New Zealand Official Yearbook 1998

Te Pukapuka Houanga Whaimana o Aotearoa

Cover

Maureen Metcalfe.

Statistics New Zealand

Statistics New Zealand operates an information service. In answer to a letter, visit, or telephone call, information analysts can provide statistical information, or tell you more about the department's other services, including access to statistics on the INFOS computer database and the SNZ Website: www.stats.govt.nz.

70 Symonds Street, AUCKLAND

Private Bag 92003, Telephone 0-9-357,2100, Facsimile 0-9-379,0859

Aorangi House, 85 Molesworth Street, WELLINGTON

PO Box 2922, Telephone 0-4-495,4600, Facsimile 0-4-495 4610

Winchester House, 64 Kilmore Street, CHRISTCHURCH Private Bag 4741, Telephone 0-3-374,8700, Facsimile 0-3-374 8864

Te Hakituatahi o Aotearoa The first flag of New Zealand 1835

For a detailed history of Te Hakituatahi o Aotearoa, see section 3.5: National emblems and anthems.

Heraldic description: on a white field, a red St George's Cross; in the upper canton, next to the staff on a blue field, a smaller St George's Cross in red, severed from the blue by a fimbriation of black, half the width of the red and in the centre of each blue quarter a white eight-point star.

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 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.

The coat of arms was revised in 1956 following further constitutional changes when 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’.

New Zealand Official Yearbook 1998

ISSN 0078,0170

ISBN 1-86956-223-2

Copyright © Statistics New Zealand 1998.

Published in 1998 by GP Publications, PO Box 12052, Thorndon, Wellington.

Printed by GP Print, Wellington, New Zealand.


Table of Contents

List of Tables

Preface

Although the environment (by definition) has always been with us and around us, it is only in recent years that concern over humanity's impact on our planet has become widespread. We are all now urged to be “green”, but to be able to respond to this call—on which the future of Earth may depend—we need to be well informed about the state of the environment.

Statistics New Zealand gathers information over a wide range of New Zealand life and behaviour, and in this 101st edition of the Yearbook we have brought together information about the New Zealand environment. The department publishes the Directory of environmental databases and collections for more specialised needs. The photographs have been chosen to reflect interactions with the environment where figures and words alone do not give the whole picture.

As it is the first after the census, this Yearbook also contains, in different chapters, much material from the 1996 Census of Population and Dwellings. More detailed information can be found in the range of census publications now available from Statistics New Zealand, and is also accessible on our Internet website.

Bringing together the wide range of facts and information contained in each New Zealand Official Yearbook relies on the time, effort and goodwill of, literally, hundreds of contributors in organisations around New Zealand. 1 thank all of them for being part of this comprehensive, one-volume publication about our country and its people which Statistics New Zealand is proud to have published regularly for over a century.

I am delighted that this Yearbook can also complement the comprehensive report The state of New Zealand's environment published by the Ministry of the Environment last year.

LEN COOK
Government Statistician
June 1998

Acknowledgements

The 1998 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. The department wishes to record its thanks to them and to the following.

Editor: David Zwartz

Editorial assistance: Cecily McNeill, Deborah Willett, Kirsten Wong.

Maps and diagrams: Peter McGrath.

Photograph editors: Louise Ormsby, Vicki Robson.

Proofreading: Jane Hunt, Marie Bachler.

Photographs: Individual photographs are credited separately.

How to use the 1998 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 included to familiarise you with the book.

What is the Yearbook?

The New Zealand Official Yearbook 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 contains the most currently available statistics for the 1998 year on particular topics. It also tells its readers where 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 Contents (overleaf), which lists chapter headings and major sections within chapters. In approaching the book this way it is worth bearing in mind that the 28 chapters follow a ‘logical’ progression. The first few chapters describe the physical setting as well as New Zealand's history, system of government and international relations. A description of its people comes next, followed by social framework and institutions. The second section of the Yearbook begins with an overview of New Zealand's work force and moves to a discussion of the nation in broad economic terms. Then follow descriptions of each of the constituent sectors, ending with a chapter on public sector finances.

Throughout the book cross references are made, usually by reference to numbered sections within chapters (which appear in the headline 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. 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 Yearbook publication.

For this edition the figures published are either the latest available at 1 December 1997 or some collected early in 1998.

Tables

The source of a particular table is noted at the foot of the table. 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.

A glossary of statistical terms used is given at the back of the book.

Liability

Statistics New Zealand has made every effort to obtain, analyse and edit the information and statistics used in the Yearbook. However, Statistics New Zealand gives no warranty that the information or data supplied contains no errors, and shall not be liable for any loss or damage suffered consequent on the use, directly or indirectly, of the material contained in the Yearbook.

Colophon

Chapter 1. Geography

The cracked earth of an empty dam in Marlborough during the 1997 drought.

1.1 Physical features

New Zealand lies in the south-west Pacific Ocean and comprises two main and a number of smaller islands. Their combined area of 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 160° 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 4.

Table 1.1. LAND AREA OF NEW ZEALAND1

Land areaSize

1 Includes all internal waterways (lakes and rivers).

2 Includes all offshore islands 20 sq km or larger, except those listed separately.

Source: Land Information New Zealand

 sq km
North Island113,729
South Island150,437
Offshore islands21,065
Stewart Island1,680
Chatham Islands963
Raoul Island34
Campbell Island113
        Total268,021

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 fewer 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 northwest. 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 km), Murchison (13 km), Mueller (13 km), Godley (13 km) and the Hooker (11 km), and, on the west, the Fox (15 km) and the Franz Josef (13 km).

Table 1.2. PRINCIPAL MOUNTAINS

Mountain or peakElevation

1Since 1986 both the Maori and European names of this mountain have had official recognition.

2Peaks over 3.000 metres.

Source: Land Information New Zealand

North Island—
    Ruapehu2,797
    Taranaki or Egmont12,518
    Ngauruhoe2,287
    Tongariro1,967
South Island2
    Cook3,754
    Tasman3,497
    Dampier3,440
    Silberhorn3,300
    Hicks (St David's Dome)3,198
    Lendenfeldt3,194
    Torres3,163
    Teichelmann3,160
    Sefton3,157
    Malte Brun3,155
    Haast3,138
    Elie de Beaumont3,117
    Douglas3,085
    La Perouse3,079
    Heidinger3,066
    Minarets3,055
    Aspiring3,033
    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 hydro-electric schemes.

Table 1.3. PRINCIPAL RIVERS1

RiverLength

1Over 150 kilometres in length from the mouth to the farthest point in the river system irrespective of name, including estimated courses through lakes.

Source: Land Information New Zealand

 km
North Island:
Flowing into the Pacific Ocean-
    Rangitaiki193
    Waihou175
    Mohaka172
    Ngaruroro154
Flowing into the Tasman Sea—
    Waikato425
    Whanganui290
    Rangitikel241
    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 LAKES1

LakeMaximum depthArea

1Over 20 square kilometres in area.

Source: Land Information New Zealand

 msq km
North Island—
Taupo163606
Rotorua4580
Wairarapa380
Waikaremoana24854
Tarawera8736
Rotoiti9434
South Island—
Te Anau417344
Wakatipu380293
Wanaka311193
Ellesmere2181
Pukaki70169
Manapouri44142
Hawea384141
Tekapo12088
Benmore (artificial)12075
Hauroko46271
Ohau12961
Poteriteriuncharted47
Brunner10939
Coleridge20036
Monowai16131
Aviemore (artificial)6229
Dunstan (artificial)uncharted27
Rotoroa15223
Mahinerangi (artificial)3121

1.2 Geology and soils

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

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

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.

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.

NEW ZEALAND VELOCITY MAP
The moving plates

Ivan Taurua from Te Whanau o Waipareira Trust is one of many volunteers helping plant hardy grasses at Bethelts Beach, to protect its black sands from erosion. The project is funded by Waitakere City Council.

Using GPS (global positioning systems) satellite surveying. Institute of Geological and Nuclear Sciences scientists have been able to measure the distance between any two points in New Zealand to within a few millimetres. By repeating these measurements over several years they can map the amount of movement as the New Zealand landmass shifts along the boundary between the Australian and Pacific tectonic plates.

The velocity map shows the amount of strain building up, particularly beneath the Southern Alps east of the Alpine Fault. The information in strain rate maps, together with other geological research, is expected to produce more accurate assessments of earthquake hazards in New Zealand.

Weedbusters of Little Barrier, these conservation workers are eliminating every weed they see in a project, financed by the government Green Package, to eradicate the South African climbing asparagus vine.

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, Ngauruhoe, 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.

Principal earthquakes in 1997. It was another quiet year for earthquakes throughout New Zealand in 1997, the second successive year in which we have had no large damaging earthquake on land. On average we get one such event each year, but since earthquake occurrence is highly variable, in some years we get more, while other years are quiet. In 1997 most activity was concentrated around the middle of the country, and we also experienced gentle shaking from very large earthquakes well to the north of the New Zealand.

Wellington was shaken several times by a swarm of earthquakes near The Brothers, just off the Marlborough Sounds, in June. The largest of these was magnitude 5.2, and was felt from the northern South Island to Taranaki. In all there were seven events larger than magnitude 3.5 over a period of two weeks. This swarm was located near to a swarm that occurred in 1950, when the largest event was magnitude 5.7—sufficient to cause minor damage in Wellington.

Another swarm near Seddon in October, while somewhat smaller than The Brothers swarm, with a maximum magnitude 4.4, was very shallow and caused damage to the contents of nearby houses. We do not understand exactly why earthquakes sometimes occur in swarms with no clear mainshock, as opposed to a clear mainshock followed by aftershocks. One reason may be that the fault that is slipping is rough, and so it breaks in a series of smaller earthquakes. The pressure of fluids within the earth is also thought to play a role.

A magnitude 5.3 event near Cape Turnagain off the east coast of the North Island on 8 November shook goods off shelves in Waipawa.

By far the largest earthquakes affecting the country during the year were located well to the north of New Zealand, in the Tonga-Kermadec region. This is one of the world's most active zones of deep earthquakes, with large events every year. On 26 May, a 450 km-deep magnitude 7.6 earthquake occurred near the southern Kermadec Islands. This was felt throughout the country from Auckland to Dunedin, but because of its depth and distance from us, the shaking was quite minor. In the following three days six other felt earthquakes occurred over the length of the country, perhaps triggered by the large event to the north.

On 21 September another large earthquake occurred to the north of the country. This event had a magnitude of 6.9, was shallow, and was located near to Raoul Island, where it caused a rockfall and damaged a water tank.

Finally, on 14 October, a 166 km deep magnitude 7.1 earthquake occurred 820 km north of Raoul Island. This was felt in Wellington over 2,200 km away.

Earthquake risk. The Earthquake Commission engaged Works Consultancy Services (WCS) to study the results of the worst foreseeable disaster that could reasonably be anticipated within a generation. WCS confirmed that this event was a 7.5 Richter scale earthquake along the Wellington fault line within the city limits. It has a probability of occurring within the next 50 years of between 8 and 11 percent, and would affect 150,000 residential properties from Palmerston North to Nelson as well as infrastructure (roads, bridges and services).

The IGNS Seismological Observatory is part of a global earthquake data exchange network. IGNS routinely reports all arrival times of earthquake waves from New Zealand and elsewhere in the world, and the locations it calculates for regional earthquakes. This information is sent to the International Seismological Centre in England and the National Earthquake Information Centre in Colorado, USA. IGNS receives from the US centre by Internet, within an hour or two, the preliminary locations of large New Zealand earthquakes.

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.

  • 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 southwards 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, occasionally 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 fohn 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 in 1997

1997 was another year with extreme climate events in New Zealand, bringing record low rainfall in parts of Buller, Nelson and Marlborough, and very dry conditions in Marlborough, south Canterbury and Manawatu. The year ended with extremely dry conditions and agricultural drought in Marlborough, and parts of Canterbury and Hawke's Bay. New Zealand had a sunny year overall, especially over central New Zealand but it was cool.

A mix of La Niña and El Niño patterns was responsible for several of the extreme climate events with new records of rainfall and temperature. The tail end of the La Niña pattern caused four tropical cyclones to affect the New Zealand area from January to March. There were many flood-producing heavy rainfall events and as the year progressed New Zealand had an Indian summer.

The weak La Niña climate pattern, which waned in the late summer of 1996-97, was replaced by a very strong El Niño climate pattern which strengthened during winter and persisted for the remainder of the year. This pattern originated in the tropical eastern Pacific Ocean, where a pool of very much warmer-than-normal ocean water developed.

The El Niño influence on New Zealand's climate became most noticeable from winter onwards, with many more anticyclones over Victoria and Bass Strait. It produced more westerlies over southern New Zealand and to the south, and more southerlies over the rest of the South Island and central New Zealand. This produced the dry patterns in the north of the South Island and higher rainfall in the south of the South Island. It was also responsible for the cooler conditions overall, and the rather sunny year.

Rainfall. 1997 was the driest year since records began in 1932 in the Awatere Valley (Marlborough), and since the 1940s at Nelson and Westport Airports. Other extremely dry locations occurred in Marlborough and south Canterbury. These areas recorded only 60 to 75 percent of normal rainfall.

It was particularly wet in Coromandel and Hawke's Bay. with rainfall ranging from 120 to 140 percent of normal. It was also wet in remaining eastern North Island regions, as well as Southland, Fiordland and much of Otago. Most other regions recorded between 75 and 100 percent of normal rainfall.

Of the four main centres, Wellington was the wettest with 1,156 mm and Christchurch the driest with 571 mm. Auckland amassed 1,149 mm and Dunedin 840 mm. Clyde was the driest town NIWA measured in New Zealand, with only 392 mm. Milford Sound was the wettest populated location measuring 6,655 mm.

Table 1.6. LOCATIONS WITH UNUSUALLY LOW ANNUAL RAINFALL IN 1997

LocationRainfall (mm)Percent of averageRecords beganComments
Nelson, Appleby6336419322nd lowest
Nelson Airport595591941Lowest
Blenheim Airport5427419413rd lowest
Upcot, Awatere Valley523691932Lowest
Westport Airport1,372621945Lowest

Temperatures. It was cool overall, particularly in the south and east of the North Island and eastern regions of the South Island, from Canterbury to Southland, where mean temperatures were mostly between 0.5 and 1.0°C below average. Throughout the remainder of the country mean temperatures were average to 0.4°C below average. The warmest centre was Whangarei, with a mean temperature for 1997 of 15.6°C.

The national average temperature, calculated by NIWA, was 12.3°C, which was 0.3°C below normal. This compares with a 1996 national average temperature of 12.5°C.

The highest extreme temperature for the year was 34.1°C recorded at Timaru Airport in hot north westerlies on 15 December 1997. The lowest temperature for the year was minus 8.8°C, measured at Lauder in Central Otago on the morning of 16 July 1997.

WEATHER

Competitors scamper for cover as the skies open on the 23 March 1997 Round the Bays Run, Auckland.

It was a very cold September with the lowest mean monthly temperatures on record occurring at Waimate with 6.1°C. 3.3°C below normal, and the Chatham Islands. 7.7°C, 1.6°C below normal.

Sunshine. 1997 had much more sunshine than normal in the north of the South Island, especially Buller where hours were almost 120 percent of normal, as well as Nelson and Westland, where totals were about 110 percent of normal. It was also sunnier than average in western Bay of Plenty. Hawke's Bay, Wairarapa, Wellington, Marlborough, Canterbury. Westland and Southland, where totals were at least 105 percent of normal. Most other regions experienced slightly-above-average sunshine.

Nelson was the sunniest centre in 1997, recording 2,680 hours. This has only been exceeded twice in NIWA's official historical records; 2,685 hours recorded at Blenheim in 1972 and the extreme 2,711 hours recorded at Nelson in 1931. Nelson began recording sunshine hours in 1930.

Blenheim was the second sunniest centre in 1997 with 2.613 hours, followed by Tauranga and Whakatane, both with 2,415 hours. Blenheim set a new New Zealand record for November with its sunniest (327 hours) since records began in 1930. Of the four main centres, Wellington was the sunniest with 2.168 hours and then Christchurch with 2,156 hours.

Table 1.7. SUNSHINE HOURS 1997

Departure CityTotal hoursNormal (hours)from normal (hours)Comments
Auckland2,0532019+ 34Near average
Wellington2,1682,050+118Much sunnier
Christchurch2,1562,057+99Sunnier
Dunedin1,6431,598+ 45Near average

Indian summer. New Zealand had a rare Indian summer with warm days, light winds, hardly any rain, and plenty of sunshine, from the last week of April through the third week of May. It was extremely dry in the southwest of the North Island. Coupled with the settled weather and warm temperatures, there was little wind anywhere in New Zealand. Well above normal temperatures occurred, with record high May mean temperatures in the south west.

Floods and storms. There were at least 10 flood-producing rainfall events during 1997, some of which were severe. On 5 April in Fiordland heavy rainfall occurred in a 14-hour storm, with 331 mm recorded at Dumpling Hut (on the Milford Track) and on the same day. 100 mm in parts of Southland. Torrential rainfall occurred in a 6-hour storm on 24 May with 142 mm recorded at Beachlands, Auckland. The same weather system also brought high rainfall to Henderson (84 mm), Auckland Airport (81 mm), and Mt Albert (72 mm).

Heavy rainfall resulted in slips, severe flooding, and a state of emergency in the Wairoa region on 3 June. Unofficial reports of rainfall totalling 400 mm occurring within 24 hours (and 100 mm in 2 hours), were received from the area. Many stations in Northland, Auckland, Coromandel, eastern Bay of Plenty, Gisborne and Hawke's Bay measured rainfall totals ranging from 100 to 250 mm in the 48 hours to 9 am 3 June, and many Northland farms were affected by flooding. On 18 June heavy rainfall occurred in parts of Northland, Coromandel, Bay of Plenty, Wellington. Nelson. Marlborough. Golden Bay and Buller, with totals up to 100 mm to 9 am. Northland again experienced heavy rainfall on 30 June. The rain moved south to affect the Bay of Islands, and Coromandel Peninsula. with many sites recording at least 100 mm during the event. Purerua, in the Bay of Islands, measured 134 mm during the storm, of which 50 mm occurred within an hour.

From 1-3 July heavy rainfall in Coromandel, Gisborne, Hawke's Bay, and eastern Bay of Plenty (with 50 to 80 mm in many places) resulted in slips blocking the Napier to Gisborne railway line, and minor flooding on roads north of Wairoa and low lying rural areas. Heavy rainfall on 9 September in the far north, resulted in floods and slips, especially between Doubtless Bay and Whangaroa/Kaeo. Torrential rainfall and flooding, associated with a convergence zone over Coromandel, occurred in Whitianga on 24 September. Rainfall at Whitianga totalled 60 mm in the hour to 2 pm 24 September, 93 mm in the 2 hours to 2 pm 24 September, 193 mm in the 24 hours to 9 am 25 September, and 291 mm in the 48 hours to 9 am 25 September.

High rainfall in the Wellington region on 4 October resulted in the evacuation of about 50 people in Lower Hutt, and flooding of more than 60 homes along Hutt riverside areas. Isolated land slips closed some Wellington roads and SHI. Rainfalls of over 300 mm were recorded in the Tararuas, more than 200 mm in the Hutt catchment and about 90 mm was recorded in Lower Hutt in the 24 hours to noon on 5 October.

The year ended with heavy rain on the West Coast on 15-16 December with totals up to 370 mm recorded in 48 hours in the Greymouth/Hokitika catchment area. Flooding occurred in Greymouth.

Cyclones. Four cyclones of tropical origin occurred in the first three months of 1997. ‘Drena’ tracked to the west of New Zealand, later crossing the north of the South Island on 10 January. It produced gale northeasterlies in Northland and Auckland, with gusts to 124 km/h recorded at Mokohinau Island. The winds damaged power lines and ripped some roofs off houses. High tides and storm surges caused flooding of homes in Thames. High rainfall also occurred from Kaikoura to coastal Otago.

SOUTHERN OSCILLATION INDEX
Air pressure recordings from Tahiti and Darwin

Volunteers from Envirosmart in Whangamata build up a wall of sandbags to stem floodwaters from Cyclone Drena, the second tropical storm hit the Coromandel in a fortnight in January 1997.

The remains of tropical cyclone ‘Harold’ affected northern New Zealand at the end of February.

A depression of subtropical origin, ‘Nameless’, affected Northland, Auckland and Coromandel, with warm humid northeasterly conditions. Heavy rain combined with high tides resulted in flooding in Whangarei. Rainfall totalling 106 mm occurred in 24 hours, with 46 mm in a one-hour period. Another ex-tropical cyclone, ‘Gavin’, produced high seas in Northland, the Coromandel and Hicks Bay areas over the night of 11/12 March, with about 150 mm of rainfall in the Gisborne ranges. There was extensive flooding in the Motu area and 109 mm of rain caused surface flooding at Gisborne Airport. The cyclone produced high winds, gusting to 130km/h near East Cape (two houses in Hicks Bay lost roofs), and 100 km/h in very exposed parts of Auckland.

Snowfalls. North Canterbury experienced its first significant snowfall of the winter on 18 June with snow to sea level, and falls to l m deep in some inland areas (i.e. Arthurs Pass). Freezing fog blocked out much of the sun in much of Central Otago from 1-10 July, with extensive hoarfrost, making the region very picturesque. A cold snap on 2 August led to snowfall in high country areas, with road closures. Snow also fell to sea level in Southland. Cold southerlies continued through 5 August, with swells up to 6m and high winds through Cook Strait. On 14 August snow fell to low levels in Southland, with thunderstorms and heavy hail in Invercargill. Snow fell to sea level in Canterbury and Otago, settling in Christchurch on 21 August. The same storm moved northward, bringing significant snowfall to high country areas. Cold south-westerlies brought snowfall to northern Southland, south Otago, inland Canterbury and the North Island's Desert Road on 11 November.

Hailstorms. Severe hailstorms struck Hawke's Bay on 22 March, destroying several million dollars worth of fruit in up to 200 orchards. The hail resembled jagged 20 cent pieces or arrowheads. A notable electrical and hail storm occurred over Wellington during the early morning of 14 July resulting in a domestic terminal at the airport being flooded by melting hail.

1.4 Wildlife and vegetation

The islands of New Zealand separated from their nearest neighbours over 80 million years ago. Some of the original inhabitants endured times of turbulent change and violent upheaval, evolving and adapting to become part of a unique natural biota (or region). Other species died out (either nationally or regionally), unable to compete or survive environmental disturbances such as ice ages. For example, coconut palms were once found in New Zealand, and kauri, now confined to the north of the North Island, used to grow as far south as Canterbury. Over the years the earliest inhabitants were joined by other plants and animals carried across the oceans by wind and current.

This pre-human community was notable for the absence of snakes, land mammals (save three species of bat) and many of the flowering plant families. Whole orders and families are endemic (found only in New Zealand): tuatara, moa and kiwi, all of the native lizards, and all the native earthworms (nearly 200 species) to name just a few. Many remarkable plants, insects and birds evolved to fill the ecological niches normally occupied by mammals. Others diversified to fill the new territories created by sea-level fluctuations and land uplift. With no mammalian predators on the ground but avian predators everywhere, flightlessness was not a handicap nor was greater size. Moa (11 species, some up to 3 metres tall) became extinct in pre-European times, but many other large flightless birds still remain including kiwi, the nocturnal kakapo (the only flightless parrot in the world), and weka (of the rail family). Flightless insects are numerous including many large beetles and 70 or so endemic species of the cricket-like weta.

The Department of Conservation has a ten-year Kakapo Recovery Plan to establish at least one viable, self-sustaining, unmanaged population of kakapo. There is now a population of over 50, including 20 females, living on Codfish Island, off Stewart Island. In 1997, for the first time in five years, the population increased. Kakapo chick “Tiwai" showed good development between 22 days old (top), in the sieve used for retrieving and replacing the chick into the nest after weighing, and 82 days old, weighing 1.93 kg (April to June 1997).

Half a dozen Northland DOC volunteers working to save a 20,000 year old wetland near Whangarei. The project was funded with a $5,000 grant from the Pacific Development and Conservation Trust, set up with compensation funds from the French government after the bombing of Greenpeace's Rainbow Warrior.

Manga, the first of two North Island weka chicks produced as part of a Royal Forest and Bird Protection Society breeding programme at a Manawatu tourist park.

New Zealand has the most diverse seabird fauna of any country (87 species). Almost half of all the native bird species depend on the ocean for food—the feeding zones of some extending as far south as the Antarctic continent. The extensive coastline and many islands offer a huge variety of habitat, from estuary and mud-flat to rocky cliffs and boulder bank. The ocean itself is marvellously rich—there are about 400 different marine fish resident in the waters around New Zealand as well as various species of seal, dolphins and porpoises. Thirty-two species of whale have been recorded and three of the largest (sperm, humpback and right) regularly migrate here in spring and autumn.

The most widespread and complex type of forest in New Zealand is a podocarp (conifer) broadleaf association. It is generally found at lower altitude and is characterised by the variety of species, a stratified canopy and an abundance of vines and epiphytic plants. Beech and kauri forests, in contrast, are much simpler in structure. New Zealand's beech species have close relatives in Australia and South America and the five different taxa here have exploited habitats from valley floor to mountain tops. Kauri, true forest giants, dominate only in the warmer climes to the north.

Some of the most specialised of plants are those occupying the alpine zone. A remarkable 25 percent of all New Zealand's plants can be found above the treeline. Ninety-three percent of all the alpine plants are endemic (compared with 80 percent for the rest of the higher plants). Snow tussock herb-fields are one of the most distinctive elements in this cold, windswept environment. Remarkably long-lived, larger specimens may be several centuries old. Like beech trees they seed infrequently but in profusion.

Table 1.8. SELECTED GROUPS OF NATIVE AND INTRODUCED SPECIES

GroupNumber of speciesPercentage endemic1
IntroducedNative

1 Native species not found anywhere else.

2 Estimated.

Source: Department of Conservation

Marine algae32900243
Bryophytes—
    mosses851621
    liverworts525252..
Ferns and allies2618946
Conifers2820100
Flowering plants1,84221,81384
Earthworms40178100
Land snals/slugs12520299
Spiders/harvestmen602,500299
Insects1,1009,460290
Freshwater fish2322785
Amphibia372100
Reptiles—
    land362298
    marine..6..
Birds—
    land/freshwater418454
    marine08720
Mammals—
    land333100
    marine1346

A definitive feature of New Zealand's land-based plants and animals is their degree of specialisation and narrow habitat requirements (e.g. takahe/tussock grasslands; blue duck/fast flowing rivers and streams), and their evolution in the absence of mammalian predators (birds) or browsers (plants). This specialisation, and the adaptations which make New Zealand's wildlife so unique, render them extremely vulnerable to introduced predators (such as rats and cats) and competitors (such as deer and possums) and loss of habitat.

Introduced vegetation and wildlife

The arrival of people in Aotearoa/New Zealand heralded times of rapid change. The introduction (intentionally or accidentally) of exotic plants and animals and the modification of habitat radically affected populations of native species. In the pre-1800 period following the arrival and expansion of Mäori, forest cover was reduced and some 34 species became extinct including moa, the adzebill and the flightless goose. In the much shorter post-1800 period of European settlement the area of forest was further reduced to around 25 percent of the land, 9 more birds became extinct and many more are threatened. Many new species were introduced (since 1840 over 80 species of mammal, bird and fish and more than 1,800 plant species) in many places totally changing the landscape and ecology.

1.5 Time zone

One uniform time is kept throughout mainland New Zealand. This is the time 12 hours ahead of Coordinated Universal Time (UTC), and is named New Zealand Standard Time (NZST). It is an atomic standard maintained by the Measurement Standards Laboratory, a part of the Crown Research Institute, Industrial Research Limited. One hour of daylight saving, named New Zealand Daylight Time (NZDT), which is 13 hours ahead of 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.

Contributors

  • 1.1 Land Information New Zealand, NIWA.

  • 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 Industrial Research Limited.

Special articles

Institute of Geological and Nuclear Sciences (IGNS); Brad Scott, IGNS, Taupo; MetService Ltd: Steve Wood, NIWA, Lauder; NIWA; Department of Conservation.

Further information

Archeology

Trotter. M and McCulloch, B, 1996 Digging up the past: New Zealand's archaeological history. Viking.

Climate

Johnson, K F 1986 Bibliography of New Zealand Meteorological Service publications 1892-1985. New Zealand Meteorological Service.

Sturman, A and Tapper, N, 1996 The weather and climate of Australia and New Zealand. Oxford University Press.

The National Institute of Water and Atmospheric Research (Environmental Data Division) operates an extensive climatological database and publishes the Monthly Climate Digest, as well as regional climatologies, maps and other publications.

Geography

Wards, I, 1976 New Zealand Atlas. Government Printer.

Topographical maps of the whole country can be obtained from Terralink Ltd (the Map Centre, Upper Hutt) and retailers around New Zealand.

Geology

Aitken, J J, Lowry M A, 1995 More Earthquakes Explained. Institute of Geological and Nuclear Sciences.

Aitken, J J, 1996 Plate tectonics for curious Kiwis. Institute of Geological and Nuclear Sciences.

Brazier, R, Keyes, I, Stevens, G 1990 The great New Zealand fossil book: Pictures of ancient life in an evolving land. Institute of Geological and Nuclear Sciences.

Forsyth, P J, Aitken, J J, 1995 New Zealand minerals and rocks for beginners. Institute of Geological and Nuclear Sciences.

Gregory, J 1988 Ruamoko's heritage: Volcanoes of New Zealand (video and kit) Institute of Geological and Nuclear Sciences.

Thompson, B, Brathwaite, B, Christie, T 1995 Mineral wealth of New Zealand. Institute of Geological and Nuclear Sciences.

Precious land: Protecting New Zealand's landforms and geological features. Institute of Geological and Nuclear Sciences.

The Institute of Geological and Nuclear Sciences publishes a wide range of geological and geophysical maps covering all New Zealand, plus maps of particular areas, and many bulletins, reports, and popular guidebooks and handbooks.

Vegetation and wildlife

Bishop, N and Gaskin, C 1992 Natural history of New Zealand. Hodder and Stoughton.

Dawson, J 1988 Forest vines to snow tussocks: The story of New Zealand plants. Victoria University Press.

Heather, B D and Robertson, H A 1996 The field guide to the birds of New Zealand. Viking.

King, C M 1984 Immigrant killers. Oxford University Press.

Meads, M 1990 Forgotten fauna. DSIR.

Molloy, L and Cubitt, G 1994 Wild New Zealand: The wild landscapes and wildlife of New Zealand. New Holland.

Salmon, J T 1980 The native trees of New Zealand. Reed.

Salmon, J T 1992 A field guide to the alpine plants of New Zealand. Godwit.

Chapter 2. History

Matin Rata's coffin is carried by members of his tribe up the steep hill to its final resting place at Te Hapua Urupa, overlooking Parengarenga Harbour, July 1997.

2.1 Chronology 1997

January. Cyclone Drena brings violent weather to the top of the North Island. Launch of Zespri, the brand name for New Zealand Kiwifruit.

February. Funding for Aotearoa Television Network, the first Maori television network, is not renewed following allegations of irregularities and unusual spending by directors. Stephen Anderson kills 6 and injures 6 at Raurimu. A Wanganui Court rules that, under the Treaty of Waitangi, Maori do not need a licence to fish trout within tribal areas; the finding is appealed. The unfinished Opuha Dam near Fairlie collapses, causing extensive damage downstream.

March. Figures from the 1996 Census show that the national population has risen 7 percent to 3.6 million since 1991. The 150-year-old America's Cup is damaged in a sledgehammer attack by a Maori activist. The government announces plans to introduce a “work test" for beneficiaries and the unemployed. Alleged assault by Deputy Prime Minister Winston Peters on MP John Banks in a Parliamentary corridor. Navy sexual harassment policy questioned after a complaint is lodged with the Human Rights Commission by a female naval rating.

April. Chinese scientists leaving through Auckland airport are asked to surrender budwood of the new NZ apple variety Pacific Rose. Thumbprint logo of Te Papa—Our Place is released amongst controversy about its high cost.

May. The Serious Fraud Office investigates after ACC chief Gavin Robins resigns; he is later charged with fraud. A petition of 197,000 signatures opposes the demolition of Broadcasting House in Wellington. The Auckland Blues again win the rugby Super 12 final. Parliament's Privileges Committee finds insufficient evidence to show that the assault on MP John Banks by Deputy Prime Minister Winston Peters amounted to contempt of Parliament.

June. MP Tukoroirangi Morgan offers his resignation after attempting to sell an exclusive interview; it is not accepted. TVNZ announces the closure of its regional television network, Horizon Pacific. Urewera Triptych by Colin McCahon is stolen from the Aniwaniwa Visitors' Centre at Lake Waikaremoana. TV4 begins daily broadcasts. Customs Service cracks down on imported Japanese used cars following long-standing claims of large-scale odometer fraud.

July. The Spirit of Adventure sail training ship begins her last voyage. MTV broadcasts for the first time in New Zealand. Farmer John Bolton-Riley makes first flight across the Tasman Sea in a microlight aircraft, from Feilding to Coffs Harbour. The Ministry of Agriculture and Fisheries rejects the use of imported calicivirus (RCD) for biological rabbit control. Jessie Munro's The Story of Suzanne Aubert is named Montana Book of the Year. Opposing Bougainville groups come to Burnham Army camp for peace talks hosted by New Zealand. Treaty of Waitangi Fisheries Commission announces how it proposes to allocate fisheries assets, causing deep disagreements and legal action.

August. Auckland's Skytower is opened. Beatrice Faumuina wins gold for discus at the World Track and Field championships in Athens. The Winebox Inquiry concludes with a recommendation of tighter tax laws and the finding that all allegations of fraud raised in the inquiry were unable to be substantiated. Northland Judge Martin Beattie is acquitted of 45 counts of fraud involving false expense claims; fellow Judge Robert Hesketh earlier pleaded guilty to 8 counts. Auckland band OMC's album How Bizarre goes gold in the United States. New Zealand win the rugby tri-series against Australia and South Africa, and the Bledisloe Cup. Bic Runga becomes the first New Zealand woman to top the New Zealand album charts with her debut album Drive. Retired Judge Sir Thomas Thorp's report on firearms recommends more restrictions on their ownership. Discovery of a Maori head in a burial plot in Liverpool prompts Museum of New Zealand to state that tattooed Maori heads it holds will never be displayed. Scenes of widespread grief in New Zealand after news of the death of Princess Diana.

August 1997. Sir Ronald Davison relaxes at home with a cup of tea after the Winebox Inquiry finds no proof of fraud by the Inland Revenue Department and the Serious Fraud Office.

October 1997. Sir Tipene O'Regan and Hon DAM Graham signing the Heads of Agreement for the Ngai Tahu Settlement at Kaikoura.

September. Compulsory Superannuation is rejected by a margin of more than 9 to 1 in New Zealand's first postal referendum. Revelations that the rabbit-killing calicivirus RCD has been illegally introduced into New Zealand; the government has no choice but to legalise its spread. Golfer Glenn Turner wins the British Masters golf tournament. Fletcher Energy announces discovery of a new natural gas formation in Taranaki. Demolition of Broadcasting House.

October. A $165 million proposal to move the Beehive and complete the 1911 design for Parliament House is discarded after public protest. ASB North Harbour wins the netball Caltex Cup. Paparua prison guards taken hostage by prisoners with imprisonment grievances. Ngai Tahu signs a $170 million settlement with the Crown.

November. Christchurch's new New Brighton Pier is officially opened. Jim Bolger resigns as Prime Minister after a National Party coup while he is overseas; he is replaced by New Zealand's first woman Prime Minister. Jenny Shipley. The government announces that an extra $663 million will be spent on defence, but decides against further frigate purchases. Children. Young Persons and their Families Service says that 6,128 children required state intervention in the past year, with thousands more considered “at risk”. Rob Hamill and Phil Stubbs win the inaugural Atlantic Rowing Race, crossing from the Canary Islands to Barbados in 41 days. The film Topless women talk about their lives directed by Harry Sinclair dominates the New Zealand Film and Television Awards.

December. Prime Minister Jenny Shipley forms her first cabinet. Taranaki farmers drive their tractors to Parliament to protest the passage of the Mäori Reserved Land Amendment Bill. Defence Force truce monitoring team goes to Bougainville to supervise the truce agreement. Mãori Land Court finds that Mãori may claim customary ownership of beaches and seabeds. in a case brought by Marlborough iwi, which is appealed. Waitutu Settlement Act comes into force, joining unique Western Southland podocarp forest to Fiordland National Park.

Obituaries 1997

Bruce Beetham (b. 1936) was a history lecturer when elected leader of the feuding Social Credit Political League in 1972. After contesting the previously blue-ribbon National seat of Rangitikei in 1972 and 1975 he was mayor of Hamilton 1976-77, before entering Parliament in the 1978 Rangitikei by-election. Boundary changes, plus unpopular support of the government on the Clyde Dam project, saw him narrowly lose the seat in 1984. An articulate leader, he gained Social Credit 21 percent of the national vote at the 1981 general election though this meant only two seats in Parliament. He remained leader until 1986, overseeing the change to the New Zealand Democratic Party. After standing unsuccessfully in the 1987 general election he entered local politics with the Wanganui Area Health Board and the regional council. A tireless worker for his party and proportional representation, his efforts paved the way for MMP.

Sir John Bennett (b. Rotorua 1912) was committed to Mãori education and the retention of te Reo. He trained as a teacher in Christchurch and attended Canterbury University, going on to play a leading role in many community organisations, especially those devoted to education. He was one of the original members of the Mãori Education Foundation (1975) and it was from there that he started the Mãori language nest concept which became the Kohanga Reo movement. He was the founding chairman of the Kohanga Reo National Trust in 1982. To date more than 30,000 children have passed through the kohanga system, with almost half of all Mãori preschoolers attending kohanga. He was also a founding member of the Mãori Council.

Ted Coubray (b. Eastern Bush, Southland 1900) was one of New Zealand's leading pioneer filmmakers. Born five years after the birth of cinema, he was projectionist, cameraman, director, producer, sound-film pioneer and inventor. In the 1920s he ran a circuit cinema in Rongotea, and began filming local events to screen at movie sessions. He was assistant cameraman on the epic, The birth of New Zealand (1921) and in 1927 wrote, produced and directed the horse-racing feature film Carbine's heritage which screened simultaneously in three Auckland cinemas. He invented a film sound system in 1929 (the first in Australasia), continuing throughout his life to invent film equipment. He was a projectionist in the Hutt Valley during World War 2 and in the 1960s was manager-operator for Auckland Cinemas, retiring to Australia in 1973. (A documentary on Ted Coubray is being made.)

Arthur Cushen (b. Bluff 1920) was a world-level shortwave radio expert, with confirmed reception of 9,000 stations. He began monitoring shortwave radio for the BBC in 1942 and for Voice of America from 1972, and broadcasting services for Radio New Zealand International from 1960. In 1962 he founded New Zealand's first telephone news service. He was International Listener of the Year in 1960, 1980 and 1992. He became blind in 1954 and worked voluntarily for blind people for the rest of his life, establishing the Southland Branch of the Association of the Blind in 1962. He had written for the Electronic Australian Monthly since 1952, and New Zealand Listener and Southland Times for almost 40 years. His book The world in my ears, which sold in 70 countries, is available in braille and as a talking book.

Doug Dibley (b. Wellington 1896) was the last surviving Gallipoli veteran (see Les Leach). In 1915 he was working for an oil company in Wellington when he and a friend saw an advertisement seeking helpers at Trentham Military Camp, where there was a spinal meningitis epidemic. He recalled, “The next thing we knew they packed us off to Gallipoli.” He was a stretcher bearer and was evacuated on the last day of the big evacuation, sent to France, but contracted meningitis and was invalided to England. After returning to New Zealand in April 1918, he took up a rehab farm in Ngongotaha and later taking over his father-in-law's farm nearby, remained there all his working life. He served in the Home Guard during World War 2. Like many other returned servicemen he was opposed to wars and the suffering they caused.

Sir Leonard (Len) Hadley (b. Wellington 1911), an expert in labour negotiations, was an executive member of the Federation of Labour for more than 30 years as well as serving on industrial commissions and the Arbitration Court. The ‘back-room’ person of the FOL, he was an acknowledged expert on industrial awards and agreements who preferred bargaining and conciliation to confrontation. Hadley was national secretary of several unions: Photo-engravers, Motion Picture Projectionists and the Tobacco Workers, and for 30 years the Plumbers and Gasfitters Union. He was a director of the Reserve Bank for 26 years from 1959, and a founding trustee and president of the Wellington Savings Bank, and the union movement's first knight.

Ruth Hendry (b. Christchurch 1913) compiled the New Zealand Listener cryptic crosswords for 57 years and 19 weeks, believed to be a world record. RWH, as she was known, said it was acceptable to tease or baffle as long as clues were fair. At a time when few women had higher degrees she graduated in 1937 with an MA in French from Canterbury College. She worked as a woolbroker and later as an accountant until marriage. She swam, lifesaved and fenced as a young woman and later was a keen climber and tramper, interested in music and history, and involved with music and theatre administration in Christchurch. Her favourite clue was, “He won't eat more quickly (6)" [faster].

Sir Hepi te Heuheu (b. 1919) of Ngati Tuwharetoa held the last paramount chieftaincy in Mãoridom, taking over the title from his father at age 24. His early years had been spent as a bushman before farming family land near Taumarunui. As chairman of the Tuwharetoa Mãori Trust Board he oversaw the development and extension of their substantial economic base of tribal lands. His ancestor refused to sign the Treaty of Waitangi in 1840, and these lands had been retained by the iwi. Sir Hepi exerted an influence in the Mãori world far beyond the shores of Lake Taupo. He persuaded the government to insert the Treaty protection provisions into the State-owned Enterprises legislation, was architect of the Mãori Congress, set up in 1990 as an autonomous iwi body, and called his own hui in 1994 (attended by more than 1,000 iwi representatives) to discuss the government's fiscal envelope proposals.

Jack Hinton (b. Colac Bay 1909) was New Zealand's last surviving Victoria Cross holder. He won the VC in 1941 during the pullout from Greece, when he was severely wounded and captured. He spent four and a half years as a POW in Germany, attempting escape three times. Jack had left home at 12 to be galley hand on an Antarctic whaling ship, later delivering groceries, working on farms, and during the Depression became a swagman. On his return to New Zealand he became manager of Auckland's ‘wildest’ hotel, The Thistle, going on to manage a number of hotels around the country. In later years he was a key guest at Anzac Day and military functions.

Henry Lang (b. Vienna 1919) came to New Zealand in 1939 with his mother Anna and noted architect stepfather Ernst Plischke. Educated at Victoria University he served with the RNZAF from 1944 to 1946. He joined the Treasury in 1958 rising to the position of Secretary from 1968 to 1976.

June 1997. Japanese imported used cars being inspected on arrival in Dunedin for comparison with their documentation, to determine if their odometers have been wound back.

He revitalised the Treasury with young graduates from a range of disciplines encouraging wide-ranging debate. He was highly regarded throughout the public service. After the Treasury he established the Institute of Policy Studies at Victoria University and took up a number of professional directorships. Henry Lang was very interested and supportive of the arts and remained a keen skier into his seventies. He was awarded an Hon LLM by Victoria University and was a member of the Order of New Zealand.

Les Leach (b. Greymouth 1897) the second last surviving Gallipoli veteran (see Doug Dibley) died in Sydney. Les Leach was a butcher aged 16 when he enlisted in the army in 1913. He was wounded at Gallipoli and sent back to New Zealand. After recovering, he was shipped back to France where his skull was fractured in a shell burst. After recovering in an English hospital he was sent home. After the war he worked as a civil engineer, later owning commercial properties including an hotel in Akaroa and another in Auckland. He married at 70 and lived for a number of years in Auckland before moving to Port Macquarie in New South Wales.

Barbara Matthews (b. Lower Hutt 1917) with her husband J W (Jim) wrote the extremely popular “Garden with Matthews” syndicated newspaper column for over 30 years, the last appearing in 1987. The Matthews family developed four large gardens, of which the best known is in Waikanae where Barbara lived for 44 years. She helped launch and edit the New Zealand Gardener in 1944, remaining consulting editor for many years and was author of Growing native plants and co-author of New Zealand garden dictionary and other books. Barbara led the first garden tour to Britain in the 1970s and appeared on a television garden show. Her own love of nature and gardening, which she saw as an aid to health and youthfulness, was widely influential.

Erihapeti Murchie (born 1923 Arowhenua marae near Temuka) was a Human Rights Commissioner for eight years, representing New Zealand on the UN Working Group on indigenous peoples. She had trained as a teacher and later studied at Otago and Victoria Universities, gaining a BA in 1977. A mother of 10, she became national president and research director of the Mãori Women's Welfare League and was largely responsible for the influential 1984 report Rapuora—health and Mãori women. In addition to the many public positions she held in health and education she was a consultant to the Royal Commission on Social Policy, a trustee of the Mãori Arts and Crafts Institute, on the Massey University Council, and made memorable appearances in three productions of The pohutukawa tree. Most recently, she undertook an investigation into cultural safety training for nurses.

Matiu Rata (born 1934 Te Hapua) moved to Auckland with his mother and two brothers after the death of his father. At 15 he joined the Labour Party and worked as a seaman and trade union official. He was selected for the Northern Mãori seat for Labour in the 1963 by-election. With Labour's win in the 1972 election he was appointed Minister of Mãori Affairs and Lands. During this period he was instrumental in the establishment of the Waitangi Tribunal. In 1979 in opposition he resigned from the Labour Party, serving briefly as an independent before forming Mana Motuhake and losing his seat in a self-imposed by-election in 1980. He was executive director and chief negotiator of the Muriwhenua runanaga covering most of the far north tribes, and is credited with being the catalyst for the current Mãori renaissance, as well as being a prominent and successful advocate for Mãori fishing and land claims.

Eva Rickard (b. Raglan 1925) was a veteran Mãori activist whose first campaign was for the return of ancestral land taken for a Second World War airstrip. Post-war, the land became the Raglan Golf Course. She finally succeeded in 1983 and the course became a farm with a marae and training centre. In 1984 she led a 2,000-strong hikoi (march) to Waitangi, protesting that Waitangi Day celebrations be cancelled until all grievances were settled. She stood for Parliament for Mana Motuhake but left the party when it joined the Alliance and founded the Mana Mãori Movement in 1993. She was a fierce critic of other Mãori, criticising Mãori MPs, the Mãori Council and the Tainui Mãori Trust Board claiming they did not have a mandate for the $170 million raupatu settlement claim with the Crown. Eva Rickard worked at the Raglan Post Office from 1943 until 1979 with time out to have 9 children. She had a moko tattooed on her chin in late 1996—she felt she had earned it.

Emily Schuster (b. Auckland 1937) who was a guide and performer in cultural groups all her life, was the niece of Guide Rangi. A lifelong practitioner of traditional crafts, particularly weaving, she became supervisor of women's crafts at the Rotorua Mãori Arts and Crafts Institute in 1969. As the convenor of the Aotearoa Moananui-a-Kiwa Weavers group she teamed up with Diggeress Te Kanawa, travelling to the UK and USA documenting taonga held in museums. She represented New Zealand overseas at many conferences and gatherings, speaking on traditional Mãori crafts. She did a great deal of community work, being instrumental in raising funds for the memorial bridge, marae and dining room at Whakarewarewa.

Paul Temm (b. Auckland 1930) had a deprived childhood. He attended Holy Cross Seminary but left after two years, working in camps around Nelson to pay his way through law school and became a High Court judge. During his 30 years as a barrister he took six cases to the Privy Council in London. Appointed as a founding member to the Waitangi Tribunal in 1982, he was involved in landmark hearings like the Manukau Harbour claim and Kaituna pipeline case. After not being reappointed to the Tribunal he led the legal case for the successful Ngai Tahu Treaty claim, noting it was the biggest challenge of his career.

The Honourable Justice Paul Temm addressing the court.

Frank Thorn (b. London 1916) came from a very poor, large family. He joined the British Merchant Navy at 15 but jumped ship in New Zealand and was fully involved in the 1951 waterfront confrontation. Ousted from the wharves, he worked at the Ngauranga freezing works, becoming branch secretary of the Meat Workers Union. From 1971 to 1993 he was secretary of the Clothing Workers Union and minor unions covering isolated groups of workers, many of them women, whom Frank Thorn represented using his colourful, good-humoured rhetoric rather than union muscle, (although he organised a celebrated sit-in at a Levin clothing factory). He served on the national executive of the Federation of Labour and was still a member of his union executive at 81.

waitangi Day 1997

2.2 Chronology of main events in New Zealand history

cl300 Archaeological evidence indicates that Polynesian settlement was established by this date.

1642 Dutch explorer Abel Janszoon Tasman discovers a land he calls Staten Land, later named New Zeeland.

1769 British explorer James Cook makes the first of three visits to New Zealand, taking possession of the country in the name of King George III.

1790s Sealing, deep-sea whaling, the flax and timber trades begin, with some small temporary settlements. First severe introduced epidemic among Maori population.

1791 First visit by a whaling vessel, the William and Ann, to Doubtless Bay.

1806 First Pakeha women arrive in New Zealand.

1814 British missionary Samuel Marsden makes first visit to New Zealand. Anglican mission station established. Sheep, cattle, horses and poultry are introduced.

1815 Thomas Holloway King is the first Pakeha child born in New Zealand.

1819 Raids on Taranaki and Te Whanganui-a-tara regions by Ngapuhi and Ngati Toa people led by chiefs Patuone, Nene, Moetara, Tuwhare and Te Rauparaha.

