual funds, but in recent years has withdrawn from these activities.

The taxation regime in New Zealand in respect of both life insurance, non-life insurance and reinsurance includes the imposition of goods and services tax on non-life insurance services, and income tax in respect of both life and non-life insurers and insurance transactions. A major review of life office taxation has been undertaken.

Fire services in New Zealand are funded through a levy upon all fire insurance policyholders. The role of the New Zealand Fire Service Commission is outlined in section 7.6, Civil defence and fire safety.

Each of these interventions in the insurance market by government affect the size of the premium pool by influencing the cost and perceived level of insurance required from the private sector by businesses and private individuals.

Insurance and Savings Ombudsman. Plans are well advanced for an ombudsman to be established in early 1994 covering the life insurance and savings industry, fire and general insurance and health insurance.

Development of an insurance industry

The life insurance industry in New Zealand assumes major importance as an investor and savings vehicle. New Zealanders, per capita, are among the five largest purchasers of life insurance in the world. The life insurance market is dominated by three large mutual societies (AMP, National Mutual and Colonial Mutual), New Zealand Insurance Life, Tower Corporation and Prudential which between them write about 75 percent of the country's life insurance/superannuation business, measured by annual premium income in force. The Department of Statistics' Annual Business Directory update recorded 34 life insurance enterprises as at February 1993.

The non-life insurance market is divided amongst 128 enterprises which have made deposits under the Insurance Companies' Deposits Act 1953, but many of these depositors are not now active in the New Zealand market. Some deposits are made to support placements overseas by brokers, or by international reinsurers, and some are retained to support the runoff of workers' compensation business by insurers no longer active in New Zealand. Some New Zealand insurance business is directly placed offshore with Lloyds and the company market in London. The Department of Statistics' Annual Business Directory update, recorded 53 medical and 66 general insurance enterprises operating in New Zealand as at February 1993.

The New Zealand premium pool is divided approximately: 16 percent commercial fire business, 26 percent domestic fire, 40 percent motor, 14 percent general accident, 1 percent marine hull and 3 percent marine cargo.

The Annual Business Directory update recorded 8,510 persons employed within the industry as at February 1993. The premium pool as at 31 December 1992 was:

  • Life (including superannuation) $2,048 million; and

  • Non-life $1,600 million including the EQC premium.

Considerable change is taking place in the insurance industry in New Zealand and is likely to continue. The number of direct underwriters is reducing, with amalgamations and withdrawals. This process is accompanied by an increase in the number of reinsurers establishing a place of business in New Zealand.

It is also probable that the number of major international brokers will be reduced but that there will be a growing number of brokers operating on a local or regional level to service small businesses and the domestic market.

In the life insurance and superannuation fields it is generally anticipated that market growth will be slower in the absence of taxation incentives to encourage the purchase of life insurance.

Loss prevention

The Accident Compensation Corporation has the statutory duty to promote occupational safety and accident prevention, and this activity has had some indirect benefit to the insurance industry.

The Insurance Council of New Zealand along with the Fire Service Commission, is active in fire prevention and fire safety education. Most other activity in the field of loss prevention and accident prevention is undertaken by government or quasi-government bodies which are wholly or partly public funded.

The Building Research Association of New Zealand undertakes some work in respect of the assessment of building materials and methods of construction and the Automobile Association and similar organisations are active in the field of prevention of motor vehicle accidents. Much of New Zealand's effort in loss prevention has traditionally been organised and financed through the insurance industry, in areas such as electrical safety and the registration, research into fire prevention and fire safety equipment, and the approval of passive fire protection and alarm systems.

Industry organisations

Several industry organisations are maintained. The principal ones are:

  • The Insurance Council of New Zealand Inc—fire and general insurers.

  • The Life Office Association of New Zealand Inc—maintained by life insurers.

  • The Corporation of Insurance Brokers of New Zealand—made up of brokers.

  • The Independent Insurance Agents Association—representing independent brokers and agents;

  • The Chartered Institute of Loss Adjusters and The Institute of Loss Adjusters of New Zealand Incorporated—comprising adjusters and assessors.

  • The Insurance Institute of New Zealand Inc—the educational body of the industry.

The Insurance Council operates a disaster emergency scheme. Both the Insurance Council and the Life Office Association operate consumer inquiry facilities.

Government superannuation

For many years central government, local authorities, and increasing numbers of private employers have operated superannuation schemes to enable employees to provide for their retirement in addition to the benefits provided under social security schemes. More than one-third of all New Zealand taxpayers contribute to superannuation schemes, making provision for retirement income. Many of these contributors belong to schemes into which the employer pays a subsidy, and the two largest organisations are state-run.

The Government Superannuation Fund's revenues consist of members' contributions, subsidies from the Crown Bank Account and trading departments and other bodies, and interest earned on investments. The National Provident Fund was established as a superannuation scheme for the general public providing superannuation for the employees of local authorities and other approved bodies as well as private companies. It maintains an investment pool in which local bodies may invest their surplus funds.

Government Superannuation Fund. The Government Superannuation Fund administers six superannuation schemes: the general scheme for employees in government service; and the five sub-schemes for specialised occupational groups—the armed forces, police, prison service, members of Parliament and judges.

The Government Superannuation Fund is administered by a board comprising 15 members, with the Minister of Finance as statutory chairperson and representatives from various state departments and agencies.

As at 30 June 1993 there were 57,925 contributors to the Government Superannuation Fund and they paid $196.12 million into it during the 15 month period ending 30 June 1993. At the same time there were 45,985 beneficiaries who received $580.57 million during the period.

Total assets at 30 June 1993, which amounted to $3,031.50 million included investments in government stock of $1,406.30 million and $65.98 million in members' mortgages. The average effective interest earning rate before tax of the fund was 12.18 percent for the year.

National Provident Fund. With approximately $2.8 billion in total assets, the National Provident Fund is New Zealand's largest superannuation fund and provides superannuation schemes both for employer/employee groups and for individual members.

In 1991, under the provisions of the National Provident Fund Restructuring Act 1990, the National Provident fund was split into 17 separate superannuation schemes, each with its own scheme trust deed. These schemes were closed to new members on 1 April 1991. The board of trustees of the National Provident Fund, which is appointed by the Minister of Finance, is the trustee for each scheme. The Act also required that the board of trustees determine the most appropriate future management arrangements for the National Provident Fund schemes and assets. To this end, the board conducted an international tender process, and new management arrangements were put into place from 1 April 1992.

The assets of the 17 schemes, which were previously administered as an omnibus fund, were restructured and are now managed through a Global Asset Trust. Eleven separate specialist fund managers manage these funds. An international global custodian, State Street New Zealand Limited, accounts for and reports on the investments of the funds. Jacques Martin, a subsidiary of Melbourne-based Jacques Martin Pty Limited, administers the schemes. A small executive office has been maintained to assist the board with monitoring the new management arrangements and to ensure that the monitoring processes are operating effectively and to the benefit of members.

The changeover in management arrangements has not changed National Provident Fund members' rights and benefits. Existing scheme members may remain in their schemes, and the benefits provided through the schemes continue to be government guaranteed.

In 1993, an amendment to the National Provident Fund Restructuring Act led to a number of new provisions being incorporated into National Provident Fund schemes. Under certain circumstances, members may now rejoin a National Provident Fund scheme of which they were previously a member (if they withdrew from that scheme after 31 March 1991), join another National Provident Fund scheme, or transfer from their National Provident Fund scheme to another registered superannuation scheme.

Table 22.5. GOVERNMENT SUPERANNUATION FUND ALLOWANCES, AT 30 JUNE 1993

Qualification for allowanceNumber

Source: Government Superannuation Fund.

Retired for age, length of service or medically unfit34,684
Spouses11,018
Children283
            Total allowances45 985

Table 22.6. CONTRIBUTORS TO GOVERNMENT SUPERANNUATION FUND

Branch of serviceAt 30 June 1993Percentage of total

*Includes state-owned enterprises which were formerly part of the Public Service.

Source: Government Superannuation Fund.

Armed services9,92917.14
Judges1470.25
Parliamentarians1010.17
Police5,2559.08
Prison officers8431.46
Public Service*41,65071.09
            Total57 925100.00

Table 22.7. GOVERNMENT SUPERANNUATION FUND: SUMMARY

Year ended 30 JuneNumber of contributorsAnnual contributionsInterest received from investmentsSubsidy from government trading departments and othersAnnual value of allowancesAccumulated fund at 30 June

*Year ended 31 March.

†Tax exempt.

Source: Government Superannuation Fund.

   $(000)  
1990*60,144146,438315,003554,819474,7562,342,582
1991*55,403140,059362,532450,908422,990†2,563,934
1992*56,709149,437385,074413,715453,5312,804,582
199357,925196,388422,703536,545580,5663,031,503

Because each of the National Provident Fund schemes is now reported on separately, a financial summary of the aggregated fund is no longer applicable.

Insurance industry statistics

The results of the 1987 Economy Wide Census are supplemented annually by the Annual Enterprise Survey. Both the census and the enterprise survey cover 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, medical and general insurance. The provision of life insurance, life re-insurance and other life insurance including mortgage repayment insurance; includes superannuation and mutual fund operation not separately administered. The provision of fire insurance cover for commercial and domestic purposes, marine, aviation and other accidental insurance. The provision of medical, hospital and dental insurance, funeral benefits and the operation of benefit funds includes employee benefit funds, welfare societies and friendly society funds not elsewhere classified.

Table 22.8. LIFE MEDICAL AND GENERAL INSURANCE

Statistical item1990-91
 Number
Group enterprises68
Enterprises within these group enterprises118
Enterprises not owned by group enterprises1,095
Activity units (including ancillaries)1,898
Full-time equivalent persons engaged9,646
Income—$(million)
    Interest and dividends received1,017.9
    Premiums and contributions received2,962.7
    All other income355.9
            Total sales and other income4,336.5
Adjusted for change in stock values4,336.5
Operating expenditure— 
    Salaries and wages331.2
    Depreciation61.6
    Interest, bad debts, etc26.6
    Claims and benefits paid2,933.6
    Indirect tax19.6
    All other operating expenditure904.9
            Total operating expenditure4,277.3
Balance of income over expenditure59.1
Plus net gains on extraordinary items, transfers & tax-711.1
Equals increase in policy-holders funds-652.0
Plus total funds at beginning of year11,525.6
Equals total funds at end of year10,861.2
Economic values 
    Operating surplus0.0
    Value added721.6
Fixed tangible assets 
    Purchases during the year136.2
    Sales during the year355.5
Balance sheet 
    Shareholders funds, etc12,007.4
    All other liabilities2,437.6
            Total capital and liabilities14,445.0
Fixed tangible assets2,403.8
    All other assets12,041.2
            Total assets14,445.0
Ratios—$
    Value added per full-time equivalent persons engaged74,812.0
    Value added per $1,000 of salaries/wages paid2,179.1
    Total sales and other income per full-time equivalent persons449,560.8
    engaged—Percent
    Net profit per total sales and other income1.4
    Total salaries and wages per total sales and other income7.6
    Value added per total sales and other income16.6
    Shareholders funds per total capital and liabilities83.1
    Fixed assets per total assets16.6

22.4 Domestic trade and services

'Domestic trade' embraces retail and wholesale businesses, hotels and restaurants, and businesses providing household and personal services. Retail trade is one of the most telling barometers of economic activity, as it constitutes a large proportion of personal expenditure on consumer goods and services.

Street hawkers.

The major trends in the retail sector in the year ended March 1993 were:

  • Total actual retail sales increased by 7.6 percent to $31,287 million compared with $29,085.7 million in the year ended March 1992.

  • The most significant increases were recorded by restaurants and takeaways, up 17.1 percent; hardware stores, up 11.6 percent; and fuel and repair shops, up 10.1 percent.

  • Butchers and footwear stores were the only store types to record decreases in the level of sales in the year ended March 1993 over the year. Butchers recorded a 0.3 percent decrease, and footwear stores recorded a 3.1 percent annual decrease.

Retail trade survey

The department has introduced a revised sample of stores and made other technical changes to the Retail Trade Survey from the month of March 1990. In contrast to the previous survey sample which was based on a random sample of small geographical clusters and area units, the current sample has been drawn from Statistics New Zealand's Business Directory, a comprehensive and up-to-date list of all businesses in New Zealand.

Table 22.9. RETAIL TRADE SURVEY: SALES*

Store typeQuarter ended
Dec 1991Mar 1992Jun 1992Sep 1992Dec 1992Mar 1993Jun 1993

*Values given exclude GST.

    $(million)   
Butcher98.490.388.586.4103.293.694.6
Supermarket1,218.01,133.91,152.31,203.81,312.11,197.21,221.7
Other food536.6538.6493.6507.0568.1530.0495.6
Footwear69.163.369.557.169.267.880.4
Clothing and textiles376.9322.4375.3346.4389.0337.2386.8
Furniture177.3155.8168.8175.8188.2177.4179.6
Household appliances347.2304.1333.1330.2359.6311.3374.7
Hardware189.9171.6159.8160.4221.7189.8179.8
Chemist257.8238.6233.5243.4268.9246.4243.5
Department and general stores401.5292.5343.1314.4439.0321.9367.7
Restaurants and takeaways400.8411.3400.8422.5484.4467.8477.7
Liquor and accommodation785.8764.1664.3665.7844.1816.7719.8
Other stores761.0600.8551.6573.4818.8610.0616.4
Subtotal5,620.35,087.35,034.35,086.66,066.35,367.05,438.3
Automotive fuel and repairs934.6947.5957.9987.51,079.11,074.11,076.9
Automotive vehicle sales1,249.41,311.61,319.11,418.01,460.51,436.71,463.9
            All stores7,804.27,346.57,311.37,492.18,605.97,877.77,979.1

RETAIL TRADE
Total sales

Table 22.10. RETAIL TRADE SURVEY

Store typeStocks as at 31 March
198819891990199119921993
   $(million)   
Butcher10.410.410.89.16.27.2
Supermarket147.0158.6159.9169.4182.4186.2
Other food88.885.182.893.0101.4106.0
Footwear94.285.291.8100.892.693.2
Clothing and textiles312.9295.1291.5303.0275.7302.1
Furniture164.3169.5160.2136.1113.5118.8
Household appliances208.5179.4181.6180.6193.4182.4
Hardware116.3129.4128.7126.0137.0162.0
Chemist92.197.297.8108.1116.6118.1
Department stores256.2265.1271.5233.1260.1283.9
Restaurants and takeaways23.822.423.725.430.038.3
Liquor and accommodation126.5122.9129.6125.8117.8131.9
Other stores381.3412.7435.8478.6504.8533.3
Subtotal2,022.22,032.92,065.72,089.02,131.62,260.4
Automotive fuel and repairs119.7123.9132.4124.5144.8701.7
Automotive vehicle sales864.8784.1716.8627.7587.6142.5
            All stores3,006.72,940.92,915.02,841.22,864.03,104.7

Seasonal fluctuations and price and population changes. To allow 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 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: March quarter 1990 (=1000), so that application of the index to the original figures gives a series in constant March quarter, 1990 dollars.

Three graduates of the Dunedin-run Tops retailing course.

Table 22.11. RETAIL TRADE SEASONALLY ADJUSTED*

Quarter endedTotal sales turnoverSales per head of population
In current $In constant Mar qtr 1990 $In current $In constant Mar qtr 1990 $
As recordedSeasonally adjustedSeasonally adjustedAs recordedSeasonally adjustedSeasonally adjustedPercentage change†

*Values given exclude GST.

†Each quarter on previous quarter.

1991—Jun6,923.87,055.96,901.82,0252,0642,019-1.6
Sep7,011.27,119.16,950.42,0572,0892,040+1.0
Dec7,804.27,282.67,096.72,2722,1212,066+1.3
1992-Mar7,346.57,577.87,372.62,1372,2052,145+3.8
Jun7,311.37,477.67,226.32,1402,1882,115-1.4
Sep7,492.17,673.87,339.62,1872,2402,142+1.3
Dec8,605.98,017.97,621.52,4922,3222,207+3.0
1993-Mar7,877.78,068.87,634.52,2792,3342,2080.0
Jun7,979.18,234.87,755.72,3222,3972,257+2.2

Credit sales

Hire-purchase. Instalment credit trading in New Zealand has grown steadily since this type of credit was introduced in New Zealand. Consumer credit is provided either by retailers or finance companies. A major activity of the finance companies is the financing of motor vehicles on hire-purchase.

The Hire Purchase Act 1971 is the governing legislation in New Zealand. Regulations to control hire-purchase trade, including limits on minimum deposit and the maximum period of credit, were removed in September 1983.

The Credit Contracts Act 1981 reformed the law relating to the provision of credit under contracts of various kinds. Included in the Act are provisions which prevent oppressive contracts, and ensure the disclosure of the cost of credit on a uniform basis.

Credit card sales. A form of short-term credit trading which has grown rapidly during recent 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 four trading banks. The following table gives the value of sales by credit cards issued by registered banks, American Express and Diners Club. Credit cards were first introduced in New Zealand in 1981.

Table 22.12. VALUE OF CREDIT CARD SALES

Calendar yearTotal advances outstanding*Billings
N. Z. cardholders spending in New ZealandNZ. cardholders spending overseasTotal

*As at 31 December.

Source: Reserve Bank Bulletin.

  $(million)  
1987692.51,778.7433.12,211.8
1988790.12,050.7524.72,575.4
1989881.92,238.4571.52,809.9
1990951.12,549.9610.23,160.1
19911,027.8--3,446.5
19921,043.2--3,662.0

CREDIT CARD USE
Total advances outstanding

Contributors

  • 22.1 Ministry of Commerce; Consumers' Institute; Department of Labour; Department of Justice.

  • 22.2 Department of Justice; Ministry of Commerce; Securities Commission; New Zealand Stock Exchange; Statistics New Zealand.

  • 22.3 Insurance Council of New Zealand; Treasury; National Provident Fund; Statistics New Zealand.

  • 22.4 Statistics New Zealand.

Special articles

Insurance Council of New Zealand.

Further information

Controls on trading

Report of the Department of Labour (Parl paper G1).

Report of the Ministry of Commerce (Parl paper G46).

Report of the Licensing Control Commission (Parl paper E8).

Commercial framework

Current Issues in New Zealand Competition and Consumer Law. Commerce Commission, (Series).

Report of the Commerce Commission (Parl paper G34).

Report of the Department of Justice (Parl paper E5).

Report of the Securities Commission (Parl paper E25).

Report of the Law Commission (Parl paper E31F).

Report of the Serious Fraud Office (Parl paper E,40).

Insurance and superannuation

Economy Wide Census: Finance, Insurance and Business Services 1987. Department of Statistics.

Report of the Earthquake and War Damage Commission (Parl paper B11).

Report of the Government Life Insurance Corporation (Parl paper B22).

Report of the State Insurance Office (Parl paper B21).

Report of the Government Superannuation Board (Parl paper B20).

Annual Report of the Board of Trustees of the National Provident Fund.

Domestic trade and services

Key Statistics. Statistics New Zealand (monthly).

Reserve Bank Bulletin. Reserve Bank of New Zealand (quarterly).

Key statistics and information regarding the sharemarket in New Zealand are produced in daily, weekly, monthly and annual reports.

Closing down sale of Wellington department store.

Chapter 23. Overseas trade

Port of Wellington

New Zealand is heavily dependent on overseas trade. The 12-member European Community is New Zealand's largest export market, while Japan, Australia and the United States are the most important national markets for exports. Trade with Canada, the countries of East Asia, Russia and the Middle East has also become important. Over recent decades New Zealand has been moving away from dependence on dairy, meat and wool exports and exports from the forestry, horticulture, fishing and manufacturing industries have become significant.

23.1 Administration and development of trade

New Zealand Trade Development Board

The board's primary function is to foster the development and expansion of New Zealand's foreign exchange earnings.

The Trade Development Board works to increase New Zealand's foreign exchange earnings, not only from the direct export of commodities and manufactured goods, but also from such diverse activities as the sale to overseas buyers of New Zealand services, expertise and technology.

Its interests extend to encouraging expenditure in New Zealand by tourists and other visitors; the use of New Zealand educational facilities and services by foreign students; and the international marketing of New Zealand talents and skills in the arts and entertainment fields.

Other aspects of the board's activities include a programme of special export awards and commendations given to companies which are identified as outstanding foreign exchange earners.

The board maintains a network of trade commissioner and representative offices in cities serving more than 40 regions. These offices provide a range of services for exporters in New Zealand, from market research to special product promotions, as well as advising on such local requirements as customs, labelling, and health regulations.

Although mainly government-funded, the board earns some revenue from exporters who contract services.

Customs and excise

Tariff of New Zealand. The New Zealand tariff is based on the international Harmonized Commodity Description and Coding System (Harmonized system). The advantages of the Harmonised system include its widespread use by other countries, among them New Zealand's major trading partners, its convenience for statistical purposes, and greater efficiency in administering duties at the border.

The tariff has a major role in assistance to industry and is the administrative basis on which New Zealand operates its customs controls and collects duty. The Tariff of New Zealand is a manual which contains a comprehensive, itemised list of every type of good that might possibly be imported. The structure of the list breaks commodities down into broad categories, which are then further refined into very specific, detailed classifications of goods. Against each item the tariff indicates the appropriate duty payable on that class of good depending on their country of origin. A range of goods obtain preferential rates of duty when they originate in certain countries, eg, Australia, Canada or least-developed countries. The various types of duty used in the tariff include ad valorem duties (a straight percentage of the value for duty of the goods), specific duties (set at a fixed sum of money for a given quantity irrespective of value), or combinations of the two, and concessionary duties (including duty free items, such as travellers' baggage concessions). Ad valorem duties range from duty free to 42 percent. Items whose manufacture is outside the scope of local industry are normally duty free. There is limited use of specific duties in the tariff. The trend of policy is in favour of ad valorem duties.

The following extract from the tariff gives an example of an ad valorem duty:

NumberStatistical KeyGoods Rates of Duty        
 Code Unit Normal
Tariff
Preferential
Tariff
63.06 Tarpaulins, awnings and sunblinds; tents;
sails for boats, sailboards or landcraft;
camping goods:
  
  -Tarpaulins, awnings and sunblinds:  
6306.11.0000L-Of cotton21AU Free
   7/94 19CA Free
   7/95 17LDC 17
   7/96 147/94 15
    7/95 13.5
    7/96 11
    LLDC Free
    Pac Free

The left hand columns give identification and statistical codes for the category and subcategory of goods in the example, the middle column gives the relevant description, and the two right hand columns give the normal and preferential rates of duty. For the specific item, cotton tarpaulins, the standard duty is 21 percent of value progressively phasing in subsequent years as shown. These goods are duty free if they originate in Australia. Canada, least-developed countries, or Pacific Forum countries, and there is a preferential duty of 17 percent if they originate in a less developed country. The tariff of New Zealand, as well as protecting local industry, has trade policy and development assistance objectives, and is a way of meeting obligations under international trade agreements as well as encouraging trade with developing countries.

Excise. Alcoholic beverages (including beer, wine and spirits) tobacco products and some petroleum products are subject to excise duty. Excise duty is a tax on the manufacture and removal of selected goods from licensed manufacturing areas (which are licensed under the Customs legislation). An excise duty equivalent is also paid on imported goods of a like kind. See chapter 26, Public sector finance, for information on customs and excise revenue.

GST on imported goods. All goods imported into New Zealand are liable for goods and services tax (GST). The tax is normally payable to the Customs Department at the time of importation. The tax rate effective from 1 July 1989 is 12.5 percent.

Customs Department border operations

The department's border operations provide protection at the border by controlling the import and export of goods and managing the movement of international passengers, aircraft, and vessels in accord with customs, immigration, quarantine, and other statutory requirements.

Three main activities are involved in border operations: surveillance at New Zealand's airports; the collection and processing of intelligence on potential breaches of the legislation the Customs Department has a responsibility to enforce; and the protection of air, sea and postal borders against the entry of prohibited persons, illicit drugs and other contraband goods.

Overseas trade statistics

New Zealand overseas merchandise trade statistics measure the value and quantity of New Zealand's merchandise exports to and imports from other countries. The statistics are compiled monthly and based on entries lodged with the Customs Department by exporters and importers or their agents.

Exports are all material goods which leave New Zealand for other countries and are valued ‘fob’ (free on board). The fob value is the market value of the goods at the New Zealand port of loading. It includes all value added in bringing the goods to the port of loading but excludes international freight and associated insurance.

Imports are all material goods which enter New Zealand from abroad and are valued ‘cif’ (cost, insurance, freight) and ‘vfd’ (value for duty). The cif value is the market value of the goods at the New Zealand port of unloading. It includes the value added for cost of international freight and associated insurance. The imports vfd value is the value assessed for duty. It is a close approximation of the fob value at the overseas port of loading. Unless otherwise stated, all imports value quoted in this chapter are the cif value.

Minister of Customs gifting flowers to celebrate International Customs Day.

Balance of merchandise trade

An important analytical result of New Zealand overseas trade is the ‘balance of merchandise trade’. This is calculated by deducting the import value from the export value for the same period of time. An excess of exports over imports is a ‘surplus’ and is normally indicated by a positive number. Conversely, a ‘deficit’ occurs when imports exceed export and is normally indicated by a negative sign.

In the June 1993 year, New Zealand achieved a balance of merchandise trade surplus of $1,673.4 million, compared to the $2,407.2 million surplus for 1992. The lower surplus is due to an 11.9 percent rise in imports value which was partially offset by a 6.2 percent rise in exports value.

OVERSEAS MERCHANDISE TRADE

Table 23.1. OVERSEAS MERCHANDISE TRADE

Year ended JuneExports(fob)Imports (cif)Balance of merchandise trade
  $(million) 
19837,935.47,595.8+339.6
19848,623.99,020.1-396.2
198511,315.812,472.6-1,156.8
198610,571.711,467.0-895.2
198712,107.211,800.2+307.0
198812,451.511,606.5+845.0
198914,905.412,491.4+2,413.9
199015,163.515,770.5-607.0
199115,768.415,325.1+443.3
199217,890.615,483.4+2,407.2
199319,006.217,332.8+1,673.4

23.2 Exports

Exports can be New Zealand produce exports or re-exports. Re-exports are goods which were imported into New Zealand and then exported later without being significantly altered. Typical re-exports are aircrafts and heavy machinery.

New Zealand produce exports are exports not classified as re-exports. In this chapter, the exports statistics used include both New Zealand produce exports and re-exports.

Exports in the June 1993 year totalled $19,006.2 million, 6.2 percent higher than the June 1992 year. The major commodities exported reflect New Zealand's continued reliance on primary products, such as meat and edible offal, dairy products, fish, crustaceans and molluscs, fruit and nuts, collectively made up 39.8 percent of all exports.

Table 23.2. MAJOR COMMODITIES EXPORTED*

CommodityValue of exports† (fob)Percentage of total exports† (fob)
199119921993199119921993

*Year ended June.

†Include re-exports.

  $(million)    
Meat and edible meat offal2,588.33,002.23,057.516.416.816.1
Dairy produce; birds' eggs; natural honey; edible products of animal origin nei2,014.92,377.32,666.312.813.314.0
Wood and articles of wood; wood charcoal798.6976.71,487.85.15.57.8
Fish and crustaceans, molluscs and other aquatic invertebrates748.41,077.71,073.44.76.05.6
Wool, fine or coarse animal hair; horsehair yarn and woven fabric cotton1,051.31,179.9992.66.76.65.2
Fruit and nuts, edible; peel of citrus fruit or melons791.8904.9780.55.05.14.1
Aluminium and articles thereof779.8695.1662.44.93.93.5
Mechanical machinery and parts577.7550.7655.33.73.13.4
Albuminoidal substances; modified starches; glues; enzymes465.7509.3595.83.02.83.1
Raw hides and skins (other than furskins) and leather559.5554.7581.43.53.13.1
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes576.5501.3486.73.72.82.6
Paper and paperboard; articles of paper or paperboard368.2429.1436.02.32.42.3
Electrical machinery and equipment and parts; sound recorders and reproducers, television image and sound recorders263.6314.2392.71.71.82.1
Pulp of wood or other fibrous cellulosic material398.0385.9361.12.52.21.9
Iron and steel334.3314.6306.32.11.81.6
Natural or cultured pearls, precious, semi-precious stones, precious metals, imitation jewellery; coin119.5203.7288.80.81.11.5
Works of art; collectors; pieces and antiques.325.6312.3276.32.11.71.5
Animal originated products, nei208.8285.5263.51.31.61.4
Vegetables and certain roots and tubers; edible195.8262.3246.31.21.51.3
Plastics and articles thereof138.2169.9219.70.90.91.2
Others nei 2,464.02,883.43,176.115.616.7
            Total exports15,768.417,890.619,006.2100.0100.0100.0

MAJOR COMMODITIES EXPORTED

Meat and edible offal

In the June 1993 year exports of meat and edible offal were $3,057.5 million, 16.1 percent of total exports. Since the June 1990 year beef and sheep exports have increased by 30.0 percent and 27.0 percent respectively, contributing to the 31.9 percent growth in meat and edible offal exports.

Table 23.3. MEAT AND EDIBLE OFFAL EXPORTS*†

Product1990199119921993

*Fresh, chilled or frozen.

† Year ended June.

  $(million)  
Beef1,091.61,283.81,450.81,418.7
Sheep1,093.51,149.61,347.81,389.0
Goat4.54.95.55.3
Offal120.9139.2189.1234.4
Other8.110.89.010.1
            Total meat and edible offal exports2,318.62,588.33,002.23,057.5
Percentage contribution to total exports15.316.416.816.1

New Zealand still relies heavily on its traditional markets in Europe and the United States of America for its meat exports, with increases in exports of 45 percent and 22 percent respectively since 1990. Other important markets for New Zealand meat and edible offal exports are Canada and Asia. In the last four years, exports to Asia and Canada have both increased by 33.8 percent.

In the June 1993 year, exports of meat and edible offal to the European Community (EC) valued $1,050.2 million, making it New Zealand's top customer. Of these, the United Kingdom took $444.2 million, Germany, $213.8 million and France, $137.4 million. These three countries collectively accounted for 75.7 percent of all meat and edible offal exports to the EC.

In the same period, exports of meat and edible offal to the United States of America and Asia totalled $965.7 million and $419.9 million respectively. Almost 83.7 percent of all meat and edible offal exported to Asia went to Japan ($178.9 million), Taiwan ($74.4 million), Republic of Korea ($55.2 million) and Hong Kong ($43.0 million).

MEAT PRODUCE
Export destinations

Table 23.4. DESTINATION OF MEAT AND EDIBLE OFFAL EXPORTS*

Destination1990199119921993

*Year ended June.

  $(million)  
Asia313.6370.9389.9419.9
European Community723.0789.3929.21,050.2
United States793.3923.31,067.8966.0
Canada138.2143.0147.3184.9
Other350.5361.8468.0436.5
            Total meat and offal exports2,318.62,588.33,002.23,057.5

Dairy produce

In the June 1993 year, New Zealand exported $3,179.7 million worth of dairy products, an increase from the $2,814.0 million exported in the June 1992 year.

The major types of dairy products exported are milk and cream, butter, casein and caseinates and cheese. Exports of these have increased since 1990, with milk and cream rising by $343.5 million, cheese by $157.0 million and casein and caseinates by $74.4 million.

Table 23.5. DAIRY PRODUCE EXPORTS*

Product1990199119921993

*Year ended June.

  $(million)  
Casein and caseinates448.5411.9443.8522.9
Milk and cream947.41,047.91,182.51,290.9
Buttermilk and yoghurt50.950.263.661.9
Whey and other products12.710.110.49.4
Butter710.5542.1701.6796.5
Cheese341.1358.0412.1498.0
            Total dairy produce exports2,511.12,420.22,814.03,179.7
Percentage contribution to total exports16.615.315.716.7

New Zealand has concentrated on diversifying export markets for dairy produce. New Zealand now supplies a variety of countries with dairy products including Algeria, Germany, Malaysia, Mexico, Japan, the Philippines and Taiwan. However, the United Kingdom and the United States of America remain New Zealand's top export markets for dairy produce, but the share of dairy produce destined for these two countries has reduced from 26.4 percent in 1990 to 20.5 percent in 1993.

DAIRY PRODUCE EXPORTS

Table 23.6. DESTINATION OF DAIRY PRODUCE EXPORTS*

Country of destination1990199119921993

*Year ended June.

  $(million)  
Algeria82.1173.974.4146.6
Argentina--70.724.1
Australia64.568.287.098.8
Belgium1.26.831.527.3
Canada18.613.313.321.2
Chile15.69.717.323.7
Dominican Republic20.07.113.321.5
Egypt2.07.121.134.8
El Salvador7.05.710.929.1
Germany84.982.175.1112.0
Indonesia33.447.352.053.1
Iran58.134.016.549.1
Jamaica21.414.012.920.1
Japan205.5216.5286.9272.5
Republic of Korea25.625.332.938.9
Kuwait22.43.38.521.5
Malaysia155.0162.8203.7217.5
Mexico241.3114.1155.8197.9
Morocco-4.128.526.7
Netherlands23.520.512.532.4
Peru49.436.843.059.2
Philippines111.479.2101.1163.2
Russia161.598.458.992.0
Saudi Arabia46.061.961.570.8
Singapore37.641.247.753.5
Sri Lanka36.833.547.956.2
Taiwan63.967.3101.2134.0
Thailand56.060.160.676.9
United Kingdom353.5274.1376.7381.5
United States of America310.6266.3288.8269.5
Venezuela0.186.790.681.0
Other202.3309.6370.1273.1
            Total exports of dairy products2,511.12,420.22,814.03,179.7
Percentage contribution to total exports16.615.315.716.7

Forestry products

Forestry products exported in the June 1993 year rose to $2,284.8 million compared with $1,791.6 million in the 1992 trade year. The increase is mainly due to the escalation of export values of wood and wood articles, a result of the international shortage of wood similar to ‘radiata pines’. In the June 1993 year, exports of wood and wood articles were $1,487.8 million, 52.3 percent higher than the $976.7 million exported in the June 1992 year.

Of the total wood and wood articles exported in the June 1993 year, 79.3 percent went to Japan, Republic of Korea and Australia collectively. These are the main markets but exports to China and Taiwan have grown significantly in the last two years. Since 1991, exports to China have nearly trebled while Taiwan more than doubled its intake.

Besides wood and wood articles, other main forestry products exported are wood pulp, paper, and paperboard. Since 1990, wood pulp exports has dropped slightly while exports of paper and paperboard has a marginally increased.

Table 23.7. FORESTRY PRODUCT EXPORTS*

Product1990199119921993

*Year ended June.

  $(million)  
Wood pulp, etc396.7398.0385.9361.1
Paper and paperboard355.8368.2429.1436.0
Wood (rough)210.3338.1377.4702.2
Sawn or chipped wood175.1208.9275.2400.0
Fibreboard109.7128.1162.6193.2
Other117.9123.5161.4192.3
            Total forestry product exports1,365.51,564.81,791.62,284.8
Percentage contribution to total exports9.09.910.012.0

FORESTRY PRODUCT EXPORTS

Table 23.8. DESTINATION OF FORESTRY PRODUCT EXPORTS*

Country of destination1990199119921993

*Year ended June.

  $(million)  
Australia218.0231.9294.0351.1
China9.526.720.376.6
Hong Kong2.75.411.216.0
Japan229.4326.3359.5527.5
Republic of Korea78.1121.1159.5300.8
Singapore9.612.017.617.9
Taiwan32.036.954.881.6
United States7.15.722.465.4
Other26.532.637.450.9
            Total forestry products612.9798.6976.71,487.8
Percentage contribution to total exports4.05.15.57.8

Fish, crustaceans and molluscs

Exports of fresh, frozen and chilled fish, crustaceans and molluscs were $706.3 million in 1990, $1,077.7 million in 1992 and falling slightly in 1993 to $1,073.4 million. In 1993, exports of fish rose but the exports of crustaceans and molluscs fell—partly as a result of the shellfish export ban in late 1992 and early 1993 when an algae bloom was discovered in bivalve shellfish. The ban covered oysters, mussels, scallops, paua, kina and crabs.

Exports of both preserved and prepared fish, crustaceans and molluscs increased to $84.2 million in 1993 when compared with $62.5 million in the previous year.

Table 23.9. FISH, CRUSTACEAN AND MOLLUSC EXPORTS*

Product1990199119921993

*Year ended June.

Fresh, chilled or frozen $(million)  
Orange roughy163.3136.1163.0181.8
Snapper49.646.364.161.5
Hoki43.792.5208.0170.7
Surimi50.223.836.843.4
Crustaceans84.987.6118.0114.8
Molluscs108.4112.9155.5140.6
Other fish218.7249.4338.3381.1
            Total fresh, chilled and frozen706.3748.41,077.71,073.4
Preserved and prepared
Fish10.216.626.936.1
Crustaceans and molluscs17.124.835.648.1
            Total preserved and prepared27.341.562.584.2
            Total fish, crustacean and mollusc exports733.5789.91,140.21,157.6
Percentage contribution to total exports4.85.06.46.1

Japan and the United States of America are the main markets for fresh and frozen fish, crustaceans and molluscs, buying 60.8 percent of these exports in 1993, however exports to Australia, Taiwan, Thailand and Spain have grown in recent years.

Table 23.10. DESTINATION OF FISH, CRUSTACEAN AND MOLLUSC EXPORTS

Destination1990199119921993
  $(million)  
Japan287.9261.4364.6365.6
United States of America224.6218.4298.9294.7
Australia77.392.7111.7121.6
Taiwan5.15.415.327.5
Thailand5.313.423.026.0
Spain5.210.720.721.5
United Kingdom6.919.526.918.2
Other121.2168.4279.1282.5
            Total exports of fish, crustaceans and mollusc733.5789.91,140.21,157.6

Wool

Exports of wool (not carded or combed) have declined. In the June 1993 year wool exports were $900.8 million (4.7 percent of total exports), compared with $1081.4 million (6.0 percent of total exports) in 1992. Exports to traditional markets such as Germany, Japan, United Kingdom and the United States have all declined.

Table 23.11. DESTINATION OF WOOL EXPORTS*

Country of destination1990199119921993

*Year ended June.

  $(million)  
China99.490.6222.7186.9
Nepal37.639.374.983.1
Japan155.8129.697.374.9
Italy48.152.643.841.5
United Kingdom97.580.281.771.3
Belgium104.669.386.662.5
Germany96.071.473.555.8
Hong Kong20.013.644.546.4
India53.874.643.344.6
USA69.039.344.342.3
Australia59.344.040.837.0
Turkey14.718.225.027.3
Republic of Korea23.228.915.35.3
Russia167.938.421.90
Other269.0172.6165.8121.9
            Total wool exports1,315.9962.61,081.4900.8
Percentage contribution to total exports8.76.16.04.7

Fruit and nuts

In the June 1993 year exports of fruit and nuts were $780.5 million, lower than both the 1991 and 1992 June years when exports were $791.8 million and $904.9 million respectively.

Table 23.12. FRUIT AND NUT EXPORTS*

Product1990199119921993

*Year ended June.

  $(million)  
Kiwifruit474.9437.7506.1370.0
Apples212.6297.3325.9342.2
Berries8.77.710.710.2
Pears5.67.99.37.2
Nuts0.20.10.30.4
Other (including dried and preserved)34.541.152.650.5
            Total fruit and nut exports736.5791.8904.9780.5
Percentage contribution to total exports4.95.05.14.1

In the June 1992 year kiwifruit accounted for 55.9 percent of all fruit and nuts exported. The value of kiwifruit declined in 1993 reflecting the fall in international prices for kiwifruit in late 1992 and now accounts for 47.4 percent of total fruit and nuts exported.

The other major fruit exported is apples, about 43.8 percent of total fruit and nuts exported. The main types of apples exported in the June 1993 year were Braeburn ($102.5 million), Royal Gala ($79.0 million), Red Delicious ($45.8 million) and Granny Smiths ($38.2 million).

In some cases, fruit leaves a New Zealand port without being sold. They are classified as ‘Destination unknown’ to either the European Community or other countries.

Apples for export.

Table 23.13. DESTINATION OF FRUIT AND NUT EXPORTS*

Country of destination1990199119921993

*Year ended June.

  $(million)  
Japan165.3140.2159.7148.9
United Kingdom61.381.596.794.2
United States of America90.4103.3116.674.2
Australia35.741.848.240.9
Singapore7.810.914.717.8
Hong Kong5.97.010.715.8
Taiwan5.58.811.714.9
Destination unknown—EC326.8333.4353.2306.8
Other37.864.993.467.0
            Total fruit and nut exports736.5791.8904.9780.5

23.3 Imports

In this chapter imports are valued at cif (cost including insurance and freight) which is the cost of buying the goods and bringing them to a New Zealand port.

Statistics on imports valued at vfd (value of duty) are also available. This is the value used to assess customs duty and equates approximately with the fob (free on board) cost of the goods in the exporting country.

Imports are valued in New Zealand dollars. Foreign currency values are converted to New Zealand dollars at the time an import entry is lodged with the Customs Department. The exchange rate used for the conversion is set on a two-weekly basis.

Total imports for the June 1993 year were $17,332.8 million compared with $15,483.4 million for 1992.

Table 23.14. MAJOR COMMODITIES IMPORTED*

CommodityValue of imports† (cif)Percentage of total imports† (cif)
199119921993199119921993

*Year ended June.

†Include re-imports.

  $(millions)    
Mechanical machinery, equipment and parts2,159.62,119.12,506.714.113.714.5
Vehicles; other than railway or tramway rolling stock, and parts and accessories1,511.11,515.81,797.69.99.810.4
Electrical machinery and equipment and parts; sound recorders and reproducers, television image and sound recorders1,826.71,527.61,663.011.99.99.6
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes1,276.81,093.51,176.18.37.16.8
Plastics and articles632.2682.3807.44.14.44.7
Aircraft, spacecraft and parts634.3549.6618.54.13.53.6
Optical, photographic, cinematographic, measuring, checking, medical or surgical instruments and apparatus485.7492.0568.43.23.23.3
Paper and paperboard; articles of paper or paperboard373.5440.9548.32.42.83.2
Pharmaceutical products399.9445.7500.82.62.92.9
Inorganic chemicals; organic and inorganic compounds of precious metals; of rare earth metals, of radioactive elements and isotopes420.5442.2363.52.72.92.1
Iron and steel256.9267.3325.81.71.71.9
Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans271.2291.6316.51.81.91.8
Organic chemicals210.7229.6252.01.41.51.5
Rubber and articles188.0198.9245.61.21.31.4
Iron or steel articles238.7312.6243.91.62.01.4
Chemical products nes189.4218.2233.61.21.41.3
Toys, games and sports requisites; parts and accessories133.1151.4183.80.91.01.1
Aluminium and articles178.5180.9179.81.21.21.0
Apparel and clothing accessories; not knitted or crocheted128.2140.6175.80.80.91.0
Apparel and clothing accessories; knitted or crocheted108.1138.4169.00.70.91.0
Others nei3,702.24,045.24,457.724.226.125.7
            Total imports15,325.115,483.417,332.7100.0100.0100.0

MAJOR COMMODITIES IMPORTED

Mechanical and electrical machinery

Imports of mechanical and electrical machinery were $4,169.8 million in the June 1993 year, up 14.3 percent from the previous year. The main types of machinery imported in 1993 were computers ($487.2 million), parts and accessories ($246.6 million), telephone and communication equipment ($213.0 million) and turbo jets and propellers ($147.8 million).

The United States of America is the largest supplier of machinery to New Zealand providing $1,137.5 million in the June 1993 year, an increase of 19.9 percent from the $949.1 million for 1992.

Table 23.15. MAJOR SUPPLIERS OF MECHANICAL AND ELECTRICAL MACHINERY

Year ended June1990199119921993
  $(million)  
United States of America945.4894.3949.11,137.5
Japan771.2726.7668.5728.2
Australia443.0458.9451.1482.0
United Kingdom324.7278.3248.1293.1
Germany224.4268.4199.1231.9
Taiwan130.2122.8147.3184.5
Other865.31,236.91,019.51,112.6
            Total imports of electrical and mechanical machinery3,704.23,986.33,646.74,169.8
Percentage contribution to total imports23.526.023.624.1

Vehicles

In the June 1993 year, 94,460 vehicles were imported into New Zealand compared to 96,340 in 1992. However, the value of the vehicles imported rose from $932.6 million in 1992 to $1,080.0 million in 1993.

Japan is the major supplier of vehicles. In 1993 imports of vehicles from Japan were 78,467 slightly down on the 81,443 imported in 1992. The value increased to $726.3 million in 1993, from $623.8 million in 1992.

The number of unassembled new vehicles imported rose in 1993 to 31,331 with a value of $442.1 million. On the other hand, less new and used assembled vehicles were imported in 1993 (63,129) valued at $638.0 million.

Table 23.16. VEHICLE IMPORTS*

 19921993
 $(million)Quantity$(million)Quantity

*Year ended June.

Imports/vehicles
Unassembled—new333.929,277442.131,331
Assembled—new408.721,174434.919,673
Assembled—used190.145,889203.043,456
            Total unassembled and assembled932.696 3401,080.094 460
Vehicle imports from Japan
Unassembled new293.927,01640029,048
Assembled155.19,564137.36,895
Used174.844,86318942,524
            Total imports from Japan623.881 443726.378 467

Mineral fuels

In 1993 imports of mineral fuels were $1,176.1 million, 7.6 percent higher than in 1992, this accounted for 6.8 percent of total imports. Crude petroleum oils makes up 73.2 percent of all mineral fuels imported with non-crude oils 22.6 percent.

Table 23.17. MINERAL FUEL IMPORTS*

Commodity1990199119921993

*Year ended June.

  $(million)  
Crude petroleum oils748.0954.9801.0860.7
Non-crude petroleum oils184.1256.3237.5266.3
Petroleum coke, bitumen and residues37.539.629.623.6
Other25.226.025.425.5
            Total mineral fuel imports994.81,276.81,093.51,176.1
Percentage contribution to total imports6.38.37.16.8

Saudi Arabia supplied 44.7 percent of crude petroleum imports in the June 1993 year and the United Arab Emirates, 29.3 percent. Australia was the major supplier of non-crude mineral fuels, providing $196.2 million in 1993, 73.7 percent of these imports.

Table 23.18. MINERAL FUEL SUPPLIERS, 1993*

CountryCrude petroleumNon-crude petroleumOtherTotal

*Year ended June.

  $(million)  
Saudi Arabia384.5--384.5
Australia60.3196.23.6260.2
United Arab Emirates252.1252.1
Other163.870.145.5279.3
            Total mineral fuel imports860.7266.349.11,176.1

Plastic and plastic articles

In the June 1993 year New Zealand imported $807.4 million of plastics and articles compared with $682.3 million in the previous year. A range of plastic products, including plastics in primary forms were imported.

The two main suppliers of plastics are Australia and the United States, who collectively supplied 47.8 percent of plastic imports in 1993. In the past few years the United States of America has been the major supplier but in 1993 was surpassed by Australia.

Table 23.19. PLASTIC AND PLASTIC ARTICLE IMPORTS*

Country1990199119921993

*Year ended June.

  $(million)  
Australia146.2144.4164.5198.3
United States of America167.8165.3167.4187.8
Japan65.360.266.672.4
Germany35.732.539.849.1
United Kingdom43.544.344.147.4
Taiwan27.829.634.745.5
Republic of Korea11.210.018.926.8
Canada22.521.620.820.8
Netherlands20.916.514.120.2
Other140.0137.4115.2184.6
            Total plastics and plastic article imports653.0632.2682.3807.4
Percentage contribution to total imports4.14.14.44.7

Tug tows ‘Spirit of Competition’ into Wellington harbour after an engine breakdown.

23.4 Major trading partners

New Zealand's pattern of overseas trade reflects the country's efforts over the last two decades to diversify both its markets and its range of products. Although Australia, the European Community (EC), Asia and the United States of America still account for the majority of New Zealand's overseas trade, important trade links have been developed with other nations in Latin America, the Middle East and Eastern Europe.

Exports to Asia (including Japan) now account for nearly 34.8 percent of all New Zealand's exports, and imports from Asia made up 29.3 percent of New Zealand's imports.

Table 23.20. TRADE BY GEOGRAPHICAL REGION AND COUNTRY*

CountryExports (fob)†Imports (cif)
199119921993199119921993

*Year ended June.

†Include re-exports.

   $(million)   
Africa—
Botswana0.90.91.9..0.10.1
Cameroon, Republic of......0.2..-
Congo-..0.3......
Cote d'Ivoire....0.9..0.10.1
Ethiopia0.5..1.0....0.1
Gabon0.1-----
Gambia..0.1........
Ghana1.10.11.31.20.50.4
Kenya1.90.60.52.02.02.6
Madagascar....0.10.10.10.1
Malawi2.20.81.42.73.93.4
Mauritius27.232.228.70.60.70.8
Mozambique3.80.30.2......
Namibia..........0.2
Niger0.1..........
Nigeria0.42.74.9......
Reunion3.92.94.6---
Sao Tome and Principe0.1..0.1---
Senegal..0.41.7--..
Seychelles0.10.10.2......
Sierra Leone0.1..........
Somalia-..0.3....-
South Africa17.027.937.512.419.726.1
St Helena-----..
Swaziland0.20.2..9.21.00.6
Tanzania, United Rep. of0.70.53.21.31.10.6
Togo0.1-----
Uganda....0.2--..
Zaire......--0.1
Zambia0.10.10.20.5....
Zimbabwe1.00.61.14.64.05.5
            Total61.670.690.434.733.240.5
Percentage total exports/imports0.40.40.50.20.20.2
Asia—
Afghanistan......0.20.20.3
Bangladesh4.05.710.55.96.19.9
Bhutan......---
Brunei Darussalam1.06.55.328.8....
Cambodia-..1.8......
China, Peoples Republic of186.1361.5368.1217.5354.1506.7
Hong Kong240.7363.2413.3183.9207.7231.2
India127.097.4139.146.558.881.4
Indonesia166.7232.8246.5107.987.0125.0
Japan2,611.12,738.62,799.82,337.22,375.12,652.6
Korea, Democratic Peoples Republic-..0.3......
Korea, Republic of718.9767.5857.7246.3242.9280.1
Lao, Peoples Democratic Republic....0.8--..
Macau1.60.32.63.12.92.2
Malaysia394.5470.5382.6144.4151.0238.5
Maldives0.40.31.0......
Mongolia0.1--......
Myanmar (formerly Burma)0.60.2..0.40.10.1
Nepal40.775.283.90.10.10.3
Pakistan23.825.126.529.840.549.0
Philippines115.7135.9205.321.924.134.9
Singapore226.4286.7289.9218.6357.2238.5
Sri Lanka36.652.463.99.410.811.6
Taiwan315.7431.5488.3384.7428.6483.1
Thailand149.3177.0208.593.1116.4135.7
Viet Nam2.57.212.50.61.01.5
            Total5,363.56,235.56,608.04,080.34,464.65,082.7
Percentage total exports/imports34.034.934.826.628.829.3
Western Europe—
Austria14.311.313.645.043.855.6
Belarus-----0.6
Belgium166.4237.7224.890.8105.6108.1
Cyprus2.44.86.10.10.1..
Denmark28.334.731.370.776.287.4
EC (country unknown)333.4353.3307.3---
Faeroe Islands-0.30.7......
Finland8.39.19.259.644.284.6
France167.8217.3221.6334.7270.3305.5
Germany, Federal Republic of372.1415.4488.8695.0639.3728.9
Gibraltar0.30.30.30.10.10.6
Greece80.776.968.45.13.76.6
Iceland0.90.20.20.20.30.3
Ireland12.316.223.049.344.184.2
Italy252.7213.7200.3357.0351.3389.1
Liechtenstein......0.1..0.2
Luxembourg0.20.3..3.76.613.9
Malta5.73.54.50.20.10.1
Monaco......0.30.10.2
Netherlands157.293.092.8170.8169.0195.7
Norway5.16.36.6113.6102.269.7
Portugal37.244.938.815.922.619.2
Spain70.598.668.246.149.657.1
Sweden55.248.646.1545.8187.2232.9
Switzerland52.451.267.5182.6162.5192.1
Turkey39.552.585.39.812.710.3
United Kingdom1,024.21,165.11,216.81,069.6938.51,061.4
Vatican City State---..0.1..
            Total2,887.13,155.03,221.43,866.13,230.23,704.2
Percentage total exports/imports18.317.616.925.220.921.4
Eastern Europe—
Albania0.1--......
Bulgaria0.60.40.40.60.40.3
Croatia-..0.1--0.3
Czech Republic-..0.9--4.5
Czechoslovakia6.42.41.24.77.14.0
German Democratic Republic---0.9..-
Hungary1.41.11.22.73.33.3
Poland1.72.42.72.33.75.5
Romania0.10.2..1.31.11.5
Russia-..107.6--5.7
Slovakia, Slovak Republic-..0.1---
Slovenia-....--1.5
Turkmenistan-----0.1
USSR182.399.5..7.44.1..
Ukraine-..0.5--6.0
Uzbekistan-..2.2---
Yugoslavia1.70.10.24.03.31.4
            Total194.3106.1117.223.723.034.3
Percentage total exports/imports1.20.60.60.20.10.2
Latin America and Caribbean—
Antigua and Barbuda0.30.30.3---
Argentina3.288.164.515.121.320.8
Aruba..0.10.1---
Bahamas1.32.02.51.61.30.8
Barbados11.813.311.4....0.1
Belize1.01.40.3......
Bermuda4.83.94.90.30.30.2
Bolivia0.10.10.5....0.1
Brazil25.318.4111.964.467.068.8
Cayman Islands---0.70.1..
Chile19.630.538.318.811.610.5
Colombia2.84.57.41.13.04.1
Costa Rica0.10.30.10.40.40.3
Cuba69.079.813.3..31.39.0
Dominica..0.2....0.1..
Dominican Republic7.113.321.5..0.1..
Ecuador0.60.90.448.653.135.5
El Salvador5.811.029.20.10.1..
Falkland Islands (Malvinas)0.10.1........
French Guiana0.40.70.6---
Grenada1.61.61.4---
Guadeloupe5.87.47.0---
Guatemala3.41.82.90.10.30.8
Guyana1.11.43.31.91.11.5
Haiti1.9..0.1......
Honduras2.21.70.10.20.50.5
Jamaica16.314.322.25.95.55.7
Martinique5.05.95.8---
Mexico130.2188.0246.721.013.415.9
Montserrat-..0.1---
Nicaragua2.20.8....0.1..
Panama8.910.813.6..6.624.4
Paraguay0.20.10.3......
Peru37.443.560.13.53.59.7
Puerto Rico5.63.35.318.520.720.6
St Kitts-Nevis0.10.10.1---
St Lucia0.91.11.4---
St Vincent and Grenadines..0.1........
Trinidad and Tobago14.313.918.00.20.20.1
Turks and Caicos Islands-....---
US Virgin Islands0.80.60.2..0.1..
Uruguay0.41.02.2..0.20.1
Venezuela86.991.281.50.61.31.0
            Total478.8657.7779.3203.1242.9230.7
Percentage total exports/imports3.03.74.11.31.61.3
Middle East—
Algeria173.978.7146.6---
Bahrain11.515.712.90.31.53.2
Egypt14.929.748.02.53.67.0
Iran (Islamic Republic of)114.5183.8131.61.818.130.3
Iraq5.10.3..---
Israel2.21.92.426.440.943.7
Jordan56.536.747.60.91.06.2
Kuwait3.413.226.6---
Lebanon2.30.81.5......
Libyan Arab Republic10.44.62.7---
Morocco5.332.128.524.224.928.5
Oman18.714.017.197.99.722.5
Qatar3.54.84.40.70.51.3
Saudi Arabia181.2205.7227.9531.8507.9397.5
Sudan-1.3........
Syrian Arab Republic0.85.417.7---
Tunisia1.010.94.0..0.1..
United Arab Emirates35.842.445.0193.3183.5252.2
Yemen19.821.618.2---
            Total660.8703.5782.5879.9791.6792.5
Percentage total exports/imports4.23.94.15.75.14.6
North America—
Canada232.1268.1312.4276.3262.2267.5
United States of America2,047.22,295.22,257.62,609.52,808.03,198.8
            Total2,279.32,563.32,570.02,885.93,070.23,466.3
Percentage total exports/imports14.514.313.518.819.820.0
Oceania—
American Samoa26.430.729.5....0.1
Australia2,937.43,387.83,781.03,117.23,426.73,747.3
Cook Islands30.841.146.24.23.02.8
Fiji195.2178.5220.880.867.050.1
French Polynesia75.3100.6100.80.20.50.4
Guam13.320.513.2......
Kiribati3.84.33.3......
Marshall Islands1.63.62.1....0.1
Micronesia0.10.40.4......
Nauru3.28.117.421.235.940.6
Netherlands Antilles1.01.02.4---
New Caledonia43.154.473.30.30.20.1
Niue7.76.05.0....0.4
Norfolk Island6.68.67.9......
Northern Mariana Islands1.13.12.1......
Palau..0.10.2---
Papua New Guinea76.497.597.58.87.040.7
Pitcairn0.10.20.4......
Samoa50.488.397.68.46.69.6
Solomon Islands12.114.216.71.11.21.2
Tokelau..0.10.1......
Tonga27.030.632.23.32.51.6
Tuvalu0.81.10.9......
US Minor Outlying Island0.1-----
Vanuatu11.711.112.90.10.10.2
Wallis and Futuna Islands3.04.25.8---
            Total3,528.14,096.24,569.53,245.73,550.83,895.2
Percentage of total exports/imports22.422.924.021.222.922.5
New Zealand (Re-imports)   105.777.186.5
Percentage total imports   0.70.50.5
Not allocated—
    Bunkering212.6206.9144.4---
    Passengers' baggage37.433.779.3---
    Ships' stores64.861.944.0---
            Total314.8302.6267.8---
Percentage total exports/imports2.01.71.4---
            Total exports/imports15,768.417,890.619,006.215,325.115,483.417,332.7

New Zealand's top 10 trading partners purchased 68.7 percent of its total exports and supplied 77.7 percent of its imports in the 1993 trade year. Australia, Japan, the United States of America and the United Kingdom are the top four major trading partners. These countries collectively bought 52.9 percent of New Zealand's exports and supplied 61.5 percent of its imports in the June 1993 year.

Table 23.21. TOP 10 COUNTRIES FOR EXPORTS*

CountryValue of exports† (fob)Percentage of total exports (fob)
199119921993199119921993

*Year ended June.

†Include re-exports.

‡Include bunkering, ship stores and passengers' baggage.

  $(million)    
Australia2,937.43,387.83,781.018.618.919.9
Japan2,611.12,738.62,799.816.615.314.7
United States of America2,047.22,295.22,257.613.012.811.9
United Kingdom1,024.21,165.11,216.86.56.56.4
Korea, Republic of718.9767.5857.74.64.34.5
Germany, Federal Republic of372.1415.4488.82.42.32.6
Taiwan, Province of China315.7431.5488.32.02.42.6
Hong Kong240.7363.2413.31.52.02.2
Malaysia394.5470.5382.62.52.62.0
China, Peoples Republic of186.1361.5368.11.22.01.9
            Total of top 10 countries10,848.012,396.113,053.968.869.368.7
All other countries‡4,920.45,494.45,952.331.230.731.3
            Total exports‡15,768.417,890.619,006.2100.0100.0100.0

Table 23.22. TOP 10 COUNTRIES FOR IMPORTS (CIF)*

CountryValue of imports (cif)Percentage of total imports (cif)
199119921993199119921993

*Year ended June.

†Include re-imports.

  $(million)    
Australia3,117.23,426.73,747.320.322.121.6
United States of America2,609.52,808.03,198.817.018.118.5
Japan2,337.22,375.12,652.615.315.315.3
United Kingdom1,069.6938.51,061.47.06.16.1
Germany, Federal Republic of695.0639.3728.94.54.14.2
China, Peoples Republic of217.5354.1506.71.42.32.9
Taiwan, Province of China384.7428.6483.12.52.82.8
Saudi Arabia531.8507.9397.53.53.32.3
Italy357.0351.3389.12.32.32.2
France334.7270.3305.52.21.71.8
            Total of top 10 countries11,654.312,099.713,470.876.078.177.7
All other countries†3,670.93,383.83,861.924.021.922.3
            Total imports†15,325.115,483.417,332.7100.0100.0100.0

MAJOR TRADING PARTNERS, 1993

Australia

Australia, New Zealand's top trading partner, bought 19.9 percent of New Zealand's exports and supplied 21.6 percent of its imports in the June 1993 year. Trade with Australia continues to rise, with both exports and imports reaching record levels for the June 1993 year.

The strong growth in trade with Australia is underpinned by the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA), which provided for free trade in goods between the two countries from 1 July 1990. This agreement was signed in 1983.

The main commodities exported to Australia are wood and wood articles, mechanical machinery, pearls and precious stones (mainly gold), mineral fuels and paper and paperboard. Mineral fuels, inorganic chemicals, paper and paperboard, plastics and articles, mechanical and electrical machinery and vehicles were the major commodities imported from Australia.

Table 23.23. MAJOR COMMODITIES TRADED WITH AUSTRALIA*

Commodity1990199119921993

*Year ended June.

  $(million)  
Exports
Wood and wood articles218.0231.9294.0351.1
Mechanical machinery279.4280.4255.3306.5
Mineral fuels281.5310.6300.6259.5
Paper and paperboard221.7202.6264.2257.9
Pearls, gold, etc105.097.2187.2273.2
Iron, steel and articles110.1125.2144.8173.9
Electrical machinery191.0161.5163.3171.2
Plastics and articles92.289.7111.8141.2
Other1,481.31,438.31,666.61,846.5
            Total exports to Australia2,980.22,937.43,387.83,781.0
Percentage contribution to total exports19.718.618.919.9
Imports
Vehicles331.9220.5283.8298.6
Mineral fuels138.8181.0237.3260.2
Mechanical machinery247.4254.1233.4242.1
Electrical machinery195.6204.8217.7239.9
Inorganic chemicals261.2269.5293.8219.4
Plastics and articles146.2144.4164.5198.3
Paper and paperboard94.8107.5138.8197.5
Printed books, etc83.786.895.2105.7
Other1,757.71,648.61,762.21,985.6
            Total imports from Australia3,257.33,117.23,426.73,747.3
Percentage contribution to total imports20.720.322.121.6

In the June 1993 year, New Zealand's trade with Australia was in surplus of $33.7 million, the first such surplus to be recorded in a June year since 1983.

TRADE WITH AUSTRALIA

Table 23.26. TRADE WITH AUSTRALIA

Year ended JuneExports (fob)Imports (cif)Balance
  $(million) 
1983949.01,446.4-497.3
19841,291.41,809.6-518.2
19851,835.72,304.0-468.3
19861,821.81,898.0-76.2
19871,794.92,119.8-324.9
19882,073.82,468.3-394.6
19892,603.82,672.9-69.1
19902,980.23,257.3-277.2
19912,937.43,117.2-179.7
19923,387.83,426.7-38.8
19933,781.03,747.333.7

United States of America

The United States of America is New Zealand's third largest export market, behind Australia and Japan, and the second largest supplier of New Zealand's imports.

Exports to the United States of America have grown slowly in recent years but dropped from $2,295.2 million in the June 1992 year to $2,257.6 million in the June 1993 year.

The major commodities exported to the United States of America are primary and agricultural based produce. In the June 1993 year, among the main commodities exported were $965.7 million worth of meat and edible offal, $287.9 million worth of fish, crustaceans and molluscs, and $207.6 million worth of albuminoidal substances such as casein.

In the June 1993 year, imports from the United States of America reached a record level of $3,198.8 million, 18.5 percent of total New Zealand's imports. The main commodities imported were mechanical and electrical machinery worth $1,137.5 million, aircraft and parts worth $468.1 million and plastics and plastics articles worth $187.8 million. However, these only made up 56.1 percent of imports from the United States of America, reflecting the diverse range of commodities imported.

The slight drop in exports to the United States of America in the 1993 trade year offset by the increase in imports led to a trade deficit with the United States of America this year. This deficit reflects the growing importance of the United States of America as a supplier of imports to New Zealand.

Table 23.25. TRADE WITH UNITED STATES

Year ended JuneExports (fob)Imports (cif)Balance
  $(million) 
19831,154.01,287.0-133.0
19841,095.91,349.0-253.1
19851,636.02,047.8-411.9
19861,612.21,953.5-341.3
19871,944.81,872.172.7
19881,803.01,827.4-24.4
19891,975.32,049.7-74.4
19901,979.02,797.9-818.9
19912,047.22,609.5-562.3
19922,295.22,808.0-512.8
19932,257.63,198.8-941.1

Japan

Japan is New Zealand's third major supplier of imports after Australia and the United States and the second major export partner behind Australia. Exports to Japan in the 1993 trade year were $2,799.8 million and imports from Japan were $2,652.6 million.

Major exports to Japan are primary foods, aluminium and wood and wood articles. Exports of meat and edible offal, fish, crustaceans and molluscs, and dairy produce were 25.5 percent of total exports to Japan.

Table 23.26a. TRADE WITH JAPAN, 1993*

ProductExports (fob)Percentage of exports

*Year ended June.

 $(million) 
Meat and edible offal178.96.4
Fish, crustaceans and molluscs364.613.0
Dairy produce171.36.1
Fruit and nuts148.95.3
Wood and articles527.518.8
Aluminium and articles345.112.3
Vegetables110.43.9
Casein, etc121.64.3
Wood pulp108.23.89
Other72.325.8
            Total exports to Japan2,799.8100.00
 Imports (cif)Percentage of imports
Mechanical machinery352.613.3
Electrical machinery375.614.2
Vehicles1,104.641.6
Optical and medical equipment135.95.1
Iron, steel and articles137.65.2
Plastics and articles72.42.7
Other473.917.9
            Total imports to Japan2,652.6100.0

APEC

On 6 November 1989 Australia hosted the first regional meeting of Asia-Pacific Economic Co-operation (APEC) for ministers. APEC, an Australian initiative, provides countries in the region with a forum to promote economic interaction and policy co-ordination to ensure regional economic growth.

The countries attending the first APEC meeting were New Zealand, Australia, Japan, Korea, United States of America, Canada, Malaysia, Singapore, Thailand, Philippines, Indonesia and Brunei Darussalam. China, Hong Kong and Taiwan joined APEC later. Eight of New Zealand's top ten export partners are in APEC and five of the top ten importers.

Trade with APEC countries continues to increase steadily with exports at $12,616.1 million in 1993,66.4 percent of total exports. Although Australia, Japan and the United States of America dominate other APEC countries as trading partners with New Zealand, the other APEC countries demand for New Zealand goods has also increased over the two year period eg, Republic of Korea up $90.2 million, Taiwan up $56.8 million and Hong Kong up $50.1 million.

Table 23.27. EXPORTS TO APEC COUNTRIES*†

CountryValue of exports (fob)†Percentage of total exports‡
199119921993199119921993

*Year ended June.

†Include re-exports.

‡Include bunkering, ship stores and passengers' baggage.

  $(million)    
Australia2,937.43,387.83,781.018.618.919.9
Japan2,611.12,738.62,799.816.615.314.7
United States of America2,047.22,295.22,257.613.012.811.9
Korea, Republic of718.9767.5857.74.64.34.5
Taiwan315.7431.5488.32.02.42.6
Hong Kong240.7363.2413.31.52.02.2
Malaysia394.5470.5382.62.52.62.0
China, Peoples Republic of186.1361.5368.11.22.01.9
Canada232.1268.1312.41.51.51.6
Singapore226.4286.7289.91.41.61.5
Indonesia166.7232.8246.51.11.31.3
Thailand149.3177.0208.50.91.01.1
Philippines115.7135.9205.30.70.81.1
Brunei Darussalam1.06.55.3---
            Total exports to APEC countries10,342.911,922.712,616.165.666.666.4
Other countries‡5,425.55,967.96,390.134.433.433.6
Total exports†15,768.417,890.619,006.2100.0100.0100.0

Table 23.28. IMPORTS FROM APEC COUNTRIES*

CountryValue of imports (cif)†Percentage of total imports
199119921993199119921993

*Year ended June.

†Include re-imports.

  $(million)    
Australia3,117.23,426.73,747.320.322.121.6
United States of America2,609.52,808.03,198.817.018.118.5
Japan2,337.22,375.12,652.615.315.315.3
China, Peoples Republic of217.5354.1506.71.42.32.9
Taiwan384.7428.6483.12.52.82.8
Korea, Republic of246.3242.9280.11.61.61.6
Canada276.3262.2267.51.81.71.5
Malaysia144.4151.0238.50.91.01.4
Singapore218.6357.2238.51.42.31.4
Hong Kong183.9207.7231.21.21.31.3
Thailand93.11167.4135.70.60.80.8
Indonesia107.987.0125.00.70.60.7
Philippines21.924.134.90.10.20.2
Brunei Darussalam28.8--0.2--
            Total imports countries9,987.210,840.912,139.965.270.070.0
Other countries†5,337.94,642.55,192.834.830.030.0
            Total imports†15,325.115,483.417,332.7100.0100.0100.0

Signing of trade agreement between Malaysia and New Zealand, Wellington.

Table 23.29. TOP 20 COMMODITIES EXPORTED TO APEC COUNTRIES*†

Year ended 30 JuneValue of exports (fob)‡Percentage of exports
199119921993199119921993

*Year ended June.

†APEC as at June 1993.

‡Include re-exports.

  $(million)    
Meat and edible meat offal1,452.91,621.71,581.814.013.612.5
Wood and articles of wood; wood charcoal771.3948.61,451.27.58.011.5
Dairy produce; birds' eggs; natural honey; edible products of animal origin, nei777.6979.61,081.97.58.28.6
Fish and crustaceans, molluscs and other aquatic invertebrates654.2926.2928.36.37.87.4
Aluminium and articles760.9675.7640.17.45.75.1
Wool, fine or coarse animal hair; horsehair yarn and woven fabric cotton441.5578.7495.14.34.93.9
Mechanical machinery, equipment and parts430.2398.3494.64.23.33.9
Albuminoidal substances; modified starches; glues; enzymes342.8384.5416.33.33.23.3
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes491.6446.5400.84.83.73.2
Paper and paperboard; articles of paper or paperboard298.6376.0376.92.93.23.0
Raw hides and skins (other than furskins) and leather320.4344.6352.93.12.92.8
Pulp of wood or other fibrous cellulosic material369.8371.2350.63.63.12.8
Fruit and nuts, edible; peel of citrus fruit or melons319.5387.5337.43.13.32.7
Natural or cultured pearls, precious, semi precious stones, precious metals, imitation jewellery; coin101.9190.0280.61.01.62.2
Iron and steel307.3269.9270.13.02.32.1
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders205.3236.0261.62.02.02.1
Animal originated products; nei129.9203.2181.81.31.71.4
Plastics and articles113.4137.2181.01.11.21.4
Vegetables and certain roots and tubers; edible143.0187.5179.81.41.61.4
Optical, photographic, cinematographic, measuring, checking, medical or surgical instruments and apparatus77.886.1127.90.80.71.0
Others nei1,833.12,173.72,225.417.718.217.6
            Total exports to APEC countries10,342.911,922.712,616.1100.0100.0100.0

Table 23.30. TOP 20 COMMODITIES IMPORTED FROM APEC COUNTRIES*†

CommodityValue of imports (cif)‡Percentage of total imports‡
199119921993199119921993

*Year ended June.

†APEC as at June 1993.

‡Include re-imports.

  $(million)    
Mechanical machinery, equipment and parts1,458.11,582.51,750.314.614.614.4
Vehicles; other than railway or tramway rolling stock, and parts and accessories thereof1,280.91,341.71,558.312.812.412.8
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders1,057.81,158.81,261.210.610.710.4
Plastics and articles454.7503.4588.34.64.64.8
Aircraft, spacecraft and parts455.2403.6483.64.63.74.0
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes460.7381.9448.04.63.53.7
Optical, photographic, cinematographic, measuring, checking, medical or surgical instruments and apparatus324.2340.6398.13.23.13.3
Paper and paperboard; articles of paper or paperboard225.8294.7376.52.32.73.1
Inorganic chemicals; organic and inorganic compounds of precious metals; of rare earth metals, of radioactive elements and isotopes356.3389.2316.53.63.62.6
Iron and steel211.9223.4272.12.12.12.2
Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans177.8199.0219.71.81.81.8
Pharmaceutical products150.5188.6210.01.51.71.7
Rubber and articles1,467.1155.4190.41.51.41.6
Iron or steel articles173.8257.2181.71.72.41.5
Toys, games and sports requisites; parts and accessories108.5127.1158.01.11.21.3
Organic chemicals127.6143.8153.01.31.31.3
Aluminium and articles144.5147.9148.41.41.41.2
Apparel and clothing accessories; knitted or crocheted74.4103.7147.60.71.01.2
Apparel and clothing accessories; not knitted or crocheted89.1110.2145.70.91.01.2
Chemical products nes103.0126.6138.81.01.21.1
Others nei2,406.52,661.52,993.824.124.624.7
            Total imports from APEC countries.9,987.210,840.912,139.9100.0100.0100.0

European Community

New Zealand and the European Community (EC) have a strong trading relationship despite a decline in trade with the 12 member countries in recent years. The EC countries are Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain and the United Kingdom.

In the June 1993 year the European Community took 15.7 percent of New Zealand's total exports worth $2,982.2 million and was the country's largest market for butter, sheepmeat, wool, kiwifruit and apples.

Imports from EC countries increased from $2,676.8 million in the June 1992 year to $3,057.0 million in 1993.

Table 23.31. TRADE WITH EC

Year ended JuneImports (cif)Percentage of total importsExports (fob)Percentage of total exports
 $(million) $(million) 
19841,825.920.21,735.120.1
19852,588.320.82,258.920.0
19862,562.922.42,086.319.7
19872,792.423.72,635.821.8
19882,620.522.62,589.220.8
19892,297.218.42,721.918.3
19903,157.920.02,785.518.4
19912,908.719.02,702.917.1
19922,676.817.32,967.016.6
19933,057.017.62,982.215.7

Table 23.32. EXPORTS TO EC*

CountryValue of exports (fob)†Percentage of total exports†
199119921993199119921993

*Year ended June.

†Include re-exports.

‡Include bunkering, ship stores and passengers' baggage.

  $(million)    
United Kingdom1,024.21,165.11,216.86.56.56.4
Germany372.1415.4488.82.42.32.6
Belgium166.4237.7224.81.11.31.2
France167.8217.3221.61.11.21.2
Italy252.7213.7200.31.61.21.1
Netherlands157.293.092.81.00.50.5
Greece80.776.968.40.50.40.4
Spain70.598.668.20.40.60.4
Portugal37.244.938.80.20.30.2
Denmark28.334.731.30.20.20.2
Ireland12.316.223.00.10.10.1
Luxembourg0.20.3----
EC but country unknown333.4353.3307.32.12.01.6
            Total exports to the EC2,702.92,967.02,982.217.116.615.7
Other countries‡13,065.514,923.516,024.082.983.484.3
            Total exports‡15,768.417,890.619,006.2100.0100.0100.0

Table 23.33. IMPORTS FROM EC*

CountryValue of imports (cif)†Percentage of total imports†
199119921993199119921993

*Year ended June.

† Include re-imports.

‡ Include bunkering, ship stores and passengers' baggage.

  $(million)    
United Kingdom1,069.6938.51,061.47.06.16.1
Germany695.0639.3728.94.54.14.2
Italy357.0351.3389.12.32.32.2
France334.7270.3305.52.21.71.8
Netherlands170.8169.0195.71.11.11.1
Belgium90.8105.6108.10.60.70.6
Denmark70.776.287.40.50.50.5
Ireland49.344.184.20.30.30.5
Spain46.149.657.10.30.30.3
Portugal15.922.619.20.10.10.1
Luxembourg3.76.613.90.00.00.1
Greece5.13.76.60.00.00.0
            Total imports from the EC2,908.72,676.83,057.019.017.317.6
Other countries‡12,416.412,806.714,275.781.082.782.4
            Total New Zealand imports‡15,325.115,483.417,332.8100.0100.0100.0

Table 23.34. MAJOR COMMODITIES EXPORTED TO EC*

CommodityValue of exports (fob)Percentage of total exports
199119921993199119921993

*Year ended June.

†Include re-exports.

  $(million)    
Meat and edible meat offal789.3929.21,050.229.231.335.2
Dairy produce; birds' eggs; natural honey; edible products of animal origin, nei301.0417.0440.311.114.114.8
Fruit and nuts, edible; peel of citrus fruit or melons453.4488.9412.216.816.513.8
Wool, fine or coarse animal hair; horsehair yarn and woven fabric cotton358.7348.8269.813.311.89.0
Raw hides and skins (other than furskins) and leather206.1152.1152.37.65.15.1
Albuminoidal substances; modified starches; glues; enzymes103.397.9134.43.83.34.5
Fish and crustaceans, molluscs and other aquatic invertebrates70.0108.999.32.63.73.3
Animal originated products; nei67.768.365.32.52.32.2
Mechanical machinery, equipment and parts54.256.452.92.01.91.8
Beverages, spirits and vinegar18.428.839.90.71.01.3
Vegetables and certain roots and tubers; edible29.442.236.61.11.41.2
Electrical machinery and equipment and parts; sound recorders and reproducers, television image and sound recorders24.629.536.30.91.01.2
Optical, photographic, cinematographic, measuring, checking, medical or surgical instruments and apparatus18.523.025.10.70.80.8
Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit, industrial or medicinal plants; straw and fodder17.523.923.10.60.80.8
Pharmaceutical products18.217.316.40.70.60.6
Plastics and articles4.16.48.50.10.20.3
Furskins and artificial fur; manufactures8.59.28.30.30.30.3
Aircraft, spacecraft and parts3.69.96.30.10.30.2
Wood and articles of wood; wood charcoal7.44.85.70.30.20.2
Trees and other plants, live; bulbs, roots and the like; cut flowers and ornamental foliage4.34.15.60.20.10.2
Others nei144.8100.393.45.43.43.1
            Total exports to EC2,702.92,967.02,982.2100.0100.0100.0

Table 23.35. MAJOR COMMODITIES IMPORTED FROM EC*

CommodityValue of imports (cif)†Percentage of total imports†
199119921993199119921993

*Year ended June.

†Include re-imports.

  $(million)    
Mechanical machinery, equipment and parts543.2425.9603.818.715.919.8
Electrical machinery and equipment and parts; sound recorders and reproducers, television image and sound recorders355.9281.1280.412.210.59.2
Vehicles; other than railway or tramway rolling stock, and parts and accessories207.7152.2210.17.15.76.9
Pharmaceutical products177.8182.4199.46.16.86.5
Plastics and articles131.9139.6167.74.55.25.5
Optical, photographic, cinematographic, measuring, checking, medical or surgical instruments and apparatus124.9117.2133.84.34.44.4
Paper and paperboard; articles of paper or paperboard103.4102.7111.73.63.83.7
Aircraft, spacecraft and parts thereof93.2124.2110.23.24.63.6
Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans91.190.093.93.13.43.1
Chemical products nes77.683.583.52.73.12.7
Organic chemicals63.566.176.42.22.52.5
Beverages, spirits and vinegar72.161.665.12.52.32.1
Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints; varnishes; inks36.943.352.21.31.61.7
Essential oils and resinoids; perfumery, cosmetic or toilet preparations37.043.650.71.31.61.7
Iron or steel articles52.144.148.01.81.61.6
Natural or cultured pearls, precious, semi precious stones, precious metals, imitation jewellery; coin25.340.146.70.91.51.5
Rubber and articles34.334.140.81.21.31.3
Inorganic chemicals; organic and inorganic compounds of precious metals; of rare earth metals, of radioactive elements and isotopes49.940.937.61.71.51.2
Glass and glassware38.335.136.31.31.31.2
Iron and steel32.330.734.71.11.11.1
Others nei560.3538.4573.819.320.118.8
            Total imports from the EC2,908.72,676.83,057.0100.0100.0100.0

Asia

Exports to Asian countries (other than Japan) have continued to rise in recent years, but has slowed down in the June 1993 trade year. Exports to Asian countries were $3,808.2 million this year compared with $3,496.9 million in 1992. The increase of $311.3 million is mainly attributable to increases in meat and edible offal, dairy products (including casein), wood and wood articles and aluminium and articles more than offsetting falls in raw hides, skins and leather and mineral fuels.

The value of imports to Asian countries tend to be lower than export values.

Table 23.36. TRADE WITH ASIAN COUNTRIES*

Year ended JuneExportsTotal exportsImportsTotal importsBalance

*Excluding Japan.

 $(million)percent$(million)percent$(million)
19831,084.813.71,175.915.5-91.1
19841,181.813.71,113.212.368.5
19851,473.313.01,555.212.5-81.9
19861,304.312.31,273.811.130.4
19871,722.214.21,336.811.3385.4
19881,848.314.81,279.811.0568.4
19892,559.417.21,548.912.41,010.5
19902,189.214.41,764.311.2424.9
19912,752.417.51,743.111.41,009.2
19923,496.919.52,089.513.51,407.4
19933,808.220.02,430.014.01,378.2

Abalone bound for the Asian market.

23.5 Overseas cargo

Overseas cargo records all goods, the value and gross weight, loaded or unloaded at New Zealand's sea or air ports. Overseas cargo statistics, like overseas merchandise trade statistics, are sourced from customs entries. However, there are some conceptual differences between overseas trade statistics and overseas cargo statistics. Some items are included in overseas cargo statistics, but not in the overseas merchandise trade statistics. These include:

  • Goods being returned after repair or modification in New Zealand.

  • Goods on short-term loan or lease.

  • Service transactions, eg, computer data tapes and drawings.

  • Goods consigned to New Zealand forces or diplomatic representatives.

  • Returnable containers and samples.

Table 23.37. OVERSEAS CARGO LOADED AT PORTS

Year ended JuneValue (fob)Quantity
199119921993199119921993
Seaports $(million)  tonnes (000) 
Auckland3,603.74,102.04,792.31 288.91 510.41 749.1
Gisborne29.941.355.765.8138.9178.1
Napier981.11,143.51,181.91 147.01 226.91 188.0
New Plymouth834.2900.5888.51 827.52 051.41 813.3
Taharoa18.523.128.61 001.31 118.21 345.0
Tauranga2,328.92,691.52,872.44 361.74 418.34 753.0
Wanganui4.0..-3.0..-
Wellington1,648.31,901.81,901.8490.9659.3765.0
Whangarei409.0375.0337.3856.7870.8746.9
            Total North Island9,857.611,178.712,058.311 042.811 994.212 538.3
Dunedin1,312.91,369.81,336.4555.1698.1776.7
Invercargill751.1716.8638.7642.5704.4678.4
Lyttelton1,143.31,363.01,451.4835.91 210.01 170.0
Nelson350.6508.3547.7657.6848.6820.6
Picton1.05.222.53.543.392.5
Timaru340.5392.0400.0227.9277.5311.4
Westport-0.24.8-1.828.9
            Total South Island3,899.44,355.54,401.52 922.53 783.83 878.6
            Total all seaports13,756.915,534.116,459.813 965.215 778.016 416.9
Airports
Auckland1,542.21,985.52,190.355.464.567.9
Christchurch324.0297.4415.012.611.011.4
Ohakea..0.1........
Wellington136.1156.5143.93.43.14.0
Whenuapai..0.40.6......
            Total all airports2,002.32,439.92,749.971.478.683.4
            Parcel post11.710.511.9......
            Total overseas cargo loaded15,770.817,984.519,221.614 036.615 856.616 500.4

Overseas cargo loaded at New Zealand ports rose by 4.1 percent to 16,500.4 thousand tonnes in 1993. Tauranga loaded the most in 1993, 4,753.0 thousand tonnes valued at $2,872.4 million. Auckland loaded less than half the tonnage of Tauranga but the value was $4,792.3 million.

1993 OVERSEAS CARGO - LOADED
By weight (thousand tonnes) and value (fob $ million)

1993 OVERSEAS CARGO - UNLOADED
By weight (thousand tonnes) and value (cif $ million)

Seaports loaded 16,416.9 thousand tonnes, 99 percent of all loaded cargo. Most seaports loaded more tonnage in 1993 compared with 1992, except Napier, New Plymouth Whangarei, Invercargill, Lyttelton and Nelson.

Tonnage handled by international airports increased from 78.6 thousand tonnes in the 12 months to June 1992 to 83.4 thousand tonnes in 1993. This increase was valued at $310.0 million. Auckland airport handled the most cargo in 1993 i.e. 67.9 thousand tonnes with a value of $2,190.3 million.

Table 23.38. OVERSEAS CARGO UNLOADED AT PORTS

Year ended JuneValue (cif)Gross weight
199119921993199119921993
Seaports $(million)  tonnes (000) 
Auckland6,355.36,640.17,885.31 638.81 724.01 997.4
Gisborne0.30.40.50.02.13.5
Napier202.7254.0339.4167.5262.5362.9
New Plymouth241.3271.560.7194.2231.5225.4
Tauranga300.5285.3362.7584.3718.1865.1
Wanganui0.10.10.0......
Wellington1,532.31,250.01,281.6446.4431.0479.7
Whangarei1,017.7927.7950.23 458.13 378.13 452.1
            Total North Island9,650.39,629.010,880.36 489.36 747.37 386.0
Dunedin175.0192.5217.0121.4124.6173.1
Invercargill337.8338.9279.0753.5812.4723.5
Lyttelton883.4927.51,090.4481.0479.1514.3
Nelson112.1114.2127.544.565.255.4
Picton--0.2--0.1
Timaru200.494.696.861.362.282.2
Westport--0.2--..
            Total South Island1,708.71,667.81,811.11 461.81 543.51 548.5
            Total all seaports11,358.911,296.912,691.47 951.18 290.98 934.6
Airports
Auckland2,776.22,945.73,564.644.445.454.3
Christchurch241.6272.1380.15.45.86.7
Wellington355.6230.0134.74.64.03.5
            Total all airports3,373.33,447.84,079.554.455.164.5
Parcel post62.165.870.80.80.30.4
            Total overseas cargo unloaded14,794.414,810.516,841.88 006.38 346.38 999.5

Overseas cargo unloaded at New Zealand ports increased by 7.8 percent to 8,999.5 thousand tonnes in the year ended June 1993.

Whangarei unloaded the most tonnage in 1993 i.e. 3,452.1 thousand tonnes with a value of $950.2 million. Auckland unloaded 1,997.4 thousand tonnes with a value of $7,885.3 million.

Seaports unloaded just over 99 percent of all overseas cargo with 1,548.5 thousand tonnes unloaded at South Island ports and 7,386.0 thousand tonnes at North Island ports.

Auckland Airport was the busiest airport, unloading 54.3 thousand tonnes, 84.2 percent of all overseas cargo unloaded at New Zealand airports.

Two new cranes assembled at the Port of Auckland.

Coastal shipping

Coastal cargo statistics records the number of arrivals and departures made by New Zealand vessels to load cargo destined for another New Zealand port and unload cargo from a New Zealand port. Statistics include the gross registered tonnage (weight of the ship excluding cargo), gross tonnes (weight of the cargo carried), number of arrivals and departures.

In the June 1993 year 39,867.9 thousand tonnes of cargo was handled at New Zealand ports. Of this, coastal shipping loaded 7,342.6 thousand tonnes and unloaded 7,025.4 thousand tonnes. Shipping vessels made 13,564 visits to New Zealand ports, of which 9,338 were carrying coastal cargo. Wellington was the busiest port in terms of arrivals with 3,227 ships, Picton second with 2,188 and Auckland 1,741.

However, Whangarei handled the greatest tonnage loading 2815.8 thousand tonnes of coastal cargo and unloading 1075.0 thousand tonnes. Port Taranaki loaded 2077.8 thousand tonnes and unloaded 184.6 thousand tonnes.

Petroleum products loaded by coastal shipping weighed 4,723.0 thousand tonnes in 1993, with 97.1 percent loaded at Whangarei and Port Taranaki. Cement loaded was mainly loaded at Whangarei and Westport.

Table 23.39. COASTAL CARGO LOADED AND UNLOADED AT PORTS, 1993*

SeaportCementCoal and cokePetroleum productsSand and shingleMotor vehiclesContainer goodsOther goodsTotal

*Year ended June.

Unloaded  Gross tonnes     
Whangarei228,810-2,563,44723,530---2,815,787
Auckland--81,38024,52532,02737,98843,460219,380
Tauranga-----578-578
Gisborne-----44899,50699,954
New Plymouth--2,024,4565,485--47,8772,077,818
Napier4,223-81-27449854,875
Wellington----186,31038,104644,681869,095
            Total, North Island233 043-4 669 36453 540218 36477 566835 6106 087 486
Nelson--52,549-1,2734,42010,46068,702
Picton3,970---174,656109,271459,709747,606
Westport345,9669,800--1952,16,081372,800 
Greymouth--------
Lyttelton--176-3,1545,40245,88154,613
Timaru--------
Otago------1,3951,395
Bluff-240750---5,1236,239
Chatham Islands--185126912,6508423,768
            Total, South Island349 93610 04053 660126179 175122 695539 4911 255 122
            Total loaded, New Zealand582 97910 0404 723 02453 666397 538200 2611 375 1007 342 608
Unloaded
Whangarei- 1,075,036----1,075,036
Auckland214,93010,234471,36687,93431,91213,29647,206876,878
Tauranga70,461-572,843--1,98128,630673,915
Gisborne3,150-43,5601,700--4,14352,553
New Plymouth18,5059,490150,786---5,769184,550
Napier51,348-257,541-443178309,403
Wanganui--------
Wellington66,345-540,215-180,045112,688499,9761,399,269
            Total, North Island424 73919 7243 111 34789 634211 961128 397585 8024 571 604
Nelson12,090-256,119-1,6682,37319,576291,826
Picton25,9967,231--173,57735,670509,962752,436
Westport------2,0782,078
Lyttelton--604,423-5,75024,818110,579745,570
Timaru--150,329---18,973169,302
Otago44,795-236,623----281,418
Bluff--203,515---5,339208,854
Chatham Islands--81-621,5635792,284
            Total, South Island82 8817 2311 451 090-181 05764 423667 0862 453 767
            Total unloaded, New Zealand507 62026 9554 562 43789 634393 018192 8191 252 8887 025 371

23.6 Overseas trade indexes

The overseas trade indexes measure changes in the levels of prices and volumes of New Zealand's imports and exports. The index numbers which reflect the percentage rise or fall of price and volume levels, are expressed on a base of the year ended June 1989 (= 1000).

Data used in calculating the export and import price and volume indexes is derived from Statistics New Zealand's overseas trade data, which is in turn processed from import and export entry forms lodged with the Customs Department.

The indexes cover all commodities classified as merchandise trade, although the export indexes exclude re-exports, bunkering, ships' stores and passengers' effects. Import indexes use ‘cost including insurance and freight’ (cif) values, while export indexes are calculated using ‘free on board’ (fob) values (see glossary).

Import and export price indexes

provides a summary of the Import Price Index, and 23.41 of the Export Price Index.

Table 23.40. IMPORT PRICE INDEXES*

 Non-food manufactured goods
 Food and beveragesPetroleum and petroleum productsNon-fuel crude materialsPlastics and plastic articlesTextile yarn, fabrics related productsIron and steel†Non-electrical machineryElectrical machinery and apparatusTransport equipmentTotal‡Total imports‡

*Base: year ended June 1989 (=1000).

†Excludes manufactured articles of iron and steel.

‡Includes commodities not listed.

June year
19861033186996879297072093911718429411002
19879871223913787996736100812281026990999
198890510998788419607049681030994937941
198910001000100010001000100010001000100010001000
19901052126910148331025105210421006102710171034
19911038157010328581046999988988106410041044
19921078139210497981100107010561052122610651086
199310981466P1027P804P1100P1027P1105P11071383P1111P1129
Quarterly
1991 Dec1064144110538081093108910291041123310561080
1992 Mar1112139410367971098107010551076126110801099
Jun1088139110657901132104711471097130511121126
Sep1071152010538031092102710981091135211051126
Dec1109147510478141099104111121104135511061127
1993 Mar1135141710278221145104611001148141211251139
Jun10781456982780107099511091095144311121124

Table 23.41. EXPORT PRICE INDEXES*

 All pastoral and dairy productsTotalFish and fish preparationsFood and beveragesForestry productsNon-fuel crude materialsNon-food manufactured goodsTotal exports†
Dairy productsMeat, wool & by-productsAluminiumTotal†
ButterCheeseTotal†MeatWoolTotal†

*Base: year ended June 1989 (=1000).

† Includes commodities not listed.

1986983813765903718813832912849774750616752809
19879197797579248078848851142892850856708802864
1988870756741874916936901962846888978812868888
198910001000100010001000100010001000100010001000100010001000
199012011067116411899491098109910331130102910278649881064
199111841002103911936979759951055107710008488569591004
199212301112110812246399821037121011569958347219461031
1993138412011281130967510541123P13301252P11449557269711115P
Quarterly
1990—
  Jun1124104711331207909110010939571113102510138229801056
  Sep109010711054125477910631054984110910109238509661032
  Dec1292983106312127721003101698410879908799579691034
1991—
  Mar118097710371179649942982101910801000811828950995
  Jun11149841005114862192597710421077999801786952980
  Sep109210161005119162394698312061108995804734935994
  Dec12601046108412076419601020116711419798096999371014
1992—
  Mar1277115311531260627100510541197117110008436909461041
  Jun1291120511891227666100310731284118910068777629651067
  Sep1393P1214P1260P1290P686P1041P1110P1403P1248P1021P893P759P968P1096P
  Dec1442P1173P1283P1295P708P1055P1129P1290P1245P1080P927P743P972P1106P
1993—
  Mar13641232130013276701072114613161270P11409597359881133P
  Jun131711871275131263210461108P13231246P130910216779601121P

Overseas terms of trade index

The Overseas Terms of Trade Index measures the changing volume of imports that can be funded by a unit volume of New Zealand's exports. The index is calculated as the ratio of the total export price index to the total import price index.

An increase in the terms of trade index indicates that the real purchasing power of exports has increased, while a decrease indicates a drop in the purchasing power of exports.

The Overseas Terms of Trade Index is expressed on a base of the average of the 10 years ended June 1989 (=1000). An index value above or below 1000 indicates the terms of trade are either more or less favourable than the average for the 1980-89 base period.

TERMS OF TRADE INDEX
Based on ratio of exports to imports

Table 23.45. EXPORT AND IMPORT PRICES AND OVERSEAS TERMS OF TRADE INDEXES

 Export price index*Percentage change from preceding periodImport price index*Percentage change from preceding periodTerns of index†Percentage change from preceding period

*Base: year ended June 1989 (=1000).

†Base: average of ten years ended June 1989 (=1000).

June year
1986809-6.61002-4.2919-2.5
19878646.8999-0.39857.2
19888882.8941-5.810749.1
1989100012.610006.211396.0
199010646.410343.411722.9
19911004-5.610041.01095-6.6
199210312.710864.01081-1.3
199311158.111294.011254.1
Quarterly
1991 Sep9941.410402.41088-0.9
Dec10142.010803.81069-1.7
1992 Mar10412.710991.810790.9
Jun10672.511262.51079-
Sep1096P2.7P1126P-P1108P2.7
Dec1106P0.9P1127P0.1P1117P0.8
1993 Mar11332.411391.111331.4
Jun1121P-1.1P1124P-1.3P1136P0.3P

Import and export volume indexes

provides a summary of the import volume indexes, and of the export volume indexes. These indexes are expressed on a base of the year ended June 1989 (=1000). In and the quarterly index numbers are given as annual equivalents.