1820 Hongi Hika, Ngapuhi chief, visits England, meets King George IV and secures supply of muskets.

1821 Musket wars begin with raids by Hongi Hika and Te Morenga on southern iwi and continue throughout the decade.

1822 Ngati Toa migration south to Cook Strait region, led by Te Rauparaha, begins.

1823 Jurisdiction of New South Wales courts is extended to British citizens in New Zealand. Wesleyan Missionary Society mission established. First Church of England marriage between Philip Tapsell and Maori girl, Maria Ringa.

1824 Te Heke Niho-puta migration of Taranaki iwi to the Kapiti Coast. Rawiri Taiwhanga in Bay of Islands sells dairy produce and other food supplies to visiting ships.

1827 Te Rauparaha's invasion of the South Island from Kapiti begins.

1830 First acorn planted at Waimate North where agricultural mission and school established.

1831 Whaling stations established at Tory Channel and Preservation Inlet.

1833 James Busby, appointed British Resident in New Zealand, arrives at the Bay of Islands.

1834 United Tribes' flag adopted by some 25 northern chiefs at Busby's suggestion.

1835 Declaration of Independence by the ‘United Tribes of New Zealand’ signed by 34 northern chiefs.

1837 New Zealand Association formed in London, becoming the NZ Colonisation Society in 1838 and the NZ Company in 1839, under the inspiration of Edward Gibbon Wakefield. William Colenso completes printing the New Testament in Maori, the first book printed in New Zealand.

1838 Bishop Pompallier founds Roman Catholic Mission at Hokianga.

1839 William Hobson instructed to establish British rule in New Zealand, as a dependency of New South Wales. Colonel William Wakefield of the New Zealand Company arrives on the Tory to purchase land for a settlement.

1840 New Zealand Company settlers arrive at Port Nicholson, Wellington. Treaty of Waitangi signed at Bay of Islands and later over most of the country. British sovereignty proclaimed. French settlers land at Akaroa. Hobson becomes first Governor and sets up executive and legislative councils.

1841 European settlements established at New Plymouth and Wanganui. Capital shifted from Kororareka to Auckland.

1842 Main body of settlers arrive at Nelson.

1843 Twenty-two European settlers and four Maori killed at a confrontation at Tua Marina, near the Wairau, in Marlborough. Robert FitzRoy becomes Governor.

1844 Hone Heke begins the ‘War in the North’. New Zealand Company suspends its colonising operations due to financial difficulties.

1845 George Grey becomes Governor.

1846 War in the North ends with capture of Ruapekapeka. First NZ Constitution Act passed. Heaphy, Fox and Brunner begin exploring the West Coast. First steam vessel, HMS Driver, arrives in New Zealand waters.

1848 Settlement founded by Scottish Otago Association. Provinces of New Ulster and New Munster set up under 1846 Act. Coal discovered at Brunner on the West Coast. Earthquake in Marlborough damages most Wellington buildings.

1850 Canterbury settlement founded.

1852 Second NZ Constitution Act passed creating General Assembly and six provinces with representative government.

1853 Idea of a Maori King canvassed by Tamihana Te Rauparaha and Matene Te Whiwhi.

1854 First session of the General Assembly opens in Auckland.

1855 Governor Thomas Gore Browne, appointed in 1854, arrives. Severe earthquake on both sides of Cook Strait. Adhesive, imperforate postage stamps on sale.

1856 Henry Sewell forms first ministry under responsible government and becomes first Premier. Edward Stafford forms first stable ministry.

1858 New Provinces Act passed. Te Wherowhero installed as first Maori King, taking name Potatau I.

1859 First session of Hawke's Bay and Marlborough provincial councils. Gold discovered in Buller River. New Zealand Insurance Company established.

1860 Waitara dispute develops into general warfare in Taranaki.

1861 Grey begins second governorship. Gold discovered at Gabriel's Gully; Otago goldrushes begin. First session of Southland provincial council. Bank of New Zealand incorporated at Auckland.

1862 First electric telegraph line opens—from Christchurch to Lyttleton. First gold shipment from Dunedin to London.

1863 War resumes in Taranaki and begins in Waikato when General Cameron crosses the Mangatawhiri stream. New Zealand Settlements Act passed to effect land confiscation. First steam railway in New Zealand opened.

1864 War in the Waikato ends with battle of Orakau. Land in Waikato, Taranaki, Bay of Plenty and Hawke's Bay confiscated. Gold discovered in Marlborough and Westland. Arthur, George and Edward Dobson are the first Pakeha to cross what becomes known as Arthur's Pass.

1865 Seat of government transferred from Auckland to Wellington. Native Land Court established. Maori resistance continues. Auckland streets lit by gas for first time.

1866 Cook Strait submarine telegraph cable laid. Christchurch to Hokitika road opens. Cobb and Co. coaches run from Canterbury to the West Coast.

1867 Thames goldfield opens. Four Maori seats established in parliament. Lyttleton railway tunnel completed. Armed constabulary established.

1868 Maori resistance continues through campaigns of Te Kooti Arikirangi and Titokowaru. New Zealand's first sheep breed, the Corriedale, is developed.

1869 New Zealand's first university, the University of Otago, is established.

1870 The last imperial forces leave New Zealand. Vogel's public works and immigration policy begins. New Zealand University Act passed, establishing a federal system which lasts until 1961. Vogel announces national railway construction programme; over 1000 miles constructed by 1879. First rugby match. Auckland to San Francisco mail service begins.

1871 Deer freed in Otago.

1872 Te Kooti retreats to the King Country and Maori armed resistance ceases. Telegraph communication links Auckland, Wellington and southern provinces.

1873 New Zealand Shipping Company established.

1874 First New Zealand steam engine built at Invercargill.

1876 Abolition of the provinces and establishment of local government by counties and boroughs. New Zealand-Australia cable established.

1877 Education Act passed, establishing national system of primary education.

1878 Completion of Christchurch-Invercargill railway.

1879 Triennial Parliaments Act passed. Vote is given to every male aged 21 and over. Kaitangata mine explosion, 34 people die. Annual property tax introduced.

1881 Parihaka community forcibly broken up by troops. Te Whiti, Tohu Kakahi and followers arrested and imprisoned. Wreck of SS Tararua, 131 people die. Auckland and Christchurch telephone exchanges open.

1882 First shipment of frozen meat leaves Port Chalmers for England on the Dunedin.

1883 Te Kooti pardoned, Te Whiti and other prisoners released. Direct steamer link established between New Zealand and Britain.

1884 King Tawhiao visits England with petition to the Queen, appealing to the Treaty, and is refused access. First overseas tour by a New Zealand rugby team, to New South Wales. Construction of King Country section of North Island main trunk railway begins.

1886 Mt Tarawera erupts and the Pink and White Terraces are destroyed; 153 people die. Oil is discovered in Taranaki.

1887 New Zealand's first national park, Tongariro, is presented to the nation by Te Heuheu Tukino IV. Reefton becomes first town to have electricity. First inland parcel post service.

1888 Birth of writer Katherine Mansfield.

1889 Abolition of non-residential or property qualification to vote. First New Zealand-built locomotive completed at Addington.

1890 Maritime Strike involves 8000 unionists. ‘Sweating’ Commission reports on employment conditions. First election on a one-man one-vote basis.

1891 John McKenzie introduces the first of a series of measures to promote closer land settlement. John Ballance becomes Premier of first Liberal Government.

1892 First Kotahitanga Maori Parliament meets.

1893 Franchise extended to women. John Ballance dies and is succeeded by Richard John Seddon. Liquor licensing poll introduced. Elizabeth Yates becomes first woman mayor, of Onehunga. Banknotes become legal tender.

1894 Compulsory arbitration of industrial disputes and reform of employment laws. Advances to Settlers Act. Clark, Fyfe and Graham become the first people to climb Mt Cook. Wreck of SS Wairarapa.

1896 National Council of Women is founded. Brunner Mine explosion, 67 people killed. Census measures national population as 743,214.

1897 First of series of colonial and later imperial conferences held in London. Apirana Ngata and others form Te Aute College Students' Association.

1898 Old Age Pensions Act. First cars imported to New Zealand.

1899 New Zealand army contingent is sent to the South African war. First celebration of Labour Day.

1900 Maori Councils Act passed. Public Health Act passed setting up Department of Public Health in 1901.

1901 Cook and other Pacific Islands annexed. Penny postage first used.

1902 Pacific cable begins operating between New Zealand, Australia and Fiji. Wreck of SS Elingamite.

1904 Richard Pearse achieves semi-controlled flight near Timaru.

1905 New Zealand rugby team tours England and becomes known as the All Blacks. Old Age Pension increases to £26 per year, however eligibility tightened.

1906 Seddon dies and is succeeded by Joseph Ward as Premier.

1907 New Zealand constituted as a Dominion. Fire destroys Parliament buildings.

1908 Auckland to Wellington main trunk railway line opens. Ernest Rutherford is awarded the Nobel Prize in Chemistry. New Zealand's population reaches 1 million.

1909 ‘Red’ Federation of Labour formed. SS Penguin wrecked in Cook Strait, 75 people die. Compulsory military training introduced. Stamp-vending machine invented and manufactured in New Zealand.

1910 Halley's Comet sighted in New Zealand.

1912 William Massey wins vote in the House and becomes first Reform Party Prime Minister. Waihi miners strike.

1913 Waterfront strikes in Auckland and Wellington.

1914 World War I begins and German Samoa is occupied. New Zealand Expeditionary Forces are despatched to Egypt. Huntly coal mine disaster, 43 people die.

1915 New Zealand forces take part in Gallipoli campaign. Reform and Liberal parties form National War Cabinet. Britain announces its intention to purchase all New Zealand meat exports during war.

1916 New Zealand troops transfer from Western Front. Conscription introduced. Labour Party formed. Lake Coleridge electricity supply scheme opened.

1917 Battle of Passchendaele—3,700 New Zealanders killed. Six o'clock public house closing introduced. Lord Liverpool becomes first governor-general.

1918 New Zealand Division in the Battle of the Somme. End of World War I. Influenza epidemic in which an estimated 8,500 die. Creation of power boards for electricity distribution. Prohibition petition with 242,001 signatures presented to Parliament.

1919 Women eligible for parliament. Massey signs Treaty of Versailles. First official airmail flight from Auckland to Dargaville.

1920 Anzac Day established. New Zealand gets League of Nations mandate to govern Western Samoa. First aeroplane flight across Cook Strait.

1921 New Zealand Division of Royal Navy established.

October 1997. Pukaki descendants carry the ancestral carving to its home in the Rotorua District Council building.

1922 Meat Producers' Board placed in control of meat exports.

1923 Otira tunnel opens. Ross Dependency proclaimed. Death of Katherine Mansfield.

1926 National public broadcasting begins under auspices of Radio Broadcasting Co. Ltd.

1928 New Zealand Summer Time introduced. General election won by new United Party. Kingsford-Smith completes first flight across Tasman sea.

1929 Depression deepens. Severe earthquake in Murchison-Karamea district. 17 people die. First health stamps issued.

1930 Unemployment Board set up to provide relief work.

1931 Newly formed Coalition Government under George Forbes wins general election. Hawke's Bay earthquake; 256 die. Substantial percentage reductions in public service wages and salaries. Airmail postage stamps introduced.

1932 Compulsory arbitration of industrial disputes abolished. Unemployed riots in Auckland, Dunedin and Christchurch. Reductions in old-age and other pensions.

1933 Elizabeth McCombs becomes first woman MP. Distinctive New Zealand coins first issued.

1934 Reserve Bank and Mortgage Corporation established. First trans-Tasman airmail.

1935 First Labour Government elected under Michael Joseph Savage. Air services begin across Cook Strait.

1936 Reserve Bank taken over by state. State housing programme launched. Guaranteed prices for dairy products introduced. National Party formed from former Coalition MPs. Inter-island trunk air services introduced. Jack Lovelock wins New Zealand's first Olympic gold. Jean Batten's record flight from England. Working week reduced from 44 to 40 hours.

1937 Federation of Labour unifies trade union movement. RNZAF set up as separate branch of armed forces.

1938 Social Security Act establishes revised pensions structure and the basis of a national health service. Import and exchange controls are introduced.

1939 World War II begins. Second New Zealand Expeditionary Force formed. Bulk purchases of farm products by Great Britain. HMS Achilles takes part in Battle of the River Plate.

1940 Michael Joseph Savage dies and is succeeded by Peter Fraser. Sidney Holland becomes Leader of Opposition. Conscription for military service. German mines laid across Hauraki Gulf.

1941 Japan enters the war, Maori War Effort Organisation set up. Pharmaceutical and general practitioner medical benefits introduced.

1942 Economic stabilisation. New Zealand troops in Battle of El Alamein. Food rationing introduced. Mobilisation of women for essential work.

1943 New Zealand troops take part in invasion of Italy.

1944 Australia-New Zealand Agreement provides for co-operation in the South Pacific.

1945 War in Europe ends on 8 May and in the Pacific on 15 August. New Zealand signs United Nations charter. Maori Social and Economic Advancement Act passed. National Airways Corporation founded.

1946 Family benefit of £1 per week becomes universal. Bank of New Zealand nationalised.

1947 Statute of Westminster adopted by New Zealand Parliament. First public performance by National Orchestra. Mabel Howard becomes first woman cabinet minister. Fire in Ballantyne's department store, Christchurch, 41 people die.

1948 Protest campaign against exclusion of Maori players from rugby tour of South Africa. Polio epidemic closes schools. Ruapehu and Ngauruhoe erupt. Meat rationing ends.

1949 Referendum agrees to compulsory military training. National Government elected. New Zealand gets first four navy frigates.

1950 Naval and ground forces sent to Korean War. Legislative Council abolished. Wool boom.

1951 Prolonged waterfront dispute—state of emergency proclaimed. ANZUS treaty signed between United States, Australia and New Zealand. Maori Women's Welfare League established.

1952 Population reaches over two million.

1953 First tour by a reigning monarch. Edmund Hillary and Sherpa Tenzing Norgay first to climb Mount Everest. Railway disaster at Tangiwai, 151 people die. World sheep-shearing record set by Godfrey Bowen.

1954 New Zealand signs South East Asia Collective Defence Treaty. Gains seat on United Nations Security Council. Social Credit gets 10 percent of vote in general election, but no seat in Parliament.

1955 Pulp and paper mill opens at Kawerau. Rimutaka rail tunnel opened.

1956 New Zealand troops sent to Malaya. Roxburgh and Whakamaru power stations in operation.

1957 National loses election; Walter Nash leads second Labour Government. Last hanging. Scott Base established in Ross Dependency. Court of Appeal constituted. Dairy products gain 10 years of unrestricted access to Britain.

1958 PAYE tax introduced. Arnold Nordmeyer's ‘Black Budget’. First geothermal electricity generated at Wairakei. First heart-lung machine used at Greenlane Hospital, Auckland.

1959 Antarctic Treaty signed with other countries involved in scientific exploration in Antarctica. Auckland harbour bridge opened.

1960 Regular television programmes begin in Auckland. National Government elected. Government Service Equal Pay Act passed.

1961 New Zealand joins the International Monetary Fund. Capital punishment abolished.

1962 New Zealand troops sent to Malaysia during ‘confrontation’ with Indonesia. Western Samoa becomes independent. Sir Guy Powles becomes first Ombudsman. New Zealand Maori Council established. Cook Strait rail ferry service begins. Taranaki gas well opens. Peter Snell establishes mile and half-mile record.

1964 Marsden Point oil refinery opens at Whangarei. Cook Strait power cables laid. Auckland's population reaches half a million.

1965 NAFTA agreement negotiated with Australia. Support for United States in Vietnam; New Zealand combat force sent, protest movement begins. Cook Islands becomes self-governing.

1966 International airport officially opens at Auckland. New Zealand labour force reaches one million. National Library of New Zealand created. Te Ata-i-rangi-kaahu becomes first Maori Queen.

1967 Referendum extends hotel closing hours to 10pm. Decimal currency introduced. Lord Arthur Porritt becomes first New Zealand-born Governor-General. Breath and blood tests introduced for suspected drinking drivers.

1968 Inter-island ferry Wahine sinks in severe storm in Wellington Harbour, 51 people die. Three die in Inangahua earthquake.

1969 Vote extended to 20-year-olds. National Government wins fourth election in a row. First output from Glenbrook Steel Mill.

1970 Natural gas from Kapuni supplied to Auckland.

1971 New Zealand secures continued access of butter and cheese to the United Kingdom. Nga Tamatoa protest at Waitangi celebrations. Tiwai Point aluminium smelter begins operating. Warkworth satellite station begins operation.

1972 Labour Government led by Norman Kirk elected. Equal Pay Act passed.

1973 Great Britain becomes a member of the EEC. Naval frigate despatched in protest against French nuclear testing in the Pacific. New Zealand's population reaches three million. Rugby tour of South Africa cancelled. Oil price hike means worst terms of trade in 30 years. Colour TV introduced.

1974 Prime Minister Norman Kirk dies. Commonwealth Games held in Christchurch.

1975 Robert Muldoon becomes prime minister after National election victory. Maori land march protests against land loss. The Waitangi Tribunal is established. Second TV channel starts broadcasting.

1976 Matrimonial Property Act passed. Pacific Island ‘overstayers’ deported. EEC import quotas for New Zealand butter set until 1980. Introduction of metric system of weights and measures. Subscriber toll dialling introduced.

1977 National Superannuation scheme begins. New Zealand signs the Gleneagles Agreement. The 200-mile exclusive economic zone is established. Bastion Point occupied by protesters.

1978 Registered unemployed reaches 25,000. National Government re-elected.

1979 Air New Zealand plane crashes on Mount Erebus, Antarctica; 257 people die. Carless days introduced to reduce petrol consumption.

1980 Social Credit wins East Coast Bays by-election. Saturday trading partially legalised. Eighty-day strike at Kinleith Mill.

1981 South African rugby team's tour brings widespread disruption.

1982 CER agreement signed with Australia. First kohanga reo established. Year-long wage, price and rent freeze imposed—lasts until 1984.

1983 Visit by nuclear-powered United States Navy frigate Texas sparks protests. Official Information Act replaces Official Secrecy Act. New Zealand Party founded.

1984 Labour Party wins snap general election. Finance Minister Roger Douglas begins deregulating the economy. New Zealand ratifies the United Nations Convention on the Elimination of All Forms of Discrimination Against Women. Te Hikoi ki Waitangi march and disruption of Waitangi Day celebrations. Auckland's population exceeds that of the South Island. Government devalues New Zealand dollar by 20 percent.

1985 Anti-nuclear policy leads to refusal of a visit by the American warship, the USS Buchanan. Greenpeace vessel Rainbow Warrior bombed and sunk by French agents in Auckland harbour. New Zealand dollar floated. Keri Hulme wins Booker Prize for The Bone People. First case of locally-contracted AIDS is reported. Waitangi Tribunal given power to hear grievances arising since 1840.

1986 Homosexual Law Reform Bill passed. Royal Commission reports in favour of MMP electoral system. Jim Bolger becomes National Party leader. Soviet cruise ship, the Mikhail Lermontov, sinks in Marlborough Sounds. Goods and Services Tax introduced. First visit to New Zealand by the Pope.

1987 Share prices plummet by 59% in four months. Labour wins general election. Maori Language Act making Maori an official language passed. Anti-nuclear legislation enacted. First lotto draw. New Zealand's first heart transplant is performed. New Zealand wins Rugby World Cup. Significant earthquake in the Bay of Plenty.

1988 Number of unemployed exceeds 100,000. Bastion Point land returned to Maori ownership. Combined Council of Trade Unions formed. Royal Commission on Social Policy issues April Report. Gibbs Report on hospital services and Picot Report on education published. State Sector Act passed. Cyclone Bola strikes northern North Island. Electrification of North Island's main trunk line completed. New Zealand Post closes 432 post offices. Fisheries quota package announced for Maori iwi.

1989 Prime Minister David Lange suggests formal withdrawal from ANZUS. Jim Anderton founds New Labour Party. Lange resigns and Geoffrey Palmer becomes Prime Minister. First annual balance of payments surplus since 1973. Reserve Bank Act sets bank's role as one of maintaining price stability. First school board elections under Tomorrow's Schools reforms. First elections under revised local government structure. Sunday trading begins. Third TV channel begins. Maori Fisheries Act passed.

1990 New Zealand celebrates its sesquicentennial. Maori leaders inaugurate National Congress of Tribes. Dame Catherine Tizard becomes first woman Governor-General. Geoffrey Palmer resigns as Prime Minister and is replaced by Mike Moore. National Party has landslide victory. Jim Bolger becomes Prime Minister. One and two cent coins are no longer legal tender. Commonwealth Games are held in Auckland. Telecom sold for $4.25 billion. Welfare payments cut. Big earthquake in Hawke's Bay.

1991 First budget of new Finance Minister, Ruth Richardson. Welfare payments further reduced. The Alliance Party is formed. Employment Contracts Act passed. Consumers Price Index has lowest quarterly increase for 25 years. Number of unemployed exceeds 200,000 for the first time. New Zealand troops join multi-national force in the Gulf War. An avalanche on Mt Cook reduces its height by 10.5 metres.

1992 Government and Maori interests negotiate Sealords fisheries deal. Public health system reforms. State housing commercialised. Watties Foods is bought by American company, Heinz. New Zealand gets seat on United Nations Security Council.

1993 Centennial of women's suffrage celebrated. New Zealand First Party launched by Winston Peters. National wins election without majority—Opposition MP Peter Tapsell becomes Speaker of the House, thus giving the Government a majority. Referendum favours MMP electoral system. New Zealand film The Piano has international success.

1994 Government commits 250 soldiers to frontline duty in Bosnia. Government proposes $1 billion cap in plan for final settlement of Treaty of Waitangi claims. Sharemarket reaches highest level since 1987 crash. New Zealand's first casino opens in Christchurch. First fast-ferry passenger service begins operation across Cook Strait.

1995 Team New Zealand wins America's Cup. Occupation of Moutua Gardens, Wanganui. Waikato Raupatu Claims Settlement Act passed. New political parties form: the Conservative, Christian Heritage and United New Zealand. Renewal of French nuclear tests results in New Zealand protest flotilla and navy ship Tui sailing for Moruroa Atoll. Commonwealth Heads of Government Meeting in Auckland, Nelson Mandela visits. New Zealand contingent returns from Bosnia.

1996 Imported pests—Mediterranean fruit flies and white-spotted tussock moths—cause disruption to export trade and to Aucklanders. Thirteenth National Park, Kahurangi, opened in north-west Nelson. Waitangi Tribunal recommends generous settlement of Taranaki land claims. First legal sports betting at TAB. $170 million Ngai Tahu settlement proposed, $40 million Whakatohea settlement announced. First MMP election brings National/New Zealand First coalition government.

Chapter 3. Government

Pacific Islanders listen to Sir John Robertson talk on the compulsory superannuation scheme, August 1997.

3.1 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. Five years earlier on 28 October 1835, an assembly of the Confederation of Chiefs of the United Tribes of New Zealand had proclaimed the country independent and signed the ‘Declaration of Independence’. 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.

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 controlled proceedings in Parliament and cases of Government members voting with the Opposition were uncommon.

Recent constitutional reform

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 the existing 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 registered electors) 1,031,257 or 84.7 percent voted for change. A clear preference was shown for mixed member proportional representation (MMP) 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.

In a second referendum held in conjunction with the 1993 general election, 1,917,883 voters (about 85 percent of the registered electors) chose between the first past the post (FPP) system and mixed member proportional representation. FPP received 884,964 votes (46.1 percent of the total vote) and MMP 1,032,919 votes (53.9 percent). Provision for that referendum was made in the Electoral Referendum Act 1993, and details of the MMP system are set out in that act.

Human Rights Act 1993. The Human Rights Act came into force on 1 February 1994. It amalgamated the Race Relations Act 1971 and the Human Rights Commission Act 1977 and added five new prohibited grounds of discrimination. There are now 13 prohibited grounds of discrimination: sex, marital status, religious belief, ethical belief, colour, race, ethnic or national origins, disability, age, political opinion, employment status, family status and sexual orientation. The areas in which it is unlawful to discriminate are the same as in the former legislation: employment; access to places, vehicles and facilities; provision of goods and services; provision of land, housing and other accommodation; and access to educational establishments. The act also contains provisions relating to racial disharmony, sexual harassment, and racial harassment.

The act modified procedures to assist with the resolution of complaints. The Human Rights Commission was restructured to include a Complaints Division dealing specifically with complaints. After investigating a complaint the Complaints Division may call a compulsory conference in order to identify the matters in issue between the parties and to explore the possibility of reaching an amicable settlement. Where a complaint cannot be settled and proceedings are commenced before the Complaints Review Tribunal the chairperson of the tribunal has the power to make interim orders to preserve the position of the parties pending final determination of the proceedings. If a party is dissatisfied with the decision of the tribunal and appeals to the High Court, there is a further right of appeal to the Court of Appeal on a question of law.

3.2 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. At the same time, the law forbids the Crown to tax citizens without express parliamentary approval. Private members are now able under Standing Orders to initiate proposals involving expenditure or taxation but the Government has an absolute right to veto such proposals if in its view they would have more than a minor impact on the Government's fiscal aggregates. Until the Constitution Act is amended, a positive recommendation from the Crown will still be required before the House may pass a bill making an appropriation.

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.

“Sketch of New Parliament Buildings, Wellington, as they will appear when completed.” Among suggestions for extensions to the present buildings, at the time when Broadcasting House was demolished, was the shifting of the Beehive and completion of Parliament to this original design. (Frontispiece to the 1913 New Zealand Official Yearbook.)

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. Unless there is a new session, at the commencement of business in the second and third years of the parliamentary term, the Prime Minister's statement reviews public affairs and outlines the Government's legislative and other policy intentions for the year ahead.

The Speaker, elected by the House, is the principal presiding officer, maintaining order in proceedings and ensuring 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.

Standing orders. On 20 December 1995 the House of Representatives adopted new Standing Orders, or rules of procedure, and these were brought into force on 20 February 1996. The Standing Orders were adopted in anticipation of a House of Representatives to be elected under the Mixed Member Proportional System (MMP) at the general election of 1996. The background to the changes is set out in the Report of the Standing Orders Committee on the Review of Standing Orders (Parl paper I. 18a, 1995). Amendments were made in August 1996 (Parl paper I.18b, 1996).

Role of parties. It has been the role of the opposition party with the highest number of seats to present itself to the people as an alternative government, attacking government policy and attempting to demonstrate inefficiency, and government or departmental mismanagement. Under an electoral system providing majority governments it has been 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 has been characterised by two large, dominant parties, with the majority party forming the Government and the minority party forming the Opposition. In recent years, however, members of other parties 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 or have formed new parties.

It is less likely under MMP that any single party will command an absolute majority in the House and be able to form a government on its own account. The current Standing Orders provide expressly for parties to be recognised in the House. This is reflected in various procedures, for instance in relation to voting. The principle of proportionality to party membership in the House is accorded weight, such as for participation in debate and the asking of oral questions.

Because of 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.

Party representation. The general election held on 12 October 1996 did not produce an outright majority of seats for either of the two main political parties, National (previously in coalition with the United New Zealand party) or Labour. A coalition agreement was concluded between National and New Zealand First on 11 December 1996 and the new Ministry was sworn in on 16 December 1996.

In the first House of Representatives to be elected under the Mixed Member Proportional system (MMP), there were: National 44 (30 electorate, 14 party list); Labour 37 (26 electorate, 11 party list); New Zealand First 17 (6 electorate, 11 party list): Alliance 13 (1 electorate, 12 party list); Act New Zealand 8 (1 electorate, 7 party list); United New Zealand (1 electorate).

The first change after the general election occurred in April 1997 when Jim Gerard, List MP, resigned to take up the position of High Commissioner to Canada. He was replaced by Annabel Young, the next candidate on the National Party List, who took her seat in the House on 23 April 1997.

The second change occurred on 16 July 1997 when list MP Manu Alamein Kopu resigned from Alliance, reducing it to 12 MPs, but not from Parliament. (See the Report of the Privileges Committee on the question of privilege referred on 22 July 1997, relating to the status of Manu Alamein Kopu as a Member of Parliament (Parl Paper 1.15b, 1997)).

The third change arose from the resignation on 6 April 1998 of National MP and former Prime Minister Jim Bolger, to take up the position of Ambassador to the USA, giving rise to the by-election in the Taranaki/King Country electorate on 2 May 1998 at which Shane Ardern (National) was elected.

Legislative procedures. Proposed laws are presented to the House of Representatives in the form of draft laws known as “bills”. Classes of bills are: public bills, which deal with matters of public policy, most of them being Government bills but a number being non-ministerial Members' bills; local bills, which are promoted by local authorities to give them special powers or validate unlawful actions they may have taken and which affect particular localities; and private bills, promoted by individuals or bodies (such as companies or trusts) for their particular interest or benefit.

All types of bills follow a similar procedure in the House, with every bill being required by the Standing Orders of the House to be “read” three times. A local bill or a private bill must also comply with prescribed preliminary procedures, which entail advertising the bill before its introduction into the House. The number of Members' bills that may be introduced and proceed at any one time to second reading is limited to three, chosen by ballot.

Under the current Standing Orders a bill is introduced by being read a first time without any question put. The bill is then set down for second reading on the third sitting day following the first reading. The second reading of a bill is directed to the principles and objects of the bill. Debate on the second reading is limited to 12 speeches, in the case of a Government bill, or 6 speeches for other bills, of 10 minutes each.

After its second reading a bill is referred to a select committee of the House for consideration unless it is an Appropriation Bill, an Imprest Supply Bill, or a bill that has been accorded urgency for its passing. Formerly, bills were referred to a select committee directly after their first reading but that now happens only where in certain circumstances a bill is introduced while the House is adjourned.

Select committee consideration of bills provides an opportunity for the public and interested bodies to make submissions in the expectation that better law will result. Committees also carry out scrutiny functions in relation to such matters as estimates, financial reviews and petitions. A committee must finally report to the House on a bill within 6 months of the bill being referred to it, unless the House extends that time. In its report recommending amendments to a bill, the committee must distinguish between those adopted unanimously by the committee and those adopted by a majority.

Following presentation of a select committee report on a bill, the report is set down for consideration on the third sitting day following. At the conclusion of the debate on the report the House decides whether to agree to the amendments recommended by the select committee by majority. The House then decides whether the bill should proceed.

A bill which the House agrees should proceed is set down for consideration in a committee of the whole House next sitting day, unless the Business Committee decides that the bill does not require consideration in committee. “In committee” the bill is considered clause by clause.

Once a bill has been fully considered by the committee it is reported to the House with any amendments that have been agreed to. The House having adopted the report, the bill is then set down for third reading next sitting day. Debate on the third reading is limited to 12 speeches of 10 minutes each.

After a third reading has been given, the bill that has been passed by the House is forwarded to the Governor-General for the Royal assent. The bill then becomes an Act of Parliament and part of the law of New Zealand.

Sessions of Parliament. The first session of the 45th New Zealand Parliament was called following the General Election of 12 October 1996, and began sitting on 12 December 1996.

Parliamentary Service—Te Kaitiaki Taiao a Te Whare Paremata. The Parliamentary Service provides administrative and support services to 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 Service Commission which currently consists of the Speaker of the House of Representatives as chairperson, and eight members, two of whom are representatives of the Leader of the House and Leader of the Opposition, four other members agreed to by the House and two further members who are appointed as observers on behalf of other parties.

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 (see also section 12.3).

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

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

  • 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 transition to MMP led to the first one-day induction seminar for new MPs, and changes to funding and accommodation arrangements.

The Parliamentary Service was also responsible for managing the major project to strengthen and refurbish Parliament House and the Parliamentary Library. The project began in August 1992 and it was completed, at cost a of $164 million, in time for members to occupy the restored building for the 1996 parliamentary year. The building was opened by Queen Elizabeth II on 2 November 1995. By June 1997, 100,000 visitors had been through the refurbished buildings.

Table 3.3. PARLIAMENTARY SESSIONS

ParliamentPeriod of session

Source: Clerk of the House of Representatives

Forty-first15 August 1984-12 December 1985
26 February 1986-21 July 1987
Forty-second16 September 1987-12 December 1989
14 February 1990-6 September 1990
Forty-third29 November 1990-18 January 1991
22 January 1991-30 September 1993
Forty-fourth 21 December 1993-6 September 1996
Forty-fifth 12 December 1996-

Table 3.4. SUMMARY OF PARLIAMENTARY PROCEEDINGS

 Calendar year
19901199121991-9331993-9641996-5

1 Second session, 42nd Parliament.

2 First session, 43rd Parliament.

3 Second session, 43rd Parliament.

4 44th Parliament.

5 45th Parliament to 12 December 1997—not a complete session.

Source: Clerk of the House of Representatives

Sitting Days561022420389
Government bills
Introduced431215013953
Referred to select committees33912411740
Enacted1299442418110
Members' bills
Introduced3 313531
Referred to select committees4 32299
Enacted  651
Local bills
Introduced5 25181
Referred to select committees5 25181
Enacted7 21181
Private bills
Introduced3 11113
Referred to select committees3 11113
Enacted3 8114

Salaries and allowances of parliamentarians. These are set by the Higher Salaries Commission and are shown in table 3.5 below. A constituency allowance is paid at a rate dependent on the nature of each member's electorate, e.g. urban, rural, or semi-rural, and ranges from $8,000 to $20,000. A list member is paid an allowance of $4,000 per year. 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 $135 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 $6,875. Travel allowances are set out in the Parliamentary Salaries and Allowances Determination 1997 (S.R. 1997/306), published in the statutory regulations series.

Table 3.5. PARLIAMENTARY AND MINISTERIAL SALARIES AND ALLOWANCES

 Annual salary or allowance payable from 1 July 1997 to 30 June 19981

1 Parliamentary Salaries and Allowances Determination (S.R. 1997/306). In its explanatory note, the Higher Salaries Commission records that the “Commission is all too keenly aware that any increase in the salaries of parliamentarians could create a degree of public disapproval. It is possible that the performance of a few is at least partly responsible for a popularly held view that politicians should not get an increase.”

Source: Clerk of the House of Representatives

Salaries—$
Members of the Executive
Prime Minister199,000
Deputy Prime Minister151,000
Minister of the Crown in Cabinet135,000
Minister of the Crown outside Cabinet120,000
Parliamentary Under-Secretary97,000
Officers of the House of Representatives
Speaker135,000
Deputy Speaker100,000
Assistant Speaker84,000
Chairpersons of Select Committees82,000
Leader of the Opposition and other party leaders
Leader of the Opposition135,000
Leader of other parties (depending on number of MPs)82,000-95,000
Deputy leader of party with 35 MPs or more91,500
Salaries—
Whips
Senior Government Whip97,000
Other Whips (depending on number of MPs)82,000-92,000
Other Members of Parliament
Member of Parliament78,000
Allowances—
Prime Minister29,500
Deputy Prime Minister13,000
Minister of the Crown12,000
Parliamentary Under-Secretary9,500
Minister of Foreign Affairs and Trade (additional)6,000
Speaker—basic expenses allowance12,000
additional allowance8,500
Deputy Speaker—basic expenses allowance9,500
additional allowance7,500
Assistant Speaker—basic expenses allowance7,000
additional allowance1,000
Leader of the Opposition—basic expenses allowance12,000
Leaders of other parties (depending on number of MPs)7,000-10,000
Deputy Leader—basic expenses allowance7,000
additional allowance2,000
Constituency Members—basic expenses allowance7,000
constituency allowance (depending on classification of electoral district)8,000-20,000
List Members4,000

The public had mixed feelings about MMP

Table 3.6 lists members of the House of Representatives during the 45th Parliament. The final results of the 1996 General Election were printed in the report The General Election (printed as Parl paper E.9).

Table 3.6. HOUSE OF REPRESENTATIVES, FORTY-FIFTH PARLIAMENT

Prime Minister—Rt Hon J B Bolger (until 8 December 1997)
—Hon Jenny Shipley (from 8 December 1997)
Leader of the Opposition—Rt Hon Helen Clark
Speaker—Hon D L Kidd
Deputy Speaker—I M Revell
Clerk of the House—D G McGee
Member*Year of birthPrevious occupationElectorate/listParty

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

1 Entered Parliament after by-election on 2 May 1998, caused by resignation of Jim Bolger on 6 April 1998.

2 Relinquished title The Honourable upon ceasing to be a member of the Executive Council on: 7 August 1997 (Kirton); 11 September 1997 (Fletcher); 8 December 1997 (East).

3 Resigned 17 April 1997.

4 Acquired title The Honourable upon appointment to the Executive Council on 8 December 1997.

Source: Clerk of the House of Representatives

Anae, Arthur1945Company directorlistNational
Anderton, Jim1938Company directorWigramAlliance
Ardern, Shane11960FarmerTaranaki/King CountryNational
Awatere Huata, Donna1949Maori development consultantlistACT
Banks, Hon John1946RestaurateurWhangareiNational
Barker, Rick1951Trade UnionistTukitukiLabour
Barnett, Tim1958Vol. sector managerChristchurch CentralLabour
Batten, Reverend Ann1944Anglican MinisterlistNZF
Birch, Rt Hon Bill1934Consultant surveyor-engineerPort WaikatoNational
Bloxham, Mrs Jenny1949BusinesswomanlistNZF
Bolger, Rt Hon Jim11935FarmerTaranaki/King CountryNational
Bradford, Hon Max1942Administrator, consultantRotoruaNational
Braybrooke, Geoff1935Sales managerNapierLabour
Brown, Peter1939Company directorlistNZF
Brownlee, Gerry1956TeacherIlamNational
Bunkle, Phillida1944University lecturerlistAlliance
Burton, Mark1956Community educ. organiserTaupoLabour
Carter, David1952Businessman, farmerBanks PeninsulaNational
Carter, John1950Local government officerNorthlandNational
Clark, Rt Hon Helen1950University lecturerOwairakaLabour
Corkery, Pam1956JournalistlistAlliance
Creech, Hon Wyatt1946AccountantWairarapaNational
Cullen, Hon Dr Michael1945University lecturerDunedin SouthLabour
Dalziel, Lianne1960Trade unionistlistLabour
Delamere, Hon Tuariki John1950Regional director TPKTe Tai RawhitiNZF
Donald, Rod1957Vol. sector administratorlistAlliance
Donnelly, Hon Brian1949School principallistNZF
Dunne, Hon Peter1954Deputy chief executive officerOhariu/BelmontUnited
Duynhoven, Harry1955TeacherNew PlymouthLabour
Dyson, Ruth1957Employment consultantlistLabour
East, Paul QC21946Barrister and solicitorlistNational
Elder, Hon Jack1949TeacherlistNZF
English, Hon Bill1961FarmerClutha/SouthlandNational
Field, Taito Phillip1952Trade unionistMangereLabour
Fitzsimons, Jeanette1945Organic farmer, environment consultantlistAlliance
Fletcher, Chris21955ManagerEpsomNational
Gerard, Jim31937FarmerlistNational
Gillon, Grant1954EngineerlistAlliance
Goff, Hon Phil1953University lecturerNew LynnLabour
Gordon, Liz1955University lecturerlistAlliance
Gosche, Mark1955Trade unionistlistLabour
Graham, Hon D A M1942Barrister and solicitorlistNational
Gresham, Hon Peter1933AccountantlistNational
Grover, Mr Frank1940Barrister and solicitorlistAlliance
Harré, Laila1966Barrister and solicitorlistAlliance
Hasler, Marie1948BusinesswomanWaitakereNational
Hawke, Joe1940Marae worker, housing consultantlistLabour
Hawkins, George1946TeacherManurewaLabour
Henare, Hon Tau1960Advisory officerTe Tai TokerauNZF
Herlihy, Gavan1947FarmerOtagoNational
Hide, Rodney1956Economic consultantlistACT
Hobbs, Marian1947TeacherlistLabour
Hodgson, Pete1950VeterinarianDunedin NorthLabour
Hunt, Rt Hon Jonathan1938TeacherlistLabour
Jennings, Owen1945FarmerlistACT
Keall, Judy1942ConsultantOtakiLabour
Kelly, Graham1941Trade unionistManaLabour
Kidd, Hon Doug1941Barrister and solicitorKaikouraNational
King, Hon Annette1945Chief executive officerRongotaiLabour
Kirton, Neil21956Health managerlistNZF
Kopu, Manu Alamein1943Vol. sector workerlist Independent, elected asAlliance
Kyd, Warren1939Barrister and solicitorHunuaNational
Lee, Sandra1952Local authority memberlistAlliance
Luxton, Hon John1946FarmerKarapiroNational
Mackey, Janet1953Real estate agentMahiaLabour
McCardle, Hon Peter1955Manager NZESlistNZF
McCully, Hon Murray1953Public relations consultantAlbanyNational
McDonald, Hon Robyn1950Skills trainerlistNZF
McKinnon, Rt Hon Don1939Real estate agentlistNational
McLauchlan, Joy1948Executive officerlistNational
McLean, Murray1949BusinessmanCoromandelNational
Maharey, Steve1953University lecturerPalmerston NorthLabour
Mahuta, Nanaia1970Archivist librarianlistLabour
Mallard, Trevor1954Executive assistantHutt SouthLabour
Mapp, Dr Wayne1952Law lecturerNorth ShoreNational
Mark, Ron1954Businessman, ex army officerlistNZF
Marshall, Hon Denis1943Farmer and company directorRangitikeiNational
Maxwell, Hon Roger1941FarmerlistNational
Moore, Rt Hon Mike1949Freezing workerWaimakaririLabour
Morgan, Tukoroirangi1958Television journalistTe Tai HauauruNZF
Morris, Hon Deborah1970Policy analystlistNZF
Neeson, Brian1945Real estate agentWaipareiraNational
Newman, Dr Muriel1950Tertiary and secondary teacher, business managerlistACT
O'Connor, Damien1958Tourism operatorWest Coast/TasmanLabour
O'Regan, Hon Katherine1946FarmerlistNational
Peck, Mark1953Trade unionistInvercargillLabour
Peters, Hon Winston1945Barrister and solicitorTaurangaNZF
Pettis, Jill1952Education administratorWanganuiLabour
Prebble, Hon Richard1948Barrister and solicitorWellington CentralACT
Quigley, Hon Derek1932Restructuring consultantlistACT
Revell, Ian1948Police officerNorthcoteNational
Robertson, H V Ross1949Industrial engineerManukau EastLabour
Robson, Matt1950Barrister and solicitorlistAlliance
Roy, Eric1948Farmer/company directorlistNational
Ryall, Hon Tony41964AccountantBay of PlentyNational
Samuels, Mr Dover1939Company directorlistLabour
Schnauer, Patricia1942Barrister and solicitorlistACT
Shipley, Hon Jenny1952FarmerRakaiaNational
Shirley, Hon Ken1950Executive directorlistACT
Simcock, Bob1946Deer farmerHamilton WestNational
Simich, Clem1939General managerTamakiNational
Smith, Dr the Hon Lockwood1948Managing directorRodneyNational
Smith, Hon Nick1964EngineerNelsonNational
Sowry, Hon Roger1958Retail managerlistNational
Steel, Tony1941TeacherHamilton EastNational
Sutherland, Larry1951Trade unionistChristchurch EastLabour
Sutton, Hon Jim1941FarmerAorakiLabour
Swain, Paul1951Trade unionistRimutakaLabour
te Heuheu, Georgina1943Consultant, advocate Treaty issueslistNational
Tizard, Judith1956Electorate secretaryAuckland CentralLabour
Turia, Tariana1944Iwi development workerlistLabour
Upton, Hon Simon1958Student, teacherlistNational
Vernon, Belinda1958Financial controllerMaungakiekieNational
Waitai, Rana1943Police superintendentTe Puku o te WhenuaNZF
White, Jill1941NurselistLabour
Williamson, Hon Maurice1951Planning analystPakurangaNational
Wong, Pansy1955AccountantlistNational
Woolerton, R Doug1944FarmerlistNZF
Wright, John1945Motor mechaniclistAlliance
Wyllie, Tutekawa1955Maori fishing lobbyistTe Tai TongaNZF
Yates, Dianne1943Education officerlistLabour
Young, Annabel1956Business advisorlistNational

Two Auckland secondary school pupils in the Legislative Chamber, among 120 young people from all over New Zealand who went to Wellington for a two-day Youth Parliament in May 1997.

WOMEN IN PARLIAMENT

Women in the House
NameElectorateDate electedAge when
first elected
Party

1 died.

2 defeated.

3 resigned.

4 retired.

5 replaced MP who resigned.

Elizabeth McCombsLyttelton1933-35160Labour
Catherine StewartWellington West1938-43257Labour
Mary DreaverWaitemata1941-43254Labour
Mary (Grigg) PolsonMid-Canterbury1942-4345National
Mabel HowardChristchurch East/Sydenham1943-6949Labour
Hilda RossHamilton1945-59161National
Iriaka RatanaWestern Maori1949-6944Labour
Ethel McMillanNorth Dunedin/Dunedin North1953-7551Labour
Esme TomblesonGisborne1960-72243National
Rona StevensonTaupo1963-7252National
Whetu Tirikatene-SullivanSouthern Maori1967-96235Labour
Dorothy JelicichHamilton West1972-75244Labour
Mary BatchelorAvon1972-8745Labour
Marilyn WaringRaglan/Waipa1975-8423National
Colleen DeweLyttelton1975-78245National
Ann HercusLyttelton1978-8736Labour
Margaret ShieldsKapiti1981-90240Labour
Helen ClarkMt Albert/Owairaka198131Labour
Fran WildeWellington Central1981-92332Labour
Ruth RichardsonSelwyn1981-94330National
Anne (Fraser) CollinsEast Cape1984-90232Labour
Judy KeallGlenfield/Horowhenua/Otaki1984-902, 199341Labour
Annette KingHorowhenua/Miramar/Rongotai1984-902, 199339Labour
Katherine O'ReganWaipa/List198438National
Margaret AustinYaldhurst1984-96251Labour/United New Zealand
Sonja DaviesPencarrow1987-93463Labour
Jenny KirkBirkenhead1987-90243Labour
Jenny ShipleyAshburton/Rakaia198735National
Elizabeth TennetIsland Bay1987-96434Labour
Lianne DalzielChristchurch Central/List199030Labour
Christine FletcherEden/Epsom199035National
Marie HaslerTitirangi/Waitakere1990-932, 199642National
Gail McIntoshLyttelton1990-93235National
Joy McLauchlanWestern Hutt/List199042National
Margaret MoirWest Coast1990-93249National
Judith TizardPanmure/Auckland Central199034Labour
Ruth DysonLyttelton/List199336Labour
Pauline GardinerWellington-Karori1993-96246National/United New Zealand
Sandra LeeAuckland Central/List199341Alliance (Mana Motuhake)
Janet MackeyGisborne/Mahia199340Labour
Jill PettisWanganui/Whanganui199341Labour
Suzanne SinclairTitirangi1993-96247Labour
Jill WhiteManawatu/List199352Labour
Dianne YatesHamilton East/List199350Labour
Donna Awatere HuataList199647ACT
Rev. Ann BattenList199652NZ First
Jenny BloxhamList199647NZ First
Phillida BunkleList199652Alliance (Green)
Pam CorkeryList199640Alliance (NLP)
Jeanette FitzsimonsList199651Alliance (Green)
Dr Liz GordonList199641Alliance (NLP)
Laila HarreList199630Alliance (NLP)
Marian HobbsList199649Labour
Manu Alamein KopuList199653Independent, elected as Alliance (Mana Motuhake)
Robyn McDonaldList199645NZ First
Nanaia MahutaList199626Labour
Deborah MorrisList199626NZ First
Dr Muriel NewmanList199646ACT
Patricia SchnauerList199654ACT
Georgina te Heu HeuList199653National
Tariana TuriaList199652Labour
Belinda VernonMaungakiekie199638National
Pansy WongList199641National
Annabel Young5List199740National

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.

Prime Minister Jenny Shipley with Deputy Prime Minister Winston Peters and the new Cabinet, December 1997.

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

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

The Executive Council is a formal body with formal functions, whereas 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 vehicle for law-making by the executive. The authority to make statutory regulations, for example, is delegated by Parliament to the Governor-General in Council.

The Cabinet is, in effect, the highest policy-making body of Government. It is the main vehicle by which the executive decides on major policy issues and legislative proposals, and it 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 once a decision is made it will be publicly supported by all members of the Government. The Cabinet Office provides support services for the Cabinet and its committees. The current Secretary of the Cabinet is also the Clerk of the Executive Council.