Table 23.43. IMPORT VOLUME INDEXES*

 Food and beveragesPetroleum and petroleum productsNon-fuel crude materialsNon-food manufactured goods
Plastics and plastic articlesTextile yarn, fabrics related productsIron and steel†Non-electrical machineryElectrical machinery and apparatusTransport equipmentTotal†Total imports†

*Base: year ended June 1989 (=1000).

†Includes commodities not listed.

June year
1986664109910421028105821501081629968904917
1987844936943113211791880941723942943945
198893298610671093101220891015824904986987
198910001000100010001000100010001000100010001000
199010911194116012971074123811121164160612411221
1991109012431045121997594611711405119911941175
19921090119811701414101591910751103104611441142
199312261226118416601099116712151142103012381230
Quarterly
1991 Sep111094212061297102785610021149123511851161
Dec122713771016140610519661102117275111141131
1992 Mar95013601157138794693212561011132811971185
Jun10751112129915641035922941108187010821090
Sep11741275121717151169112912661237137913751341
Dec14491005105116531102118512911273112813131285
1993 Mar11001318125215799941180110691472610771098
Jun1184130512181695113211731198114288811881196

Table 23.44. EXPORT VOLUME INDEXES*

 All pastoral and dairy productsTotal†Fish and fish preparationsFood and beverages‡Forestry products§Non-fuel crude materialsNon-food manufactured goodsTotal exports†
Dairy productsMeat, wool & by-productsAluminiumTotal†
ButterCheeseTotalMeatWoolTotal†

*Base: year ended June 1989 (=1000).

†Includes commodities not listed.

‡Excludes live animals and tobacco, from the September 1989 quarter onwards.

§Series was named industry group—forestry, prior to the revision effective from the September 1989 quarter.

June year
1986101210291003791991857867702860758863810956874
1987102011121037100710761018992782979714949815923948
1988100411841034948985928958789982879908898928945
198910001000100010001000100010001000100010001000100010001000
1990971101795080677279286886791310878449731043942
199175211371037899769856960100293612761148102410331033
199293611801147101795296610391151112314751064107712971152
1993943P1317P1112968751875960P10621072P16341010P101114161136
Quarterly
1991 Sep86693296087378682389310739861510972104012671061
Dec14321283149478011148309641358106415281081107513611149
1992 Mar7181158100210731029104410211128106112871096109611701104
Jun730134711331342877116612781045138015761105109713891296
Sep48312168568645517527981018928152384787713901026
Dec13291306130663390367284313579881629994102614801098
1993Mar118114621250114582410201050P925112415761071103712821133P
Jun78112931036123272610571150P9501248P18071128110315141288P

EXPORT VOLUME INDEX

Contributors

  • 23.1 New Zealand Trade Development Board; Customs Department; Statistics New Zealand.

  • 23.1-23.6 Statistics New Zealand.

Further information

Tariff of New Zealand. Customs Department.

Export News. New Zealand Trade Development Board (monthly).

Key Statistics. Statistics New Zealand (monthly).

New Zealand Standard Classifications. Statistics New Zealand.

    New Zealand Harmonised System Classification.

    New Zealand Standard Classification by Broad Economic Categories.

    New Zealand Standard Trade Classification.

    New Zealand Standard Country Codes (NZSCC).

Overseas Trade. Department of Statistics (annual).

Report of the Customs Department (Parl paper B24).

Chapter 24. Prices

Prices of a large number of goods and services are collected periodically by Statistics New Zealand to compile price indexes for retail prices, farming inputs, capital expenditure, and producer prices (input and output prices). Overseas trade indexes are also calculated from trade data, and a summary is contained in section 23.4, External trade indexes. Farming indexes can be found in chapter 16, Agriculture.

Price indexes are constructed from prices weighted to reflect the importance of each item to the sector as a whole. Changes in the importance of individual items to a sector or the introduction of new items or the deletion of items which have no future significance require periodic revisions of weights.

24.1 Consumer prices

Consumer prices were, on average, 1.4 percent higher during 1993 than they were during 1992. In comparison, consumer prices were 1.3 percent higher during 1992 than they were during 1991. Of the eight component groups of the all groups Consumers Price Index (CPI), food and personal health care were the only groups to record a decrease in prices with all other groups recording increases. The most significant contributions to the CPI increase was made by the housing group.

The CPI measures the changing level of prices of goods and services purchased by private New Zealand households. The index is the most comprehensive measure available of the effect of changes in retail prices on the average household budget. The basket of goods and services for which prices are surveyed regularly is kept constant in quantity and quality over time, so that only ‘pure’ price movements are recorded. This is a fundamental feature of the Laspeyres-type index formula used in most countries. It is acknowledged that the New Zealand Consumers Price Index is one of the most thorough among developed countries in terms of commodity coverage.

The CPI is also a key economic indicator, used by policy advisers, commentators and economic consultants as well as by the general public. At a time when low price inflation is one of the government's stated objectives and the Reserve Bank has been charged with formulating monetary policy to achieve this target, movements in the index have assumed greater significance. A further use of the CPI is as a deflater to convert other statistical series into constant dollar terms in order to facilitate comparisons over time. Payments such as those from superannuation funds may be indexed to the CPI.

Index regimen. Over the period for which the CPI has been calculated, spending patterns have changed considerably as new goods and services have appeared on the market and as lifestyles and consumer tastes have altered. The CPI is brought up to date at regular intervals by changing the composition of the basket of commodities which are price-surveyed and by adjusting the relative emphasis given to each commodity.

The CPI was revised in 1993, with a revised CPI available for the March quarter 1994. Following the 1993 revision, with the addition of credit services, the regimen is divided into nine groups and 31 subgroups. There are approximately 350 published regimen items (excluding fresh fruit and vegetables) reflecting the range of goods and services available in New Zealand.

Expenditure weighting. The commodity weighting pattern incorporated into the CPI is based on the average expenditures of the population as a whole, as measured by Statistics New Zealand's Household Economic Survey (HES). A large, statistically-representative sample of private households provides comprehensive details of all their expenditures.

INFLATION
Annual percentage change in Consumers Price Index

Additional data relating to expenditure on the purchase and construction of dwellings is obtained from surveys conducted especially for this purpose. Other data is obtained from official production and trade statistics, from government departments, producers' marketing bodies and individual enterprises. This data is used to establish the relative weights to be assigned to each commodity for index calculation purposes.

The base weights represent expenditure allocated from similar commodities as well as the expenditure on each commodity for which prices are surveyed. Certain types of expenditure are, for various reasons, excluded from the index:

  • Consumption from own production, goods received as income-in-kind and goods and services supplied free of charge are outside the scope of the index.

  • Direct tax and commodities which represent savings and investment are also considered to be beyond the scope of the index; shares and payments to superannuation funds are examples.

  • Goods and services for which prices cannot be satisfactorily measured, nor can the price movements be represented by those of other commodities which could be priced. Works of art, catering charges for private functions and pets come into this category.

Price surveys. Retail outlets and organisations are selected for price surveys for the CPI so that they correspond as closely as possible to the buying patterns of private households. At the time of a revision the samples of outlets are updated to reflect changes in market trends and household buying behaviour. For example, the increasing significance of discount warehouses or ‘bulk barns’ was reflected at the 1988 revision. The 1993 revision continued this trend and added farmgate sales.

The deregulation of the economy in recent years, which led to the abandoning of scales of fees for professional services, the removal or relaxation of price controls and the extension of the user-pays system, necessitated the introduction of several new price surveys and the expansion of some existing ones.

User-pays policies in the education and health fields, particularly for university and polytechnic study, general practitioner and medical specialist services and public hospital treatment, have had direct impact on the CPI. All relevant price surveys were therefore modified to take account of the availability of different services and of user status, where this has a bearing on the charge incurred.

Prices are surveyed by specially trained field staff in retail establishments in 15 urban areas throughout New Zealand. Postal surveys are also conducted by Statistics New Zealand for numbers of items, including dwelling rents, used cars, sports club subscriptions, taxi fares, solicitors' fees and electricians' charges. Additional pricing information is obtained from government departments and other agencies.

The frequency of price surveys depends on a number of factors, including the relative importance of the commodity in the index and the likely price volatility. The prices of fresh fruit and vegetables are surveyed weekly. Food and non-food groceries are price-surveyed monthly, as are other heavily weighted commodities, such as electricity, petrol, cigarettes, alcohol and domestic airfares. The prices of all other commodities are surveyed quarterly, except those which are available for a limited season and can only be priced during that time.

Geographic coverage and published series. The urban areas in which prices are surveyed were reduced in number to 15 from 1 April 1991. The impact of this change on published national index results was statistically insignificant. Index series are now published for:

  • All 15 urban areas combined (Whangarei, Auckland, Hamilton, Tauranga, Rotorua, Napier-Hastings, New Plymouth, Wanganui, Palmerston North, Wellington, Nelson, Christchurch, Timaru, Dunedin, Invercargill)

  • The North Island urban areas combined and the South Island urban areas combined

  • Auckland, Wellington, Christchurch (separately and together).

Individual index numbers are compiled for the food group and subgroups at monthly intervals on the base December 1993 month (=1000) and for all groups and subgroups (including food) at quarterly intervals on the base December 1993 quarter (=1000). Prior to March 1994 the base was December 1988.

For user convenience a long-term Consumers Price Index series is maintained, the rebased index being linked to the previous series at each revision. When analysing this series, consideration must be given to the effects of the changing base expenditure patterns over time.

Young shopper.

Revision of the Consumers Price Index

A five-yearly cycle of revisions of the Consumers Price Index (CPI) has been adopted by Statistics New Zealand in recent years. The purpose of a revision is primarily to deal with practical matters, such as bringing the weighting pattern up to date and reviewing commodity, geographic and retail outlet coverage. It also serves to ensure that the index remains a timely and accurate statistical measure. The revision process is vital in maintaining the faith vested in the authority of the index. Any new methodological techniques are also introduced at this stage.

The last revision of the CPI took place in 1993, the current expression base of the index being the December 1993 quarter (=1000). These figures became available after this book went to print.

The findings of the 1991 Consumers Price Index Revision Advisory Committee were taken into account in the revision. The committee was charged with investigating the general nature, form and objectives of the index in the light of the latest assessment of its uses and with reviewing the general principles of its construction. The committee recommended that the basic concepts and calculation methodology of the index remain unchanged and emphasised their overall soundness.

For a detailed account of the committee's recommendations, refer to the Report of the Consumers Price Index Revision Advisory Committee, November 1991. There is a new group, Credit Services, in the index. The group includes mortgage interest, hire purchase and credit costs. The measurements of home ownership costs changed to measure the price of purchasing or construction of new dwellings, alterations to existing dwellings and residential sections. The treatment of fresh fruit and vegetables has changed to reflect the longer availability of fruits and vegetables once considered seasonal. As part of the CPI revision process the department is investigating the usefulness of a CPI for specific groups, such as those aged over 60, to take into account the differences between, for example, retired New Zealanders and the rest of the population.

Analysis of price movements

presents annual and quarterly index numbers for each commodity group for all urban areas combined. In the series for commodity subgroups are given, with their associated weights.

CONSUMERS PRICE INDEX
Percentage change by quarter

Table 24.1. CONSUMERS PRICE INDEX–GROUPS–ALL URBAN AREAS COMBINED*

PeriodFoodHousingHousehold operationApparelTransportationTobacco products and alcoholic drinksPersonal and health careRecreation education and generalised creditAll groups
*Base: Weighted average all urban areas, December quarter 1988 (=1000).
December year annual average—
1983601507628599660512....577
1984636544644630719540....612
1985730638727702838646....707
1986813743834796901740....800
19879218779579251003898....926
19889789819839801013972....985
1989106310341024101310161081107810431041
1990114011061063105710511168115711311105
1991115011201086109010701240124911861134
1992115110771097110310921291142812071145
1993116410941113111411091313141112311160
Quarter—
1991-31 Mar115311321089108110761199122011731131
        30 Jun115011301083109510631210125411841132
        30 Sep115511171088108910641264126111891136
        31 Dec114311011085109610771287126211961135
1992-31 Mar114210851091109510841288140811951140
        30 Jun114110801097110710901288142712041143
        30 Sep116010731100110410941290143512111147
        31 Dec116310711102110711011301144312171150
1993-31 Mar117310701103110111051307142612111151
        30 Jun115710901111112011151310139812361158
        30 Sep116611061118111311081316140812361164
        31 Dec118011101119112011091320141112411166

Opening day of supermarket, Johnsonville.

Table 24.2. CONSUMERS PRICE INDEX–SUBGROUPS–ALL URBAN AREAS COMBINED*

PeriodFoodHousingHousehold operation 
Fruit and vegetablesMeat, fish, and poultryGrocery food, soft drinks, and confectioneryMeals away from home and take-away foodRentalsHome ownershipEnergy/electricityFurnishingsHouse hold supplies and services
*Base: Weighted average all urban areas, December quarter 1988 (=1000).
Expenditure weights2.563.538.713.554.2017.312.776.826.20
Quarter–
1989-30 Sep109611591086106710431048102910301046
        31 Dec104912421097108810521055103010431072
1990-31 Mar98312301114110210631076103410441084
        30 Jun103912351139111710811108104010411089
        30 Sep105712501154112910991126104610381097
        31 Dec104412501151113811111130107310421105
1991-31 Mar101612431158115111161136109910491129
        30 Jun97612331165115611201132110810471111
        30 Sep101612301165115911341113111110321138
        31 Dec101812161144116111181097112810341121
1992-31 Mar97612161152116411191078115110341127
        30 Jun95912151153116811251071115410441129
        30 Sep102512411161117311271061116110451132
        31 Dec99412821160117411281058116710461134
1993-31 Mar105912821163117211381055117510471133
        30 Jun91512791169117711511077122210551124
        30 Sep95512981167118111671092124710571129
        31 Dec91312951172118011801095125610531130
PeriodApparelTransportationTobacco and alcoholic drinksPersonal and health careRecreation, education and generalised credit
ClothingFootwearPublic transportPrivate transportTobacco productsAlcoholic drinksPersonal goods and servicesHealthcareStationery books magazines and newspapersLeisure and recreationEducation and child careGeneralised credit
Expenditure weights4.341.003.0312.362.637.092.742.161.754.410.500.36
Quarter–
1990-30 Sep105710521129102313261123112712211138108017471081
        31 Dec108010591159107013591119114412021159109117491109
1991-31 Mar108610591176105113751134115513021167110818051117
        30 Jun110010711203102914101135116313701201111118331101
        30 Sep109310711211102815651152116513831215111618361066
        31 Dec110010771194104916401157116113901253111518401031
1992-31 Mar110310631221105116411156116317191233112018461024
        30 Jun111410801229105516441155117417471264112917891019
        30 Sep11001080118710711656115411891748128711331789999
        31 Dec11111088115710881660116712001752129211411769988
1993-31 Mar11081068114010961671117212041709126111421816975
        30 Jun11271092116911021675117412101637129411481992994
        30 Sep11221072117010921685117912231643130511451993980
        31 Dec11301079118010921685118412291640131011501999976

shows movements in the general level of prices for all North Island urban areas, all South Island urban areas and for all urban areas combined. It is not possible to compare absolute price levels using the data in this table. In other words, no conclusion can be drawn from these series as to whether it is more expensive to live in the North Island or in the South Island.

Table 24.3. CONSUMERS PRICE INDEX–REGIONAL MOVEMENTS

GroupNorth IslandSouth IslandAll urban areas
*Base: Weighted average all urban areas, December quarter 1988 (=1000).
Percentage changes
December 1992 to December 1993 quarters*
Food0.0-0.7-0.2
Housing3.83.33.6
Household operation1.51.81.5
Apparel1.31.21.2
Transportation0.80.50.7
Tobacco products and alcoholic drinks1.51.41.5
Personal and health care-2.1-2.7-2.2
Recreation, education and generalised credit1.92.22.0
All groups combined1.41.21.4

International comparisons

provides comparable data on the Consumers Price Indexes of selected countries. The published indexes have been converted to a common base of December 1980 quarter (=1000). The figures allow direct comparisons to be drawn between the movements in price levels experienced by domestic consumers in each country. However, the indexes do not convey any information about the relative price levels existing in each country.

CONSUMERS PRICE INDEX
International comparisons, percentage annual change by quarter

Table 24.4. INTERNATIONAL COMPARISON OF CONSUMERS PRICE INDEXES*

YearNew ZealandAustraliaCanadaFrance (Paris)JapanUnited KingdomUnited States
*Base: December quarter 1980 (=1000).
19872189170714911591112814671307
19882329183115511634113615391359
19892462197016291693116216591424
19902613211217071750119818171498
19912681218118031808123819231559
19922716220218301861125919941604

Average retail prices

shows food prices in each of the years between December 1989 and December 1993. Prices other than for food are shown in and are averages prevailing in the calendar quarter. These weighted average prices of selected items are used in the calculation of the Consumers Price Index and provide reliable movements in price levels when compared with average prices for earlier periods. They are not designed to give a statistically accurate measure of absolute average transaction prices at the stated time. The available and typically purchased quantity of any good will differ from shop to shop and over time. For the purposes of price comparison therefore, it is necessary to select a nationally dominant quantity as a standard to which the prices of the various typical sizes and quantities can be scaled. Significant consumer cost benefits can sometimes result from the purchase of larger quantities (eg special prices for two products). Therefore, price movements of individual items on the table can sometimes result solely or partly from changes to the quantities of a good that consumers typically buy and may not reflect only the price movements of quantities stated.

Table 24.5. RETAIL PRICES OF SELECTED FOOD ITEMS

CommodityUnitDec 1989Dec 1990Dec 1991Dec 1992Dec 1993
$
Apples, eatingkg3.513.062.943.132.82
Bananaskg2.562.432.062.261.62
Orangeskg2.702.432.602.261.88
Cabbagekg0.700.810.710.630.64
Carrotskg1.452.081.521.651.08
Onionskg1.441.692.131.272.87
Potatoeskg1.071.141.121.140.93
Peaches, canned425 g tin1.771.811.851.831.90
Peas, green frozen1 kg pkt2.532.422.132.042.01
Beef, blade steakkg10.069.809.7510.359.84
    corned silversidekg9.559.128.729.388.77
    prime rib rolledkg8.578.087.938.988.50
    porterhouse steakkg15.1614.9514.3216.0515.76
    rump steakkg12.5812.5812.3913.6012.96
Mincekg7.316.836.467.256.84
Pork, cut leg, shank endkg9.639.859.689.599.65
    loin chopskg10.5110.9510.6310.7511.13
Bacon, middle rasherskg16.3216.8817.1116.9616.87
Sausages, beefkg4.194.284.014.374.39
Fish, wet, filletedkg14.3014.5814.8414.2414.45
    salmon, canned210 g4.013.212.442.962.77
Chicken, deep frozen no. 8each7.737.927.667.167.34
Eggs, min. wght. 636 g /dozdozen2.822.972.632.672.63
Milk 1 litre1.121.191.191.221.21 
Butter, standard500 g1.831.821.861.921.95
Cheese, cheddarkg7.598.428.027.927.71
Biscuits, chocolate wheaten200g1.751.861.882.002.01
Bread, white, sliced750 g1.631.721.761.831.85
Cake, block, light fruit450 g3.753.944.033.974.02
Breakfast flake biscuits1 kg pkt3.874.153.974.034.07
Flour, white1.5 kg pkt1.911.941.781.801.78
Rice, long grain white500 g0.900.860.830.840.81
Honey500 g2.412.472.282.202.42
Coffee, instant, refill100 g pkt3.283.253.193.093.09
Tea250 g pkt2.322.402.302.302.31
Margarine, table500 g1.972.041.991.831.82
Spaghetti in tomato sauce440 g tin1.351.421.381.431.46
Sugar, white1.5 kg pkt2.132.112.001.861.95
Ice cream, vanilla2 litre3.473.553.343.203.19
Chocolate, block275 g3.243.473.383.473.51
Meals, coffee and 2 sandwichestotal3.243.453.613.703.80
Takeaways, hamburgereach2.342.472.512.482.29
    meat pie, hoteach1.501.581.581.611.65

CONSUMERS PRICE INDEX - ALL GROUPS
Long-termed linked series

Table 24.6. RETAIL PRICES OF SELECTED ITEMS

CommodityUnitDec 1989Dec 1990Dec 1991Dec 1992Dec 1993
  $$$$$
Paint, house, white acrylic4 litres69.3670.3469.6063.0968.10
Concrete blocks, 390 mm x 190 mm x 140 mmper 100240.41259.97264.71266.75273.89
Timber, dressed, 150 mm x 25 mm, finishing tanalised, radiata pineper 100 lineal metres453.33481.89533.17565.42910.31
Electric range, 4 elements, automaticeach1,241.401,284.741,288.631,312.061,324.79
Television set, colour 53-65 cmeach1,479.341,310.071,139.331,043.101,023.51
Fork, table, stainless steel medium qualityeach2.252.432.462.371.65
Detergent, dish washing990 mls2.823.093.053.133.08
Soap powder1 kg3.643.903.883.954.19
Electric light bulb100 watt1.031.101.111.111.08
Fly spray, aerosol300 ml can3.774.084.023.884.28
Battery, 1250 super heavy dutytwin pack2.772.922.872.852.87
Postage, letter, standard posteach0.400.400.450.450.45
Public broadcasting fee, colour television1 year110.00110.00110.00110.00110.00
Pantyhose, 15 denier, average size, medium qualitypair4.124.214.404.434.42
Shorts, casual sports, boys, medium qualitypair13.7115.1416.0716.1316.14
Wool, hand knitting, crepe, double knit50g4.164.444.594.534.32
Petrol, 96 octane10 litres9.1210.7010.0610.349.67
Cigarettes, filter tipped pkt of 204.054.355.255.325.40 
Tobacco, cigarette50g8.649.4411.4911.6211.79
Beer in public bar, glass200 mls0.981.021.121.141.17
Toilet soap150 g0.740.770.740.710.72
Toilet paper, two ply4 rolls2.792.962.942.982.87
Hair cut, women's weteach27.5829.3129.7030.3930.98
Man's dryeach12.3612.9413.4813.9214.01
Soluble aspirinpacket of 242.192.242.332.382.37
Envelopes, 146 mm x 89 mm, gummedpkt of 201.331.431.491.461.46
Newspaper, daily, localeach0.470.480.560.560.57
Paperback, noveleach12.4813.4114.5215.4715.93
Rugby club subscription, per annumper member63.9069.5671.0474.4075.02
Tennis club subscription, per annumper member141.14153.68158.68164.61169.50

The cost a of a metre of 4 x 2 tanalised timber almost doubled within the first four months of 1993.

24.2 Producers prices

Producers Price Index

The Producers Price Index (PPI), compiled by Statistics New Zealand, is a series of quarterly economic indicators designed to measure changes in the prices of non-labour inputs paid for by producers in the economy, as well as the prices that they receive for their outputs.

The format of the PPI is based on the economic activities assigned in the New Zealand Standard Industrial Classification. Indexes of changes in input prices are provided for 24 industry groups, which correspond to the industry groupings of the New Zealand National Accounts. Output indexes are published only for the 21 market-oriented industry groups.

Data from economic censuses and surveys of business activity undertaken by Statistics New Zealand form the basis for determining the relative importance (or weights) of commodities within the index. This data is supplemented by information obtained from many other sources. The specifications of commodities to be price-surveyed are determined in consultation with the suppliers of the goods and services to ensure that they are representative. The index weights and price-surveyed commodities are revised periodically to reflect changes in purchasing and production patterns.

The weights assigned to the industries to obtain the all-groups index are based on data from the 1983-84 national accounts.

The prices used to calculate the output indexes are those prevailing at the factory door, the farm gate, or as close to this point as possible. Sales taxes, excise duties, subsidies and GST are excluded. Input prices included sales taxes prior to the December 1986 quarter, and excise duties, but generally exclude GST. (GST is, however, included for exempt industries as it is not recoverable.) Imported commodities include freight, insurance and customs duty.

The PPI can be used in the analysis of inflationary trends, in economic forecasting and in estimating economic growth, i.e. as deflators used to derive constant price (or, effectively, volume) indicators. In addition the index is widely used to determine the increases allowable under escalation clauses in commercial contracts.

Table 24.7. PRODUCERS PRICE INDEX–INPUTS*

 Quarter ended
Industry groupMar 1992Jun 1992Sep 1992Dec 1992Mar 1993Jun 1993

*Base: December quarter 1982 (=1000).

Includes industry groups 5 to 13.

Includes industry groups 1 to 21.

1Agriculture160716341663168217151738
     Sheep and beef farming162516501680169917541770
     Dairy farming159616441677170617151760
     Horticulture farming164316441661167016771677
     Cropping and other farming148614941548155415841627
     All farming160816361665168517181742
     Agricultural contracting156115681583159515971605
2Fishing and hunting148715061525148914801403
3Forestry and logging167716891692169917551801
4Mining and quarrying155915681574157315781570
5Food, beverages and tobacco159415931650168716821661
     Primary food processing155315521637169916971661
     Other food processing156215631571156115481555
6Textiles, apparel and leather147615161504149714871451
7Wood and wood products182118421843185418952112
8Paper, printing and publishing170117001702168917201694
9Chemicals, petroleum and plastics128413011318134713141313
10Non-metallic mineral products169216981715171617411739
11Basic metals157015901593158616021559
12Machinery and metal products172017361755175017631785
13Other manufacturing159115981602160316131616
14Electricity, gas and water180217551761182918381844
15Construction173717351738174417511756
16Trade, restaurants and hotels193519431946196519691972
     Wholesale and retail trade199319971996200920152021
     Hotels, restaurants, takeaways178718051820185118471842
17Transport and storage162316291635165416731718
    Road transport151415071521152615221522
     Transport and storage other than road166516761679170417331796
18Communication153115441540156615531545
19Insurance and financing221222082200222822322230
20Ownership of dwellings206520852083209021082174
21Community and personal services182818371841186018711886
22Central government178417921798181018211831
23Local government172017301738175317611766
24Private non-profit services193919421947195419541973
 All manufacturing groups†158215951617162916311632
 All market groups‡172317321745176017681776
         All industry172817371749176517721780

Table 24.8. PRODUCERS PRICE INDEX–OUTPUTS*

 Quarter ended
Industry groupMar 1992Jun 1992Sep 1992Dec 1992Mar 1993Jun 1993

*Base: December quarter 1982 (=1000).

Includes industry groups 5 to 13.

Includes industry groups 1 to 21.

1Agriculture148315011553159516201570
2Fishing and hunting190319902085195719151835
3Forestry and logging270327262731R2744R31624120
4Mining and quarrying130713351362134813371299
5Food, beverages and tobacco169917081767179418061803
     Primary food processing157915791660169717211710
     Other food processing185818821901191119031913
6Textiles, apparel and leather149015221517150615011478
7Wood and wood products175617721778179018602008
8Paper, printing, and publishing176517681767177017621762
9Chemicals, petroleum and plastics141014151418143014361427
10Non-metallic mineral products165616551653165116901694
11Basic metals145214931502148714841451
12Machinery and metal products174017621775179618261873
13Other manufacturing160916101623163016351646
14Electricity, gas and water184018141821184818541869
15Construction170016941695170517041708
16Trade, restaurants and hotels170217161730175617771776
     Wholesale and retail trade163516531671170117241725
     Hotels, restaurants, takeaways195519531954196619781979
17Transport and storage160716051585158115761572
     Road transport174617331719171217091695
     Transport and storage other than road152515281506150414971498
18Communication154715071505150315031508
19Insurance and financing234623922385240524262404
20Ownership of dwellings275727832768276827742777
21Community and personal services205820712067207420892097
 All manufacturing groups†164016551675168717021715
 All market groups‡177017831795181018271836

24.3 Capital goods prices

The Capital Goods Price Index (CGPI) reflects the price movements of fixed capital assets purchased by New Zealand businesses and government. In addition 60 separate indexes are produced for different types of assets, ranging from residential and non-residential buildings to food processing machinery and commercial vehicles. Quarterly index numbers for these asset-type indexes are available from the December 1979 quarter. Six group indexes and the all-groups index have been produced from the December 1989 quarter.

The relative importance (or weights) of the commodities within each of the asset-type indexes has been derived from statistics on external trade, manufacturing, and building and vehicle registrations. This data has been supplemented with information obtained in discussions with manufacturers, importers, wholesalers and retailers. Generally data for several years has been used, as expenditure on capital goods can be irregular. The prices used in the calculation of the quarterly indexes are those paid by the final user. Sales tax was included prior to the December 1986 quarter, but GST is excluded–for registered persons it is recoverable.

Table 24.9. CAPITAL GOODS PRICE INDEX*†

 Quarter ended
Asset groupMar 1992Jun 1992Sep 1992Dec 1992Mar 1993Jun 1993Sep 1993

*Base: December 1989 quarter (=1000).

This index does not purport to reflect all price changes in building work because of measurement difficulties, particularly with respect to discounts on labour and material prices.

Residential buildings1048105010481056105610711102
Non-residential buildings1019101010111011100810131026
Other construction1048104610511053105910531054
Land improvements1064106610761076108510891116
Transport equipment1076110111181128114711661177
Plant, machinery, and equipment1078108811001104110711081112
All groups1058106410731077108210881096

Contributor

24.1-24.3 Statistics New Zealand.

Further information

Key Statistics. Statistics New Zealand (monthly).

Report of the Consumers Price Index Advisory Committee (Parl paper G28a, 1988).

Chapter 25. Money and banking

Three major banks grace Wellington's skyline.

25.1 Financial institutions

The financial sector has undergone a period of dramatic change since 1984, the culmination of a process of gradual evolution and reform which started over a decade earlier, but was substantially accelerated from mid-1984. Following the change of government in that year, direct controls on the financial sector were largely removed.

The impact on the financial system of these changes in the way policy is implemented has been substantial. The result has been rapid growth in money market activity since 1984, particularly in the area of foreign exchange; the development of a sizeable secondary market in government securities, the introduction of a range of new financial instruments, including forward contracts, options, and exchange rate futures; and the growing use of such hedging devices to handle interest rate and exchange rate risk.

The removal of direct controls and subsequent legislative amendments to make financial markets more contestable have resulted in significant institutional changes within the finance industry. The Reserve Bank of New Zealand Act 1989 established a framework for the registration and supervision of banks, and for the disclosure by these banks of financial information. This Act contained provisions enabling suitably qualified financial institutions to become ‘registered banks’. At the end of June 1993 there were 20 registered banks, four of which were the former trading banks. The remaining 16 banks have been registered since the legislation came into force in 1987. The Trustee Banks Restructuring Act 1988, and the Building Societies Amendment Act 1987 also removed distinctions between various types of financial institutions.

Reserve Bank of New Zealand

The Reserve Bank of New Zealand, the central bank, was established in 1934 as a privately-owned institution, but became fully state-owned in 1936. The bank has a board of directors comprising the Governor, the two Deputy Governors, and between four and seven nonexecutive directors.

Under the Reserve Bank of New Zealand Act 1989 the main functions of the Reserve Bank are:

  • To formulate and implement monetary policy to achieve and maintain stability in the general levels of prices;

  • To promote the maintenance of a sound and efficient financial system, including monitoring the prudential soundness of registered banks;

  • To manage the note and coin issue; and

  • To act as the central bank of New Zealand;

Other important functions undertaken by the Reserve Bank include:

  • Collecting information and data relating to the business of financial institutions;

  • Providing policy advice to the Minister of Finance;

  • Acting as a lender of last resort; and

  • Implementing exchange rate policy.

The Reserve Bank is required, under the 1989 Act, to prepare a monetary policy statement once every six months. These statements review the conduct of monetary policy over the previous six months and outline how monetary policy is to be implemented over the next six months, consistent with the bank's inflation objective.

Bank registration and supervision. The Reserve Bank of New Zealand Act 1989 confers on the Reserve Bank the function of registration and supervision of banks for the purposes of:

  • Promoting the maintenance of a sound and efficient financial system.

  • Avoiding significant damage to the financial system that could result from the failure of a registered bank.

Accordingly, the bank supervision and registration framework operated by the Reserve Bank does not aim to protect depositors or individual banks. Instead the main focus is on ensuring that the banking system as a whole continues to operate effectively and efficiently, since any major disruption in the provision of financial services or any lack of efficiency in the way services are delivered could potentially impose significant costs on other sectors of the economy. In the event that a bank does fail, the Reserve Bank has crisis management powers which allow it to take steps to minimise any flow on effects to the rest of the financial sector.

Registered banks are required to meet certain minimum standards which are designed to reduce, but not eliminate, the probability of a bank failure. However, the approach to supervision is generally less regulatory in nature than is the case in some other countries where supervision has more explicit and direct depositor protection objectives. There is a strong emphasis on ensuring that market disciplines facing depositors, bank management and boards are not undermined, in view of the important role they have to play in encouraging prudent behaviour.

There is a fairly open policy on the entry of new registered banks in New Zealand, with no upper limit on the number of banks which can be registered. This policy recognises that competitive forces encourage efficiency and innovation and that overseas banks coming into New Zealand can bring valuable expertise to the local market. Applicants for registered bank status must satisfy the Reserve Bank that they are primarily involved in providing financial services. In addition, when considering an application for registration, the Reserve Bank is required to have regard to:

  • Incorporation and ownership structure.

  • Size of the business (a minimum capital of $15 million is normally required).

  • Standing or reputation in the financial market.

  • Ability to carry on business in a prudent manner.

  • Law and regulatory requirements in the home country if the applicant is an overseas bank.

Registered banks are the only financial institutions able to use the word ‘bank’ in their name. Apart from this there are no restrictions applied to non-bank financial institutions, which are able to carry out any of the functions normally conducted by banks. Registered banks are required to satisfy conditions of registration which include minimum requirements in respect of capital adequacy, exposure concentration and separation of business from other interests of the owner. Other conditions applied relate to ownership and internal controls. The Reserve Bank monitors the financial condition of registered banks and their adherence to minimum requirements by way of regular prudential returns. In addition it holds regular consultations with individual registered banks in order to obtain a good understanding of relevant developments affecting each bank and the financial market as a whole.

Over recent years there has been a move towards greater international co-operation among supervisory authorities. New Zealand has acknowledged the principles of the ‘Basle Concordat’ promulgated by the Basle Committee on Banking Supervision which sets down a broad framework for the supervision of banks operating internationally. The Reserve Bank maintains close relationships with other supervisors, particularly the Reserve Bank of Australia which acts as parent supervisor of some of the major banks operating in New Zealand.

In response to the Reserve Bank's plea for the return of 5 cent coins, a customer pays for $18 worth of petrol with small change.

The Reserve Bank of New Zealand Act 1989 makes provision for the Reserve Bank to require registered banks to disclose a range of financial information. It also includes an empowering provision under which registered banks may be required to undergo an independent assessment of their creditworthiness by a rating agency. These provisions have not yet been put into effect, although considerable progress has been made towards that end. Once these provisions come into force it is likely that there will be less need for some of the existing supervisory mechanisms. The Reserve Bank Act gives the Reserve Bank wide powers in relation to banks which are conducting their business in a manner which is prejudicial to the soundness of the financial system, which are insolvent or likely to become insolvent, or are about to suspend payment. These include the ability to give advice and directions, the power to appoint a person to investigate the affairs of the registered bank and the power to appoint a statutory manager.

Table 25.1. ASSETS OF THE RESERVE BANK

As at 30 JuneDenominated in foreign currencyDenominated in New Zealand dollars
Current account and advancesMarketable securitiesIMF holdings of SDRsForeign assetsAdvances
Settlement institutions*Crown Settlement account*Advances to Treasury 
*Includes government stock buy backs, one day interbank advances and accrued interest.
19902,3861,937121944901,275
19911,8652,21712668-1,032
19921,5052,81222743-1,124
19931,6742,949111,285-1,082
 Denominated in New Zealand dollars
 Investment in NZ
As at 30 JuneGovernment securitiesOther‡Fixed assets and inventoriesOther assets§Total assets

Government bank accounts.

Includes marketing board loans, marketable securities and accrued interests.

§Includes small amounts of foreign currency banknotes, staff loans and sundry debtors.

Source: Reserve Bank of New Zealand.

19901,23852112337,721
19911,3033987277,240
19921,2963266197,601
19931,280272128,359

Thumb prints are used to curb cheque fraud in a Wellington supermarket.

Table 25.2. LIABILITIES OF THE RESERVE BANK

 Denominated in foreign currencyDenominated in New Zealand dollars
As at 30 JuneCurrent*Long termAllocations of SDRsReserve billsGovernment‡Stabilisation account

*Overseas liabilities.

Includes Crown settlement account.

Domestic liabilities.

19904063,4833181,195228160
1991283,733322990397-
19921103,8303751,127517-
19933463,9113671,056833-
 Denominated in New Zealand dollars
As at 30 JuneSettlement institutionsOther§Currency in circulationOther liabilitiesCapital and reservesTotal liabilities

§Includes IMF number 1 account.

Includes accounts payable and staff deposits.

Source: Reserve Bank of New Zealand.

19903301,1781645577,721
199166481,22694217,240
19921401,28383587,601
19933651,283324628,359

The New Zealand financial system. After the banking industry was deregulated in the 1980s the number of registered banks increased significantly, partly as a result of non-bank financial institutions obtaining registered bank status and partly due to an inflow of foreign banks. Non-bank financial institutions declined in importance following deregulation as most of the larger ones became banks, while some of the banks which owned separate finance companies consolidated those operations within the bank itself.

More recently there has been some rationalisation in the banking sector, with a number of banks acquiring other banks, in some cases with the intention of ultimately merging the operations of the two entities. In addition, a number of the overseas banks which entered New Zealand in the 1980s have subsequently withdrawn from the market or scaled back their operations. The number of banks has not declined significantly as a result of this process (falling from 21 as at August 1990 to 20 as at June 1993) but there has been a marked reduction in the number of banking groups. As at June 1993 there were 15 banking groups compared with 21 in August 1990. The number of banks per capita in New Zealand will still be relatively high by intentional standards, even after planned mergers are completed. In part this reflects the open nature of the registration regime. The non-bank financial sector has continued to decline in importance and is small compared with that in Australia, for example.

The New Zealand banking system is characterised by a high degree of foreign ownership, particularly Australian ownership. As at December 1992 around 90 percent of the assets of the New Zealand banking system were under the ownership of a foreign bank parent, with approximately 65 percent being under the ownership of an Australian bank parent. This provides a source of strength for the system, providing local banks with access to capital resources and banking expertise.

The registered banks operating in New Zealand as at June 1993 are:

  • Multi-purpose banks–ANZ Banking Group (New Zealand) Limited; Bank of New Zealand; National Australia Bank (New Zealand) Limited; The National Bank of New Zealand Limited; and Westpac Banking Corporation.

  • Wholesale banks–Bankers Trust New Zealand Limited; Banque Indosuez; Barclays Banks PLC; BNZ Finance Limited; Citibank NA; Primary Industry Bank of Australia; The Hong Kong and Shanghai Banking Corporation; and The State Bank of South Australia.

  • Mainly retail banks–ASB Bank Limited (and its subsidiary Westland Bank Limited); Countrywide Banking Corporation Limited; Post Office Bank Limited; The Rural Bank Limited; Trust Bank New Zealand Limited; TSB Bank Limited; and United Bank Limited.

Fifteen of the 21 registered banks are members of the New Zealand Bankers' Association, a professional industry association established in 1891. The association represents and promotes the interests of the banking industry and delivers to its members those services effectively undertaken on an industry basis.

Digitalised photo credit cards were introduced in 1993.

Access to branches and services. Between them, New Zealand's 21 banks operate more than 1,550 customer service outlets throughout the country. There are banking outlets at either end of New Zealand from Kaitaia in the north to Stewart Island in the south. These extensive branch networks were originally developed in response to the nature of New Zealand's geography and its scattered population. While some banks are now looking to replace full branch operations in remote areas with third-party agencies or with more cost-effective outlets incorporating electronic services, other newer entrants are expanding their branch networks.

An electronic banking system enables customers to access their accounts outside normal banking hours, without going near their branch. The first automated teller machines (ATMs) were introduced into New Zealand in mid-1979. By the end of 1982, all the major New Zealand trading banks offered ATM services. The number of machines steadily increased through the 1980s, as new retail banks emerged after deregulation. There has been a slight rationalisation of ATM networks recently as a result of mergers and the steamlining of bank operations. There were 941 bank-owned automated teller machines in New Zealand at 31 March 1993.

In 1984 Electronic Funds Transfer at Point of Sale (EFTPOS) was introduced in New Zealand as a means of payment for retail goods and services. The banks agreed in 1990 to integrate their EFTPOS services and growth of the network has since been rapid. There are currently between four to five thousand EFTPOS terminals in use in New Zealand at supermarkets, service stations, liquor markets and a range of other retail outlets. There are approximately 4.5 million payments transacted through EFTPOS per month, at an average value of $39 per transaction. The average total value of EFTPOS transactions per month is estimated at $180 million.

Credit cards provide an increasingly popular means for people to buy goods and services without having to handle cash. It is estimated that there are up to 1.3 million cards on issue nationally and that more than 55,000 merchants in New Zealand accept credit cards as a form of payment. Estimates based on banking industry sources indicate an average transaction amount of around $85 per transaction.

Industry self-regulation. In 1992 the New Zealand Banker's Association introduced two related self-regulatory measures. From March 1992, a Code of Banking Practice establishing minimum standards of practice to be observed by banks in their dealings with personal customers and covering the responsibilities of banks and their customers (including the protection of customer information), the use of EFT (Electronic Funds Transfer) cards and guidelines for customer complaints procedures, came into force. The code is linked to an independent external complaints review process, the Banking Ombudsman scheme, which was operational from July 1992. The Banking Ombudsman is empowered to rule on complaints involving claims of not more than $100,000 related to the banking services and products of participating banks, which have been considered by the internal complaints procedures of banks and remain in dispute. All 15 current members of the New Zealand Bankers' Association are participants in the Code of Banking Practice and the Banking Ombudsman scheme.

An ATM demonstrator machine. These machines have been installed in some banks to increase ATM use–it is thought that one in five people with ATM cards don't use them due to ‘technofear’.

Industry performance. As a result of continuing low rates of inflation (1.0 percent at March 1993) interest rates have continued to fall over the past several years, with real interest rates for borrowers between 7 percent and 10 percent per annum.

Aggregate banking system capital adequacy has been above minimum requirements since the introduction of Basle-based reporting in 1989. Average capital adequacy of New Zealand banks at December 1992 was 14 percent.

Average net profit after tax as a percentage of total assets employed for New Zealand banks was 0.9 percent, comparing favourably internationally with UK (0.6 percent), US (0.5 percent) and Australian banks (0.6 percent). Banks have also recorded a growth in total assets with an average increase to 7.5 percent compared with 4.2 percent in 1992.

Staff numbers for the member banks of the New Zealand Banker's Association stood at 26,745 at 31 March 1993, compared to 28,852 for 1992.

Table 25.3. LIABILITIES AND ASSETS OF M3 FINANCIAL INSTITUTIONS

 As at June quarter
Item199119921993

NB: Detailed data is not available prior to 1991 as recent revisions have not been backdated.

*Includes trade creditors/debtors, accounts payable/receivable, and items in transit, timing and statistical adjustments.

Any two entities, i.e., companies, organisations or individuals with the same shareholders and/or any company which holds 20 percent or more of the paid up capital of another company (the associated). A subsidiary is an associate.

Source: Reserve Bank of New Zealand.

Liabilities– NZ$(million) 
NZ dollar funding–   
    NZ residents56,56056,46758,350
    Non-residents5,4007,8299,760
    Unallocated-- 
        Total, NZ$ funding61,96064,29468,110
Foreign currency funding–   
    NZ residents3,9122,7542,391
    Non-residents5,6526,6597,323
    Unallocated---
    Total9,5649,4139,714
Capital and reserves5,6056,0746,249
Miscellaneous*1,5481,9351,557
        Total liabilities78,67781,76685,630
Funding from associates   
Unused committed borrowing Lines and standby facilities available to surveyed institutions1,467647870
Assets NZ$(million) 
NZ Government securities (includes Treasury bills)7,2298,9249,253
NZ currency230262299
Balances with the Reserve Bank1,1241,1661,059
NZ dollar claims–   
    NZ residents62,42464,09566,382
    Non-residents9051,078784
    Unallocated---
        Total, NZ$ claims63,32965,17367,166
Foreign currency claims   
    NZ residents2,1212,1642,936
    Non-residents821718884
    Unallocated---
    Total2,9422,8823,820
Foreign (currency) fixed assets and equity investment1,1481,154266
Shares (in NZ companies)1,9431,3071,581
Fixed assets (in NZ)1,7561,5971,518
Miscellaneous*-1,025-699668
        Total assets78,67781,76685,630
Financial claims on associates†3,1032,7903,522

Other financial institutions

Prior to 1984, a range of regulatory distinctions existed between different types of financial institutions. Aside from trading banks, there were also private savings banks, building societies, merchant banks, stock and station agents and finance companies. The activities that each of these institutions could engage in was prescribed by regulation. Since 1984, however, the removal of most distinctions between types of institutions has seen a marked change in the operations of many of these institutions. There are currently only two formal categories of financial institutions–registered bank (see above), and other financial institutions. These other institutions operate in a range of areas, and can provide full banking services or a sub-set of such services as they choose.

Many institutions have become registered banks, even if they do not offer a complete range of services to both the business and household sectors. Consequently, the share of the total banking business that registered banks have has increased in the past few years. In addition, a number of offshore institutions have set up operations in New Zealand as registered banks–offering either a full or partial banking service. Distinctions between other types of financial institutions have become blurred in recent years, with institutions able to compete more or less on an equal footing.

Traditionally, the financial institutions other than trading banks have specialised in a particular area of banking. Private savings banks were bankers to the household sector– accepting deposits and making loans to individuals. Building societies specialised in providing home mortgage services; merchant banks were largely involved in corporate financing activities and trade financing; finance companies tended to specialise in hire-purchase finance, but were also involved in corporate finance; while stock and station agents operated in the provision of retailing, brokering and financial services to the rural sector.

In recent years, however, institutions have been free to develop in those areas where they believe they have a competitive advantage. Consequently, while some institutions have remained focused on their core business activities, others have endeavoured to diversify their operations.

Banking and finance industry statistics

The Reserve Bank publishes some statistics on financial sector activity while Statistics New Zealand publishes information on economic activity. Financial information is provided in the quarterly Reserve Bank Bulletin, and (following) provides a summary. Economic statistics on the banking and finance industry are collected by the Statistics New Zealand as part of two broad economic surveys of New Zealand businesses and industries–the five-yearly Economy Wide Census and the annual Enterprise Survey (see section 27.1, Business statistics).

Coverage: Banking finance and investment. The operation of the central bank, trading banks and recognised savings banks which are empowered to issue cheques, accept demand and time deposits and extend loans. Also non-bank enterprises holding or dealing in finance and investments activities (excluding holder investing).