Table 3.8. NEW ZEALAND GOVERNMENT, AT 8 DECEMBER 1997

Governor-General:
His Excellency The Rt Hon Sir Michael Hardie Boys, gnzm, gcmg (assumed office 21 March 1996). Official Secretary: Hugo Judd, cvo
Executive Council:
Membership of the Executive Council comprises all ministers with the Governor-General presiding. The Clerk of the Executive Council is Marie Shroff, cvo.
The Cabinet:

Source: Cabinet office

1Hon Jenny Shipley, Prime Minister, Minister of Women's Affairs, Minister in Charge of the NZ Security Intelligence Service.
2Hon Winston Peters, Deputy Prime Minister, Treasurer.
3Hon Wyatt Creech, Minister of Education (also including responsibility for the National Library), Minister for Courts, Leader of the House, Minister for Ministerial Services.
4Rt Hon Bill Birch, Minister of Finance (also including responsibility for the Government Superannuation Fund Department), Minister of Revenue.
5Hon John Luxton, Minister of Commerce, Minister of Fisheries, Minister of Lands, Minister for Biosecurity, Minister for Industry, Associate Minister of Agriculture.
6Hon Bill English, Minister of Health, Associate Minister of Revenue.
7Hon Tau Henare, Minister of Maori Affairs, Minister for Racing, Associate Minister for Sport, Fitness and Leisure.
8Hon Maurice Williamson, Minister of Transport, Minister of Research, Science and Technology, Minister of Statistics, Minister of Local Government, Minister of Communications, Minister for Information Technology.
9Hon Roger Sowry, Minister of Social Welfare, Minister in Charge of War Pensions, Associate Minister of Health.
10Hon Peter McCardle, Minister of Employment.
11Hon Douglas Graham, Attorney-General (also including responsibility for the Serious Fraud Office), Minister of Justice, Minister in Charge of Treaty of Waitangi Negotiations.
12Dr Hon Lockwood Smith, Minister of Agriculture, Minister of Forestry, Minister for International Trade, Minister Responsible for Contact Energy Ltd.
13Hon Jack Elder, Minister of Police, Minister of Internal Affairs, Minister of Civil Defence.
14Rt Hon Don McKinnon, Minister of Foreign Affairs and Trade, Minister of Pacific Island Affairs, Minister for Disarmament and Arms Control.
15Hon Max Bradford, Minister of Labour, Minister of Defence, Minister of Immigration, Minister of Energy, Minister of Business Development.
16Hon Simon Upton, Minister of State Services, Minister for the Environment, Minister of Cultural Affairs, Minister for Crown Research Institutes, Associate Minister of Foreign Affairs and Trade.
17Hon Tuariki John Delamere, Minister of Customs, Minister in Charge of the Valuation Department, Minister in Charge of the Public Trust Office, Associate Treasurer, Associate Minister of Health.
18Hon Dr Nick Smith, Minister of Conservation, Minister of Corrections, Associate Minister of Social Welfare, Associate Minister of Immigration.
19Hon Murray McCully, Minister of Housing, Minister of Tourism, Minister for Accident Rehabilitation and Compensation Insurance, Minister for Sport, Fitness and Leisure.
20Hon Tony Ryall, Minister for State Owned Enterprises (Responsible for all SOEs except Contact Energy Ltd), Minister in Charge of the Audit Department, Minister Responsible for Radio New Zealand, Associate Minister of Justice.
Ministers Outside Cabinet:
21Hon Brian Donnelly, Minister Responsible for the Education Review Office, Associate Minister of Education, Associate Minister of Pacific Island Affairs.
22Rt Hon James Bolger, Minister of State, Associate Minister of Foreign Affairs and Trade (special responsibility for APEC) [resigned 6 April 1998].
23Hon Deborah Morris, Minister of Youth Affairs, Associate Minister of Women's Affairs, Associate Minister for Accident Rehabilitation and Compensation Insurance, Associate Minister for the Environment.
24Hon Robyn McDonald, Minister for Senior Citizens, Minister of Consumer Affairs.

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. Maori and 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 Maori Option—see separate article). The electoral rolls are maintained by the Electoral Enrolment Centre, a division of New Zealand Post.

Table 3.9. VOTING PATTERNS: 1981-1996

YearElectors on Master RollValid votes1Informal votes1Special votes disallowedVotes cast to electors on Master Roll

1 Party votes in 1996.

2 There were 2,061,746 valid electorate votes cast in 1996, and 18,796 informal electorate votes.

Source: Ministry 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
19932,321,6641,922,79611,36443,93285.20
19962,418,5872,072 3591,28 1831,254,63388.28

Voting. The conduct of polls is the responsibility of the Chief Electoral Office of the Ministry of Justice, and is controlled by a returning officer in each electorate, who arranges voting facilities and staff, conducts the election, supervises counting of votes, and declares the result. Only people whose names are 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.

Electoral boundaries. The boundaries of electorates are revised every five years after the Census of Population and Dwellings, and the new boundaries come into effect at the expiry of the parliamentary term during which the revision is finalised. The revision is based on figures for the electoral population provided by Statistics New Zealand.

The electoral boundaries are defined by the Representation Commission, which has seven members: a chairperson; four officials (the Surveyor-General, the Government Statistician, the Chief Electoral Officer, and the Chairman of the Local Government Commission); and two members nominated by Parliament to represent the Government and the Opposition.

When determining the boundaries of the Maori electoral districts, the commission is joined by the Chief Executive Officer of Te Puni Kokiri and two Maori nominated by Parliament to represent the Government and the Opposition.

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

VOTER TURNOUT
Percentage of enrolled electors voting at general elections

The 1995 Representation Commission report set electoral boundaries for the election of the first MMP Parliament. This required a large reduction in the number of electorates. Under the Electoral Act 1993, the South Island is allocated 16 general electorates. The numbers of North Island General and of Maori electorates are then calculated so that their electoral populations are approximately the same as those for South Island General electorates. The commission is also required to give consideration to community of interest, facilities of communications, topographical features, and any projected variation in the general electoral population of the electorates.

1995 ELECTORAL DISTRICTS - NORTH ISLAND

Based on the South Island General electoral population of 827,945, the South Island General electorate quota was 51,747, resulting in 44 North Island General electorates (quota 51,866) and 5 Maori electorates (quota 52,844). All electorates have an allowance of 5 percent above or below their electoral population quota. Of the 60 General electorates, 28 have Maori names.

As there was major overhaul of boundaries with the reduction of general electorates from 99 to 60, there were large numbers of objections (885) and counter-objections (446).

General election results. A triennial election of Members of Parliament was last held on 12 October 1996. The previous election was held on 6 November 1993. The total number of electors on the master roll for the 1996 election was 2,418,587. A total of 2,080,542 votes were cast, representing 88.3 percent of electors on the master roll.

1995 ELECTORAL DISTRICTS - SOUTH ISLAND

Table 3.10. GENERAL ELECTION RESULTS1

Political partyNumber of MPs
198419872199019931996

1 The election dates were: 14 July 1984, 15 August 1987, 27 October 1990, 6 November 1993, 12 October 1996.

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

Source: Ministry of Justice

ACT    8
Alliance   213
Democrats2    
Labour5657294537
National3740675044
New Labour  1  
New Zealand First   217
United New Zealand    1

General Licensing Poll. In 1990 the national triennial liquor licensing poll was abolished. Four local restoration poll votes were held at the same time as the 1996 General Election, in Eden, Grey Lynn, Roskill and Tawa. Local restoration received a majority in Grey Lynn.

Political party expenditure for the 1996 election

There are limits under the Electoral Act to the amount that can be spent on an election campaign by registered political parties and by individual candidates. For parties the maximum expenditure limit for submitting a party list is $1 million, with an additional amount of $20,000 for each electorate contested. Individual candidates are not allowed to spend more than $20,000.

The act specifies three classes of election campaign activity:

  • Advertising of any kind.

  • Radio or television broadcasting.

  • Publishing, issuing, distributing, or displaying addresses, notices, posters, pamphlets, handbills, billboards, and cards.

Election broadcasting time and state funds to pay for broadcasting are allocated to eligible political parties by the Electoral Commission.

All registered parties must send an audited return of their election expenses to the Electoral Commission within 70 days of the election results announcement.

PartyParty expenditureState funds for election broadcasting

*The ACT return did not include sub-totals for the three classes of activity. ACT submitted that it was sufficient to record only the total of its party election expenses. This is being tested in the High Court.

Source: Electoral Commission

 $ 
ACT*1,653,16993,740
National1,426,067540,377
NZ First858,255250,055
Labour843,480436,400
Alliance558,059251,949
Christian Coalition313,40892,954
Progressive Green70,65035,322
United49,12093,407
Conservative45,94035,356
Natural Law24,20835,371
Green Society18,87323,031
Libertarianz15,072 
Aotearoa Legalise Cannabis14,89734,933
Ethnic Minority8,19022,606
Animals First3,750 
McGillicuddy Serious3,33935,371
Advance New Zealand2,69423,028
NZ Superannuitants and Youth Action1,74923,032
Te Tawharau1,51822,806

The information sent out by electronic and press media for the referendum on compulsory superannuation included 4,700 tape cassettes which were posted to blind or partially sighted people by the Royal New Zealand Foundation for the Blind, in July-August 1997.

Table 3.11. GENERAL ELECTIONS—VOTES FOR POLITICAL PARTIES

Political partyValid votesPercentage of total valid votes
19841987199019931996119841987199019931996

1 Party votes.

2 Christian Coalition 1996.

Source: Ministry of Justice

ACT----126,442----6.10
Alliance---350,064209,347---18.2110.10
Christian Heritage2---38,74989,716---2.024.33
Democrats147,162105,09130,455--7.635.741.67--
Green--124,915----6.85--
Labour829,154878,448640,915666,759584,15942.9847.9635.1434.6828.19
Mana Motuhake5,9899,78910,869--0.310.530.60--
National692,494806,305872,358673,892701,31535.8944.0247.8235.0533.84
New Labour--94,171----5.16--
New Zealand First---161,481276,603---8.4013.35
United New Zealand----18,245----0.88
Other18,01726,83850,40931,85166,5320.941.462.761.663.21
    Total valid votes1,929,2011,831,7771,824,0921,922,7962,072,359100.00100.00100.00100.00100.00
Informal votes7,56511,18410,18011,3648,183...............
        Total1,936,7661,842,9611,834,2721,934,1602,080,542...............

Table 3.12. POLITICAL PARTIES IN THE 1996 GENERAL ELECTION

 Constituency seats contestedParty list candidates

Source: Ministry of Justice

ACT6256
Alliance6565
Aotearoa Legalise Cannabis419
Christian Coalition3741
Independent28 
Labour6560
Mana Maori718
McGillicuddy Serious4565
Natural Law6465
NZ Conservative620
New Zealand First6562
National6465
Progressive Greens2315
The Libertarianz224
United New Zealand2529
Other4966
    Total candidates611670

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 legislation was amended in 1995 to place retired High Court Judges conducting Commissions of Inquiry in the same position as serving High Court Judges acting in that position and to clarify that serving and High Court Judges acting as Commissioners can punish a person guilty for contempt of the Commission as if that person were guilty of contempt of Court.

The Department of Internal Affairs administers the Commissions of Inquiry Act 1908 and provides services to commissions. These inquiries are not part of the justice system, nor are they part of the conventional administrative bureaucracy.

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. (A list of shortened titles of all the royal commissions held from 1868 to 1989, with the years of publication of reports, can be found in the 1990 Yearbook, page 71.)

3.3 State sector

The state sector includes the New Zealand Public Service, which is made up of 39 government departments, plus Crown entities and state owned enterprises (SOEs). The state sector also includes the New Zealand Police and the New Zealand Defence Force.

At 30 June 1997 the number of staff employed in the Public Service departments (excluding therefore Crown entities and SOEs) was 31,662 (calculated on a full-time equivalent basis). When the reform of the state sector began in the 1980s, about 70,000 people were permanent employees in government departments. Many of the jobs which were in government departments have shifted to Crown entities, SOEs, or the private sector. Today the Public Service is characterised by relatively small departments which have quite sharply defined roles in policy advice, service delivery, regulatory, or sectoral funding functions. Some bigger departments perform a combination of roles.

State sector reform

The reform of the state sector that has occurred in New Zealand since 1986 is well known throughout the world for its comprehensiveness and impact on New Zealand's state sector.

Three pieces of legislation have been at the centre of state sector reforms in New Zealand: the State-Owned Enterprises Act 1986, the State Sector Act 1988, and the Public Finance Act 1989. A fourth piece of legislation, the Fiscal Responsibility Act, was added in 1994. The Fiscal Responsibility Act requires the government to manage the Crown's finances in ways that:

  • increase the transparency of policy intentions and the economic and fiscal consequence of policy;

  • bring a long-term (as well as annual) focus to budgeting;

  • disclose the aggregate impact of a Budget in advance of the detailed annual budget allocations;

  • ensure independent assessment and reporting of fiscal policy; and

  • facilitate Parliamentary and public scrutiny of economic and fiscal information and plans.

The act also requires the Crown to take a strategic view of the objectives of Government, publishing the Budget Policy Statement (BPS) and related documents. This desire to view the activities of the government in a strategic manner is one of the strengths of the new management system which operates in government departments. The government devises and publishes its key medium term objectives for the country, in social and economic policy, as strategic result areas (SRAs). These SRAs are converted by public service departments into contributory key result areas (KRAs) for each department. KRAs are a basis for both departmental planning and the assessment of departmental performance.

The government published its 1997-2000 SRAs in June 1997. They cover objectives in economic growth, enterprise and innovation, external linkages, education and training, economic and social participation, safer communities, health and disability services, the Treaty of Waitangi, and protecting and enhancing the environment.

Decentralisation and devolution of managerial decision-making responsibilities to individual departments have altered the roles of the previously powerful ‘control agencies’—the Treasury and the State Services Commission. The Treasury, the State Services Commission and the Department of the Prime Minister and Cabinet—now ‘central agencies’ rather than ‘control agencies’—fulfil many of the functions of the state sector's ‘corporate office’, with responsibilities for ensuring coordination, and collective approaches where these are necessary.

Departments do not have absolute autonomy in the new system. There is a high level of interdepartmental work in the interests of co-ordination and good government. Recent examples of guidelines to assist the public service that have been produced by central agencies include Working Under Proportional Representation: A Reference for the Public Service and Public Service Principles, Conventions and Practice, both published by the State Services Commission.

During 1997 the Government announced major structural changes which involve four government departments. The Ministry of Agriculture and the Ministry of Forestry are being merged to form a new Ministry of Agriculture and Forestry, operational in March 1998. A new agency, which will deliver income support services and employment services to working age beneficiaries, is being formed by bringing together parts of the Department of Social Welfare and the Department of Labour. This new agency is due to be established and operating in October 1998.

The State Services Commissioner and the State Services Commission

The State Sector Act 1988 provides for a State Services Commission and for the positions of a State Services Commissioner (the commission's chief executive) and Deputy State Services Commissioner. Much of the work of the State Services Commission is in support of the specific responsibilities of the commissioner.

The commissioner's principal functions relate to the departments of the public service. They include:

  • Recommending the most suitable candidates for chief executive appointments in the public service.

  • Reviewing the performance of public service chief executives.

  • Developing public service chief executives and, in consultation with chief executives, developing public service senior managers.

  • Advising on industrial relations and personnel policies.

  • Advising on performance management, service-wide systems, and organisational structures.

The commission also helps the government to manage 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 3.13. CHIEF EXECUTIVES OF GOVERNMENT DEPARTMENTS*

DepartmentTitleName

*As at 1 March 1998.

1 Until March 1998.

2 From March 1998

Source: State Services Commission

Agriculture, Ministry of1Director-GeneralProf Bruce Ross
Agriculture and Forestry, Ministry of2Chief ExecutiveProf Bruce Ross
Audit DepartmentController and Auditor-GeneralDavid Macdonald
Commerce, Ministry ofSecretaryPaul Carpinter
Conservation, Department ofDirector-GeneralHugh Logan
Corrections, Department ofChief ExecutiveMark Byers
Courts, Department forChief ExecutiveWilson Bailey
Crown Law OfficeSolicitor-GeneralJohn McGrath QC
Cultural Affairs, Ministry ofChief ExecutiveMarilyn Goddard (Acting)
Customs Service, New ZealandComptrollerGraeme Ludlow
Defence, Ministry ofSecretaryGerald Hensley
Education, Ministry ofSecretaryHoward Fancy
Education Review OfficeChief Review OfficerDr Judith Aitken
Environment, Ministry for theSecretaryDenise Church
Fisheries, Ministry ofChief ExecutiveWarwick Tuck
Foreign Affairs and Trade, Ministry ofSecretaryRichard Nottage
Forestry, Ministry of1SecretaryProf Bruce Ross (Acting)
Government Superannuation FundChief ExecutiveMel Smith (Acting)
Health, Ministry ofDirector-GeneralDr Karen Poutasi
Housing, Ministry ofChief ExecutiveDavid Smyth
Inland Revenue DepartmentCommissionerGraham Holland
Internal Affairs, Department ofChief ExecutiveDr Roger Blakeley
Justice, Ministry ofSecretaryColin Keating
Labour, Department ofSecretaryJohn Chetwin
Land Information New ZealandDirector-GeneralDr Russ Ballard
Maori Development, Ministry ofChief ExecutiveDr Ngatata Love
National LibraryNational LibrarianChristopher Blake
Pacific Island AffairsChief ExecutiveFuimaono Les McCarthy
Prime Minister and Cabinet, Department ofChief ExecutiveSimon Murdoch
Public Trust OfficePublic TrusteeDavid Hutton
Research, Science and Technology, Ministry ofChief ExecutiveDr James Buwalda
Serious Fraud OfficeChief ExecutiveDavid Bradshaw
Social Welfare, Department ofDirector-GeneralMargaret Bazley
State Services CommissionState Services CommissionerMichael Wintringham
Statistics New ZealandGovernment StatisticianLen Cook
Transport, Ministry ofSecretaryStewart Milne
The TreasurySecretaryDr Alan Bollard
Valuation New ZealandValuer-GeneralRob Hutchison
Women's Affairs, Ministry ofSecretaryJudy Lawrence
Youth Affairs, Ministry ofChief ExecutiveAnnette Dixon

Functions of government departments

The functions of central government are under a continual process of review. The following account of departments was correct at March 1998. World Wide Web homepage addresses are given where available at the time of going to press.

Agriculture, Ministry of—Te Manatu Ahuwhenua. The Ministry of Agriculture (MAF) was established by the Ministry of Agriculture and Fisheries (Restructuring) Act 1995. MAF administered and developed standards and systems, managed agricultural security and provided policy advice. MAF Quality Management (the service delivery arm of MAF) was internally separated from the rest of the organisation on 1 July 1995, pending a review of its activities. MAF's programmes aimed 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 ensured that our export primary produce meets agreed standards.

On 1 March 1998 the Ministries of Agriculture and Forestry merged together into a new Ministry of Agriculture and Forestry.

Agriculture and Forestry, Ministry of—Te Manatu Ahuwhenua, Ngaherehere. The new Ministry of Agriculture and Forestry (MAF) came into being on 1 March 1998, following the merger of the Ministries of Agriculture and Forestry. The core MAF consists of eight business groups: Policy, Regulatory authority, Operations, Forest management, Corporate services, Corporate human resources, Corporate finance, Corporate information. MAF Quality Management, the service delivery arm of MAF, will be temporarily integrated into the new ministry until decisions are made about its long-term structure.

MAF's key functions are to ensure agriculture, forestry and horticulture continue to make the best contribution to New Zealand's sustainable development and economic growth. The new MAF continues the work of its constituent ministries in developing, administering and certifying standards and systems, facilitating market access, managing agriculture, forestry and horticulture security, and providing policy advice. It will also manage the Crown's forestry interests and commitments.

MAF's programmes aim to protect New Zealand's competitive advantage as an export nation by monitoring and protecting its animals, plants, forests and seafood against the introduction of exotic pests and diseases. See chapters 18: Agriculture and 19: Forestry, [www.maf.govt.nz]

Audit Office—Te Mana Arotake. See ‘Controller and Auditor-General’ further on in this section. [www.netlink.co.nz/~oag/home.htm]

Commerce, Ministry of—Te Manatu 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. [www.moc.govt.nz]

Conservation, Department of—Te Papa Atawhai. The Department of Conservation (Te Papa Atawhai) is the central government organisation charged with conserving the natural and historic heritage of New Zealand for the benefit of present and future New Zealanders.

PUBLIC SERVICE
Staff numbers, full-time equivalents (FTEs)

Its specific aims are: conservation of New Zealand's natural and historic resources; appropriate use of these resources by the public; and public awareness of, support for, and enhancement of a conservation ethic, both within New Zealand and internationally. See chapters 1: Geography and 16: Land and environment. [www.doc.govt.nz]

Corrections, Department of. The Department of Corrections manages all custodial and noncustodial sentences imposed by the courts on offenders. This includes prison sentences and community corrections, such as periodic detention.

The Department of Corrections has over 3,900 full- and part-time staff responsible for: managing offenders in prison or on community-based sentences including providing work programmes and activities to help them reduce future offending; giving specialist psychological advice and assistance with offenders' needs; providing information to judges to assist them in sentencing offenders, and to the Parole Board and district prisons boards; and providing advice to Government about the most effective policies for corrections services.

There are eight services and groups in the department, working together to reduce re-offending: Public Prisons, Community Corrections, Psychological Service, Internal Audit. Corrland (responsible for the department's farms and forests), Policy and Service Development. Contracts, Strategic Development and Finance. See section 10.3: Corrections system.

Courts, Department for—Te Tari Kooti. The Department for Courts was established on 1 July 1995. Its predecessor was the Courts and Tribunals Group of the Department of Justice.

The department has four operational units, namely case processing (responsible for the administration of courts and tribunals and for providing support to the Judiciary); Collections (responsible for the enforcement of financial court orders); Maori Land Court (responsible for the administrative support of the Maori Land Court and the Maori Appellate Court and for the administration of Maori land records of ownership and title); and Waitangi Tribunal (responsible for administrative support to the Waitangi Tribunal). See chapter 10: Justice and law.

Crown Law Office. The Crown Law Office provides legal advice and representation to government in matters affecting the Crown, and in particular, government departments. It has two primary aims. First, to ensure that the operations of executive government are conducted lawfully and second, to ensure that the government is not prevented, through the legal process, from lawfully implementing its chosen policies. The work of the Crown Law Office as a whole contributes to the government's current strategic goals of protecting the legal interests and supporting the responsibilities of the executive government and its agencies, maintaining law and order, and serving the interests of justice in the community. See section 10.1: Legal system.

Cultural Affairs, Ministry of—Te Manatu Tikanga-a-Iwi. The aim of the ministry is to encourage the most efficient use of public resources to maximise understanding and appreciation of, access to and participation in, New Zealand's culture and to promote the enhancement of New Zealand's cultural identity. See chapter 12: Arts. [www.moca.govt.nz]

Customs Service, New Zealand—Te Mana Arai O Aotearoa. The New Zealand Customs Service is the government's primary border management agency. It implements a range of government policies both as principal, and on an agency basis, within the context of customs, immigration and other border-related enactments. The service assists in the delivery of policies in respect of the Government's goals of a more competitive enterprise economy and increased participation in international trade. In carrying out its functions at the border, the service contributes to these goals, implementing appropriate programmes in co-operation with the business sector. See section 25.1: Customs.

The core business of the New Zealand Customs Service is the management of the border, providing assistance and advice to industry (manufacturers, importers and exporters), and the preservation of the tax base in its revenue collection function.

Defence, Ministry of—Te Manatu 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 4.4: Defence. [www.govt.nz\defence]

Defence Force, New Zealand—Te Ope Kaatua O Aotearoa. The primary purpose of the New Zealand Defence Force is to protect the sovereignty and advance the well-being of New Zealand by maintaining a level of armed forces sufficient to deal with small contingencies affecting New Zealand and its region, and to be capable of contributing to collective efforts where our wider interests are involved. See section 4.4: Defence.

Education, Ministry of—Te Tahuhu o te Matauranga. The ministry is responsible for providing policy advice to the government on early childhood, compulsory and post-compulsory education, including employment-related education and training; ensuring the effective, efficient and equitable implementation of the government's policies; advising on the optimal use of resources allocated to education; and providing an education policy perspective to a range of economic and social policy issues. See chapter 9: Education. [www.minedu.govt.nz]

Education Review Office—Te Tari Arotake Matauranga. The Education Review Office (ERO) reports publicly on the quality of education in all New Zealand schools and early childhood centres, including private schools, kura kaupapa Maori (Maori language immersion schools) and nga kohanga reo (Maori language early childhood groups). ERO actively supports and promotes high quality decision-making on the education provided for New Zealand's young people. See section 9.1. [www.ero.govt.nz]

Environment, Ministry for the—Te Manatu mo te Taiao. The ministry's role is to provide policy advice to the government that promotes sustainable management of the environment; and to encourage sustainable management through the administration of environmental statutes, advocacy, education and advice.

The Environment 2010 Strategy includes the government's environmental goals and principles, and sets out an agenda for action covering land; water; air; indigenous habitats and biological diversity; pests, weeds and diseases; fisheries; energy; transport; waste, contaminated sites and hazardous substances; climate change; and the ozone layer.

The Strategy proposes an Environmental Management Agenda to help achieve the vision of ‘a clean, healthy and unique environment, sustaining nature and people's needs and aspirations’ by integrating environmental, economic and social policy; establishing a coherent framework of law; sharpening the policy tools; building up the information base; promoting education for the environment; and involving people in decision making.

Besides the Environment Act 1986 under which it was set up, the ministry is responsible for the Soil Conservation and Rivers Control Act 1941, the Resource Management Act 1991, the Ozone Layer Protection Act 1996, and the Hazardous Substances and New Organisms Act 1996. See section 16.2: Environmental and resource management. [www.mfe.govt.nz]

Fisheries, Ministry of—Te Tautiaki i nga tini a Tangaroa. The Ministry of Fisheries (MFish) was established on 1 July 1995. Its function is to ensure that the use of New Zealand's fisheries resource is sustainable. MFish achieves this by assisting in the conservation and management of New Zealand's marine fisheries by providing a range of services in the areas of fisheries management, policy setting advice and enforcement. See section 19.3: Fisheries. [www.fish.govt.nz]

Foreign Affairs and Trade, Ministry of—Te Manatu Aorere. The Ministry of Foreign Affairs and Trade conducts the government's business with other 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 influences other governments in New Zealand's favour.

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. The ministry operates some 48 posts overseas. Their primary task is to develop the official relationship between the New Zealand Government and the country or international organisation concerned, through discussions and contacts with local political leaders, officials, business executives and media representatives. See chapter 4: International relations. [www.mft.govt.nz]

Forestry, Ministry of—Te Manatu Ngaherehere. The ministry is the government's forestry agency, ensuring that forestry makes the best possible contribution to New Zealand's sustainable development and economic growth in terms of GDP, foreign direct investment, employment opportunities, foreign exchange earnings, and environmental sustainability. Key business areas are: Policy advice; Forestry facilitation and export certification; Administration of grants, leases and loans; Administration of indigenous forestry provisions; Forestry biosecurity policy advice; and Forest biosecurity pest and disease prevention services.

On 1 March 1998 the Ministries of Forestry and Agriculture merged together into a new Ministry of Agriculture and Forestry. See sections 19.1 and 19.2.

Government Superannuation Fund Department—Te Putea Penihana Kawanatanga. The function of the department is to provide professional management of superannuation schemes constituted under the Government Superannuation Fund Act 1956. This includes advising on policy matters, administering the schemes and investing the schemes' funds, and administering and monitoring contracts for scheme management.

Health, Ministry of—Manatu Hauora. The Ministry of Health's purpose is “Healthy New Zealanders”. The ministry provides policy advice to the government on health and disability support services. It also assists the Minister of Health negotiate with and monitor the performance of the Health Funding Authority (successor to the Transitional Health Authority), and a range of Crown entities against their formal accountability documents with the Crown. The ministry administers health sector legislation and collects and disseminates health information.

The ministry works in five groups. The Sector Policy Group provides advice on issues relating to health sector strategy, funding and regulation. The Implementation Group manages the government's contract negotiation and monitoring and the regulatory environment. It also advises on operational policy for personal health and disability support services. The role of the Public Health Group is to monitor and report on the state of public health in New Zealand. The purpose of Te Kete Hauora is to lead and influence the strategic direction of Maori health by providing informed policy advice to government. The Corporate and Information group is concerned with the internal operation of the ministry and the provision of health information to clients. See chapter 8: Health and safety. [www.moh.govt.nz]

THE PUBLIC SERVICE
Ratio of male to female staff (head count)

Housing, Ministry of—Te Whare Ahuru. 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 chapter 22: Housing. [www.minhousing.govt.nz]

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 premiums on behalf of the Accident Rehabilitation and Compensation Insurance Corporation. Inland Revenue also administers family assistance for working families, child support, and student loan repayments. See section 28.2: Taxation. [www.ird.govt.nz]

Internal Affairs, Department of—Te Tari Taiwhenua. The department develops policy and provides services which deal with: (a) strengthening national identity (includes—Births, Deaths and Marriages, National Archives, Passports, Citizenship, Translation Services, Historical Publications, Dictionary of New Zealand Biography, Heritage Property, Heritage and Identity Policy, NZ Gazette and Waitangi Day Commemorations); (b) building stronger communities (includes—Ethnic Affairs, Civil Defence, Community Information, Community Grants, Censorship Inspection and Enforcement, Gaming and Racing Policy, Gaming Licensing and Enforcement, Casino Supervision and Inspection, Local Government, Local Government Commission, Lottery Grants, Policy for Buildings, Community, Emergency Services and Fire Prevention and Sport, Fitness and Leisure); (c) supporting executive government (includes—Ministerial Services, Parliamentary On-line Information systems, VIP Transport, Visits and Ceremonial, Administration of Public Trusts and Commissions of Inquiry.) [www.dia.govt.nz]

Justice, Ministry of—Te Manatu Ture. The ministry provides high quality strategic and policy advice across the justice sector. Justice policy is based primarily on a concern for the rights and responsibilities of the individual in regard to his/her relationships with other individuals, communities and the state. The ministry is also concerned with advice on fundamental constitutional matters such as rights, the body of law and democratic processes, and the relationships between Treaty partners; access to workable and accepted dispute resolution mechanisms; fair and efficient markets; preventing and minimising the impact of crime; and the effective operation of agencies responsible for delivering these services.

The ministry manages contracts with Crown entities and other entities funded through Vote Justice and manages the conduct of parliamentary elections, by-elections, referenda and polls. See chapter 10: Justice and law. [www.justice.govt.nz]

Labour, Department of—Te Tari Mahi. The department is the government's principal labour market agency which: provides analysis on the operation of the labour market; provides Accident Rehabilitation and Compensation Insurance policy advice; develops, implements, monitors and reviews the regulatory framework for industrial relations; develops a regulatory framework and delivers strategies to promote occupational safety and health; provides employment assistance to all New Zealand residents who are unemployed and are seeking work; provides information, advice, facilitation and brokerage services to communities and groups to assist them to generate employment opportunities at a local level; promotes co-ordination of employment-related organisations at the local level; develops and implements immigration policy and legislation concerning the entry of migrants and visitors to New Zealand; and manages the government's relationship with the International Labour Organisation and other international institutions with an interest in the labour market.

Among the legislation administered by the department are the Accident Rehabilitation and Compensation Insurance Act 1992; Employment Contracts Act 1991; Equal Pay Act 1972; Health and Safety in Employment Act 1992; Holidays Act 1981; Immigration Act 1987; and Minimum Wage Act 1983. [www.dol.govt.nz]

Land Information New Zealand—Toitu te whenua. This department, established in July 1996, is responsible for the land-related policy, regulatory and core government service delivery functions.

Land Information New Zealand advises the government, administers the Crown's interests in land and makes government-held information available to the public. Its areas of responsibility are land titles (land registration and search facilities), survey system (administration of the survey infrastructure), Crown property (administration of Crown land, disposal of surplus Crown land and provision of advice to the government) and topography/hydrography (provision of digital databases and core topographic mapping). See chapter 16: Land and environment. [www.linz.govt.nz]

Maori Development, Ministry of—Te Puni Kokiri. Te Puni Kokiri was established as a policy ministry on 1 January 1992 and replaced Manatu Maori (the Ministry of Maori Affairs) and Te Tira Ahu Iwi (the Iwi Transition Agency). The ministry is the government's principal adviser on the Crown's relationship with iwi, hapu and Maori, and on key government policies as they affect Maori.

New Zealand Post handled the successful delivery and return of the first referendum by postal vote. Voting papers went to 2.475 million voters nation-wide, with a record 93 percent of the eligible voting population enrolled on the electoral roll.

In carrying out this role Te Puni Kokiri's functions are to: (a) provide strategic leadership advice on Maori development issues and on the Crown's relationship with iwi, hapu, and Maori; (b) provide advice on sectoral issues; (c) monitor the performance of mainstream government departments in addressing the parity gap between Maori and non-Maori; (d) facilitate consultation between the Crown, its agencies, and iwi, hapu and Maori, on policies affecting Maori, and the development of the relationship between the Crown and Maori. Te Puni Kokiri is organised into seven branches: Treaty compliance; Economic development; Social policy; Monitoring and evaluation; Legal and law reform; Corporate services; and Regional development, which has a unit in the Wellington head office and 13 offices throughout the country. See section 6.4: Maori society. [www.tpk.govt.nz]

National Library of New Zealand—Te Puna Matauranga o Aotearoa. The unique role of the National Library is to collect and maintain literature and information resources that relate to New Zealand and the Pacific, to make this information readily available, and to preserve the documentary heritage of this country for future generations. The National Library aids better access to information for New Zealanders by supporting the activities of other New Zealand libraries, including public, university and school libraries, and by collecting and preserving the material which is the ‘memory’ of New Zealand. The library gives policy advice to the government on access to information in New Zealand. See section 12.3: Books and libraries. [www.natlib.govt.nz]

National Provident Fund. The National Provident Fund is New Zealand's largest superannuation fund and provides superannuation schemes both for employer/employee groups and for individual members. National Provident Fund has been closed to new members since 1991. The fund comprises 16 separate superannuation schemes.

Office of Treaty Settlements—Te Tari Whakatau Take e pa ana ki te Tiriti o Waitangi. The office provides policy advice to the government on issues concerning Treaty of Waitangi claims and on specific claims; negotiates Treaty claims; and implements settlements. It also acquires, manages, transfers and disposes of Crown-owned land for Treaty claim and related purposes. See section 6.4: Maori society.

Pacific Island Affairs, Ministry of. The ministry exists to promote the development of Pacific peoples in New Zealand in a way that reflects Pacific cultural values and aspirations, so that Pacific peoples can participate and contribute fully to New Zealand's social, cultural and economic life.

It contributes to this through the provision of policy advice on significant issues; encouraging government agencies to take responsibility for meeting the aspirations of Pacific people; influencing and monitoring the implementation of policies; and disseminating information and consulting with Pacific people. A further role of the ministry is to design, implement and pilot programmes, some of which are in partnership with mainstream agencies. See section 6.5: Pacific Island population.

Police, New Zealand—Nga Pirihimana o Aotearoa. The police aim to serve the community through meeting the following strategic goals: to reduce the incidence and effects of crime; to protect property, enhance public safety and maintain law and order; to improve the detection and apprehension of offenders; to improve the safe and efficient use of roads; to implement and maintain community-orientated policing; to strengthen public confidence and satisfaction with police services; and, to achieve excellence and equity in the management of people and resources.

Their vision is ‘Safer Communities Together’ which gives direction to the principal operational strategy of Community Oriented Policing for the delivery of policing services. The New Zealand Police is a state agency, which services all New Zealand. See chapter 10: Justice and law.

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, such as the operation of the Crime Prevention Unit and the Taskforce on Positive Ageing. See section 3.2: Parliament and the Cabinet. [www.dpmc.govt.nz]

Public Trust. The Public Trust Office (known as Public Trust) is a self-funding government department which provides a wide range of financial services and services as trustee, executor, manager, and attorney. It acts as sinking fund or depreciation fund commissioner for many local authorities. 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 Manatu Putaiao. Established in October 1989, the ministry's primary role is to advise the government on the overall policy framework, priorities and funding for research, science and technology and to provide contract management services to the minister for the implementation of science funding. The ministry has a role in ensuring that the development of public policy is well informed by science and technology, and that science and technology interests are well co-ordinated and linked. It is also responsible for gathering and disseminating statistics and descriptive information on research, science and technology activities and for administering intergovernmental science relations. The Office of the Chief Scientist is based in the ministry. See chapter 15: Science and technology. [www.morst.govt.nz]

Serious Fraud Office—Te Tari Hara Taware. 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 24.2: 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 co-ordination 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. See chapter 7: Social welfare. [www.dsw.govt.nz]

State Services Commission—Te Komihana O Nga Tari Kawanatanga. See ‘State Services Commissioner’ earlier in this section. [www.ssc.govt.nz]

Statistics New Zealand—Te Tari Tatau. The main function of the department is to provide and distribute statistical information about the economic, demographic, social and environmental circumstances of New Zealand. It also provides advice to the Minister of Statistics on statistical policy matters and on the relevance of official statistics. On behalf of the minister, the department ensures that the official statistical system is efficiently integrated and co-ordinated to cover all government departments which produce statistics. Regular reviews of official statistics are carried out to ensure their continued relevance to user needs.

Output from the organisation's databases is formatted into a range of products and services that are appropriate to the requirements of government as well as to the general public and commercial users. Co-operation with other national statistical offices and with international agencies fosters the availability of high-quality internationally comparable statistical information.

The department administers and operates under the Statistics Act 1975 which defines collection authorities as well as setting out confidentiality safeguards. [www.stats.govt.nz]

Transport, Ministry of—Te Manatu Waka. The ministry's core 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, the Aviation Security Service, Transit New Zealand, Transfund New Zealand and the Transport Accident Investigation Commission. It also monitors the government's contract for weather services with MetService New Zealand Limited and manages the Motor Vehicle Registry and Revenue Management business. Development of any legislation for the transport sector is the ministry's responsibility. Its other significant function is to formulate and implement policy relating to the development of New Zealand's international air transport links. It also advises the government in relation to the Crown's interests in joint venture airports operated in partnership with local authorities. See chapter 23: Transport.

Treasury, The—Kaitohutohu Kaupapa Rawa. The Treasury manages the Crown's finances and is the government's principal economic advisor. It manages the government's expenditure and revenue flows, including its borrowing requirements; disburses funds to other government departments and monitors their spending; monitors significant Crown assets; manages the Crown's public debt; advises on the Budget and prepares documents required by the Fiscal Responsibility Act; and produces the Crown financial statements. The Treasury also provides wide-ranging policy advice (including advice on tax policy), reports on most expenditure proposals being considered by the government, and monitors and analyses developments in New Zealand and international economies. See chapter 28: Public sector finance. [www.treasury.govt.nz]

Valuation New Zealand—(see separate article.) 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 compiles 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 16.1: Land resources and ownership.

Women's Affairs, Ministry of—Te Minitatanga mo nga Wahine. The Ministry of Women's Affairs provides gender specific advice on social and economic issues affecting women. This includes advice on all aspects of policy development, including its implementation, for both women and nga wahine Maori. Areas of policy work include: strategic policy; education, labour market and economic autonomy; safety, justice and well-being. See chapter 6: Social framework. [www.mwa.govt.nz]

Youth Affairs, Ministry of—Te Tari Taiohi. Established in 1989 to facilitate the direct participation of young people in New Zealand life and to promote opportunities for young people to actively and responsibly contribute to the cultural, social and economic policies and services affecting New Zealand's development.

The ministry has three main functions: provide policy advice; communicate policies and practices which impact on young people; and administer grants for youth training and development, particularly for the Conservation Corps and Youth Services Corps programmes.

Non-departmental public bodies

Crown entities. These are organisations (and in a few cases, statutory officers) that, unlike public service departments, are distinct legal entities in their own right, but either are majority owned or have a governing body appointed by the Crown. In this they are similar to SOEs except that commercial success is generally not their primary objective.

There are currently around 2,900 Crown entities, named or described in a schedule to the Public Finance Act 1989. About 2,660 of these are school boards of trustees. Most Crown entities are established under specific enabling legislation which defines their functions and powers, and are managed by autonomous boards.

Crown entities are extremely diverse in their functions, size and structures. They include such organisations as the Human Rights Commission, the Land Transport Safety Authority, the ACC and Crown Research Institutes.

State-owned enterprises. State-owned enterprises are companies established by the Government under the State-Owned Enterprises Act 1986 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 Government has announced its intention to introduce legislation to establish the Auditor-General as an officer of Parliament.

The constitutionally important controller function of the Audit Office, as set out in the Public Finance Acts 1977 and 1989, is to act as a monitor on behalf of Parliament and to control issues of money 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 of Parliament to control the supply of funds to the Crown, and in certain circumstances the Audit Office may prevent the issue of money.

The Audit Office audits the financial statements of government departments, local authorities, and most government-controlled corporations, boards and companies. The office plays a key part in ensuring adequate accountability by these organisations. It also conducts periodic reviews of financial control systems and of 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 the 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 private sector auditors to carry out individual audits in accordance with requirements laid down by him. By June 1998 approximately 70 percent of the annual audit portfolio will be subject to tendering out on a competitive basis between private sector auditors 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:

  • Increase the availability of official information to the people of New Zealand.

  • Provide for proper access by bodies corporate to official information relating to themselves (access by individuals to information relating to them is now governed by the Privacy Act 1993).

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

With the exception of the Parliamentary Counsel 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.

These acts provide special rights of access by bodies corporate to personal information about themselves. Access by individuals to information about themselves is now governed by the Privacy Act. The definition of ‘person’ includes a corporation sole and a body of persons whether corporate or unincorporate. Therefore, requests for access to official information can be made by such bodies. 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 withheld, 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 the Governor-General by Order-in-Council.

An information guide concerning access to personal and official information is available from the Ministry 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.

Ombudsmen

The principal function of the Ombudsmen 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 ombudsmen, in either temporary or permanent positions. Sir Brian Elwood CBE was appointed Chief Ombudsman on 14 December 1994 and Judge Anand Satyanand was appointed as an Ombudsman in February 1995.

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 3.14. COMPLAINTS TO THE OMBUDSMEN, 19971

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

1Year ended 30 June.

Source: Office of the Ombudsmen

Declined, no jurisdiction86151
Declined or discontinued (section 17)53712512
Resolved in course of investigation13928260
Sustained, recommendation made794
Sustained, no recommendation made1421
Not sustained17519422
Formal investigation not undertaken, explanation, advice, or assistance given208228562
Complaints transferred to:
    Privacy Commissioner1381
    Health & Disability Commissioner3--
Still under investigation as at 30 June33627328
        Total33801223191
        Total 199638491165153

Privacy Commissioner

The functions of the Office of the Privacy Commissioner, Te Mana Matapono Matatapu, are set out in the Privacy Act 1993. The office is independent of the Executive and of Parliament. One of the main purposes of the act is the promotion and protection of individual privacy, in general accordance with the Organisation for Economic Co-operation and Development (OECD) 1980 Guidelines on the Protection of Privacy and Transborder Flows of Personal Data. The act established twelve information privacy principles and four public register privacy principles. Both sets of principles are subject to any other law on the matters covered, and apply to both the public and private sectors.

The twelve information privacy principles deal with the collection, security, use and disclosure of personal information, access to and correction of personal information, and the assignment and use of unique identifiers.

The four public register privacy principles place some controls on the availability of public register information and its subsequent use. The Domestic Violence Act provides rights for some victims of domestic violence to have their whereabouts held confidentially on public registers, with the Privacy Commissioner having an oversight function.

The Privacy Commissioner has the power to issue codes of practice which may modify the information privacy principles by prescribing different standards or by exempting an action from them. Codes of practice can also prescribe how any of the information privacy principles are to be applied or complied with. Codes replace the principles in particular contexts. The most important code issued by the commissioner is the Health Information Privacy Code 1994, which provides stringent controls on the collection, use and disclosure of medical and health information by agencies throughout the health sector.

The Privacy Act also lays down information matching rules controlling statutory matching programmes in the public sector. Information matching involves one government department comparing personal information collected for specific purposes with databases of personal information in another government department held for different purposes. The primary purpose of information matching is to deter and detect welfare fraud or abuse. An example is the matching of social welfare beneficiaries' records with information lists of people departing from New Zealand. The act requires notice to be given to the affected individual before adverse action is taken on the basis of the successful match.

During 1996-97 the Privacy Commissioner considered a new information matching programme involving the matching of names and addresses between the Department for Courts and the Department of Social Welfare in order to trace fines defaulters.

The Privacy Commissioner investigates complaints alleging the breaches of the principles, codes of practice and information matching rules. The investigation process emphasises conciliation, the success of which can be seen in the large number of complaints which are resolved without a final opinion.

If a complaint cannot be settled, the Privacy Commissioner may refer it to the Proceedings Commissioner, who may in turn issue proceedings before the Complaints Review Tribunal. If either of the commissioners do not do so, the aggrieved individual may issue proceedings before the tribunal. The tribunal has the power to award a number of remedies, including declaring that an action has caused an interference with privacy, orders, damages and costs.

In 1996-97, the Privacy Commissioner referred four complaints to the Proceedings Commissioner. Fifteen complainants commenced proceedings on their own initiative.

Table 3.15. COMPLAINTS TO THE PRIVACY COMMISSIONER

 Year ended June
19971996
Number of complaints received1200993
Complaints current at start of year604583
Number of complaints under process18041576
Number of complaints closed during year870972
No jurisdiction1857
Complaints resolved without final opinion719703
Final opinion (substance 27—no substance 106)133212

The Privacy Commissioner performs a general “watch-dog” role over privacy and in 1997 made a number of reports to the Minister of Justice and public statements on a range of issues affecting individual privacy. The commissioner peruses new legislation and prepares reports on privacy issues. He also appears before Parliamentary Select Committees considering bills.

In 1996-97, he commented on a number of legislative proposals, including the Adoption (Intercountry) Bill, the Harassment and Criminal Associations Bill, the Health (Retention of Health Information) Regulations, Postal Services Bill, Protected Disclosures Bill, and the Sale of Liquor Act. He also provided comment to the Law Commission on its reviews into the Evidence Act and Official Information Act and to the Minister of Justice on the mandatory disclosure of executive remuneration under the Companies Act. The commissioner made submissions to the independent review of firearms control and to the Land Transport Safety Authority on its review of driver licensing.

In eco-friendly Tauranga, Arthur Deane removes roadside weeds by non-toxic methods.

The Official Information Act 1982 and the Local Government Official Information and Meetings Act 1987 require the ombudsmen to consult with the Privacy Commissioner in relation to review of official information access requests where privacy is a possible ground for withholding information. During the 1996-97 year 87 formal consultations under the two acts were completed.

The commissioner hosts an annual Privacy Issues Forum attracting both local and overseas speakers and registrants.

The World Wide Web address is: http://www.knowledge-basket.co.nz/privacy/welcome.htm

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 Office of the Parliamentary Commissioner for the Environment: Te Kaitiaki Taiao a Te Whare Paremata, 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 investigations 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 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.

During 1996-97 major investigations were initiated on issues related to public authority performance, public participation and aspects of management of the conservation estate.

Two investigations on national issues were completed: Public participation under the Resource Management Act: The management of conflict, and Management of the Environmental effects associated with tourism in New Zealand. There were three major complaint investigations (mining activities beyond the 12-mile limit, cellphone transmission facilities, and the environmental effects of tailings dams) and three evaluations of the success of our previous investigations (environmental accounts for New Zealand, dredgings disposal in the Hauraki Gulf and the East Coast Forestry Project).

The commissioner responded to a total of 363 communications from citizens, non-governmental organisations, select committees, public authorities and international correspondents, requesting the Parliamentary Commissioner for the Environment's assistance to resolve an environmental issue or provide information.

Table 3.16. REPORTS AND PAPERS BY THE COMMISSIONER

 1993-941994-951995-961996-97

Source: Parliamentary Commissioner for the Environment

Investigation reports64656633
Information transfer papers or presentations256482414387
          Total316547480420

Public Trust

Public Trust, the first of its kind in the world, was launched in 1873 by an act of Parliament. It is a self-funding government department now operating under the Public Trust Office Act 1957. The Public Trustee is a Corporation Sole.

Public Trust was created to provide all New Zealanders with the opportunity to write a will (thereby decreasing the number of intestacies) and to provide executor and trustee services. At the time it began, amongst other issues, problems arose from unscrupulous individuals cheating beneficiaries out of their inheritances.

Public Trust, with 50 branches throughout the country, now administers over 52,000 estates, trusts, funds and agencies, with assets under management of $3.5 billion. At 30 June 1997, this included about $600 million in the Common Fund, and $183 million in retail-managed funds. Public Trust also holds the statutorily-required deposits of insurance companies. Most of Public Trust's activities are commercial in nature but it is also required to provide a number of statutory services which may not be income earning. These are of a regulatory, quasi-judicial, trustee of last resort, trustee-guardian and representative (i.e. legal incapacity) nature.

3.4 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.

Auckland City Council's development projects manager and the consultant architect examine the ceiling during restoration of the Auckland Town Hall, February 1997.

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.

  • 154 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.

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

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

PROVINCES

Table 3.17. REGIONAL COUNCILS

RegionCouncil members1

1 Based on October 1992 elections.

Source: Department of Internal Affairs

North Island
Northland8
Auckland13
Waikato14
Bay of Plenty11
Hawke's Bay9
Taranaki10
Manawatu-Wanganui11
Wellington14
South Island
West Coast6
Canterbury14
Otago12
Southland11

Table 3.18. TERRITORIAL AUTHORITIES

Cities/districtsCouncil members1

1Includes mayors.

2 Unitary authority.

Source: Department of Internal Affairs

North Island
North Shore City20
Waitakere City17
Auckland City25
Manukau City20
Hamilton City14
Napier City14
Palmerston North City16
Porirua City14
Upper Hutt City11
Hutt City14
Wellington City19
Far North District14
Whangarei District14
Kaipara District11
Rodney District12
Papakura District13
Franklin District15
Waikato District15
Waipa District13
Otorohanga District8
Waitomo District11
Thames-Coromandel District10
Hauraki District10
Matamata-Piako District13
South Waikato District11
Taupo District13
Tauranga District15
Western Bay of Plenty District13
Rotorua District13
Whakatane District16
Kawerau District11
Opotiki District11
Gisborne District216
Wairoa District10
Hastings District15
Central Hawke's Bay District13
New Plymouth District17
Stratford District11
South Taranaki District13
Ruapehu District14
Wanganui District13
Rangitikei District12
Manawatu District14
Horowhenua District12
Tararua District13
Kapiti Coast District14
Masterton District12
Carterton District13
South Wairarapa District10
South Island
Nelson City213
Christchurch City25
Dunedin City19
Invercargill City13
Tasman District214
Marlborough District214
Kaikoura District8
Buller District12
Grey District8
Westland District13
Hurunui District10
Waimakariri District15
Selwyn District14
Banks Peninsula District10
Ashburton District13
Timaru District13
Mackenzie District11
Waimate District12
Waitaki District16
Queenstown-Lakes District16
Central Otago District14
Clutha District15
Southland District13
Gore District12
Chatham Islands Territory9

Territorial authorities. The 74 territorial authorities consist of:

  • 15 city councils.

  • 58 district councils.

  • the Chatham Islands council.

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; liquor licensing; building consent; parking controls; and civil defence.

New cities can now only be constituted by a reorganisation scheme where a new district is formed and that district: has a population of at least 50,000; is predominantly urban; and 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.

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 reorganisation 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; and the Otago Museum Trust Board.

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

Its six members are elected by the region's 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 trust is funded by dividends, rentals, investments and asset sales. 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.

In May 1998 it was announced that ARST will be restructured.

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 1998. 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 required to review the number of members and the number and size of their electorates.

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

The purpose of the review is to give effective representation to communities of interest and fair representation to electors. The review process 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 is now almost universal. 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 Amendment 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 enrolment forms received from ratepayers.

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

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.

Bob Nixon, senior planner for Christchurch City Council, with the CD-ROM version of the City Plan, offering an extensive web of hypertext links to guide users around topics related to proposed land and resource developments.

Local Government Commission

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

  • Appeals against decisions on objections to draft reorganisation schemes.

  • Appeals and counter-objections 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 1992 amendments to the Local Government Act 1974 considerably modified in 1994, the commission assumed new responsibilities relating to the consideration 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.

From time to time, the commission carries out investigations of particular matters affecting local government and reports on them to the Minister of Local Government.

3.5 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 1940. 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 3.19. 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 whakarongona; 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.

Contributors

  • 3.1 Ministry of Justice.

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

  • 3.3 State Services Commission; government departments as listed; Audit Office; Office of the Ombudsmen; Office of the Privacy Commissioner; Office of the Parliamentary Commissioner for the Environment; Public Trust.

  • 3.4 Local Government Commission; Department of Internal Affairs.

  • 3.5 Department of Internal Affairs.

Special articles

Cabinet Office; Clerk of the House of Representatives; Electoral Commission; Department of Internal Affairs; Office of the Parliamentary Commissioner for the Environment; Crown Company Monitoring Advisory Unit; Dr Henare Broughton; Ko Huiarau (The United Tribes of New Zealand and Crown of England), Puriri Press, 1991.

Further information

Constitution

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

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

Harris P and Levine S (1994) The New Zealand Politics Source Book, 2nd ed, Dunmore Press.

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

Joseph P A ed. (1995), Essays on the Constitution, Brooker's.

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

Palmer, Geoffrey & Matthew (1997), Bridled Power: New Zealand Government under MMP, Oxford University Press, Auckland.

Parliament and the Cabinet

Cabinet Office (1996), The Cabinet Office Manual, Wellington.

Electoral Commission (December 1997), The New Zealand Electoral Compendium (includes detailed 1996 election results).

General Election, The, (Parl paper E.9).

Law Commission (1996), The Law of Parliamentary Privilege in New Zealand: A reference paper (Miscellaneous Paper 5), Wellington.

McGee, David (1994), Parliamentary Practice in New Zealand, 2nd edition, Wellington, GP Publications.

McLeay, E (1995), The Cabinet and Political Power in New Zealand, OUP.

Miller, Raymond (ed) (1997), New Zealand Politics in Transition, Oxford University Press, Auckland.

Office of the Clerk of the House of Representatives (1997): Booklets on select committees (3) and on petitioning Parliament.

Parliamentary Bulletin. Compiled in the Office of the Clerk of the House of Representatives. GP Legislation Services (weekly when the House of Representatives is sitting).

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

Report of the Department of the Prime Minister and Cabinet (Parl paper G.48).

Report of the Office of the Clerk of the House of Representatives (Parl paper A.8).

Report of the Parliamentary Service Commission (Parl paper A.2).

Report of the Royal Commission on the Electoral System: Towards a Better Democracy (Parl paper H.3,1986)

Report of the Standing Orders Committee on the Review of Standing Orders, 1995 (Parl paper 118.A).

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

Standing Orders of the House of Representatives, September 1996.

State Services Commission, (1994), New Zealand's Reformed State Sector.

State Services Commission, (1995), Public Service Principles, Conventions and Practice.

State Services Commission (1995), Working Under Proportional Representation: A Reference for the Public Service.

Tables of New Zealand Acts and Ordinances and Statutory Regulations in Force. Parliamentary Counsel Office (annual).

State sector

Anderson, A (1990), The quest for efficiency: The origins of the State Services Commission, State Services Commission, Wellington.

Bassett, M (1997), The mother of all departments, AUP and Historical Branch, Department of Internal Affairs.

Boston, J et al (1996), Public Management: The New Zealand Model, Oxford University Press.

Boston, J (ed) (1995), The State Under Contract, Bridget Williams Books.

Boston J, Martin J, Pallot J and Walsh P, (1991), Reshaping the State: New Zealand's Bureaucratic Revolution, OUP, Auckland.

Directory of Official Information. Ministry of Justice (biennial, latest in December 1997).

Duncan, I and Bollard, A (1992), Corporatisation and Privatisation: Lessons from New Zealand, Auckland, Oxford University Press.

Easton B (1994), Economic and Other Ideas Behind the New Zealand Reforms, Oxford Review of Economic Policy Vol 10, no 3.

James, Colin (1997), Under New Sail: MMP and Public Servants, Institute of Policy Studies, Wellington.

Kelsey J (1993) Rolling Back the State: Privatisation of Power in Aoteroa/New Zealand, Wellington, Bridget Williams Books.

Martin J (1991), Public Service and the Public Servant, State Services Commission, Wellington.

Reports of the Controller and Auditor-General (Parl paper B.28 and B.29 series).

Reports of the Parliamentary Commissioner for the Environment (Parl paper C.12).

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

Report of the State Services Commission (Parl paper G.3).

Schick A, (1996), The spirit of reform: Managing the New Zealand State Sector in a time of change. State Services Commission.

Sharp, Andrew (ed) (1994), Leap Into the Dark: The Changing Role of the State in New Zealand since 1984, Auckland University Press, Auckland.

Steering Group on State Sector Reforms (State Services Commission), (1991), Review of the State Sector Reforms, Wellington.

Treasury (1995), Fiscal Responsibility Act 1994: An Explanation, Wellington.

Treasury, (nd) Putting it Simply: an Explanatory guide to Financial Management Reform, Wellington.

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

Local government

Bush, G (1995) Local Government and Politics in New Zealand (2nd edition), Auckland University Press.

Hammond, J (1997), Local government in New Zealand, Enterprise Trust.

Howell, R et al (1996), The unfinished reform in local government, Massey University.

Local authority election statistics 1995. Department of Internal Affairs, December 1997.

Kelly, J and Marshall, B (1996), Atlas of New Zealand boundaries, Auckland University Press.

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

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

Chapter 4. International relations and defence

RNZAF staff check out the new orange paint job on one of the unarmed Iroquois helicopters bound for Operation Belisi peacekeeping duties in Bougainville, November 1997.

4.1 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 49 diplomatic and consular posts located in 41 countries and territories. Multiple accreditation allows some New Zealand representatives to cover other countries from their bases.

The Ministry of Foreign Affairs and Trade (MFAT), Te Manatu Aorere, 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 on 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 the management of New Zealand official development assistance, provision of consular services to New Zealanders abroad, and provision of operational and administrative support services to other New Zealand government agencies overseas.

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

This and more information can be found on the ministry's internet homepage: http://www.mft.govt.nz.

South Pacific

New Zealand enjoys a close association with South Pacific nations, with 10 diplomatic missions in the region and accreditation to a further eight Pacific Island countries. 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. Cook Islanders and Niueans are New Zealand citizens.

Trade with the South Pacific, though small in comparison to other regions, is important to New Zealand. Exports to the region totalled $581 million for the year ending June 1997, and imports for the same period amounted to $130.3 million. Imports from South Pacific countries have duty-free and unrestricted access on a non-reciprocal basis to the New Zealand (and Australian) markets under the South Pacific Regional Trade and Economic Co-operation Agreement (SPARTECA).

New Zealand has developed extensive links with regional organisations. New Zealand was a founding member of the South Pacific Forum, formed in 1971 to promote regional co-operation, in particular in trade and economic development. The Forum now comprises 16 South Pacific countries, and provides an opportunity to discuss other issues of relevance to island nations such as the environment, climate change, transportation, law of the sea and security. An important aspect of the Forum's work is the annual meeting of the Forum Economic Ministers (FEMM). Since the first meeting in 1995, Ministers have agreed on an Action Plan covering accountability principles, public sector reform initiatives, tariff reform and investment reform.

Other regional organisations of which New Zealand is a member include the South Pacific Forum Fisheries Agency (FFA), which assists members with the management and conservation of the region's marine resources; the South Pacific Regional Environment Programme (SPREP), which focuses on the protection and management of environment resources; the Pacific Forum Line (PFL), which facilitates regional trade through improved shipping links; the Pacific Community—primarily a technical assistance organisation, which helps promote the economic and social welfare of the South Pacific peoples; and the South Pacific Applied Geoscience Commission (SOPAC) which assists countries in the assessment, exploration and development of mineral and other non-living resources.

There are other links with the South Pacific covering Official Development Assistance, Defence and Disaster Co-ordination. The France, Australia, New Zealand Agreement (FRANZ) is an important element in the provision of rapid emergency assistance to the region in the event of a natural disaster such as a tropical cyclone.

Australia

A diplomatic office was established in 1943 (trade posts had been established as early as 1906). The Australia-New Zealand agreement (known also as the ANZAC Pact or Canberra Pact) was signed in 1944 and the ANZUS treaty in 1952. In 1983 the two countries concluded the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA or CER for short). Complete free trade of goods was achieved on 1 July 1990. The services protocol was signed in 1988 and provided for the progressive removal of obstacles to the flow of services and investment between the two countries. 1996 saw the signature of the Trans-Tasman Mutual Recognition Agreement, implementation of the Joint Food Standards Agreement and the achievement of the Single Aviation Market. Australia is the most important trading partner for New Zealand, which is in turn Australia's largest single market for manufactured exports. See also section 25.4: Major trading partners.

New Zealand ministers participate in Australian state/federal ministerial councils covering a wide range of portfolios. There are regular meetings of foreign affairs, trade and defence ministers. The Closer Defence Relations (CDR) process has reinforced existing defence links. There is free movement of people under the Trans-Tasman Travel Arrangement. A social security agreement was signed in 1994 updating the previous agreement, and a double taxation agreement signed in 1995.

Asia

New Zealand is consolidating its position as a member of the Asia-Pacific community. This commitment builds on 25 years of growing intra-regional trade and presence in major regional political organisations. The countries of Asia now provide markets for over one-third of New Zealand's exports and are a source of almost a third of our imports. The region is a major source of investment and of migrants with a variety of skills. Political relations with Asian nations are close and reinforced by high-level visits and regular consultations involving officials and ministers. New Zealand maintains diplomatic missions in Bangkok, Beijing, Ha Noi, Hong Kong, Jakarta, Kuala Lumpur, Manila, New Delhi, Osaka, Singapore, Seoul, Shanghai and Tokyo.

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 wide range of regional trade facilitation and economic development activities. It is also a participant in the ASEAN Regional Forum, a ministerial level body launched in 1994 which discusses regional security issues. The New Zealand Defence Force maintains defence co-operation programmes with six of the seven ASEAN countries (excluding Viet Nam) and works with Singapore and Malaysia through the Five Power Defence Arrangements.

In October 1997, New Zealand and the People's Republic of China jointly celebrated the rose with a joint postage stamp issue depicting Rugosa, an ancient rose from China, and Aotearoa-New Zealand, one of the world's youngest varieties. The stamps were launched at a China-New Zealand stamp expo in Wellington and a New Zealand-China expo in Tianjin, south-east of Beijing.

New Zealand is one of the founding members of the Asia Pacific Economic Co-operation (APEC) forum and, since 1989, has played an active part at all levels in APEC leaders, ministerial, and officials working group meetings. New Zealand will host APEC in 1999. 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 shared interests within the region, New Zealand also co-operates with the ASEAN nations and with our other trading partners in wider international forums, including the United Nations (UN) and the World Trade Organisation (WTO).

Bilateral trade with most of our Asian trading partners is rising steadily. The economic relationship with Japan, our second largest export market, is among our most important. Trade is increasingly diversified, helped by the complementary nature of the Japanese and New Zealand economies, and trade and investment are playing an important role in the development of New Zealand's economy. Economic reform and significant GDP growth rates in China offer new opportunities for New Zealand in Asia's largest market. New Zealand's two-way trade with China exceeded $1.4 billion for the first time in 1997. In the year to June 1997, China overtook Korea as New Zealand's fifth largest trading partner and further rapid growth is expected. South Korea is New Zealand's sixth largest trading partner. Hong Kong and Taiwan remain significant markets with real growth potential.

The New Zealand Government demonstrated commitment to the Asia-Pacific with the establishment in 1991 of the Asia 2000 Programme, which became the Asia 2000 Foundation. The foundation aims to build New Zealanders' skills and awareness of Asia so that individuals can be more effective participants in the Asia-Pacific region. The initiative is now well established; the Asia 2000 Foundation has a network of ‘honorary advisers’ in the region and draws support in New Zealand from both the public and private sectors. The Ministry of Foreign Affairs and Trade works closely with the Foundation on key activities, such as the organisation of the Williamsburg conference to be held in 1998, and visitor programmes. The Asia 2000 Foundation contributes to regional policy analysis and discussion (see separate article).

Americas

United States. New Zealand's relationship with the United States is one of our most important. Shared values underpin close governmental and private sector contacts across a broad range of bilateral, regional and multilateral activities. The United States is a key economic partner. It is one of New Zealand's three most important export markets and a major source of imports and investment. In the multilateral trade field, the two countries espouse similar open market philosophies. Cooperation is also close on international environmental matters and Antarctic scientific research. Programmes for scientific, cultural and educational exchange maintain an awareness of New Zealand in the United States and promote the interchange of ideas and experience.

Canada. New Zealand and Canada enjoy a positive and close relationship, based on shared bilateral Commonwealth, UN and Asia-Pacific interests. The two countries co-operate closely on a range of issues, including disarmament, international peacekeeping and security, Asia-Pacific policies and international economic matters. Canada is an important market for our agricultural goods, particularly beef. Bilateral trade and economic relations are conducted under the umbrella of the 1981 Trade and Economic Co-operation Agreement (TEC) which provides for, among other things, regular consultation on trade issues.

Latin America and the Caribbean. New Zealand is represented in Latin America by embassies in Mexico, Chile and Buenos Aires. The ambassador in Mexico is cross-accredited to Colombia, Peru and Venezuela, and the Ambassador in Chile to Brazil and Uruguay. The embassies' efforts are supported by honorary consular representatives in Bogota, Lima, São Paulo 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.

Trade and investment is the primary focus of New Zealand's relationship with Latin America and the Caribbean, mainly exports of dairy products, agricultural machinery and manufactured goods. New Zealand companies are involved in a wide range of activities there in the agriculture, forestry, fisheries, construction, telecommunications 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.

Europe

Western Europe. The European Union (EU) is one of New Zealand's four top markets, along with Australia, Japan and the United States. The outcome of the GATT Uruguay Round negotiations placed our major sheepmeat and dairy exports to the EU on a firmer footing, and increased the quantities which New Zealand may export. Our other main primary product exports such as apples, fish and timber do not face volume restrictions on access, though there are concerns about some of the conditions affecting this access and New Zealand has had to initiate WTO dispute settlement action on an EU decision that New Zealand spreadable and Ammix butters are not eligible for tariff quota access. Our wine exports face some access problems.

The countries of the EU are important partners for New Zealand in investment and as a source of technology and expertise. A number of bilateral agreements in areas of specific interest to New Zealand are under consideration. New Zealand and the EU concluded a bilateral Veterinary Agreement in December 1996. The New Zealand economy benefits from European migrants with capital and entrepreneurial skills. Tourists also make a significant contribution to the New Zealand economy.

New Zealand maintains a high level of political consultation with the EU. Since 1990 New Zealand has had meetings at ministerial level with the revolving six-monthly presidencies of the EU. Close regular contact is maintained by New Zealand's network of posts in western Europe with individual EU member states, and with the European Commission in Brussels, on a range of economic and political issues.

Central and eastern Europe. In general the countries of central and eastern Europe continue to evolve from one-party states and centrally-planned economies towards political pluralism and free-market economies. In general too, they are seeking to strengthen their links with western Europe, and with the economic and security forums of western Europe: Poland, Hungary and the Czech Republic are now accepted candidates for membership of both the European Union and NATO. However, the pace of political and economic reform has been uneven.

Responsibility for New Zealand's government-to-government relations with the Czech Republic, Hungary, Poland and Slovakia lie with the New Zealand embassy in Bonn and for Bosnia and Croatia with the embassy in Rome. Commercial relations with central and eastern Europe are handled by the Tradenz office in Hamburg.

Former Soviet Union. Trade remains the central component of New Zealand's relations with the states of the former Soviet Union (FSU), the Russian Federation being the principal trading partner. A number of New Zealand exporters are now doing good business in Russia in a range of products, particularly foodstuffs and consumer goods. The Russian market is a difficult one but can be very rewarding. Exporters are seeking new methods of securing contracts, including building relationships with regional executives, especially in the Russian Far East (RFE). There is a direct shipping route between New Zealand and the RFE, and several New Zealand companies have offices there.

Although New Zealand's dealings with the other countries of the FSU are currently quite limited, the economic upturn in some of them, coupled with New Zealand's investment and input of technical assistance, are helping to create good opportunities for traders in the medium term.

New Zealand has an embassy in Moscow which is accredited to Belarus, Estonia, Kazakhstan, Latvia, Lithuania, Turkmenistan, Ukraine and Uzbekistan.

OVERSEAS REPRESENTATION

6,400 old and obsolete military weapons and their spare parts were crushed for metal recycling, rather than re-use by overseas buyers, in November 1997.

Middle East

New Zealand has significant economic interests in the Middle East. The region is an important market for New Zealand's agricultural exports and an important source of crude oil. In the year ended June 1997, New Zealand exports to the region totalled $752 million. Imports for the same period were $670 million. New Zealand has embassies in Tehran, Riyadh and Ankara, and cross-accreditations to Bahrain, Egypt, Israel, Jordan, Kuwait, Oman, Pakistan, Qatar and United Arab Emirates. Tradenz has a regional office in Dubai.

For more than 40 years New Zealand has maintained an even-handed policy on the Arab-Israeli 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 continues to support the search for peace in the Middle East. New Zealand remains committed to supporting the principles of land for peace and the Oslo Declaration of Principle concluded between Israel and the Palestinians.

New Zealand has contributed a contingent to the Sinai Multinational Force and Observers (MFO) based on the Egypt/Israel border since 1982. The government also contributes military personnel to the United Nations Truce Supervision Organisation (UNTSO), headquartered in Jerusalem. The government has also made available military personnel to serve with the United Nations Special Commission (UNSCOM) operation, which is given the task of eliminating Iraq's weapons of mass destruction and verifying that Iraq does not resume its weapons programmes. New Zealand has contributed frigates to the Multinational Interception Force (MIF) which monitors the sanctions regime in the Gulf.

Africa

In recent years contact between New Zealand and Africa has increased. New Zealand's membership of the United Nations Security Council (1993-94) led to a closer involvement in a wide range of African issues. New Zealand's ties with Commonwealth African countries were further strengthened by the holding of the Commonwealth Heads of Government Meeting (CHOGM) in Auckland in November 1995. New Zealand was named as one of eight countries to take part in a ministerial action group (CMAG) to deal with non-compliance with Commonwealth principles in some African countries.

The New Zealand High Commissioner in Pretoria is accredited to South Africa, Botswana, Mozambique, Tanzania, Zambia, Kenya and Namibia, and there is a High Commission in Harare, Zimbabwe. New Zealand posts in London, Madrid, Paris and Riyadh are responsible for relations with Nigeria, Morocco, Algeria and Egypt respectively. Trade and political contact with South Africa were strengthened in August 1996 with the visit of the Prime Minister to South Africa, the opening of a High Commission in Pretoria in mid-1996, and the visit by the Minister for International Trade and a Business Mission in August 1997.

New Zealand has a long-standing involvement in development co-operation in Africa through its Official Development Assistance (ODA) programme. In 1996 a new bilateral ODA programme was established with South Africa. NZODA also supported projects and training in seven other Commonwealth states in southern Africa. The total value of this support in 1997-98 will be $3.275 million, an increase of 3.9 percent on the $3.15 million provided in 1996-97.

In addition to this support almost $2.1 million was provided to activities in Africa from the Emergency and Disaster Relief allocation of NZODA. New Zealand also contributes substantial core funding to multilateral agencies (such as the World Bank and UNDP) working in Africa.

New Zealand is also participating in UN peacekeeping and de-mining missions in Angola and Mozambique.

Trade with African countries accounts for only a small percentage of New Zealand's global trade. Exports were valued at $119.9 million in the year ended June 1997. Among the major exports to the region are dairy products, fish and electrical equipment. Imports from Africa (valued at $80.3 million) include machinery, tobacco, plastics and textile fibres. In 1996 Egypt, Algeria, South Africa and Mauritius were New Zealand's most important markets in Africa.

Assistance to developing countries

Overview. New Zealand's Official Development Assistance (NZODA) Programme provides assistance to developing countries to help them better meet their peoples' economic and social needs.

The programme strengthens the links between New Zealand and the peoples of developing countries, and serves to foster mutually beneficial relationships. It also contributes to the achievement of New Zealand's own external relations and trade policies by helping to advance international economic prosperity, to maintain peace, security and stability, and protect the global environment. The programme is an investment in the regional and global future New Zealand shares with other nations.

New Zealand's ODA Programme is managed by the Development Co-operation Division of MFAT in conjunction with New Zealand's diplomatic posts in partner countries. In carrying out its work, the development expertise and experience of the division are complemented by those of a wide range of New Zealanders and partner country counterparts drawn from both the private and public sectors.

The NZODA Programme is funded by two core payments set by Parliament. For the 1997-98 financial year these are:

  • $198,190 million as Non-Departmental Payments (NDP). The NDP is the core of the ODA allocation and covers transfers of New Zealand goods, services and funding.

  • $11,327 million for ODA Management, funded as one of the MFAT output classes.

Some other activities or transfers that meet the OECD definition of Official Development Assistance are funded from other government sources. The total disbursement on NZODA currently amounts to nearly 0.25 percent of New Zealand's GNP (gross national product). This is near the average for OECD countries and a considerable increase from just over 0.20 percent in 1990.

New Zealand's ODA Programme is divided for financial and administrative purposes into two broad schedules of activities—bilateral and multilateral.

The bilateral schedule. 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 in 20 major partner countries in the South Pacific, South-east Asia, China and Southern and Eastern Africa. Direct bilateral assistance of this kind accounts for over half of New Zealand's 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.

Over the years development assistance has covered the full range of New Zealand expertise—agriculture, communications, conservation and environment, education and training, energy, fisheries, forestry, health, industries, public works, social infrastructure, tourism, transport, water resources and women in development programmes. Global environmental concerns now take a higher profile in NZODA, and that list now includes nature conservation, national parks management, land use planning, soil conservation and environmental education. New Zealand participates in projects by contributing technical assistance, grants, material supplies and training.

New Zealand's development co-operation with Pacific Island countries focuses strongly on human resource development. As well as the considerable amounts allocated for study and training awards in New Zealand and at regional South Pacific institutions, many NZODA development projects provide technical assistance involving in-country training and staff development. Outer island and rural development are also a central feature of several of the NZODA Pacific Island country programmes.

New Zealand also promotes development of the South Pacific region as a whole with contributions to the South Pacific Forum Secretariat, the FFA, the Pacific Community and SPREP, amongst others. The Pacific Islands Investment and Development Scheme (PIIDS) targets the private sector and helps to promote investment and other linkages between New Zealand and Pacific Island companies.

New Zealand is extending its development co-operation with Asia. In addition to the various bilateral and regional programmes, the Asia Development Assistance Facility (ADAF) encourages New Zealand firms and consultants to identify developmentally-sound activities in the region, based on New Zealand expertise and commercial strengths. A major project aimed at addressing some of the specific training needs of the greater Mekong Basin sub-region has been developed in cooperation with Khon Kaen University in Thailand.

VSA agricultural extension officer helping dig a fishpond in Babati, Tanzania, a project sponsored by New Zealand Overseas Development Assistance.

Education and training. New Zealand recognises that people are at the centre of development, and that human resource development (HRD) is the key to social and economic progress in developing countries. Besides funding of scholarships, training and programmes to strengthen education systems and institutions under bilateral country programmes, cross-regional scholarships are also made available. These include the Aotearoa Scholarships, Commonwealth Scholarships, Geothermal Diploma Students and Postgraduate Scholarships.

Table 4.1. OFFICIAL DEVELOPMENT ASSISTANCE PROGRAMME 1997-98

Programme$(000)
Source: Ministry of foreign Affairs and Trade
Bilateral schedule
    South Pacific Programmes—
        Western Samoa7,700
        Niue6,750
        Tokelau6,100
        Cook Islands6,000
        Papua New Guinea6,000
        Tonga5,600
        Fiji5,000
        Vanuatu5,000
        Solomon Islands4,800
        Kiribati3,100
        Tuvalu2,150
    Other Pacific Island countries1,250
    South Pacific regional programmes11,100
    South Pacific Head of Mission funds900
    Total South Pacific programmes71,450
Other bilateral programmes
    ASEAN and other Asia programmes30,000
    Americans/Africa programmes4,700
    Emergency and disaster relief5,000
    Voluntary agencies11,500
    Education and training (cross-regional scholarships)25,430
    Commonwealth Good Government programme500
    International Good Government programme500
    Total other bilateral programmes77,630
    Total bilateral schedule149,080
Multilateral schedule
    International financial institutions22,685
    South Pacific agencies10,390
    United Nations agencies11,560
    Commonwealth agencies2,265
    Other organisations2,210
    Total multilateral schedule49,110
    Total Official Development Assistance198,190

OFFICIAL DEVELOPMENT ASSISTANCE
Percentage of GDP, 1993 and 1995

Emergency and disaster relief. Substantial funding is also directed to emergency and disaster relief operations (both government-to-government and through international agencies), and also to the ongoing work of non-government organisations working at grass-roots level in developing countries. Emergency and disaster relief is allocated as the need arises. Where natural disasters occur in neighbouring countries of the Pacific New Zealand is often able to send supplies, medical teams or other skilled people to directly help recovery work. A trilateral arrangement involving New Zealand, Australia and France in the South Pacific ensures a rapid response, effective co-ordination, and efficient use of resources in an emergency. When disaster strikes in more distant countries, New Zealand usually responds by making grants to international relief appeals, often under the auspices of the major international relief organisations or NGOs.

Hon Deborah Morris signing the anti-personnel landmine ban treaty for New Zealand in Ottawa, December 1997

Non-government organisations. NZODA support for NGOs engaged in overseas development is provided through the Voluntary Agencies Support Scheme (VASS) and through funding Volunteer Service Abroad (VSA).

The multilateral schedule. 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, UN agencies, Commonwealth agencies and various regional development organisations, such as the Forum Secretariat and Forum Fishery Agency.

Participation in institutions such as the International Development Association (IDA), the Asian Development Bank (ADB), the United Nations Development Programme (UNDP) and the Commonwealth Fund for Technical Co-operation gives New Zealand a voice 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 on the ground. They are respected for the neutrality and the degree of expertise they can bring to bear on a wide range of development issues. New Zealand also finances individual projects with multilateral agencies.

New Zealand recognises that sustainable development and good government are closely linked. Good government includes essential elements such as political accountability, reliable and equitable legal frameworks, bureaucratic transparency and effective and efficient public sector management. To mark the hosting of Commonwealth Heads of Government Meeting (CHOGM) in Auckland in November 1995, a Commonwealth Good Government programme was established within NZODA to provide assistance in this field to Commonwealth developing countries. In 1996 a similar International Good Government programme was established to extend similar assistance to non-Commonwealth countries, particularly those in Asia.

4.2 International organisations

United Nations

New Zealand was a founding member of the United Nations organisation in 1945. Successive governments have strongly supported it as the major global instrument for maintaining peace and security, developing friendly relations among countries, encouraging international co-operation aimed at solving economic and social problems, establishing and strengthening an international framework, 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.

New Zealand continues to have a high profile at the UN. Current New Zealand Permanent Representative Michael Powles and his predecessor Colin Keating each chaired one of the five important reform working groups set up by the UN General Assembly to advance the reform process. In addition, New Zealand diplomat Denise Almao currently serves on the powerful UN Advisory Committee on Administrative and Budgetary Questions (ACABQ). This body examines and reports on the budgets and accounts of the UN and its constituent bodies. New Zealand has also been elected to the UN Economic and Social Council (ECOSOC) for the period 1998-2000.

Contributions to the United Nations. Contributions to the UN's budget are based on members' capacity to pay. New Zealand's assessed contribution rate is set at 0.24 percent of the regular budget, resulting in annual dues in 1997 of NZ$4.05 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 also assessed at 0.24 percent. In 1996-97, these dues amounted to more than NZ$2.7 million.

Human rights. As a party to international human rights instruments. New Zealand is required to report regularly to the United Nations monitoring bodies on the measures it has taken domestically to give effect to international standards. In 1997 New Zealand presented its initial report under the Convention on the Rights of the Child and submitted its Second Periodic Report under the Convention Against Torture, and Other Cruel and Degrading Treatment or Punishment. New Zealand will also submit its Second Periodic Report under the International Covenant on Economic, Social and Cultural Rights; its Fourth Periodic Report under the International Covenant on Civil and Political Rights; and its Twelfth and Thirteenth (consolidated) Report under the Convention on the Elimination of Racial Discrimination.

In 1997, New Zealand continued to give financial support in the field of human rights, including funds to assist national human rights institutions and advisory services for indigenous populations. At the Commission on Human Rights and the Third Committee of the General Assembly (which deals with social, cultural and humanitarian issues) New Zealand supported resolutions addressing a wide range of current international human rights concerns, in particular mainstreaming of women's issues within the United Nations system, indigenous issues and the development of human rights commissions in the Asia-Pacific region.

Issues relating to the human rights of women and children continued to be a priority for New Zealand. In 1997 New Zealand continued to participate in the drafting of optional protocols to strengthen both the Convention on the Rights of the Child and the Convention on the Elimination of All Forms of Discrimination Against Women. Dame Silvia Cartwright continued her second term as a member of the Committee on the Elimination of Discrimination Against Women (CEDAW).

Indigenous issues continued to receive international attention in 1997, with activities continuing under the Decade for the World's Indigenous People. New Zealand participated in a range of international initiatives focusing on indigenous people, including the third meeting of the intergovernmental working group considering a Draft Declaration on the Rights of Indigenous People.

The specialised agencies. The UN system encompasses 14 autonomous organisations known as the Specialised Agencies (14 if the World Bank Group is counted as one, 19 if the World Bank Group is split). There is also a large number of additional bodies with their own secretariats, budgets and operations. New Zealand is a member of all the major specialised agencies. 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 levels 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. In November 1995 New Zealand was elected to the Executive Board of UNESCO for the period 1995-99.

Other UN specialised 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), climate and weather (WMO) and industrial development (UNIDO).

New Zealand participates in other UN bodies and programmes concerned with such diverse subjects as atomic energy (IAEA), refugees (UNHCR), development (UNDP) and environmental issues (UNEP). New Zealand was elected to the Executive Board of the UN Children's Fund (UNICEF) for the period 1997-99.

A New Zealand peacekeeper at work in Cambodia.

PEACEKEEPING COMMITMENTS
Since 1952, including current commitments

Other United Nations bodies. In addition to the specialised agencies, many UN organisations help to seek solutions to international problems through diverse economic, development, humanitarian and technical activities. Through the NZODA New Zealand contributes to 15 different UN organisations which address issues such as drug abuse, population planning, women's research and training, and assistance to refugees. New Zealand has sent delegations to the major UN economic and social conferences in the 1990s: the Rio Summit on the Environment in 1992; the Population Conference in Cairo in 1994; the Social Summit in Copenhagen in 1995; and the Habitat II Conference in Turkey in 1996.

World Trade Organisation

The World Trade Organisation (WTO) was established on 1 January 1995. It is an international organisation which acts as a single institutional framework over the General Agreement of Tariffs and Trade (GATT) and the multilateral agreements that resulted from the Uruguay Round.

The GATT was negotiated in 1947 and came into force in 1948. Its basic aim has been to liberalise world trade and to place it on a secure basis, thereby contributing to international economic growth and development. By the time the WTO came into force, the GATT's Contracting Parties accounted for about 90 percent of world trade.

Like the GATT, which it has now subsumed, the WTO is a multilateral trade treaty. It provides both a code of rules and a forum in which countries can discuss and address their trade problems and negotiate and enlarge world trading opportunities. It is underpinned by certain fundamental principles:

Trade without discrimination: The ‘most favoured nation’ clause stipulates that each WTO member must grant all other members treatment as favourable as that which they grant any other country. This principle is particularly important for countries such as New Zealand, since it ensures that larger countries cannot adopt discriminatory trade policies (except for preferential free trade areas and customs unions).

Protection through tariffs: Any protection provided to domestic industry should be in the form of tariffs, rather than less transparent instruments such as quotas and import licensing.

The binding of tariffs at levels negotiated among members: Where tariffs have been bound, they may be increased above that level only if compensation is offered by the importing country.

National treatment: Imported products must be treated no less favourably than domestic products with respect to internal taxes, regulations and other requirements.

Consultations on the basis of equality: Any member may invoke the WTO's dispute settlement provisions in cases where it considers its WTO rights have been nullified or impaired.

Eight rounds of multilateral trade negotiations were held under the auspices of the GATT, each with the aim of liberalising trade between the contracting parties by reducing trade barriers and other measures impeding free trade. The most ambitious of these was the Uruguay Round (1986-94). In addition to establishing the World Trade Organisation, the Uruguay Round:

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

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

  • Extended the multilateral trading system to trade in services (the General Agreement on Trade in Services).

  • Strengthened multilateral trade rules in areas such as subsidies, anti-dumping, technical barriers to trade, sanitary and phytosanitary measures, safeguards, trade-related investment measures, and dispute settlement.

  • Established a multilateral framework for protection and enforcement of intellectual property rights (TRIPS).

  • Further reduced tariffs on goods.

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

The IBRD currently lends about US$15.6 billion a year at market rates to developing countries with relatively high per capita income. The IDA provides interest-free loans worth about US$6.4 billion a year to the poorest developing countries. The IFC promotes growth in the private sector of developing countries by lending or investing in business enterprises without government guarantees. MIGA provides investors in developing countries with investment guarantees against non-commercial risk, 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 7,236 shares in the IBRD, which represents 0.51 percent of the total voting shares. The shares have a total par value of US$723.6 million, although over 90 percent of this amount has not been called up but, together with the uncalled subscription of the 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 the 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, amounting to a 0.119 percent share of the total replenishment. It will be paid over an eight-year period from 1993.

Asian Development Bank

The Asian Development Bank (ADB) is a development finance institution. Established in 1965, 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.

A traditional Japanese garden in Manukau City, designed in Utsunomiya, Manukau's sister-city, was opened in February 1997 with a Maori ceremony.

Commonwealth

The 54 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, which have a continuing constitutional association with New Zealand, are associate members. Fiji rejoined the Commonwealth in October 1997.

A permanent Commonwealth Secretariat, based in London, 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 1997 meeting of CHOGM took place in October in Edinburgh, Scotland. In 1999, the meeting will be in South Africa. Commonwealth finance ministers meet annually, and ministers of agriculture, labour, health, education, women's affairs and other portfolios also meet at varying intervals.

The links that bind the Commonwealth are not only between governments and ministers. They occur right across the non-governmental sector, with over 250 Commonwealth-wide organisations which maintain inter-Commonwealth links across a wide range of professional fields as well as areas such as sport, youth and education.

Organisation for Economic Co-operation and Development

The Organisation for Economic Co-operation and Development (OECD) based in Paris, France, is a unique forum permitting governments of the industrialised democracies to study and formulate the best policies possible in all economic and social spheres. The work of the OECD, including its annual ministerial communique, is considered a crucial barometer of Western economic policy coordination, setting out shared views on issues of importance not only to Western interests but also to the international community generally.

The organisation provides a valuable opportunity to make New Zealand's voice heard on key macro- and micro-economic issues. Not only does work through the OECD help frame New Zealand's national economic policies, it also helps define its position, at least in broad outline, in international organisations at the regional and world level (such as the WTO and APEC).

In its standard setting and monitoring role, which is likely to grow, the OECD enjoys a comparative advantage in a niche between the national or regional level and the world level where it is usually desirable but always difficult to agree on the rules of the game. In this context, the organisation is an important link for New Zealand in the elaboration of its economic policy. We have a particular interest in the biannual publication OECD Economic Outlook which provides a periodic assessment of economic trends, prospects and policies in member countries. The organisation's regular country reviews also provide useful insights into member economies, including our own. New Zealand's development co-operation policy is reviewed regularly by the OECD's Development Assistance Committee.

Other areas where New Zealand participates in OECD work include education, science, health, labour, the environment, 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, central and eastern Europe and the newly independent states of the former Soviet Union.

A key objective for New Zealand will be the completion of negotiations related to the establishment of a multilateral agreement on investment (MAI) which began in October 1995. This agreement will provide a broad multilateral framework for international investment with high standards for the liberalisation of investment regimes, improve investment protection and establish effective dispute settlement procedures.

New Zealand is also a member of the International Energy Agency (IEA), an autonomous body of 23 member countries within the OECD framework. The primary focus of the IEA is on oil security amongst its members. However, its programme of work embraces a wide range of energy issues including energy-related environmental concerns, increased energy efficiency and use of renewable resources, the energy situation of member and non-member countries, and dialogue between energy, particularly petroleum, producers and consumers.

4.3 New Zealand territories

Tokelau

Tokelau consists of three small atolls in the South Pacific—Atafu, Fakaofo and Nukunonu—with a combined land area of 12 square kilometres and a population of around 1,500. The central atoll, Nukunonu, is 92 kilometres from Atafu and 64 kilometres from Fakaofo. Western Samoa is 480 kilometres to the south.

The British government transferred administrative control of Tokelau (then known as the Union Islands) to New Zealand in 1925. Formal sovereignty was transferred to New Zealand in 1948 by an act of the New Zealand Parliament. New Zealand statute law, however, does not apply to Tokelau unless it is expressly extended to Tokelau. In practice, no New Zealand legislation is extended to Tokelau without its consent.

Tokelau is listed as a non-self-governing territory for the purposes of the self-determination principles of the United Nations Charter. This status was confirmed in 1962 when New Zealand added Tokelau to the schedule of territories under the supervision of the United Nations Special Committee on Decolonisation.

The main objective of New Zealand's relationship with Tokelau is that of fostering a greater degree of self-government and economic self-sufficiency for the people, in fulfilment of New Zealand's responsibilities under the United Nations Charter and General Assembly resolutions 1514 (XV) and 1541 (XV) covering decolonisation and the transmission of information.

The Administrator of Tokelau is Mr Lindsay Watt. He is appointed by the Minister of Foreign Affairs and Trade and is responsible for ‘the administration of the executive government of Tokelau’.

Under a programme of constitutional change agreed in 1992, the role of Tokelau's political institutions is being better defined and expanded. The process under way enables the base of Tokelau government to be located within Tokelau's national level institutions rather than as before, within a public service located largely in Western Samoa. This process was formalised by the delegation on 27 January 1994 of the Administrator's powers to the General Fono and the Council of Faipule when the General Fono is not in session. Consequently, the public service has been relocated to the atolls.

The General Fono, comprising 27 members, remains Tokelau's paramount political institution, while the key operational relationship is between the three Faipule acting as ministers within the Council of Faipule and the senior staff of the public service. In 1996 the formal step of devolving the legislative power was taken. With the passage of the Tokelau Amendment Act 1996 by the New Zealand Parliament, the General Fono has been able since 1 August 1996 to exercise a rule-making power.

The Council of Faipule's head is the Ulu o Tokelau (Leader of Tokelau), a post which rotates on a yearly basis. The Ulu for 1998 is Kuresa Nasau, Faipule of Atafu.

The Faipule are the elected leaders of their respective atolls and chair the Taupulega or village council. Traditionally each village has been largely autonomous. This was confirmed by the Tokelau Village Incorporations Regulations 1986, giving legal recognition to each village and granting it an independent law-making power.

The ministerial function accordingly represents an extension of the formal responsibility of the Faipule. It can also be seen as formalising the past situation where each Faipule has provided the effective link between village and administering power; and, for that matter, between village and public service. (Before the January 1994 delegation of the Administrator's powers, the delegation was held by the head of the Tokelau Public Service, the Official Secretary, a post that is now disestablished.) These changes have added to the responsibilities of the other elected official, the Pulenuku or village mayor.

Tokelau's development prospects are restricted by its small land area and population, its geographic isolation, and by the relatively high cost in these circumstances of providing education, health and other services to three communities which are so widely separated. For these reasons Tokelau relies substantially on external financial support, primarily from New Zealand. Nonetheless the development of government structures at the national level has promoted a clear wish for Tokelau to be self-reliant to the greatest extent possible.

That wish is reflected in Tokelau's first National Strategic Plan adopted by the General Fono in June 1994. This document is seen as a ‘chartered course’ for the next five to ten years. It is reflected too in Tokelau's submission to a United Nations Visiting Mission in July 1994. The submission affirms that Tokelau has under active consideration both the Constitution of a self-governing Tokelau and an act of self-determination. It also expresses a strong preference for a future status of free association with New Zealand.

Ross Dependency

The Ross Dependency consists of the land, permanent ice-shelf and islands of Antarctica between 160° east to 150° west. The land is almost entirely 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 in 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 43 parties to the treaty meet regularly to consider questions within its framework.

4.4 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 (NZDF).

The Minister of Defence has the power of control of the New Zealand Defence Force, which is exercised through the Chief of Defence Force. The Chief of Defence Force is the principal military adviser to the Minister and is responsible for carrying out the functions and duties of the Defence Force, the general conduct of the Defence Force, managing the activities and resources of the Defence Force, and chairing the Chiefs of Staff Committee.

The Secretary of Defence is the chief executive of the Ministry of Defence and 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.

Defence policy

A new policy paper, The shape of New Zealand's defence, was released in November 1997. In this paper the government confirmed the ongoing validity of the defence policy of self-reliance in partnership set out in the 1991 white paper. This strategy advocates maintaining a defence force that can respond to security challenges close to home, while ensuring New Zealand meets its wider security interests through appropriate contributions further afield.

The three principal elements of this policy are:

  • defending New Zealand against low-level threats such as incursions into our exclusive economic zone and terrorism;

  • contributing to regional security which includes maintaining our key defence relationships with Australia and our Five Power Defence Arrangements partners—Australia, the United Kingdom, Malaysia and Singapore; and

  • being a good international citizen by playing our part in global collective security efforts, particularly peacekeeping.

This policy reflects our geostrategic location, widespread trade and other interests, and our relatively small population and economy. New Zealand's interdependence with Asia in general, and East Asia in particular, continues to grow. The interdependence created by economic prosperity means that security concerns are shared, and armed conflict is less likely.

While the prospect of nuclear confrontation has diminished, the changing strategic balance has brought a number of security concerns to the fore. New Zealand does not foresee a major direct threat to its territory. At the lower level, however, there is a possibility of contingencies such as resource poaching or terrorism. To counter these a self-reliant capability is required. The emergence of more serious threats would require New Zealand to work in partnership with like-minded states.

Long-standing local or regional conflicts and conflicts within states look to be the most likely form of contemporary conflict. These have the potential to affect New Zealand and our interests, and as a beneficiary of a stable and secure environment, New Zealand must bear some of the responsibility and cost of keeping it that way. In addition, the modernisation, technical sophistication, and rising capability levels of military forces in this region and beyond, combined with the uncertain nature of the strategic environment mean that there will probably be growing demands on the NZDF to contribute in support of our regional and global security interests.

International defence relationships

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 this 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 examination of options for developing the structure of the two countries' defence forces to strengthen their ability to operate together. Recent work has focused on studying the potential augmentation of each country's armed forces by the armed forces of the other.

The Five Power Defence Arrangements. The basis of the Five Power Defence Arrangements 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 should be under external threat. The NZDF takes an active part in exercises which are designed to improve the ability of the forces of the five nations to operate together.

Mutual Assistance Programme. Most 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 co-operation and advisory assistance, the programme contributes to the effectiveness of defence and paramilitary forces in New Zealand's South Pacific neighbourhood. It also supports development projects in the South Pacific by using the engineering and trade skills of the armed forces. The most common forms of cooperation and assistance are the provision of formal courses or on-the-job training in New Zealand, the deployment overseas of training and technical teams, and 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. In South-east Asia, the programme serves as a vehicle for regular interaction between the NZDF and the armed forces of the ASEAN countries. As well as deriving benefit from training cooperation, the NZDF gains valuable opportunities for bilateral exercises.

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 access to New Zealand ports by ships of the United States Navy, the ANZUS Council has not met since 1984.

DEFENCE FORCE LOCATIONS

Foreign Minister Don McKinnon presides over the Burnham Declaration signing by Gerard Sinato, left, and Joseph Kabui, on 18 July 1997.

Liaison with other countries. To facilitate exchanges on military matters, defence representatives are posted to many of New Zealand's diplomatic missions, with some of those representatives also accredited to other countries. A number of countries have service representatives attached to their diplomatic missions in Wellington or have service attaches accredited to, but not resident in, New Zealand.

Armed forces overseas as at 31 December 1997

Bougainville Truce Monitoring Group. A New Zealand-led group was deployed to Bougainville in November 1997 to monitor the Burnham Truce agreed between the warring factions. The 150-strong group had a mandate to monitor the truce in preparation for the leaders' meeting held at Lincoln in January 1998.

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

Sinai Multinational Force and Observers (MFO). This force was established in April 1982 to verify compliance with the terms of the 1979 peace treaty between Egypt and Israel. Nine countries contribute to MFO, which included a 25-strong New Zealand contingent comprising a training and advisory team, a heavy transport section, and engineers.

United Nations Observer Mission in Angola (MONUA). New Zealand contributed six personnel to this mission as military observers, and staff a de-mining school.

Former Yugoslavia. The NZDF contributed eight staff officers to fill a range of appointments on the British headquarters within the Stabilisation Force (SFOR). A deployment of 15 Royal New Zealand Artillery personnel was to be made to the British forces in SFOR early in 1998. The Defence Force also maintained military observers with the three UN missions that continued in the former Yugoslavia. One observer was deployed with UNMOP (Croatia), one with UNPREDEP (Macedonia), and five with UNTAES (Croatia), including the chief military observer.

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. This task was completed and the mission moved on to its long-term monitoring phase. New Zealand contributed 12 personnel to this mission to provide medical and administrative support.

Cambodian Mine Action Centre. This is a de-mining training centre set up by the Cambodian Government, with assistance from outside agencies. New Zealand had an operations officer and a logistics officer working at the centre.

Mozambique Mine Clearance Organisation. There were two New Zealand mine experts in Mozambique assisting the de-mining operation, including the chief technical adviser.

Unexploded Ordnance Programme Laos. New Zealand provided two officers for this programme.

United Nations Headquarters, New York. Four New Zealand personnel were carrying out staff duties at the headquarters in New York. Two were employed as demining advisers and two as staff officers in the UNSCOM headquarters.

RNZAF Skyhawk Detachment, Nowra. A detachment of six RNZAF Skyhawk aircraft and 57 flying and ground crew was 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.

Singapore and Malaysia. A small administrative element, known as the New Zealand Defence Support Unit, was based in Singapore to support bilateral exercises under the Five Power Defence Arrangements and the Mutual Assistance Programme, continuing single-service deployments, and training attachments. Two RNZAF officers were serving at the headquarters of the Integrated Air Defence System at Butterworth, Malaysia.

Exercises

New Zealand ships participate in the Five Power Defence Arrangements (FPDA) maritime exercise STARDEX, held annually, and in the FPDA maritime exercise FLYING FISH, held triennially, in Malaysian and Singaporean waters. The RNZN hosts Exercise TASMANEX, biennially, with forces participating from regional countries. They also participate in bilateral and multilateral exercises in Australia.

Significant army exercises include TAIAHA TOMBAK. a company deployment to Malaysia; SWIFT EAGLE, a bilateral interoperability exercise held in Australia; TAKROUNA, a combined battalion-level field exercise; SUMAN WARRIOR, an FPDA command-post exercise which in 1997 was held in New Zealand; and SILICON SAFARI, a combined Australian and New Zealand war-gaming exercise.

The Air Force deploys aircraft to Australia and South-east Asia each year to participate in bilateral and FPDA air-defence and maritime exercises. The Air Force also competes for the Fincastle Trophy, an anti-submarine warfare competition between Australia. Canada, New Zealand and the United Kingdom. Air-transport exercises include the competition Exercise BULLSEYE. Exercise TROPIC ASTRA practises tactical helicopter flying operations in a tropical environment.

Personnel exchanges. Members of the Defence Force participate in annual exchanges with personnel from the defence forces of Australia. Canada and the United Kingdom.

Community assistance

Hydrographic survey. The Navy, under contract to Land Information New Zealand, produces all nautical charts for New Zealand, including the Ross Dependency, and for a large area of the South Pacific including Niue, Tokelau. Western Samoa and the Cook Islands. The Navy has operated 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 1996-97 survey work was undertaken off the west coast of the North Island and off Fiordland. A new hydrographic and oceanographic vessel, HMNZS Resolution, has entered service and commences operations in 1998 following the decommissioning of Monowai.