Table 25.4. FINANCE (EXCLUDING HOLDER INVESTING): STATISTICAL SUMMARY

Statistical item1988-891989-901989-901990-91
 number
Group enterprises279280280276
Enterprises within these group enterprises641685685570
Enterprises not owned by group enterprises1,2391,1801,1801,365
Activity units (including ancillaries)4,1454,1894,1894,286
Full-time equivalent persons engaged40,29439,70739,70739,886
Income– $(million)  
    Sales of goods and services1,444.4889.6882.51,766.2
    Interest, etc received10,495.411,893.811,702.913,282.5
    All other income763.2755.4755.4546.0
        Total sales and other income12,703.013,538.813,340.815,594.7
Operating expenditure–
    Salaries and wages1,268.31,300.01,296.21,378.3
    Depreciation178.5177.4176.8201.5
    Interest, bad debts, etc7,554.58,195.78,008.210,354.5
    Indirect tax22.135.835.637.1
    Purchases11.218.018.04.6
    All other operating expenditure2,615.12,698.42,693.42,740.0
        Total operating expenditure11,649.812,425.112,228.214,716.1
Working proprietors/partners salaries and wages29.945.745.752.8
Net profit before tax, after deducting working proprietors/partners salaries and wages1,023.31,067.91,066.9826.0
Economic values–
    Operating surplus1,236.51,557.31,554.5835.1
    Value added2,850.33,200.33,199.02,578.0
Fixed tangible assets–
    Purchases during the year322.5355.7355.2337.3
    Sales during the year157.6199.8199.6336.0
    Shareholders' funds, etc10,883.47,105.37,081.212,110.6
    All other liabilities78,853.390,187.589,860.2100,892.3
        Total capital and liabilities89,736.797,292.896,941.4113,002.9
Fixed tangible assets1,532.11,545.51,543.71,457.7
All other assets88,204.695,747.395,397.7111,545.2
        Total assets89,736.797,292.896,941.4113,002.9
Ratios–
    Value added per full-time equivalent persons engaged70,736.480,597.880,403.964,634.3
    Value added per $1,000 of salaries/wages paid2,247.32,461.83,192.61,870.4
    Total sales and other income per full-time equivalent persons engaged315,257.7340,967.8335,981.6390,981.7
  percent  
    Net profit per total sales and other income8.17.98.05.3
    Total salaries and wages per total sales and other income10.09.69.78.8
    Value added per total sales and other income22.423.623.916.5
    Shareholders' funds per total capital and liabilities12.17.37.310.7
    Fixed assets per total assets1.71.61.61.3

Security guard at work, Wellington.

25.2 Money

Currency

The present decimal currency system was introduced in 1967, when the dollar as the monetary unit replaced the previous system of pounds, shillings and pence.

The Reserve Bank has the sole right to issue banknotes and coin in New Zealand. Issue is affected by both seasonal and general economic influences, notably changes in the level of economic activity and in domestic prices. Demand for currency is also influenced by changes in methods of payment, such as the increasing use of credit cards and the automatic crediting and debiting of payments to cheque account balances.

Notes and coin form only a relatively small part of the public's holdings of money balances, amounting to about 15 percent of the narrowly defined money supply (M1) and roughly 2 percent of the broad money supply (M3). The total value of notes and coins on issue from the Reserve Bank as at 9 August 1993 was $1,333 million.

During 1992 the Reserve Bank commenced introduction of a new series of notes, incorporating the first substantial changes to notes since the introduction of decimal currency in 1967. The new notes contain additional security features. Portraits on the notes are: $5, Sir Edmund Hillary; $10, Kate Sheppard; $20, Her Majesty, The Queen; $50, Sir Apirana Ngata; and $100, Ernest, Lord Rutherford of Nelson. The Queen also features on the watermark of all the notes. Rare New Zealand birds are featured on the backs of the notes. The $5 note was released on 10 July 1992, the $20 on 1 September 1992 and the $50 and $100 on 3 November 1992 and the $10 on 18 May 1993.

Monetary policy

Monetary policy is implemented by the Reserve Bank under the terms of the Reserve Bank of New Zealand Act 1989 and the Policy Targets Agreement between the Governor and the Minister of Finance. The bank's objective is to maintain price stability (0 to 2 percent annual CPI increases). Consumer price inflation is currently within the 0 to 2 percent range (see section 24.1 Consumer Prices).

Since 1985 monetary policy has operated primarily by controlling the level of the monetary base (liquid claims on the Reserve Bank). The definition of the ‘monetary base’ currently used by the Reserve Bank is ‘primary liquidity’. Since late 1988, this aggregate has comprised the cash balances held by settlement banks at the Reserve Bank plus those Reserve Bank bills (of 28 or fewer days to maturity), which the Reserve Bank is prepared to repurchase at a discount at any time, and which therefore constitutes a potential source of settlement cash for the financial system. For a description of the conduct of monetary policy prior to 1984 see the 1987-88 Yearbook.

Financial institutions seek to hold primary liquidity as a buffer stock in order to enable them to settle daily transactions with the Reserve Bank and other financial institutions. By controlling the supply of settlement cash and primary liquidity relative to demand, the Reserve Bank can influence short-term interest rates and other variables which affect inflation: most notably, the overall interest rate structure, money and credit growth and the exchange rate.

The Reserve Bank controls the supply of settlement cash, through its daily open market operations (i.e. the purchase or sale of Treasury bills, government stock or ‘sell-back’ agreements, i.e. short-term loans secured against Treasury bills or government stock). The supply of Reserve Bank bills is controlled through twice-weekly tenders. By selling securities the Reserve Bank takes settlement cash out of the system and this in turn affects interest rates and the exchange rate and keeps the money supply tight. This in turn influences nominal economic activity and inflation. The other instrument used to affect interest rates is the discount margin–the penalty incurred by institutions when forced to sell their holdings of Reserve Bank bills before maturity. When making its assessments of monetary conditions, the Reserve Bank monitors a wide range of indicators, including the exchange rate and the level and term structure of interest rates.

Price stability was effectively achieved at the end of 1991 and has been maintained since then. The new Policy Targets Agreement signed in December 1992 formally orientates the Reserve Bank towards maintaining rather than achieving price stability. Monetary conditions have remained consistent with the maintenance of price stability over much of this period, apart from a brief period at the beginning of 1993. A sharp fall in the exchange rate in January 1993, which followed several instances of exchange rate weakness over the latter part of 1992, threatened the inflation target, and led the Reserve Bank to tighten monetary policy. As the exchange rate subsequently recovered, the Bank was able to return monetary settings to their pre-January levels. Over the last six months the exchange rate has appreciated further and short-term interest rates have fallen significantly.

Table 25.5. MONEY SUPPLY AND CREDIT AGGREGATES

 As at 31 March
Selected aggregates199119921993

*Readily available money supply.

Broad money supply, including term deposits.

Source: Reserve Bank of New Zealand.

  $(million)
Monetary
    Notes and coin held by the public1,1191,0201,081
    Transaction account balances8,2918,2988,653
    Less, inter-institutional transaction balances479156654
    Less, government deposits191021
        M1*8,9129,1529,059
    Other funds51,79056,60456,772
    Less other inter-institutional funding9,1838,5776,307
    Less government deposits---
*    M3†51,51957,17959,524
Credit
    Gross claims–
      (a) Surveyed institutions62,60665,99167,425
      (b) Other262016
 62,63266,01167,441
Less inter-institutional claims7,7258,5327,229
        Private sector credit54,90757,47960,212
Marketing and stabilisation-71271
Claims on government–
    (a) Surveyed institutions5,9088,0599,104
    (b) Reserve Bank2,4802,3861,518
    (c) Coins in circulation100139149
        Total8,48810,58410,771
        Domestic credit63,32468,09070,984

Government securities market

The Government currently sells three types of debt instruments to meet its core financing requirements:

  • Government stock, which is a medium-term (generally three to ten-year) instrument paying a fixed coupon interest rate, and aimed at the wholesale market (mainly large institutional investors). Since September 1983, government stock has been sold through regular, competitive tenders, whereby the price, or the effective yield, is determined by market bids.

  • Treasury bills, which are short-term (usually less than 14 months to maturity) wholesale debt instruments. They are used to meet the Government's seasonal financing needs during the year and, also as part of the Government's baseload funding requirement. (Bills are ‘zero coupon’ instruments, i.e. they pay no interest but rather are initially sold at a discount to their par value, implying an effective yield for the holder of the bill.) Bills have been sold through regular weekly tenders since January 1985; previously being sold by tap issue.

  • Retail stock, which is aimed mainly at small savers. (Since November 1985, the sole retail instrument on issue has been ‘Kiwi Bonds’. This is a fixed-interest instrument which is transferable, i.e. may be sold by the holder to another party. Changes made in 1988 also mean that the bonds are now more readily redeemable prior to maturity. Kiwi Bonds are issued with six-month, one-, two- and four-year maturities. The interest rates on new issues are related to the current market yields on wholesale government stock of comparable maturities.)

The secondary market in government securities (where existing debt instruments are bought and sold) is largely confined to government stock. Turnover in the market has grown significantly since 1984, with transactions usually in multiples of $1 million with settlement on a two-day basis.

A futures contract on five-year government stock has been traded on the New Zealand Futures Exchange since March 1986. This involves an agreement to buy or sell stock at an agreed price at some point in the future and is an important device for hedging interest-rate risk. Each contract is for $100,000 of stock.

The Reserve Bank Registry maintains registers of stock for government, local authorities and other public bodies and several state-owned enterprises.

At 16 July 1993, the value of total government securities registered was $22,823 million. Of this total $23,036 million comprised Treasury bills and other wholesale government stock while government retail stock of $787 million was also on issue. These figures do, however, exclude securities issued by state-owned enterprises. In recent years several government departments have changed their status, and as a result no longer rely on funding from government stock.

KEY MARKET RATES
Weekly averages by type

Table 25.6. GOVERNMENT SECURITIES ON ISSUE

 As at
 March 1992September 1992March 1993
Source: Reserve Bank of New Zealand
  $(million) 
Ordinary government stock, by maturity:
    Less than or equal to 1 month    -    3.9    -
    More than 1 month, up to 3 months    223.4    28.5    2.9
    More than 3 months, up to 6 months    1,186.2    52.7    328.1
    More than 6 months, up to 2 years    2,767.0    2,836.9    5,171.7
    More than 2 years, up to 5 years    6,058.2    10,281.8    7,815.9
    More than 5 years    5,080.2    4,554.6    5,911.6
Treasury bills by maturity:
    Less than or equal to 3 months    3,925.0    3,743.0    2,714.0
    More than 3 months, up to 6 months    1,610.0    1,560.0    980.0
    More than 6 months, up to 1 year    240.0    300.0    950.0
    Unclassified    933.3    678.4    624.1
Index linked stock445.9133.9125.4
Government stock coupons517.9212.7221.2
Kiwi stock8.28.07.8
IASBs220.5203.2192.4
ONZ Bonds7.87.26.9
Premium stock---
Savings stock---
Kiwi Bonds723.3753.8712.6
Total internal public debt23,946.925,358.625,764.6

Foreign exchange

Since March 1985 the New Zealand dollar has ‘floated’, with its value against other currencies determined by demand and supply in the foreign exchange market. This contrasts with the previous arrangements, where the authorities had set the exchange rate, by virtue of the Reserve Bank being prepared to clear the market (buying or selling foreign exchange), at a predetermined rate. The Reserve Bank continues to monitor the market. It also purchases some of the Government's current account foreign exchange requirements in the market, but no longer quotes exchange rates or stands in the market to buy or sell foreign currency on demand. Accordingly, there is no impediment to foreign exchange dealers dealing with their customers in currencies at negotiated rates. Monetary policy, however, has a significant indirect impact on the exchange rate.

Recent changes in exchange rates. For much of 1990, the value of the New Zealand dollar remained fairly stable. The trade-weighted index measure of the exchange rate (TWI) fluctuated between around 60 and 62 for the first nine months of that year.

Towards the end of 1990, the exchange rate began to ease as short-term interest rates declined. Between late August and the end of December 1990, the TWI depreciated by over 6 percent. The New Zealand dollar firmed slightly in early 1991, but has since then drifted downwards. Following an explicit easing in monetary policy in the wake of the favourable inflation outlook, the New Zealand dollar fell in late September, from around 58 on the TWI prior to the easing, to about 53 by the end of December. In the first quarter of 1992 it rose back to 55, but it gradually declined again to 53 at the end of August 1992.

Since the easing of monetary policy and the decline in the exchange rate in September 1991, the New Zealand dollar has weakened further against the main European currencies and the Japanese yen. However, it has almost maintained its value against the United States dollar and it has strengthened in relation to the Australian dollar and Sterling Pounds.

The ‘real exchange rate’ is defined as exchange rates as traded, adjusted for price levels at home and abroad. Movements in the real exchange rate indicate changes in the competitiveness of the traded goods sector. (A rise in the real exchange rate indicates reduced competitiveness.)

Over 1991, 1992 and early 1993 the real exchange rate has depreciated by about 10 percent, resulting in an increase in competitiveness for those sectors of the economy that compete on international markets. The easing in the nominal exchange rate was largely responsible for the reduction in the real rate, although New Zealand's decreasing inflation rate was also an important factor.

EXCHANGE RATE
Trade-weighted index

Table 25.7. FOREIGN EXCHANGE RATES*

       Exchange Rate Index†
As at end of:USA Mid-Rate US$/NZ$1UK Mid-Rate Stg/NZ$1Aust. Mid-Rate A$/NZ$1Japan Mid-Rate Yen/NZ$1Germany Mid-Rate DM/NZ$1Switz Mid-Rate Fr/NZ$1Base Jun. 1979 = 100Year to percentage changeRealExchange Rate Index

*All exchange rates are representative market mid-rates at 9am on final working day of each month.

The exchange rate index is as calculated at 9am on the basis of representative market rates for the currencies in the basket. The currency weightings used in calculating the Exchange Rate Index are revised approximately quarterly. Effective 2 August 1993, the weightings are US 0.2502, Stg 0.1066, Aust 0.3405, Yen 0.2476 and DM 0.0551. The scale factor is 62.91.

This real exchange rate index is calculated by the International Monetary Fund (published in the International Financial Statistics) and replaces the index previously published. The new index is based on a global weighting system that calculates trade weights separately for manufactured and primary product exports and imports. It uses quarterly average nominal exchange rates adjusted by the consumer price inflation rates of New Zealand and its main trading partners and trade competitors.

Source: Reserve Bank of New Zealand

1992–
July0.54550.28300.732969.540.80530.717653.7-7.4 
Aug0.54030.27260.754366.410.76070.681353.1-8.4 
Sep0.53810.30110.754164.200.76030.661553.1-6.096.8
Oct0.52850.33610.761265.150.81230.725454.1-2.3 
Nov0.51660.34180.749664.280.82580.744253.4-3.8 
Dec0.51360.33980.745163.990.82970.751453.20.698.5
1993–
Jan0.51880.34200.762264.420.82250.759353.80.4 
Feb0.52310.36570.751761.490.85590.794153.6-2.0 
Mar0.53400.35770.752262.260.86370.798253.9-1.8 
Apr0.54290.34490.764360.450.85590.773153.8-0.7 
May0.54260.34750.789158.170.86080.768554.01.9 
Jun0.53820.35570.804857.260.90850.806254.31.3 
Jul0.55220.37260.810258.810.95940.844055.63.5 

Contributors

25.1-25.2 Reserve Bank of New Zealand; Statistics New Zealand; New Zealand Bankers Association.

Further information

Bank of New Zealand Annual Report. Explaining Inflation (pamphlet). Reserve Bank of New Zealand, 1989.

Finance, Insurance and Business Services, 1987. Statistics New Zealand.

Financial Services Industry: Effects of Regulatory Reform. New Zealand Institute of Economic Research, 1986.

Financial Statement ('Budget', Parl paper B6).

Monetary Policy and the New Zealand Financial System. Reserve Bank of New Zealand (2nd ed, 1983).

Monetary Policy Statement. Reserve Bank of New Zealand (six-monthly).

Key Statistics. Statistics New Zealand (monthly).

Report of the Registrar of Friendly Societies and Credit Unions (Parl paper B18).

Report of the Reserve Bank of New Zealand (Parl paper B16).

Reserve Bank Bulletin. Reserve Bank of New Zealand (quarterly).

Weekly Statistical Release. Reserve Bank of New Zealand.

1993 Survey of New Zealand Financial Institutions. KPMG Peat Marwick, 1993.

Chapter 26. Public sector finance

Budget night, July 1993.

26.1 Central government finance

Expenditure

New Zealand has a centralised form of government developed from the Westminster style. Unlike more populous Canada and Australia, New Zealand does not have a system of state or provincial government. The Cabinet proposes the acquisition of goods and services from departments and other bodies, and the required expenditure is subject to Parliament's approval and control.

In recent years, legislative reviews have brought about several changes in Parliament's traditional forms of control over the financial activities of central government.

Historically, parliamentary control has applied to the financial activities of the Crown, either through agencies of the Crown itself or through agencies possessing separate legal status.

Types of organisations. The following four types of central government organisations have evolved:

  • Government departments as defined by Section 2 of the Public Finance Act 1989. The ‘Crown’ reporting entity includes Her Majesty the Queen in right of New Zealand, all Ministers of the Crown and all departments, but does not include offices of Parliament, Crown-owned entities or State-owned enterprises.

  • Offices of Parliament as defined by Section 2 of the Public Finance Act 1989. Offices of Parliament include the Office of the Ombudsmen, the Audit Office, the Parliamentary Commissioner for the Environment and the Privacy Commissioner.

  • Crown entities, which are bodies corporate other than State-owned enterprises. These have been defined primarily by a new Schedule to the Public Finance Act 1989.

  • State-owned enterprises as listed in the First Schedule to the State-Owned Enterprises Act 1986 and amendments. State-owned enterprises operate under the Companies Act 1955 with legal status separate from the Crown and the only legal authority that can be exercised by the Crown is that conferred by its ownership of shares in the enterprise.

The appropriation process. Parliament authorises the expenditure of public money by Ministers departments and offices of Parliament through the appropriation process. This authority can take the form of annual appropriations or a standing statutory authority (permanent legislative authority). Permanent appropriations are used where some independence from Parliamentary control is constitutionally desirable (such as judges' salaries) and for debt servicing.

Annual expenditure is appropriated by an act of Parliament and the authority to spend or to incur costs lasts only to the end of the financial year to which the appropriation relates unless otherwise authorised. The appropriations are included in the annual Estimates of Annual Appropriations and Departmental Budgets. These estimates are presented to Parliament and show the costs of producing the goods and services (outputs) of individual government departments. They are tabled in Parliament as part of the Budget papers at the beginning of the financial year.

However, the Budget covers much more than the expenditure proposals contained in the Estimates. It is also concerned with the whole range of the Government's financial and economic policy. It details–through tables–taxation and other revenue sources, expenditure patterns, debt transactions and the cashflows of the Crown. Within Parliament, the Estimates are reviewed by select committees and debated in the House each year.

As well as reporting to Parliament on their requests for annual appropriations, departments also submit annual reports to Parliament. Departments are required to produce annual financial statements under the Public Finance Act 1989. The financial statements include similar information on financial performance to that provided by the private sector, including a statement of financial position (balance sheet) and an operating statement.

Departments also report on their service performance comparing the services they proposed in the Estimates with the services they actually produced during the year. The chief executives of departments are also being held increasingly accountable by reforms such as those in the State Sector Act 1988.

Chief executives of state-owned enterprises are accountable to their respective boards in the same way as other public companies. Each state-owned enterprise is required to manage and report on the investment of shareholders' funds, as is the case for public companies. This involves tabling in Parliament financial statements which outline corporate objectives, performance targets and dividend policy. Parliament and its committees exercise influence over the achievements of these enterprises by scrutiny of their reports, and the Crown, through its ministers, has the authority to direct the enterprises on any recommendations arising from examination of such reports in Parliament.

Legislative regime. The Public Finance Act 1989 is the legislation governing the way the Crown, government departments and Crown entities manage and report on expenditure. This legislation was part of the Government's strategy to improve the overall efficiency of the economy and was the culmination of substantial reform in the public sector.

Just as the State Owned Enterprises Act 1986 and the State Sector Act 1988 made organisations more accountable, while providing the necessary powers for decision-making, the Public Finance Act 1989 addresses the financial management and reporting elements of public sector management.

As owner, the Government is concerned about the efficiency with which departments use the resources it has invested in them, and whether those funds could be better invested elsewhere. As purchaser, the Government is interested in the quality and quantity of departmental goods and services (outputs), and whether better or cheaper outputs could be purchased from other suppliers. Chief executives are responsible for both types of performance.

By distinguishing these two interests, the Government can compare the financial performance of its investment in different departments and entities, and compare the cost of outputs from different sources. This has opened the way for increased competition within the public sector. Also, where government departments operate in competition with private sector suppliers, the management system helps ensure that departments operate with neither advantages nor disadvantages compared with that competition. Public sector managers are able to demonstrate the quality of their performance in comparison with other suppliers of goods and services.

An important element of the financial management system is the cash management procedures which give departments significant control over their own finances. Departments operate their own departmental bank accounts into which annual appropriations are disbursed. As well, where they have delegated authority to make payments or collect receipts on behalf of the Crown they operate a subsidiary bank account comprising one of a suite of accounts within the Crown Bank Account.

The Public Finance Act 1989 provides the basis for the appropriation and management of public financial resources. It provides for the provision of information to Parliament on which to base its decisions on how public money should be spent, and to assess afterwards whether the money has been well spent.

Financial reporting. The ownership interest of the Government requires similar financial reporting to that used in the private sector. This includes distinguishing capital and current expenditure and the use of full accrual accounting to monitor the performance of the Crown's investment. The purchase interest requires the same type of information as private sector sales contracts: quantity; quality; time and place of delivery; and price. As decisions about output pricing and production require information about total resources used (costs), not simply cash outlaid, accrual accounting is required.

Accrual accounting. Since 30 June 1991 all departments have been required to produce financial statements prepared on an accrual accounting basis.

The financial statements include a statement of objectives and a statement of service performance as well as an operating statement, statement of cashflows and statement of financial position.

The departmental financial statements along with information on financial transactions undertaken on behalf of the Crown were consolidated in 1992/3 to produce the first set of accrual financial statements of the Crown for the year ended 30 June 1992.

The new system allows departmental managers more flexibility in choosing the resources (inputs) they use to produce goods and services for the Government. Controls such as those which required departments to acquire office supplies, office space, computing services and other inputs from designated government agencies have already been removed.

This higher level of discretion for managers is balanced by much tighter accountability. The Public Finance Act 1989 specifies the minimum information to be presented in the Estimates of Annual Appropriations and Departmental Budgets and requires both the Crown and departments to present to Parliament annual audited financial statements.

These accrual statements form part of the Financial Statements of the Government of New Zealand, also known as the crown financial statements, which from the year ended 30 June 1993 cover Ministers of the Crown, government departments, offices of Parliament and the Reserve Bank of New Zealand, and the Crown's share of the net assets of State-owned enterprises and Crown entities (see pages 30-1 and 36 for a list of the organisations covered). The Crown Financial Statements are produced for the six months ended 31 December (unaudited) and the year ended 30 June.

Crown banking arrangements. The former system of public accounts has been replaced by two main types of bank accounts for public money–departmental accounts and a Crown Bank Account–and a third account, a Trust Bank Account for trust money.

Departmental bank accounts may contain the following types of revenue; money disbursed to the department by the Treasury; receipts from departmental revenue; and receipts from the disposal or sale of the department's assets. A suite of Crown Bank Accounts is used to collect all receipts other than departmental revenue. Examples of Crown revenue are: taxes, fines, duties, levies, etc. Payments from the Crown Bank Account include benefit payments, disbursements to departmental bank accounts and debt servicing.

A Trust Bank Account may include either unclaimed money or money used to pay a third party or settle a transaction or dispute. The Treasury is responsible for managing trust money but can delegate responsibility for this to departments. If this occurs the department(s) concerned is required to establish and maintain a Trust Bank Account to hold money separate from public funds.

The Crown's central treasury function (the New Zealand Debt Management Office in the Treasury) is responsible for managing the Government's overall cash balance, including an overnight offset of the Crown's departmental balances to make most effective use of any net surplus or to minimise the cost of any shortfall.

By moving government's operating accounts to the private sector, the new system also distinguishes the management of the Crown's own finances from monetary policy, which is implemented by the Reserve Bank (see section 25.2, Money).

Table 26.1. EXPENSES, 1993

Year ended 30 June
Source: The Treasury.
$(000)
By input type
Benefits, subsidies and other transfer payments12,302
Operating expenses10,005
Personnel
    Personnel expenses (excluding pension expenses)    2,395
Pension expenses1,320
Depreciation839
Rental and leasing costs220
Write-down of Fletcher Challenge Limited shares74
Loss on sale of assets56
Write-down of Government Property Services Limited-
Finance costs3,961
Net foreign exchange losses on liabilities324
Net foreign exchange gains on assets(28)
        Total expenses31,468
Analysis of benefits, subsidies and other transfer payments
Benefits
    National superannuation4,985
    Unemployment benefit1,572
    Domestic purposes benefit1,192
    Family support580
    Invalids benefit363
    Sickness benefit277
    Student allowances238
    Accommodation benefit209
    Other benefits735
Subsidies
    Pharmaceutical benefits591
    Primary health services subsidies302
    Accident compensation for non-earners293
    Access130
    Medical referral services122
    Geriatric hospital patient assistance118
    Other subsidies454
Other transfer payments
    Official development assistance141
        Total benefits, subsidies and other transfer payments12,302
    Analysis of operating expenses
Education grants
    Early childhood education187
    Primary and secondary education2,080
    Tertiary education and training1,069
Area health board grants2,677
Science grants272
Sealord Maori fisheries claim168
Other operating expenses3,552
        Total operating expenses10,005
Analysis of finance costs
Interest
    New Zealand dollars1,780
    Foreign currencies1,443
Discounts
    New Zealand dollars599
    Foreign currencies94
Other finance costs45
        Total finance costs3,961

CROWN EXPENSES
Year ended 30 June 1993

Table 26.2. GOVERNMENT FINANCE: OPERATING STATEMENT, 1993

Year ended 30 June
Source: The Treasury
$(000)
Revenue
Levied through the Crown's sovereign power
      Direct taxation16,591
      Indirect taxation9,221
      Other151
            Total revenue levied through the Crown's sovereign power25,963
Earned through the Crown's operations
      Investment income1,720
      Sales of goods and services669
      Other operational revenue1,522
            Total revenue earned through the Crown's operations3,911
            Total revenue29,874
Expenses
By functional classification
      Social services10,702
      Education4,545
      Administration4,393
      Health4,058
      Foreign relations1,405
      Development of industry1,340
      Transport768
      Finance costs3,961
      Net foreign exchange losses296
            Total expenses31,468
            Revenue less expenses(1,594)
Surplus attributable to State-owned enterprises and Crown entities1,352
Dividends and other distributions(577)
      Net surplus attributable to State-owned enterprises and Crown entities775
Operating balance(819)

Table 26.3. GOVERNMENT FINANCE: STATEMENT OF CASH FLOWS, 1993

Year ended 30 June

Note: Actual movements in investments, advances and borrowings are disclosed on a gross basis, except for short-term items which are shown net.

Source: The Treasury.

$(000)
Cash flows from operations
Direct Taxation
      Individuals12,729
      Companies2,320
      Withholding taxes1,051
      Other direct taxation86
            Total direct taxation16,186
Indirect Taxation
      Goods and services tax5,910
      Excise duties1,859
      Other indirect taxation1,355
            Total indirect taxation9,124
Other receipts
Interest, profits and dividends1,231
Other operating receipts1,671
Total other receipts2,902
Total cash provided28,212
Cash was disbursed to
Social services10,761
Education4,322
Health4,033
Administration3,088
Development of industry1,370
Foreign relations1,150
Transport804
Finance costs3,885
            Total cash disbursed29,413
Net cash flows from operations(1,201)
Cash flows from investing activities
Cash was provided from
      Sale or repayment of investments and advances6,738
      Sale of physical assets3,050
            Total cash provided9,788
Cash was disbursed to
      Purchase of investments and advances9,151
      Purchase of physical assets687
            Total cash disbursed9,838
Net cash flows from investing activities(50)
Cash flows from financing activities
Cash was provided from
      Issue of circulating currency61
      Issue of Government stock4,510
      Other New Zealand dollar borrowing455
      Foreign currency borrowing7,685
      Other items
            Total cash provided12,711
Cash was disbursed to
      Repayment of Government stock1,689
      Repayment of other New Zealand dollar borrowing904
      Repayment of foreign currency borrowing9,046
      Major project refinancing79
      Other items7
            Total cash disbursed11,725
Net cash flows from financing activities986
Net movement in cash held(265)
Opening cash balance464
Reserve Bank of New Zealand opening cash balances(122)
Foreign exchange gains on opening cash balances-
      Closing cash balance77

CROWN REVENUE
Year ended 30 June 1993

26.2 Taxation

The following summary of the New Zealand tax system takes into account all relevant amending legislation effective at 31 March 1992. The tax year is from 1 April to 31 March.

The principal legislation is the Income Tax Act 1976.

Personal income tax

Income tax is levied under the Income Tax Act 1976 and is charged on most forms of income including business profits, employment income, royalties, interest, dividends and pensions.

The rates of tax for the 1993-94 year are:
      Income up to $30,87524.0c for every dollar
      Income over $30,87533.0c for every dollar

'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 two general classes–

Salaries, wages and other remuneration–PAYE is deducted from these at the time of payment.

At the beginning of each tax year, employees complete a tax code declaration form (IR12) which is also a tax deduction certificate. This certificate is returned to the employee at the end of the financial year or when the employee leaves the job. The certificate will show the total amount of income the employee has earned, the tax deducted, any extra pays tax-free allowances and the period of employment. The employee uses this information to complete a tax return at the end of the tax year (31 March).

Most salary and wage earners file an IR5 tax return each year. The due date for the completed return to reach Inland Revenue Department is 7 June each year.

The Inland Revenue Department assess salary and wage earners on their total taxable income. Any rebates and taxes already paid are deducted from assessed tax. The resulting figure will be either a refund or further tax to pay.

The total amount of PAYE collected up to 30 June 1993 was $10,528.3 million.

Business, farming, investment, and professional incomes–With these incomes, tax is not deducted at time of receipt but the taxpayer pays ‘provisional tax’. A provisional taxpayer is any taxpayer who is liable to pay residual income of more than $2,500. ‘Residual income tax’, is basically the amount of the tax assessed (including any National Superannuation surcharge), reduced by any tax deductions made from source deduction payments, tax paid overseas, tax paid by trustees, etc.

Provisional tax is payable in three instalments. For taxpayers whose balance date is 31 March, payments are made in July, November and March each year.

Provisional taxpayers use the return form IR3 must reach the Inland Revenue Department by 7 July for the majority of taxpayers. Expenses are deducted from the gross business or investment income and tax is calculated on the net income. 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. In some situations interest is charged or paid on the under or overpayment of provisional tax. Penalties for under-estimation can also be imposed.

Deductions from tax

Deductions for expenses. For people in business, expenses which are incurred in producing income and are 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.

Exempt income. Income is exempt from tax in New Zealand only if provision is made in the Income Tax Act 1976.

Some of the more common items exempt from tax are: maintenance or alimony payments; some war pensions and service disability pensions; income derived by charitable and certain non-profit organisations and also lottery and raffle prizes.

Rebates. Rebates are deducted from the total tax payable.

Table 26.4. REBATES: YEAR ENDED 31 MARCH 1992

RebateAmount
Source: Inland Revenue Department.
Income under $30,875Broadly, the maximum rebate for an assessable income of $9,500 or less is $855. This rebate is reduced by 4 cents in every dollar over $9,500. This rebate is not available to taxpayers earning $30,875 or more.
Child care or housekeeper (under certain circumstances)Limited to the smaller of 33 cents for each complete dollar of payment made or $310.
Child rebateIf the taxpayer was, during the year: under 15 years of age; under 18
years of age and attending a primary or secondary school, or a school for the mentally or physically disabled; or under 19 years of age but turned 18 on or after 1 January 1992 and continued to attend a primary or secondary school or a school for the mentally or physically disabled, an additional rebate is available. It is limited to the smaller of 15 percent of income other than interest and dividends or $156.
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).
Donations33.3 percent of all qualifying charitable donations, the maximum rebate being $500. The minimum qualifying charitable donation is $5.

Residential qualifications to pay income tax

New Zealand residents. New Zealand residents are liable to New Zealand tax on all income including income from overseas. Credit is allowed for any tax paid overseas, but this is limited to the New Zealand tax payable on that income.

Non-residents. Non-residents are taxed in New Zealand only on income with a New Zealand source. If the income is interest, dividends or royalties, the person is liable for non-resident withholding tax (NRWT), unless the approved issuer levy is paid. NRWT is deducted by the bank or other paying institution.

Changes to the residence laws came into effect on 1 April 1989. The old rules were based on whether a person was present in New Zealand for more than 365 days continuously (resident) or absent from New Zealand for more than 365 days continuously (non-resident) and whether they had a permanent place of abode in New Zealand. The new rules are outlined below.

An individual is resident in New Zealand if they:

  • Have a permanent place of abode in New Zealand;

  • Have been present in New Zealand for an aggregate of more than 183 days (about six months) in any 12-month period (residence begins on the first day of the 183 days);

  • Are absent from New Zealand in the service of the New Zealand Government.

An individual ceases to be resident in New Zealand if they:

  • Are absent from New Zealand for an aggregate of more than 325 days (about 11 months) in any 12-month period and during that time they do not have a permanent place of abode in New Zealand. Non-resident status begins on the first day of the 12-month period.

A person is taxed as non-resident until they fulfil one or more of the residence criteria.

Tax refund.

Permanent place of abode. This is determined by considering where a person usually lives and the strength of the person's links with New Zealand. The following factors may be considered when determining the person's link with New Zealand:

  • Whether their presence in New Zealand is continuous or interrupted.

  • Whether they own property in New Zealand–either accommodation or personal property.

  • Social ties–family, club membership and the like.

  • Economic ties–bank accounts, credit cards, investments, etc.

  • Employment or business in New Zealand.

  • Intention–where the person actually intends to live.

This list is not exhaustive and each case is considered on its own merits.

Pensions. Pensions paid to New Zealand residents by countries with which New Zealand has a double tax agreement are generally exempt from tax in the country of origin and subject to tax in New Zealand. If a pension is taxed in the country of origin, credit is allowed in a New Zealand income tax assessment for the overseas tax paid to the extent that it does not exceed New Zealand tax payable on that income.

Double taxation agreements. Agreements to avoid double taxation have been entered into between New Zealand and Australia, Belgium, Canada, China, Denmark, Fiji, Finland, France, Federal Republic of Germany, India, Indonesia, Ireland, Italy, Japan, Korea, Malaysia, Netherlands, Norway, Philippines, Singapore, Sweden, Switzerland, the United Kingdom, and the United States. A visitor from one of these countries who receives income for personal services in New Zealand from an overseas employer should refer to the relevant agreement.

Capital brought into New Zealand. Capital brought into New Zealand is free from tax, and there is no limit on the amount which may be brought into the country. However, income earned from investing that capital is taxable.

Family Support

Family Support is a tax credit designed to help low income families with cash help. It is paid either by the Department of Social Welfare with a benefit if the recipient is a beneficiary or fortnightly by Inland Revenue to the main child-carer in the family.

In the 1993 Budget, the Minister of Finance announced the new rates for family support.

From 1 October 1993 the new rates are:
      Eldest child$42 per week
      Second or subsequent child who reached 16 years of age before 1 October 1993$42 per week
      Second and subsequent child 13 years or over$35 per week
      Second or subsequent child under 13 years$24 per week
These maximum rates reduce as family income increases as follows:
      Family incomeAbatement
      0-$17,500Nil
      $17,501-$27,00018c for each dollar of family income exceeding $17,500
      Over $27,000$1,710 +30c for each dollar of income over $27,000

Guaranteed Minimum Family Income. GMFI is a tax credit which is paid in addition to family support. It ensures that all New Zealanders in full employment with dependent children have a set minimum weekly income. GMFI is available to all families with children whose gross yearly income is less than $18,363. A one child family with such an income will receive $275 per week in hand.

Child Support

Providing financial support for children is part of the role of a parent even if a parent lives apart from his or her children.

The Child Support Agency (CSA) introduced in July 1992, aims to make sure that all children receive support from their absent parents. The agency replaces the Liable Parent Scheme which was administered by the Department of Social Welfare.

This service is responsible for administering the Child Support Act 1991, collecting Child Support payments from liable parents and paying support to people caring for children. The CSA also collects and pays spousal maintenance to qualifying parents.

The agency assesses a parent's income from two years ago for child support. A living allowance as set by the Department of Social Welfare rates is deducted from the taxable income, the resulting figure is then multiplied by one of the percentage rates set out below. The current rates for Child Support are:

      One child18 percent
      Two children24 percent
      Three children27 percent
      Four or more children30 percent

The Child Support Agency will then collect the resulting figure or $520, whichever is greater. The minimum sum of child support payable is $520. The child support collected is paid to the Government if the custodian of the children is receiving a benefit. Custodians not receiving a benefit will receive their Child Support directly from the agency.

The total amount of Child Support collected up to 30 June 1993 was $82.8 million.

National Superannuation surcharge

The National Superannuation surcharge is an extra tax paid on top of ordinary income tax. Everyone who receives National Superannuation and gets more than a certain amount of other income at the same time must pay surcharge. The surcharge rate is 25 percent. Half of any pension from a superannuation fund or a life insurance annuity is included in other income when calculating surcharge.

Single superannuitants can receive up to $80 per week before tax ($4,160 per year) of other income without having to pay any surcharge. Married national superannuitants can each receive up to $60 ($3,120 per year) of other income before tax per week before paying any surcharge.

Student Loans

The Student Loans Act was passed in December 1992 and from 1 April 1993 employers began collecting loan repayments from staff who had taken out student loans.

Employees who have taken out a student loan must tell their employers who will then begin making deductions from that employee's wages for the loan as well as other deductions such as PAYE.

Students have to file a tax return every year until the loan is repaid even if they are not earning a wage. They will be assessed every year on their tax return and any interest owing will be charged at the current rate of 8.2 percent per annum. At the end of every income year, any interest charged during the year is added to the loan balance and interest starts being calculated on the new balance.

Students earning over $13,104 in their main job must fill in a new IR12 showing the tax code G ED and begin making repayments at the rate of 10 cents out of every dollar earned over $13,104. If the student has another job and they are earning over $13,104 they will use the tax code SEC ED, and pay 10 cents out of every dollar earned. The employer keeps a record of all deductions made, and when the loan has been repaid the employee will change tax codes.

The total amount of Student Loan repayments collected up to 30 June 1993 was $3.9 million.

Accident Compensation levy

The Inland Revenue Department collects levies on behalf of the Accident Rehabilitation and Compensation Insurance Corporation (ACC).

The ACC levy is collected in Earner Premiums and Employer Premiums. The Earner Premium covers the cost of non-work-related injuries. All earners (employees and self-employed people) must pay the Earner Premium. This premium is a set percentage of the earners income. For employees, the premium is deducted from their salaries or wages. People who receive withholding payments and self-employed people must calculate their Earner Premium at the end of the financial year.

The Employer Premium goes to the cost of work-related injuries. Employers pay this premium for their employees. Self-employed people calculate their premiums in their end of year tax returns and pay the premium out of their self-employed income. Employers work out their premium when filing their end of year reconciliation forms. The employer premium rate varies according to the type of business activity.

Tax on interest and dividend income

Interest and dividend income has tax deducted at source, as is the case with wages and salaries.

Resident Withholding Tax. This tax (RWT) is deducted from interest and dividends before the net amount is credited to the recipient. The tax is at a rate of 33 percent for dividends and 24 percent for interest.

Certain recipients of interest or dividends (such as charitable/non-profit organisations, sports clubs and others) may claim exemption from RT. The leaflet RT on Investments, available from Inland Revenue offices has more information on RT.

All the credits attached to interest and dividends are deducted from the tax payable on the total income when the appropriate return is filed each year, in the same way as PAYE on income from employment. In previous years the first $200 of interest received was tax free but with the advent of the PAYE system this has been phased out.

RT collected up to 30 June 1993 totalled $722 million.

Imputation. Dividends received from a New Zealand company may have imputation credits and/or withholding payment credits attached. An imputation credit is a portion of the tax paid by the company on its taxable profit for the year, and it thus avoids the double payment of tax (i.e., by the company and the individual shareholder) on the same income. Withholding payment credits arise when a New Zealand company receives overseas dividends.

The imputation system integrates personal and business tax with respect to company income distributed as dividends, and allows a credit for tax paid by the company on that income.

Entertainment expenses

The 1992 Budget introduced changes to the tax treatment of business entertainment expenses. These changes took effect from 1 April 1993. Business entertainment expenditure is now 50 percent deductible.

Business entertainment is defined as food, beverages, recreation, accommodation and transport provided in connection with specific business transactions. The new business entertainment expenses rules do not apply to a number of different situations. These include:

  • Entertainment provided to paying customers for gain. The cost to a restaurant in providing meals to patrons is fully deductible.

  • Entertainment which is part of the taxable income of the person to whom it is provided. A taxable entertainment allowance is fully deductible to the person who pays it.

  • Sponsorship of a recreational activity for promotional or advertising purposes.

  • Entertainment provided outside New Zealand.

There is a $25 per person per day exemption for food and drink while on deductible business travel. The $25 exemption is GST exclusive.

Fringe Benefit Tax

This is a tax at 49 percent of the value of fringe benefits provided by an employer to an employee. It is payable by the employer on an annual or quarterly basis. Taxable fringe benefits include:

  • The private use of a business motor vehicle by an employee.

  • Low-interest loans.

  • Free, subsidised or discounted transport and other goods and services.

  • Employer's contribution to certain employee's superannuation funds and accident, sickness or death benefit funds and insurance policies.

The total Fringe Benefit Tax collected up to 30 June 1993 was $390.1 million.

Company taxation

Company taxation is also levied under the Income Tax Act 1976, although companies in New Zealand are taxed in a different way from individual taxpayers. The main differences are that:

  • A company does not get any of the special exemptions or rebates which the individual taxpayer may claim;

  • Dividends paid by a company in a wholly-owned group of companies to another company within that group are exempt from income tax.

  • The rate of income tax is different.

New Zealand companies.

Income tax–resident companies pay tax on their income at the flat rate of 33 cents in the dollar. Company income tax paid during the year ended 31 March 1992 totalled $2,315.5 million.

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 33 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 or investment society dividends 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 processors of minerals to the primary metal stage under a ‘special development project’.

Goods and Services Tax

Goods and Services Tax (GST) is a tax charged at 12.5 percent on supplies provided in New Zealand by a registered person in the course of a taxable activity.

Anyone with an annual turnover of $30,000 or more must register for GST. Persons registered for GST must charge and collect GST from their customers. GST-registered suppliers of goods and services pay GST on purchases and expenses made in the course of their business but may claim it back later. Registered persons must account for and pay all GST they have collected to the Inland Revenue Department.

GST is charged on the supply of goods and services. Some activities such as salaries and wages; hobby activities; and private sales of personal or domestic items are not taxable. GST is not charged on exempt supplies. Exempt supplies include all financial services, renting of residential property and the sale of donated goods and services by a non-profit organisation. By September 1993, there were 393,912 registered persons in New Zealand.

The total GST collected up to 30 June 1993 was $4,273.6 million not including GST collected by Customs.

Small Business Tax Information Service

Small businesses make up 95 percent of our business customers and many of these small businesses, particularly the new ones, have difficulty understanding their tax obligations. To remedy this problem, we launched a service in June 1992 aimed at providing information for new small business operators. The service also provides information for existing small businesses about GST and employer taxes such as PAYE, Fringe Benefit Tax and Employer Premium.

This service, the Small Business Tax Information Service, comprises 37 officers in Inland Revenue offices nationwide who are available to talk to small business operators about their tax obligations. The service is free and available on request. The business person can meet the Small Business Officer either at Inland Revenue's offices or at their own premises.

For the year up to the end of June 1993, our Small Business Officers advised 17,703 small business operators and held 568 seminars attended by 9,031 people. After the initial contact, our officers will generally make a follow up visit to the customer within two months.

Problem Resolution Service

Occasionally, taxpayers have problems in their dealings with the Inland Revenue Department that require special attention. These problems include letters or phone calls not replied to by Inland Revenue, computer error and delays in paying Family Support or refunds to help taxpayers solve these problems quickly and effectively the Problem Resolution Service was launched in May 1989.

The Problem Resolution Service has an experienced officer in every department office and it is their objective to resolve 90 percent of problems referred to them within five working days and the balance within 10 working days. This officer will only get involved in a case when the normal channels within our organisation have failed to provide a satisfactory solution for the taxpayer.

Taxes relating to property and transactions

Sale of property. There is no capital gains tax in New Zealand 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 may be subject to income tax (in terms of section 67 of the Income Tax Act 1976) where the owner either:

  • 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 sub-divisional work before selling. (Only the ‘development profit’ is taxable in this case.)

Estate duty. On 17 December 1992, the tax on the total net worth of a deceased person's estate, estate duty, was abolished.

Estate duty was a tax levied at 40 percent of any amount of a deceased person's estate over $450,000. As this tax has now been abolished, no tax is payable on the estates of people who died on or after 17 December 1992.

Stamp duty

Stamp duty is a charge on certain legal documents (sometimes called instruments). Documents that are liable for stamp duty will not usually be recognised by the Land Transfer Office or the courts until the duty has been paid.

The Inland Revenue Department charges and collects stamp duty on property transactions documents, such as:

  • Conveyances and leases of commercial land.

  • Sales of shares in a company that owns flats or offices, except for those shares which carry the right to occupy a dwelling house.

  • Variations of commercial leases.

Following are the rates of duty for transactions:

Table 26.5. STAMP DUTY

Sale price of propertyRate of duty
First $50,0001 percent
$50,000 to $100,000$500 plus 1.5 percent of amount over $50,000
Over $100,000$1,250 plus 2 percent of amount over $100,000

Lease duty is payable at the rate of 40 cents per $100 or part of $100 on the maximum annual rate including GST. If the consideration is other than rent, lease duty is payable at the rate of $1 per $100 or part of $100 of the total consideration.

The rates of stamp duty in respect of the transfer of commercial land and buildings is 1 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; and 2 percent for the excess over $100,000.

Cheque duty is computed at the rate of 5 cents for each bill of exchange. A bill of exchange is any promissory note (such as a cheque) other than a banknote.

The pamphlet Stamp Duty, available from the Inland Revenue Department, supplies more information.

CUSTOMS AND EXCISE RECEIPTS
As a percentage of total Consolidated Account taxation

Excise duty

Due to the introduction of the Goods and Services Tax Act and the repeal of the Sales Tax Act on 1 October 1986, the excise regime was reviewed. Goods which had previously been liable to sales taxes became liable for excise duty. Due to successive budgets and economic statements since 1986 only alcoholic beverages, tobacco products and specific petroleum fuels are subject to excise duty.

Another change introduced in 1986 was the abolition of storage or bonded warehouses and the introduction of licensed export warehouses and licensed manufacturing areas. Licensed export warehouses are premises licensed for the deposit of imported, excisable or other such permitted goods, and generally include duty free premises and ships' provedors. Licensed manufacturing areas are premises where excisable goods are manufactured.

Recent changes to the rates of excise duty are set out below.

Petroleum fuels. Super and regular grade petrol, lpg and cng are now the only fuels that remain subject to excise duty. The rate of motor fuel excise duty on super and regular grade fuel is 32.2 cents per litre plus 8 cents per gram of lead, while the rate on lpg is 8.4 cents per litre and $3.17 per gigajoule on cng.

Alcoholic beverages and tobacco products. There is a uniform level of duty on all alcoholic beverages with an alcoholic content of less than 23 percent. The rate of excise duty on these products (beer, wine and other such alcoholic beverages) was $17.29 per litre of alcohol in March 1993. The higher uniform rate for spirits was $31,301 per litre.

Tobacco products are taxed on their tobacco content. The rate, set in June 1992, was $135.30 per kilogram of tobacco. For cigarettes weighing less than 1.1 kilograms per 1,000 the excise duty is levied at an equivalent rate per 1,000 cigarettes.

From 1 September 1993, the excise legislation was amended to allow the annual indexation of alcohol and tobacco rates of duty when the Consumers Price Index change is 1 percent or less according to the formula contained in the legislation prior to 1 September in respect of alcohol, or 1 December in respect of tobacco products.

In any case where the excise rates are not indexed on 1 September (alcohol) or 1 December (tobacco) the next indexation adjustment will take account of the full years Consumer Price Index movement.

Roads taxation

The Road User Charges Act 1977 provides for the payment of road use fees by all vehicles over 3.5 tonnes and smaller vehicles powered by a fuel not taxed at source. Motor spirit excise duty is paid on all petrol, lpg and cng used on the roading network.