Fisheries protection. Naval ships and Air Force Orion aircraft patrol the New Zealand 200-mile exclusive economic zone. Information from surveillance patrols is passed to the Ministry of Fisheries. At times fisheries officers are aboard the aircraft or ships when the patrols are conducted. The Air Force conducted 106 patrols in the New Zealand area and the South Pacific in 1996-97.

Search and rescue. All three services maintain a search and rescue capability, with naval and air units maintained on a 24-hour stand-by. The Navy and Air Force have assisted in extensive sea searches, while the Army and the Air Force have assisted police in land searches and rescues. The Air Force is also able to carry out emergency medical evacuation missions throughout New Zealand and the South Pacific.

Antarctic support. Defence Force support for the New Zealand Antarctic Programme in 1996-97 included 12 return flights to McMurdo Base by Hercules aircraft. One Iroquois helicopter with two crews was stationed at McMurdo from October to February. Other support included air-cargo handling at Christchurch and McMurdo. pre-departure training camps for Antarctic Programme personnel, and communications and support personnel at Scott Base in Antarctica. Similar support was scheduled for the 1997-98 season.

Bongainville peace monitor at work.

New Zealand Cadet Forces. The Cadet Forces comprise the Sea Cadet Corps, Air Training Corps and the New Zealand Cadet Corps. These are community-based youth groups which receive assistance from the New Zealand Defence Force, and support from the Sea Cadet Association of New Zealand, the Air Training Corps Association of New Zealand, the New Zealand Army Association, schools' boards of trustees, and the New Zealand Returned Services Association. There were 99 active cadet units at 30 June 1997 with a total strength of 4,400.

Limited Service Volunteer Scheme. Limited Service Volunteer training courses have been conducted since May 1993. Since 1995 the courses have been run by the Army at Burnham Camp. The programme provides young unemployed volunteers with six weeks of residential training in outdoor activities and general life skills. A total of 391 volunteers successfully completed the training course in the year ended 30 June 1997. The Army also provides some work-experience courses for the long-term unemployed.

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.

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.

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 table 4.2.

Table 4.2. DEFENCE EXPENDITURE

ItemYear ended 30 June
19971998
Source: New Zealand Defence Force. Ministry of Defence
 $(000)$(000)
Personnel493,866 R512,062
Operating319,327 R316,016
Depreciation195,665 R205,214
Capital charge383,850 R373,573
    Total output expenses1,392,708 R1,406,865
Less—
Revenue(61,938)R(49,818)
Surplus/(Deficit)630R 
Subtotal61,308 R49,818
Crown revenue provided1,331,400 R1,357,047

Table 4.3. NUMBER OF DEFENCE PERSONNEL

As at 30 JuneNavyArmyAir ForceTotalCivilians (NZDF & MOD)
Source: New Zealand Defence Force, Ministry of Defence
19932,3404,5423,44010,3222,595R
19942,1884,5163,36810,0722,513R
19952,1524,5103,2969,9582,024R
19962,0744,3493,1889,6112,103R
19972,0804,3912,9919,4622,243R

Table 4.4. INTERNATIONAL COMPARISON OF DEFENCE EXPENDITURE

 Percentage of GDP
1993199419951996199719981

1Estimated.

2Year ended 30 June.

3Year ended 31 March.

4Year ended 30 September.

Source: New Zealand Defence Force

Australia22.42.32.22.12.01.9
Canada31.71.51.61.51.31.2
New Zealand21.51.51.41.31.41.4
Sweden22.52.62.62.52.32.3
United Kingdom34.13.73.43.13.02.7
United States of America44.74.23.93.43.23.0

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.

Shore establishments. The naval base at Devonport, Auckland, consists of the office of the Maritime Commander (the operational authority for the RNZN), HMNZS Philomel (the naval barracks and base support establishment), the Royal New Zealand Naval Hospital, and the Naval Supply Depot. Collocated with the naval base is the dockyard, a comprehensive engineering facility for the support of naval vessels. The dockyard is managed by Babcock New Zealand Limited. HMNZS Tamaki is the naval training establishment at Devonport. The RNZN Armament Depot is located at Kauri Point and the RNZN Hydrographic Office is at Takapuna. HMNZS Wakefield, in Defence Headquarters, is the administrative unit for RNZN personnel in the Wellington area. There are four divisions of the Royal New Zealand Naval Volunteer Reserve, based at Auckland (HMNZS Ngapona), Wellington (HMNZS Olphert), Christchurch (HMNZS Pegasus), and Dunedin (HMNZS Toroa). There is also a port headquarters in Tauranga.

Off Devonport the new frigate, Te Kaha, lives up to her name, Strength.

The Navy's new logo.

Table 4.5. STATE OF THE NAVY

Frigates
Source: New Zealand Defence Force
(ANZAC class)Te KahaNaval Combat Force
(Leander class)Wellington
Waikato
Canterbury
Fleet tankerEndeavourNaval Logistic Support Force
Military sealift shipCharles Upham
Survey shipMonowaiHydrographic Survey Force
Inshore survey craftTakapu
Tarapunga
Diving support vesselManawanuiMaritime Mine Warfare Force
Inshore patrol craftMoa
Kiwi
Wakakura
Training tenderKahu 
Dockyard service craftAratiki

Monowai was to be replaced by HMNZS Resolution in the hydrographic and oceanographic roles from early 1998. Te Mana, the second of the RNZN's ANZAC-class frigates, was expected to be handed over to the RNZN in March 1999. The Seasprite SH2F helicopter was scheduled to enter RNZN service in April 1998. Charles Upham is at present on charter in Spain.

Table 4.6. STRENGTH OF THE NAVY

CategoryAt 30 June
1994199519961997
Source: New Zealand Defence Force
Regular forces—
    Officers400395391395
    Ratings1,7881,7571,6831,685
        Total2,1882,1522,0742,080
Royal New Zealand Naval Volunteer Reserve (all ranks)424370367395

New Zealand Army

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

Although the Ottawa Treaty to ban antipersonnel landmines was signed in December 1997, it does not come into force until ratified. Even when countries agree to no longer manufacture, store or transfer landmines, there are many millions of landmines remaining in the ground, mostly in Third World countries. The New Zealand Army has won a high reputation for its demining training teams in Cambodia (seen here), Afghanistan, Mozambique and Angola.

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

  • A deployable Regular Force infantry battalion group.

  • A deployable Regular and Territorial Force brigade group.

  • 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 had the following structure:

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

Headquarters Support Command—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.

The Army was scheduled to have established, by mid-1998, a single operational-level command, Headquarters Land Command, at Trentham to command the field Army and its training and support systems. Army General Staff remains concerned primarily with development of policy and the management of logistic and support functions.

State of the Army. Major army units comprise two Regular Force infantry battalions, six Territorial Force infantry battalions, a light armoured regiment, a field artillery regiment, an engineer regiment, three signals squadrons, a Special Air Service group, and four logistics regiments. Major equipment includes 8 combat reconnaissance vehicles (tracked), 78 armoured personnel-carriers, 32,105mm guns/howitzers and 50 81 mm mortars.

Table 4.7. STRENGTH OF THE ARMY

CategoryAt 30 June
1994199519961997
Source: New Zealand Defence Force
Regular forces
    Officers631627612715
    Other ranks3,8853,8833,7373,676
        Total4,5164,5104,3494,391
Territorial Force (all ranks)4,4804,3714,1523,680

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, supported by the Air Staff, commands the RNZAF.

Organisation. The RNZAF is organised into one functional group: Air Command. With its headquarters at RNZAF Base Auckland, it is responsible for all operational functions, all training and all support functions. Operational flying units are based at RNZAF Base Auckland and RNZAF Base Ohakea, with a detachment of Iroquois helicopters at Christchurch. RNZAF Base Ohakea also hosts primary flying training, while most ground training is done at RNZAF Base Woodbourne. The RNZAF Museum is based at Wigram, with a wing of the museum at RNZAF Base Ohakea.

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

Table 4.8. STATE OF THE AIR FORCE

 AircraftLocation
Source: New Zealand Defence Force
Maritime patrol6 OrionsRNZAF Base Auckland
2 Boeing 727s
Transport4 Andovers
5 Hercules
6 Wasps (operated by RNZN)
Helicopters5 Sioux
11 Iroquois
2 IroquoisNo. 3 Squadron
detachment,
Christchurch
Air attack6 SkyhawksHMAS Albatross,
Nowra, NSW
 13 SkyhawksRNZAF Base Ohakea
Flying training17 Aermacchi
15 Air Trainers

Table 4.9. STRENGTH OF THE AIR FORCE

CategoryAt 30 June
1994199519961997
Source: New Zealand Defence Force
Regular forces
     Officers620619620640
     Other ranks2,7482,6762,5682,351
          Total3,3683,2953,1882,991
Territorial Air Force136101170180

4.5 Intelligence and security

The Inspector-General of Intelligence and Security advises each minister responsible for an intelligence and security agency in the oversight and review of those agencies. In particular, the Inspector-General is responsible for assisting the minister to ensure that the activities of New Zealand intelligence and security agencies comply with the law and that complaints relating to New Zealand intelligence and security agencies are independently investigated.

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. It is not a function of the Service to enforce measures for security or to further the interests of a political party. The New Zealand Security Intelligence Service Act 1969 does not limit the right of persons to engage in lawful advocacy, protest or dissent in respect of any matter and the exercise of that right shall not, of itself, justify the service in instituting surveillance of any person or entity within New Zealand.

The service is subject to oversight and review by an Inspector-General and the Intelligence and Security Committee, both of which were established by acts passed in 1996.

During the year ended 31 March 1997, 5 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). A further 3 warrants were issued for the purpose of that sub-paragraph before but remained in force at some time during the year ended 31 March 1997. The average term for each warrant was 3 months and 6 days. The methods of interception used were listening devices and the copying of documents.

Table 4.10. EXPENDITURE ON INTELLIGENCE AND SECURITY AGENCIES

Year ended 30 JuneEABSISGCSB
Source: External Assessments Bureau, Security Intelligence Service and Government Communications Security Bureau
 $(000)
19932,25610,30420,967
19942,2899,98719,279
19952,1219,96419,498
19962,2169,96818,541
19972,27410,51419,092

Government Communications Security Bureau

Responsible to the Prime Minister, the Government Communications Security Bureau (GCSB) provides information, advice and assistance to the New Zealand government, government departments and organisations. The GCSB is subject to oversight and review under the Intelligence and Security Committee Act 1996 and the Inspector-General of Intelligence and Security Act 1996. Its functions are:

Communications security and computer security—protecting information that is processed, stored or communicated by electronic or similar means and including,

  • the formulation of communications security and computer security policy, the promulgation of standards and the provision of material, advice and assistance to government departments and authorities, including the New Zealand armed forces, on matters related to the security and integrity of official information, the loss or compromise of which could adversely affect national security; and

  • the provision of advice as required by government departments and authorities in relation to sensitive information which, although unrelated to national security, requires protection from unauthorised disclosure for privacy, financial or other reasons.

Technical security—providing defence against eavesdropping and other forms of technical attack against New Zealand government premises world-wide.

Signals intelligence—providing foreign signals intelligence to meet the national intelligence requirements of the New Zealand government.

The GCSB head office is in Wellington, and it operates two communications stations, the Defence Communications Unit, Tangimoana, and the Defence Satellite Communications Unit, Waihopai, Blenheim. It was announced in July 1997 that the Waihopai satellite monitoring station will be expanded by installing a second antenna and a dome to cover it, at a cost of about $3.4 million.

External Assessments Bureau

Part of the Department of Prime Minister and Cabinet, the External Assessments Bureau (EAB), Te Ranga Tatari Take Tawahi, produces intelligence assessments of events and trends overseas to support informed decision-making by the government on events or trends likely to influence New Zealand's foreign relations and external interests. The staff of about 30 identify, collate, evaluate and analyse information collected from a range of sources, and prepare assessments and reports on political, economic, biographic, strategic and scientific matters.

Contributors

  • 4.1-4.3 Ministry of Foreign Affairs and Trade.

  • 4.4 New Zealand Defence Force.

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

Special articles

Asia 2000 Foundation of New Zealand; Ministry of Foreign Affairs and Trade; Department of Internal Affairs.

Further information

A Guide to the Ministry and its Work. Ministry of Foreign Affairs and Trade.

Army News. New Zealand Army (fortnightly).

Defending New Zealand. Rolfe, J. Institute of Policy Studies, 1993.

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

Development Business. Development Co-operation Division, Ministry of Foreign Affairs and Trade.

Diplomatic and Consular List. Ministry of Foreign Affairs and Trade (twice-yearly).

In the field for peace: New Zealand's contribution to international peace-support operations: 1950-95. John Crawford. New Zealand Defence Force, 1996.

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

Navy Today: RNZN News. Royal New Zealand Navy (monthly).

New Zealand Defence Quarterly. Ministry of Defence.

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

New Zealand International Review (every two months). Institute of International Affairs.

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

Report of the Asia 2000 Foundation of New Zealand (Parl Paper G.47). Report of the Ministry of Defence (Parl Paper G.4).

Report of the Ministry of Foreign Affairs and Trade (Parl Paper A.1).

Report of the New Zealand Defence Force (Parl Paper G.55).

RNZAF News. Royal New Zealand Air Force (fortnightly).

The shape of New Zealand's defence: A White Paper. New Zealand Government, Wellington, 1997.

The trans-Tasman relationship, Sir Frank Holmes. Institute of Policy Studies, 1996.

United Nations Handbook. Ministry of Foreign Affairs and Trade (annual).

The Institute of Policy Studies and the Centre for Strategic Studies, both at Victoria University of Wellington, publish books on international affairs and defence topics.

Chapter 5. Population

Children and early childhood professionals from a Dunedin Child Care Centre enjoy calm weather and low tide at St Clair Beach.

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. Continued low birth rates 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 2, 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 development of the country.

5.1 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 gold rushes, world wars and assisted immigration schemes, saw New Zealand's population growth rates fluctuate regularly.

POPULATION GROWTH
Percentage annual increase

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 1974 New Zealand's population has increased by over one-half of a million to reach 3.68 million at the 1996 Census, held on 5 March.

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, 127,866 during 1986-91 and 246,596 over the latest intercensal period, 1991-96.

Five take a dip at Moana Pool, Dunedin.

Enumerating our population

Results from the 1996 Census Post Enumeration Survey reveal that 45,000 New Zealand residents (1.2 percent of the population) were not enumerated by the 1996 Census. Likewise, at the time of the 1996 Census, 40,000 New Zealand residents were temporarily overseas and thus did not complete a census return. Since these people pay taxes, use health and educational facilities, vote, etc, they are for most purposes part of our administrative population base. Traditional ways of measuring the population, based on the de facto population concept, have excluded these people but included tourists temporarily visiting New Zealand. The 1996 Census enumerated 63,000 temporary visitors in New Zealand on census night.

In order to ensure that estimates more accurately reflect the population which resides in an area, Statistics New Zealand has adopted the “resident population" concept as a standard for producing official population estimates and projections.

The latest resident population estimates show New Zealand's total population has grown by more than 67,000 since the 1996 Census to reach 3,781,500 at 31 December 1997.

5.2 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 1956, 69 percent of the population resided in the North Island, by 1976 this figure had risen to over 72 percent and in 1996 was at almost 75 percent.

Christchurch building development expands up the Port Hills to meet the needs of a mushrooming population.

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

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.

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 5.4. MIGRATION BETWEEN REGIONAL COUNCILS, 1986-1996

Regional councilsUsually resident population aged 5 years and over at 1996 CensusIn-migration (2)Out-migration (3)Gross migration (2)+(3)=(4)Net migration (2)-(3)=(5)Migration effectiveness ratio (5)/(4)x100
Source: Statistics New Zealand
Northland125,40617,92218,04535,967-123-0.34
Auckland983,24464,90859,964124,8724,9503.96
Waikato321,08742,62742,91285,539-291-0.34
Bay of Plenty205,72833,22224,66057,8828,57114.81
Gisborne41,5625,1696,67511,844-1,503-12.69
Hawke's Bay131,31013,93216,62030,552-2,685-8.79
Taranaki98,3198,70312,60021,303-3,900-18.31
Manawatu-Wanganui210,79827,98131,43459,415-3,444-5.80
Wellington382,59934,52741,06475,591-6,534-8.64
Tasman35,1997,6925,77813,4701,91714.23
Nelson37,5758,1127,50015,6125973.82
Marlborough35,7126,6635,40012,0631,26310.47
West Coast29,9104,8125,41810,230-600-5.87
Canterbury436,65637,17931,38368,5625,8058.47
Otago173,11521,99920,67942,6781,3233.10
Southland89,7937,51512,84620,361-5,346-26.26

Urban and rural

New Zealand is a highly urbanised country with 85 percent of the population residing in urban areas at the 1996 Census. Cities have increased their dominance over time. By 1911, more than half the population was found in urban areas, rising to more than three-quarters by 1961. Since 1981, the proportion of New Zealanders living in urban areas has stabilised at around 85 percent.

URBANISATION
Selected countries and continents, 1996

The cities

At the time of the 1996 Census, while 85 percent of the population lived in urban areas, 69 percent lived in ‘main urban areas’ (places with 30,000 people or over).

Table 5.6. POPULATION OF 20 LARGEST URBAN AREAS AT SELECTED CENSUSES

Urban area188611911119361961198621991219962

1Excludes Maori.

2Boundaries as at 5 March 1996.

Source: Statistics New Zealand

Auckland33,161102,676226,366448,365821,647885,571997,940
Wellington25,94570,729159,357249,532325,711325,685335,468
Christchurch29,65580,193133,515220,510300,052307,179331,443
Hamilton1,2013,54220,09650,505140,106148,625159,234
Dunedin23,24364,23785,607105,003107,639109,503112,279
Tauranga1,1481,3465,80824,65963,25470,80382,832
Palmerston North2,60610,99124,37243,18567,40570,95173,862
Hastings1,5046,28617,92032,49057,50957,74858,675
Rotorua...2,3908,89925,06851,99153,70256,928
Napier7,68011,73619,17032,71653,27652,46855,044
Nelson7,3158,23413,49325,32144,59347,38852,348
Invercargill8,25115,85825,91241,08852,55851,98449,306
New Plymouth3,0935,23818,59732,38747,38448,51949,079
Whangarei...2,6649,86821,79044,31844,18345,785
Wanganui4,90114,70225,75035,69440,75841,21341,320
Gisborne2,1948,19615,87825,06532,23831,48432,653
Kapiti...1,0685,36712,30523,20327,38030,004
Timaru3,75411,28018,77126,42428,67627,63727,521
Blenheim3,0943,7715,03611,95622,68123,63725,875
Taupo    17,60218,36921,044

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

URBAN DRIFT
Ratio of urban to rural population

A recent feature of urbanisation has been the growing concentration of people in Auckland. In 1996, 29 percent of New Zealand's population lived there, compared with only 14 percent 70 years earlier.

Between 1991 and 1996, most main urban areas experienced population growth, particularly those located in the north of both islands. However, almost half of the secondary urban areas either lost population or grew very slowly. While the New Zealand population increased by 7 percent between 1991 and 1996, the population of main urban areas grew by 8 percent, secondary urban areas by 3 percent and minor urban areas by almost 4 percent.

Population of local government areas today

Tables 5.7 and 5.8 outline the resident population of New Zealand's 74 territorial authority areas and 16 regional councils.

Table 5.7. RESIDENT POPULATION OF TERRITORIAL AUTHORITY AREAS

Cities/districtsAdjusted population at 5 March 19961Estimated population at 30 JuneAnnual rate of population increase or (-) decrease, June 1996-1997
19961997

1The population base for these estimates is the number of New Zealand residents in New Zealand on census night, 5 March 1996, adjusted for the estimated undercount at the 1996 Census (45,000) and for the estimated number of New Zealand residents temporarily overseas on 5 March 1996 (40,000). Total New Zealand population includes people on shipboard and oil rigs, and the population of Campbell, Kermadec, Mayor and Motiti Islands (not within city or district boundaries). Because of rounding, separate figures may not always add up to give the stated totals.

Source: Statistics New Zealand

 numberpercent
Cities
North Shore177,600178,400182,3003,9002.2
Waitakere159,500160,200164,2004,0002.5
Auckland357,400361,900372,60010,7003.0
Manakau262,600264,200271,1006,9002.6
Hamilton110,900111,100113,7002,6002.3
Napier54,50054,60054,9003000.5
Palmerston North74,60074,90075,1002000.3
Porirua47,80047,80047,800--
Upper Hutt37,50037,50037,500--
Lower Hutt98,20098,30098,5002000.2
Wellington162,300162,700164,6001,9001.2
Nelson41,00041,00041,400400,1.0 
Christchurch315,900316,700320,5003,8001.2
Dunedin120,400120,400120,300-100-0.1
Invercargill54,10054,00053,100-900-1.7
         Total, cities2,074,4002,083,8002,117,50033,7001.6
Districts
Far North54,10054,10055,1001,0001.8
Whangarei68,00068,00068,8008001.2
Kaipara17,70017,70017,750500.3
Rodney67,90068,00070,4002,4003.5
Papakura40,70040,80041,2004001.0
Franklin48,80048,90050,2001,3002.7
Thames-Coromandel25,30025,20025,9007002.8
Hauraki17,65017,70017,700--
Waikato40,00040,00040,3003000.8
Matamata-Piako30,20030,20030,100-100-0.3
Waipa39,60039,60039,8002000.5
Otorohanga9,8809,9009,950500.5
South Waikato25,60025,70025,300-400-1.6
Waitomo9,9509,9609,810-150-1.5
Taupo31,40031,40031,9005001.6
Western Bay of Plenty35,60035,70036,7001,0002.8
Tauranga79,30079,20082,2003,0003.8
Rotorua65,90066,10066,7006000.9
Whakatane33,80033,90034,1002000.6
Kawerau8,0308,0507,920-130-1.6
Opotiki9,5809,6009,660600.6
Gisborne46,80046,80046,800--
Wairoa10,15010,15010,050-100-1.0
Hastings67,60067,70068,1004000.6
Central Hawke's Bay13,25013,25013,200-50-0.4
New Plymouth69,30069,40069,200-200-0.3
Stratford9,6909,7009,580-120-1.2
South Taranaki29,60029,60029,200-400-1.4
Ruapehu17,15017,20017,050-150-0.9
Wanganui45,80045,80045,700-100-0.2
Rangitikei16,65016,65016,450-200-1.2
Manawatu28,50028,60028,600--
Tararua19,40019,40019,150-250-1.3
Horowhenua30,70030,70030,600-100-0.3
Kapiti Coast39,30039,30039,8005001.3
Masterton23,20023,20023,100-100-0.4
Carterton6,9306,9106,840-70-1.0
South Wairarapa9,1009,1008,970-130-1.4
Tasman38,60038,60039,0004001.0
Marlborough39,00039,00039,4004001.0
Kaikoura3,5803,5703,590200.6
Buller10,70010,70010,600-100-0.9
Grey13,95013,95014,000500.4
Westland8,4308,4008,410100.1
Hurunui9,5509,5709,610400.4
Waimakariri32,90032,90033,7008002.4
Banks Peninsula7,7407,7307,720-10-0.1
Selwyn25,30025,40026,2008003.1
Ashburton25,60025,60025,7001000.4
Timaru43,30043,30043,100-200-0.5
Mackenzie4,1504,1504,210601.4
Waimate7,7307,7607,720-40-0.5
Chatham Island750750750--
Waitaki21,90021,90021,800-100-0.5
Central Otago15,20015,15015,100-50-0.3
Queenstown-Lakes14,65014,75015,4006504.4
Clutha18,30018,35018,250-100-0.5
Southland31,00031,00030,800-200-0.6
Gore13,50013,45013,350-100-0.7
         Total, districts1,627,7001,629,4001,642,30012,9000.8
Total, New Zealand3,703,0003,714,1003,760,70046,6001.3

Population shifts over recent years have put more pressure on community facilities in northern New Zealand, particularly in the Auckland area. Schools have suffered classroom shortages, such as at Ponsonby Intermediate where these students carry classroom furniture into the neighbouring rugby clubrooms, their temporary home while two new classrooms are completed.

The changing age structure of New Zealand society has emphasised the need to maintain good relationships within families.

5.3 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 rise in the number of deaths. In 1981-85 births exceeded deaths by 125,109, a drop of nearly 40 percent on 20 years earlier. However, in 1991-95, births exceeded deaths by 157,314, an increase of 26 percent over 1981-85.

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. (Fertility, the actual reproductive performance of a population, is measured by the number of live births per 1,000 women aged between 15 and 49 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 2 and the resulting increase in marriages and births, the fertility rate recovered to 3.6 births per woman in 1947.

COMPONENTS OF POPULATION GROWTH
Annual net migration and natural increase

Natural increase (excess of births over deaths): For this line, the change for 1961-90 is de facto population change; the change for 1991-97 is in resident population.
Net change through migration (excess of arrivals over departures, excluding through passengers and crews): For this line, the change for 1961-90 is of total migration (used in estimating the de facto population): the change for 1991-97 is of permanent and long-term migration (used in estimating the resident population).

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 most common age group for childbearing. The median age at first birth fell from 25.4 years in 1945 to 22.8 years in 1964. Fewer couples remained childless or had only one child. The net result was soaring birth numbers, up from just 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 1946 and 1965—the ‘babyboomers’.

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, but the total fertility rate dropped from 2.10 in 1993 to 2.04 in 1995. This level of fertility 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.

IMPLIED FAMILY SIZE
Total fertility rate*

Note: Final rates for 1996, and revised rates for 1991-1995, will be published in the next Yearbook. The revised rates, and all future rates, will use Statistics New Zealand's new resident population concept as the denominator, replacing the de facto population which has been used in the past.

The first baby born in 1997 at Dunedin Hospital, Logan Andrew Barnes.

MEDIAN AGE OF CHILDBEARING
Based on live confinements (multiple births are counted only once)

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 toward later marriage and delayed childbearing. (See also section 6.2: Marriage.)

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 five years later than they did in the 1970s. The average age at first marriage in 1996 for women was 27.1 years and 29.2 years for men. This compares with 22.2 and 24.8 years, respectively, in 1976.

A growing proportion of New Zealanders are remaining single through their twenties. The substantial postponement of marriage has been partly offset by the growth of de facto relationships (cohabitation outside marriage). Such relationships may be either a prelude to or a substitute for formal marriages.

The growth in de facto unions partly accounts for the rise in the number of ex-nuptial births (children born to women who are not legally married to the child's father), up from almost 7,000 in 1966 to almost 10,000 in 1976, and to over 24,000 in 1997. Ex-nuptial births comprised 12 percent of all births registered in New Zealand in 1966, and 42 percent in 1997. Changing social norms and the availability of social welfare benefits to single parents have contributed to this increase.

BIRTHS OUTSIDE MARRIAGE
Ex nuptial birth rate*

Note: Final rates for 1996, and revised rates for 1991-1995, will be published in the next Yearbook. The revised rates, and all future rates, will use Statistics New Zealand's new resident population concept as the denominator replacing the de facto population which has been used in the past.

There is also a high incidence of ex-nuptial births among Maori. In 1995, 80 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.

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 6.18 births per woman in 1962 to 2.19 births per woman in 1990, a 65 percent drop. However, the Maori fertility rate rose slightly to reach 2.38 in 1995. The gap between Maori and non-Maori fertility narrowed from 2.14 in 1962 to 0.02 births per woman in 1990, but has widened slightly to 0.39 in 1995.

BIRTH AND DEATH RATES
For total population*

Note: Final rates for 1996, and revised rates for 1991-1995, will be published in the next Yearbook. The revised rates, and all future rates, will use Statistics New Zealand's new resident population concept as the denominator, replacing the de facto population which has been used in the past.

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.

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.

LONGER LIVES
Average age at death

LIFE EXPECTANCY
At birth for selected periods*

Since 1970-72, there has been a gain of a little over 5 years in the life expectancy at birth of men and 4.5 years in women. 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 6.7 per 1,000 in 1995, it is still high compared with some European countries, particularly its post neo-natal component (i.e. death of a child over 28 days but under 1 year of age) (see also section 8.3: 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 2 years. By 1950-52 the female advantage had increased to 4 years, and by 1990-92, it was about 6 years. Of recent years the female-male differences in mortality appear to have stabilised at just under 6 years.

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, again 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 5.12. HISTORICAL LIFE EXPECTANCIES: INTERNATIONAL COMPARISON
Expectation of life at birth, in years

CountryYear/PeriodMalesFemales

1Non-Maori population only.

Source: Statistics New Zealand

New Zealand1901158.160.6
Australia1901-1055.258.8
Denmark1895-190050.253.2
Japan1899-190337.838.2
Norway1891-190050.454.1
United Kingdom190648.051.6
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 Zealand1992-9473.479.1
Australia199375.080.9
Denmark1991-9272.477.8
Japan199276.182.2
Norway199274.280.3
United Kingdom199073.078.5
New Zealand1994-9674.2079.51
Australia1994-9675.2081.05
Denmark1993-9472.677.9
Japan199576.482.8
Norway199474.980.6
United Kingdom199373.879.1

As New Zealand's population ages, the need for high-quality accessible hospice and palliative care services, like Te Omanga hospice in Lower Hutt, is becoming more urgent. The government expects them to be funded jointly by the community and the health authorities.

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 2 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 from 254,000 during 1968, to 2.5 million during the year ended 31 March 1996. This reflects the ease and relatively low cost of international travel, with tourists making up the bulk of the international traffic. During 1968-91, total departures exceeded total arrivals by an average of 111 people per annum. However, in the year ended 31 March 1996 arrivals exceeded departures by 28,609 emphasising the large swings in the external migration balance from one period to another, as shown in table 5.13.

The 1980s brought radical changes in permanent and long-term migration (people whose stated intention is arriving to settle, or departing for 12 months or more). This had shown an almost unbroken upward trend since the 1950s, rising from 6,886 in 1950 to 81,008 in 1979. In the year ended March 1980, the number of permanent and long-term departures declined by 6 percent. By 1984 the number of emigrants had fallen to 34,147. A drop in departures to Australia accounted for about three-fifths of this decline. For the first time since 1976, more people arrived in New Zealand than left in 1983 and 1984, giving small gains to the country of 3,180 and 6,558 respectively for those years. However, the turnaround was short-lived. During the remainder of the 1980s, the number of departures resumed an upward movement, reaching a peak in 1989 with 70,941 emigrants, giving a net outflow of 24,708 people for that year.

The 1990s have seen a return to net population gains from migration, resulting from both increases in the number of permanent and long-term arrivals, and decreases in departures. In the year ended March 1991, there was a net gain of 11,616 people. By 1995 this had almost doubled to 21,697 people and by 1996 reached 29,832—the highest recorded (March year) gain of permanent and long-term migrants. The year ended March 1997 recorded a lower net gain of 20,948. These gains have occurred despite net losses of population to Australia. In 1996 there was a net outflow of 9,156 people to Australia. This figure increased further to 12,054 in 1997.

Immigration from the South Pacific countries, although small in size, is continuing. Net migration from Asia has shown a large increase over recent years. In 1988 net permanent and long-term migration from Asian countries was 3,998 and by the year ended 31 March 1997 it had risen to 19,341.

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. The 1996 Census shows that there were 1,809,309 males and 1,872,237 females in New Zealand representing a sex ratio of 97 males per 100 females. The shift largely reflects the preponderance of females among the elderly population (65 years and over) which carried a sex ratio of 76 males per 100 females in 1996. At ages below 65 years, women now outnumber men by a small margin.

Changes in the age structure of New Zealand's population have been 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.

AGE-SEX DISTRIBUTION
Total population at selected years

CHANGING AGES
Median age of the total population*

Auckland, the city with New Zealand's greatest cultural and ethnic diversity, now has 18 Asian newspapers and magazines.

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 (i.e. those aged 15-64 years) in the population—only 58 percent in 1961. The elderly population (aged 65 years and over) increased in size by 42 percent between 1945 and 1961, to make up over 8 percent of the total population. As the ‘youth’ and ‘aged’ components reinforced each other, the dependency ratio lifted sharply to 0.72.

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 7.5 years since 1971, from 25.6 years to 33.1 years in 1996. The dependency ratio has fallen to a more favourable 0.53, due largely to a sharp drop in the ‘youth’ component.

At the 1996 Census, there were 835,830 children under the age of 15 in New Zealand (down from 909,623 in 1971). They made up just under 23 percent of the population. The working-age population has risen considerably since 1971 (by over half a million) to number 2,413,190 at the 1996 Census. Despite this numerical increase, the proportion of the population in the working ages has declined slightly since the late 1980s. The greatest change in the age structure of the population is at the older ages. Since 1971 the number of people aged 65 years and over has increased by more than one-and-a-half times and the number aged 80 years and over has doubled.

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.

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 from the British Isles, 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 14.5 percent in 1996. The third main ethnic group is the Pacific Island people, who made up 5.6 percent of the population at the time of the 1996 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 inter-marriage 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 fewer 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.

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 1996 people who belonged to the Maori ethnic group numbered 523,374 and made up 14.5 percent of the population. Those with some Maori ancestry made up 16.0 percent of the population and numbered 579,714.

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 and 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 1995 the Maori total fertility rate was 2.4 births per woman, 0.4 higher than that for the total population.

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 was 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 urbanisation amongst Maori has remained at this level.

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 1991,12.4 percent lived in the South Island while 24.9 percent of all New Zealanders 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 and in 1996 had risen to 21.4 compared with 32.3 years for the total resident population. 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. By 1986 this had fallen to 39 percent and continued to decline to be 33 percent in 1991. Despite these changes the Maori population is still relatively youthful in comparison with the total New Zealand population.

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). In 1971 and 1986, 48 percent and 57 percent of the Maori population were in the working ages (15-59 years). By 1996, 59.4 percent of Maori were in the working ages—closer to the 65.3 percent of the total resident population. Within the working age group, however, a higher proportion of Maori were in the 15-29 age group (45.7 percent of Maori compared with 24 percent of the total resident population).

Although the Maori population is moving towards a more elderly age structure it is still younger than the non-Maori population. In 1996 there were larger proportions of Maori than non-Maori in each age group under 34 years.

See also section 6.4: Maori society.

Pacific Island Polynesians. Since the early 1960s the cultural and ethnic diversity of New Zealand has been enhanced by the inflow of people from the Pacific Island to New Zealand. The population from Pacific Island ethnic groups has grown from a little over 100,000 in 1981 to over 202,000 at the 1996 Census.

In the 1970s, as a result of economic downturn, immigration from the Pacific dropped sharply, and natural increase became the major influence on the growth of the Pacific Island population. The early 1980s saw a return to net migration gains from the Pacific. From 1980 to 1984, there were 8,354 more arrivals than departures and the second half of the 1980s saw arrivals from the Pacific outnumbering departures by over 37,000. The early 1990s saw a temporary reversal of this trend, but since 1995 arrivals have continued to exceed departures.

See also section 6.5: Pacific Island population.

Refugees. Refugees from Europe arrived in the 1930s and again during World War 2. This migration 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, Assyrian, Ethiopian, Bosnian and Somali 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 6.3 Human rights, immigration and citizenship.

5.5 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 1996-base New Zealand Resident Population Projections were released in October 1997 and cover the period 1998-2051.

The medium projection assumes that New Zealand women will have 1.85 children, on average, life expectancy at birth will increase by 6 years and there will be a net migration gain of 5,000 people a year (the average annual level over the last 100 years). According to this projection New Zealand's population will grow from 3.71 million in 1996 to 4.53 million in 2039, an increase of 820,000, or 22 percent. The population is then projected to decrease slightly to reach 4.49 million by 2051.

A migration gain of 10,000 a year (the government's new target announced in December 1997) would result in a population of 4.84 million by the year 2051, an increase of 1.31 million or 30 percent, over the 1996 population.

The following highlights are based on the medium projection (annual migration gain of 5,000).

The population growth rate is projected to slow down gradually mainly because of the narrowing gap between births and deaths. It will average 1.0 percent a year in the late 1990s, 0.3 percent a year in the late 2020s and will become negative from 2040, as deaths outnumber births by a growing margin.

The number of births is expected to decrease over the next 55 years from 57,000 in 1996 to 45,000 by the year 2051. This is a decrease of 12,000, or 21 percent, and partly reflects the projected low (below replacement level) fertility rates. The number of deaths will double over the same period, from 28,000 in 1996 to 56,000 in 2051. The increase will be greatest after 2011 as the large baby-boom generation begins to enter the older ages, where mortality is relatively high. The number of deaths is expected to exceed the number of births in the mid-2030s. Consequently, the natural increase (excess of births over deaths) will decrease steadily from 29,000 in 1996 to nil in 2035 and then reach -11,000 (a natural decrease) in 2051.

The chief choreographer of the Pacific cultural show “Return to Paradise" performs a contemporary version of a Samoan war dance.

Christchurch veteran Meals on Wheels deliverers, Ross McPherson and 99-year-old Max Bishop, discuss the day's menu.

Like other developed nations, our age structure will change significantly over the projection period and become older. Half of all New Zealanders will be over the age of 46 years in 2051, compared with a median age of 33 years in 1996.

The number of children (0-14 years) is projected to increase initially, from 846,000 in 1996 to 871,000 in 2001. The number will then generally decline to reach 696,000 by the year 2051, or 18 percent lower than in 1996. This reflects the combined impact of sub-replacement fertility and changes in the size of birth cohorts of women entering childbearing ages during the projection years. By 2051, children will comprise 16 percent of the population, well down from 23 percent in 1996.

The main working age population (15-64 years) is projected to increase from 2.44 million in 1996 to peak at 2.84 million in 2019, a growth of 400,000 or 16 percent. After this the number will decrease to 2.65 million in 2051. In 1996 this group comprised 66 percent of the total population, but this is projected to decrease to 59 percent by 2051.

The number of New Zealanders aged 65 years and over is expected to increase over the next 55 years, from 0.43 million in 1996 to 1.15 million in 2051. This is a rise of 720,000, or 167 percent, and reflects the combined impact of the projected improvement in life expectancy and the movement of the large baby-boom generation into retirement ages. By 2051, the elderly are expected to make up 26 percent (just over 1 in 4) of all New Zealanders, compared with 12 percent in 1996. In 1996, there were nearly twice as many children in the population as elderly. By 2051, the elderly will outnumber children by over 65 percent.

Table 5.16. PROJECTED NEW ZEALAND RESIDENT POPULATION1 AND MEDIAN AGE2, 1996 (BASE)-2051

Year at 30 JunePopulation by age group
0-1415-6465+TotalMedian age2

1Assuming medium fertility and mortality, and long-term annual net immigration of 5,000.

2Half of the population is younger and half older than this age.

Note: Owing to rounding, individual figures do not always sum to the stated totals.

Source: Statistics New Zealand

1996 (Base)8462,4384303,71433.0
20018712,5744563,90134.6
20118092,7945524,15438.0
20217632,8407504,35240.5
20317652,7499814,49542.4
20417272,6801,1234,53044.6
20516962,6451,1454,48645.8

Contributor

  • 5.1-5.5 Statistics New Zealand.

Special articles

Department of Internal Affairs; Statistics New Zealand.

Further information

A full list of 1996 Census of Population and Dwellings publications can be found in the Statistics New Zealand publications catalogue (which is also on the website, at www.stats.govt.nz).

Demography, vital statistics, and migration

All About Women in New Zealand. Statistics New Zealand, 1993.

Area Unit, Urban Area and Regional Council Maps (a set of 34 maps showing statistical area unit boundaries, Regional Council boundaries and urban area boundaries). Statistics New Zealand, 1996.

Briefing papers for the 1997 Population Conference. Population Studies Centre, University of Waikato, 1997.

Demographic Trends. Statistics New Zealand (annual).

External Migration Statistics. Statistics New Zealand (annual).

Foetal and Infant Deaths. New Zealand Health Information Service (annual).

Hospital and Selected Morbidity Data. New Zealand Health Information Service (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 (out of print).

Inter-regional Migration in New Zealand, 1971-1981. Department of Statistics, 1986 (out of print).

Key Statistics. Statistics New Zealand (monthly).

New Zealand Life Tables 1990-92. Department of Statistics, 1994.

New Zealand Now series. Statistics New Zealand, 1995.

New Zealand Sub-national Population Projections 1986-2006. Department of Statistics, 1985 (out of print).

Population issues for New Zealand: New Zealand National Report on population. Prepared for the International Conference on Population and Development, Cairo, September 1994. Statistics New Zealand.

Report on the 1996 Post Enumeration Survey. Statistics New Zealand, 1998.

Trends and Patterns in New Zealand Fertility, 1912-1983. Department of Statistics, 1986.

Chapter 6. Social framework

Te Takinga, the historic storehouse, is carried from the former National Museum, Buckle St, Wellington, to its new home at Te Papa Tongarewa Museum of New Zealand on the waterfront, in March 1997.

6.1 Households

There were 1,276,332 households living in private dwellings in New Zealand at the 1996 Census. This was an increase of 98,667 households (or 8.4 percent) over the 1,177,665 recorded at the 1991 Census.

Table 6.1 describes the number of households by type counted at the 1991 and 1996 censuses. ‘One family only’ households still remain predominant, although the share of households in this category fell from 65.9 percent in 1991 to 63.0 percent in 1996. ‘One person households’ are easily the next most common type, comprising 20.1 percent of all households in 1996, compared with 20.0 percent in 1991.

Table 6.1. USUAL HOUSEHOLD COMPOSITION

Type1991 Census1996 CensusIntercensal percentage change
NumberPercentage of totalNumberPercentage of total

1Includes visitor only households.

Source: Statistics New Zealand

One family only775,55765.9803,99463.03.7
One family plus other people66,3875.678,9096.218.9
One family, not further classifiable......21......
Two or more families (with or without other people)19,8181.732,1932.562.4
Other multi-person household68,8205.866,3605.2-3.6
One-person households235,98620.0256,57220.18.7
Not elsewhere classified111,0970.938,2833.0245.0
          Total1,177,665100.01,276,332100.08.4

Dwellings

The number of dwellings occupied on census night increased from 1,185,396 in 1991 to 1,283,991 in 1996, a rise of 98,595, or 8.3 percent.

Table 6.2 shows that the total number of permanent and temporary private dwellings increased during the 1991-1996 intercensal period. However there was a 23.3 percent decline in the number of flats or houses joined to a business or shop and a 62.7 percent decline in the number of baches, cribs or other holiday homes.

Table 6.2. TYPES OF DWELLINGS

TypeNumber of dwellingsIntercensal percentage change
19911996

1In the 1991 Census, bach, crib or hut (not in a work camp)

Source: Statistics New Zealand

Occupied dwellings—
    Permanent private dwellings—
        Separate house950,6461,050,14410.5
        Two houses or flats joined together110,103115,8125.2
        Three or more flats or houses joined together91,17993,3482.4
        Flat or house joined to a business or shop9,2797,119-23.3
        Bach, crib or other holiday home16,8762,565-62.7
        Not specified2,385......
            Total, permanent private dwellings1,170,4681,268,9918.4
        Temporary private dwellings7,1977,3382.0
        Total private dwellings1,177,6651,276,3328.4
        Non-private dwellings7,7317,662-0.9
            Total, occupied dwellings1,185,3961,283,9918.3
Unoccupied dwellings—
            Total, unoccupied dwellings122,711123,8370.9
Dwellings under construction9,60510,4498.8

HOUSEHOLD SIZE

Persons per dwelling

A visit from grandfather and cousin.

In contrast, there was a 0.9 percent decline in the number of non-private dwellings at the time of the census.

The percentage increase in occupied dwellings was not significantly different from that of the usually resident New Zealand population, leading to no significant change in the average number of usual household members per occupied dwelling. The average number of usual household members per private dwelling was 2.7 in both 1991 and 1996. Table 6.3 shows a small decline in the average number of usual household members for permanent private dwelling types and a small increase in the number of usual household members for temporary private dwellings.

Table 6.3. NUMBER OF OCCUPANTS IN OCCUPIED DWELLINGS

Type1991 Census1996 Census
AggregateAverageAggregateAverage

1In the 1991 Census, bach, crib or hut (not in a work camp)

Source: Statistics New Zealand

Permanent private dwellings—
    Separate house2,815,9383.03,066,6152.9
    Two houses or flats joined together215,8112.0231,4832.0
    Three or more flats or houses joined together157,2061.7170,1181.8
    Flat or house joined to a business or shop23,5712.518,0512.5
    Bach, crib, hut or other holiday home19,8041.42,4330.9
    Not specified6,0692.5--
            Total, permanent private dwellings3,228,3992.83,488,7002.7
Temporary private dwellings9,5161.311,2621.5
            Total, private dwellings3,237,9152.73,499,9622.7

Table 6.4 shows the number and distribution of occupied private dwellings by number of usual household members on census night in 1991 and 1996. Changes in distribution of dwellings by number of usual household members 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.

Table 6.4. NUMBER OF OCCUPANTS OF PRIVATE DWELLINGS

Number of usual household members1991 Census1996 CensusIntercensal percentage change
DwellingsPercentageDwellingsPercentage
Source: Statistics New Zealand
None11,0940.98,2350.6-25.8
One235,98620.0264,36320.712.0
Two381,51332.4420,02732.910.1
Three200,43017.0215,67016.97.6
Four195,21016.6201,95115.83.5
Five98,7698.4102,4088.03.7
Six35,1153.038,8923.010.8
Seven11,2561.013,7761.122.4
Eight or more8,2860.711,0100.932.9
            Total1,177,662100.01,276,332100.08.4

Tenure of Dwellings. A comparison of the 1991 and 1996 Census data shows changes in the tenure of private dwellings. These can be seen in table 6.5.

Occupied private dwellings owned with a mortgage decreased by 1.5 percent during the intercensal period to 449,394 in 1996. This category decreased its share of total private dwellings from 39.4 percent to 35.2 percent.

There was a small increase (of 0.1 percent) in the number of occupied dwellings owned without a mortgage during this period although the share of the total dwellings with this tenure status fell from 34.2 percent in 1991 to 31.0 percent in 1996.

The census also reported a 9.4 percent increase in the number of private dwellings rented or leased and an 18.3 percent increase in the number of private dwellings provided rent free.

Table 6.5. TENURE OF PRIVATE DWELLINGS

Tenure1991 Census1996 CensusIntercensal percentage change
DwellingsPercentageDwellingsPercentage
Source: Statistics New Zealand
Owned with mortgage456,44739.4449,39435.2-1.5
Owned without mortgage396,04234.2396,24931.00.1
Owned, mortgage not specified......18,4171.4...
Rented or leased267,34523.1292,34722.99.4
Provided rent free39,8043.447,1063.718.3
Not owned, rental status not specified......21,8011.7...
Not specified18,024...51,0154.0183.0
Total1,177,665100.01,276,332100.08.4

Table 6.6 shows a continued decline in the servicing of the rental housing market by government departments including Housing Corporation and local authorities.

In contrast to this, dwellings rented or leased from individuals and companies increased by 21.2 percent during the 1991-1996 intercensal period.

This remains the most common category, comprising 72.2 percent of rented dwellings in 1996, increasing from 63.7 percent in 1991.

The share of rented dwellings provided by Housing New Zealand (the former Housing Corporation) declined sharply from 25.0 percent in 1991 to 19.3 percent in 1996.

Table 6.6. CATEGORY OF LANDLORD FOR RENTED OR LEASED PRIVATE DWELLINGS

Category of landlord1991 Census1996 CensusIntercensal percentage change
DwellingsPercentageDwellingsPercentage

1Housing Corporation in 1991.

Source: Statistics New Zealand

Rented or leased from—
Private person/company163,24263.7197,85072.221.2
Housing New Zealand163,90325.052,81819.3-17.3
Other central government agencies13,4375.28,4723.1-37.0
Local authority15,5466.114,8505.4-4.5
Landlord not specified11,217-18,357--
            Total, rented or leased267,345100.0292,347100.09.4

Maori and Pacific Island households and dwellings

Composition of households. There was a total of 202,893 permanent private households in which at least one person of New Zealand Maori ethnicity was usually resident at the 1996 Census of Population and Dwellings.

The corresponding figure for Pacific Island households living in permanent private dwellings was 62,559.

In 1996 a New Zealand Maori dwelling (and, by definition, household) was defined as a dwelling with at least one usually resident person of New Zealand Maori ethnicity. 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 either because different people in that household may have different ethnicities or because any individual in the household may be of both Pacific Island and New Zealand Maori ethnicity.

Table 6.7 shows the usual household composition of New Zealand Maori and Pacific Island households at the 1996 Census.

A significant feature of this table is that the percentage distribution of Pacific Island households is weighted towards the ‘one family plus other people’ and ‘two families and other people’ categories. Of all Pacific Island households 29.3 percent are in the above categories compared to 19.6 percent of New Zealand Maori households.

Table 6.7. USUAL COMPOSITION OF MaORI AND PACIFIC ISLAND HOUSEHOLDS, 1996 CENSUS1

Household typeNew Zealand MaoriPacific Island
NumberPercentage of totalNumberPercentage of total

1Private dwellings where there is at least one usually resident person (excluding absentees) of ‘New Zealand Maori ethnicity’ or ‘Pacific Island ethnicity’.

2Includes visitors only households.

Source: Statistics New Zealand

One family only130,05064.136,74158.7
One family plus other people26,48113.110,77017.2
One family not further classifiable9..6..
Two families (with or without other people)13,1346.57,58412.1
Three or more families (with or without other people)1,0770.59361.5
Other multi-person households13,9806.93,3725.4
One-person households17,7518.43,0484.9
Not elsewhere classified24140.21110.2
            Total202,893100.062,559100.0

Types of dwellings. The 1996 Census distribution of New Zealand Maori and Pacific Island households by dwelling type is given in table 6.8. 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 or more houses or flats joined together.

Number of usual household members. The distribution of New Zealand Maori and Pacific Island dwellings by number of usual household members at the 1996 Census (see table 6.9) reinforces the patterns evident in the usual composition of households by these two ethnicities. Whereas 55.6 percent of New Zealand Maori dwellings have three or fewer usual household members, only 39.9 percent of Pacific Island dwellings do.

This can be partly explained by the lower average size of New Zealand Maori families and the tendency for Pacific Island dwellings to house more than one family.

TENURE OF PRIVATE DWELLINGS

Ropati and Simona and extended family.

HOME OWNERSHIP
By ethnic composition

Table 6.8. TYPES OF MaORI AND PACIFIC ISLAND DWELLINGS, 1996 CENSUS1

TypeNew Zealand MaoriPacific Island
NumberPercentage of total2NumberPercentage of total2

1Private dwellings where there is at least one usually resident person (excluding absentees) of ‘New Zealand Maori ethnicity’ or ‘Pacific Island ethnicity’.

2Calculated in terms of specified cases only.

Source: Statistics New Zealand

Occupied permanent private dwellings—
        Separate house172,12584.850,00479.9
        Two houses or flats joined together15,5917.76,0639.7
        Three or more flats or houses joined together12,5436.26,0189.6
        Flat or house joined to a business or shop1,1400.62850.5
        Bach, crib, or other holiday home11800.127-
            Total, permanent private dwellings201,57999.462,40099.7
Temporary private dwellings1,3140.61590.3
            Total, private dwellings202,893100.062,559100.0

Table 6.9. NUMBER OF OCCUPANTS OF MaORI AND PACIFIC ISLAND DWELLINGS, 1996 CENSUS1

Number of usual household membersNew Zealand MaoriPacific Island
DwellingsPercentage of totalDwellingsPercentage of total

1Private dwellings where there is at least one usually resident person (excluding absentees) of ‘New Zealand Maori ethnicity’ or ‘Pacific Island ethnicity’.

Source: Statistics New Zealand

None- - 
One17,8238.83,0604.9
One50,25924.810,22116.3
Two44,71822.011,68518.7
Four41,51420.512,45919.9
Five25,53012.69,93315.9
Six12,7326.36,57910.5
Seven5,5052.73,9036.2
Eight or more4,8122.44,7167.5
Total202,893100.062,559100.0

Table 6.10. TENURE OF MaORI AND PACIFIC ISLAND DWELLINGS, 1996 CENSUS1

TenureNew Zealand MaoriPacific Island
DwellingsPercentage2DwellingsPercentage2

1Private dwellings where there is at least one usually resident person (excluding absentees) of ‘New Zealand Maori ethnicity’ or ‘Pacific Island ethnicity’.

2Calculated in terms of specified cases only.

Source: Statistics New Zealand

Owned with a mortgage72,13835.620,30432.5
Owned without a mortgage30,13814.96,36310.2
Owned, mortgage not specified2,1571.06931.1
Rented or leased80,83839.828,56345.7
Provided rent free8,4214.22,3133.7
Not owned, rental status unspecified5,5143.02,8534.6
Not specified3,6811.81,4672.3
         Total202,893100.062,559100.0

Table 6.11. CATEGORY OF LANDLORD FOR RENTED OR LEASED PRIVATE DWELLINGS, 1996 CENSUS1

Category of landlordNew Zealand MaoriPacific Island
DwellingsPercentage2DwellingsPercentage2

1Private dwellings where there is at least one usually resident person (excluding absentees) of ‘New Zealand Maori ethnicity’ or ‘Pacific Island ethnicity’.

2Calculated in terms of specified cases only.

3Housing Corporation in 1991.

Source: Statistics New Zealand

Rented or leased from—
Private person/company48,52860.011,92841.8
Housing New Zealand321,65427.012,98745.5
Other central government agencies3,0273.76872.4
Local authority1,9172.47142.5
Landlord not specified5,7127.02,2477.9
            Total, rented or leased80,838100.028,563100.0

Tenure. Patterns of tenure and category of landlord shown in 1996 Census data reflect the household income and demographic structures of New Zealand Maori and Pacific Island ethnicities. Tables 6.10 and 6.11 show that Pacific Islanders tend to be more reliant on rented or leased housing than New Zealand Maori, who, in turn, are almost twice as reliant on rental housing as the general population (see table 6.5).

For New Zealand Maori dwellings 50.5 percent were owned with or without a mortgage compared with 42.7 percent of Pacific Island dwellings.

Household transport

At the 1996 Census of Population and Dwellings 1,073,721 households, or 88.0 percent of households, had the use of one or more motor vehicles for private transport. This was an increase of 64,635 over the number of private households (1,009,086) with use of vehicles at the 1991 Census.

The share of households with two or more increased from 40.9 percent to 45.1 percent during the intercensal period, while there was a related decline in the percentage of one-vehicle households and households without a vehicle.

Table 6.12. HOUSEHOLD TRANSPORT

Number of motor vehicles11991 Census1996 CensusIntercensal percentage change
HouseholdsPercentage of total2HouseholdsPercentage of total2

1Includes 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.

2Calculated on specified cases only.

Source: Statistics New Zealand

None143,23212.4146,75712.02.5
One538,22746.7522,33642.8-3.0
Two356,81431.0408,21333.414.4
Three or more114,0459.9143,17211.725.5
Not specified25,347...55,854...120.4
Total1,177,665100.01,276,332100.08.4

Household income and expenditure

The New Zealand Household Economic Survey is conducted continuously by Statistics New Zealand with the results presented applying to the year 1 April to 31 March. It provides information on the expenditure patterns and income levels of private households. Social and demographic characteristics are also collected to enable households to be analysed in more detail. Itemised expenditure statistics from the survey are used as the weighting base of the Consumers Price Index when it is revised every five years (see section 26.1: Consumer prices). The expenditure statistics are also used in non-revision years to check how up to date selected parts of the index's weighting base are.

In the 1996-97 year, 2,935 private households (comprising 7,956 people) participated in the survey, each household containing an average of 2.73 people. Questionnaires administered to each household include a household questionnaire, an income questionnaire and an expenditure questionnaire. Health questions were asked for the first time in the 1994-95 survey with each person responding to questions about their health and use of health services. In all cases information reported by household members is processed without adjustment for under-reporting of income and expenditure. Alternative data sources, both overseas and in New Zealand, indicate 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. Reasons for under-reporting of these items often include inaccurate recall of amounts spent and social desirability.

In the following tables the aggregate survey income or expenditure has been averaged over all households in the survey, rather than over only those households which reported income or expenditure in particular areas. This has the effect of reducing some statistics to a level below that which would normally be expected (e.g. expenditure on rent).

Table 6.13. INCOME DISTRIBUTION OF HOUSEHOLDS, 1996-971

Annual incomeApproximate equivalent weekly incomeNumber of householdsAverage weekly income per household

1As estimated by Household Economic Survey.

Source: Statistics New Zealand

$$(000)$
Under 13,100Under 251117.5154.10
13,100-18,499251 to 355119.2297.30
18,500-22,499355 to 432117.6392.60
22,500-27,799432 to 533118.5478.80
27,800-34,699533 to 666115.9601.50
34,700-43,399666 to 832117.8744.80
43,400-53,899832 to 1,034118.3925.80
53,900-68,1991,034 to 1,308117.81,166.40
68,200-87,9991,308 to 1,688118.31,484,00
88,000 or over1,688 or over117.62,588.50
                  Total...1,178.5883.10
                  Total for 1995-96...1,146.6887.60

Table 6.14. AVERAGE WEEKLY EXPENDITURE FOR SELECTED FAMILY TYPES, 1996-97

Expenditure groupYoung one-person householdOlder one-person householdYoung couple with no childrenOlder couple with no childrenCouple with one childCouple with two children
Source: Statistics New Zealand
 $
Food57.8045.50117.8095.90126.30155.80
Housing151.8098.20191.20101.3076.50237.30
Household operations62.3050.6097.7090.90106.70117.70
Apparel13.408.6033.3018.7024.2035.10
Transport108.1042.90142.00109.50160.70157.40
Other goods56.8027.60103.6069.3088.20112.30
Other services65.7053.00118.10105.20125.90153.60
         Total expenditure516.00326.50803.70590.70708.40969.10
Expenditure groupCouple with three or more childrenOne parent with childrenFamily with othersNon-family householdsAll family types
Food171.6087.10142.20114.30108.60
Housing212.30114.6025.50181.70134.40
Household operations113.7074.10117.2089.9090.90
Apparel43.6019.4033.5042.3024.90
Transport144.0081.20209.50136.40120.60
Other goods94.1050.00104.70108.2076.30
Other services146.4067.20129.10132.40107.10
         Total expenditure925.70493.50761.80805.20662.80

Table 6.15. AVERAGE WEEKLY HOUSEHOLD EXPENDITURE, 1996-97

Expenditure group and subgroupAverage weekly household expenditure1Percentage of total expenditure

1Averages have been rounded to the nearest 5 cents.

Source: Statistics New Zealand

 $percent
Food—
      Fruit7.501.1
      Vegetables8.401.3
      Meat11.301.7
      Poultry3.200.5
      Fish2.100.3
      Farm products, fats, oils12.801.9
      Cereals, cereal products14.802.2
      Sweet products, spreads, beverages12.801.9
      Other foodstuffs11.801.8
      Food consumed in eating places, takeaway foods24.003.6
            Total, food108.6016.4
Housing—
      Rent39.706.0
      Net capital outlay and related expenses-28.00-4.2
      Mortgage payments62.409.4
      Payments to local authorities14.902.2
      Property maintenance goods16.502.5
      Property maintenance services28.504.3
      Other housing expenses0.400.1
            Total, housing134.4020.3
Household operation—
      Domestic fuel and power22.503.4
      Home appliances17.302.6
      Household equipment and utensils3.100.5
      Furniture9.501.4
      Furnishings2.000.3
      Floor coverings2.400.4
      Household textiles4.500.7
      Household supplies6.701.0
      Household services22.903.5
            Total, household operation90.9013.7
Apparel—
      Men's clothing4.100.6
      Women's clothing8.001.2
      Children's clothing2.000.3
      Other clothing4.500.7
      Clothing supplies and services1.500.2
      Men's footwear1.100.2
      Women's footwear1.400.2
      Children's footwear0.700.1
      Other footwear1.500.2
      Footwear supplies and services0.20-
            Total, apparel24.903.8
Transportation—
      Public transport within New Zealand6.000.9
      Overseas travel23.803.6
      Road vehicles47.907.2
      Vehicle ownership expenses40.006.0
      Other private transport cots2.900.4
            Total, transportation120.6018.2
Other goods—
      Tobacco products7.901.2
      Alcohol15.202.3
      Medical goods4.700.7
      Toiletries and cosmetics4.800.7
      Personal goods6.501.0
      Pets, racehorses and livestock6.200.9
      Publications, stationery and office-type equipment13.202.0
      Leisure and recreational goods10.501.6
      Recreational vehicles3.700.6
      Other goods3.500.5
            Total, other goods76.3011.5
Other services—
      Health services14.902.3
      Personal services4.500.7
      Educational and tuition services11.301.7
      Accommodation services4.000.6
      Financial, insurance and legal services19.503.0
      Vocational services1.300.2
      Leisure services13.502.0
      Other services nec6.100.9
      Other outgoings11.901.8
      Contributions to savings20.303.1
            Total, other services107.1016.2
            Total, net expenditure662.80100.0
            Number of households surveyed2,935 

Table 6.16. HOUSEHOLD AMENITIES

Amenity in dwellingPercentage of all surveyed households1
1994-951995-961996-97

1Household Economic Survey.

Source: Statistics New Zealand

Electric range or wall oven93.995.095.7
Gas, coal or oil-fired range10.210.59.1
Microwave oven72.374.677.2
Telephone95.696.095.9
Cellular phones..13.218.0
Clothes-washing machine97.197.697.7
Clothes dryer62.263.665.6
Separate refrigerator29.330.429.1
Combination refrigerator/freezer79.079.079.7
Separate deep-freeze unit54.856.154.8
Dishwashing machine28.830.331.8
Colour television (owned)95.395.896.6
Television (hired or rented)2.72.11.4
No television (owned, hired or rented)2.93.32.7
Subscriber TV decoder9.213.715.6
Video recorder (owned)74.677.979.8
Video recorder (hired or rented)0.40.20.4
Home computer (mains operated, with keyboard)21.724.827.6
Portable electric heater78.579.676.0
Electric night store heater fixed in place9.710.510.0
Other electric heater fixed in place30.430.030.1
Portable gas heater20.124.128.4
Gas heater fixed in place10.710.811.7
Open fire25.124.022.9
Slow-combustion fire34.233.934.7
Portable kerosene heater2.22.21.8
Wet-back fire of any kind18.819.518.7
Central heating of any kind5.14.85.0

International comparisons of living standards

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.

Jaqueline and Dean Cameron with their daughter Ashleigh after their marriage at a Christchurch movie theatre, promoting a film premiere, July 1997.

6.2 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.

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. 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.

Table 6.18. MARRIAGE RATES

December yearNumber of marriagesMarriage rate
Crude1General1

1Per 1,000 mean population.

2Per 1,000 mean not-married population aged 16 years and over.

Source: Statistics New Zealand

198823,4857.0123.34
198922,7336.8822.12
199023,3416.9922.12
199123,0656.7821.23
199222,0186.4419.78
199322,0566.3319.33
199421,8796.2218.66
199521,5796.0317.7
199621,5065.917.1

Marital status of the population

Table 6.19 shows the usually resident New Zealand male and female populations by marital status and age group at the 1996 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.

Table 6.19. MARITAL STATUS BY AGE GROUP, 1996 CENSUS 1

 Never marriedFirst marriage2RemarriedMarried (not separated)Separated3DivorcedWidowedNot specifiedTotal

1Usually resident New Zealand population.

2First marriage.

3Includes persons who are still married but permanently separated.

Source: Statistics New Zealand

Males
15-19.123,3841836573330189,858133,575
20-24.114,4506,957423426151833012,222134,832
25-34.131,043101,1003,7683,3218,0617,01421620,376274,905
35-44.43,410145,92319,3565,34014,05819,43187616,335264,732
45-54.15,633122,03124,9965,36710,61120,2742,18412,501213,600
55-64.8,40387,64516,2244,0024,95611,4154,4409,117146,205
65-74.6,72669,42911,2683,3302,3016,0339,4988,355116,946
75+3,39030,6725,9191,8907021,75214,7606,09065,169
Total.446,439563,94081,58223,64941,33766,13232,02294,8601,349,964
Females
15-19.120,3156819607218158,235129,405
20-24.107,69715,693995611,6444266610,737136,926
25-34.106,902128,7847,3893,83414,28911,73981618,126291,882
35-44.33,150151,10722,4135,55018,21326,9223,03915,123275,520
45-54.10,938120,32122,5064,92911,03425,3237,89911,361214,308
55-64.5,86583,12712,5013,5644,20912,78617,4638,145147,666
65-74.5,82656,9168,0702,8381,7286,66038,7458,907129,690
75+7,05020,3583,6661,4285192,60464,90810,329110,862
Total.397,746576,99076,65622,76751,71186,478132,95190,9661,436,259
Total.844,1851,140,927158,23846,41693,048152,610164,973185,8262,786,220

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 1991-96 intercensal period is shown in table 6.20, 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 1991 and 1996 censuses. There was a considerable increase in the percentages of both males and females ‘never married’ between the 1991 and 1996 Censuses. In contrast, the corresponding percentages for the ‘married’ group showed a compensating decline. Also evident is a percentage increase in the number of people recorded as divorced during the period, while there are significant decreases in those separated and widowed.

MARRIAGE
Annual rates per 1,000 mean population

Table 6.21 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. In 1996, this included people living in a same-sex relationship

Table 6.20. DISTRIBUTION OF PEOPLE AGED 15 YEARS AND OVER BY LEGAL MARITAL STATUS

Marital status1991 Census1996 CensusIntercensal increase or decrease
NumberPercentageNumberPercentageNumberPercentage

1Married for 1996 includes first marriage and married not further defined.

2Includes people who are still married but are permanently separated

Source: Statistics New Zealand

Males
Never married433,81834.4446,43933.112,6212.9
Marriage1591,14146.8587,58943.5-3,552-0.6
Remarried79,3746.381,5826.02,2082.8
Separated250,0554.041,3373.1-8,718-17.4
Divorced54,0094.366,1324.912,12322.4
Widowed34,6412.832,0222.6-2,619-7.6
Not specified18,9601.594,8607.075,900400.3
            Total1,262,085100.01,349,964100.087,8797.0
Females
Never married368,88027.8397,74627.728,8667.8
Marriage1596,06744.9599,75741.83,6900.6
Remarried74,4065.676,6565.32,2503.0
Separated259,1874.551,7113.6-7,476-12.6
Divorced71,0015.386,4786.015,47721.8
Widowed140,97610.6132,9519.3-8,025-5.7
Not specified17,6791.390,9666.373,287414.5
            Total1,328,196100.01,436,259100.0108,0638.1

Table 6.21. DE FACTO RELATIONSHIPS1

Age group (years)1986 Census11991 Census1Intercensal increase or decrease
NumberPercentageNumberPercentageNumberPercentage

1Usually resident New Zealand population.

Source: Statistics New Zealand

Males
15-19 years2,5623.23,0332.647118.4
20-24 years16,26020.019,89016.93,63022.3
25-3432,73940.446,92640.014,18743.3
35-4416,95920.925,56321.88,60450.7
45-548,0619.914,24712.16,18676.7
55-643,2674.05,3044.52,03762.4
65-749991.21,9411.794294.3
75+2670.34950.422885.4
            Total81,111100.0117,396100.036,28544.7
Females
15-19 years6,8618.56,9395.8781.1
20-24 years21,50726.626,87122.65,36424.9
25-3429,51736.645,16838.015,65153.0
35-4414,37917.823,29519.68,91662.0
45-546,0547.512,11710.26,063100.1
55-641,6682.13,2072.71,53992.3
65-745850.71,0470.946279.0
75+1800.23570.317798.3
            Total80,745100.0119,004100.038,25947.4

At the 1996 Census 236,397 people were living in de facto relationships, an increase of 74,541, or 46.1 percent since 1991. Of the people in this category, 78.7 percent of males and 80.1 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.

Age at marriage

In 1996, 43,012 people married (21,506 marriages), indicating a continuing decrease.

The average ages of those marrying rose to 33.5 years and 30.7 years for men and women respectively in 1996. This rise is a continuation of the upward trend in average age at marriage evident since the early 1970s, as shown in table 6.23. The increase in the average age at marriage is largely a reflection of a trend towards delayed marriage, increasing numbers of people remaining single, cohabitation before marriage and the growing number of people living in de facto unions.

Table 6.22. AGES OF PEOPLE MARRIED IN 1996

Age of bridegroom, in yearsAge of bride, in yearsTotal bride-grooms
Under 2020-2425-2930-3435-3940-4445 and over
Source: Statistics New Zealand
Under 2093561031-1164
20-243712,37961210026353,496
25-291452,3443,10771516641126,530
30-34366261,8531,42040578354,453
35-3911176657880589174922,579
40-444511923394032721631,424
45 and over539992643814701,6022,860
      Total brides6655,6716,5303,7211,9711,0381,91021,506

The rise in the average age at marriage for both men and women has been mainly driven by the rise in age at first marriage. The average age for people marrying for the first time in 1996 was 29.2 years for men and 27.1 years for women—the highest since the mid-1920s for men and since figures have been collected for women. In general women are still marrying men older than themselves, but the gap between their average age at first marriage has narrowed; it was about three years in the mid-1960s and two years in 1996.

Table 6.23. AVERAGE AGE OF PEOPLE MARRYING

YearBridegroomsBrides
BachelorsDivorcedWidowersTotalSpinstersDivorcedWidowsTotal
Source: Statistics New Zealand
197624.839.157.928.022.235.451.425.0
198125.439.758.229.223.035.951.926.3
198626.640.759.330.824.337.052.427.9
199127.941.859.931.925.737.952.729.1
199228.042.260.532.226.038.253.429.5
199328.342.459.132.526.238.953.229.7
199428.643.060.032.826.539.153.830.0
199528.959.743.133.226.953.939.430.5
199629.260.043.533.527.153.539.530.7

MEDIAN AGE* AT FIRST MARRIAGE

Relationship counselling

Relationship Services: Whakawhanaungatanga has 28 offices and 70 service centres throughout New Zealand. Relationship Services aims to enable people to develop the understanding and skills necessary to enjoy and maintain quality relationships, establish relationships free of any form of violence, find their own answers to relationship problems and adjust to change in their lives.

Relationship Services provides:

  • Counselling for individuals and couples experiencing relationship difficulties.

  • Domestic violence prevention programmes for individuals and groups.

  • Conciliation to help separating and divorcing couples make decisions about their future.

  • Mediation to resolve disputes in families and workplaces.

  • Education courses for individuals and couples to develop skills on a wide range of relationship issues; including parenting, entering into or seeking to enrich relationships, resolving difficulties or leaving relationships.

  • Workplace consultancy, providing a range of counselling, training and consultancy services to organisations and their employees.

The counselling and education work of Relationship Services is funded largely through a fee-for-service contract with the Community Funding Agency. Counselling and domestic violence programme referrals come from the Family Court, other professionals, social service agencies and employers. Many individuals and couples also self-refer.

In the year ending 30 June 1997, Relationship Services provided approximately 50,000 counselling hours. Of these, about 27,000 were provided to self-referred clients.

Te Korowai Aroha Aotearoa. Established in 1990, Te Korowai Aroha Aotearoa is a professional Maori organisation providing education and training to hapu and iwi agencies, and other Maori organisations. Agencies may then offer appropriate training and counselling to whanau, hapu and iwi.

The aim of Te Korowai Aroha is ‘to guide our people toward becoming self-reliant, critical thinking members of society’. It is founded on the values of:

  • Te Korowai Aroha—nurturing and strengthening the mana wairua of whanau, hapu and iwi.

  • Whakapakari—growth, development, maturity of thought achieved through whakamana, whakatinana, whakakaha and manaaki.

  • Kia Puawai—blossoming and flourishing.

  • Toitu—standing tall.

Te Korowai Aroha Aotearoa has 12 iwi agencies throughout the North Island. Iwi agencies may be referred to Te Korowai Aroha by the Department of Social Welfare, Family Court and other agencies; the agencies are thereafter monitored and reviewed by Te Korowai Aroha. Of all clients, 71 percent are self-referrals. Te Korowai Aroha Aotearoa is funded largely through the New Zealand Community Funding Agency.

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.

Table 6.24. DISSOLUTION ORDERS GRANTED

Ground or evidence presented199119921993199419951996
Source: Statistics New Zealand
Applications filed for dissolution of marriage9,1529,1149,1939,2139,57410,009
Evidence of irreconcilable breakdown—
      Separation order447360322352339459
      Written separation order3,7113,7873,6503,6093,2973,421
      Verbal separation order3,5753,5193,8373,8614,3174,979
      Lived apart, no agreement or order1,4151,4481,3841,3911,6211,148
            Total, irreconcilable breakdown9,1529,1149,1939,2139,57410,007
Other dissolution orders-----2
            Total, dissolution orders9,1529,1149,1939,2139,57410,009

Table 6.25. DURATION OF MARRIAGES ENDING IN DISSOLUTION BY AGES OF HUSBANDS AND WIVES AT MARRIAGE, 1996

Duration of marriage (in years)1Age (in years) at marriageTotal
Under 2020-2425-2930-3435-3940-4445 and over (including not stated)

1Duration of marriage calculated from both month and year of dissolution.

Source: Statistics New Zealand

Husbands (all petitions and applications)
Under 52537434422299561171,237
5-9558068693752041331822,624
10-1452812532261127911021,977
15-191026533361337241311,368
20 and over2601,6576081616125312,803
            Total4944,3022,6891,15256334646310,009
Wives (all petitions and applications)
Under 5975023121367054661,237
5-92411,18563427212477912,624
10-1428493837418410247481,977
15-19352651215773818171,368
20 and over1,0121,41825956279222,803
            Total1,9864,6941,79472536120524410,009

MARRIAGE AND DIVORCE
Year ended 31 December Statistics New Zealand

Other important family legislation

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 Violence Act 1995. This came into force in 1996 and replaces the Domestic Protection Act 1982. It aims to provide greater protection for victims of domestic violence. It combines non-molestation and non-violence orders into one protection order that can last indefinitely, and is available to a wider range of people in closer relationships than the previous legislation. The act also places particular emphasis on the provision of programmes for both victims and perpetrators of domestic violence.

Guardianship Act 1968. This act defines the authority of parents as guardians of their children, and the powers of the court in relation to guardianship and custody of, and access to, children.

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 7.2, Income support.

The Child Support Act 1992 introduced a new regime for assessing non-custodial parental support of children. It replaced the Liable Parent Contribution Scheme which was contained in the Social Security Act 1964 and administered by the Department of Social Welfare.

Inland Revenue Child Support 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.

6.3 Human rights, immigration and citizenship

Human Rights Commission: Komihana Tikanga Tangata

The Human Rights Commission is an independent statutory body. Under the Human Rights Act 1993 the commission is given a wide range of functions and powers, the primary one of which is to protect human rights in New Zealand in accordance with United Nations human rights covenants and conventions.

An important function of the commission is the investigation and conciliation of complaints of unlawful discrimination in public life, which includes the areas of employment, access to public places, vehicles and facilities, provision of goods and services, accommodation and education. The grounds of unlawful discrimination under the act are sex, marital status, religious belief, ethical belief, colour, race, ethnic or national origins, disability, age, political opinion, employment status, family status and sexual orientation. The act also covers sexual harassment, racial harassment and racial disharmony. If complaints are not resolved within the private and non-adversarial investigation and conciliation process they can be taken on to the Complaints Review Tribunal.

Other functions of the commission include promoting human rights in New Zealand by education, research and publicity, issuing public statements on human rights matters, making submissions on human rights aspects of any legislation before Parliament and issuing guidelines to assist compliance with the act. The commission has published guidelines on advertising, pre-employment practices, superannuation and insurance with further guidelines for credit institutions currently being developed. The commission also has an educational function with the focus on providing public and private sector educators with human rights training. The commission is also undertaking a collaborative research project with the New Zealand Defence Force into discrimination and harassment.

The commission seeks to supply effective and culturally appropriate services to Maori. The commission provides translation services and iwi education.

Sections 5(1)(i), (j) and (k) of the act require the commission to report to the government, by 31 December 1998, regarding legislation, policy and administrative practice which is inconsistent with the act. The commission, in close consultation with government officials, worked on this exercise which has been entitled Consistency 2000.

The commission has three offices in Auckland, Wellington and Christchurch. Auckland is the head office as the majority of the complaints of unlawful discrimination the commission receives arise within the greater Auckland area. The office in Wellington is the base for the Consistency 2000 project while the Christchurch office serves as the centre for the commission's activities in the South Island. The Internet address is: www.hrc.co.nz

Human Rights Commissioners, of whom there are currently six, are appointed by the Governor-General on the recommendation of the Minister of Justice for terms of up to five years. Under the act, commissioners are appointed with regard not only to their personal attributes but also to their knowledge or experience of matters likely to come before the commission. The Race Relations Conciliator and the Privacy Commissioner also serve as Human Rights Commissioners. One Commissioner, the Proceedings Commissioner, has special functions and responsibilities under the Human Rights Act for the institution and conduct of legal proceedings under the act.

Enquiries—10,342 were received in the year ended 30 June 1997, compared with 9,622 in 1995. The largest number concerned workplace disputes (880), sexual harassment (858), disability (785) and age (695).

Complaints—235 formal complaints were opened in the year ended 30 June 1997, compared with 241 in 1995. The greatest number of complaints were sexual harassment in the area of employment (70), sex discrimination in employment (33), disability discrimination in the provision of goods and services (28) and age discrimination in employment (28).

The commission received a government grant of $4.24 million for the 1996-97 year, the same as the previous year.

Office of the Race Relations Conciliator: Te Tari Whakawhanaunga-a-iwi

The office of Race Relations Conciliator is established by the Human Rights Act 1993. The act lays down a list of prohibited grounds of discrimination which include colour, race, ethnic or national origin (which includes nationality or citizenship).

The Race Relations Conciliator has responsibility for conciliating in complaints of racial discrimination, racial harassment and excitement of racial disharmony, along with the promotion of positive race relations in New Zealand.

The Human Rights Act gives the conciliator (who is, ex officio, a Human Rights Commissioner) a broad range of responsibilities. These include education and publicity to promote a positive climate in race relations and making public statements in relation to any matter affecting race relations. The conciliator also has to promote an understanding of, and compliance with, the Human Rights Act.

The conciliator also receives representations from members of the public on any matter affecting race relations, and consults and co-operates with other people and bodies concerned with the protection of race relations.

The act entitles the conciliator to inquire generally into any matter, including any enactment or law, or any practice, or any procedure, whether governmental or non-governmental if it appears to the conciliator that race relations are, or may be, infringed.

The conciliator is also empowered to report to the Prime Minister from time to time on any matter affecting race relations, including the desirability of legislative, administrative, or other action to give better protection to race relations. This includes advice on the desirability of New Zealand becoming bound by any international instrument on race relations and the implications of any proposed legislation or policy of the government that the conciliator considers may affect race relations.

The conciliator has to examine all acts and regulations that are in force in New Zealand, and any policy or administrative practice of the government, determine whether any of these are in conflict with the race provisions of the act or infringe on the spirit or intention of the act and report the results to the Minister of Justice before 31 December 1998.

When the conciliator receives a complaint of racial discrimination, racial harassment or exciting racial disharmony, the complaint is investigated to establish what happened. If there appears to be a breach of the act all attempts are made to conciliate between the complainant and respondent and reach a settlement agreed to by both parties. If that is not possible the Complaints Division, which includes the conciliator and is established by the Human Rights Act, considers the case. The division can attempt further conciliation or recommend outcomes such as compensation, an apology or an agreement not to repeat the action complained of. If necessary, the complaint can be referred on to the Complaints Review Tribunal which has the ability to have the Complaints Division judgement enforced. The complainant or respondent can also apply to the tribunal for any decision to be reviewed.

Details about complaints to the office, and about its education work, are given separately.

Equal Employment Opportunities (EEO)

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 267 members as at December 1997. The trust aims to promote to New Zealand employers the implementation of EEO principles and best practice in the workplace as a means of improving their effectiveness, efficiency and competitiveness through the successful management of diversity.

The trust commissions, monitors and promotes projects on EEO in New Zealand. It is based in Auckland. The board of trustees has both public and private sector representatives. The EEO trust liaises closely with private and public sector organisations with an interest in EEO, individuals and groups who express interest, EEO-designated target groups, employers' associations, and complementary organisations in New Zealand and overseas.

The trust has an EEO Referral Database with over 2,500 listings of EEO resources such as books, booklets, videos, pamphlets and posters. It also contains over 200 relevant consultants, trainers and training programmes. Clients request information from this database. The trust also has a thrice-yearly newsletter with practical information for employers.

In 1997 the trust launched the EEO Employers Group to catalyse increased EEO activity in New Zealand. The group helps employers interested and committed to EEO by providing them with information, support and profile. Members of the group commit to its charter which includes taking part in the EEO Trust annual survey.

In 1997 the EEO Trust also launched the annual EEO Trust Index, a stocktake of both the context in which New Zealand organisations operate and the current level of EEO activity. The index, which can be bought from the trust, offers insights into the emerging issues in diversity that will have an impact on New Zealand organisations in the future.

The trust's Work and Family Network at December 1997 had more than 130 members who pay an annual fee of $100 and receive a twice-yearly mini-magazine, invitations to an annual hui, networking opportunities and access to the EEO Trust's database listing initiatives that the network members have done in their organisations. The Internet address is: www.eeotrust.org.nz

Women's issues

Women comprise 51 percent of New Zealand's population. While men and women have equal status under the law, women have yet to achieve full equality with men in terms of economic and social status, freedom from discrimination and access to decision-making processes.

The role of the Ministry of Women's Affairs is to provide policy advice to the government on issues which affect women. The ministry's policy work addresses areas where there is significant disparity between women and men which disadvantages women, and where there is significant disparity between Maori women and non-Maori women which disadvantages Maori women. The ministry has two policy units, one of which, Te Ohu Whakatupu, is responsible for advice relating to Maori women.

The ministry promotes the use of gender analysis across the public and private sectors and works on increasing understanding of women's issues. The ministry's publication The Full Picture: Te Tirohanga Whanui sets out guidelines on how to carry out gender analysis to promote equity in policies and service. Its Internet address is: www.mwa.govt.nz

The main focus of the ministry's work for 1997 was on women's safety and well-being, improving women's participation in decision making, and women's economic autonomy.

25th Anniversary of the Equal Pay Act 1972. 1997 was the 25th anniversary of the act which provided for the removal and prevention of discrimination in rates of pay between female and male employees. However, barriers to women's full and equitable participation in the workforce still exist. In 1997, women continued to earn 80.5 percent of men's average ordinary-time hourly earnings, had more time out of the paid workforce because of family commitments, and were more likely to be in part-time, temporary or casual employment. The gender pay gap is still one of the biggest issues facing women workers and a major focus of the ministry's ongoing work.

Time Use Survey. In September 1997 an agreement was signed between the ministry and Statistics New Zealand to carry out a full diary-based Time Use Survey. The interviewing phase will begin in July 1998, with a first report available by the end of 1999. Information from the Time Use Survey will be used to improve public policy-making and programme development in the health, employment and welfare sectors and for population-based policy advice, for example, on women, Maori and youth.

Childcare Survey. The ministry worked closely with the National Advisory Council on the Employment of Women (NACEW) to develop a proposal for a survey on childcare use and demand by parents and caregivers of children aged 1-14 years. The survey will also seek information about how childcare responsibilities have affected workforce training and voluntary work participation. The survey will be carried out in 1998 as a supplement to the quarterly Household Labour Force Survey.

Youth issues

The Ministry of Youth Affairs aims to facilitate direct participation of young people in New Zealand life, and promote opportunities for young people to contribute to the cultural, social and economic policies and services affecting New Zealand's development. The ministry provides policy advice on young people and their future; and communicates and facilitates with young people and those who work with them. It supports 26 Youth Councils, and administers grants for youth training and development through the operation of the Conservation Corps and the Youth Service Corps (see section 14.3: Training and employment assistance).

The Children and Young Persons Service of the Department of Social Welfare works with families to protect children, manage young offenders, and ensure care and security for children in need. It includes the Youth Justice Service (see section 7.2: Social services).

The Commissioner for Children advocates for children and monitors law and policy on their behalf (see separate article).

The first dictionary of New Zealand Sign Language (NZSL) was published in November 1997. Each of the 4,000 entries in the NZSL-English dictionary is illustrated, and has information on how to make the sign, the semantic scope of the sign, and the words or phrases that can be used to translate it. There is a complete English language index.

There are hundreds of particularly New Zealand words in the dictionary, such as All Black, Milo, Weetbix, pakeha, Maori and marae. Though related to British and Australian sign languages, NZSL is a living language that reflects Maori concepts for which there are no exact English equivalents. A disproportionate number of New Zealand's deaf are Maori because the generally lower socio-economic status of the Maori population means that Maori babies are more susceptible to childhood diseases causing deafness, said Professor Graeme Kennedy, the dictionary's general editor.

The dictionary took a research team seven years to compile and was jointly sponsored by the Deaf Association of New Zealand and Victoria University of Wellington. It serves the community of about 10,000 people who have had a significant hearing loss since birth or early childhood, and their family and friends. In the 1996 Census, over 26,000 people said they use NZSL. There was an article about NZSL in the 1997 Yearbook.

A dictionary of New Zealand Sign Language. Published by Auckland University Press with Bridget Williams Books, November 1997.

Religious affiliation

The 1996 Census of Population and Dwellings showed a continued decline in the number of people identifying with the major Christian denominations, and continuing growth in the major non-Christian religions and in the number of people with no religious affiliation. The four major Christian denominations of Anglican, Catholic, Presbyterian and Methodist all experienced declining numbers between 1991 and 1996, with the proportion of the population in these categories falling from 57.6 percent to 49.1 percent. Anglicans, however, remained by far the largest religious denomination, accounting for 18 percent of the population in 1996.

Pentecostals were the only major Christian group to experience significant growth between 1991 and 1996, with their numbers increasing by 55 percent. Amongst non-Christian religions, the numbers of Buddhists and Muslims more than doubled while the number of Hindus increased by almost half between 1991 and 1996, although each of these groups still make up less than 1 percent of the population.

The number of people who indicated that they had no religious affiliation also increased markedly between 1991 and 1996, rising by 33 percent to make up over a quarter of the population in 1996.

Table 6.26. RELIGIOUS AFFILIATIONS1

Religious affiliation1991 Census1996 CensusIntercensal percentage change
NumberPercentage of responsesNumberPercentage of responses

1Usually resident New Zealand population.

Source: Statistics New Zealand

Anglican732,04822.1631,76418.4-13.7
Catholic498,61215.0473,11213.8-5.1
Presbyterian541,05016.3458,28913.4-15.3
Methodist139,4944.2121,6503.5-12.8
Baptist70,1552.153,6131.6-23.6
Latter Day Saints/Mormon48,0091.441,1661.2-14.3
Pentecostal25,3680.839,2281.154.6
Ratana47,5921.436,4501.1-23.4
Buddhist12,7650.428,1310.8120.4
Hindu17,6610.525,2930.743.2
Brethren20,3370.619,9500.6-1.9
Jehovah's Witness19,1820.619,5240.61.8
Assemblies of God17,2260.517,5200.51.7
Salvation Army19,9920.614,6250.4-26.8
Islam/Moslem6,0960.213,5480.4122.2
Seventh Day Adventist13,0050.412,3240.4-5.2
Other specified164,6795.0273,7358.066.2
Other response including no religion672,65420.3893,91026.132.9
Object to state251,7097.6256,5937.51.9
Not specified56,286 187,881 233.8
Total3,373,929100.03,618,303100.07.2

Ethnicity

The Census of Population and Dwellings in 1996 asked people to specify which ethnic group(s) they belong to and allowed them to specify as many as they wished. Table 6.27 shows two different ways of classifying this data, firstly using a priority recording system which allocates people to one group only; and secondly recording the total number of responses for particular ethnic groups—in which case people may be counted in more than one group.

Buddhists put the finishing touches to a “stupa" at a retreat centre near Thames.

The prioritised data shows that three-quarters of New Zealand's population belongs to the European ethnic group only. This group not only declined as a proportion of the population between 1991 and 1996 but also fell in numbers. Over the same period the other major ethnic groups increased in size and as proportions of the population. In 1996 the New Zealand Maori population made up 15 percent of the population, with Pacific Islands people and Asian people each making up 5 percent. The highest rate of growth between 1991 and 1996 was amongst the Asian population which grew by 71 percent, primarily under the impetus of increased immigration.

Walsh School of Irish Dancing students bounce out a reel at Cox's Creek Reserve, Herne Bay, after the St Patrick's Day parade on Queen St, Auckland, March 1997.

Changes in the total responses for each ethnic group between 1991 and 1996 were influenced by a change in the wording of the census question which had the effect of emphasising that people may specify more than one ethnicity and also for Europeans to specify particular European groups such as British or Dutch. Hence, there were marked increases in the number of people identifying with most of the major ethnic groups, with New Zealand European being the only group to fall in size between 1991 and 1996. High growth rates among some Asian and Pacific Islands groups have also been influenced by immigration and/or relatively high birth rates due to a concentration of people in the reproductive age groups.

Table 6.27. ETHNIC GROUP OF POPULATION1

Ethnic group1991 Census1996 CensusIntercensal Percentage change
NumberPercentage of responsesNumberPercentage of responses

1Usually resident New Zealand population.

2European" includes those who specified a European group as their sole ethnic group; “NZ Maori" includes all those who specified NZ Maori either alone or in combination with other groups; “Pacific Island" includes all people who specified a Pacific Islands ethnic group except those who also specified NZ Maori; “Asian" includes all those who specified an Asian ethnic group except those who also specified NZ Maori or a Pacific Islands ethnic group; “Other" includes all those who specified another ethnic group except those who also specified NZ Maori or a Pacific Islands or Asian ethnic group.

Source: Statistics New Zealand

European only2,657,61979.42,594,68874.8-2.4
New Zealand Maori434,84713.0523,37115.120.4
Pacific Island152,9374.6173,1815.013.2
Asian94,0652.8160,6804.670.8
Other6,3480.214,6670.4131.0
Not specified28,113 151,716 439.7
            Total3,373,929100.03,618,303100.07.2
Total responses (selected groups)
New Zealand European2,618,44577.62,496,55269.0-4.7
British and Irish93,9122.8407,13311.3333.5
Dutch24,7320.747,5711.392.3
South Slav (Yugoslav)2,8680.19,0060.2214.0
Italian1,539-4,9140.1219.3
New Zealand Maori434,84712.9523,37414.520.4
Samoan85,7432.5101,7572.818.7
Cook Island Maori37,8571.147,0191.324.2
Tongan23,1720.731,3890.935.5
Niuean14,4240.418,4770.528.1
Tokelauan4,1460.14,9170.118.6
Fijian5,1000.27,6950.250.9
Filipino4,9170.18,1900.266.6
Cambodian4,3170.14,4070.12.1
Chinese44,7931.381,3092.281.5
Indian30,6090.942,4081.238.5
Sri Lankan2,6280.14,7130.179.3
Japanese2,9700.17,4610.2151.2

Table 6.28 shows the age structure of the major ethnic groups in 1996. The Maori, Pacific Islands and Asian populations had a younger age profile than the European population, reflecting higher fertility in the case of Maori and Pacific Islands people and recent patterns of immigration in the case of Asian people. The Maori and Pacific Islands ethnic groups had the highest proportions of children, while the Asian ethnic group had the highest proportion of working age people and Europeans the greatest proportion of people in the retirement age groups of 65 and over.

Table 6.28. COMPARISON OF AGE STRUCTURE OF MAJOR ETHNIC GROUPS, 1996 CENSUS1

Age group (years)Percentage of population in age group
European2New Zealand MaoriPacific IslandAsianOther

1Usually resident New Zealand population.

2European" includes those who specified a European group as their sole ethnic group; “NZ Maori" includes all those who specified NZ Maori either alone or in combination with other groups; “Pacific Island" includes all people who specified a Pacific Islands ethnic group except those who also specified NZ Maori; “Asian" includes all those who specified an Asian ethnic group except those who also specified NZ Maori or a Pacific Islands ethnic group; “Other" includes all those who specified another ethnic group except those who also specified NZ Maori or a Pacific Islands or Asian ethnic group.

Source: Statistics New Zealand

0-46.413.713.28.19.2
5-1412.923.821.917.119.5
15-2413.218.918.820.916.1
25-3415.116.317.818.521.9
35-4415.412.312.718.217.9
45-5413.27.37.89.79.1
55-649.44.64.54.33.4
65-748.32.22.32.22.1
75-844.80.70.80.80.7
85 and over1.40.10.10.20.2
Total100.0100.0100.0100.0100.0

Country of birth

People who were born in New Zealand made up 82.5 percent of New Zealand's resident population in 1996, a slight decrease from 1991. Between 1991 and 1996 New Zealand's overseas-born population increased by almost 78,000 people, with 72 percent of that number having been born in Asia.

People born in the United Kingdom and Ireland remain New Zealand's largest immigrant group, making up 6.7 percent of the total population in 1996, although their numbers fell between 1991 and 1996. People born in the Pacific Islands made up 2.9 percent of New Zealand's population in both 1991 and 1996, while the proportion born in Asia increased from 1.9 percent to 3.4 percent over this period. Apart from the United Kingdom, the only individual countries to provide more than 1 percent of New Zealand's population in 1996 were Australia (1.6 percent) and Western Samoa (1.2 percent).

There were marked increases between 1991 and 1996 in the number of New Zealand residents born in Northeast Asian countries such as China, Hong Kong, Taiwan and South Korea, which together accounted for an increase of almost 37,000 people. The number of New Zealand residents born in the Middle East and North Africa more than doubled over the same period as did the number born in South Africa.

Table 6.29. COUNTRY OF BIRTH OF POPULATION1

Country of birth1991 Census1996 CensusPercentage intercensal change
NumberPercentage of responsesNumberPercentage of responses

1Usually resident New Zealand population.

Source: Statistics New Zealand

New Zealand2,812,03584.22,848,20982.51.3
Australia48,6361.554,5701.612.2
Western Samoa43,0261.342,1771.2-2.0
Fiji16,7130.518,7740.512.3
Tonga13,0680.414,0400.47.4
Cook Islands15,4110.513,7580.4-10.7
Other Oceania and Antarctica9,9270.310,6680.37.5
United Kingdom and Ireland239,1577.2230,0526.7-3.8
Netherlands24,2760.723,4300.7-3.5
Germany5,3940.27,0680.231.0
Other Europe18,5580.625,3740.736.7
Middle East and North Africa3,1860.17,2450.2127.4
Malaysia8,8200.311,8890.334.8
China9,2250.319,5180.6111.6
South Korea801-12,1830.41,421.0
Hong Kong4,9290.111,7600.3138.6
Taiwan3,4110.110,9320.3220.5
India9,4560.312,8070.435.4
Other Asia25,4730.838,7061.151.9
Northern America15,3060.519,2300.625.6
Southern and Central America2,7870.13,3990.122.0
South Africa5,6550.211,3340.3100.4
Other Africa4,1010.16,1050.248.9
Not specified/born at sea34,572 165,078 377.5
            Total3,373,923100.03,618,306100.07.2

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: 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.

Children born overseas after 1 January 1978 to a parent who is a New Zealand citizen otherwise than by descent, are automatically New Zealand citizens by descent. In order to preserve this status they must be registered as citizens by descent before their 22nd birthday. This can be done in New Zealand through the Citizenship Office, or at an overseas post.

The general requirements for a grant of citizenship are that an applicant must:

  • Have been ordinarily resident 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 indefinitely.

  • 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 be ordinarily resident 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.

Of the 17,906 people who became New Zealand citizens in 1997, 2,995 were children from a diverse range of ethnic groups.

BIRTHPLACES
Country of birth of population

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:

  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 indefinitely in terms of the Immigration Act 1987.

Persons aged 14 years and over who are approved for the grant of citizenship by the Minister of Internal Affairs, are required to swear allegiance to Queen Elizabeth II, as Head of State, at a private or public ceremony to make the grant effective.

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, e.g., when required to by countries such as Germany, which do not 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.

There were 17,906 grants of citizenship for the year ended 30 June 1997.

The 50th anniversary of New Zealand citizenship will be commemorated on 6 September 1998.

Immigration

People who wish to emigrate to New Zealand are usually considered by the New Zealand Immigration Service under one of four main categories of government residence policy: General Skills (often called the “points system"), Business Investor. Family and Humanitarian. The General Skills and Business Investor categories were introduced in 1995, replacing the previous General and Business Investment categories which had been open since 1991, and which had replaced the Occupational Priority List or OPL system under which it was possible to migrate to New Zealand providing there was a job offer which no suitably skilled New Zealanders could fill.

The 1995 changes adjusted some of the requirements for skilled migrants in order to encourage a broader mix of skills and attract people with a genuine commitment to New Zealand. The changes also included a new system for managing the number of residence applications. Under the old General category, applicants who met the required number of points, as well as character and health requirements which all migrants must normally meet, automatically gained residence—regardless of the number of applicants. This “autopass" system was replaced by a “pass mark" system under which the number of points General Skills and Business Investor migrants need is calculated weekly in order to meet the Government's target for residence approvals. The target for the year ending 30 June 1998 is 35,000.

CITIZENSHIP
Number of applications granted

The number of people approved in the 1996-97 year was 33,836, which was in line with the Government's target for that year of 35,000 plus or minus 10 percent. In the 1995-96 year the total was 54,453; in 1994-95 the total was 50,752 and in 1993-94 it was 33,514.

A new sub-target for business investor migration was announced in December 1997. A sub-target of 500 business investor migrants was set while further options to address low levels of business investor migrants are investigated.

As well as the four main residence categories, up to 1,100 Western Samoan citizens may be granted residence in New Zealand each year under a quota system for those with a job offer in New Zealand. There is also a special quota for up to 750 people each year to be granted residence under the Refugee Quota Programme. Refugees resettled in New Zealand under this programme are nominated by the United Nations High Commissioner for Refugees.

The four main categories are:

General Skills—The General Skills category is also known as the “points system" because a minimum number of points is needed to gain residence. The number of points required cannot fall below 25, and was 25 at the time of going to print. Minimum requirements include a three-year base qualification, two years' relevant work experience, age 18 to 55, and English language skills. The General Skills category replaced the similar General Category and General Investment sub-category in 1995. The changes included extending English language skill requirements to non-principal applicants aged 16 years and over, and the introduction of a new English language test (the International English Language Testing System—or IELTS—level 5 of the general module); registration requirements for about 25 occupations where registration with the statutory authority governing professional standards is legally required in New Zealand—for example, doctors must be registered by the New Zealand Medical Council to practise; and more weight placed on a job offer in New Zealand.

Family—Under the Family category people who have a relationship with a New Zealand citizen or resident, such as being married or in a de facto or same-sex relationship may qualify for residence. Marriage does not guarantee residence—like the other partnership sub-categories, the relationship must be genuine and stable. The category also enables New Zealand citizens and residents to be joined in New Zealand by their parents, children and adult siblings in some circumstances.