The road user charges vary depending on the number of axles, number of wheels, and weight of the vehicle. The motor spirit excise duty rates are: petrol, 32.2 cents per litre plus 8.0 cents per gram of lead; lpg, 8.4 cents per litre; and cng, $3.17 per gigajoule. In the case of petrol excise duty, 9.4 cents per litre of the excise duty, and the total excise duty for cng and lpg, is paid into the Land Transport Fund. All road user charges revenue collected is paid into the Land Transport Fund.

The Land Transport Fund also includes fees paid by motorists under the Transport (Vehicle and Driver Registration and Licensing) Act 1986. It pays for maintenance and construction of New Zealand's roading network, a contribution to public passenger transport, traffic enforcement and road safety education and publicity.

Racing taxation

Government taxation on totalisator turnover is at the rate of 5.5 percent of gross on-course and off-course investments for each day of a race meeting conducted by a totalisator 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 2.5 percent of the first $100,000 of the gross investments received by the club in any one year.

Totalisator duty totalled $46.7 million net during the year ended 31 July 1993.

Taxation review authorities

The Inland Revenue Department Act 1974 provides for the establishment of one or more taxation review authorities. There are three authorities. Each consists of one person who is a barrister or solicitor of the High Court of not less than seven 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 of Inland Revenue, 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.

Tax revenue

Table 26.6. DIRECT TAXATION, 1993

Year ended 30 June
Source: The Treasury.
$(000)
Income tax
Individuals
      Source deductions10,528
      Other persons2,823
      Refunds(603)
      Fringe benefit tax390
            Total individuals13,138
Companies2,394
Withholding taxes
      Residents' interest income640
      Non-residents' income264
      Residents' dividend income82
      Foreign-source dividends10
            Total withholding taxes996
Total income tax16,528
Other direct taxation
      Estate and gift duties83
      Land tax(20)
            Total other direct taxation63
Total direct taxation16,591

Table 26.7. INDIRECT TAXATION, 1993

Year ended 30 June
Source: The Treasury.
$(000)
Goods and Services Tax6,000
Excise duties
      Petroleum fuels832
      Tobacco products587
      Alcoholic beverages437
            Total excise duties1,856
Other indirect taxation
      Customs duty587
      Road user charges321
      Motor vehicle fees140
      Stamp, cheque and credit card duties118
      Gaming duties102
      Energy resources levy97
            Total other indirect taxation1,365
Total indirect taxation9,221

TAXATION PER CAPITA
Adjusted for inflation*

Table 26.8. COMPARISON OF PUBLIC ACCOUNT TAXATION AND NATIONAL DISPOSABLE INCOME

Year endedNational disposable income*Public account taxation
TotalPercentage of national disposable income

*National Disposable Income is calculated on a year ended 31 March.

From 1992 accounts prepared on an accrual basis.

 $(million)percent
31 March–
198639,42714,235.936.1
198748,23417,408.136.1
198853,89921,528.139.9
198957,97322,863.939.4
30 June–
199061,16626,198.142.5
199163,53725,797.640.7
199263,43423,901.037.8
199367,49025,310.037.5

26.3 Assets and liabilities

Public debt

The money comprising public debt is borrowed on the security of the public revenues of New Zealand. The principal legislative measure relating to the management of Crown assets and liabilities is the Public Finance Act 1989. Most of the present public debt was borrowed for national development.

Gross public debt, as referred to in the tables in this section, consists of total financial liabilities of the Crown. Net public debt consists of gross public debt less total financial assets of the Crown (excluding equity).

The level of gross public debt as a proportion of gross domestic product (GDP) fell from a peak of around 77 percent at 31 March 1987 to 63.2 percent as at March 1988 and has fluctuated between 59.5 percent and 64.5 percent since that time. The relative stability since 1987/88 reflects several offsetting influences. The major factors contributing to a reduction in gross public debt were the Table 2 surpluses achieved through asset sales. In some years (1987/88 and 1989/90) currency appreciation reduced the size of the debt. Offsetting factors included the continued refinancing of major project debt, the assumption of responsibility for New Zealand Railways and Tourist Hotel Corporation debt in 1990, the exchange of some Housing Corporation debt for government stock, and changes in accounting treatment. Currency depreciation in 1988/89, 1990/91 and 1991/92 also increased the level of gross and net public debt.

The Government's medium-term fiscal policy with regard to debt management is that it should stabilise and control debt-to-GDP ratios. Furthermore, by pursuing policies which will lead to financial balance, the Government will ensure that, in the long term, debt-to-GDP ratios will fall.

The Government's approach includes on-going tax reform, measures to reduce and get better value from government spending, and a programme of relinquishing state ownership of assets. Income from asset sales which had been finalised at the time of going to print is outlined below.

Table 26.9. SALES OF STATE ASSETS

BusinessSale priceSettlement date

Note: Sale price includes any subsequent purchase price adjustments.

Source: The Treasury.

$(000)
New Zealand Steel Limited327,22422 March 1988
Petrocorp801,05931 March 1988
Health Computing Service4,2507 November 1988
Development Finance Corporation111,28018 November 1988
Post Office Bank Limited678,47828 February–31 October 1989
Shipping Corporation of New Zealand31,8093 March–30 June 1990
Air New Zealand660,00017 April 1989
Landcorp financial instruments77,00020 March 1989–5 February 1990
Rural Bank687,50031 October 1989–30 September 1992
Communicate New Zealand648 December 1989
Government Printing Office38,5811989/90–1992/93
National Film Unit2,50023 March–21 September 1990
State Insurance Office735,00028 June 1990
Tourist Hotel Corporation71,85015 June 1990
New Zealand Liquid Fuel investment(203,000)6 July 1990
Maui Gas254,0006 July 1990
Synfuels stocks and current assets194,7866 July 1990–30 July 1993
Forestry cutting rights747,20524 July–30 August 1990
Telecom Corporation4,250,00012 September 1990
Forestry cutting rights1,027,05524 August–26 October 1990
Export Guarantee Limited17,7813 October 1990–24 June 1993
Housing Corporation mortgages904,02825 November 1991–29 March 1993
Government Supply Brokerage3,20030 January 1992
Taranaki Petroleum mining licences121,1366 April 1992–1 March 1993
New Zealand Timberlands Limited366,00015 May 1992
Bank of New Zealand849,9469 November 1992
New Zealand Rail Limited328,30030 September 1993
Fletcher Challenge shares421,50825 November–16 December 1993

The New Zealand Debt Management Office of the Treasury manages the Crown's debt and related interest-bearing assets. The Reserve Bank acts as agent for the Debt Management Office in sales of government stock, Treasury bills and Kiwi Bonds.

The following statement shows the movement in loans and swaps raised by the Crown, and the balances as at 30 June 1993. The 1 July 1992 position has been restated to include the Reserve Bank of New Zealand.

CROWN ASSETS
As at 30 June 1993

Press conference announcing the sale of NZ Rail.

Table 26.10. STATEMENT OF BORROWINGS*

 As at 1 July 1992IncreasesDecreasesMovements in outstanding FX contractsCurrency realignmentAs at 30 June 1993Loans excluding swap and FX contracts

*Movements during the year ended 30 June 1993.

Source: The Treasury.

$(000)
Outstanding debt
New Zealand dollar debt
      Government stock16,1194,629(1,681)--19,06719,067
      Treasury bills6,11127---6,1386,138
      Retail stock1,285355(490)--1,1501,150
      Reserve Bank bills1,247 (191)--1,0561,056
      Loans and foreign-exchange contracts438-(233)(4)-201140
            Total New Zealand dollar debt25,2005,011(2,595)(4)-27,61227,551
Foreign currency debt
      United States dollars10,3242,829(4,221)4191639,5148,636
      Japanese yen4,4172,597(1,396)(866)8725,6245,144
      German marks1,552716(824)366(139)1,6711,134
      British pounds1,716669(863)-(330)1,1921,640
      Swiss francs1,389-(344)(104)(82)859739
      European currency units977452(844)154(94)645861
      Other currencies343597(593)-143611,519
            Total foreign currency debt20,7187,860(9,085)(31)40419,86619,673
            Net effect of swaps and FX contracts------254
Total outstanding debt45,91812,871(11,680)(35)40447,47847,478
Marketable securities and deposits
      New Zealand dollars598806(16)-- 1,388
      United States dollars3,0951,076(905)-523,318 
      Japanese yen7963,303(2,768)-971,428 
      German marks998151(166)-(19)964 
      Special drawing rights (IMF)164142(1)-(33)272 
      British pounds2921(200)-(41)52 
      Swiss francs747(23)-(24)7 
      Other3745(1)-(4)77 
            Total marketable securities and deposits5,9875,571(4,080)-287,506 

Table 26.11. TYPE OF PUBLIC DEBT

     Total debt
 Foreign currency debtDomestic currency debt  
Outstanding atAmountPercentage increase on previous yearAmountPercentage of total debtAmountPercentage of total debt
 $(million) $(million) $(million) 
31 March–
19814,23636.57,38163.511,61712.3
19825,54938.68,83261.414,38223.8
19837,76541.410,96858.518,73330.3
19848,22637.613,65262.421,87916.8
198512,41043.915,83756.128,24629.1
198614,72646.017,27654.032,00213.3
198721,72851.220,74448.842,47232.7
198816,97143.422,09756.639,068(8.0)
198916,47041.523,25158.539,7211.7
30 June–
199020,58646.423,76153.644,34711.6
199120,49146.623,44453.443,936(0.9)
199220,71845.125,20054.945,9184.5
199319,86641.827,61258.247,4783.4

PUBLIC DEBT
Cash based

Table 26.12. GROSS INDEBTEDNESS OF CENTRAL GOVERNMENT

As at 31 MarchAmountPer head of population
 $(million)$
198421,8796,772.33
198528,2468,666.37
198632,0029,776.44
198742,47212,933.77
198839,06811,780.60
198939,72111,933.96
As at 30 June
199044,34713,204.26
199143,93612,936.58
199245,91813,174.38
199347,47813,565.14

Don McKinnon voting at the UN.

CROWN LIABILITIES
As at 30 June 1993

Table 26.13. INTEREST PAYMENTS

Year endedInterestInterest on overseas debt as percentage of exports of goods and servicesRecovery of interest from government enterprises and investmentsNet interest interest costNet cost as a percentage of total taxation

*Includes interest on New Zealand Railways Corporation debt from 1990 onwards.

Exports of goods and services from Department of Statistics annual GDP expenditure series.

Revised to include interest credited to the Crown Settlement Account.

§ Estimated actual.

OverseasNew ZealandTotal*     
   $(000)
31 March–
19861,026,4272,275,9533,302,3807.41,485,8371,816,54312.8
19871,292,1312,777,3074,069,4388.51,664,6442,404,79413.8
19881,477,7763,469,9964,947,7728.91,940,4033,007,36914.0
19891,371,9623,115,311487,2737.61,366,8823,120,39113.6
30 June–
19901,525,0003,200,0004,725,0007.9922,0003,803,00014.5
19911,692,0002,932,0004,624,0008.4879,0003,745,00014.5
19921,691,0002,456,0004,147,0007.9695,0003,452,00013.9
1993§1,500,0002,413,0003,913,0006.3509,0003,404,00013.2

REVENUE AND FINANCIAL NET EXPENDITURE
Percent of GDP

This table shows the maturities of outstanding debt analysed by financial years ended 30 June.

Table 26.14. MATURITY PROFILE, AS AT 30 JUNE 1993

 1993/941994/951995/961996/971997/981998/99 -2002/03After 2002/03Total
    $(000)   
Outstanding debt
New Zealand dollar debt
      Government stock1,9483,1192,4093,0482,0905,0881,36519,067
      Treasury bills6,138------6,138
      Retail stock79013589136---1,150
      Reserve Bank bills1,056------1,056
      Loans and foreign-exchange contracts61--201137-201
Total New Zealand dollar debt9,9933,2542,4983,2042,2035,0951,36527,612
Foreign currency debt
      United States dollars2,6062,2487843705631,0971,8469,514
      Japanese yen1,6457092152654751,6816345,624
      German marks346549227330-219-1,671
      British pounds-280--392-5201,192
      Swiss francs7917519876-331-859
      European currency units--1644---645
      Other367(6)-----361
Total foreign currency debt5,0433,9551,4251,6851,4303,3283,00019,866
Total outstanding debt15,0367,2093,9234,8893,6338,4234,36547,478
Marketable securities and deposits
      New Zealand dollars1,295---93--1,388
   $(000)   
      United States dollars2,496136272168133113-3,318
      Japanese yen1,06999519164--1,428
      German marks310211266474981-964
      Special drawing rights (IMF)272------272
      British pounds52------52
      Swiss francs7------7
      Other366109412-77
Total marketable securities and deposits5,537362643415343206-7,506

FISCAL BALANCES
Percent of GDP

26.4 Local government finance

Since November 1989 local authorities have undergone substantial change. The number of authorities has been reduced to 87 by amalgamations and boundary changes as well as absorption of ad hoc authorities (such as pest control boards) into district, city and regional councils.

There has been a separation of activities into regulatory type functions and those which are run along the lines of a normal business. To facilitate this, councils have set up business units which compete with outside businesses for council contracts. Previously, the work was normally done by council employees without going through the tendering process. The main activities undergoing this process are roading, works and maintenance and refuse collection. Financial information covering business units and the councils is shown in below.

Protesting the change of Southpower from a board to a company.

In addition to business units, councils often have majority shareholdings in electrical supply companies as well as companies which operate ports, airports and bus transport.

Table 26.15. LOCAL AUTHORITY STATISTICS–NON TRADING ACTIVITIES*†

 1990-911991-92

*Coverage: All activities of local authorities not classified as trading activities, eg local government administration, provision of water supply, roading, parks and reserves, town planning and regulation.

June balance date.

These items were not specifically collected in the 1990/91 Local Authority Census.

 $(million)
Income
Rates (including water rates)1,639.91601.1
Petroleum tax21.321.4
Grants, subsidies and levies391.2302.7
Fees and fines100.497.9
Sale of goods and services522.4550.0
All other income251.1275.7
            Total current receipts2,926.32,848.8
Operating expenditure
Employee expenses971.5863.5
Interest270.2253.1
Indirect taxes28.527.2
Depreciation173.7287.0
Purchase of goods and services1,153.21,181.9
All other expenditure258.3171.1
            Total operating expenditure2,855.42,783.8
Surplus before abnormal items70.965.0
Gains from extraordinary transactions..5.5
Surplus from trading divisions..7.0
Surplus after abnormal items70.977.5
Stock change4.5-10.9
Additions to fixed assets447.6459.1
Disposals to fixed assets57.8142.2

Rates. The principal item of income for local authorities collected by way of a tax levied on landowners and based on the value of the land. Additional rates are sometimes levied for special projects which may be a fixed charge in addition to normal rates. Water rates are included, but water sold by meter and connection fee is deemed to be a sale and is included under sales of goods and services.

Petroleum tax. A tax paid by oil companies to local authorities which is based on the quantity of petrol sold.

Grants, subsidies and levies. Income from central government, other local authorities and other organisations which is provided to reduce the cost of a service of the receiving authority. The major portion of this item is grants received from Transit New Zealand by local authorities for roading maintenance and construction.

Fees and fines. Income related to local authority regulatory function, includes drivers licences, dog registration, building permits and public health inspection fees. Admission and parking charges are deemed to be a sale and are included under sales of goods and services.

Sales of goods and services. Income received by the local authority for the provision of goods and services. Sales charged within the authority are excluded.

Other income. Income related to interest from dividends, donations, bad debts recovered and insurance claims received.

Expenditure. The purchase of goods and services and labour costs are the major items of expenditure with the maintenance of the infrastructure being the biggest consumer of expense. Works and services that have been contracted outside the authority are included under purchases of goods and services.

Previously, an infrastructural asset (eg a road) did not have a book value in the accounts and therefore no depreciation was claimed. Now authorities are obliged to value their assets, some are claiming depreciation which shows an increase on the previous year.

Extraordinary transactions. Any gain or loss from items outside the normal course of local authority business such as from the sale of assets, revaluation of capital assets or extraordinary exchange transactions.

Trading division transfer. The transfer of a surplus or loss from the trading divisions of local authorities.

In addition to business units, councils often have majority shareholdings in electrical supply companies as well as companies which operate ports, airports and bus transport. A small number of councils have also established or plan to establish LATEs (Local Authority Trading Enterprises).

Table 26.16. 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)
198764.564.5-209.3
198852.452.4-524.3
1989106.9106.9-521.0
19901.31.3-487.0
199169.369.3-416.7
199258.758.7-579.0

The Rutland Hotel, part of the redevelopment and revitalisation of Wanganui's Main Street.

Table 26.17. BORROWING BY TYPE OF LOCAL AUTHORITY

Local authorityYear ended 31 March
199119921993
 $(million) 
Municipalities361.1434.4271.2
Counties---
District councils81.5107.6149.7
Regional councils157.849.360.3
Electric power and gas boards69.2155.7154.7
Area health boards108.1160.7284.5
Others-5.211.2
Total amount borrowed777.7912.9931.6

Table 26.18. SOURCE OF MONEY BORROWED

SourceYear ended 31 March
199119921993
 $(million) 
Housing Corporation3.14.53.6
Local Authority Funds11.09.332.1
National Provident Fund52.829.58.1
Registered banks, insurance and pension funds544.9665.9695.3
Other financial intermediaries52.690.4118.0
Brokers, solicitors nominee companies, and other agents23.065.731.9
All other sources90.347.642.6
Total amount borrowed777.7912.9931.6

Contributors

  • 26.1 The Treasury.

  • 26.2 Inland Revenue Department; Customs Department; Ministry of Transport; The Treasury.

  • 26.3 The Treasury.

  • 26.4 Statistics New Zealand.

Special articles

The Treasury.

Further information

Budget (Parl paper B6).

Corporate Plan Inland Revenue Department. 1993.

Financial Statements of the Government of New Zealand (Parl papers B1 HY and B1, Pts I & II)

Fiscal Results for the Government of New Zealand. The Treasury (six times per year).

GST Guide, (booklet) Inland Revenue Department, 1994.

Key Statistics. Statistics New Zealand (monthly).

Local Authority Statistics, Non-trading Activities. Statistics New Zealand (annual).

National Superannuation Surcharge, (booklet) Inland Revenue Department, 1993.

Report of the Inland Revenue Department (Parl paper B23)

Report of the Local Authorities Loans Board (Parl paper B17).

Report of the Treasury (Parl paper B27).

Retiring Allowances and Redundancy Payments, (booklet) Inland Revenue Department, 1993.

Road User Charges, (booklet) Ministry of Transport, 1989.

Stamp Duties, (booklet) Inland Revenue Department, 1992.

Chapter 27. National economy

Auckland's commercial district.

27.1 The economy

Describing and analysing the New Zealand economy requires considerable subtlety. In comparison with some of the economies with which we interact most, New Zealand's is small and simple, yet in comparison with many others, the value of activity in New Zealand is large and complex. The goods and services produced and consumed in New Zealand have many characteristics in common with those of other economies (indeed they are often identical) and yet the New Zealand economy must be understood in its own context and nature rather than merely fitted into international classifications.

New Zealand's cultural, political and social institutions are much indebted to our Maori heritage, by what was brought by the predominantly British immigrants and to what has been developed within New Zealand by local activity shaped by a continuing inflow of ideas and people. The economy, however, owes very little to the Maori heritage. Rather, Maori have had to adapt to participate in the economy, and current efforts to rectify departures from the provisions of the Treaty of Waitangi owe a great deal to the injustices that accompanied that process, most of them being unintended.

A pastoral colony

The modern New Zealand economy was developed almost entirely to participate in the 19th century economy centred on Europe and North America. Some natural resources were valuable once they were recovered and transported internationally, such as goldmining, which was (for a while) a major component of the New Zealand economy.

But the principal resource of New Zealand was the combination of land and climate which provided a long grass-growing season and made it possible to rear farm animals cheaply. Wool grown in New Zealand could compete successfully in the North Atlantic economy while providing incomes in New Zealand which were high in relation to those which could be earned elsewhere. From the end of the 19th century, wool was joined by refrigerated products, predominantly butter and cheese and frozen lamb. These exports financed a wide range of imports, allowing New Zealanders access to much the same pattern of consumption as was available in the industrialised countries of Europe and North America (and in other similar economies, such as Australia).

The New Zealand economy was therefore built around trade, and around trade in agricultural products. The relatively high incomes which could be earned in New Zealand attracted a continuing inflow of immigrants and induced a high rate of natural population increase. Most people did not work directly on farms but in urban centres. Agriculture required many services and inputs, and especially with the development of refrigerated products, some processing before being exported. Some imports could be transported more cheaply in bulk or as components, with the final packaging or assembly being done in local industries or services. New Zealand towns, while small in an international perspective, supported economic activity for which both production and consumption were entirely within New Zealand.

The New Zealand economy was one where ‘modernization’ was significantly different from the kind of ‘industrialisation’ elsewhere. This is the sense of the description of New Zealand as a ‘born free’ economy, one which achieved high income levels without industrialisation, although the term is misleading if it suggests that those high incomes were available without hard work.

Because Britain did not restrict imports and had a strong demand for the products which New Zealanders could produce most efficiently, it was overwhelmingly important among New Zealand's export markets. Because the settlers mostly had British ancestry and because the continuing inflow of newspapers and magazines was mostly from there, British goods largely satisfied consumption demand in New Zealand. This was also convenient for firms which could organise both exporting and importing. The political relationship between Britain and New Zealand was of secondary importance—New Zealand very early gained de facto control of its own trade relations—and while New Zealand governments provided some tariff preferences for British goods, they were not very important either.

IMPORTS
By country of origin

EXPORTS
By destination

Government intervention in the economy

Governments did, however, have an important economic role. In the 19th century, there was little interest anywhere in the idea of real income per capita, but New Zealanders were aware that their standards of living were better than those of Britain. The prevailing implicit economic objective was to maintain that position while building a larger population.

'Development' had the sense of (and which would now be attributed as) extensive growth, subject to the constraint that average real income should be maintained. Contemporary discussion was much more in terms of concrete examples of new railways, new industries, or newly farmed land rather than in any abstract terms. Whenever the government apparatus was judged to be useful in furtherance of this objective, there was little resistance to its use. There was little interest in the ‘majesty’ of government; in the economic sphere, it was readily accessible, as, when the population was small, it was in a personal sense.

Government was directly responsible for building and operating railways, and when gaps in the institutions available were not otherwise filled, as with insurance companies and some forms of financial institutions, a government agency was created. Governments depended heavily on customs duties for their revenue, and in designing tariffs, preference was given to activities which were established in New Zealand although, as far as possible, not at the expense of exporters. The government's role was largely supplementary to the private sector rather than seeking to control it.

In 1930s New Zealand, as elsewhere, government's economic responsibilities increased. Unemployment increased in the 1920s as more and more work was organised on the basis of continuous employment rather than relying on contract labour, but in the 1930s, unemployment rose to unprecedented levels. The problems were international in scope, and were transmitted to New Zealand through lower export prices. In New Zealand, both the government and the private sector found it very hard to respond other than by waiting for the problems to be solved overseas, although there were some determined efforts at local initiative. Despite the growth of beliefs that New Zealanders had drawn together in the face of a malevolent international economy, the experience of the 1930s was actually one of very considerable social tension. Recollections of the impact of unemployment played a key role in thinking about the economy for many years thereafter. Furthermore, the traditional belief that if the power of the state was useful it should be employed, was reinforced by changed international thinking which held that governments should be responsible not only for their own direct economic activities but for ensuring that the economy as a whole be as productive as possible.

One particular event joined with this historical background to shape the economy which emerged into the years after World War II. As incomes in New Zealand recovered from depression levels, the country's demand for imports rose. In December 1938, faced with a balance of payments crisis, the Labour Government introduced import and exchange controls. Unwilling to restrain imports by deliberately cutting incomes because a recurrence of unemployment would be unacceptable, the Government attempted instead to protect overseas reserves by licensing commodity imports and instituting exchange controls for other items involving overseas payments.

Import and exchange controls varied in severity from time to time and gradually declined in importance before their abolition in 1984. They survived largely because of the protection they afforded particular industries. Although they were introduced mainly because of a balance of payments crisis, their protective implications were quickly recognised. Politicians were apt to defend them in terms of their ability to promote industrial growth, even though they were well aware that New Zealand's real income was reduced if local industry grew only because cheaper imports were excluded.

The profits and jobs of many firms came to depend on the shelter afforded by import controls. The fear that these might be jeopardized made it politically difficult to manipulate the controls to contain foreign exchange payments within the limit of export earnings. And yet the workers in protected firms might have contributed more income in other occupations. In retrospect, the 1938 measures can be seen as a crucial component of the post-depression policy of ‘insulating’ the New Zealand economy from overseas influences. As such, they marked a significant discontinuity in the country's economic history.

Government would, in any case, soon have had many more direct economic responsibilities, as all countries use controls in wartime. What was unusual in New Zealand is that controls were associated with deliberate government policy and extension of the welfare state rather than with a wartime emergency. After some false starts, a ‘Stabilization Commission’ moderated price and income increases and in later years was often looked back upon with nostalgia. It was less often noticed that the success which was achieved owed a great deal to the strong discipline of fiscal policy which accompanied stabilisation. (The whole structure also depended on a willingness of sectional groups to subordinate their interests to the overwhelming objective of military success.) Because war created strong demand for New Zealand's exports, the balance of payments crisis was overcome, but controls were entrenched.

At the end of the war, many controls were dismantled but not import and exchange controls. Throughout the 1950s and 1960s, the basic structure of the economy depended on them, although precisely how was far from clear at the time. Import controls did not work through limiting the total value of imports but through ensuring that imports were mostly materials and equipment used in New Zealand activity. Businesses in New Zealand knew that they would be protected from competing final goods while generally being able to acquire needed inputs. Domestic investment was thereby enhanced since entrepreneurs could be confident about their markets. Even if they had misjudged the level of demand, errors would not be greatly penalised since population and income growth would, before long, enable the investment to be utilised.

High levels of private investment ensured that demand for labour would be high and New Zealand maintained a remarkably low level of unemployment. High levels of employment and aggregate demand meant that there was always a tendency for the demand for imports to run ahead of what could be financed from export receipts; the economy experienced a foreign exchange constraint. Bank credit was subject to direction by the Reserve Bank and was a major instrument in reducing demand when necessary. The government's own substantial investment programme could also be used to some extent.

The low level of unemployment was a major benefit of this structure. Not only was aggregate employment high, but a wide variety of jobs could be provided to suit the aptitudes and interests of individual New Zealanders. The value of this was realised only when it was lost in more recent years. The costs of the structure were that resources in New Zealand were not directed towards their most valuable use and incomes were lower on average than they could have been. This also was not fully realised at the time. It was noted that in relation to other countries, New Zealand got a lower return from its high level of investment, but even more attention was directed to the way that consumer goods available overseas were excluded from New Zealand or available only to customers who were somehow able to get themselves into a preferential position. (This was especially true of motor vehicles.)

Growth and diversification of exports

The structure gave a special role to exports. But while the New Zealand economy grew at a rate which was quite high in relation to earlier periods of history, it was soon apparent that export growth was not going to facilitate growth at a rate equal to what was being achieved by other countries. At the same time, growth of average or per capita real incomes was much more prominent than it had been in earlier years.

In the world generally, measurement of economic growth was more common: the growth and development of the world's relatively poor countries was a major topic of international economic and political discussion; and relative growth rates were used to assess the strengths and weaknesses of countries and their economic systems. While New Zealand's indigenous idea of ‘development’ in terms of expansion at a constant average income did not die overnight, it gradually became less important than growth of average incomes.

The market in Britain for New Zealand's exports did not offer scope for faster growth. Britain was growing less rapidly than many other countries, it was becoming concerned about its own farmers and wanted to protect their domestic market, and from the late 1950s onwards, there was always the prospect that Britain would eventually join the European Economic Community (EEC) and accede to its protectionist regime for agriculture. So the objective for New Zealand became diversification—diversification of both markets for traditional exports and diversification of the range of goods exported.

There was considerable success in this endeavour. Whereas in the early 1950s, under the particular stimulus of high commodity prices during the Korean War, Britain took about 90 percent of New Zealand's exports, by the time it actually joined the EEC in 1973, it took less than 20 percent. Over the same period, New Zealand's exports became more varied than the traditional frozen lamb, wool, butter and cheese. Much of the diversification was within agriculture, most obviously in the widening range of dairy products and the growth of beef exports. Furthermore, forest products became an important export. There were even moves towards exporting of manufactured goods (with government incentives being used for this purpose) but in the 1960s success was limited in scope, being mainly confined to aluminium processing.

Nevertheless, towards the end of the 1960s, there were many hopes that the constraint on New Zealand's growth rate was being removed. In 1967, the Government took the opportunity created by a realignment of British Sterling with other international currencies to devalue even further than sterling. New Zealand production became more competitive, especially for manufactured goods in Australia. Further, international commodity prices boomed, mainly in response to the impact of the Vietnam War on the United States economy.

The oil crisis and stagflation

The hopes proved to be misplaced. There were many reasons, but the main one was that in 1973, Middle East oil producers succeeding in implementing and sustaining a very sharp increase in the price of oil. In effect, a significant slice of world income was redistributed away from oil importers to oil producers, and New Zealand's export markets, although markedly more various than they had once been, were overwhelmingly oil importers. Diversification proved to be no answer when all markets contracted together.

The Government responded with the ‘growth’ or ‘think big’ projects, especially after a further rise in the relative price of oil in 1979. It was sensible to seek to use New Zealand's hydrocarbon resources which had become more valuable in line with the world price of oil. Unfortunately, this was presented in the readily-understood but misleading rhetoric of increasing New Zealand's self-sufficiency rather than as an element in a positive adaptation to a changed world economy. The real key was the competitiveness in the light of international prices, of New Zealand's industries whether they were growth projects, suppliers to growth projects, or only indirectly linked with the growth projects.

At the same time, reduced real incomes intensified sectional conflict and fed inflation. New Zealand's experience of inflation had previously been in line with international trends but became much larger, making it more difficult to evaluate investment projects and diverting attention from production to securing shelter against the impact of inflation. Unemployment began to grow. The government borrowed overseas, initially in line with international recommendations for dealing with the increased financial reserves of oil producers, but the borrowing was maintained for too long. It was subsequently defended as a sensible way to develop New Zealand's resources, but in fact it was supporting domestic consumption at a level above what was justified by production. Assistance to exporters was extended to agriculture, with the result that producers were given no incentive to look at trends in world markets, while much of the support was captured by urban suppliers of inputs to farmers. Some farmers gained, less by increasing output of marketable produce than by selling farms at prices which included capitalisation of government support.

There were achievements during the 1970s. Exports of manufactured goods (to Australia and other markets) did grow. Some of the agricultural sector developed markets in horticultural products and kiwifruit. The transport sector was significantly rationalized. The Closer Economic Relations (CER) Agreement with Australia provided exciting new opportunities for manufacturing and initiated a reorientation towards the international economy. But by 1984, it was clear that existing policies were leading New Zealand into increased overseas debt while not removing the disparity of incomes compared with other countries. The mechanisms which had produced full employment in the 1950s and 1960s had been lost; the fundamental problems remained. The election of a new government in July 1984 (which had resulted from a snap election and therefore had given few hostages to particular interest groups), provided an opportunity for an unusually sharp change of direction.

The economic achievements of the years between World War II and 1984 should not be overlooked. But while it is important to recognise the efforts of the diverse groups of people who grappled with policy issues, managed business enterprises of all kinds in the environment of the 1960s and 1970s, and worked diligently and intelligently at all kinds of employment, it is nevertheless true that New Zealand's average income was falling relative to what was being achieved in other countries. And while New Zealand's gross domestic product grew quite strongly in the late 1970s and early 1980s, an increasing share of the gains was returned to overseas lenders rather than to New Zealanders, and internal problems were suppressed rather than resolved.

Restructuring the economy

From 1984, there was therefore a major change in policy and in the basic structure of the economy. Economic policy was focussed on efficiency and equity. Both elements were controversial, and merely initiate enquiry rather than provide policy conclusions. But throughout the 1980s and early 1990s, there was continual and searching scrutiny of what government should try to do in the economic and social fields, and what instrument would best promote the objectives of the government. To describe this as a crusade is not misleading, especially for the Labour Government of 1984-90 which wanted to be seen by historians as a reforming government, comparable with the governments of the 1890s and of the later 1930s.

Changes were introduced in both the direct activities of the public sector, and the legislative and regulatory environment within which the private sector operated. In the former respect, particularly important innovations were the commercialisation and privatisation of government trading activities, and the reform of public sector management in which a key element was a change from funding programmes to purchase by ministers of defined services from government departments. Furthermore, the Reserve Bank was granted a high level of autonomy and charged with controlling inflation, a responsibility which it discharged with great success.

The importance attached to providing an environment in which other decisionmakers were induced to respond to market signals is shown most clearly in the removal of producer subsidies and the reduction of protection. Encouraging decisionmakers to respond to opportunities also necessarily promoted efforts to remove barriers in the way of their doing so, and the Government therefore implemented a process of regulatory reform. The intention was to remove inappropriate regulations, not all regulation. However, as the process started from a position where official controls were excessively detailed, it was not easy to maintain that distinction in popular discussion.

Governments accepted the argument for ‘transparency’—that if there are reasons for government to facilitate the operations of some group in society, they should be exposed for public scrutiny and debate. Ironically, the governments involved, both the Labour Government of 1984-90 and its successor National Government, 1990-93, were widely criticised for breaking electoral commitments. There is weight in this argument, which had a part in the 1993 decision, by referendum, to change the electoral system, but it underestimates the difficulty of telling people what they do not want to hear. Whatever is the final verdict on that issue, successive governments really did engage in an unusually searching analysis of what they were trying to do, making academically honest judgements about income transfers of all kinds.

The whole of the process of ‘restructuring’, the reorientation of New Zealand firms and enterprises towards being international businesses rather than providers to a protected domestic market, and the reform of the public sector, had to be managed within an overall stance of fiscal policy. It was not easy for the Government to manage its revenue and expenditure so as to support the ‘restructuring’ it wished to promote. On tax policy, the key actions were to implement a switch from direct to indirect tax (recommended by various bodies since at least 1967) and broadening the tax base so as to obtain a given total revenue from a lower average tax rate. The switch to indirect tax was achieved through the wide-ranging goods and services tax, (GST), a value-added tax implemented with unusually few exemptions and now widely recognised internationally as a model.

Tax policy was controversial enough, but it was the general stance of fiscal policy which attracted most dissent. The Government chose to withdraw from dealing in foreign currency and to allow the exchange rate to be determined in a free market. It gave up direct controls on wages, prices and interest rates, but made a determined assault on inflation. Such changes were radical, and far from understood. Nor did the Government secure immediately the outcomes it wanted. The need to borrow required it to offer attractive interest rates, and these attracted investors from overseas as well as from within New Zealand. As investment funds flowed into a free foreign exchange market, the exchange rate rose, and exporters, both agricultural and otherwise, found their returns from overseas sales worth less in New Zealand currency. Consumers gained from cheaper imports, but the loss of jobs from industry was more visible and painful. While there were some apparent countervailing gains by 1987, the international stock market crash of that year impacted heavily, revealing the unstable nature of some companies which had seemed to prosper in the new environment.

The background to all fiscal policy decisions was a level of overseas debt that was regarded as undesirable. There was never any prospect (after the election campaign of 1984), that New Zealand would not be able to meet its obligations, but the level of overseas public debt was high. It was expensive to service, and would become more so if international rating agencies decided that the riskiness of existing instruments had increased. Interest payments, on the total debt and not only on the overseas portion, constituted a significant fraction of total government spending, and reduced the Government's freedom of manoeuvre.

The lessons of the 1930s had not been forgotten, but government's management of its own affairs had become markedly more important than it was in the 1950s and 1960s. There was therefore always concern with the level and nature of its expenditure. But that expenditure was critical to activities which were seen by many as essential to the social life of New Zealand (although criticised by others.)

The quest for efficiency and equity

The thrust of government policy was towards securing ‘quality’ of government expenditure, ensuring that public assets and public funds were used as effectively as possible for the objectives towards which they were directed. And those objectives still reflected the overriding aims of efficiency and equity. It was, however, difficult to persuade people that such aims are different from reducing government expenditure for its own sake. People tend to think that fiscal pressures can easily be resolved by reducing spending which is other than that which supports their particular interests.

Economists think naturally of income maximisation, not because they are materialists but because incomes provide people with choices. Even for policy objectives, which are usually expressed in terms like ‘participation in society’ and which are therefore thought of as ‘social’ rather than ‘economic’, the experience of most people depends on their ability to make decisions about the disposition of household incomes. This is especially true of incomes earned in the labour market, which is a principal reason why employment levels have such social significance. But participation in society extends to collective activity, to the sense of belonging or social cohesion which follows from sharing in joint endeavours. Society may want to allocate some goods or services according to ‘need’ rather than according to income. It then has to find some means of judging ‘need’ and some process for ensuring that responsible institutions satisfy their mandate rather than use resources for their own purposes.

The essential policy decision was one with as many social as economic dimensions: the relative share of adjustment costs to be borne by those dependent for employment and incomes on the tradable sector and those similarly dependent on government expenditure. Most social of all was the judgment that existing New Zealanders should rely less on forcing succeeding generations to finance current consumption. Discussion of the budget deficit and the general strategy of fiscal policy is often regarded as technically demanding and of interest only to economists, but it is at the core of a social strategy.

The whole structure of policy was aimed at satisfying community aspirations, both social and economic. But those community aspirations are diverse and inconsistent so that no government can ever be entirely successful. And criticism of the government grew as unemployment levels climbed. New Zealand was not an attractive place for investment. The sharemarket crash of 1987 had a deep impact, especially in the property sector, and the climate of opinion (most obviously in Auckland) remained pessimistic. While a careful review of the evidence shows that experience is highly variable within all sectors of the economy, with firms which were able to adapt to changed circumstances finding areas of expansion, the news media remained dominated by the negative aspects of economic restructuring. And while their picture was misleading, it was undoubtedly true that growth of GNP was more difficult to secure than the Government expected and intended. The shift from ‘insulation’ to ‘international orientation’ was difficult.

It is conventional now to say that after 1984, the Government took the right actions but in the wrong sequence, that it should have moved first on labour and goods markets and only later deregulated the financial markets. There are obvious intellectual attractions in timing policy interventions according to the relative responsiveness of private sector participants, but such a choice was never available to policymakers. In 1984, exchange controls were breaking down anyway, as they were widely seen to be both ineffective and inappropriate in the face of technical change in communications. In a particular example, officials were well aware that there were dangers in floating the exchange rate when the budget deficit was high. They recommended reducing the deficit as much as possible, and then faced the question, given that political judgement set a limit on how rapidly the deficit could be reduced, was it wise to float the exchange rate in order to gain monetary control? Advising them that it would have been even better to first further reduce the deficit is hardly helpful.

An international competitive economy

The New Zealand economy has been changed into one with an international orientation. Especially since the CER Agreement with Australia, exports of manufactured goods to Australia have been a major activity. But manufactured goods are also exported to North America, Europe and Asia. They may depend on niche marketing (where manufacturers have narrowed their range of activity in which they can be internationally competitive), often relying on some expertise related to the agricultural and forestry sectors but sometimes relying on skill, knowledge or some other aspect of human capital. For an economy which is small in relation to Australia let alone Japan, the European Community or Europe, (but not relative to a great many of the 170 or so members of the United Nations), something which looks like a niche to others can be a major market. There are many examples such as the supply of windscreens to the builders and restorers of vintage cars in the United States. But the basis of manufactured exports is not always so bizarre. It may simply be a well developed human skill, as in the case of control systems sold to Narita airport, or to the manufacturers of noodles or fish-farm feed in Korea. At the same time, agriculture and forestry are still the uses of New Zealand resources which are most valuable, in that they provide the best return in international markets. The New Zealand economy is a complex one, in which the key elements are the use of the skills and aptitudes of New Zealanders in securing high average incomes through international competitiveness, and the balancing of individual initiative with collective provision of services which contribute to a unique social and political community.

27.2 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 economic analysis, forecasting, and policy formulation. The system is based on an internationally accepted standard detailed in A System of National Accounts (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 economic censuses and surveys of Statistics New Zealand are all integrated into the system, as are the inter-industry studies. 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 published each year. Provisional estimates are prepared for the latest March year only for the consolidated accounts of the nation (see below). Revised estimates for previous years are also prepared and detailed breakdowns of some of the main aggregates are also published for these years. The information used to compile the accounts becomes available progressively over a long period, and for some areas of the economy may not be available for up to three years after the March year to which it relates. Consequently, national accounts estimates are subject to revision during this period.

Tables in this section contain data for the latest available five years. For the consolidated accounts of the nation, data is provided for the years ended March 1988 to 1992, while some detailed breakdowns of the main aggregates are included for the years ended March 1987 to 1991.

Explanation of the terms gross domestic product, gross national product and gross national income are given below. Definitions of other national accounting terms can be found in the glossary at the back of this book.

Table 27.1. PRINCIPAL AGGREGATES OF THE NATIONAL ACCOUNTS

AggregatesYear ended March
1988-891989-901990-911991-921992-93
   $(million)  
Gross domestic product66,40371,43573,60173,37877,067
    Plus, net factor receipts from rest of world-3,229-4,626-3,956-3,538-2,786
Gross national product63,17466,80969,64569,84174,281
    Less, consumption of fixed capital5,5406,0336,4446,7747,191
National income at market prices57,63460,77563,20163,06767,090
    Plus, net current transfers from rest of world340390336367400
National disposable income57,97461,16663,53763,43467,490

Table 27.2. NATIONAL ACCOUNTS: 1963–1993

Year ended MarchGross National Product*†Gross Domestic Product*†National Income*†GDP at 1982/83 prices†

*Excludes stock valuation adjustment.

Includes stock valuation adjustment.

   $ NZ(millions)   
19633,096..3,114..2,847..17,779
19643,377..3,397..3,112..18,884
19653,699..3,721..3,412..20,038
19663,981..4,012..3,664..21,259
19674,148..4,190..3,775..22,065
19684,328..4,375..3,938..21,875
19694,610..4,642..4,184..22,341
19705,092..5,133..4,626..23,469
19715,791..5,832..5,268..24,338
19726,834..6,880..6,285..24,957
19737,846..7,900..7,236..26,063
19749,162..9,199..8,473..27,933
197510,049..10,131..9,250..29,059
197611,579..11,744..10,636..29,548
197713,936..14,201..12,859..29,591
197815,214R14,66115,55114,99714,04713,49328,784
1979..16,563..16,972..15,26428,843
1980..19,337..19,797..17,86829,580
1981..22,578..23,089..20,89429,897
1982..27,276..27,991..25,45431,355
1983..30,678..31,536..28,44131,536
1984..33,621..34,896..30,96032,387
1985..37,526..39,528..34,34433,994
1986..42,915..45,435..39,20334,301
1987..52,321..55,088..47,98535,210
1988..58,661..61,867..53,61035,480
1989..63,174..66,403..57,63335,099
1990..66,809R..71,435R..60,775R35,638
1991..69,645R..73,601R..63,201R35,483
1992..69,841R..73,378R..63,067R34,066
1993..74,281R..77,067R..67,090R35,893

Consolidated accounts of the nation

The consolidated accounts of the nation comprise four accounts as follows:

Gross domestic product and expenditure. Gross domestic product is a measure of the value added from all economic activity in New Zealand. The account shows the various forms of income generated by production, and the categories of the final expenditure on the available goods and services.

National disposable income and its appropriation. National disposable income is the value of income available to New Zealanders, consisting mainly of the incomes generated in New Zealand. Adjustments are made for the income paid to, and received from, the rest of the world. The account also shows that part of disposable income which was spent by New Zealanders on current consumption, and the portion of income which was saved.

Capital finance. Capital expenditure is recorded in this account. The difference between the accumulation of capital assets and the sources of funds (mainly savings and the income set aside for the replacement of capital equipment) gives a residual to be borrowed from (or lent to) the rest of the world.

External transactions. This account brings together all transactions with the rest of the world. The residual ‘surplus of nation on current transactions’ (when adjusted for net capital transfers) records New Zealand's net borrowing from the rest of the world.

Table 27.3. GROSS DOMESTIC PRODUCT AND EXPENDITURE

ItemYear ended March
19891990199119921993
   $(million)  
Compensation of employees32,00432,71833,20232,69733,426
Operating surplus19,73722,02723,16823,36025,744
Consumption of fixed capital5,5406,0336,4446,7747,191
Indirect taxes9,29710,85910,98210,72010,923
Less, subsidies175202194172218
Gross domestic product66,40371,43573,60173,37877,067
Final consumption expenditure—     
    General government11,02311,72812,52912,41712,445
    Private40,34043,42445,45645,88647,282
Value of physical increase in stocks3962,0051,0135481,650
Gross fixed capital formation12,89014,68114,57012,22213,350
Statistical discrepancy-605-440-88191625
Gross national expenditure64,04571,39673,48071,26475,352
Exports of goods and services18,06419,16219,94921,48523,753
Less, imports of goods and services15,70619,12319,82719,37022,038
Expenditure on gross domestic product66,40371,43573,60173,37877,067

Table 27.4. NATIONAL INCOME AND OUTLAY

ItemYear ended March
19891990199119921993
   $(million)  
Final consumption expenditure—     
    Government—Central9,72310,34010,90810,78810,767
    Government—Local1,3001,3881,6211,6291,678
    Private—Households39,76442,79444,73645,12746,519
    Private—Non-profit organisations serving households576630720759763
Savings6,6106,0145,5535,1317,762
Appropriation of national disposable income57,97361,16663,53763,43467,490
Compensation of employees32,00432,71833,20232,69733,426
Compensation of employees from the rest of the world, net-----
Operating surplus19,73722,02723,16823,36025,744
Property and entrepreneurial income from the rest of the world, net-3,229-4,626-3,956-3,538-2,786
Indirect taxes9,29710,85910,98210,72010,923
Less, subsidies175202194172218
National income57,63360,77563,20163,06767,090
Current transfers from the rest of the world, net340390336367400
National disposable income57,97361,16663,53763,43467,490

Table 27.5. CAPITAL FINANCE

ItemYear ended March
19891990199119921993
*Includes all government-owned producer enterprises.
   $(million)  
Value of physical increase in stocks3962,0051,0135481,650
Gross fixed capital formation—     
    Private9,63411,32811,0179,79011,018
    Central government*2,3422,5022,7931,6551,454
    Local government*914850760777877
Purchase of intangible assets from the rest of the world, net-----
Net lending to the rest of the world-401-3,728-2,789-180192
Gross accumulation12,88512,95712,79412,58915,191
Savings6,6106,0145,5535,1317,762
Consumption of fixed capital5,5406,0336,4446,7747,191
Capital transfers from the rest of the world, net130469710876862
Statistical discrepancy60544088-191-625
Finance of gross accumulation12,88512,95712,79412,58915,191

Table 27.6. EXTERNAL TRANSACTIONS

ItemYear ended March
19891990199119921993
   $(million)  
Current     
Exports of goods13,99315,03115,68617,02918,903
Exports of services4,0714,1314,2624,4564,849
Compensation of employees from the rest of the world-----
Property and entrepreneurial income from the rest of the world610-254403263506
Other current transfers from the rest of the world8299971,0821,1401,179
Current receipts19,50319,90521,43422,88825,438
Imports of goods11,58314,87115,23814,48216,546
Imports of services4,1244,2524,5904,8885,491
Compensation of employees to the rest of the world-----
Property and entrepreneurial income to the rest of the world3,8394,3724,3593,8003,292
Other current transfers to the rest of the world489606746773780
Surplus of nation on current transactions-531-4,197-3,499-1,056-671
Current disbursements19,50319,90521,43422,88825,438
Capital     
Surplus of nation on current transactions-531-4,197-3,499-1,056-671
Capital transfers from the rest of the world, net130469710876862
Capital receipts-401-3,728-2,789-180192
Purchase of intangible assets from the rest of the world, net-----
Net lending to the rest of the world-401-3,728-2,789-180192
Capital disbursements-401-3,728-2,789-180192

Inter-industry studies

Inter-industry input-output analysis is a powerful tool for studying national economies. It defines and measures in money terms the relationships between the industry groups in the economy, or between the commodities that are supplied and used by different units within the economy. 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 processing industry, in terms of the increased supporting production required of all the other industries in the economy, and whether that production goes directly to the meat export works, or indirectly to them through other industries. Using the commodity relationships, 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 interrelationships between industries and commodities. The aims are to:

  • Provide an overall view of the economy.

  • Trace the probable effects of major rises or falls in one industry's demand throughout the economy.

  • Enable the effect of actual or hypothesised 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.

  • 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.

The concepts used in the study are reconcilable with those in the national accounts.

The study also provides information on the ‘primary input’ required by each industry. These include labour, imports and profits. Similarly, the disposal of the outputs to consumption, capital formation and exports can be traced. Statistics New Zealand undertakes full-scale five-yearly inter-industry studies covering over 100 industry groups. These are supplemented with updates, containing less industry detail, made between the full studies. The most recent full study is for 1986-87.

Gross domestic product by production group

The contribution of each producer to gross domestic product (GDP) is measured by the value which it adds in producing goods and services. For each producer, value added may be calculated in two 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 government as a producer when it carries out its conventional role of the provision of administrative, health, education, defence, and other services. Similarly, the large number of organisations which provide services on a non-profit basis— such as religious orders, schools, hospitals, and sporting clubs—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.

, showing contributions to GDP by production group, is a summary of data contained in full production accounts which are prepared for each of 25 production groups, and which are also analysed by private, central government, and local government sectors. Industry details for 1990-91 and 1992-93 are not yet available.

Table 27.7. CONTRIBUTION TO GDP BY PRODUCTION GROUP

Production groupYear ended March
19871988198919901991
   $(million)  
Market production groups—     
Agriculture3,0463,5153,8774,2803,559
Fishing and hunting223223240213210
Forestry and logging1,0901,2451,4421,5381,564
Mining and quarrying6076717478911,101
Manufacture of food, beverages, and tobacco2,9763,3223,8234,0804,321
Textiles, apparel, and leather1,031850814886931
Manufacture of wood products689663761822759
Manufacture of paper products, and printing1,4311,6951,6841,8411,921
Manufacture of chemicals, petroleum, rubber, plastic1,3701,3561,4281,5751,579
Manufacture of non-metallic mineral products417409388378341
Basic metal industries405380341485420
Manufacture of fabricated metal products2,6832,7372,5492,6732,416
Other manufacturing1249781103102
Electricity, gas, and water1,7101,7532,0042,1012,081
Construction2,9453,2483,2313,2543,100
Trade, restaurants, and hotels10,2479,85510,42911,08912,387
Transport and storage2,7863,1253,3863,5223,610
Communication1,5832,0742,1502,1732,312
Financing, insurance, real estate, and business services7,5809,28210,16110,92510,867
Ownership of owner-occupied dwellings3,4424,0694,9205,2935,930
Community, social, and personal services1,9072,0762,3102,3592,526
Nominal industry (bank service charge)-2,198-2,772-2,866-3,194-3,208
            Total, market production groups46,09649,87453,90157,28958,830
Non-market production groups—     
Central government services5,7756,5707,1707,6427,890
Local government services591625720777885
Private non-profit services384440495539594
Domestic services of households3548676872
            Total, non-market production groups6,7867,6838,4519,0259,441
            Total, all production groups52,88257,55862,35266,31468,271
Plus, GST on production1,4673,2503,4544,4114,705
Plus, import duties570847507629556
Plus, other indirect taxes169211898269
Gross domestic product55,08861,86766,40371,43573,601

In , 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 national accounts 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

and outline gross fixed capital formation. They record purchases of capital assets, reduced by the value of sales of such assets, plus the value of construction work done by an establishment's own employees; no deduction is made for assets used up during the period of account. Land purchases and sales, but not land improvements, are excluded by definition.

The tables, which analyse gross capital formation by production group and asset type, are summaries of detailed tables, which include separate series for private, central and local government sectors.

Table 27.8. GROSS FIXED CAPITAL FORMATION BY PRODUCTION GROUP

Production groupYear ended March
19861987198819891990
   $(million)  
Market production groups—     
Agriculture554466419523682
Fishing and hunting3530512871
Forestry and logging2826162934
Mining and quarrying18030410311292
Manufacture of food, beverages, and tobacco358478571443574
Textiles, apparel, and leather10758614146
Manufacture of wood products158109455657
Manufacture of paper products, and printing228345261354419
Manufacture of chemicals, petroleum, rubber, plastic649297102103122
Manufacture of non-metallic mineral products4547788252
Basic metal industries5293162528362
Manufacture of fabricated metal products270237259177159
Other manufacturing1014645
Electricity, gas, and water542583590565597
Construction192219232219203
Trade, restaurants, and hotels1,3711,2811,5781,4561,880
Transport and storage1,131811861447833
Communication444596482633764
Financing, insurance, real estate and business services1,6572,1803,1453,2463,000
Ownership of owner-occupied dwellings1,8502,1992,5592,5883,045
Community, social, and personal services288308408303410
            Total, market production groups10,62810,90312,08111,49113,109
Non-market production groups—     
Central government services695772701813946
Local government services314315338422441
Private non-profit services102118143164185
Domestic services of households-----
            Total, non-market production groups1,1121,2051,1821,4001,572
            Total, all production groups11,74012,10813,26312,89014,681

Table 27.9. GROSS FIXED CAPITAL FORMATION BY TYPE OF CAPITAL GOOD

Year ended MarchResidential buildingsNon-residential buildingsOther constructionLand improvementsTransport equipmentPlant, machinery, and other equipmentTotal
    $(million)   
19882,7542,9481,1271271,7364,57013,263
19892,8332,9151,2541621,0644,66212,890
19903,3452,6521,3901851,8045,30414,681
19913,44092,3681,4861631,6345,51014,570
19922,9311,6441,5651701,4604,50612,222
19933,1521,5891,1841931,9655,26813,350

Increase in stocks. shows the value of the physical increase in stocks of raw materials, work-in-progress, and finished goods by production group. This excludes the capital gains and losses caused by holding stocks purchased at prices higher or lower than those ruling during the year.

Table 27.10. INCREASE IN STOCKS

Production groupYear ended March
19891990199119921993

*Includes reclassification of units from “food, beverages and tobacco” to “trade, restaurants and hotels”.

For 1991-92 all local government stocks are included in local government services.

   $(million)  
Market production groups—     
Agriculture3222460164156
Fishing and hunting-----
Forestry and logging1,0921,0841,0751,0831,165
Mining and quarrying9-95-2
Manufacture of food, beverages, and tobacco*79-24205-10721
Textiles, apparel, and leather-449-12-2918
Manufacture of wood products-33-2658-193
Manufacture of paper products, and printing-33-1532-48-20
Manufacture of chemicals, petroleum, rubber, and plastic-126104-26-6819
Manufacture of non-metallic mineral products-29-13-16-1-12
Basic metal industries2911-53-5-2
Manufacture of fabricated metal products-30389-60-17862
Other manufacturing-16-4-5-41
Electricity, gas, and water-1810-2110-40
Construction-44-9--
Trade, restaurants, and hotels*-198560-244-212289
Transport and storage-1013-224
Communication-13-20-8-41-19
Financing, insurance, real estate, and business services-----
Ownership of owner-occupied dwellings-----
Community, social, personal services1820615-3
            Total, market production groups3932,0031,0095401,645
Non-market production groups—     
Central government services3-465
Local government services†1111-
Private non-profit services-----
Domestic services of households-----
            Total, non-market production groups4157-
            Total, all production groups3962,0051,0135481,650

An example of foreign investment in New Zealand, the Japanese co-development—Queenstown's Milbrook Golf Complex.

Final consumption expenditure of households

Final consumption expenditure of resident households is available by purpose and type. The series are calculated for the years ended 31 March 1983 onwards. Points to note are:

  • In the tables total expenditure by households in the domestic market (including expenditure by non-resident individuals) is analysed by purpose and type. This total is then adjusted to obtain final consumption expenditure of resident households, by deducting expenditure of overseas visitors in New Zealand, and adding that of New Zealanders overseas.

  • (A), expenditure by purpose, classifies expenditure on goods and services by their use, that is, the analysis distinguishes between the purposes for which households purchase goods and services. Accordingly, a mixture of goods and services may be combined in a single category, for example, the hotels and restaurants item includes expenditure on food, alcohol and accommodation.

  • (B), expenditure by type, classifies expenditure on goods and services by durability. Non-durable goods are defined as those with an average useful life of less than one year. Durable goods are expected to last one year or longer.

Table 27.11. FINAL CONSUMPTION EXPENDITURE OF RESIDENT HOUSEHOLDS (A) BY PURPOSE

 Year ended 31 March
 198819891990199119921993

*Included in ‘hotels and restaurants’ is the expenditure on alcohol consumed in chartered clubs, hotels, taverns and licensed restaurants. Purchases from bottle stores and wine shops are included in ‘beverages’.

Includes fringe benefits received by households.

   $(million)   
Food and beverages      
    Food4,5614,8465,2765,5125,5945,905
    Beverages*1,1441,2571,3751,6431,5781,545
Clothing and footwear2,3832,2552,4072,3852,4142,519
Housing      
    Imputed rent of owner-occupied dwellings5,1736,2406,7827,3757,6037,561
    Rental payments and associated costs1,2871,5101,6101,7221,7451,794
Household goods and services      
    Fuel and power8389231,0111,0871,1881,211
    Furniture, floor coverings and appliances1,4221,3771,4271,3651,3561,454
    Textiles and tableware647655688676688740
    Other goods and services8809881,0201,0731,1501,225
Health services2,1002,3902,5912,8363,0293,270
Transport      
    Cars, motorcycles and vehicles2,0442,0162,2852,0071,6951,538
    Vehicle operation2,7773,1523,3613,4443,3703,403
    Public transport1,3101,4381,5031,6201,6761,674
Recreation*3,0093,2853,4753,6023,6473,883
Hotels and restaurants*3,2323,2203,3783,4133,5383,833
Other goods and services      
    Tobacco8699311,0861,1631,1651,170
    Personal1,2551,3641,4521,5311,6191,679
    Post and telephone6567329139409661,006
    Other services†1,3311,4551,5691,7131,5401,659
            Total expenditure by households in New Zealand36,91740,03443,20945,10745,55947,068
Less, Non-resident households' expenditure in New Zealand. Plus, resident households' expenditure overseas-492-270-415-371-432-549
            Final consumption expenditure of resident households36,42639,76442,79444,73645,12746,519
(B) BY TYPE
 Year ended 31 March
 198819891990199119921993
   $(million)   
Total non-durables10,47211,23612,37113,26813,48613,994
Total durables9,8459,98810,67310,43010,23610,465
Total services†16,60018,81020,16421,40921,83822,609
            Total expenditure by households in New Zealand36,91740,03443,20945,10745,55947,068
Less, Non-resident households' expenditure in New Zealand. Plus, resident households' expenditure overseas-492-270-415-371-432-549
            Final consumption expenditure of resident households36,42639,76442,79444,73645,12746,519

Gross domestic product and expenditure at constant prices

Gross domestic product (GDP) and expenditure on GDP at constant prices is calculated by removing the effects of price changes from the current price production accounts and expenditure aggregates respectively.

contains production-based GDP statistics. That is, estimates of value added for each industry are expressed in the average prices of the base year and are summed to give total GDP. In most cases, the estimates of constant price value added are prepared by extrapolating base year value added by indicator series representing the quantities of output produced.

The series of expenditure on GDP in constant prices is an alternative measure of economic activity within New Zealand. Conceptually, both the production and expenditure-based GDP series are the same. However, as each series uses independent data and estimation techniques, some differences between the alternative measures do arise. Expenditure on GDP statistics are shown in and 27.14.

The constant price series are valued at 1982-83 prices.

Table 27.12. INDEXES OF GROSS DOMESTIC PRODUCT AT CONSTANT PRICES*

 AgricultureFishing, hunting, forestry, miningManufacturingElectricity gas & waterConstructionTrade, restaurants, hotelsOwner occupied dwellingsTransport, communications†General government servicesGDP

*Quarterly indexes are shown as annual equivalents. Base: 1982-83 (= 100.00), Stock valuation adjustment is included.

Includes business and personal services.

Calculated as the average of the four quarterly indexes.

Actual
March year‡          
198596106114112112105104114100107.8
1986116129109116115101106119100108.8
1987119131111118111104109128100111.7
198813612510611911610211113499112.5
198912514410312210310011313797111.3
199011915910512610210111514195113.0
Actual
19911391541001279510011814294112.5
199213316697133749912014695111.2
19931301681031217610012115295113.8
Actual
Quarterly          
1991 Sep11615093139739712014597108.6
Dec1792011021357710512014896118.5
1992 Mar149175100126669612014889111.7
Jun86139103116779912115097109.5
Sep11114997115709712114997109.2
Dec1752141081298110712215395121.4
1993 Mar147171106125759812215590115.1
Jun841391081248510212215595112.9
Sep116R140107144R91104R12315796R116.9R
Dec1832251141229511512316292127.6
Seasonally adjusted
Quarterly          
1991 Sep134169981307498120146100111.8
Dec13215797137739812014799111.5
1992 Mar1321641011327399120149100113.1
Jun1311701021197599121151100113.9
Sep1281701011077098121150100112.5
Dec12816810312976100122152100114.0
1993 Mar13016010613182101122155100116.3
Jun1291731081268410312215699117.6
Sep136163R11213491R105R12315799120.5R
Dec1331791091219010812316098120.5

Gross domestic product at constant prices. The production-based gross domestic product at constant prices series was developed from 1977-78, replacing the previously published Index of Real GDP. Historical statistics linking the two series have been calculated and are available from 1954-55. The quarterly series is only available from the June quarter 1977.

Both actual and seasonally adjusted indexes of GDP at constant prices by industry group are shown in . The seasonal adjustment process removes the effect of regular seasonal events, eg, the increase in consumer spending in the December quarter due to Christmas.

Actual and seasonally adjusted quarterly indexes of GDP at constant prices are shown in the graph below.

Table 27.13. EXPENDITURE ON GROSS DOMESTIC PRODUCT AT CONSTANT PRICES*

 Final consumption expenditureIncrease in stocksGross fixed capital formationGross National ExpenditureExports of goods and servicesLess imports of goods and servicesExpenditure on GDPIndex of expenditure on GDPIndex of production based GDP
PrivateGeneral government
*1982-83 Prices; year ended 31 March 1983.
Actual
March year    $(million)    
198620,7435,905-839,14635,71110,59211,69734,606108.9108.8
198721,5166,0165498,61336,69411,08012,04135,734112.5111.7
198822,1186,073-689,14237,26411,64913,45035,462111.6112.5
198922,4646,028-1128,93037,31011,89513,31235,892113.0111.3
199022,7146,0237879,80439,32811,51715,31235,533111.9113.0
199122,5186,1094609,60238,68812,62315,72035,591112.0112.5
199222,3236,061-2238,06936,23013,25914,91634,573108.8111.2
199322,4556,0255128,63237,62413,30416,09134,837109.7113.8
Quarterly          
1988 Mar5,2351,5703112,1609,2752,9533,0919,137115.1111.6
Jun5,5901,476-9082,2108,3693,0223,2258,166102.8107.2
Sep5,6721,520-382,2679,4212,9313,4368,916112.3109.8
Dec5,8801,5384102,31910,1472,9913,3939,745122.7117.8
1989 Mar5,3211,4934252,1349,3732,9503,2589,065114.1110.5
Jun5,8901,519-2662,4029,5453,1463,6429,049113.9110.0
Sep5,6141,514-3652,4199,1832,6564,0597,77998.0110.8
Dec5,8931,5399552,68511,0712,7654,1259,711122.3119.5
1990 Mar5,3171,4504632,2989,5292,9513,4858,994113.3111.8
Jun5,6641,694-4172,4619,4023,3293,8788,853111.5109.6
Sep5,6251,484-632,5199,5653,0474,4038,208103.4110.5
Dec5,9661,5086172,50410,5953,0753,8599,811123.5119.5
1991 Mar5,2631,4233222,1179,1263,1723,5798,719109.8110.4
Jun5,5741,676-6671,9518,5363,4653,5868,415106.0106.0
Sep5,5481,470-4622,0308,5873,2753,8917,971100.4108.6
Dec5,9111,5035422,12610,0823,3363,8269,592120.8118.5
1992 Mar5,2891,4113641,9619,0253,1843,6148,595108.2111.7
Jun5,5581,615-3742,0938,8923,6893,8168,764110.4109.5
Sep5,5531,472-3632,1858,8483,1314,3307,64896.3109.2
Dec5,9951,5267342,28410,5393,2564,2519,544120.2121.4R
1993 Mar5,34914135142,0709,3463,2283,6948,880111.8115.1
Jun5,7001,605-3902,4509,3653,6264,1808,812111.0112.9R
Sep5,789R1,494R-292R2,660R9,651R3,477R4,767R8,361R105.3R116.9R
Dec6,2351,4859082,72511,3533,5204,70510,168128.0127.6

Table 27.14. EXPENDITURE ON GROSS DOMESTIC PRODUCT AT CONSTANT PRICES*

QuarterFinal consumption expenditureIncrease stocksGross fixed capital formationGross National ExpenditureExports of goods and servicesLess imports of goods and servicesExpenditure on GDP
PrivateGeneral Government
*1982-83 prices; year ended 31 March 1983.
Seasonally adjusted
    $(million)   
1988 Jun5,5341,508-4482,2048,7982,8893,2108,477
Sep5,6611,5071732,2149,5562,9833,2189,321
Dec5,5971,537-622,3109,3823,0633,3939,051
1989 Mar5,6511,4782392,2059,5742,9883,4699,092
Jun5,8551,4892322,3919,9682,9673,6449,291
Sep5,6211,5161202,3769,6332,6773,8548,457
Dec5,6031,5464252,66910,2432,8294,1098,963
1990 Mar5,6271,561742,3689,6293,0073,6948,943
Jun5,6311,53872,4449,6193,1423,8848,877
Sep5,6461,5255192,48510,1753,0934,1749,093
Dec5,6501,516-182,4809,6283,1623,8438,946
1991 Mar5,5731,526-582,1939,2343,2693,7968,706
Jun5,5601,525-2591,9298,5763,2563,6138,399
Sep5,5781,506692,0029,1553,3743,6688,861
Dec5,5871,512-322,1009,1673,4193,8198,767
1992 Mar5,5891,516272,0399,1703,2623,8418,591
Jun5,5531,487912,0879,2173,4473,8398,825
Sep5,5921,5092052,1799,4843,1774,1128,550
Dec5,6521,5271192,2699,5673,3194,2258,660
1993 Mar5,6661,504852,1649,4203,3103,9278,803
Jun5,6951,488962,4719,7503,4054,2028,953
Sep5,830R1,506R304R2,669R10,309R3,537R4,565R9,281R
Dec5,8771,4812532,73710,3483,5994,6669,281

The Treasury.

27.3 Balance of payments and overseas debt

New Zealand's balance of payments statements are records of the value of New Zealand's transactions in goods, services and income with the rest of the world, and the changes in New Zealand's financial claims on, and liabilities to, the rest of the world. Statistics New Zealand publishes balance of payments statements for New Zealand covering three and 12 month periods.

New Zealand's overseas debt statistics measure, at specific points in time, the outstanding total gross liabilities (excluding equity capital) of New Zealand located organisations to all overseas located organisations and individuals. Statistics New Zealand publishes statements of New Zealand's overseas debt as at the end of each calendar quarter.

Balance of payments

New Zealand's balance of payments statistics are based on principles recommended in the fourth edition of The Balance of Payments Manual, produced by the International Monetary Fund (IMF). The recommendations of the manual are used by most countries when compiling their balance of payments statistics. Use of this common, international standard enables the balance of payments statements of those countries using it to be compared on the same basis.

A revised edition of the IMF's Balance of Payments Manual is scheduled for completion in 1994. The adoption of this edition of the manual will necessitate some changes to the compilation and presentation of New Zealand's balance of payments statistics.

The compilation of New Zealand's balance of payments statistics are guided by a number of essential principles, summarised below:

  • Transactions which occur between residents of the New Zealand economy, and resident of other economies are to be included in New Zealand's balance of payments statistics.

  • Residents of the New Zealand economy include individuals who reside, or intend to stay, in New Zealand for a continuous period of one year or more, and all corporate bodies located in New Zealand. The overseas—located branches and subsidiaries of New Zealand—located corporate bodies are not considered residents of the New Zealand economy.

  • Transactions are to be recorded at the time ownership changes, or, in the case of services, when the service is performed.

  • Transactions are to be recorded at their market value. Foreign currency transactions are converted to New Zealand dollars at the market exchange rates applying at the time of the transaction.

Table 27.15. ANNUAL BALANCE OF PAYMENTS STATISTICS

 (A) SUMMARY OF MAJOR COMPONENTS
ItemYear ended March
19911992
CreditDebitCreditDebit
*A credit shows net increase in liabilities and a debit shows net increase in assets.
   $(million)  
Exports/imports (fob)15,481 13,92016,835 13,243
Balance on merchandise trade 1,561  3,591 
Exports/imports of services4,241 5,6844,427 5,908
Balance on services -1,443  -1,481 
International investment income905 4,037-91 4,347
Transfers2,007 9612,232 989
Balance on invisibles -3,529  -4,676 
Balance on current account -1,967  -1,085 
Direct investment2,976 912   
Portfolio investment476 113   
Other capital*2,721 489-1,934  
Reserve assets  917  -1,502
Net errors and omissions-1,774  1,518  
Net apparent capital inflow2,885  -417  
(B) CURRENT ACCOUNT: CREDITS
Year ended MarchExports (job)TransportationTravelInsuranceOther servicesGovernment transactionsInvestment incomeTransfers
    $ NZ(million)    
19837,3341,0503362330377309413
19848,2111,257461-10342109325466
198510,2661,555770535087419686
198610,7451,5381,011840469570800
198711,4931,5541,313652864817888
198812,6671,4701,61118618671,0391,022
198913,9081,5841,547106551078391,212
199014,8921,6081,72812623787731,698
199115,4811,8101,735-145681429052,007
199216,8351,9151,820-25605111-912,232
(C) CURRENT ACCOUNT: DEBITS
Year ended MarchImports (job)TransportationTravelInsuranceOther servicesGovernment transactionsInvestment incomeTransfers
    $ NZ(million)    
19837,3341,167647318501411,292295
19848,1321,146669317671791,810343
198511,0001,3341,016568612062,626456
198611,3961,625920519432063,379624
198710,7841,6641,115781,1313033,726686
198810,9701,7411,216781,2522324,516744
198910,5891,7121,5601151,2851963,935742
199013,5432,1641,5771051,3851264,071838
199113,9202,2451,6391591,5201214,037961
199213,2432,2821,7451921,5721174,347989
(D) CURRENT ACCOUNT BALANCES
Year ended MarchMerchandise tradeServicesInvisiblesCurrent account
  $ NZ(million)  
19830-1,048-1,914-1,914
198479-632-1,994-1,915
1985-734-705-2,682-3,416
1986-651-714-3,348-3,999
1987709-826-3,532-2,823
19881,697-734-3,933-2,236
19893,319-965-3,591-272
19901,350-1,308-3,746-2,397
19911,561-1,443-3,529-1,967
19923,591-1,481-4,676-1,085

Table 27.16. DIRECT INVESTMENT

Year ended MarchForeign direct investment in New ZealandNew Zealand direct investment overseas
 $ NZ(million) 
1983364604
198420554
1985456349
1986745166
1987402949
1988238938
1989725226
19902,8243,961
19912,976912
1992....

Table 27.17. FINANCIAL LIABILITIES*

Year ended MarchPortfolio InvestmentOther capital
Long termShort termResidual
Official sectorOther sectorsOfficial sector moneyDeposit banksOther sectors
*Excluding foreign direct investment in New Zealand.
   $ NZ(million)   
1983 1,2992,442..0..582
1984..648864..0..149
1985..1,4111,479..0..1,120
1986..6374410....2,917
1987..5,3642221,198....1,936
1988..-1,485129-453....3,471
1989..-2,1111,658202....-1,660
1990158899222382-1272,93498
1991476-242-837-36-573,894-1,774
1992..-1,855..-79....1,518

Table 27.18. FINANCIAL ASSETS*

Year ended MarchPortfolio investmentLong termShort termReserves: changes due to transactions
Other sectorsDeposit money banksOther sectors
*Excluding foreign direct investment in New Zealand.
1983..40-30..971
1984..-23-110..-447
1985..-84206..49
1986..-39....616
1987..-7....5,357
1988..-7....-1,268
1989..0....-1,685
19908936541-7731,392
1991113483-133-127917
1992........-1,502

Recording system

The New Zealand balance of payments statement employs a double entry bookkeeping system. This ensures that, in the accounting sense, the account always balances.

The system requires the value of each transaction to be recorded both on the credit and debit sides of the statement. The balance of payments records exchanges and transfers. Exchanges involve the exchange of equal economic value between two parties, eg the export of goods in exchange for an equal monetary value. A transfer, on the other hand, involves a one sided transaction, eg goods supplied but no payment required in return.

Within the double entry system, exports of goods are recorded as credits; payment in exchange for the goods is recorded as a debit, denoting an increase in financial assets or decrease in financial liabilities. Where, for example, goods are supplied as aid to foreign countries with no payment in return, then the goods are included as exports (credit), and an offsetting entry for the value of the goods is made under ‘transfers: debits’.

Therefore, the value of the credit entries in the statement should equal the value of the debit entries, for each transaction and for the statement as a whole.

In practice, however, this is seldom the case due to the variety of data sources used, the probability that some transactions will not be captured, and the possibility of errors in reporting and compilation. Therefore, in order to balance the accounts, a balancing item is used. This is called the residual (or ‘net errors and omissions’).

The residual is always entered on the credit side of the account. A positive entry means that the sum of the debits in the account is greater than the sum of credits; a negative entry (negative credit) means that the sum of the debits is less than the sum of the credits.

Current and capital accounts and reserves

A balance of payments statement is normally viewed in three parts: the current account, the capital account and transactions in reserves.

Current account. The credit side of this account shows the export of goods and services, investment income earned and, under ‘transfers’, the offsetting entries to resources received by residents without payment required. The debit side shows the import of goods and services, investment income paid and, under ‘transfers’ the offsetting entries to resources supplied to foreign residents without payment required.

To facilitate analysis, flows of goods, services and income are categorised into major types of transactions, shown as ‘items’ in the tables. Examples of these items are exports and imports, travel (tourism), transport and investment income.

In addition, certain ‘balances’ are calculated. A ‘balance’ is the credits less the debits recorded for a particular item, or group of items. Balances are usually in surplus or deficit; zero balances are unusual. Common balances are:

  • The balance on merchandise trade. This is merchandise exports (credits) less merchandise imports (debits). New Zealand typically has a surplus balance on merchandise trade.

  • Balance on services. This is total exports of services (credits) less total imports of services (debits). New Zealand typically has a deficit balance on services.

  • Balance on invisibles. This is the sum of services, investment income and transfers credits, less services, investment income and transfers debits. Due largely to interest payments on overseas debt and the deficit balance on services, New Zealand typically has a deficit balance on invisibles.

  • Balance on current account, is the sum of the balance on merchandise trade and the balance on invisibles. Because the deficit on invisibles is usually larger than the surplus on merchandise trade, New Zealand usually has a deficit balance on current account.

Capital account. This account shows the changes in New Zealand's financial claims on (assets), and financial liabilities to, the rest of the world.

New Zealand's financial claims on the rest of the world consist of its monetary gold, special drawing rights in the IMF, claims on foreign residents, and New Zealand investors ownership of overseas located enterprises. Its liabilities to the rest of the world consist of its debt to foreign residents, and foreign ownership of New Zealand enterprises.

Credit entries reflect either increases in New Zealand's liabilities to, or decreases in its claims on, the rest of the world. Correspondingly, debit entries reflect either increases in New Zealand's claims on, or decreases in its liabilities to, the rest of the world.

For a transaction to be included in the capital account, it must meet three criteria:

  • The transaction should involve a change of ownership, including the creation or liquidation of an asset or liability.

  • An asset or liability must represent actual claims that are legally in existence.

  • The transaction should involve a foreign financial asset or liability.

The items presented in the capital account are direct investment, portfolio investment, other capital and official reserves.

Foreign exchange room, ANZ Bank.

Direct investment. This investment capital comprises all capital transactions between enterprises in a direct investment relationship.

A direct investment relationship is one where an investor owns a defined proportion of an enterprise. In New Zealand, this proportion is defined as 25 percent or more. The investor which owns 25 percent or more of an enterprise is called the ‘direct investor’; the enterprise into which the investment is made is called the ‘direct investment enterprise’.

Direct investment transactions include initial investment in the direct investment enterprise, increases and decreases in that investment (where increases include retained earnings), and the provision of other forms of capital (eg loans, bonds) by the direct investor to the direct investment enterprise; and, from the direct investment enterprise to the direct investor.

The income generated from direct investment capital is recorded in the current account item ‘international investment income’.

Direct investment in foreign enterprises by New Zealand investors is recorded in the capital account item ‘direct investment’ as a debit (increase in assets). The income from that investment is recorded in the current account item ‘international investment income’ as a credit. Direct investment income includes dividends, undistributed profits and losses, the earnings of branches, and interest.

Direct investment in New Zealand enterprises by foreign investors is recorded in the capital account item ‘direct investment’ as a credit. The income from that investment is recorded in the current account item ‘international investment income’ as a debit.

Portfolio investment. This capital comprises long term bonds and that portion of equity investment which is not classed as direct investment.

The income from the investment, which includes interest and dividends, is recorded in the current account item ‘International Investment Income’.

Other capital. This is a residual item comprising all capital transactions not included in direct investment, portfolio investment and reserves. Included are the foreign exchange assets and liabilities of banks, loans, currency, deposits and short term bills and bonds.

Reserves. Reserves comprise the financial claims over non-residents which are available to the central authorities. In New Zealand's case, the central authorities are the Reserve Bank of New Zealand, and the New Zealand Treasury.

The financial claims over non-residents which are available to the central authorities are those which are owned by, or are under the effective control of, those authorities. In addition, the claims must be actually in existence (i.e. ‘standby facilities’ do not constitute reserves), and must be liquid, convertible and marketable.

The principle holder of New Zealand's reserves is the Reserve Bank of New Zealand. The main reason the Bank holds reserves is to support its objective of maintaining order in the foreign exchange market. In addition, the holding of reserves has a favourable effect on the international assessment of New Zealand's creditworthiness.

The New Zealand balance of payments statement records five categories of reserves: monetary gold, special drawing rights (SDRs), reserve position at the IMF, Reserve Bank overseas reserves and Treasury overseas reserves. For each of these categories, the total change in holdings is given, together with a breakdown of changes arising from transactions and from valuation changes.

These changes in the level of holdings of reserves are recorded in the BOP statement as debit entries only. Positive figures represent increases in holdings of reserves (increase in assets) while negative figures represent decreases in holdings of reserves (decrease in assets).

In a departure from the rest of the BOP statement (which shows flows), the stock of reserves as at the end of the reporting period is also recorded.

Publication of balance of payments statements

Balance of payments statements are published quarterly and annually (year ended 31 March) by Statistics New Zealand. Both quarterly and annual statements show a full current account.

Current account data are sourced from a series of quarterly surveys of transactors, overseas trade statistics and other sources. For some items, adjustments are made to quarterly data on receipt of more comprehensive data from annual surveys.

Quarterly and annual capital account presentation differs. The annual statements show official and private sector capital flows; the quarterly statements do not show private sector capital flows.

The difference in capital account presentation is due to the availability of data. Official sector capital flows are available quarterly, private sector flows are sourced from an annual survey.

Bank vault door.

Overseas debt

Statistics New Zealand measures New Zealand's overseas debt four times each year: at 31 March, 30 June, 30 September and 31 December. It uses the results from two surveys to do this:

  • The Quarterly Total Overseas Debt Survey conducted by Statistics New Zealand.

  • The Monthly Survey of Nominee Companies conducted by the Reserve Bank of New Zealand. This is used to obtain information on domestically issued securities.

New Zealand's overseas debt includes the liabilities of New Zealand companies to their overseas parents, subsidiaries or branches, but does not include the liabilities of the overseas subsidiaries and branches of New Zealand companies. Three other types of liabilities are excluded. They are:

  • The overseas liabilities of New Zealand persons and households.

  • Equity capital.

  • Contingent liabilities.

The first type is excluded due to the difficulty in collecting the data, while the other two are excluded for conceptual reasons.

Debt is not an obligation to pay, but an obligation to repay. Equity capital does not represent an obligation to repay the owners and is therefore excluded from the debt statistics. A liability must represent an actual claim that is legally in existence and hence contingent liabilities are also excluded.

Debt can be raised in any currency and only has to be owed to a non-resident of New Zealand (a foreigner) to be included. It may be held in a variety of instruments either as loans, bills, bonds, deposits, accounts payable or as domestically issued securities. Domestically issued securities taken up by foreigners through nominee companies were included in the overseas debt statistics from 31 December 1992.

The following tables show details of New Zealand's overseas debt. Information is available on:

  • The amount of debt held by each economic sector.

  • The term structure of the debt.

  • The main currencies in which the debt is denominated.

  • The types of liability instrument used to raise the debt.

  • A repayment schedule of the debt based on time to run to scheduled maturity.

Table 27.19. OVERSEAS DEBT*

PeriodPrivateOfficial governmentOther governmentTotal

*From September 1989 onwards overseas debt is the sum of long and short term debt. Prior to this only long term debt was collected.

Domestically issued securities are included from 31 December 1992.

   $ NZ (million)  
198930 September20,86718,61011,39950,876
 31 December22,42718,79110,84852,067
199031 March22,82620,04110,19353,059
 30 June24,56320,9498,70454,216
 30 September26,86320,6089,95057,421
 31 December30,30521,10710,98462,395
199131 March32,48220,1988,76161,441
 30 June32,26220,1237,91360,297
 30 September31,82220,7277,73560,283
 31 December34,13821,2657,78863,191
199231 March34,94220,0367,04762,025
 30 June34,60120,1437,63862,383
 30 September35,86020,7728,04064,673
 31 December†40,02823,6083,53367,168
199331 March38,58723,3513,37865,315

Table 27.20. OVERSEAS DEBT BY LIABILITY TERM

 31 March 9230 Jun 9230 Sep 9231 Dec 9231 Mar 93

*Domestically issued securities are included from 31 December 1992.

Includes imputations for non-response and a constant estimate for the known non-surveyed firms.

   $ NZ(million)  
Current liabilities18,57219,76820,91521,14721,134
Current portion of long-term liabilities5,0224,7816,9257,5587,345
Long-term liabilities36,91236,44935,47633,06830,638
Domestically issued securities*---3,9974,518
Unallocated estimate†1,5191,3851,3571,3981,681
            Total62,02562,38364,67367,16865,315

Table 27.21. OVERSEAS DEBT BY CURRENCY OF DENOMINATION

 31 Mar 9230 Jun 9230 Sep 9231 Dec 9231 Mar 93

*Domestically issued securities are included from 31 December 1992. They are held in NZ dollars only.

Includes imputations for non-response and a constant estimate for the known non-surveyed firms.

   $ NZ(million)  
US Dollars24,57225,67725,66725,70125,205
NZ Dollars*14,63414,66716,07920,01519,390
Japanese Yen8,1607,2287,9487,6487,725
Australian Dollars3,1312,7933,2403,4123,487
Pounds Sterling3,7304,3523,7613,2863,062
Deutschemarks1,4681,6081,7741,6481,763
Swiss Francs1,7861,9392,1881,9081,463
Other currencies3,0242,7342,6582,1531,539
Unallocated estimate†1,5191,3851,3571,3981,681
            Total62,02562,38364,67367,16865,315

Table 27.22. OVERSEAS DEBT BY DEBT INSTRUMENT

 31 Mar 9230 Jun 9230 Sep 9231 Dec 9231 Mar 93

*Domestically issued securities are included from 31 December 1992.

Includes imputations for non-response and a constant estimate for the known non-surveyed firms.

   $ NZ(million)  
Loans27,82327,71127,28525,44423,512
Bills and bonds21,70121,41522,26421,23320,272
Deposits9,77310,84312,69714,09914,573
Accounts payable1,2081,0281,069997760
Domestically issued securities*---3,9974,518
Unallocated estimate†1,5191,3851,3571,3981,681
            Total62,02562,38364,67367,16865,315

Table 27.23. OVERSEAS DEBT BY MATURITY PROFILE*

 31 Mar 9230 Jun 9230 Sep 9231 Dec 9231 Mar 93

*Domestically issued securities are included from 31 December 1992.

Includes imputations for non-response and a constant estimate for the known non-surveyed firms.

   $ NZ(million)  
At call4,2754,1205,1444,1656,493
2-89 days12,71312,99413,67915,13913,180
90-179 days3,7223,7025,7445,7475,182
6 months and under 1 year2,8723,7313,2634,4064,550
1 year and under 2 years6,5096,1766,2165,1115,503
2-5 years11,30711,71910,07412,75911,081
Over 5 years19,10618,55519,19618,44417,646
Unallocated estimate†1,5191,3851,3571,3981,681
            Total62,02562,38364,67367,16865,315

The development of New Zealand's overseas debt statistics has been based on recommendations made by the International Working Group on External Debt Statistics. This group is seeking to introduce common, internationally accepted definitions and concepts for the various agencies that produce debt statistics.

27.4 Business statistics

A linked series of collections provide a comprehensive coverage of business in New Zealand. At regular intervals economic censuses are held, these cover all businesses within specified industry groups. In the intervening years an Annual Enterprise Survey collects business information from a representative sample of these while the Annual Update of the Business Directory collects information on the size and industry of all businesses. Quarterly business surveys such as economic surveys of manufacturing and distribution, provide information on short term activity, while the Quarterly Employment Survey offers a broad picture of activity across the economy.

The 1987 Economy Wide Census gathered data on most non-farming businesses for the 1986-87 financial year, covering over 130,000 separate businesses and more than 500 different industrial activities. The information gained is used in the national accounts, price indexes, inter-industry tables, and several major econometric models, as well as by businesses themselves. The present census strategy is to cover all industries at regular intervals, but not all in the same year (as was done in 1987). In 1992 the censuses of distribution and mining and quarrying were conducted, while the next Census of Manufacturing is scheduled for the 1994/95 financial year.

The Annual Enterprise Survey supplements the census. It samples more than 20,000 businesses to provide an overview of the economy in the interval between five-yearly censuses. In addition to the financial data from this survey, the department also brings its Business Directory up-to-date annually. The directory is the basic register for surveys and censuses and also provides a source of non-financial data about businesses, such as their location, number of persons engaged, type of activity and degree of overseas ownership.

Definitions of terms used in the presentation of business census data are included in the glossary at the back of this book, although these may vary according to the year in question.

Further details, including results of all censuses at sub-group (industry) level of the New Zealand Standard Industrial Classification, are available in the Department of Statistics' series of business census publications.

The statistics on activity units in are derived from the Business Directory Update. An ‘activity unit’ is a separate operating unit engaged in one (or predominantly one) kind of economic activity from a single physical location.

Table 27.24. BUSINESSES AND NUMBERS EMPLOYED BY INDUSTRIAL CLASSIFICATION

NZSIC* descriptionFebruary
1990199119921993
*New Zealand Standard Industrial Classification
112–113Agricultural services and hunting/trappingActivity units3,2443,2753,3303,526
  Persons engaged13,20812,84613,20313,113
12Forestry and loggingActivity units1,3551,4333,4073,385
  Persons engaged5,8815,8197,0847,699
13FishingActivity units1,8831,8521,8751,877
  Persons engaged4,7044,6424,8384,858
21Coal miningActivity units75706762
  Persons engaged941947968896
22Crude petroleum natural gasActivity units69768888
  Persons engaged671800838751
23–29Other mining and quarryingActivity units556559535512
  Persons engaged2,6282,6772,7512,610
3111Slaughtering and meat processingActivity units330338339338
  Persons engaged28,89126,55026,64327,973
3112Manufacture of dairy productsActivity units144147144140
  Persons engaged7,8157,4747,4487,372
3113–3122Manufacture of other foodsActivity units1,4221,4461,5351,570
  Persons engaged22,83723,11223,18223,019
313Beverage industriesActivity units143155156180
  Persons engaged3,0553,1342,7452,681
314Tobacco manufacturingActivity units9698
  Persons engaged648611558482
321Manufacture of textilesActivity units817805824849
  Persons engaged11,99610,2059,7519,869
322–324Manufacture of clothing and leather goods incl. footwearActivity units1,4791,4911,4961,534
  Persons engaged19,67618,20916,85317,479
33Manufacture of wood and wood productsActivity units2,9803,0933,1223,217
  Persons engaged22,58421,72121,32722,581
341Manufacture of paper and paper productsActivity units172173170162
  Persons engaged8,5889,7299,0108,713
342Printing and publishingActivity units1,3341,3971,4241,491
  Persons engaged17,30117,38416,59316,797
351Manufacture of industrial chemicalsActivity units211200203205
  Persons engaged4,2024,2554,2274,170
352Manufacture of other chemical productsActivity units338338381374
  Persons engaged6,0445,7575,7855,700
353Petroleum refineriesActivity units1613114
  Persons engaged843811828669
354Manufacture of petroleum and coal productsActivity units34363742
  Persons engaged341324312425
355Manufacture of rubber productsActivity units123122128124
  Persons engaged2,2512,0371,8001,880
356Manufacture of plastic productsActivity units448456474442
  Persons engaged7,8817,2807,1987,268
36Manufacture of non-metallic mineral productsActivity units864851849885
  Persons engaged6,9356,3065,7966,080
37Basic metal industriesActivity units190187194193
  Persons engaged7,0806,6656,0456,137
381Manufacture of fabricated metal productsActivity units2,5652,5802,6272,666
  Persons engaged22,15120,89519,25419,538
382Manufacture of machineryActivity units2,9062,9323,0052,952
  Persons engaged17,48316,47215,82016,040
383Manufacture of electrical machineryActivity units674679680656
  Persons engaged11,01910,3379,5419,707
384Manufacture of transport equipmentActivity units1,1031,0741,0531,076
  Persons engaged17,07114,64413,12913,200
385Manufacture of professional equipmentActivity units1031029186
  Persons engaged1,2681,0089911,029
39Other manufacturing industriesActivity units8409069861,047
  Persons engaged4,2204,0024,0794,083
4Electricity gas and waterActivity units647662593568
  Persons engaged13,65713,75912,39610,947
51 & 53 Excl. 52Buildings and ancillary building servicesActivity units22,49623,44723,81123,685
  Persons engaged67,33065,80860,32059,735
52Other constructionActivity units2,8953,0973,1242,864
  Persons engaged19,80618,31416,53816,421
61Wholesale tradeActivity units12,40613,37114,43314,882
  Persons engaged81,17681,80180,64981,362
62Retail tradeActivity units31,85931,77331,86632,057
  Persons engaged145,980141,079137,496138,383
63Restaurants and hotelsActivity units10,09410,69710,91811,136
  Persons engaged57,00155,90458,18559,565
7111Rail transportActivity units233228206205
  Persons engaged2,8743,3972,6482,558
7112–7113Road passenger transportActivity units2,4032,5552,7742,705
  Persons engaged9,8339,5668,1318,216
7114Road freight transportActivity units5,0355,1935,3805,282
  Persons engaged17,90717,85418,28518,763
7115–7117, 719Services to transportActivity units2,1062,2462,4752,596
  Persons engaged11,82012,39312,30112,897
712Water transportActivity units243269263268
  Persons engaged5,9456,6285,7605,406
713Air transportActivity units464470505558
  Persons engaged10,2229,9069,2818,756
72CommunicationActivity units2,1162,3582,5212,585
  Persons engaged29,55028,20525,82323,905
811BankingActivity units1,7611,8771,8511,861
  Persons engaged27,18326,89927,01225,271
812–814 Excl. 81492Financial servicesActivity units4,7124,7584,7946,710
  Persons engaged12,25511,77010,25110,390
82 Excl. 82302InsuranceActivity units3,0582,8404,1674,456
  Persons engaged13,90512,92512,71312,193
83 Excl. 83113 83121/3Real estate and business servicesActivity units18,57321,13623,32124,740
  Persons engaged91,97192,51893,44393,479
91Government administrationActivity units3,0893,6133,6613,536
  Persons engaged80,60881,20579,01379,582
92Sanitary servicesActivity units2,1342,2682,3952,477
  Persons engaged11,98912,43812,05811,803
931 Excl. 93105Education servicesActivity units5,6705,6666,3356,523
  Persons engaged76,77180,67881,56986,033
932Research servicesActivity units207218225276
  Persons engaged4,7045,1145,4235,735
933-93401Medical and health servicesActivity units7,2117,4807,8838,214
  Persons engaged83,62385,78886,07585,668
94 Excl. 94402Recreation servicesActivity units4,3994,9035,5916,096
  Persons engaged19,45420,04020,99522,164
95Personal servicesActivity units8,1248,3248,5688,696
  Persons engaged27,65727,22727,04627,722
             TotalActivity units178 362186 251196 900202 666
  Persons engaged1,203,4341,187,8691,162,0081,169,773

Pointing out the impacts of various historical events on world financial markets over the past 68 years, South Island Money Expo.

is also based on the Business Directory Update and shows persons engaged by region (working proprietors and paid employees, full time equivalents) as at February 1993. The table is not a measure of total employment. Farms are not included, nor are some other businesses, namely: self-employed insurance, real estate, and finance agents; property owners', non-profit organisations; and non-trading and dormant companies, ancillary services to schools (when run by the school and not contractors), religious organisations and sporting and recreational clubs.

Table 27.25. REGIONAL BUSINESS PATTERNS, 1993

Region*Agricultural services hunting forestry fishingMining and quarryingManufacturingElectricity gas and waterConstructionWholesale and retail trade restaurants and hotelsTransport storage and communicationBusiness and financial servicesCommunity social and personal servicesTotal

*At end of February.

Confidential.

     persons engaged    
Northland1,5711714,7623612,4667,9631,7992,4599,06630,618
Auckland2,42237080,9522,18622,35894,76729,96055,94886,303375,266
Waikato3,3931,22019,4891,6067,58522,4055,5969,18328,87399,350
Bay of Plenty2,8988110,9925094,49515,0793,8675,21915,50258,642
Gisborne754252,2091418052,5996079793,55711,676
Hawke's Bay1,4849910,4234682,6889,8412,1213,44511,22141,790
Taranaki6437107,2647002,5866,8901,6652,6797,75530,892
Manawatu1,7919213,1196804,85016,1133,3895,23825,93371,265
Wellington1,39925020,7861,3658,95434,73012,21430,91551,675162,288
North Island total16 3553 018169 9968 01656 787210 38761 218116 065239 945881 787
Tasman783441,6331297392,0774154431,6347,897
Nelson8353,1379373,4069461,4564,26915,057
Marlborough868662,277948602,5407177493,24211,413
West Coast6415621,5151536942,4967255632,5919,913
Canterbury2,64213534,2631,3809,96936,52111,01214,69041,810152,422
Otago1,70119511,8226504,33714,2703,5395,11117,55359,178
Southland1,7392298,1954561,8217,6241,9132,2447,62531,846
South Island total9 20962 84219 35768 90719 26725 25678 724287 726
Extra county islands and shipping106541216161238260
New Zealand total25 6704 257232 89210 94776 156279 31080 501141 333318 7071 169 773

Contributors

  • 27.1 Professor Gary Hawke.

  • 27.2-4 Statistics New Zealand.