Humanitarian—This category allows people whose circumstances are exceptionally difficult to gain New Zealand residence if this is the only solution to their situation and granting residence would not be contrary to the public interest. Applicants must have at least one close relative who is a New Zealand citizen or resident and who supports their application. Applicants must show either they or the New Zealand relative is suffering from serious physical harm and/or serious emotional harm.

Business Investor—Like the General Skills category, applicants must score a minimum number of points to gain residence. The number of points cannot fall below 12, and was 12 at the time of going to print. Points may be awarded for business experience, funds the applicant can invest in New Zealand, qualifications, age and settlement factors. Minimum requirements include the transfer of at least $750,000 to New Zealand for investment for at least two years, two years' business experience and English language skills. Funds must have been earned by applicants through their business skills.

Reunion of refugee Somali mother and older son with newly-arrived younger son.

The changes in 1995 also included new requirements for Returning Residents' Visas—required by migrants for entry back into New Zealand after an overseas trip. Returning Residents' Visas are linked with New Zealand residence tax status, as determined by the Inland Revenue Service, and length of time spent in New Zealand. People travelling on a New Zealand passport do not require a Returning Resident's Visa.

As of January 1998, the English language requirements for business investor category migrants have been relaxed slightly. While general skills category migrants are still required to have a modest level of English language ability equivalent to level 5 of the International English Language Testing System (IELTS), business investor migrants now only need to have a basic English requirement equating to IELTS level 4.

Who is migrating to New Zealand? Of the 33,836 people approved for residence in the year ending 30 June 1997, about 26 percent of the total were from Europe, 23 percent were from North Asia, 17 percent from Middle East and Africa, 14 percent from the Pacific, 9 percent from South Asia, 7 percent from South East Asia and 4 percent were from the Americas. This compares with a total of 54,453 approved in the year to 30 June 1996, of whom 44 percent were from North Asia, 18 percent from Europe, 12 percent from the Middle East and Africa, 11 percent from South Asia, 8 percent from the Pacific, 5 percent from South East Asia and 2 percent from the Americas.

In the year to 30 June 1997, 39 percent of people approved for residence were under the General Skills category and 11 percent under the now-closed General category—a total of 50 percent under points systems for skilled migrants, compared with 70 percent in 1995-96. The number of Family category approvals increased by about 2,000 people, but the percentage increased from 18 percent in the 1995-96 year to 35 percent in 1996-97 because of the lower target. The percentage of business approvals has fallen from 4 percent to 1 percent (104 people under the Business Investor category and 195 under the now-closed Business Investment category in the 1996-97 year).

Temporary entry. All travellers, including New Zealand citizens, arriving in New Zealand must produce a valid passport or another form of recognised travel document. Except for New Zealand citizens (which includes people born in the Cook Islands, Niue and Tokelau) and a small number of other people specified under the Immigration Act 1987, everyone entering New Zealand is required to obtain a permit to be in New Zealand.

Visitors. People from about 30 countries do not need to apply for a visa before they travel if their visit is as a tourist, to see friends or relatives, study for less than three months, play sport or perform in cultural events without pay, or a short business trip. Visitor permits are generally granted for an initial period of three months and may be extended up to a further six months. Visitors from countries which do not have a visa waiver agreement with New Zealand need to apply for a visitor visa prior to travelling to New Zealand. All visitors must be able to show they have sufficient funds to support themselves during their stay in New Zealand and have an outward ticket.

Students. People wishing to study in New Zealand need to apply for a student visa before travelling. Requirements include an offer of a place at a recognised educational institution, evidence course fees have been paid or that the student is exempt (for example on a scholarship), a guarantee of accommodation, be able to support themselves, have a return ticket home (or funds to buy one), attend classes and make satisfactory progress. A student permit does not allow the holder to work in New Zealand, though overseas students may be granted a variation of their student permit conditions for casual summer holiday work.

Work. The objective of New Zealand's work permit policy is to protect employment opportunities for New Zealand citizens and residents while still allowing New Zealand employers to recruit temporary workers from overseas to meet particular or seasonal skill needs which cannot be met from within New Zealand. Anyone who is not a New Zealand or Australian citizen or resident who wishes to work in New Zealand must have a work permit. “Work" is defined as an activity for which the person receives “gain or reward" which can include not only money, but also accommodation and food, for example. A work permit is still required if payment is made by an overseas employer.

Working holidays. Working holiday permits may be issued each year to several thousand young people (18-30 years). They allow holders to undertake casual work such as fruit picking, and for no more than three months in one job. Schemes are currently available to young people from Japan, the United Kingdom, Canada, the Republic of Ireland and Malaysia.

Removal and deportation. The Immigration Act 1987 makes provision for the removal of people who are unlawfully in New Zealand. People removed from New Zealand are not eligible to return for five years from the date of their departure. The act provides for a right of appeal against removal 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. Anyone who is deported is not permitted to return to New Zealand without special permission from the Minister of Immigration.

Administration and information. The New Zealand Immigration Service: Te Ratonga Manene, part of the Department of Labour, administers immigration legislation and policy. The role of the service is to manage immigration for national advantage on behalf of the government.

Further information about immigration policy and/or application forms and details of fees may be obtained from the nearest Immigration Service branch office in New Zealand or from New Zealand diplomatic and consular representatives overseas. All immigration forms and leaflets are also now available on the New Zealand Immigration Service's home page on the Internet at www.immigration.govt.nz.

Team Te Waka Hoe O, from Te Kaha, coming second in the 1500m midget girls outrigger canoe final, January 1997.

6.4 Maori society

Demography

In this section, statistics on the New Zealand Maori population from the 1996 Census are based on the concept of ‘ethnicity’ (see Ethnicity in preceding section) and are collected on the basis of personal identification, individual perception and choice.

Ethnicity statistics in 1996 are closely comparable with 1991 Census statistics.

While statistics based on ethnicity are widely used for analysing Maori population growth and distribution and relevant to many of the present day requirements of users, it should be noted that legislation pertaining to New Zealand Maori and the concept used to measure the Maori electoral population is based on Maori ancestry.

People are described as having New Zealand Maori ethnicity if they have given this response as any one of their ethnicities.

Age distribution. Table 6.30 compares the Maori population usually resident in New Zealand at the 1991 and 1996 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 1991 Census, are compared with the 5-9 years age groups, etc, at the 1996 Census, the contribution made by net external migration and natural increase to New Zealand Maori population growth can be seen. Another factor which affects this pattern is ethnic mobility (where a person changes ethnicity between censuses).

Table 6.30. NEW ZEALAND Maori POPULATION BY AGE GROUP1

Age group (years)1991 Census1996 CensusIntercensal change (percent)
NumberPercentageNumberPercentage

1People of New Zealand Maori ethnicity usually resident in New Zealand.

Source: Statistics New Zealand

0-462,00414.371,66713.715.6
5-951,07211.767,44212.932.0
10-1449,97111.557,31811.014.7
15-1730,0216.932,2116.27.3
18-1919,8904.619,5033.7-1.9
20-2442,8559.947,3469.010.5
25-2939,5619.143,1498.29.1
30-3433,9997.841,9948.023.5
35-3926,0106.036,4057.040.0
40-4420,7484.828,0445.435.2
45-4915,4383.622,3444.344.7
50-5413,8333.216,1013.116.4
55-5910,6502.413,8572.630.1
60-647,8361.810,1821.929.9
65-695,0641.27,2151.442.5
70-742,9310.74,3710.849.1
75-791,7250.42,3160.434.3
80 and over 11,2390.31,9260.455.2
            Total434,847100.0523,374100.020.4

At the 1996 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 23.0 percent of the total New Zealand resident population. In contrast, only 3.0 percent of Maori were 65 years of age and over at that time, the corresponding figure for the total New Zealand resident population being 11.7 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.

Geographical distribution. Changes in the regional distribution of the Maori population between the 1991 and 1996 Censuses are shown in table 6.31. Maori continue to be concentrated in the North Island regions (where 87.5 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 has continued to decline since 1981.

The South Island's share of the Maori population accordingly showed an increase, from 10.7 percent to 12.4 percent, during the intercensal period. Canterbury received the bulk of the increased share and contained 5.9 percent of the Maori population at the 1996 Census.

Redistribution of the New Zealand Maori population during 1991-96 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 6.31. NEW ZEALAND MAORI POPULATION BY REGIONAL COUNCIL1

Regional council1991 Census1996 CensusIntercensal change (percent)
NumberPercentageNumberPercentage

1People of New Zealand Maori ethnicity usually resident in New Zealand.

2Includes Chatham Islands District.

Source: Statistics New Zealand

North Island—
            Northland35,6108.241,5027.916.5
            Auckland103,58723.8126,41424.222.0
            Waikato59,98513.871,68213.719.5
            Bay of Plenty53,17512.262,74512.018.0
            Gisborne17,8204.119,3893.78.8
            Hawke's Bay28,2426.531,6506.012.1
            Taranaki12,7622.914,9852.917.4
            Manawatu-Wanganui34,5758.039,9997.615.7
            Wellington42,0789.749,6749.518.1
                  North Island total387,83489.2458,03787.518.1
North Island—
            Tasman1,6260.42,6100.560.5
            Nelson1,7070.43,0150.676.6
            Marlborough2,7780.63,9090.740.6
            West Coast2,0250.52,8350.540.0
            Canterbury22,0055.131,0115.940.9
            Otago7,4101.710,9052.147.2
            Southland9,1292.110,6382.016.5
                  South Island total46,68010.764,92012.439.1
            Extra-county islands and shipping23300.14140.125.1
                  New Zealand total434,847100.0523,371100.020.4

Male-female ratio. At the 1996 Census females outnumbered males in the Maori population. This repeats the pattern established in the 1991 Census. There were 258,000 males and 265,374 females in the Maori population, representing a sex ratio of 102.9 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. Table 6.32 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 2.14 births per woman in 1986 and stood at 2.38 in 1995. 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 1995 this had narrowed to 0.3 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 1995, the median age at childbearing was 25.0 years for Maori women and 29.0 years for non-Maori women.

Life expectancy. In 1990-92, the average life expectancy of Maori males was 68.0 years, compared with 73 years for Maori females, while for non-Maori, life expectancies were 73.4 years for males and 79.2 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 table 6.33. In spite of these gains, however, the life expectancy for Maori males is about five years lower and that for Maori females is about six years lower than for non-Maori males and females respectively.

Table 6.32. MAORI DEMOGRAPHIC INDEXES

YearLive birthsDeathsReproduction rates
NumberCrude birth rate1Total fertility rate2NumberCrude death rate1Rate of natural increase2,3
GrossNet

1Per 1,000 of mean population.

2Average 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 during that year.

3Excess of births over deaths.

Source: Statistics New Zealand

1986651321.942.1412254.1317.811.041.01
1987698223.052.2612053.9819.071.101.07
1988676721.942.1712584.0817.861.071.04
1989696722.222.2113514.3117.911.071.05
1990694721.772.1913954.3717.401.071.04
1991694621.452.1914424.4517.001.04 
1992723822.172.2913894.2517.921.07 
1993713121.662.2915184.6117.051.10 
1994705321.282.2914054.2417.041.11 
19957239P21.67P2.38P1745P5.22P16.45P1.15P 

Table 6.33. COMPARISON: MAORI AND NON-MAORI LIFE EXPECTANCY

YearLife expectancy at birth (years)
MaoriNon-Maori
MaleFemaleMaleFemale
Source: Statistics New Zealand
1960-6259.061.469.274.5
1970-7261.065.069.175.2
1980-8265.169.570.876.9
1985-8767.472.371.477.4
1990-9268.073.073.479.2

MAORI IWI LOCATIONS
Traditional areas of major tribes

Remedy hearings were held for Turangi Township (Wai 84) and a remedies report is expected to be released in early 1998 for that inquiry. In February 1998 the 40 Tauranga Moana claims (Wai 215) went to hearing, and hearings also begin for the Hauraki consolidated claim (Wai 686) later in the year.

In March 1997 the Tribunal released the Muriwhenua Land Report (Wai 45) in Kaitaia. In May 1997 the National Overview Report of the Rangahaua Whanui programme was released in three volumes. The National Overview Report provided a broad survey of the effect of Crown actions and policies on Maori on a district-by-district basis, and on a national thematic level. The Ikawhenua Rivers report, Whanganui River report, and the Te Whanau a Waipareira report will be released in 1998.

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 3.1: 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: Te Roopu Whakamana i Te Tiriti o Waitangi. The Waitangi Tribunal is a permanent commission of inquiry established under the Treaty of Waitangi Act 1975. Its main function is to inquire into and make findings and recommendations to the Crown on claims relating to the Treaty of Waitangi submitted to it by Maori.

Tribunal members are appointed for their knowledge and experience in the different aspects of matters likely to come before the tribunal. Up to 16 members, in addition to the chairperson (who is ex officio the Chief Judge of the Maori Land Court) may be appointed. From the total membership separate tribunals (of no fewer than three nor more than seven members) are constituted for different inquiries. The membership of the tribunal reflects the partnership in the Treaty of Waitangi through equal representation of Maori and Pakeha. Appointments are made by the Governor-General on the recommendation of the Minister of Maori Affairs made after consultation with the Minister of Justice.

The Tribunal may not inquire into any claim by Maori. It may only inquire into claims concerning legislation, or acts, omissions, policies and practices of the Crown, which are alleged to have caused the claimants prejudice and claimed to be inconsistent with the principles of the Treaty of Waitangi. Claims fall into the following three broad categories: historical claims (eg past government actions); contemporary claims (eg current government policies or practices); and conceptual claims (eg the “ownership" of natural resources).

By the end of the 1996-97 year, the tribunal had registered 690 claims. Of these, 80 were outstanding claims and 304 needed further research.

The text of all tribunal reports is accessible free to all users in an electronic format with search facilities. The tribunal's web site address is: http://www.knowledge-basket.co.nz/waitangi/welcome.html.

The Office of Treaty Settlements: Te Tari Whakatau Take e pa ana ki te Tiriti o Waitangi, was established on 1 January 1995. It was created to give better focus to government objectives to resolve historical Treaty of Waitangi claims, and has the major functions:

  • provide policy advice to the Minister in Charge of Treaty of Waitangi Negotiations on specific treaty claims and generic issues that impact on these claims;

  • negotiate and implement the settlement of claims;

  • provide policy advice to the minister on mechanisms to protect Maori interests inland;

  • acquire, manage and dispose of Crown-owned land for purposes related to treaty claims.

The director is directly responsible to the Minister in Charge of Treaty of Waitangi Negotiations for the policy advice, negotiations services and the implementation of the settled claims. For administration and financial management the office is attached to but funded separately from the Ministry of Justice, having its own Vote: Treaty of Waitangi Negotiations. It functions under the State Sector Act 1988.

The office is currently dealing with over 30 claims at negotiation or pre-negotiation stage. These cover a number of iwi, including Ngai Tahu, Ngati Awa, and the Taranaki tribes. The major treaty settlement in 1996 was of the historical grievance of Whakatohea (see panel). A Heads of Agreement was also reached with Ngai Tahu on the settlement of its claims.

Ministry of Maori Development / Te Puni Kokiri

The ministry is the Crown's principal adviser on the Crown's relationship with iwi, hapu and Maori, and on key government policies as they affect Maori.

In carrying out this role, the ministry's functions are:

  • to provide strategic leadership advice

  • to provide advice on sectoral issues particularly across the key sectors of education, health, employment and commerce

  • to provide early warning of discrete issues at a community level that affect the Crown-Maori relationship.

In providing this advice, the ministry aims to achieve parity between Maori and non-Maori in key social and economic outcomes, as well as progress the fair and durable settlement of Treaty grievances.

Te Puni Kokiri was established as a policy ministry on 1 January 1992 and replaced Manatu Maori (the Department of Maori Affairs) and Te Tira Ahu Iwi (the Iwi Transition Agency). The name Te Puni Kokiri was proposed during a hui of kaumatua in Wellington in 1991. The name indicates a group of travellers making progress, signalling a forward direction for the ministry.

Te Puni Kokiri's operating budget absorbs the costs of the ministry, as well as the Maori Development Commissions and the administration costs of the Maori Trust Office.

The ministry's Internet address is: www.tpk.govt.nz

Te Puni Kokiri is organised into seven branches. Their respective roles and functions follow.

Economic Development Branch—advises ministers and other government agencies on options to maximise the benefit for iwi, hapu and Maori of the commercial use of their collective and individual assets. Specific areas of work focus on enterprise and industry development, Maori tourism initiatives, land development and asset selection and financing.

Treaty Compliance Branch—provides advice on the government's settlement policies, on its biodiversity and intellectual property policies, and undertakes analysis of the Treaty of Waitangi's evolving meaning and application.

Social Policy Branch—examines barriers to Maori achieving parity with non-Maori in social and economic outcomes. It then develops strategies to address these barriers and advises other government agencies on how best to improve their delivery of services to Maori. In particular, the branch focuses on education, health, employment, housing, welfare and justice outcomes.

Regional Development Branch—is made up of regional offices throughout New Zealand. The staff in these 13 offices provide advice to head office in Wellington on local issues which may impact on the Crown-Maori relationship and work with local government agencies to ensure that they are delivering their services to Maori effectively. They also advise on appropriate processes for consultation between the Crown and Maori.

Monitoring and Evaluation—monitors and evaluates agencies who are responsible for delivering services to Maori. It provides these agencies with feedback on their delivery and how to improve their performance.

Legal and Law Reform—advises ministers on the legislation and policies which impact directly on the legal rights of Maori, such as the Reserved Lands legislation.

Corporate Services Branch—designs and implements the policies and practices which the organisation needs to ensure it runs effectively and efficiently.

Other services

Services to the Maori Trustee and the Maori Development Commissions—the Maori Trustee operates under its own legislation, while the Maori Development Commissions report directly to the Minister of Maori Affairs. Te Puni Kokiri provides the Trustee and the commissions with administrative and clerical support.

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).

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: Te Kaunihera Maori. The New Zealand Maori Council is constituted under the Maori Community Development Act 1962. It is a founding member of the World Indigenous People's Council.

Some of the functions of the council, set out in s 18 of the act, are to:

  • Consider and discuss such matters as appear relevant to the social and economic advancement of Maori.

  • Consider and, as far as possible, act on any measures that will conserve and promote harmonious and friendly relations between Maori and other members of the community.

  • Promote, encourage and assist Maori to conserve, improve and advance their physical, economic, industrial, educational, social, moral, cultural and spiritual well-being, through self-reliance, sound economic management and pride in themselves.

  • Collaborate with and assist government departments and other organisations and agencies in the development of employment, education, training, housing and health care for Maori people.

The council is responsible for advancing the provisions of the Treaty of Waitangi and effecting changes in the status of Maori through Acts of Parliament, such as the various fisheries acts (especially the Maori Fisheries Act 1989), the State-owned Enterprises Act 1986 and the Crown Forest Assets Act 1989.

The council as a statutory body is accountable to the government only for its funding but in all other respects is accountable to all Maori.

The council is based on the 946 marae throughout the country. It currently represents 15 district Maori councils, which nominate three delegates to attend full council meetings. The council now includes representatives from the Maori Women's Welfare League, Nga Puna Waihanga (Maori Artists) and the Maori Wardens. It is the only national Maori body with a statutory framework that recognises non-iwi based representation. Apart from the urban district Maori councils, each district council is tribally represented, and the council promotes the traditional social infrastructure of whanau and hapu. The executive committee, consisting of the chairman of each district council, meets as often as possible.

Maori Congress: Te Whakakotahitanga o nga iwi o Aotearoa. The Maori Congress was officially launched in July 1990, after three national Maori leaders—the late Sir Hepi Te Heuheu, Dame Te Atairangikaahu and the late Mrs Te Reo Hura—sought to create a national body under which iwi could gather to share, consolidate and advance their 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 has three elected officers. Membership includes five delegates from 45 participating iwi.

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, and working with the government and its agencies to enhance the Treaty relationship between iwi, Maori and the Crown.

Maori wardens. Maori wardens have been in existence since 1945. Their powers are conferred by the Maori Community Development Act 1962 or by regulations made under it. Wardens are nominated by their Maori Committee and then appointed by the Minister of Maori Affairs after their nomination has been endorsed by both the appropriate District Maori Council and the Chief Executive of Te Puni Kokiri. They are appointed for a term of three years, and may be re-appointed for further terms (achieving life membership after 12 years' service).

Wardens are under the control/supervision of the District Maori Council or a Maori Association to which the council delegates power. The District Maori Council can also recommend that appointments be cancelled.

There is a Maori Wardens Association which wardens may join if they wish. They hold annual conferences to keep wardens informed of developments in relation to their roles. Most wardens are affiliated to this group, but not all. Some feel they ‘lose control’ if they are members of the association. Some prefer to work independently, some prefer to be under the jurisdiction of the District Maori Council. These councils are not iwi-aligned.

Protesters scuffle with Maori Wardens as they try to force entry to the Waitangi Fisheries Commission Hui in Wellington, July 1997.

The wardens who are voluntary workers undertake anything of social significance to Maori such as streetkids, kids at risk etc. They also attend Court as court helpers, attend family group conferences and patrol shopping areas.

Maori wardens can warn a publican not to serve a Maori, or order him or her to leave licensed premises, or take their car keys. They also have some power regarding both Maori and non Maori at ‘Maori gatherings’, such as hui, tangi or anything on the marae relating to the use of liquor.

There are around 2,000 Maori wardens under the 14 District Maori Councils. The Maori Wardens Association is funded by a grant of $100,000 per annum from the Ministry of Maori Development (Te Puni Kokiri).

Maori Women's Welfare League Inc: Te Roopu Wahine Maori Toko i Te Ora is a national voluntary organisation; its philosophy is the well-being of Maori women and their families. The league has a nationwide network of 120 branches spread throughout New Zealand with a membership of 2,400 women. It has been actively involved with Maori families and communities since 1951 to improve health, housing, education, welfare, employment and justice for Maori people. The ill health and social status of Maori people led Maori to take responsibility to improve Maori wellbeing. The league's networks developed over the years allow it to act as an effective agent for change.

Its programmes are:

  • Immunisation—At a national level it is aimed to increase immunisation to 90-95 percent by 1997, so that as many children as possible will have completed childhood immunisation by the age of two. The league, with government funding, has eight immunisation co-ordinators throughout the country. Members of league branches in the regions provide voluntary services by visiting families and encouraging them to immunise their children.

  • Healthy Lifestyles: Smokefree Netball—The Healthy Lifestyle programme is a health promotion initiative where netball is the focus for promoting healthy lifestyles. The goal is to promote wellness and improve health among young Maori women. The objectives are to reduce smoking by having smokefree players in all grades at national tournaments and to have healthy lifestyle activities, field days and national tournaments in smokefree environments.

Kohanga reo. Te Kohanga Reo is a whanau (family) base where 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) through the medium of Maori language.

There are 705 Te Kohanga Reo throughout New Zealand where 14,500 children are taught in te reo Maori. Approximately 30,000 children have passed through Te Kohanga Reo since it was established in 1982.

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 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 Maori. 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. The marae subsidy programme formerly administered by Te Puni Kokiri was concluded on 30 June 1996. Marae requiring assistance for renovations and maintenance now apply to the Lottery Grants Board for such assistance.

Employment and training. See section 14.3: Training and employment assistance.

Te reo Maori

Taketake ake no Aotearoa te reo Maori, a$, he ahua 150,000 nga tangata ko te reo Maori to ratou ake reo. Ko te reo Maori o Aotearoa tetahi o nga reo o Te Moana-nui-a-Kiwa, a, he reo e whanaunga ana ki nga reo o Rarotonga, o Tahiti me Hawai'i.

Na te kaha o te reo Pakeha i ruarua haere ai te hunga korero Maori mai i te tematanga o tenei rautau; otira, mai i te tematanga o tenei ngahurutanga, kua oho ake te aroha o te iwi Maori ki tona reo. Tokohia ke nei nga tamariki kei nga Kohanga Reo, kei nga Kura Kaupapa Maori ranei e whakaakona ki te reo Maori. He autaia tonu te nui o nga reo irirangi Maori kua puta ake, a, ko te wahi ki te pouaka whakaata Maori e tirohia tonutia ana.

Ko te ture i keia ai te reo Maori he reo mana no Aotearoa, i whakaturia ai hoki Te Taura Whiri i te Reo Maori i te tau 1987, i whakatakotoria hei urupare ki te purongo e tata tonu ana te puta i Te Ropu Whakamana i te Tiriti o Waitangióe pa ana taua pwrongo ki te reo Maori me tona turanga i nga whare whakawa, i nga kura, i nga mahi paho me nga tari kawanatanga.

Ahakoa kaore i rite i Te Ture Reo Maori 1987 te katoa o nga whakahau a Te Ropu Whakamana i te Tiriti o Waitangi, i keia te reo Maori he reo mana, a, ka ahei hoki te tangata ki te korero Maori i nga whare whakawa o te motu.

Ko nga uaratanga o Te Taura Whiri i te Reo Maori he whakatairanga, he whakau i te reo Maori hei reo e korerotia whanuitia ana, kia ora tonu ai, a, he whakaorite i te reo Maori me te reo Pakeha ki ta te ture titiro. Hei hanga i tetahi Aotearoa e ahei ana nga tangata katoa ki te korero i to ratou ake reo, ahakoa reo Maori, reo Pakeha ranei, e aro nui atu ana Te Taura Whiri i te Reo Maori ki nga ropu e toru e whai ake nei: ki te iwi Maori, ki te hunga o nga tari kawanatanga me te iwi whanui.

Kei te iwi Maori tonu te uara whakaora ake i tona reo, ina hoki kei reira te tino matauranga ki te reo. Ko te hunga matatau ki te reo e whakahauria ana e Te Taura Whiri i te Reo Maori kia tukua iho e ratou tenei taonga ki te matatahi e tupu haere nei, ki te matapuputu hoki kaore i te mohio ki te reo o ona matua tepuna. I tua atu i te wero atu ki te iwi Maori kia matapakitia, kia whakatutukia he kaupapa mo te reo, ko tetahi o nga mahi a Te Taura Whiri i te Reo Maori he tito, he kohi kupu hou mai hei whakamahi ma te hunga korero Maori (hei tauira, ‘waea whakaahua’ facsimile device, fax). Hei whakatutuki noa i nga tono kupu hou, aria hou a te marea kua kitea mai e Te Taura Whiri i Te Reo Maori tona ahua 5000-6000 nei kupu hou, a, 600 nei nga ingoa hou mo nga pakihi huhua, tangata hoki, mai i tona whakaturanga i te tau 1987. Mai i te tau 1990, ahakoa ehara ke Te Taura Whiri i te whakahaere whakangungu kua whai wahi atu ano ki te whakatu whakaakoranga reo Maori ki te hunga whakaako i te reo. Ko te whai a enei whakaakoranga ko te whakapiki ake i te pai o te tuhia me te korerotia o te reo Maori i waenga i te hunga whakaako i te reo Maori kia riro ai ma enei whakaakoranga e tino tika ai te reo e whangaia atu ana e ratou ki a ratou akonga.

E akiakitia ana nga tari kawanatanga kia aro mai ki nga awhero o te iwi Maori e pa ana ki te reo. Ko tetahi atu o nga mahi a Te Taura Whiri i te Reo Maori he awhina i aua tari ki te whakarite ratonga reo Maori. Kei te nui nga panui turanga watea kua puta ke i nga nupepa o te motu, i etahi atu wahi hoki, ki nga reo e rua, a, kei te nui nga pukapuka korero whanui kua tangia ketia ki te reo Pakeha me te reo Maori.

E whakaohongia ana te iwi whanui ki nga wawata o te iwi Maori mo te ahua ki te reo, tae atu hoki ki nga kura kaupapa Maori me te paho reo Maori. Ahakoa ka riro ma te iwi Maori ano enei kaupapa e whakahaere, e tika ana kia tautokona e te iwi whanui kia pumau ai te mana o te reo mo ake tonu atu. I te tau 1998 kua whakanuitia e Te Taura Whiri i Te Reo Maori te ekenga ki te ngahurutanga o nga tau o Te Ture Reo Maori, te turanga o te reo Maori hei reo mana mo Aotearoa tae atu hoki ki te whakatunga o Te Taura Whiri i Te Reo Maori, a, ko taua whakanuitanga kua karangatia ko Te Ngahurutanga—Toku Reo, Toku Mana. I te tau 1995 ko He Taonga Te Reo: He Whakanui i Te Reo Maori, a, na nga purero a te iwi whanui, na nga whakaaturanga motuhake a te pouaka whakaata, na te pane kuini, na te maheni motuhake me etahi mahi noa atu te whakatetina kia akona te reo, kia whanui ake hoki te korerotia o te reo. Ko ta Te Ngahurutanga he tiki atu i te manuka kua takoto i te hunga whakaaro nui mai ki te kaupapa he aki ano hoki kia whakawhanuitia ake a ratou mahi o te tau 1998. Ka whakanuitia ano hoki te whakapetonga ngoi o nga tau kua hori me te whakatakoto whakaaro hou ano mo te ora tonu o te reo pera i ta o tatou pakeke i ke ra i a ratou i haere ai ki te mura o te ahi, Ake! Ake! kia kaha e!

New Zealand Maori, a Polynesian language closely related to Cook Islands Maori, Tahitian and Hawaiian, is the indigenous language of New Zealand, and according to the 1996 Census the language of some 150,000 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 pre-school movement) and, more recently, the kura kaupapa Maori (Maori-language immersion primary and secondary schools). Many Maori radio stations have now been established and there are moves at present to look again at the establishment of 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 Maori (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 Maori 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 Maori 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’. In an effort to meet public demand for new words and concepts the Maori Language Commission has coined over 5,000-6,000 new words and over 600 new names for various companies and individuals since establishment in 1987. Although the commission is not a training establishment it has also been involved in the facilitation of total immersion quality Maori language courses since 1990. The aim of the courses is to raise the standard of spoken and written Maori amongst teachers of the language thereby ensuring accurate language is transmitted.

The state sector is encouraged to respond to the language needs of its Maori-speaking clientele. Te Taura Whiri i te Reo Maori 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.

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.

In 1998 the Maori Language Commission celebrates a decade of the Maori Language Act, Maori language as an official language of New Zealand and the establishment of the Maori Language Commission, Te Taura Whiri i Te Reo Maori, with a celebration named Te Ngahurutanga—Toku Reo Toku Mana, a decade of Maori Language—my language, my mana. He Taonga Te Reo 1995: A Celebration of Maori Language celebrated the Maori language through community projects, special TV programmes, postage stamps, a special magazine and many other projects, encouraging learning, and wider use of te reo. Te Ngahurutanga will seek to harness and build on the goodwill created by He Taonga te Reo, encouraging people to expand on their efforts in 1998. Revitalisation efforts of the past will also be celebrated while new plans for the future of the Maori language will be formulated.

Plans for Te Ngahurutanga include:

  • a scholarship for post graduate level Maori language study

  • production of a Maori idiom book which will be accompanied by a series of programmettes introducing and explaining new words coined by the Commission, Maori idiom and Maori metaphor for Maori radio

  • production of a calendar celebrating the decade

  • posters, resources and other merchandise.

6.5 Pacific Island population

Demography

The 1996 Census provides the most recent and complete data on New Zealand's Pacific Island population. The following tables of Pacific Island statistics are on the basis of self identification and are based on the concept of ethnicity allowing comparisons between the 1991 and 1996 Census data. This population includes the categories of Samoan, Cook Island Maori, Niuean, Tokelauan, and other Pacific Island groups eg, Hawaiian, Tahitian. People who specified themselves as belonging to one or several Pacific Island categories are defined as having Pacific Islands ethnicity.

Age distribution. Table 6.34 compares the Pacific Island populations at the 1991 and 1996 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 1991 Census is compared with the 5-9 years group at the 1996 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 35,160 (21.0 percent) in the resident Pacific Island population during the 1991-96 intercensal period was partly a result of significant natural increase (births less deaths) for people of this ethnicity.

Table 6.34. PACIFIC ISLAND POPULATION BY AGE GROUP1

Age group (years)1991 Census1996 CensusIntercensal change (percent)
NumberPercentageNumberPercentage

1People of Pacific Island ethnicity usually resident in New Zealand.

Source: Statistics New Zealand

   0-425,73715.430,63015.119.0
   5-919,85411.926,84113.335.2
10-1419,11311.421,77710.814.0
15-1917,22610.320,33410.118.1
20-2416,69510.017,7068.86.1
25-2915,6279.417,3198.610.8
30-3413,0807.816,0567.922.8
35-3910,7886.512,9426.420.0
40-448,5475.110,5395.223.3
45-495,9973.68,2984.138.4
50-544,7102.85,8502.924.2
55-593,3392.04,7162.341.1
60-642,6221.63,3571.728.1
65-691,7311.02,5531.347.4
70-741,0590.61,6770.858.4
75-795610.39450.569.1
80 and over3900.26930.377.7
            Total167,073100.0202,233100.021.0

Fijian artist Mereia Johnston celebrating Fiji Focus Week in Manukau City.

At the 1996 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 39.2 percent of Pacific Islanders were under 15 years of age, compared with 23.0 percent of the total population. In contrast only 3.0 percent of Pacific Islanders were 65 years of age and over at that time, the corresponding figure for the total population being 11.7 percent.

In the past, the Pacific Island population in New Zealand had a different age structure from that of the New Zealand Maori population. This was mainly the result of consistently high external net migration levels, especially for the younger working-age group (15-24 years) during the 1970s. However, with a large increase in the incidence of inter-marriage, the ageing of the Pacific Island population and relatively high fertility rates, the age structure had by 1996 become almost identical with the New Zealand Maori population. Two other features affect this population: first, 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 and second, an increasingly large proportion of children and teenagers identify themselves as being of both Pacific Island and New Zealand Maori ethnicities. Over one-quarter of all people under 5 years of age who identify as of Pacific Island ethnicity also identify with New Zealand Maori ethnicity.

Distribution of population. The distribution of the Pacific Island population by regional council is shown in table 6.35. All regional councils experienced growth in their Pacific Island populations between the 1991 and 1996 Censuses. In terms of numbers, Auckland experienced the greatest increase (19,989) or 56.9 percent of the national increase of 35,160 during the intercensal period.

Table 6.35. PACIFIC ISLAND POPULATION BY REGIONAL COUNCIL1

Regional council1991 Census1996 CensusIntercensal change (percent)
NumberPercentageNumberPercentage

1People of Pacific Island ethnicity usually resident in New Zealand.

2Includes Chatham Islands District.

Source: Statistics New Zealand

North Island—
        Northland1,5870.92,9221.484.2
        Auckland111,85566.9131,84465.217.9
        Waikato6,9304.19,5974.738.5
        Bay of Plenty3,2461.95,0882.556.7
        Gisborne5040.39870.595.6
        Hawke's Bay2,5171.53,7321.848.3
        Taranaki6330.41,0800.570.1
        Manawatu-Wanganui3,3482.04,7042.340.5
        Wellington26,13315.629,28014.512.0
                North Island total156,75393.8189,23793.620.7
South Island—
        Tasman1260.12250.178.6
        Nelson2250.14770.2112.5
        Marlborough1770.13450.296.6
        West Coast1440.11980.135.9
        Canterbury5,8383.57,7523.832.8
        Otago2,2351.32,5651.314.8
        Southland1,5660.91,4190.7-9.3
                South Island total10,3116.212,9846.425.9
        Extra-county islands and shipping29-12-..
                New Zealand total167,070100.0202,233100.021.0

Ministry of Pacific Island Affairs

The Ministry of Pacific Island Affairs has a unique role in promoting and ensuring that development of social and economic policies recognise and reflect Pacific cultural values and aspirations, so that Pacific people can participate in and contribute fully to New Zealand's social, cultural and economic life.

It is concerned with Pacific communities in New Zealand whilst at the same time, recognising the web that binds Pacific peoples to their respective home countries.

The vision of the Ministry of Pacific Island Affairs is “to achieve a quality of life that is consistent with the aspirations of Pacific peoples resident in New Zealand.” This reflects the Pacific communities' desire to: do things in a way which reflects their uniqueness; participate in deciding their future; focus on upskilling their knowledge; and capitalise on cultural diversity and spirituality.

The Ministry of Pacific Island Affairs assists this by:

  • providing advice on key policies and issues;

  • disseminating information to and consulting with Pacific communities;

  • facilitating access by Pacific people to mainstream services;

  • forming effective strategic alliances with departments and agencies who have a major impact on outcomes for Pacific peoples;

  • promoting Pacific leadership that fosters self-reliance and full participation in all facets of New Zealand life; and

  • monitoring and influencing the development and implementation of government policies that affect Pacific people.

It remains the ministry's view that programmes aimed at removing the disparities between Pacific peoples and the general population across the full range of social and economic indicators must be culturally appropriate; recognise and build on the strengths and diversities of Pacific communities; and foster ownership by Pacific communities.

An inter-departmental review was undertaken in April 1997 of government resources applied to Pacific peoples in New Zealand, and options for improving state sector responsiveness to meeting the needs and concerns of Pacific communities. While the resulting report provided the framework for the refocusing of the ministry, it also identified a number of issues relating to improving outcomes for Pacific peoples in health, education, employment, housing, social justice and economic development. It also provides a sound direction for the ministry's future policy work.

As part of its “refocused approach" the ministry has adapted a piloting role to implement innovative and complementary programmes in areas of social and economic activity. It has also signed protocols with key departments providing the framework for regular consultation, strategic approaches and policy direction. They will also assist departments to incorporate Pacific perspectives into their own work.

Realignment of the advisory capacity to the ministry is also under way, as are major business development opportunities for Pacific people, particularly in the Auckland area (largest Pacific population in the world), with the development of a Pacific Market concept facilitated by the Pacific Island Business Development Trust.

Current trends show that the Pacific population in New Zealand is growing 11 times faster than other population groups and is expected to double by 2031. Greater emphasis will therefore be placed on strengthening Pacific families to take account of their cultural diversity, and on providing more support to women and youth.

Auckland Girls Grammar Samoan Performing Group.

PACIFIC MIGRATION
Total migrants to New Zealand

Contributors

  • 6.1 Statistics New Zealand.

  • 6.2 Statistics New Zealand; Relationship Services; Te Korowai Aroha Aotearoa.

  • 6.3 Statistics New Zealand; Human Rights Commission; Office of the Race Relations Conciliator; Equal Employment Opportunities Trust; Ministry of Women's Affairs; Ministry of Youth Affairs; Statistics New Zealand; Department of Internal Affairs; New Zealand Immigration Service.

  • 6.4 Statistics New Zealand; Waitangi Tribunal; Office of Treaty Settlements; Ministry of Maori Development (Te Puni Kokiri); Maori Council; Maori Congress; Maori Women's Welfare League; Kohanga Reo; Maori Language Commission.

  • 6.5 Statistics New Zealand; Ministry of Pacific Island Affairs.

Special articles

Race Relations Conciliator; Ministry of Women's Affairs; Janet Hesketh, President National Council of Women; New Zealand Federation of Ethnic Councils; Commissioner for Children; Ministry of Youth Affairs; Refugee and Migrant Service; Waitangi Tribunal; Maui Solomon, Barrister; Office of Treaty Settlements; Maori Women's Welfare League.

Further information

Households

Consumer Expenditure. Statistics New Zealand (annual).

Families and Households and Housing. Both 1996 Census of Population and Dwellings. Statistics New Zealand, 1997.

Marriage

Demographic Trends. Statistics New Zealand (annual).

Human rights, immigration and citizenship

Annual Report of the EEO Trust.

Demographic Trends. Statistics New Zealand (annual).

EEO policy to 2010: Future directions of EEO in the New Zealand Public Service. State Services Commission, 1997.

Ethnic Groups and People Born Overseas. Both 1996 Census of Population and Dwellings. Statistics New Zealand, 1997.

New Zealand Now: Asian New Zealanders. Statistics New Zealand, 1995.

Report of the Commissioner for Children (Parl paper E.65)

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

Report of the Department of Labour (Parl paper G.1).

Report of the Human Rights Commission and the Race Relations Conciliator (Parl paper E.6).

Maori population

Demographic Trends. Statistics New Zealand (annual).

Iwi and Maori. Both 1996 Census of Population and Dwellings. Statistics New Zealand, 1997.

Report of the Maori Language Commission (Parl paper E.34)

Report of the Ministry of Maori Development—Te Puni Kokiri (Parl paper E.47)

Census of Population and Dwellings 1991, New Zealand Maori Population and Dwellings and Iwi Population and Dwellings. Department of Statistics.

New Zealand Now: Maori. Statistics New Zealand, 1994.

Te Kanohi Hou o Aotearoa-Maori. Statistics New Zealand, 1995.

Trends in Maori employment, income and expenditure. Te Puni Kokiri, 1998.

Pacific Island population

Cook Island/Fijian/Niuean/Samoan/Tokelauan/Tongan in the People in New Zealand series. Statistics New Zealand, 1998 (forthcoming)

Pacific Islands People. 1996 Census of Population and Dwellings. Statistics New Zealand, 1997

Report of the Ministry of Pacific Island Affairs (Parl paper G.54)

Chapter 7. Social welfare

Invercargill CYPFS organised a poster competition to boost awareness and encourage foster parenting.

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 and area levels. Issues of access to and the cultural appropriateness of services have also led to a wider range of providers.

Department of Social Welfare

The business unit structure of the department was put into place in 1992 to ensure that the three major delivery functions (income support; social services to children, young persons and their families; and funding of welfare organisations) would operate in a more accountable way, each under a General Manager. In addition, a Social Policy Agency, Senior Citizens Unit and Ministerial Services Unit provide policy advice and ministerial liaison and support to the Minister of Social Welfare, Minister of Senior Citizens and Minister for War Pensions.

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.

  • 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 7.1. SOCIAL WELFARE EXPENDITURE

Year ended 30 JunePayments on behalf of the CrownReceipts on behalf of the CrownDepartmental expenditure
New Zealand superannuationAll other paymentsNet operating expensesNet capital expensesTotal
Source: Department of Social Welfare
 $(million)
19915,1734,458245496359,916
19925,5154,2643135192410,008
19935,3164,5552644622710,096
19945,1034,688274455269,998
19955,0564,8432904563610,101
19965,0544,9422444631810,233
19975,2395,0982584681910,566

In late 1997 the Government announced that Income Support, the New Zealand Employment Service and the Community Employment Group would be integrated from 1 October 1998.

SOCIAL WELFARE EXPENDITURE
Percentage of GDP

7.1 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.

Forty-six shop front offices based in communities were established in the last year, bringing the total number to 137. They are aimed at giving ready access to Income Support's services.

INCOME SUPPORT
Benefit payments made by Income Support

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.

Income Support delivers benefits, New Zealand 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 4,200 people in 90 offices throughout New Zealand, the service has 843,825 customers including war pensioners or approximately one in four 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.

Table 7.2. CASH BENEFITS: WEEKLY RATES AT 1 MARCH 1998

BenefitBasic net benefit

1No longer available from 1 January 1998.

Source: Department of Social Welfare

$
Unemployment—
Without children:
Single 16-17 year olds (training benefit only)196.97
Single 18-24 year olds (YJSA - Young Job Seekers Allowance)121.77
Single 25 and over146.13
Married couple243.54
With children:
Single (1 child)209.30
Single (2 children)228.34
Married couple (1 + child)258.80
Sickness—
Without children:
Single 16-17 year olds (ESB - Emergency Sickness Benefit) at home197.42
Single 16-17 year olds (ESB - Emergency Sickness Benefit) away from home121.77
Single 18-24 year olds146.13
Single 25 and over152.21
Married couple276.78
With children:
Single (1 child)209.30
Single (2 children)228.34
Married couple (1 + child)276.78
Invalids and transitional retirement benefits—
Without children:
Single 16-17 year olds147.81
Single 18 and over182.85
Married couple304.42
With children:
Single (1 child)239.94
Single (2+ children)257.66
Married couple (1 + child)304.42
Widows and domestic purposes benefit—
Women alone single adult152.21
Sole parent (1 child)209.30
Sole parent (2 children)228.34
Domiciliary care domestic purposes benefit—
Single 16-17 year olds147.81
Single 18 and over182.65
Sole parent (1 child)239.94
Sole parent (2+ children)257.66
Half married rate152.21
Orphans and unsupported child benefit—
Under 5 years71.01
5-9 years86.23
10-13 years93.85
14 and over101.46
Family support—
First or only child47.00
Second/subsequent child aged 0-12 years32.00
Second/subsequent child, 13-15 years40.00
Second/subsequent child, 16-17 years60.00
Independent youth benefit—
Single 16-17 year olds1121.77
Job search allowance—
Single 16-17 year olds196.97
New Zealand Superannuation and veterans pension (gross rate)—
Single living alone252.82
Single sharing231.72
Married person189.52
Married couple: both qualify379.04
Married couple: non-qualifying spouse after 1 January 1998360.74
Married couple: non-qualifying spouse before 1 January 1998379.04

The service is focusing on providing a more personalised service to help working-age people take steps towards education, training and work.

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.

  • New Zealand superannuation and veterans benefits.

  • Other benefits, grants and payments: accommodation supplement, childcare subsidy programme, disability allowance, funeral grant, special benefits, special needs grants, training incentive allowance and advances on benefits.

  • 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 table 7.2 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 Income Support offices.

Income-tested benefits

Invalids, sickness, widows, domestic purposes, unemployment, training, and transitional retirement 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. New Zealand Superannuation and Veterans pensions are also adjusted annually in line with CPI movements. However this adjusted rate is then compared to average wage levels to ensure that the after-tax benefit rate for couples is not more than 72.5 percent or less than 65 percent of average after-tax wages.

Basic income exemptions. The basic income exemption has increased from $50 a week ($60 for beneficiaries with children) from 1 July 1996. For people receiving invalids, domestic purposes, emergency maintenance and widow's benefits the benefit is reduced by 30 cents for every dollar earned between $80.00 and $180.00 a week. Every dollar of income over $180.00 will then reduce the benefit by 70 cents.

For people receiving unemployment, sickness, training, independent youth and transitional retirement benefits and ‘non-qualified’ spouses of people receiving New Zealand superannuation and veterans pensions, any income over the $80.00 exemption reduces the benefit/pension by 70 cents for every $1.00.

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 due to a disability. The number of invalids benefits in force at 30 June 1997 was 46,099, an increase of 3,649 from the previous year.

NUMBER OF BENEFITS

The numbers graphed here are given in Table 7.4. Family Benefits were abolished from 1 April 1991, and replaced by the targeted Family Support Scheme. The number of people receiving Family Support, which is a negative income tax rather than a social security benefit, is not published by the Department of Social Welfare.

INCOME SUPPORT
Percentages of people receiving support, by type of benefit
For actual numbers of people see Table 7.4

Sickness benefit. A sickness benefit is payable to persons over the age of 16 who are temporarily incapacitated for work, and as a result suffer a loss of earnings. The number of sickness benefits in force at 30 June 1997 was 34,371, an increase of 985 from the previous year.

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 1997 was 9,174, 127 more than at 30 June 1996; of this number 2,606 were caregivers for 4,469 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 1997 was 112,395; of this number 107,629 were sole parents (caregivers for 189,059); 1,730 were caring for the sick or infirm; and 2,930 were women alone. At 30 June 1996 there were 108,789 domestic purposes benefits in force, 3,606 fewer than at 30 June 1997. Nearly 40 percent of the recipients of a benefit are aged between 30 and 39, and 66 percent have come from a relationship where they have separated from a spouse or partner.

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 increased by 4.84 percent over the 1996 year. As at 30 June 1997 a total of 140,628 unemployment benefits were being paid, 6,495 more than at 30 June 1996. Of this number 116,230 people received the standard benefit; 220 received the job search allowance; 2,554 the independent youth benefit; 10,852 received the 55+ benefit while 10,721 received emergency unemployment benefits. Emergency support for unemployed students has increased, with 24,754 at the end of December 1996, compared with 23,085 at the end of December 1995, 22,282 at the end of December 1994, 23,035 at the end of December 1993 and 21,961 at the end of December 1992.

Table 7.3. SUPPLEMENTARY PAYMENTS UNDER THE SOCIAL SECURITY ACT

Year ended 30 June1992199319941995119961997

11995 expenditure figures on an accrual accounting basis. Previous years' figures are on a cash basis.

2Accommodation supplement replaced accommodation benefit from 1 July 1993.

3Funeral grants replaced Lump Sum After Death on 1 August 1991.

Source: Department of Social Welfare

 $(000)
Accommodation supplement2180,115210,834351,319491,437561,794661,559
Tenure protection allowance   16,67517,06115,704
Child care subsidy15,73338,61938,09331,42834,28137,603
Handicapped child allowance13,49515,12016,78318,65321,73525,642
Disability allowance70,03688,226115,858130,486149,314178,797
Special benefits55,32364,18767,51883,01586,79274,332
Special needs grants 19,61337,04645,09450,31040,882
Funeral and tangihanga grants34,4404,1464,6444,9085,5255,513

Living on the DPB in Carterton is more affordable than in Wellington for Merlene Chambers and daughter Serene.

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 11,567 training benefits being paid as at 30 June 1997, an increase of 178 on the previous year.

Transitional retirement benefit. The transitional retirement benefit is intended to help those adversely affected by the change in qualifying age for New Zealand superannuation from 60 to 65. It was introduced on 1 April 1994. At 30 June 1997 there were 7,958 people receiving a transitional retirement benefit, an increase of 88 on the previous year.

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 28.2: Taxation), but is delivered to beneficiaries through the social welfare system.

Child care subsidy. The child care subsidy programme provides financial assistance to low income families with dependent children to obtain access to pre-school child care services. At 30 June 1997 there were 40,865 approved applications for subsidies, 6,078 more than at 30 June 1996.

Orphans and unsupported child benefits. This benefit is payable to a person caring for an orphan or an unsupported child. As at 30 June 1997 there were 4,816 benefits being paid, an increase of 154 from the previous year.