Special articles

Statistics New Zealand.

Further information

National accounts

Consolidated National Accounts for New Zealand on an SNA Basis. Research Paper No. 32, D. Grindell (ed). Reserve Bank of New Zealand, 1981.

Key Statistics. Statistics New Zealand (monthly).

New Zealand System of National Accounts. Department of Statistics (various years).

New Zealand System of National Accounts, Concepts and Design. Department of Statistics. 1983.

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.

Inter-industry studies

Inter-industry Study of the New Zealand Economy, 1987. Department of Statistics.

Balance of payments

Balance of Payments, Concepts, Sources and Methods 1991. Department of Statistics, 1992.

Balance of Payments Manual. International Monetary Fund, 4th ed, 1977.

'Foreign Reserves and the Management of Risk', Reserve Bank Bulletin, Vol 53 No 3 1990. Reserve Bank of New Zealand.

Overseas debt

External Debt: Definition Statistical Cover and Methodology. The World Bank et al. 1988.

Business statistics

New Zealand Business Activity Statistics. Statistics New Zealand (annual).

New Zealand Standard Industrial Classification. Department of Statistics, 1988.

Appendix A. Weights and measures

All the statistics in this volume are in metric (SI) units, except for ship tonnages (not cargo).

Metric To Imperial Metric Multiples 
Length
    1 millimetre (mm)= 0.04 inches (in.)1 centimetre (cm)= 10 millimetres (mm)
    1 centimetre (cm)= 0.39 inches (in.)1 metre (m)= 100 centimetres (cm)
    1 metre (m)=39.37 inches (in.)1 metre (m)= 1 000 metres (m)
 = 1.09 yards (yds)  
    1 kilometre (km)= 0.62 miles  
Area
    1 square metre (m2)= 10.76 square feet (sq. ft.)1 hectare (ha)= 10 000 square metres (m2)
 = 1.20 square yards (sq. yd)1 square kilometre (km2)= 100 hectares (ha)
    1 hectare (ha)2.47 acres  
    1 square kilometre (km2)= 247 acres  
 = 0.39 square miles  
Volume and capacity
    1 cubic centimetre (cm3= 0.06 cubic inches (cu.in.)1 cubic metre (m3)= 10 000 000 cubic centimetres (cc)
    1. cubic metre (m3)= 35.31 cubic feet (cu. ft.)1 litre (l)= 1 cubic centimetre (cc)
    1. litre (l)= 1.76 pints1 cubic metre (m3)= 1 000 litres (l)
 0.22 gallons  
Mass (weight)
    1 gram (g)0.04 ounces (oz)  
    1 kilogram (kg)= 2.20 pounds (lb)1 kilogram (kg)= 1 000 gram (g)
    1 tonne (t)= 2 204.62 pounds (lb)1 tonne (t)= 1 000 kilograms (kg)
 = 0.98 tons  
Velocity
    1 kilometre per hour (km/h)= 0.62 miles per hour (mph)  
Pressure
    1 kilopascal (kPa)= 0.15 pounds per square inch (psi)1 megapascal (MPa)= 1 000 kilopascals (kPa)
    1 megapascal (MPa)= 0.06 tons per square inch (tons psi)  
Temperature
Energy
    1 kilojoule (kJ)= 0.95 British thermal units (Btu)1 megajoule (MJ)1 000 kilojoules (kJ)
 0.24 calories (cal)1 kilowatt hou(kWh)= 3.6 megajoules (MJ)
  1 gigajoule (GJ)= 1 000 megajoules (MJ)
  1 terajoule (TJ)= 1 000 gigajoules (GJ)
  1 petajoule (PJ)= 1 million gigajoules (GJ)
Power
    1 kilowatt (kW)= 1.34 UK horsepower1 kilowatt (kW)= 1 000 watts
  1 megawatt (MW)= 1 000 kilowatts (kW)
  1 gigawatt (GW)= 1 000 megawatts (MW)

Glossary of statistical terms

Statistical terms defined here are those frequently used in censuses of population and businesses, and other data and index series referred to in this book.

Accounts payable.

Non-marketable liabilities arising from deferred payment for imported goods and services (i.e. trade credit), overdue interest and the acquisition of financial assets.

Activity unit.

A separate operating unit engaged in New Zealand in one (or predominantly one) kind of economic activity from a single physical location or base from which work is carried out—includes an ancillary activity unit.

Additions to fixed assets.

Purchases of new and second-hand fixed assets and the cost of work done by a firm's own employees in producing, constructing and installing fixed assets for its own use.

Ancillary activity unit.

An administrative or general servicing unit such as a head office, storage unit, laboratory, etc, the prime function of which is to provide services for other locations of the enterprise.

Balance of payments conceptual adjustments.

Adjustments to the external trade statistics to bring the value of exports and imports in line with the balance of payments concepts. Imports are adjusted from cif to fob value. Exports are adjusted for goods shipped and sold on consignment.

Balance on current account.

The balance on merchandise trade plus the balance on invisibles. Commonly it is referred to as the balance of payments deficit/surplus which indicates the extent to which the economy in question is paying its way in the world. A negative figure indicates a deficit which represents the amount that New Zealand has to either borrow from abroad or run down on its foreign assets.

Balance on invisibles.

The balance on services, plus the credits, less the debits for international investment income and transfer items.

Balance on merchandise trade.

This is calculated by deducting imports (fob) from exports (fob).

Balance on services.

This is calculated by deducting the total debit entries from the total credit entries for the transportation, travel, insurance, other services and Government current transactions items.

Bills.

Marketable, written promissory agreements, in which one party promises to pay a stated sum on demand or on a specified date to the legal holder of the document. They are usually issued and traded at a discount from the face value. This category includes bills of exchange, commercial paper, including eurocommercial paper, euronotes and certificates of deposit.

Birth rate (crude).

The number of births per 1,000 of total mean population.

Bonds.

Written promissory agreements, usually marketable, in which one party promises to pay a stated sum on demand or on a specified date to the legal holder of the document. It also involves a promise to pay stated interest at specified intervals over the term of the bond. This category includes debentures, convertible notes and medium term notes issued by private placement.

Bone-in weight.

Dressed carcass weight, including bone.

Capital expenditure less disposals.

The amount spent on the purchase of new and second-hand fixed assets, less the proceeds received from the sale of any such assets.

Capital transfers from the rest of the world, net

(national accounts). The excess of the value of capital transfers by non-residents to New Zealand residents over the value of similar transfers by residents to non-residents. Capital transfers are unrequited transfers in cash or in kind which are not considered by the recipient as adding to current income, nor by the donor as reducing current income. Examples are unilateral transfers of capital goods, legacies, investment grants, and transfers of migrants' funds. In the NZSNA it has not been possible to identify all of these flows separately, and they have been included in current transfers to/from the rest of the world.

Census.

A type of survey in which all members of a given population provide information. These units may be people, companies, buildings, local authorities, etc. Statistics New Zealand carries out a range of censuses at regular intervals, such as the Census of Population and Dwellings, at five-yearly intervals, and other regular censuses. (See also Sample survey.)

Cif

(cost including insurance and freight). A basis for valuation of merchandise imports, representing the cost to the importer of buying the goods and bringing them to the wharfside in New Zealand.

Compensation of employees

(national accounts). Payments of salaries and wages, whether in cash or in kind, to employees. Includes contributions paid on employees' behalf to superannuation funds, private pension schemes, the Accident Compensation Corporation, casualty and life insurance schemes, etc.

Compensation of employees to/from the rest of the world

(national accounts). In theory, these items cover the compensation residents of one country earn from employment in another where they are classed as non-resident, because their stay is for a period of less than 12 months. In practice, available data does not permit estimates of these items.

Consumption of fixed capital

(national accounts). The value of depreciation at ordinary rates allowed for taxation purposes, plus an estimate for the normal rate of accidental damage based on the insurance claims by each industry group.

Current liabilities.

Those obligations which have an original maturity date of 12 months or less.

Current portion of long-term liabilities.

The portion of original long-term liabilities required to be met within one year of the survey date.

Death rate (crude).

The number of deaths per 1,000 of population.

Density (of population).

Usually expressed as the average number of persons per square kilometre (or hectare) in a particular locality.

Deposits.

Funds placed by an overseas client in the care of a New Zealand organisation, usually a bank/financial institution, to be kept in their client's account. Inter-bank deposits are a part of this category. These are accounts in credit from overseas banks held by New Zealand banks and the overdrawn accounts of New Zealand banks held by overseas banks.

Deposit money banks.

The net international flows of foreign exchange through the banking system as a result of all international transactions. This occurs through the bank accounts financial institutions have with other financial institutions, commonly referred to as Nostro and Vostro accounts.

Depreciation.

As charged in books of account on fixed tangible assets owned by the establishments and ancillary units.

Direct investment.

Investments that are made to acquire a lasting interest in an enterprise located in an economy other than the resident economy of the investor, the investor's purpose being to have a significant influence in the management of the enterprise. The criterion adopted by Statistics New Zealand to determine ‘significant influence’ in the direct investment enterprise is that the investor must hold at least 25 percent ownership of the enterprise.

Direct investment income.

Income earned by investors who hold 25 percent or more of the equity of an enterprise. The income includes dividends (including bonus issues of shares); interest, earnings of branches and direct investors' portions of the earnings of direct investment enterprises that are not distributed.

Domestically issued securities.

Domestically issued securities consist of domestically issued bonds and bills which are taken up by non-resident organisations and individuals through New Zealand organisations acting as their nominee. They have been included in New Zealand's overseas debt statistics from 31 December 1992.

Employer contributions.

Payments to superannuation, pension and welfare schemes, and accident compensation levies.

Employment status.

A respondent's employment status within the labour force. This applies to persons in the full and part-time labour force. Employment status categories are: working for wages or salary; self-employed and not employing others; employer of others in own business; and unpaid worker in a family business.

Enterprise.

A business or service entity operating in New Zealand as a company, partnership, trust, local or central government trading organisation, incorporated society, producer board, voluntary organisation or self-employed individual.

Errors and omissions-balancing item.

A balancing item in the balance of payments statement which represents errors and omissions in the measurement of the statistics. It is also referred to as the ‘residual’.

Ethnic origin.

The ethnic origin, or origins that a person specifies on a self-determination basis.

Ex-nuptial birth.

Birth of a child out of wedlock, including from a de facto relationship.

Exports of goods and services

(national accounts). All goods and services produced by New Zealand residents and purchased by the rest of the world. Exports of merchandise are valued fob.

Fertility.

The reproductive performance of a population in relation to the number of live births that occur is normally measured in terms of women between the ages of 15-44 years.

Final consumption expenditure

(national accounts).

  1. Resident households—All outlays on consumer goods and services, including expenditure on consumer durables such as motor vehicles and furniture; included are payments made by government on behalf of households, and the imputed rent of owner-occupied dwellings.

  2. Producers of general (central and local) government services and private nonprofit services to households—Total current expenditure by these producers less the value of any sales or own account capital formation (i.e., the total net current costs incurred in providing the services).

Foreign direct investment in New Zealand.

Changes in foreign direct investors' claims on and liabilities to their New Zealand located subsidiaries and branches.

Fob

(free on board). The current market value of goods in the country of origin, including all costs necessary to get them on board the ship or aircraft, but excluding freight, insurance, and other costs involved in transporting goods between countries.

Full-time.

Persons working 30 hours or more a week.

Gainfully employed in the labour force.

Persons employed in the labour force either full or part-time, excluding persons who are unemployed and seeking work.

Government current transactions.

The expenditure abroad of New Zealand embassies, consulates, and defence forces. Similarly, the expenditure of foreign embassies and consulates, etc, in New Zealand is included as a credit item.

Gross domestic product

(GDP national accounts). The total market value of goods and services produced in New Zealand after deducting the cost of goods and services utilised in the process of production, but before deducting allowances for the consumption of fixed capital.

Gross fixed capital formation

(national accounts). The outlays of producers on durable real assets, such as buildings, motor vehicles, plant and machinery, roading, and improvements to land. In measuring the outlays, sales of similar goods are deducted. Land is excluded from gross fixed capital formation. Included is the value of construction work done by a firm's own employees. The term ‘gross’ indicates that consumption of fixed capital has not been deducted from the value of the outlays.

Gross national expenditure

(national accounts). The total expenditure within a given period on final goods and services by New Zealand residents (i.e., excluding goods and services used up during the process of production).

Gross national product

(national accounts). The income accruing within a given period to New Zealand residents from their services in supplying factors of production in New Zealand and overseas, plus net indirect taxes, and before the deduction of allowances for the consumption of fixed capital.

Gross output at producers' values

(national accounts):

  1. Market production groups—The total market value including commodity taxes on all goods and services produced during the year, including stocks of work-in-progress. Included is output produced for sale in the market, and capital formation on own account.

  2. Non-market production groups—These producers may sell a proportion of their output in the market, and such receipts are included in total output. However, most of the services produced represent unmarketed output and are valued at cost price. This assumption is necessary because there is no other basis for valuation.

Gross tonne.

The unit of actual weight of cargo, including packaging but not including the weight of a reusable container.

Harmonised system.

The classification adopted by New Zealand on 1 January 1988 for processing customs entries and publishing statistics on external trade. It replaces the Customs Co-operation Council Nomenclature (CCCN) based tariff and the SITC statistical classification.

Imports

(balance of payments). All goods and services purchased by New Zealand residents from non-residents. (See also Merchandise trade and Invisible (trade)).

Imports of goods and services

(national accounts). All goods and services produced by the rest of the world and purchased by New Zealand residents. Imports of merchandise are valued cif (cost, including insurance and freight).

Income

(total). Income before tax which a person aged 15 years and over receives for a financial year from all sources, eg, wages, salary, social welfare payments, interest, dividends, commission, pre-tax business or farming income (less expenses).

Increase in stocks

(national accounts). The change in value of stocks of raw materials, work-in-progress, and finished goods, between the beginning and the end of the year.

  1. Value of the physical increase in stocks—The change in stocks valued at the average prices for the year. This valuation removes capital gains and losses caused by holding stocks purchased at prices higher or lower than those ruling during the year.

  2. Increase in book value of stocks—The change in stocks as valued in accounting records.

Indexes.

Indexes are used to measure the total impact of changes in the attributes of commodities which cannot be compared directly. In New Zealand the most common use of index numbers is to measure changes in prices or money values over time. When calculating a price index the type, quantity and quality of each commodity are all held constant so that the price movement can be measured. There are a number of methods for calculating index numbers and a type called the Laspeyres index is that most often encountered. The most frequently quoted index is the Consumers Price Index which reports quarterly the change in price level of those goods and services purchased by private New Zealand households during the index-base period. By expressing the changes as an index, price changes in commodities as diverse as beef, hairdressing and club subscriptions can all be aggregated to produce a measure of overall price change.

Using the Consumers Price Index as an example, a fixed-base Laspeyres index is compiled as follows:

  • The base for measurement is established by choosing a representative selection of goods and services from commodities purchased by New Zealand households in the previous year. The commodities in the base are often referred to as a basket of goods or an index regimen and the time period as a base year. By convention the index number of 1000 is used to express the value of the basket of goods in the base year.

  • As part of the process of establishing the base, a weight is assigned to each commodity. This weight shows the relative importance of the commodity in household expenditure. The weighting procedure ensures that major expenditure items are given their due importance. For example, a small increase in the price of commodities like bread or petrol will be more significant than a large increase in the price of pianos.

  • Once the base for measurement is established, the quantity, type and quality of the commodities chosen are kept constant so that the price movement alone is measured. This continues to be the case until the index base is revised. Such revisions are needed because new products come onto the market, old products disappear and the pattern of household expenditure changes.

  • Data on the current prices of the commodities in the base are then obtained at three-monthly intervals.

  • Once collected, the current prices are compared with the prices in the base year and the percentage increase or decrease for each commodity is computed. Finally the index is obtained by multiplying the percentage changes for each commodity by their assigned weights and aggregating these changes for all commodities.

Indirect taxes.

Taxes not based on income, includes land tax, road user charges, licence fees, rates and GST.

Insurance

(balance of payments). Premiums less claims for insurance other than insurance of merchandise exports.

Interest, etc.

Interest, bad debts, donations, royalties, insurance claims paid or received and patent fees.

Intermediate consumption

(national accounts). The value of non-durable goods and services used in production. Valuation is at purchasers' values.

International investment income.

Income earned by foreigners from their equity and financial assets invested in New Zealand (the debit or expenditure item), and the income New Zealand earned from equity and financial assets invested abroad (the credit or income item).

Invisible

(trade). Export and import of services such as transport, travel, and insurance.

Labour force.

Consists of persons aged 15 years and over who regularly work for one or more hours per week for financial gain, are unpaid working in a family business, or who are unemployed and seeking either full or part-time work. The full-time labour force comprises persons working 30 hours or more per week, including unemployed persons seeking full-time work. The part-time labour force comprises persons working 1 to 29 hours per week, including unemployed persons seeking part-time work.

Loans.

Direct agreements between borrowers and lenders, involving the transfer of funds to the borrower and the repayment to the lender over time. This category includes secured and unsecured loans, trade related loans, overdrafts, roll-over loans, revolving credit advances, advances from overseas parent and/or subsidiary companies, the use of swingline facilities and non-market debentures and notes.

Long-term liabilities.

Those obligations which are not expected or are not required to be met within one year of the survey date. The sum of the current portion of long-term liabilities and long-term liabilities is equivalent to the previously published statistics on New Zealand's long-term overseas debt.

Main activity.

The main activity in which persons aged 15 years and over are involved, includes: home duties, looking after children, full time student, retired, unemployed, paid job-business farm or profession, unpaid work in a family business, other, eg hospital patient.

Main urban areas.

The criterion for defining a main urban area is a population of 30,000 or more.

Maturity profile.

Time to run to scheduled maturity, i.e., the residual maturity at the survey time point.

Mean population.

The average number of people in an area during a given period, usually a year. This measure may be estimated in terms of simple or weighted averages of population, monthly or quarterly during the reference period.

Median.

The value which divides a distribution or array so that an equal number of items is on either side of it.

Merchandise exports.

Goods of domestic origin, and re-exports, sent from New Zealand to other countries.

Merchandise imports.

Goods landed in New Zealand, having been consigned from other countries, for immediate consumption or for storage in bonded warehouses.

Merchandise trade.

All goods which add to or subtract from the stock of material resources in a country, as a result of their movement in or out of it.

Minor urban areas.

Towns with a population of 1,000 or more, not already classified as a main or secondary urban area.

National disposable income

(national accounts). The total income of New Zealand residents from all sources available for final consumption or savings.

National income at market prices

(national accounts). This item is equivalent to gross national product after the deduction of allowances for consumption of fixed capital. It is a measure of income accruing from the supply of factors of production in New Zealand and overseas, plus net indirect taxes.

Net acquisition of foreign financial assets

(national accounts). The change in actual claims by New Zealanders, or non-residents. It relates to the purchase, less the sale, of financial claims, such as those described for the net incurrence of foreign liabilities. It also includes changes in New Zealand's holdings of special drawing rights in its reserve position at the International Monetary Fund, and in the assets of the New Zealand banking system.

Net apparent capital inflow.

The net amount of capital flow into or out of New Zealand over a given period. It is derived by deducting total debit entries from total credit entries for items in the capital accounts. A negative figure indicates a net outflow of capital.

Net incurrence of foreign liabilities

(national accounts). The change in actual indebtedness of New Zealanders to non-residents. It relates to the issue, less the redemption, of financial claims, such as currency and transferable deposits, bonds, corporate equities, loans, and long-term trade credits. Changes in the holdings of paid-up capital of companies, and changes in inter-company indebtedness are also included.

Net profit.

The difference between total income and total expenditure, less working proprietors/ partners salaries and wages and before extraordinary items, gains/losses from sales of capital assets, exchange losses and revaluation of assets and tax.

New Zealand direct investment abroad.

Changes in New Zealand's direct investors' claims on and liabilities to their overseas subsidiaries and branches.

NZSNA.

New Zealand System of National Accounts.

Official government sector.

Reserve Bank, Treasury and all other Government departments.

Official investment income.

Income on the government's earnings on its international investments (credit) and the interest burden on its overseas debt (debit).

Operating surplus

(national accounts). This is a residual item, being gross output at producers' values, less the sum of intermediate consumption, compensation of employees, consumption of fixed capital, and indirect taxes net of subsidies. It is approximately equal to accounting profit before the deduction of direct taxes, dividends and bad debts, and before the deduction of interest paid, or the addition of interest received.

Other current transfers to/from the rest of the world

(national accounts). In theory, these items cover all current transfers other than property and entrepreneurial income. However, in practice, it has not been possible to identify all these transfers separately, and the figures are deficient in two respects. Firstly, not all current transfers can be identified. In particular, those associated with insurance transactions are omitted, since all insurance flows are recorded as either exports or imports of services. Secondly, it has proved difficult to distinguish between current and capital transfers to the rest of the world, and in the NZSNA all have been treated as current.

Other income.

Gross income from renting and leasing of land and buildings, direct government cash grants and subsidies, plus all other income (excluding proceeds from the sales of capital assets, exchange gains, revaluation of assets, and other extraordinary items).

Other capital.

All other foreign claims and liabilities of New Zealand. It excludes claims and liabilities associated with direct investment, portfolio investment and reserves.

Other government sector.

State-owned enterprises (SOEs) and local government organisations.

Other investment income.

Income earned by investors in which their equity holdings are less than 25 percent of the enterprise and interest payable and receivable between unrelated companies.

Other operating expenditure.

All other operating expenses excluding salaries and drawings by working proprietors/partners and expenses of a capital nature.

Other sector.

Private sector and other central government organisations.

Other services.

Transactions in goods, services and incomes not included elsewhere.

Overseas trade—exports and imports.

The Customs entries relating to goods cleared. Overseas trade statistics show exports valued fob and imports valued cif.

Paid employees.

See persons engaged.

Part-time.

Persons working less than 30 hours a week.

Persons engaged.

The number of full-time equivalent persons engaged. This equals the number of full-time employees and working proprietors plus half the part-time employees and working proprietors. The resultant value is then rounded up to the nearest whole number at the activity unit level and is taken as 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 periods if certain stated assumptions apply.

Portfolio investment.

Investments in long-term bonds and corporate equities which are not direct investment or reserves.

Private sector.

Companies, financial institutions and producer boards.

Property and entrepreneurial income to/from the rest of the world

(national accounts). The property income component of these items refers to the transfers of income accruing to the owners of financial assets, intangible assets such as patents, copyrights and concessions, and mineral rights. This income is mainly in the form of interest, dividends, rent, and royalties. The entrepreneurial income refers to the actual withdrawals of income from enterprises operating overseas, such as the branches of foreign companies.

Provisional

(statistics). Statistics which are derived using preliminary or incomplete data and released before final data becomes available.

Purchase of intangible assets from the rest of the world, net

(national accounts). The value of purchases by residents from non-residents of intangible assets, less sales of such assets by residents to non-residents. Examples of these types of assets are mineral rights, fishing quotas, patents, copyrights, and trademarks. In the NZSNA flows associated with this item are not distinguishable in the source data and consequently are included in exports/imports of goods and services.

Purchases and other operating expenses.

Total purchases and operating expenses, less interest, bad debts, donations, royalties and patent fees. Also excludes salaries and wages paid, and depreciation. In the Quarterly Economic Survey of Manufacturing this term excludes exchange losses and extraordinary terms, eg losses on sales of fixed assets, sales tax, beer and excise duty and fringe benefit tax.

Re-exports.

Goods, materials or articles exported in the same condition as they were imported, and imported goods which have undergone operations such as repair, repacking, or bottling which leave them essentially unchanged before exporting.

Re-imports.

Goods, materials or articles, imported in the same condition as they were exported from New Zealand, one third of re-imports are made up of live animals, principally racehorses and dogs.

Rent and leasing.

Total expenditure on or income from the rent and leasing of land and buildings and of plant, equipment and vehicles.

Reserves

(balance of payments). Foreign reserves assets of government. The changes in reserves due to transactions equates to the balance on current account plus the net apparent capital inflows. The ‘counterpart’ to valuation change shows the change in the value of total foreign reserve assets arising from exchange rate changes.

Revised

(statistics). In this volume, any data which is different from that printed in the last edition.

Rural areas.

Those areas not specifically designated as ‘urban’. They include towns of fewer than 1,000 population plus administrative district territory where this is not included in an urban area. Rural areas include offshore islands.

Salaries and wages.

Gross earnings during the accounting year of all paid employees (full-time, part-time and casual) in any enterprise included in a census. Included are such items as overtime, sick and holiday pay, bonuses, payments under penal-rate schemes, severance pay, value of free supplies and sales commission paid to own employees, and excluded are drawings of working proprietors or partners.

Sales of goods and services.

Goods and materials manufactured from purchased materials; includes repairs and other services provided and sales of goods purchased for resale.

Sample survey.

A type of survey in which only a representative proportion of the given population provides detailed information. The sample statistics are summarised and are used to estimate statistics for the full population.

Savings

(national accounts). The residual item in the National Income and Outlay Account after all current receipts and disbursements have been accounted for.

Seasonal adjustments.

Adjustments made to statistical time series (usually monthly or quarterly) to provide a refined series in which the fluctuations due to seasonal variations have been removed.

Secondary urban areas.

Areas with populations which range between 10,000 and 29,999.

Sector of employment.

Refers to the industrial sector in which an employing organisation is engaged. This was introduced at the 1981 Census and now includes: producer enterprises; financial intermediaries; general government; private non-profit organisations serving households; households and rest of world.

Statistical areas.

Broad geographic regions not conforming to any legal or administrative boundaries with no pre-determined population size. There are 13 statistical areas.

Statistical discrepancy

(national accounts). In these accounts the items making up gross domestic product and expenditure on gross domestic product are estimated independently. Including the statistical discrepancy on the expenditure side of the first consolidated account, gross domestic product and expenditure, is simply a convention. It does not imply that one side of this account is more accurate than the other. The case is the same with the Capital Finance Account and the External Transactions Account.

Statistical divisions.

Statistically defined areas introduced at the 1971 Census to cover the seven main population centres of the country. The basic requirement is a minimum population of 75,000 within a relatively compact area, including rural residents.

Stocks.

This includes materials, such as components, stores, fuels containers, and other packaging materials as well as finished goods and work in progress, such as goods purchased for resale without further processing.

Subsidies.

Direct government cash grants and subsidies, other than for capital purposes.

Surplus of the nation on current transactions

(national accounts). The excess in the External Transactions Account of current receipts over current disbursements.

Total expenditure.

Purchases and operating expenses, excluding losses in extraordinary items, less working proprietors/partners salaries and wages.

Total income.

Sales and other income, excluding gains in extraordinary items, adjusted for difference between opening and closing stocks.

Transfers

(balance of payments). Special counter entries for one-sided transactions such as gifts of goods, services, and financial assets.

Transportation

(balance of payments). Exports and imports of services associated with the international carriage of goods and passengers. Includes freight, air fares, merchandise insurance, port services, and stevedoring.

Travel.

Goods and services sold to foreign travellers in New Zealand and vice versa.

Turnover.

Total sales and other income, less: interest; dividends; donations; grants; royalties; insurance claims received. Capital work done by employees is included.

Urban areas.

Comprises a three-part classification consisting of main, secondary and minor urban areas which constitute the ‘urban’ population of New Zealand. Main and secondary urban areas are centred on a major city or borough and include neighbouring boroughs, town districts and parts of counties which are regarded as suburban and belonging to that centre of population.

Vfd

(value for duty). This is the assessed value of merchandise imports on which duty is based. It is roughly equivalent to the current domestic value of goods in the exporting country.

Value added.

The amount added to goods and services by the contributions of capital and labour (i.e. the costs of bought-in materials and services has been deducted from the total value of output).

Vital statistics.

Statistics of events such as births, deaths, and marriages which influence the numbers of a population.

Work status.

Refers to the full-time labour force (persons working 30 hours or more per week plus unemployed and seeking full-time work); the part-time labour force (persons working 1 to 29 hours per week plus unemployed and seeking part-time work) and persons not working.

Appendix B. Statistics New Zealand publications

The following publications are available from offices of Statistics New Zealand, which are located in Auckland, Wellington, Christchurch and Dunedin. Addresses are given at the front of this book.

General

Facts New Zealand

Hot Off the Press—Information releases

Key Statistics (monthly)

New Zealand in Profile 1994 (annual)

Statistics Catalogue 1994 (annual)

A Guide to Good Survey Design

Half-yearly report of the Government Statistician (Parl, paper G. 28 HY).

Annual report of the Government Statistician (Parl, paper G. 28).

Business and economic

Agriculture 1991 (annual)

All about the Consumers Price Index

Analysis of the Crown Accounts, Fiscal Years 1991/92

Balance of Payments: Concepts, Sources and Methods 1991

Business Activity 1992-93 (annual)

Consumer Expenditure 1993 (annual)

The Fiscal Impact on Income Distribution 1987/ 88

Food Balance Sheets (annual)

Overseas Trade 1992 (annual)

Social and demographic

All About Women in New Zealand

Demographic Trends 1992 (annual)

Documenting the Environment

Elderly Population of New Zealand

Incomes 1991 (annual)

Justice 1990

Labour Market 1993 (annual)

Making Provision for Retirement

Measuring Up

New Zealand Life Tables 1985-87

New Zealand Social Trends—Education

New Zealand Social Trends—Incomes

New Zealand Social Trends—Work

Population, Labour Force and Household Projections 1991-2031

Women in New Zealand

Testing Time

Tobacco Statistics 1991

1991 Census of Population and Dwellings reports (five-yearly)

Location and Increase of Population and Dwellings

Final Local Authority Population and Dwelling Statistics

Regional reports

Northland/Auckland

Waikato/Bay of Plenty

Gisborne/Hawke's Bay

Taranaki/Manawatu-Wanganui

Wellington

Nelson-Marlborough/West Coast

Canterbury

Otago/Southland

Regional Summary

Electoral Profiles (1987 Boundaries)

Electoral Profiles (1992 Boundaries)

Topic reports

Iwi Population and Dwellings

National Summary

New Zealand's Population Summary

New Zealand's Multicultural Society

New Zealanders at Work

New Zealand's Social Structure

New Zealanders at Home

New Zealand Maori Population and Dwellings

Pacific Island Population and Dwellings

Population Overview

Reference reports

Concepts, Definitions and Classifications

Range and Availability of Statistics

Statistical classifications and standards

A Guide to New Zealand Standard Statistical Classifications

Australian and New Zealand Standard Industrial Classification (ANZSIC)

New Zealand Standard Areas Classification Manual

New Zealand Standard Classification of Occupations (NZSCO)

New Zealand Standard Country Codes (NZSCC)

New Zealand Standard Institutional Sector Classification Manual (NZISC)

New Zealand Standard Industrial Classification (NZSIC)

New Zealand Standard Classification by Broad Economic Categories

New Zealand Harmonised System Classification (NZHSC)

New Zealand Standards for Financial Statistics

Reviews of statistics

Report of the Review Committee on Health Statistics, 1992

Report of the Review Committee on Income and Wealth Statistics, 1991

Report of the Review Committee on Macroeconomic Statistics, 1991

Statistics New Zealand keeps many of its published series on microfiche. You can get a list of the information stored in this way from any office of the department.

Index

Names of people, places and geographic features are generally not indexed separately, but can be found on pages listed under the relevant headings, eg Cities; Mountains; Population. Exceptions are names of countries, and inhabited islands. Individuals are indexed only where there are articles solely about them or they come in for particular attention in the text.

Acts of Parliament and statutory bodies are indexed separately only where there is a major reference.

A large number of organisations and bodies indexed by name have the prefixes ‘National’ or ‘New Zealand’. If there is no reference under a more generally known name, they may be found under these prefixes (eg National Film Library; New Zealand Dairy Board).

Individual commodities or products are indexed separately only when they are unusually significant, eg Wool. Where there is no individual entry, look on pages listed under the appropriate general index entry:

  1. General commodity or product headings, eg Crops, Dairy products, Minerals, Meat; or

  2. General economic and business activity headings, eg 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.

A

Abortion, 176-7
ACCESS training scheme, 294, 296, 297
Accident Compensation Corporation, 182-5
Accident compensation levy, 529
Accidents, 182-91
cases of, treated in public hospitals, 180
Safety
fatal, 185-91
Safety
at home, 180, 190
Safety
motor vehicle, 180, 185-8, 189-90
Safety
prevention of,
Safety
water, 188-90
Accommodation supplement, 421
Accommodation, tourist, 280
Achievement Initiative, 204-5
Acts of Parliament, 17
Adoption, 155
Adult education,
Continuing education
Advertising, 249-50
Aerial topdressing, 344, 438-9
Africa, relations with, 61-2, 480
Age distribution,
by ethnic group, 93-7, 126
by sex, 91-3
of population, 88-93
of prisoners, 237
of new mothers, 85-8
at death, 88-90
AgResearch, 312
Agricultural land, 342-3
Agricultural costs, price index, 344-5
Agricultural Production Account, 344
Agricultural production (see also Dairy products, Meat and meat products, Wool,)
crops, 361-2
indicators of, 344-5
marketing, of products, 352-3, 354-5, 357, 359, 360, 364, 365, 366
Agriculture and Fisheries, Ministry of, 30, 345-8, 377
Agriculture, aspects of, 341
capital expenditure, 343
cattle, 342, 343, 349, 351
costs of, 344-5
crops, 361-2
current situation and trends, 341
dairy farming, 342, 343, 349, 356-8
deer farming, 342, 343, 349, 350
farm employees, 343
goat farming, 342, 343, 349, 350
irrigation, 332-3
numbers and types of farms, 342-3
pig farming, 342, 343, 349, 358-9
production indicators, 344-5
quarantine, 348
sheep, and sheep farming, 342, 343, 349-50, 354-6
Aid, overseas, 62-5
Air force, 75-6
Air freight, 435-7
Air mail, 256, 435-7
Air pollution, 165, 334
Air transport,
Aviation
Airfrosts, 7
Airways Corporation of New Zealand Ltd, 434-5
Alcohol (see also (Beer, Wine and winemaking,)
consumption, 170-1
excise on, 532
and health, 170-1
legal aspects of consumption, 452-3
Alcohol Advisory Council, 171
Alexander Tumbull Library, 268-9
Amenities, of dwellings, 112
Animals and plants,
Vegetation and wildlife
Animals, farm,
Livestock
Anniversary day holidays, provincial, 306
Antarctica, 69, 73
Antiquities, protection of, 265
ANZUS (Australia, New Zealand and United States) Treaty, 70
APEC countries, trade with, 59, 485-8
Apiaries, 360-1
Apples and pears, 365
Appliances, in dwellings, 112
Apprentices, 217-8, 295
Aquaculture, 380
Archaeological sites, protection of, 265
Area, total land, 1, 327
Armed forces, 74-6
community assistance, 72-3
exercises overseas, 72
New Zealand Army, 75
overseas aid, 71-2
Royal New Zealand Air Force, 75-6
Royal New Zealand Navy, 74-5
strength of, 74
Arrivals, in country
(Immigration), 90-1)
Art galleries and museums, 263-4
Arts and cultural activities, 259-62
support of, 259-60
Arts Council (Queen Elizabeth II), 260-1
ASEAN (Association of South-east Asian Nations), 58-9, 71, 485-8
Asian countries, relations with, 58-9, 490-1
Asian Development Bank, 66
Assistance to developing countries, 62-3
Audit Office, 36
Australia New Zealand and United States Treaty (ANZUS), 70
Australia New Zealand Closer Economic Relations Trade Agreement (CER), 58, 484
Australia, relations with, 58, 484
Autocheck, 444
Average Gross Income Index, 299-301
Average retail prices, 504-6
Average Tax Rates Index, 299-301
Aviation, civil, 434-9
aerial work, 344, 438-9
air mail, 256, 435-7
airlines, 429, 439
airports, 429, 436, 438
distances to overseas destinations, 438
domestic, 429, 435
freight and passenger volumes, 435, 436, 437
international, 435-8
licensing and control of, 434, 435

B

Balance of payments, 561-7
summaries, 562-3
Bankruptcies, 456-7
Banks and banking, 509-15
finance institutions, 512-3, 514-5
hire purchase, 465-6
merchant banks, 514-5
registered banks, 512-4
Reserve Bank of New Zealand, 509-11
savings institutions, 512-5
statistics, 515
Beef, 351-3
Beer, consumption per capita, 170-1
Bees and beekeeping, 360-1
Benefits and pensions
accident compensation, 182-5
accommodation, 421
child care, 146
current rates, 144-5
dental, 165
disability allowance, 147
domestic purposes, 145
emergency, 146
expenditure on, 143, 144, 145-8
family support, 146
funeral, 148
handicapped child, 147
health, 163-5
hospital, 164
invalids, 145
maternity, 164
national superannuation, 146-7, 149-50, 529
orphans, 146
pharmaceutical, 164
population receiving, 147
reciprocity agreements, 149-50
sickness, 145
special, 147
special needs, 147
training, 146
training incentive, 147-8
transition to work, 148
unemployment, 145-6
unsupported child, 146
veterans, 146
war pensions and allowances, 149
widows, 145
Betting, 276-7
Bilateral assistance, 62-3
Bill of Rights Act 1990. 14
Bills, passing of, 17
Birthplaces, of population, 126-7
Births and birth rates
ex-nuptial, 86-7
Maori, 133-4
stillbirths, 175-6
Bookmaking, 276-7
Books and libraries, 266-70
Broadcasting, 243-50
Commission, 243-4
developments, 245
policy, 243-5
public broadcasting fee, 243
radio, 246-8
Standards Authority, 244
television, 245-6
Building and construction
activity, 424-7
permits issued, 425
Buildings,
construction standards, 423
historic, 264-5
Bursaries,
school boarding, 210
for tertiary study, 201, 216
Buses, 443, 445
school, 210
Business development, 410-11, 412
Business Directory, 567-71
Business statistics, 568-71
Butter, 356-8

C

Cabinet, 15-6, 21-2
Cadet forces, 73
Campbell Island, 1
Canada, relations with, 59, 481-2
Cancer, deaths from, 174-5
Capital Goods Price Index, 507-8
Capital Finance Accounts, 553-4
Capital gains, tax on, 531
Careers Service, The (Quest Rapuara), 197, 295-6
Cargo,
air, 435-7, 491-4
handled at ports, 432, 491-5
Carpet industry, 408
Cars, 109, 407, 443-5
Casein, 358-8
Cattle, 342, 343, 349, 351
Cawthron Institute, 316-7
Censorship, 262-3
films and video recordings, 262-3
indecent publications, 263
Census of Population and Dwellings,
ethnic origins, 93-7, 126-7
households and dwellings, 105-8
employment, 287-8
incomes, 297-303
labour force, 285-91
Maori population, 93-6
Pacific Island Polynesian population, 96-7
religious professions, 123-4
social welfare payments, 143, 145-9
total population, 79-80
travel to work, 445
unemployment, 291-4
Central government finance, 521-3
accrual accounting, 522-3
Taxation
appropriation process, 521-2
Taxation
crown banking arrangements, 523
Taxation
expenditure, 521-3
Taxation
financial reporting, 522
Taxation
funding process, 521-2
Taxation
legislative regime, 522
Taxation
public debt, 534-9
Taxation
revenue,
Taxation
securities on issue, 517-8, 536, 538-9
CER (Australia New Zealand Closer Economic Relations Trade Agreement), 58, 484
Cereals, 361-2
Chatham Islands, 43
CHE
Crown Health Enterprises
CHEAC
Crown Health Enterprise Advisory Committee
Cheese, 356-8
Chemicals, poisonous, 193-4
Childbirth, 84-8
births and birth rate, 84-8
infant mortality, 175-6
maternal deaths, 176
maternity benefits, 164
parental leave, 306-7
Childcare and pre-school education
(Kohanga reo), 200, 202-3)
Child Support, 148, 528-9
Child Support Act 1992, 528-9
Children,
adoption of, 155
in care of Department of Social Welfare, 153, 155
custody and guardianship of, 153, 155
day care for, 200, 202-3
deaths of, 175-6, 190-1
health of, 168-70
and justice system, 151-5
Children and Young Persons Courts,
Youth Courts
Children and Young Persons Service, 151-5
Children's health camps, 169
China, relations and trade with, 59, 490-1
Chiropractors, 162-3
Chronology 1993, 46-8
Churches and religious organisations, number of adherents of, 123-4
Cinema, 259, 260, 262, 266
Cities and city councils
population of, 83-4
Citizenship, 127-8
Civil aviation,
Aviation, civil
Civil defence, 191
Civil jurisdiction of courts, 225
CLANZ
Community Learning Aotearoa New Zealand
CLEAR Communications, 251, 252
Clerk of the House of Representatives, 16, 20
Climate, 4-8, 385-6
Coal, 386-7, 394-7
Coastal shipping, 432, 495
Coat of arms, vi, 45
Coins and coinage, 516
Colleges,
secondary, 205-10
of education, 199, 210
Commerce Commission, 449, 454
Commerce, Ministry of, 30, 243, 317, 363, 385, 414
Commissioner,
for the Environment, Parliamentary, 38
Privacy, 15
Commissions of inquiry, 27
Commonwealth of Independent States, relations with, 61, 481
Commonwealth, relations with, 66
Community boards, 43
Community care, 235
Community centres, 219
Community Corrections Division, 233-5
Community Employment Group, 297
Community Funding Agency, 150-1
Community housing programmes, 422-3
Community law centres, 226
Community Learning Aotearoa New Zealand, 218
Community service, 235
Community Services Card, 146
Community Support Groups, 241
Community Taskforce, 296
Community welfare services,
funding of, 150-1
Maori, 135-7
programmes, 151
Companies, 453-5, 457-8
insolvencies, 456-8
mergers of, 454-5
practices of, 454-5
registration, 453
taxation of, 530
Compensation, accident, 182-5
Conservation Authority, New Zealand, 339
Conservation boards, 339
Conservation, Department of, 30, 325, 336-9
Conservation of cultural property, 264
Conservation of natural resources
forests, 369-70
legislative reform, 328
of water and soil, 332-3
Consolidated Accounts of the Nation, 553-4
Constitution, 13-15
recent reform, 14-15
Construction,
Building and construction
Consumer protection, 450-2
Consumers Institute, 452
Consumers Price Index, 499-506
all groups, all urban areas combined, 502
expenditure weighting, 499-500
geographic coverage and published series, 500-1
geographical variation, 500-1, 503
index regimen, 499
international comparison, 503-4
price surveys, 500
revision of, 501
Continuing education, 211, 218-9
Controller and Auditor-General, 36
Convictions,
non-traffic offences, 227-30
traffic offences, 232-3
Cook Islands, 57-8, 66
Cook Strait rail/ferry service, 432, 439, 440
Copyright, 262
Corporations, government, see State owned enterprises
Corrections system, 233-9
Community Corrections Division, 233-5
Penal Institutions Division, 235
Psychological Services Division, 239
community-based sentencing, 234-5
detention, 235, 236
census of prison inmates, 236-9
Corrective training, 236
Correspondence School, 209, 219
Cost of living,
(Consumers Price Index, Real disposable income indexes, Retail prices), 499-506)
Council for Maori and South Pacific Arts Te Waka Toi, 260-1
Country of birth, 126-7
Court of Appeal, 221-2, 225, 227
Courts
of Appeal, 221-2, 225, 227
District, 223, 225, 227
Employment, 223, 224
Family, 116-7, 223
High, 222, 225, 227
Maori Land and Appellate, 223, 324-5
Youth, 154-5, 223
CPI (Consumers Price Index), 499-506
Craft, 260
Credit cards, 466
Crime, 226-33
compensation for, 233
reported offences, 226-7
CRIs, 311, 312-4
Crop and Food Research, 313
Crops,
fruit, 363-6
grains, 361-3
seeds, 362
Crown health enterprises (CHEs), 159, 178
Crown Health Enterprise Advisory Committee (CHEAC), 159, 178
Crown land, 325-6
Crown Lands, Office of, 325
Crown Law Office, 31
Crown-owned entities, 30, 35
Crown Minerals Act 1991, 332, 399
Crown Research Institutes (CRIs), 311, 312-4
Cultural activities, 259-62
Cultural Affairs, Ministry of, 31, 259-60
Cultural sites, protection of, 264, 265, 329
Currency, 516
Curriculum framework, 203-4
Customs Department, 31, 469-70
Customs tariff and revenue, 469-70

D

Dairy farming and products, 342, 343, 349, 356-8
butter, 356-8
casein, 356-8
cheese, 356-8
exports, 357-8
marketing of, 357-8
milk and milk products, 356-7
prices, 358
production index, 344-5
Dance, 260
Data communications, 253-4
Day-care, 200, 202-3
Daylight saving, 10
Deaths and death rates, 88-9, 97-9
accidental, 185-91
from cancer, 174-5
of children, 175-6, 190-1
infant, 175-6
maternal, 176
major causes, 173-4
Maori, 89, 134
stillbirths, 175-6
Debt,
overseas, 536-9, 566-7
private, see Credit, Mortgages
public, 534-9
Deer farming, 342, 343, 349, 350
Defence, 69-77
agreements, 70-1
expenditure, 73-4
Force, New Zealand, 69, 73-4
Ministry of, 31, 69-70, 73-4
relationships, 70-1
White Paper 1991, 69-70
Demography see Population
Dental benefits, 165
Dental health, 165, 171-2
Dentists, 161
Department of Conservation, 30, 325, 336-9
Department of Internal Affairs, 32
Department of Justice, 32, 322-5
Department of Labour, 32, 193-4, 285, 294, 296-7
Department of Prime Minister and Cabinet, 33
Department of Social Welfare, 34, 143-57
Department of Statistics (Statistics New Zealand), 34
publications, 577
Department of Survey and Land Information, 34, 321-2, 325
Departments, government,
chief executives of, 30
expenditure by, 523-5
functions of, 30-5
Departures, from country, 90-1
Deportation, 131
Design, industrial, 317-8, 319
Developing countries, relations with, 62-4, 480-3
Dietitians, 162
Diplomatic representatives overseas, 57, 60
Disability allowances, 147
Disabled persons,
assistance and services for, 147-8, 165
Benefits and pensions
benefits for,
Benefits and pensions
Disaster relief, 73, 191-2
Diseases,
treated, 178-80
Displaced persons,
Refugees
Dissolution of marriage, 116-8
Distribution of population, 81-4
District Courts, 223, 225, 227
District planning, 224, 330
Districts councils, 40
Divorce, 116-8
Doctors, 161
Domestic purposes benefits, 145
Domestic trade and services, 463-6
Domestic travel, 281
Drinking, legal aspects of, 446
Drivers' licences, 445
Driving offences, 232, 446-7
Drownings, 188-9
Drugs,
legal, control of, 166-7
offences involving, 227, 229
Dwellings
tenure of, 106-7, 108
types of, 105, 108

E

Early Childhood Development Unit, 197
Earnings, 298-9
Earthquake Commission, 191-2
Earthquakes, 3-4
EC (European Community), 59-60, 488-90
Economy, the, 543
international competitive, 551
restructuring the, 549
government intervention in, 544
Economy Wide Census, 567
Education
administration of, 197-202
agencies, 197-8
attainments, 205-7, 211, 213-5
bodies, 198-200
continuing, 211, 218-9
curriculum, 203-5
funding of, 200-2, 216
health, 170-2
international links, 202
of Maori, 200, 203, 209
Maori language, 200, 203
Ministry of, 31, 198, 200-2
polytechnic, 201, 216-7
pre-school, 197, 200, 202-3
public expenditure on, 202
Review Office, 31, 198
rural, 209, 211-2
Service Centres, 199
special, 197, 201, 210-1
student allowances, 201, 216
teacher numbers, 209-10, 211
teaching resources, 211-3
teacher training, 211
technical, 216-8
transition, 217-8
university, 201, 213-5
women and, 120-1
Educational Research, New Zealand Council for, 199-200
Education and Training Support Agency, 197, 218, 294-5
EEZ (Exclusive Economic Zone), 72, 377-8
Eggs, 360
Eggs Producers Federation, 360
El Nino, 7-8
Elections, 23-7
local body, 44
parliamentary, 16-7, 19-21
referenda, 14-5
term poll, 27
Electoral referendum, 14-5
Electoral reform, 14-5
Electorates, parliamentary,
listed, 20-1
maps of, 24-5
review of, 23-4
Electricity, 386-8, 388-92
consumption of, 386-8, 391
generation of, 389-91
markets, 391-2
reticulation, 391
supply authorities, 391
Electricity Corporation of New Zealand, 389-90
Electronics industry, 406-7
Embassies, 57, 60
Emergency benefits, 146
Emigration, 90-1
Employment
assistance, 294-7
Human Rights Commission in manufacturing, 409-10
farm, 343
Human Rights Commission in manufacturing, 409-10
and human rights
Human Rights Commission in manufacturing, 409-10
recorded by Business Directory, 568-9
Service, New Zealand, 296-7
status, 285-7, 298
surveys of, 285
and training programmes, 294-7
of women, 121, 287-8
Employment Contracts Act 1991, 303-8
Employment Court, 223, 305
Employment Related Education Fund, 308
Employment Tribunal, 223-4, 305
Energy, 385
biofuels, 398-9
consumption, 386-8
demand and supply, 387-8
efficiency, 386
fossil, 392-7
geothermal, 397-8
policy, 385-6
primary, 386-8
review of energy research, 386
solar, 399
supply, 386-8
wave, 399
wind, 398
Energy, forms of,
coal, 386-8, 389, 394-7
electricity, 386-8, 388-92
gas, 386-8, 393-4
geothermal, 386-8, 397
oil, 386-8, 392-3
renewable, 398-9
Energy Efficiency and Conservation Authority (EECA), 386
Engineering industry, 407
Enterprise Allowance, 296
Enterprise survey, annual, 567
Environment
(Conservation of natural resources, Planning), 328)
Act 1986, 31
global issues, 334-6, 406
and mineral exploitation, 332, 399
Ministry for the, 31, 328, 335
Parliamentary Commissioner for, 38
Resource Management Act 1991, 328-36
Environmental,
health, 165-6
issues, 334-6
labelling, 319
planning, 328-34
Environmental Choice NZ, 319
Environmental directorates, 335-6
Environmental Health and Forensic Sciences, Institute of, 312-3
Entertainment expenses, 530
Equal employment opportunities, 29, 118, 307
Equal Employment Opportunities Trust, 307
Equal Opportunities Tribunal, 118, 224
Equal pay, 307
EECA
Energy Efficiency and Conservation Authority Erosion, control of, 332-3
Estate duty, 531
Ethnicity, 93-7, 124-6
Maori,
Maori population
Pacific Island Polynesians,
Pacific Island Polynesians
Race relations and racial discrimination,
(Treaty of Waitangi), 118)
European Community (EC), 59-60, 488-90
European countries, relations with, 59-60, 480-1, 488-90
Events, chronology of, 46-8
Examinations, 198, 205-7, 213-4, 217-8
Exchange rates, 518-9
Excise duties, 470, 532-3
Exclusive Economic Zone (EEZ), 72, 377-8
Executive Council, Cabinet and, 21-2
Ex-nuptial births, 86-7
Exotic forests, 327, 369, 372-4
Export Prices Index, 496
Export Volume Index, 498
Exports, 471-6
agricultural, see Marketing, of agricultural products dairy produce, 473
Export Price Index, 496
Export Volume Index, 498
fish, crustaceans and molluscs, 474-5
forestry products, 474
fruit and nuts, 475-6
growth and diversification of, 547
major commodities exported, 471-2
meat and edible offal, 472-3
Terms of Trade Index, 497
wool, 475
External migration, 90-1
External Relations and Trade, Ministry of,
Foreign Affairs and Trade, Ministry of
External trade
balance of merchandise trade, 470-1
exports, 471-6
imports, 476-9
major trading partners, 479-91
overseas cargo, 491-5
overseas trade indexes, 495-8
External transactions account, 554

F

Factories
(Manufacturing industry, Occupational safety and health), 193-4)
Fair trading legislation, 449, 450-2
Families
(Households), 85-8)
Family assistance, 146, 528-9
Family Courts, 116-7, 223
Family Group Conferences, 152, 154
Family health, 168-70
Family law, 116-7, 151-5
Family planning, 168
Family support, 117, 146, 528
Farm employment, 343
Farming, see Agriculture, Livestock
Farming Inputs Price Index, 345
Farms, numbers and types, 342-3
Fauna,
Vegetation and wildlife
Federation of Scientific and Technological Societies (FOSTS), 316
Ferries, 432, 439, 440
Fertiliser
(Topdressing), 344)
Fertility rates, 85-8, 97-9
Fiji, relations with, 57-8, 482
Film, 259, 260, 262, 266
Films and video recordings, 259, 260
censorship of, 262-3
New Zealand Film Archive, 266
New Zealand Film Commission, 262
Financial institutions, 512-3, 514-5
Fire and general insurance, 458-61, 462-3
Fire fighting and prevention, 192-3, 339
Fish,
catch, 379
exports, 381-2
processing and marketing, 380
species, 377, 378
Fisheries,
management, 377-9
resources, 377
review, 381
Fisheries law reform, 380, 381
Fisheries resources, 377
protection of, 72
Fishing,
by foreign vessels, 381
Industry Board, 382
recreational, 275
research, 313
Fishing vessels, 381
Five Power Defence Arrangements, 70
Flag, New Zealand, 45
Floods, 7
Flora,
Vegetation and wildlife
Fluoridation, 172
Food,
expenditure on, 109-10
industry, 407-8
prices, 502, 503, 504-5
standards, 167
Food and Agriculture Organisation, United Nations (FAO), 64
Footwear industry, 409
Foreign Affairs and Trade, Ministry of, 31-2, 57, 60, 202, 215, 259, 335
Foreign aid, 62-5
Foreign exchange market, 518-9
Foreign policy
(Official Development Assistance (ODA)), 57, 62-5)
Foreign trade,
External trade
Forest funds, 339
Forest parks, 336, 338
Forest products,
Timber and forest products
Forest Research Institute, 313, 374
Forestry and logging, 369-77
employment in, 371-2
Timber and forest products
private, 369, 371
Timber and forest products
products,
Timber and forest products
research into, 313
state, 369, 370-1
training in, 372
Forestry Corporation Ltd, New Zealand, 370-1
Forestry, Ministry of, 32, 374
Forests, 7-9, 369-71
conservation and protection, 336-8
exotic, 327, 369, 372-4
native, 327, 370, 372-4
ownership of, 370-1
planting of, 369-70
FOSTS
Federation of Scientific and Technological Societies
Freight,
Cargo
Fringe benefit tax, 530
Fruit, 363-6
Fuels,
coal, 386-8, 389, 394-7
gas, 386-8, 393-4
oil, 386-8, 392-3

G

Galleries, art, 263-4
Gambling, 276-7
Gas, 386-8, 393-4
General Agreement on Tariffs and Trade (GATT), 65, 341
General Assembly
Parliament
General elections, 14, 19-21, 23-7
Geographical features, 1-2
glaciers, 1
lakes, 2
mountains, 1
rivers, 2
Geological and Nuclear Sciences, Institute of, 313-4
Geology
(Minerals and mineral products), 2-3)
Geothermal power, 386-8, 397
Geriatric hospitals, 164, 167, 178
Glaciers, 1
Global warming, 385-6
Glossary of statistical terms, 572
Goat farming, 342, 343, 349, 350
Gold, 79, 400
Goods and services tax (GST), 470, 531
Government, the, 21-2
Government departments
expenditure by, 523-5
functions of, 30-5
Government finance,
Central government finance
Government stock and securities, 517-8, 536, 538-9
Government Superannuation Fund, 32, 461-2
Governor(s)-General, 13, 15-6, 17
Graduates, university, 213-6
Grains, 361-3
Grape growing and wine production, 364-5
Greenstone, 401-2
Greyhound racing, 277
Gross domestic product, 552-3, 555-61
in constant prices, 559-61
index of, 559-60
by production group, 556-7
Gross fixed capital formation, 556-8
GST, 470, 531
Guaranteed minimum family income, 528
Guardianship, 153

H

Handicapped child allowance, 147
Handicapped persons,
Disabled persons
Harbours,
Ports
Harmonized System, 469-90
Hazardous substances, 331
Health, 159
and causes of death, 174
Hospitals
education, 170-2
Hospitals
environmental, 165-6
Hospitals
expenditure, 160-1
Hospitals
family, 168-70
Hospitals
and hospitals,
Hospitals
Information Service, 172-3
insurance, 462-3
mental, 167-8, 180-2
Ministry of, 32, 159, 163, 166-73
occupational, 193-4
practitioners, 161-3
research, 173
sector reforms, 159-60
services structure, 159-60
statistics, 172-3
voluntary sector, 167
women's, 121, 123
Health benefits, 163-5
Health camps, 169
Health education, 170-2
Health inspection, 165-6, 167
Health Research Council, 173
High Court, 222, 225, 227
Higher School Certificate, 205, 206-7
Highways, 442-3
Hillary Commission for Sport, Fitness and Leisure, 271-4
Active in Age, 271-2
KiwiAble, 272
Hire purchase, 465-6
Historic places, 264-5
Historic reserves, 338
Hocken Library, 269-70
Holidays, 306
Home appliances, 112
Home ownership, 106-7, 108, 419-21
Homeseekers lending, 421-2
Homicide, 226, 227-8
Honey, 360-1
Horse racing, 276-7
Horticulture and Food Research, 314
Horticulture
(Crops), 363-6)
Hospital benefits, 164
Hospitals,
administration, 178
geriatric, 164, 167, 178
patients treated, 179-80
public, 178-80
Hotels and restaurants, 452-3, 463-6
Hours of work, 305
House of Representatives,
Parliament
Household Expenditure and Income Survey, 109-12
Household Labour Force Survey, 285-91
Households, 105-12
amenities of, 112
composition of, 105, 107
expenditure by, 109-12
incomes of, 110
transport, 109
Housing, Ministry of, 32, 422
Housing
community programmes, 422-3
construction, 423-7
costs of, 419-21, 424
home ownership, 107, 108, 421-3
Home owner lending, 421-2
loans for, 419-20
Maori, 107-8, 420-1
market, 418-9
Pacific Island Polynesians, 107-8
reform, 421-2
(Rental housing), 418)
rental
(Rental housing), 418)
state, 421-2
Housing Corporation, 32, 421
Human rights, 118
Bill of Rights Act 1990, 14
Equal Opportunities Tribunal, 118, 224
official information, 36-7
promotion of equal opportunity, 29, 118, 307
Housing New Zealand Limited, 422
Human Rights Commission, 118
Hunting, 275
Hydro-electric power, 386-8, 388-92

I

IBRD (World Bank), 64, 65-6
IMF (International Monetary Fund), 64, 65-6, 562, 564, 565
Immigrants, 128-31
Immigration, 128-31
current provisions, 128-31
and demography, 79, 81-2, 90-1
recent policy, 128-9
Immunisation, 169-70
Import Prices Index, 496
Imports, 476
Import Prices Index, 496
Import Volume Index, 497
major commodities imported, 471-6
mechanical and electrical machinery, 477-8
mineral fuels, 478-9
plastic and plastic articles, 479
Terms of Trade Index, 497
vehicles, 478
Imprisonment,
Prisons and prisoners
Income support, 143-50
Income Support Service, 144
Income tax,
companies, 530
index of, 299-301
personal, 526
revenue from, 533-4
Incomes
of companies, 530
of households, 110
Indecent Publications Tribunal, 263
Independent Broadcasting Association, 248
Index of Gross Domestic Product, 559-60
Indexes, explained, 574
Indexes, listed,
Average Gross Income Index, 299-300
Average Tax Rates Index, 299-300
Capital Goods Price Index, 507-8
Consumers Price Index, 499-506
Export Prices Index, 496
Export Volume Index, 498
Farming Inputs Price Index, 345
Import Prices Index, 496
Import Volume Index, 497
Index of Gross Domestic Product, 559-60
Labour Cost Index, 302-3
Prevailing Weekly Wage Rates Index, 302
Producers Price Index, 506-7
Real disposable income indexes, 299-301
Terms of Trade Index, 496-7
Industrial accidents, 193-4
Industrial design, 317-8, 319
Industrial relations
Labour relations
Industrial Research, 314
Industrial safety,
Occupational safety and health
Industrial structure of labour force, 289-90
Industry,
Manufacturing industry
Industry training strategy, 294-5
Infant mortality, 175-6
Inflation,
Consumers Price Index
Information, privacy of, 15, 36-7
Inland Revenue Department,
(Taxes and taxation), 32)
Insolvency, 456-8
Institute of Environmental Health and Forensic Sciences, 312-3
Institute of Geological and Nuclear Sciences, 313-4
Insurance,
accident, 182-5
earthquake damage, 191-2
fire and general, 460-1, 463
life, 460-1, 463
medical, 462-3
regulation, 458-9
Interest rates,
Monetary policy, Mortgages
Inter-industry studies, 567-8
Internal Affairs, Department of, 32
Internal migration, 81-2
International Bank for Reconstruction and Development (IBRD), 64, 65-6
International comparisons, 112-3
abortion rates, 176-7
consumer prices, 503-4
defence expenditure, 73-4
infant mortality, 175-8
life expectancy, 89-91
motor vehicle accidents, 185-8
standards of living, 112-3
International Development Association (IDA), 64, 65-6
International Finance Corporation (IFC), 64, 65-6
International Monetary Fund (IMF), 64, 65-6, 562, 564, 565
International organisations, participation in, 63-7
International relations, 57
International Whaling Commission (IWC), 67
International Wool Secretariat, 354-5
Invalids benefit, 145
Iron
(Steel making), 399)
Irrigation, 332-3
Islands, outlying, 1

J

Japan, relations with, 59, 485
Job Plus, 296
Judges and judiciary, 221-4
Jury service, 226
Justice, Department of, 32, 233
Justice,
convictions, 227-30, 232-3
Courts
sentencing, 230-2
Courts
system of,
Courts

K

Kermadec Islands, 1
Kindergartens, 200, 202-3
Kiwifruit, 366-7
Kohanga reo, 137, 200, 202-3
Korea, trade with, 485-8, 490-1
Korowai Aroha-Aotearoa Inc, Te, 116

L

Labelling, environmental, 319
Laboratory technicians, medical, 163
Labour Cost Index (LCI), 302-3
Labour, Department of, 32, 193-4, 285, 294, 296-7
Labour force
employment status, 288-9
Household Labour Force Survey, 285-91
industrial structure, 289-90
occupational structure, 290-1
part-time, 286, 287-8
participation rates, 286
Quarterly Employment Survey, 285, 288, 298-9
survey of, 285
women in, 121, 287
Labour Party, 16, 20-1, 25-6
Labour relations,
bargaining arrangements, 303
disputes, 223-4
hours of work, 305
minimum entitlements, 305
minimum wages, 305
personal grievances and disputes, 303
public and annual holidays, 306
rights and obligations, 303-4
specialist courts, 223-4
strikes and lockouts, 305, 308-10
Lakes, 2
Lamb, 342, 343, 349-50, 351
Land,
agricultural, 327-8, 342, 343
area, total, 1, 327
controls on acquisition, 323
Crown, 325-6
leasehold, 325-6
Maori, 324-5
recreational, 336-40
registration of ownership, 322-3
surveys of, 321-2
transfers of, 322-3
use of, 327-8, 330-1
valuation of, 326
Landcare Research, 313
Land Corporation, 325-6
Land Information System (LIS), 322
Land tax, 531
Land Transport Fund, 441-2
Latin America and Caribbean, relations with, 59, 481-2
Latitude and longitude, 1
Law Commission, 225
Law, sources of, 224-5
Laws,
Legislation
Leasehold land, 325-6
Legal Services Act 1991, 226
Legal systems, 221-6
Legal tender, 516
Legislation, 17
Leisure activities, outdoor, 275-6
Liable Parent Contribution Scheme, 528-9
Libraries, 212, 267-70
Life expectancy, 88-9, 134
Life insurance, 460-1, 463
Lighthouses, 433
Liquidation, of companies, 457-8
Liquor,
Alcohol
Liquor licensing, 452-3
LIS
Land Information System,
Literature, 259, 260, 266-7
Livestock, 342-3, 348-51
cattle, 342, 343, 349, 351
deer farming, 342, 343, 349, 350
distribution of, 349
goat farming, 342, 343, 349, 350
health services for, 346-8
pigs, 342, 343, 349, 358-9
poultry, 359-60
quarantine of, 348
sheep, and sheep farming, 342, 343, 349-50, 354-6
Local authorities
population of, 83-4
rating and valuation, 326, 540
roading, 442-3
statistics, 540, 541
Local government, 38-45
boundaries, 41-2
community boards, 43
election and membership of, 44-5
organisation, 39-40
regional councils, 39-40, 43
special purpose local authorities, 43-4
territorial authorities, 40, 43
Local Government Commission, 45
Local government finance, 539-41
borrowing, 541
expenditure, 540
income, 540
Local government regions, population of, 81-4
Lotteries and lotto, 277
funding from, 259-60

M

Maatua whangai, 137
Magazines, 249
Mail services, 255-7
Major trading partners, 479
Mana Enterprises Scheme, 297
Manufacturing industry, 405-15
assistance to, 410-11, 414
enterprises, 409-10
geographical distribution of, 412-3
growth issues, 405-6
groups, 406-8
quarterly survey of, 414
sectors, 408-9
Maori
community services, 135-7
education of, 200, 202-3, 209
employment and training of, 295, 297
fisheries, 380
housing, 107-8, 420-1
justice, 223, 324-5
land, 324-5
language, 137-40, 200, 202
tribal developments and locations, 132, 135
women, 133-4
Maori and Pacific Islands Arts, Council for, Te Waka Toi, 260-1
Maori Congress, 136
Maori Council, New Zealand, 136
Maori Development, Ministry of, Te Puni Kokiri, 133, 135, 325, 420-1
Maori Education Foundation, 200
Maori electorates, 23
Maori fisheries, 380
Maori Land Court and Maori Appellate Court, 223, 324-5
Maori population
age and sex of, 93-6, 131-4
birth and death rates of, 95-6, 131-4
geographical distribution of, 95, 132, 133
households, 107-9
infant mortality in, 175-8
life expectancy, 89, 134
Maori wardens, 136
Maori Women's Welfare League, 136-7
Mapping, 321-2
Marine pollution, 334, 433
Marine wildlife, 338
Marital status, 113-6
Maritime parks and reserves, 336, 338
Marketing authorities for agricultural products,
apples and pears, 365
dairy products, 357
kiwifruit, 365-6
meat, 352-3
wool, 354-6
Marriage and marriages
age at, 86-7, 115-6
dissolution of, 116-8
guidance, 116
rates of, 86, 113-4
Maternal deaths, 176
Maternity benefits, 164
Maternity leave, 306
Meat and meat products
beef, 352
chicken, 359
exports, 352-3
pigmeats, 358-9
prices, 352, 353
processing, 351
sheepmeats, 351-2
veal, 352
Media, 243-50
advertising, 249-51
magazines, 249
newspapers, 249
radio, 246-8
television, 245-6
Medical benefits, 164
Medical Council, 161
Medical insurance, 462-3
Medical laboratory technologists, 163
Medical practitioners, 161-3
Medical radiation technologists, 163
Medicines, control of, 166-7
Members of Parliament, 15-16, 19-21
listed, 19-21
salaries and allowances, 19
Mental health, 167, 180-2
Merchant banks, 514-5
Merchant navy qualifications, 433
Mergers, 454-5
Metals, 399-400
gold, 400
industry, 407
iron, 399
Meteorology,
Climate
Middle East, relations with, 61, 482
Migration,
external,
External migration, Immigration internal, 81-2
Military pensions, 149
Milk and milk products
(Dairy products), 356-8)
Mineral exploitation, 332, 399
Minerals and mineral products
coal, 386-8, 389, 394-7
metallic, 399-400
non-metallic, 400-2
production, 399, 403-4
Minimum wage, 305
Mining
and quarrying statistics, 403-4
laws on, 332, 399
safety and working conditions, 193-4, 305-7
Ministers of the Crown,
list of, 22
salaries and allowances of, 19
Ministry for the Environment, 31, 328, 335
Ministry of Agriculture and Fisheries, 30, 345-8, 377
Ministry of Civil Defence, 191
Ministry of Commerce, 30, 243, 317, 363, 414
Ministry of Consumer Affairs, 449, 451
Ministry of Cultural Affairs, 31, 259-60
Ministry of Defence, 31, 69-70, 73-4
Ministry of Education, 31, 198, 200-2
Ministry of Foreign Affairs and Trade, 31-2, 57, 60, 202, 215, 259, 335
Ministry of Forestry, 32, 374
Ministry of Health, 32, 159, 163, 166-73
Ministry of Housing, 32, 422
Ministry of Maori Development, Te Puni Kokiri, 33, 135, 325, 420-1
Ministry of Pacific Island Affairs, 33, 141-2
Ministry of Research, Science and Technology, 33, 311
Ministry of Tourism, 34, 279, 282
Ministry of Transport, 35, 181, 188, 429-30, 438, 434, 445-6
Ministry of Women's Affairs, 35, 118-23
Monetary policy, 516-7
Money, 516
Monopolies, 454-5
Mortality,
Deaths and death rates
Mortgages, 419-20
Housing Corporation, 420
interest rates of, 418
Motor spirits, duty on, 532, 533
Motor vehicle industry, 407
Motor Vehicles Securities Register, 444
Motor vehicles, 443-6
registration and licensing, 443-4, 445
inspection, 445
Mountaineering, 276
Mountains, 1
formation of, 2-3
Multilateral assistance, 62-3
Murder, 226, 227-8
Museum of New Zealand Te Papa Tongarewa, 264
Museums and art galleries, 263-4
Music, 259, 260

N

Narcotics,
Drugs
National Accounts, New Zealand System of (NZSNA), 552-61
development of, 552
National Advisory Committee on Care Health and Disability Support Services (NACCHDS), 159
National Advisory Council on the Employment of Women, 287
National anthems, 45-6
National Archives, 265-6
National disposable income, 552-4
National Drug Intelligence Bureau, 241
National emblems and anthems, 45-6
National Fish and Game Council, 339
National income and outlay, 553
National Institute of Atmosphere and Water Research (NIWA), 314
National Library of New Zealand, 33, 267-9
National parks
(Forest parks, Reserves), 336-8)
National Party, 16, 20-1, 25-6
National planning, environmental, 328-9
National Provident Fund, 33, 461-2
National superannuation, 146-7, 149-50, 529
Natural gas, 386-8, 393-4
Natural increase, of population, 85-8
Nature reserves, 338
Navigational aids, 433
Navy, Royal New Zealand, 74-5
New Zealand Apple and Pear Marketing Board, 365
New Zealand Army, 75
New Zealand Australia Closer Economic Relations Trade Agreement (CER), 58, 484
New Zealand Bibliographic Network, 268
New Zealand Certificate, 217, 218
New Zealand Children and Young Persons Service, 151-5
New Zealand Community Funding Agency, 150-1
New Zealand Conservation Authority, 339
New Zealand Council for Educational Research, 199-200
New Zealand Dairy Board, 357-8
New Zealand Defence Force, 69, 73-4
New Zealand Employment Service, 296-7
New Zealand Film Archive, 266
New Zealand Film Commission, 262
New Zealand Fire Service, 192-3
New Zealand Fishing Industry Board, 382
New Zealand Forestry Corporation Ltd, 370-1
New Zealand Government, the, 17, 22
New Zealand Government stock and securities, 517-8, 536, 538-9
New Zealand Health Information Service, 172-3
New Zealand Historic Places Trust, 264-5
New Zealand Household Expenditure and Income Survey, 109-12
New Zealand Income Support Service, 144
New Zealand Institute for Social Research and Development, 314
New Zealand Institute of Economic Research, 316
New Zealand Kiwifruit Marketing Board, 365-6
New Zealand Lotteries Commission, 277
New Zealand Lottery Grants Board, 260, 277
New Zealand Maori Council, 136
New Zealand Meat Producers Board, 352-3
New Zealand Olympic and Commonwealth Games Association, 274-5
New Zealand Patent Office, 317-8
New Zealand Police, 33, 239-44
New Zealand Pork Industry Board, 359
New Zealand Post, 255-7
New Zealand Qualifications Authority, 198, 217
New Zealand Rail Ltd, 439-41
New Zealand Railways Corporation, 439
New Zealand Sports Foundation, 274
New Zealand Stock Exchange, 455-6
New Zealand Symphony Orchestra, 262
New Zealand System of National Accounts (NZSNA), 552-61
Consolidated Accounts of the Nation, 553-4
New Zealand Time Service, 10
New Zealand Tourism Board, 34, 281-2
New Zealand Trade Development Board, 34, 469
New Zealand Wool Board, 354-6
New Zealand Workers Educational Association (WEA), 219
New Zealand's overseas posts, 57, 60
Newspapers and magazines, 249
Niue, relations with, 57-8, 66
NIWA (National Institute of Atmosphere and Water Research), 314
North Island, population of, 81
Nurses, and nursing services, 161
NZ On Air, 243-4
NZSNA (New Zealand System of National Accounts), 552-61

O

Occupations, 290-1
Occupational safety and health, 193-4
reform, 193
Occupational therapists, 162
OECD (Organisation for Economic Co-operation and Development), 67
Office of Crown Lands, 325
Official development assistance (ODA), 62-3
Official information, 36-7
Ohu Whakatupu, Te (Maori Women's Secretariat), 119, 120
Oil, 386-8, 393-4
crisis, 547
security, 386
Ombudsmen, 37-8
Open Polytechnic of New Zealand, The (TOPNZ), 216-7
Optometrists and opticians, 162
Organisation for Economic Co-operation and Development (OECD), 67
Orphans benefit, 146
Outdoor leisure activities, 275-6
Outlying islands, 1
Overseas,
cargo, 491
trade indexes, 495
Overseas aid, 62-5
Overseas balance of payments, 561-7
Overseas debt, 536-9, 566-7
Overseas exchange transactions, 518-9
Overseas students, 202, 215
Overseas trade,
External trade

P

Pacific countries, relations with, 57-8, 66, 482
Pacific Forum Line, 58
Pacific Island Affairs, Ministry of, 33, 141-2
Pacific Island Polynesian population, 96-7, 140-2
age distribution of, 96-7, 140
employment and training, 297
geographical distribution, 141
households and dwellings, 107-8
Pacific Islands Industrial Development Scheme (PIIDS), 58
Paper, 374
Parental leave, 307
Parks
forest, 336, 338
marine, 336, 338
national, 336-8
Parliament,
members of, 20-1
opposition, 16, 20-1
proceedings of, 17-8
salaries and allowances of members, 18-9
sessions of, 17-8
Parliamentary Service, 18
Parliamentary Commissioner for the Environment, 36
Parliamentary Library, 269
Parole, 235, 239
Partnerships, 454
Part-time work, 286, 287-8
Passports, 129
Patents and trade marks, 317-8
Paternity leave, 307
Patients, hospital, 178-82
PAYE tax, 526
Penal Institutions Division, 235-9
Pensions,
Benefits and pensions, Superannuation
Performing arts, 259, 260
Perinatal mortality, 175-6
Periodic detention, 235
Permits, building and construction, 424-6
Petroleum,
consumption, 386-8, 392-3
imports and refining, 393
processing and distribution, 392-3
prospecting and drilling, 392-3
Pharmaceutical benefits, 164
Pharmacists, 163
Physiotherapists, 162
Pigmeats, 358-9
Pigs, 342-3, 358-9
Pinus radiata, 369, 373, 376
Planning, 328-30
district, 330
environmental, 328-33
national, 328-9
permission for building, 423-6
regional, 330
Planning Tribunal, 224
Plants variety rights, 363
Plants,
Vegetation and wildlife
Plastics industry, 407
Podiatrists, 162
Police Complaints Authority, 241-2
Police, New Zealand, 33, 239-42
Political parties, 15-6, 24-6
Pollution,
air, 165-6, 334
water, 165-6, 332, 334, 433
Polynesians, see Pacific Island Polynesians
Population (see census of Population and Dwellings), 79
age distribution, 88-90, 91-3
change in, 84-91
ethnic groups in, 93-6
fertility of, 84-8
geographical distribution of, 81-4
growth of, 79, 97-9
of local government areas, 83-4
Maori,
marital status of, 113-6
Pacific Island Polynesians
of North and South Islands, 81
Pacific Island Polynesians
Polynesian,
Pacific Island Polynesians
projections of, 83-4
religious professions of, 123-4
rural, 81-2
sex ratio in, 91-3
urban, 81-2
Ports, 430, 432
Postal services, 255-7
Poultry and eggs, 359-60
Pre-school education and childcare, 197, 200, 202-3
Kohanga reo, 137, 200, 202-3
Preventive detention, 236
Prevailing Weekly Wage Rates Index, 302
Price indexes,
Capital Goods Price Index, 507-8
Consumers Price Index, 499-506
Export Prices Index, 496
Farming Inputs Price Index, 345
Import Prices Index, 496
Producers Price Index, 506-7
Terms of Trade Index, 497
Prices, 499
exports and imports, 495-6
housing, 418-9
international comparison, 503-4
retail trade, 504-6
Privacy Commissioner, 15
Primary schools, 202, 203, 207-8, 209
Prime Minister(s), 21
Department of Prime Minister and Cabinet, 33
salary and allowances, 18-9
Prisons and prisoners, 235-9
age and ethnicity, 237
classification and treatment, 238-9
institutions, 236
major offences, 237-8
numbers of prisoners, 236-7
offending history, 238
sentence length, 238
traffic offenders, 238
Privacy Act 1993, 15
Privacy Commissioner, 15
Privacy of information, 15
Private schools, 207-8, 209
Privy Council, Judicial Committee of, 221
Probation, 234-5
Problem Resolution Service, 531
Producers Price Index, 506-7
Production accounts, 555-6
Protected Natural Areas Programme, 339
Psychiatric hospitals, 180-2
deaths, 182
patients and diagnoses, 181, 182
Psychologists, 162
Public accounts, 521-3
Public broadcasting fee, 243
Public debt, 534-9
interest on, 538
maturity of, 538-9
per capita, 537
securities on issue, 517-8, 536, 538-9
transactions, 536-9
Public health, 165-77
Public Health Commissioner, 159
Public holidays, 306
Public lands
(Forest parks, Reserves,)
Crown land, 325-6
national parks, 336-8
Queen Elizabeth the Second National Trust, 339-40
walkways, 276, 339
Public service
Government departments, State sector
Public Trust Office, 33
Publishing,
books, 266-7
newspapers and magazines, 249
Pulp and paper, 374-5
Puni Kokiri, Te, 33, 135, 325, 420-1

Q

Qualifications Authority, New Zealand, 198, 217
Quarantine, 348, 374
Quarries and quarrying,
Mining
Quarterly Economic Survey of Manufacturing, 414
Quarterly Employment Survey, 285, 288, 298-9
Quarterly Survey of Retail Trade, 464-5
Queen Elizabeth II Arts Council, 260-1
Queen Elizabeth II National Trust, 339-40
Quest Rapuara (The Careers Service), 197, 295-6

R

Race relations and racial discrimination
(Ethnicity), 118)
Racing, 276
horse and greyhound, 276-7
taxation, 533
Radio, 246-8
Radiocommunications, 248-9
Radiologists, 163
Railways, 439-41
construction and engineering, 440-1
New Zealand Rail, 439-41
New Zealand Railways Corporation, 439
passenger services, 440
Rainfall, 5, 7
Raoul Island, 1
Rapu Mahi/Hanga Mahi programme, 137
Rates, local authority, 540
Real Disposable Income Indexes, 299-301
Receivership, 456-8
Recreation and sport, 271-7
Hillary Commission for Sport, Fitness and Leisure, 271-4
participation in, 273-4
Recreation reserves, 336, 338
Refugees, 97, 131
Regional councils, 39-40
migration between, 81-2
population of, 84
Regional Fish and Game Councils, 339
Regional health authorities, 159
Regional planning environmental, 330
Registered banks, 512-3
Rehabilitation, 172
after accidents, 167, 182-4
of war veterans, 146, 149
Religious professions of population, 123-4
Renewable energy, 398-9
Rental housing, 417, 418
Reparation, 234
Representation Commission, 23-4
Reproduction rates, 85-8, 94-5, 97-9
Research, scientific, 311-7
Foundation for Research, Science and Technology, 311-2
Ministry of Research, Science and Technology, 33, 311
Reserve Bank of New Zealand, 509-10
Reserves,
land, 336, 338
marine, 336, 338
Resource conservation,
Conservation of natural resources
Resource management, 328-36
Act 1991, 328-31, 399
Restaurants and hotels, 452-3, 463-6
Retail prices, 504-5
Retail trade, 463-6
credit sales, 465-6
shop trading hours, 452
Rivers, 2, 333
Roads, 441-3
expenditure on, 443
safety, 188, 445-6
speed limits, 446
taxes for, 533
Transit New Zealand, 441-2
Rocks, types of,
Geology
Ross Dependency, 1, 69
Royal commissions, 27
Royal New Zealand Air Force, 75-6
Royal New Zealand Navy, 74-5
Royal Society of New Zealand, 314-5
Rural education activities programmes (REAPs), 211-2
Rural Electrical Reticulation Council, 391
Rural population, 81-2
Russia, relations with, 61, 481

S

Safety, 191
fire, 193
occupational, 193-4
of ships, aircraft, cranes, 433
road, 188, 445-6
water, 188-9
Salaries,
Wages
Salt, 402
Satellite links, 252-3, 254
Savings institutions, 512-3
other financial institutions, 514
Scenic reserves, 336, 338
School Certificate, 203, 205-7
School Dental Service, 171-2
School Journal, The, 212-3
Schools,
boards of trustees, 198
correspondence, 209, 219
curriculum, 203-5
hostels, 210
primary, 202, 203, 207-8, 209
private, 207-8, 209
pupils of, numbers, 208-9, 210
secondary, 203-9
terms of, 202
transport to, 210
Science and scientific services
recent changes, 311-2
Scientific reserves, 338
Seafood trade, 381-3
Search and rescue operations, 72, 240
Secondary schools, 203-9
Securities Commission, 454-5
Securities, government, 517-8
Security Intelligence Service (SIS), 76-7
Seismic activity, 3-4
Sentencing,
community-based, 234
non-traffic, 230-2
traffic, 232-3
Serious Fraud Office, 34, 455
Share market, 455-6
Sheep, and sheep farming, 342, 343, 349-50, 354-6
Sheepmeats, 351-2
Shipping,
bulk, 432
coastal, 432
ferries, 432, 440
fishing vessels, 381
register of, 432
overseas, 431-2
services to, 432-3
Shipwrecks, 433
Shop trading hours, 452
Sickness benefits, 145
Sixth Form Certificate 205-7
Skiing, 275-6
Sky Television, 246
Small Business Tax Information Service, 531
Smoking, 170
Social Policy Agency, 155–6
Social Research and Development, New Zealand Institute for, 314
Social sciences, 314
Social services, 150
Social welfare, 143–57
benefits,
Benefits and pensions computing systems, 156
Department of, 34, 143–57
funding, 147
SOI
Southern Oscillation Index, Soil conservation, 332, 333
Soil types, 327–8
South and Central America, relations with, 59, 481–2
South Island, population of, 81
South Pacific Commission, 58
South Pacific countries, relations with, 57–8, 66, 482
South Pacific Forum, 58
South Pacific Regional Trade and Economic Co-operation Agreement (SPARTECA), 58
Southern Oscillation, 7–8
Southern Oscillation Index (SOI), 8
Soviet Union
(Russia, Commonwealth of Independent States), relations with, 61, 481)
Speaker of the House of Representatives, 16, 20
Special education, 197, 201, 210–1
Special purpose local authorities, 43–4
Special Tactics Group, 240
Sports, 273–5
Olympic and Commonwealth Games, 274–5
participation in, 273–4
Sport, Fitness and Leisure, Hillary Commission for, 271–4
Stagflation, 547
Stamp duty, 532
Stamp, postage, 256
Standard of living, international indicators, 112–3
Standards Council, 319
Standing Orders of the House of Representatives, 16
Starnet, 254
State forests, 369–71
State-owned enterprises, 35–6, 534–5
sales of, 535
transfer of land to, 322–4
State sector
policy changes, 29
reform, 27–9
State Services Commissioner, 29
Statistics, Department of, 34
Statistics New Zealand, 34
publications, 577
Statutes, 13–15, 17
Steelmaking, 407
Stewart Island, 1
Stillbirths, 175–6
Stock change, by production group, 557
Stock exchange, 455–6
market surveillance panel, 456
Storms, hail, 7
snow, 7
Strikes, 305, 308–10
Student Loans, 201, 216, 529
Students, allowances, 201, 216
Maori, 200, 203, 209
numbers, 208, 213, 215, 218
overseas, 202, 215
part-time, 208, 209
primary school, 202, 203, 207–8, 209
teachers' college, 199, 211
technical, 216–8
university, 201, 213–6
Sulphur, 402
Superannuation, 461–2, 529
Government Superannuation Fund, 32, 461–2
National Provident Fund, 33, 461–2
Supervision, 234
Survey and Land Information, Department of, 34, 321–2, 325
Surveys, hydrographic, 72
land, 321–2
Symphony Orchestra, New Zealand, 262

T

TAB (Totalisator Agency Board), 276–7
Tariff (customs), 469–70
Taupo Fishery Advisory Committee, 339
Taxation review authorities, 533
Taxes and taxation,
Customs tariff and revenue, 526–34
Average Tax Rates Index, 299–301
company income tax, 530
deductions, 526–7
estate duty, 531
excise duties, 470, 532–3
fringe benefit tax, 530
goods and services, 470, 531
on interest and dividends, 529–30
land tax, 531
personal income tax, 526
racing taxation, 533
retirement tax and national superannuation surcharge, 529
revenue from, 533–4
roads taxation, 533
stamp duty, 532
Teacher Registration Board, 198
Teachers and teaching, 199, 209–10, 211–3
registration of, 198
Teachers colleges,
Colleges of education
Technical education, 216–8
Telarc New Zealand, 318–9
Telecom Corporation of New Zealand, 251–2
Telecommunications, 251–4
Telegrams, 253
Telephone services, 252–4
Television, 245–6
Telex services, 253
Temperatures, 27
Tenancy, 417, 418
Tenancy Tribunal, 224, 422
Term poll, 27
Terms of Trade Index, 497
Territorial authorities, 40–3
finances, 539–41
population of, 83–4
Territories, New Zealand, Ross Dependency, 1, 69
Tokelau, 1, 67
Tertiary education funding, 201, 216
Textiles
(Wool), 408)
Timber and forest products, 374–7
exports of, 375–6
imports of, 375, 376
pulp and paper, 374–5
Timber industry, 407
Timber preservation, 374
Time, 10–11
Tokelau, 1, 67
Topdressing, 344, 438–9
TOPNZ (The Open Polytechnic of New Zealand), 216–7
Totalisator Agency Board (TAB), 276–7
Tourism, 278–82
accommodation, 280
Board, New Zealand, 34, 281–2
domestic, 281
facilities, 280
international, 280–1
Ministry of, 34, 279, 282
promotion, 60, 281–2
Tourism Facilities Development Grants Programme, 279
Town milk supply, 357
Town planning, 328, 330
Trade, domestic,
external,
External trade Trademarks, 318
TRADENZ (New Zealand Trade Development Board), 469
Trade practices, 452–3
Trade representatives overseas, 57, 60, 469
Trade routes, maritime, 431–2
Trade training, 216–8
apprentices, 294–5
technical education, 216–8
Trade unions, 303
Trading banks,
Registered banks
Trading legislation, 449, 452–3
Trading partners, major, 479
Traditional sites, protection of, 265, 329
Traffic, convictions and sentencing, 232–3
offences, 232, 238, 446–7
Training benefit, 146
Training, vocational,
(Trade training), 197, 216–9)
Transit New Zealand, 441–2
Transport, 429
air, 434–9
household, 109
Ministry of, 35, 185, 188, 429–30, 433, 434, 445–6
rail, 439–41
reform of industry, 429–30
road, 441–7
sea, 431–3
to work, 445
use by tourists, 280
Travel, domestic, 281
Treasury, The, 35
Treaties, defence agreements, 70–2
trade agreements, 57–60, 65
Treaty of Waitangi, 13, 134–5, 224, 324
Tribunals, 223–4
Disputes, 224
Employment, 223–4
Equal Opportunities, 224
Indecent publications, 263
Planning, 224
Residential tenancies, 224, 422
Waitangi, 135, 224
Tritec, 156
TV3, 245

U

Unemployment
ethnicity and age of, 292–3
growth of, 292
policies and programmes, 291–4, 296–7
school qualifications and, 292
Unions, of employers, 303
Unions, of workers, 303
Unitary authorities, 40
United Kingdom, trade with, 481, 488–90
United Nations Education, Scientific and Cultural Organisation (UNESCO), 64
United Nations, New Zealand membership of, 63–5
United States of America, relations with, 59, 70, 484–5
Universities, 201, 213–6
enrolments, 213, 215
extension programme, 218
graduates from, 213–4
scholarships and bursaries to, 205–6, 215
staff in, 215
students in, 215
Urban areas
population of, 82–4

V

Valuation New Zealand, 35, 326
Valuation of land, 326
Valuers, registration of, 326
Vegetation and wildlife, 8–10
Video, 259, 260
Video Recording Authority, 262–3
Video recordings, classification, 263
Videotex, 254
Visual arts, 259, 260
Vital statistics
(Births and birth rates, Deaths and death rates, Marriage), 87–8)
Viticulture, 364–5, 408
Volcanoes, 2–3
Volume indexes of external trade, 497–8
Voluntary welfare organisations, 167
Voting,
Elections

W

Wages, 298–303
minimum rates, 305
Prevailing Weekly Wage Rates Index, 302
Waitangi National Trust Board, 340
Waitangi, Treaty of, 13, 134–5, 324
Waitangi Tribunal, 135, 224
Waka Toi, Te, 260–1
Walkways, 276, 339
Warrant of Fitness, 445
War pensions and allowances, 149
Water and soil conservation, 332–3
Water pollution, 165–6, 332, 334, 433
Water supply, 332
fluoridation of, 172
irrigation, 332–3
WEA (New Zealand Workers Educational Association), 219
Weather, 4–8
Weights and measures, 572
Western Samoa, 57–8
Widows benefit, 145
Wild Animal Recovery Service Appeal Authority, 340
Wildlife,
Vegetation and wildlife
Wildlife reserves, 336, 338
Wine and winemaking, 364–5
Wine industry, 408
Women, 118–23
education, 120–1
health of, 121, 123, 168
in business, 120
in politics, 19
international liaison, 120
in the labour force, 121, 287
Ministry of Women's Affairs, 35, 118–20
Pacific Island, 120
Pornography, 120
ratio in population, 91–2
Runanga Kuia, 120
training and employment, 297
unpaid work, 121
Wood,
Timber and forest products
Wool, 354–6
exports, 356
International Wool Secretariat, 354
New Zealand Wool Board, 354–6
prices, 354, 355
production, 354
Workers' compensation, 182–5
Work stoppages, 305, 308–10
Working conditions
(Occupational safety and health), 305–7)
Working hours, 305
World Bank, 64, 65–6
World Health Organisation, 64, 173
Wrecks, 433

Y

Youth Affairs, Ministry of, 35
Youth court, 154–5
Youth justice, 153–5
Youth, programmes,
Community welfare services

Special articles 1994

A

Accounting, cash and accrual, 522
Accrual accounting, 522, 523
Ageing, 92
Aircraft accidents, 435
All about women, 122–3
Anau Ako Pasifika Project, 211
Anniversaries 1994, 306
AOS (Armed Offenders Squad), 240
Armed Offenders Squad
AOS
Arts and Crafts Institute, New Zealand Maori, 278
Asia 2000, 59
Awards, science, 313
Awhina Maatua—Parent support projects, 200

B

BBC World Service, 249
Births to unmarried women, 86

C

Cabinet (second Bolger ministry), 55
Cartoon Archive, New Zealand, 266
Cash accounting, 522
Central Institute of Technology
CIT
Changing times, 11
Child Support, 148
CIT (Central Institute of Technology), 217
Coal, 395
Corrections Operations Group, 234
Creative learning, 204
Criminal Justice Development Group, 234
Crown entities, 30–1
Crown reporting entity, 36
Customs tariffs, 546

D

Depression of the 1930s, 545
Disability Support Service, 185
Douglas fir, 371

E

Economic reforms, chronology of, 550
Education television
eTV
Election 1993, 48
Ethnic Affairs Services, 126
eTV, 244

F

Fairs, science, 319
Families in New Zealand, 101
Family, 109
International Year of the, 64
friendly workplaces (I), 28
friendly workplaces (II), 304
Fathering, 120
Fellows of the Royal Society of New Zealand
FRSNZ, Fieldays, 343
Fine Music Radio, 249
First past the post
FPP
Foreign Affairs, 68–9
FPP, MMP and, 14
FRSNZ (Fellows of the Royal Society of New Zealand), 315
Future population projections, 98

G

General Elections 1993, 48–55
Green business, 414

H

Health,
Maori, 165
mental, 183
Health Commission, Public, 166
HIA (Housing Industry Association), 422
Holidays 1994, 306
Honours, 46
Horses, Kaimanawa, 321
Housing Industry Association
HIA

I

Immigrants, 129
Import licensing, 546
Indigenous People, International Year of, 139
Insurance and Savings Ombudsman, 460
International radio, 249
International visitors, 281
International Year of Indigenous People, 139
International Year of the Family, 64

K

Kaikoura sponge, 380
Kaimanawa horses, 321
Keeping time, 10
Kiwi, 9
Kokako, 4

L

Language groups, Pacific Island, 141
Language needs, special, 201
Legally speaking, 225
Life expectancy, 89

M

Manufacturing, green, 414
Maori,
Arts and Crafts Institute, 278
health, 165
Language Year, 138
spoken in courts, 225
welfare, 149
Members of Parliament, 53–5
Mental health, 183
Merchandise imports, controlling, 546
Minerals, 399
Ministry of Foreign Affairs and Trade, 68–9
Mixed member proportional system see MMP MMP and FPP, 14
MPs, 53–5
Myrtles, 338

N

National Fieldays, 343
National Qualifications Framework, 208
NESB, (students with a non-English speaking background), 201
New Zealand Cartoon Archive, 266
New Zealand Maori Arts and Crafts Institute, 278
Non-English speaking background, students with a
NESB

O

Ohaaki, 397
Oral History Centre, 261
OSCAR (Out of School Care and Recreation), 198
Out of School Care and Recreation
OSCAR

P

Pacific Island language groups, 141
Parent support projects–Awhina Maatua, 200
Parents, sole, 85
Placing ourselves, 548
Plantation species, 371
Population projections, 98
Possums, 347
Public Health Commission, 166
Public welfare, 143

Q

Qualifications Framework, National, 208

R

Radiata pine, 371
Reforms, chronology of major, 550
Regional anniversaries 1994, 306
Reporting entity, the, 36
Resourcement Management and the tangata whenua, 325
Ringing the changes, 119
Royal Society Fellows, 315

S

Science,
fairs, 319
awards, 313
Senior Citizens Unit, 156
Sinclair, Keith, 47
Sole parents, 85
Special language needs, 201
Sport 1993, 283
Sustainable development, 329

T

Tangata whenua and the Resource Management Act, 325
Time,
keeping, 10
changing, 11
Time Service, New Zealand, 10
TuiaNet, 268

U

Unmarried women, births to, 86

V

Visitors, international, 281

W

Welfare, public, 143
Whanau, te, 134
Why use accrual accounting?, 523
Wild horses, 321
Wind turbine, 398
Women, all about, 122–3
Workbridge, 296

Y

Yellow slimy, 380