Community services card. The community services card is an entitlement card which people on low income can use to obtain discounts on doctor's fees, prescriptions and hospital outpatient charges. As at 30 June 1997 there were 1,093,539 current cardholders, 29,065 more cardholders than at the same time the previous year.

New Zealand superannuation

The current New Zealand superannuation scheme provides $252.82 a week for a single person and $379.04 a week for a married couple (or $360.74 if one spouse does not qualify). It is subject to normal taxation.

A tax surcharge was 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 gave an effective marginal tax rate of 53 percent for the majority and 58 percent to some. The surcharge was abolished from 1 April 1998.

At 30 June 1997 there were 452,759 people receiving New Zealand superannuation. The qualifying age is being gradually raised from 60 to 65 by April 2001.

People who wish to supplement their New Zealand superannuation when they retire can contribute to private superannuation or insurance schemes. Private superannuation and insurance is described in more detail in section 24.3: Insurance and superannuation.

Veterans pension. This is paid at the same rate as New Zealand superannuation, and is not income tested but is taxable. A total of 7,045 people received veterans pensions as at 30 June 1997, 486 more than at the same time the previous year. This pension replaces the former war service pension, war veterans allowance and economic pension.

Other assistance

Disability allowance. This is an income-tested allowance payable to people with special costs arising from a disability or personal health need. As at 30 June 1997 there were 158,557 current allowances, an increase of 21,238 on the previous year.

Handicapped child allowance. A non-taxable allowance payable to the parent or guardian of a seriously physically or mentally handicapped child being cared for at home. There were 15,941 children receiving an allowance as at 30 June 1997, with 3,958 applications granted in the year ending 30 June 1997, an increase of 459 from the previous year.

Special benefit. This is short-term assistance for people who have on-going expenses related to special or unusual circumstances or financial commitments. This benefit was held by 24,287 customers as at 30 June 1997, a decrease of 8,595 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. Grants are available to non beneficiaries as well as beneficiaries, though since 1 July 1996 a recoverable grant can only be made to non beneficiaries under the recoverable assistance programme. For the year ending 30 June 1997, 373,119 grants were issued, a decrease of 143,555 from the previous year.

Advance payments of benefit. Advance payments are available to all beneficiaries to pay for essential needs which they would otherwise be unable to afford. From 1 July 1996, a new scheme—recoverable assistance programme has been introduced aiming at providing recoverable assistance to non beneficiaries. For the year ending 30 June 1997,330,454 advance payments had been granted, a decrease of 6,595 on the previous year.

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.

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.

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.

Support of children by non-custodial parents

Child support. The responsibility to collect child support payments from 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 (see section 28.2: Taxation).

War disablement pensions

The war pensions programme provides pensions and concessions for those who saw service in the two world wars, Korea, Vietnam, The Gulf, Angola and Bosnia. 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.

Table 7.6. WAR PENSIONS AT 30 JUNE 1997

Type of pensionNumber in forceAnnual value1

1The annual values have been calculated from the amount being paid in the fortnight ended 30 June, multiplied by 26. Pension payments are relatively constant throughout the year.

2Disablement and dependents pensions for police are recorded under police pensions.

Source: Department of Social Welfare

  $(000)
Disablement pensions221,30967,133
Dependents pensions4,21823,357
Police35110

The war pensions programme comprises:

War disablement pension. This pension provides compensation for disablement. Approximately 85 percent of those receiving this pension served in World War 2.

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 90 percent of those people on dependents pension, relate to service during World War 2.

War pensions are increasingly related to the elderly section of the population and have remained constant over recent years.

Veterans pension. From 1 April 1990 a veterans pension (a social security benefit) replaced the economic pension, war service pension and veterans allowance.

Social security agreements

Negotiations with Italy are nearing completion.

Australia. Under the social security agreement between Australia and New Zealand invalids, widows, sole parents and the aged who have resided in one country for 10 years or more, are entitled to pensions/ benefits in the other. New Zealand and Australia reimburse each other for pensions/ benefits paid to former residents if they have less than 10 years' residence in the country where they are receiving the pension/benefit. However, Australian Age pensions and New Zealand Superannuation are reimbursable for the lifetime of the pension.

Greece. A social security agreement between New Zealand and the Hellenic Republic came into force on 1 April 1994. Under this agreement New Zealand superannuation, veterans pension, funeral grants, orphans benefit, widows benefit, invalids benefit and domestic purposes benefits for widowers are paid to former New Zealand residents living in Greece. The rate of payment is determined, proportionately, in accordance with the period of the person's residence in New Zealand. Analogous Greek pensions are paid to people who have contributed to the Greek social security scheme who are living in New Zealand.

The Netherlands. Under the social security agreement between New Zealand and the Netherlands, New Zealand superannuation, veterans pension, widows benefit, invalids benefit and domestic purposes benefits for widowers are paid to former New Zealand residents living in Holland. The rate of payment is determined, proportionately, in accordance with the period of the person's residence in New Zealand. Analogous Netherlands pensions are paid to people who have contributed to the Netherlands social security scheme who are living in New Zealand.

Republic of Ireland. A social security agreement between New Zealand and Ireland came into force on 1 March 1994. Under this agreement New Zealand superannuation, veterans pension, orphans benefit, widows benefit, invalids benefit and domestic purposes benefits for widowers are paid to former New Zealand residents living in Ireland. The rate of payment is determined, proportionately, in accordance with the period of the person's residence in New Zealand. Analogous Irish pensions are paid to people who have contributed to the Irish Social Security scheme who are living in New Zealand.

United Kingdom. The Social Security (Reciprocity With United Kingdom) Order 1990 provides for reciprocity in a comprehensive range of benefits. For the purposes of an 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 the applicant must meet the entitlement criteria for the benefit, such as eligibility criteria concerning age or medical incapacity. A change to the paying arrangements for United Kingdom pensioners saw pensions paid directly to pensioners from 1 April 1996. The Special Banking Option for United Kingdom pensioners living in New Zealand was introduced on 1 April 1997. Those people wishing to take up this option consent to have their United Kingdom pensions paid to a special bank account accessible only by Income Support. In return, pensioners receive the full rate of New Zealand benefit or pension. About 32,000 British pensioners live in New Zealand. Approximately 20,000 of these pensioners have joined the Special Banking Option.

Jersey and Guernsey. A social security agreement with Jersey and Guernsey came into force on 1 April 1995. Under this agreement New Zealand superannuation, veterans pension, widows benefit, invalids benefit and domestic purposes benefit for widowers are paid to former New Zealand residents living in Jersey or Guernsey. The rate of payment is determined proportionately in accordance with the period of the person's residence in New Zealand. Analogous Jersey and Guernsey pensions are paid to people who have contributed to the Jersey and Guernsey social security schemes, who are living in New Zealand.

Canada. A new social security agreement with Canada came into force on 1 May 1997. Under this agreement New Zealand superannuation, veterans pension, widows benefit, invalids benefit and domestic purposes benefit for widowers are paid to former New Zealand residents living in Canada. The rate of payment is determined proportionately in accordance with the period of the person's residence in New Zealand. Analogous Canadian pensions are paid to people who have contributed to the Canadian social security scheme who are living in New Zealand.

“If you want your kids to behave ... behave yourself.” Members of the public at a display of CYPFS parenting information exhibited in banks and the Post Office in Nelson. The displays, including multilingual parenting videos, were part of Family/Whanau month, November 1997.

Denmark. A new social security agreement with Denmark came into force on 1 October 1997. Under this agreement New Zealand Superannuation, veterans pension, widows benefit and domestic purposes benefit for widowers are paid to former New Zealand residents living in Denmark. The rate of payment is determined proportionately in accordance with the period of the person's residence in New Zealand. Analogous Danish pensions are paid to people who have lived in Denmark, or who have contributed to the Danish social security scheme who are living in New Zealand.

General portability. People receiving New Zealand superannuation or veterans pension are able to receive 50 percent of their benefit while living overseas, provided that they were ordinarily resident in New Zealand on the date of application and are not intending to live in a country which has a social security agreement with New Zealand.

Special portability arrangement. People eligible to receive New Zealand superannuation or veterans pension may receive up to 100 percent of the core rate of benefit while they are living in the Cook Islands, Niue or Tokelau. The rate of payment is determined, proportionately, in accordance with the period of the person's residence in New Zealand.

7.2 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 (NZCFA) was established in May 1992 and is part of the Department of Social Welfare. It is responsible on behalf of the government for allocating and delivering funding to local community and iwi-based social and welfare service providers throughout New Zealand.

The service sectors funded are:

Families in need of support—includes counselling/therapy, family/whanau resource development, parenting programmes, youth programmes and residential care.

Community welfare—includes advice and information such as Citizens Advice Bureaux, refuges and emergency housing.

People with disabilities—for the provision of vocational opportunities and employment support for people with disabilities.

The agency administers programmes under the Children, Young Persons and Their Families Act 1989 and the Disabled Persons Community Welfare Act 1975. The agency is also responsible, under the 1989 act, for the approval of child and family support services, iwi social services, cultural social services, and community services for families. In addition it funds a wide range of vocational services for people with disabilities, ranging from daily activities and life skills development to sheltered vocational opportunities.

COMMUNITY FUNDING
NZ Community Funding Agency
programmes by sector

Community Funding Agency programmes, by sector
 199519961997
Source: Department of Social Welfare
 $(million)$(million)$(million)
Families in need of support43.652.754.8
Disability services39.941.045.2
Community welfare10.78.59.1

Funding is allocated by the NZCFA through the yearly services planning process, complemented by the national needs indicator index, on the basis of clearly identified need on both a national and local basis. The index uses census data to ensure that similar needs and services are resourced equitably on a national basis. It gives a population-based weighting to ten factors—ethnicity, unemployment, population on income support, single parents with dependent children, multi-family households, regional isolation, cost of housing, infant mortality, qualifications at school leaving age and teenage pregnancy.

The agency consults with service providers and gathers data from a variety of sources to develop a detailed picture of the needs of each area. The services of national organisations are also assessed. Once all of the information has been compiled and funding allocated, contracts for service provision are drawn up between the agency and the providers of the service. The contracted service is regularly evaluated through the approval and monitoring process.

During the 1996-97 financial year, the agency allocated $109 million directly to approximately 1,800 service providers.

NZCFA has funded the development of Family Service Centres around the country. These centres provide an integrated approach to parenting, education and health programmes and play an important part in helping families at risk break their cycle of disadvantage. Underpinning the agency's work is the government's commitment to develop culturally-appropriate services for Maori and Pacific Islanders. Following a process of consultation and development work by the agency, iwi social service providers are now being assisted to take responsibility for the training and care of Maori children, who were once in the care of the Children and Young Persons Service. NZCFA contracts for social and welfare services on behalf of government departments.

The Community Funding Agency has offices in eight areas: Tai Tokerau (Northland), Auckland, Central North Island, East Coast/Gisborne/Hawke's Bay, Taranaki/Manawatu, Wellington/Nelson/Marlborough, Canterbury/West Coast and Otago/Southland. Each area has a central office in the major city or town and staff are based (wherever possible) in their communities. NZCFA also operates 19 sub-area offices. The agency's national office is in Wellington.

Children, Young Persons and Their Families Service

Children, Young Persons and Their Families Service (CYPFS) administers the Children, Young Persons, and Their Families Act 1989 which relates to children and young persons who are in need of care and protection or who offend against the law:

This act aims to:

  • advance the well-being of families and the well-being of children and young persons as members of families, whanau, hapu, iwi, and family groups.

  • make provision for families, whanau, hapu, iwi, and family groups to receive assistance in caring for their children and young persons; and

  • make provision for matters relating to children and young persons who are in need of care or protection or who have offended against the law to be resolved, wherever possible, by their own family, whanau, hapu, iwi or family group.

CYPFS also supplies a range of adoption and post-adoption related services.

Northland CYPFS workers held a one-day strike over protracted employment contract negotiations, October 1997.

Care and Protection Services

The figures represent the number of reports accepted for investigation, not the number of contacts made with the service about care and protection matters. The service lost the capacity to record the total number of reports received with a change of recording system at the beginning of the year to June 1995. From the beginning of the year to June 1997 data is available on:

  • number of reports made about care and protection issues.

  • number dealt with at intake—i.e. service provided at intake, or matter referred to another agency for assistance.

  • number accepted for investigation or exploratory interview by a social worker.

The service was uncomfortable with the categorisation of reports by problem type before investigation and assessment and like other administrations around the world has been concerned to see a clearer distinction made between those reports which allege child abuse and neglect on the one hand (and require an investigative response), and those which relate more to the problem behaviours or relationships of children, young persons and their families (which require needs assessment rather than investigation). There has been a need, also, to clarify the service's response requirements in relation to different types of reports.

Notifications accepted for investigation or exploratory interview are categorised as follows:

Response categoryResponse requirement
CriticalSame day
Very urgentWithin 2 days
UrgentWithin 7 days
Low urgencyWithin 28 days

To clarify the distinction between child protection and child welfare concerns, the service reports on the following categories where the reports on investigation or interview were found to have substance: physical abuse; sexual abuse; emotional abuse; neglect; self-harm behaviour; problem behaviour/relationship difficulty; and not found.

The reconfiguration of the data enables CYPFS to report whether the situation alleged in notifications was found (known internationally as the substantiation rate) and generally the service's data is more comparable with that of other administrations.

Care and protection notifications are the key entry point to care and protection services.

CYPFS places a priority on responding to care and protection notifications where there is an imminent threat to safety, or the child is abandoned or otherwise left alone in circumstances where they are at risk. Reports of serious physical abuse require a response within 24 hours. A standard of all notifications being responded to within seven days was not met, primarily with those notifications relating to the intake category—problem behaviours. Rarely do these cases constitute an imminent threat to safety, but they do require investigation and follow up in due course.

Family/whanau agreements. Where family problems are identified following an investigation into a care and protection notification, CYPFS responds by either referring the matter on to another agency, providing direct services through a voluntary family/whanau agreement, or providing services as an agreed outcome from a statutory family group conference.

Table 7.7A. NOTIFICATIONS RECEIVED 1995 AND 19961

 Year ended 30 June
19951996

1Notification categories changed between 1994 and 1995. Figures for 1993 and 1994 are in the 1996 Yearbook.

Source: Social Work Information System

Physical/sexual abuse (in family)6,7406,482
Physical/sexual abuse (non family)2,0241,899
Care concerns/emotional abuse11,19510,849
Child/young person with problem behaviour4,3313,816
        Total number of general care and protection notifications24,29023,046

Table 7.7B. CARE AND PROTECTION NOTIFICATIONS: Year to 30 June 1997

Received/accepted/urgencynumberFindings of completed investigationsnumberpercent
Source: Children, Young Persons and Their Families Service
Care and Protection (C&P) intake Physical abuse1,94412.6
reports23,246Sexual abuse1,57910.2
C&P notifications accepted for Emotional abuse1,3328.6
investigation18,467Neglect2,50816.2
Critical—Immediate response (same day)2,585Self harm/Suicidal1871.2
Very urgent (within 2 days)1,976Behavioral/Relationship difficulties3,37221.8
Urgent (within 7 days)7,695 
Low urgency (within 28 days)6,184Not found4,55429.4
Other27Total15,476 

A family/whanau agreement may be entered into where intervention by the service is agreed to by the family on a voluntary basis. Family/whanau agreements may be signed for a three-month period, renewable once. Each agreement must be reviewed.

The number of family/whanau agreements signed in the year to June 1997 was 2,137, a significant decrease from the number of agreements contracted in previous years (3,015 in 1995, 3,204 in 1996).

Family group conferences. Where a child or young person is considered in need of care or protection and a family/whanau agreement is not considered appropriate, intervention may occur through the statutorily-defined processes of a family group conference (FGC).

An FGC is held when an authorised agent, usually but not always a social worker, makes a referral to a Care and Protection Co-ordinator. In the FGC a Care and Protection Co-ordinator brings together members of the child's family/whanau, or family group, with others who have an active involvement or commitment to the welfare of the child. The function of the conference, if they agree that care and protection concerns exist, is to make recommendations and plans to address those concerns. All ongoing FGC plans must be reviewed. They are often reviewed by a reconvened FGC.

Table 7.8. CARE AND PROTECTION FAMILY GROUP CONFERENCES (FGCs)

 Year ended 30 June
199419951996

1A referral is made when a matter is reported to a care and protection co-ordinator.

2There may be more than one FGC held per child or young person for any referral. However, some referrals do not result in an FGC.

Number of referrals made to care and protection co-ordinator15,3154,3503,779
Number of FGCs held24,9444,8624,799
Number of care and protection FGCs held that resulted in ongoing service by NZCYPS3,1422,7622,692
 Year ended 30 June
199519961997

3Outcomes and agreements exceed the number of accepted referrals because: 1 Referrals accepted does not include “reconvened" FGCs. 2 Outcomes (and agreements) include a number of FGCs for which referrals were accepted in the previous year.

Source: Children, Young Persons and Their Families Service

Number of referrals accepted by C&P co-ordinator34,3503,7792,826
Number of FGC outcomes34,8624,7993,688
Number of FGCs which reached agreement on decisions3..4,3333,274
Percentage of outcomes reaching agreement..90.388.8

The data related to Family Group Conferences for the year ended 30 June 1997 shows a reduction in all areas with a decrease of 25.2 percent in the number of referrals accepted compared to the previous year, and a similar decrease in the number of FGC outcomes.

Plans and court orders. The act provides for a range of orders relating to the care, custody, and guardianship of children and young persons. The service uses these orders, including the interim orders, to secure a child or young person's care while working to address the problems of their family/whanau or family group.

Orders made by the court usually involve the custody or guardianship of children and young persons, and the provision of ongoing support or services by CYPFS.

Table 7.9. CARE AND PROTECTION PLANS AND COURT ORDERS MANAGED

 Year ended 30 JuneIn force at 30 June 1997
199519961997

Note: A child may be subject to more than one order, under the provisions of the Children, Young Persons and Their Families Act 1989.

Source: Children, Young Persons and Their Families Service

s29: FGC plans  1,7831,182
s74: Counselling order26282620
s78: Custody order pending determination828871760544
s86: Service order595580282718
s87: Restraining order19623667176
s91: Support service469494236520
s101: Custody orders1,5101,7027812,256
s102: Interim custody orders413357182134
s110: Guardianship orders (sole or additional)1,5141,2274651,726
s140: Extended care agreements  210159
s142: Agreement for care of disabled child/young person  427
Family Group Conference2,4972,943  
        Total8,0488,4384,7967,462
Number of children and young persons for whom orders were completed7,0875,238  

Emergency actions. This group of actions is part of the investigation / assessment process following a notification. Actions cover situations where emergency action is taken to provide care or protection for a child or young person. The actions range from warrant action to provide for immediate safety needs of the child or young person, through to less intrusive actions to provide care (with agreement) while longer-term solutions are explored.

Table 7.10. EMERGENCY ACTIONS CARRIED OUT

Type of actionYear ended 30 June
199519961997

1New statistic for 1997.

Source: Children, Young Persons and Their Families Service

s39: Place of safety warrant478339364
s40: Warrant to remove child or young person--311
s42: Police search without warrant553245
s48: Unaccompanied child281376377
s139: Temporary care agreement1,6341,5681,669
Total2,4482,3332,468

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, provided under the Children, Young Persons and Their Families Act 1989 and the Criminal Justice Act 1985, 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.
    The service has contracted with the Minister of Social Welfare to provide the following:

  • Public awareness services, including public education activities that promote the well-being of children, young persons and their families. These services are provided under the Children, Young Persons and Their Families Act 1989.

  • Risk identification and management, including the investigation and management in compliance with the law of all situations where children and young persons are reported at risk of abuse, neglect or deprivation, or exhibit harmful behaviour. 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.

  • Family resolution services, including the management of resolution processes by means of agreements with families and statutory family group conferences, and giving effect to plans and orders of conferences and courts. These services are provided under the Children, Young Persons and Their Families Act 1989, and the Criminal Justice Act 1985.

  • Residential and caregiver services, including the provision of accommodation and care services for the care and custody of children and young persons who have been arrested or remanded by courts, or who are in the Director-General's custody by order or agreement. These services are provided under the Children, Young Persons and Their Families Act 1989 and the Criminal Justice Act 1985.

  • Adoption and information services, including the management of adoption, including inter-country adoptions, and the provision of information to the parties of adoption about each other, in compliance with the law. These services are provided under the Adoption Act 1955 and the Adult Adoption Information Act 1985.

Table 7.11. ARRESTS AND POLICE CUSTODY

 Year ended 30 June
199519961997
1The consent of the Director-General is required for arrested children and young people to be held in police custody longer than 24 hours.
  number 
Arrests (children and young persons)1,018553411
Held in Police custody (children and young persons)531347273
Young persons in Police custody for more than 24 hours1899581

Table 7.12. YOUTH JUSTICE REFERRALS AND FAMILY GROUP CONFERENCES (FGCs)

 1994199519961997
Source: Children, Young Persons and Their Families Service
Referrals for FGC accepted/directed7,6245,0226,802R6,785
Total youth justice FGCs held7,0836,9355,735 
Youth Justice FGC outcomes  6,725R6,618
FGC which reached agreement 5,7355,720 

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 offender's behaviour. The effort is directed towards diverting the young person from the formal court system.

Only those referrals actually accepted for FGC are recorded. However, it is common for further offences to come to light once the FGC is under way. A new offence requires a new FGC.

“Refuge riders" Rhodda Labone and Inge Junge deliver linen to women's refuges in Ponsonby, Auckland.

ADOPTIONS

Youth learning confidence to meet outdoor challenges, as part of the Prince of Wales Trust programme at Otaki Forks, May 1997.

Residential care. For serious youth justice and care and protection cases the service provides residential services in Auckland (Weymouth), Hamilton (Dey Street), Wellington (Epuni), Christchurch (Kingslea) and Dunedin.

The number of admissions to the service's residential programmes has shown a steady increase since 1992, placing great pressure on the residential capacity. The reduction in admissions over the last two years reflects two factors:

  • a 40 percent increase (since 1996) in the number of “Supervision with residence" orders, resulting in an increase average length of stay;

  • the service's efforts to minimise the use of residential and out-of-family care in favour of community and in-family based programmes in line with the principles of the CYP&F Act and preferred professional practice.

Table 7.13. ADMISSIONS TO RESIDENTIAL CARE1

 199219931994199519961997

1Year ended 30 June.

Source: Children, Young Persons and Their Families Service

Number of admissions7129231,0541,5101,3371,050

Adoption

The Adoption Information and Services Unit of the CYPFS is responsible for statutory adoption services.

Adoption placement services. These include the education and preparation of prospective adoptive applicants, counselling of birthparents, approving placements, and reporting to the Family Court. They also include processing and monitoring inter-country adoption placements; as well as providing post-placement information and support to younger adopted people and their families.

There were increases in the number of new inquiries for local adoption to 1,253; in the number of adoptions completed; and in the number of inter-country adoptions (70) carried out under New Zealand legislation. Inter-country adoptions by New Zealand citizens in overseas courts (under section 17 of the Adoption Act 1955) are reported on by the Department of Internal Affairs Citizenship Division and are not included in table 7.14.

Adult adoption information services include the provision of information and mediation to birthparents, and the provision of information and counselling to adult adopted people.

1 March 1996 was the 10th anniversary of the introduction of the Adult Adoption Information Act 1985, signalling the expiry of vetoes placed at the time of the act's introduction. People who wished to have their veto continue were required to apply for it to be renewed; the flow-on effect was a doubling of the demand for veto counselling services.

Table 7.14. CHILDREN PLACED FOR ADOPTION

 199319943199531996319973

1This category of adoption is no longer identified separately and will not be reported in the future—now included in the “strangers" reporting figure.

2A new reporting category relating to inter-country adoptions effected in New Zealand under New Zealand legislation.

3Year ended 30 June.

Source: Department of Social Welfare

Final adoption orders made369683640540661
Adoptions reported on by CYPFS:
Adoptions by:
       Strangers113183124114131
       One parent and spouse129221240169179
       Relatives76151146177163
       Close friends1982518-
       Foster parents152412628
Inter-country adoption under NZ legislation2    70
       Total adoptions handled/reported on by CYPFS:342587547484571

Table 7.15. SERVICES PROVIDED TO IMPLEMENT THE ADULT ADOPTION INFORMATION ACT 1985

 1993119942199521996219972

11 January to 31 May 1993. June not available.

2Year ended 30 June.

Source: Department of Social Welfare

Birthparents placing vetoes9346912660
       renewing vetoes   35177
       removing vetoes51514102
Adopted people placing vetoes926361730
       renewing vetoes   5113
       removing vetoes814817-
Birthparents requesting     
       identifying information126787621650572
Application for a copy of original birth certificate6231,8491,5971,5801,925

Requests for adult adoption information have again remained high, as shown by the number of applications from adult adopted people for a copy of their original birth certificate. There has also been a significant increase in the number of requests for personal information under the Privacy Act and the Official Information Act, from 533 last year to 1,822 this year.

A Christmas card produced jointly by CYPFS, Relationship Services and the CAB. The Christmas holiday season has been seen as a time of family stress.

Social Policy Agency

The Social Policy Agency provides the government with policy advice on a range of major social and welfare issues, and advises on welfare policy change. The agency has a staff of about 90 and annual expenditure of about $7.7 million.

During the year the agency developed four key policy areas that support the department's objectives to strengthen families; to provide positive income support and incentive-oriented benefits; to develop positive ageing strategies; and to promote government ownership.

Also operating within the Social Policy Agency are the Family Violence Unit and the Senior Citizens Unit which provides policy and support to the Minister of Senior Citizens and assists the minister in advocating on behalf of senior citizens.

TRITEC

The Department of Social Welfare's on-line computing services and information technology services are provided by TRITEC. The main benefit processing system is SWIFTT (Social Welfare Information for Tomorrow Today). On 30 June 1997 TRITEC was sold to EDS (New Zealand) Limited.

Contributors

  • 7.1-7.2    Department of Social Welfare.

Special articles

Department of Social Welfare; Office of the Retirement Commissioner; Cannons Creek Fanau Centre; New Zealand Council of Social Services; National Collective of Independent Women's Refuges Inc,; Citizens Advice Bureaux.

Further information

Biannual overview of benefit trends. Department of Social Welfare, December 1997.

Report of the Department of Social Welfare (Parl paper E. 12).

Report of the Office of the Retirement Commissioner (Parl paper E.62).

Statistics Report. Department of Social Welfare (annual).

Chapter 8. Health and safety

Tracey Simons protects her 11-month-old daughter Hannah from the sun at Oreti Beach.

The government's goals for the health and disability sector are:

Goal 1 : to improve the health of people in New Zealand

Goal 2 : to put people at the centre of service delivery

Goal 3 : to make the best use of resources available for health and disability services.

8.1 Organisation of health services

The New Zealand health system is made up of public, private and voluntary sectors which interact to provide and fund health care. Over 75 percent of health care is publicly funded.

Ministry of Health. The ministry provides policy advice to the government on health and disability support services. It also negotiates, manages and monitors funding agreements with the Health Funding Authority and service providers, and provides services to Ministers.

Health Funding Authority. There is one national funder, the Health Funding Authority, in New Zealand which funds personal health, disability support and public health services. The Health Funding Authority was established on 1 January 1998 and replaces the Transitional Health Authority which managed the transition from the four regional health authorities (RHAs): Northern, Midland, Central and Southern, to a single national health funder.

The three primary functions of the Health Funding Authority are:

  • to monitor the need for personal health, disability support and public health services for New Zealanders;

  • to fund health and disability services for people; and

  • to monitor the performance of providers with whom the Transitional Health Authority enters into purchase agreements.

Personal health services are provided to people for health purposes. Disability support services involve care, support, and promote independence for people with disabilities. Personal health services tend to be shorter term in nature and bring about an improvement or stabilisation of a health condition. Disability support services are generally longer term. Public health services, on the other hand, aim to prevent disease, prolong life and promote health by such activities as ensuring the safety of food and water. Successful public health programmes will minimise the risk of disease and reduce the need for hospital and health services. The Health Funding Authority is responsible for deciding what they will purchase within each service category, subject to the government's requirements.

Crown Company Monitoring Advisory Unit (CCMAU). CCMAU, as part of its responsibilities to shareholding Ministers of Crown companies, advises the Ministers of Health and Finance on the ownership monitoring aspects of Crown health enterprises (CHEs). The advice includes setting ownership objectives and targets for CHEs, the Crown's investment in this sector and on the impact on CHEs of proposed health policy options. It also monitors and advises ministers of CHE performance against these objectives and targets; and manages for ministers the CHE director appointment and performance assessment process.

Crown health enterprises1. There are 23 Crown health enterprises. Individual Crown health enterprises generally provide health care and disability support services based around a 24-hour acute care tertiary (high technology) hospital.

National Advisory Committee on Health and Disability (known as the National Health Committee). The committee advises the government on the content, quality and terms of access to publicly-funded public health, personal health and disability support services within a resource-constrained environment. It also provides independent public health policy advice.

1Legislation is proposed to be introduced to Parliament that will recommend that the name Crown Health Enterprise be changed to Hospital and Health Services from 1 July 1998.

The committee seeks to ensure that maximum benefit is obtained from limited resources by developing guidelines for best practice, based on the systematic evaluation of evidence. This results in clear understanding as to the circumstances in which services will be publicly funded.

The Residual Health Management Unit manages residual assets and liabilities of the former Area Health Boards and provides finance to Crown health enterprises (see Chapter 28).

Health Research Council of New Zealand. The Health Research Council of New Zealand was established by the Health Research Council Act 1990, and is the major government agency purchasing and co-ordinating health research in New Zealand. Health research is also funded by other government ministries, public and private organisations and charitable trusts. The council's mission is to improve human health by promoting and funding health research. Research funded by the council covers a spectrum stretching from basic biomedical research to applied public health research. The act requires the council to support research initiatives in Māori health, and set guidelines for health research ethics.

The functions of the Health Research Council include:

  • advising the Minister of Health on national health research policy;

  • fostering the recruitment, education, training and retention of a health research work force in New Zealand;

  • initiating and supporting health research; and

  • promoting and disseminating the results of health research in ways which contribute to health science, health policy and health care delivery.

In 1997, the HRC's funding base was changed from Vote Health to Vote Research, Science and Technology, and it became a full-cost purchasing agency. From 1998 this enabled health research groups to be paid overheads as well as direct costs such as salaries and equipment, bringing the sector in line with other research sectors.

The government funding for the council's work in 1997-98 was $37.2 million. The council's priority health research areas are Māori, child and mental health, and the social and economic determinants of health and disease.

The HRC is also responsible for accrediting regional and institutional ethics committees which assess the ethics of health research, as well as the assessment of gene therapy and clinical trials.

The Malaghan Institute of Medical Research. The Malaghan Institute of Medical Research was established in 1979 as an independent medical research institute (formerly known as the Wellington Cancer and Medical Research Foundation). It was renamed in 1986 to recognise the contribution of Len and Ann Malaghan. The institute is a charitable trust with the goals of improving the prevention and treatment of disease and disseminating and teaching that knowledge. It has 25 full-time staff and is based at the Wellington School of Medicine.

Diseases studied at the Malaghan are asthma, cancer and tuberculosis. The institute collaborates with research groups both nationally and internationally. A major focus of the institute is on the provision of quality post-graduate (PhD) degrees through the Wellington School of Medicine (University of Otago). It is funded by contestable research grants and by contributions from corporate sponsors, private benefactors and bequests.

Health expenditure

Table 8.1. REAL HEALTH EXPENDITURE1

Source of funding1989-901990-911991-921992-931993-941994-951995-961996-97

1CPI deflated.

2Expressed in 1996-97 dollars.

3$7,871 million when transfers from other votes are included.

Source: Ministry of Health

 $(million)2
Public4,7994,8794,8634,8234,9575,0755,1635,760
Private1,0241,0541,2911,4701,4971,5671,6391,689
    Total5,8235,9336,1546,2936,4546,6426,80237,4493

Health expenditure in New Zealand amounted to an estimated $7,449 million for the financial year ended 30 June 1997. This represented 7.8 percent of New Zealand's gross domestic product and was equivalent to $2,040 expenditure per annum per head of population. An estimated 77.3 percent of this expenditure came from public sources.

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 collects workforce data for the different professional groups.

The role of registration boards/councils is to monitor entry standards for their relevant profession, and to register and discipline practitioners.

Doctors. The Medical Council of New Zealand is a statutory body constituted under the Medical Practitioners Act 1995. The principal purpose of the act is to protect the health and safety of members of the public by prescribing or providing for mechanisms to ensure that all medical practitioners are competent to practise medicine. The council has 10 members and includes lay participation. The main functions of the council are:

  • registration—the council must authorise the registration of all medical practitioners working in New Zealand. Doctors who complete their medical training in countries other than New Zealand or Australia must satisfy the council of their entitlement to registration by examination and/or assessment before registration is granted.

  • medical education—which involves the accreditation of medical school courses and curricula and, in association with the Australian Medical Council, the accreditation of Australian medical schools. It also approves posts for the education, training and experience of interns in their seventh year, the mandatory period before general registration. In addition it must promote vocational and continuing medical education and training in New Zealand.

  • fitness to practise—to consider cases of medical practitioners who (because of some mental or physical condition) may not be fit to practise.

  • professional standards—the legislation provides specific authority for the council to review the competence of doctors and to implement investigation and remediation as appropriate, including, if necessary, imposing conditions on annual practising certificates or registration.

  • discipline—the 1995 act established a single Medical Practitioners Disciplinary Tribunal which is an autonomous body separate from the Medical Council. However, the Medical Council receives complaints and must liaise with the Health and Disability Commissioner and, as appropriate, appoint Complaints Assessment Committees.

The number of medical practitioners with general or probationary registration at 30 June 1997 was 12,399, with 8,317 holding annual practising certificates. A further 419 overseas-trained doctors were working on temporary registration.

Dentists. The Dental Council is governed by the Dental Act 1988. It registers dentists, promotes high standards of professional education and conduct among dentists, and provides administration services for the Dentists Disciplinary Tribunal. The number of dentists on the register at 30 June 1997 was 2,058.

The Dental Act 1988 provides for a disciplinary structure with independent complaints assessment committees and a Dentists Disciplinary Tribunal, comprising both dentists and lay members. There were no tribunal hearings in the year to June 1997 (four dentists appeared before the tribunal in 1996; one complaint was dismissed).

Professional studies in New Zealand are provided at the School of Dentistry, University of Otago.

Nurses and midwives. The Nursing Council of New Zealand, Te Kaunihera Tapuhi o Aotearoa, is constituted under the Nurses Act 1977. Its primary function is the registration of nurses and midwives and enrolment of enrolled nurses. The council sets minimum standards for registration and enrolment; programmes leading to registration and enrolment; conducts examinations; approves schools of nursing and midwifery (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, midwives and a roll for enrolled nurses. As at 22 October 1997, 45,740 nurses and midwives held annual practising certificates.

All nurses and midwives are educated through a three-year degree course leading to registration as a comprehensive nurse or midwife. Some polytechnics offer shortened courses for graduates and enrolled nurses, which lead to comprehensive registration and midwifery registration. Post-basic education ranges from regular in-service and short clinical courses to diploma and transition to degree courses at polytechnics; certificates and degrees to doctorate level are offered at Massey and Victoria universities.

Midwives visit Cathy Scott and newborn Katie Anne on International Midwives Day, 5 May 1997.

The Nursing Council is extending its professional role in response to the wishes of the nursing and midwifery professions. It has distributed a code of conduct, and is developing requirements for competence-based practising certificates. Complaints about nurses and midwives are referred by the Health and Disability Commissioner. For the year ended 31 March 1997 the Nursing Council heard 12 disciplinary matters.

There was public debate in early 1995 on the cultural safety component of nursing education, and hearings on the matter were held by a Parliamentary select committee. In July 1995 the council set up a review and evaluation committee which received submissions and made recommendations that were widely discussed. In 1996 the council released new guidelines for cultural safety in nursing and midwifery education, and is working with educational institutions to monitor implementation. The council has reported to the Parliamentary select committee on the implementation of the new guidelines.

The council will host the International Regulatory meeting for nurses and midwives in early 1999.

Psychologists. The Psychologists Board is constituted under the Psychologists Act 1981. The board is concerned with the registration of psychologists and discipline of registered psychologists. At 30 June 1997 there were 1,526 registered psychologists, with 1,000 holding annual practising certificates. Current legislation only requires registration of psychologists for those psychologists practising in the state services or licensed institutions under the Mental Health (Compulsory Assessment and Treatment) Act 1992.

Physiotherapists. The Physiotherapy Board is constituted under the Physiotherapy Act 1949. The board registers applicants for physiotherapy practice, regulates the conduct of those registered under the act and issues ultrasonic therapy licences.

Four-year, full-time courses in physiotherapy are offered at the University of Otago and the Auckland Institute of Technology. Successful completion of these qualifications is required for registration. At 30 June 1997 there were 4,648 registered physiotherapists with 2,308 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.

The three-year full-time training courses are conducted at the Auckland Institute of Technology and the Otago Polytechnic. Successful completion of a qualification from one of the institutions is required for registration.

At 30 June 1997 there were 2,315 registered occupational therapists, with 1,192 holding annual practising certificates.

Dietitians. The Dietitians Board is constituted under the Dietitians Act 1950. The post-graduate training course for dietitians is the responsibility of the University of Otago. Students are usually already qualified in either ‘home’, ‘consumer’ or ‘applied’ science.

At 30 June 1997 there were 924 registered dietitians with 341 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 optometrists and dispensing opticians.

At 30 June 1997 there were 662 registered optometrists with 407 holding annual practising certificates and 110 registered dispensing opticians with 76 holding annual practising certificates. Optometrists are trained at the University of Auckland in a four-year full-time degree course. Dispensing opticians are trained through a two and a half year correspondence course.

Podiatrists. The Medical Auxiliaries Act 1966 provides 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 Bachelor of Health Science (Podiatry) degree which is the qualification recognised for registration.

At 30 June 1997 there were 399 registered podiatrists, with 225 holding annual licenses.

Chiropractors. The Chiropractic Board is constituted under the Chiropractors Act 1982, and is concerned with the registration, education and conduct of practising chiropractors. Graduates from board-approved chiropractic colleges are eligible to take the board's competency examination and successful candidates are considered by the board for registration. The New Zealand Chiropractors' Association established a school of chiropractic, the New Zealand Centre for Chiropractic Ltd, in Auckland in 1994. The five-year full-time course includes a BSc. Training facilities will include a research unit.

At 30 June 1997 there were 310 registered chiropractors of whom 173 held annual practising certificates.

Pharmacists. The Pharmacy Act 1970 provides for the registration of pharmacists. All pharmacists must be members of the Pharmaceutical Society of New Zealand. The society provides the combined function of a registration board, including discipline, and the functions of a professional body including education, establishing standards, and caring for public interests. The society also acts as the Registering Authority for pharmacies under the provisions of the Pharmacy Registration Regulations 1975.

Entry to the profession is via a four-year degree course at the University of Otago plus a formal one-year post-graduate training programme that must be completed before registration is granted. Reciprocal recognition of qualifications exists between New Zealand, the States of Australia, the United Kingdom and Eire.

In December 1997 there were 3.634 pharmacists on the register. At the same time there were 1,017 registered pharmacies (1,041 in August 1996).

Pharmacy Technicians may receive a National Certificate jointly awarded by the NZ Qualifications Authority and the society.

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.

At 30 June 1997 there were 2,464 registered practitioners. 1,327 of whom held annual licences. Diagnostic imaging courses are available at UNITEC, Manawatu Polytechnic and Christchurch Polytechnic. Radiation therapists undertake a three-year full-time diploma course at the Central Institute of Technology, Heretaunga (Year 2 and 3). Year 1 students are undertaking a Bachelor of Health (Radiation Therapy) degree which is a three-year programme.

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.

The traditional apprenticeship-style training system is being replaced by courses based in the education sector. Otago University, Massey University and Auckland Institute of Technology offer a Bachelor of Medical Laboratory Science. At 30 June 1997 there were 2,436 registered medical laboratory technologists, with 1,287 licensed to practise.

Clinical Dental Technicians and Dental Technicians. As at 30 October 1997, 124 Clinical Dental Technicians and 134 Dental Technicians were registered with the board who held annual practising certificates.

The board is constituted under the Dental Act 1988. It has the responsibility for registering clinical dental technicians and dental technicians. It liaises with governing bodies of educational establishments in New Zealand regarding training and examination requirements. The board promotes and encourages a high standard of professional education and professional conduct among clinical dental technicians and dental technicians.

The board advises and makes recommendations to the minister in respect of any matter relating to the work carried out by Clinical Dental Technicians and Dental Technicians.

8.2 Subsidies for health services

General Practitioner subsidies

The Health Funding Authority subsidises the cost of general practitioner visits for most New Zealanders, through payment of a patient subsidy (either for each individual consultation, or as a bulk funding payment) to cover part of the cost of GP services. Doctors receive the remainder of their fees from patients directly.

Subsidies are higher for low income families (who are issued a Community Services Card) or people who have a higher need for services (who are issued a High Use Health Card).

The subsidy for all children aged under six increased on 1 July 1997, to enable GPs to provide free services to this group. Prior to 1 July 1997 the subsidy for children aged under five was $25 for card holders and $15 for non-card holders. The subsidy for children aged over six will remain unchanged, at $20 for card holders, and $15 for non-card holders. Adult card holders will continue to receive a subsidy of $15.

There is also a higher subsidy paid to GPs in some rural areas, and an immunisation benefit to cover the cost of vaccinations for children under 16.

Health Benefits Limited (HBL) was established in July 1993 and is owned by the Health Funding Authority (HFA). Its role is to make government subsidy payments on behalf of the HFA to health professionals, to provide information on these events, and to monitor those payments to ensure that taxpayer money is being appropriately spent. This applies to all primary care-based transactions subsidised by the government, such as visits to the doctor, pharmaceutical prescriptions and maternity or immunisation services. The company handles some $1.2 billion of payments on behalf of the HFA with some 34 million items in pharmacy payments alone.

HBL has changed its systems and approaches in a number of areas since its inception to meet HFA changing relationships with its providers. The introduction of audit and investigation activities has had a profound effect on claiming patterns and raised public awareness about these activities.

HBL has an office in Wellington, with two separate operating divisions. Its Wanganui centre processes all pharmaceutical claims, while the Christchurch centre processes all claims for medical and medically-related services.

HBL also provides valuable information to the HFA, providers and other appropriate agencies about patterns of spending on health, prescription costs and medicines usage, health trends and claiming patterns.

Pharmaceutical benefits

New Zealand residents are entitled, at a small cost to themselves, to a wide range of medicines, approved appliances and materials which are included in the pharmaceutical schedule, and prescribed by medical practitioners, midwives or dentists.

The pharmaceutical schedule is a list of the drugs and services subsidised by the government. The government pays a subsidy equivalent to the lowest price drug with a specific effect in each drug group. Some drug companies charge more for their products and pass this charge on to the customer. Special mechanisms are in place to ensure that people can get access to drugs in special circumstances.

The government sets a standard prescription charge to cover some, or all of the drug costs. For higher income earners this is usually $15, but may be less for very cheap drugs. The government reduces the prescription charge to varying degrees for people on low incomes, those who have high health needs and for contraceptives. Children under six are exempt from the prescription charge.

Families pay the prescription charge only for the first 20 pharmaceutical items each year after which time the government provides an additional subsidy. Non-cardholder families continue to pay a residual charge of $2 per item after the first 20. Cardholders do not pay a prescription charge for the rest of the year.

PHARMAC. Pharmaceutical Management Agency Ltd, is a Crown agency set up in 1993 as a limited liability not-for-profit company, owned by the Health Funding Authority (HFA), to manage the country's Pharmaceutical Schedule. This is the list, updated monthly and reprinted three times a year, of almost 3,000 subsidised prescription drugs and related products available in New Zealand. The schedule also records the price of each drug, the subsidy it receives from public funds, and the guidelines or conditions under which it may be prescribed. Last year 55 new products were added to the Schedule (62 in 1996).

The HFA spent $731 million on pharmaceutical subsidies in the year to June 1997, up $55 million from $676 million in the previous year. From 1 May 1996 monthly dispensing was introduced to reduce the amount of unused, unwanted and expired drugs in the medicine cabinets of New Zealand homes.

With a staff of 15, PHARMAC undertakes comprehensive pharmacoeconomic reviews of all products under the various therapeutic groups. It aims to improve the value for money of public funding of prescription drugs, using three strategies to balance patient needs and costs: price competition, improved targeting, and risk sharing.

Drug companies continued to pursue five court actions against PHARMAC involving judicial review and Commerce Act claims. High Court judgments were delivered in two cases. The annual cost of PHARMAC was $5.5 million ($4.5 million in 1996).

GOVERNMENT FUNDING OF ACCESS TO PHARMACEUTICALS
Annual subsidised pharmaceutical expenditure∗, not adjusted for inflation

Table 8.2A. TRENDS IN EXPENDITURE ON MAJOR HEALTH BENEFITS

ItemYear ended 30 June
1995199419951996
Note: Figures are GST inclusive (12.5 percent).Source: Ministry of Health
 $(000)
Primary service
General medical services (GMS) including
motor vehicle allowance
168,873170,928170,275173,382
Practice nurse and health care28,75530,33031,02032,646
Rural practice bonus3,2903,0783,2473,238
Immunisation2,7123,7642,9802,964
Maternity78,22289,61889,47894,228
Dental benefits17,11816,61616,04215,780
Sub-total298,970314,334313,042322,237
Referral services
Specialists3,0152,3962,5622,721
Laboratory114,006130,657141,082158,137
Diagnostic imaging2,2022,3662,5082,808
Sub-total119,223135,419146,152163,665
Pharmaceuticals582,931640,697674,798695,939
            Total1,001,1241,090,4501,133,9921,181,841

Subsidies for hospital treatment

In-patient treatment in public hospitals is free of charge for all New Zealanders.

All day and out-patient hospital services are also free. Before 1 July 1997 out-patient treatment in public hospitals was free of charge for all cardholders. Those without cards paid a $16 charge for children and $31 for adults. Families paid for a maximum of five out-patient visits each year, with exemptions 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 services

Women may receive free pregnancy, childbirth and postnatal care from general practitioners or independent midwives (through benefits paid by the Health Funding Authority) or by attending antenatal clinics established in connection with public hospitals. Some women choose obstetric care from a specialist and may then be charged by the specialist over and above the rate provided by the benefit.

Approximately 98 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 through some hospitals, from independent midwives, voluntary organisations and groups that have a direct contract with the local Health Funding Authority.

All maternity hospitals are licensed under the Hospitals Act 1957, and the Ministry of Health is responsible for ensuring that regulations regarding buildings, equipment and staff are observed.

Home nursing and home help

Home nursing 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, and as a temporary follow up to hospital care.

Dental services

Routine dental treatment is free for pre-schoolers, school children and adolescents. Dentists under contract to the Health Funding Authority provide the treatment. Some public hospitals also have dental departments which provide services to patients. The government has also decided to fund emergency dental treatment for low income earners through the Health Funding Authority. These services are being phased in over a three-year period from 1 July 1997.

Artificial aids

There are specific benefits available from the Health Funding Authority in various circumstances for a range of artificial aids. These include breast prostheses, hearing aids, wheelchairs, artificial eyes and wigs. Specific conditions for eligibility apply in each 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 8.2B. REGIONAL HEALTH AUTHORITY DEMAND-DRIVEN EXPENDITURE

ItemYear ended 30 June 1997

Note: Figures are GST exclusive.

Source: Ministry of Health

 $(million)
Primary
Pharmaceuticals672.41
GP Services169.22
Maternity86.33
Practice nurses31.32
Laboratory, diagnostic imaging141.18
Other5.88
            Total primary1,106.34
Disability support services
Geriatric care194.68
Rest home186.09
Intellectual handicap105.21
Other45.29
            Total residential care531.27
Home help54.75
Artificial aids and equipment24.71
Aid to families31.20
Maximised benefits33.55
Other5.03
            Total disability support services680.51
            Total1,786.85

In protective clothing and mask, Graeme Coats cleans a room at Otara School after the discovery of lead-based paint flakes contaminating the school building and grounds, February 1997.

8.3 Public health

Environmental health

A major function of local government is the improvement, promotion and protection 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 housing standards) and the regulation of food premises, hairdressers, camping grounds and funeral directors. There is also the control of offensive trades and environmental noise. 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 facilities. Health protection officers and medical officers of health are employed by public health service providers (usually Crown health enterprises) and have broad powers under regulation. They may provide specialist advice to local government to improve the effectiveness of environmental health activities.

The Ministry of Health also has responsibilities in public health regulation, including licensing of hospitals and old peoples' homes; administration of legislation on communicable and non-communicable disease control; environmental health; and the co-ordination of national regulatory activities.

The Public Health Group has within the Ministry of Health the functions: to monitor the state of public health and to identify public health needs; and to advise the Minister of Health on matters related to public health.

Radiation protection

Potential harm from radioactive materials and irradiating equipment is controlled by the Ministry of Health through its National Radiation Laboratory in Christchurch. The ministry issues licences under the Radiation Protection Act 1965 and publishes a regularly updated series of Codes of Safe Practice. To protect the public who may be exposed to irradiation, the users of radiation and patients, the ministry also audits and calibrates equipment, and monitors radiation doses.

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 (toothpowder 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 opioid 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, fruit and seeds are included in class C. Anything produced from a cannabis plant is class B.

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 Ministry of Health, New Zealand Customs Service and the New Zealand Police have maintained the National Drug Intelligence Bureau since 1972.

Communicable disease control

A revised schedule of notifiable diseases came into effect on 1 June 1996. This revision is the most comprehensive change to the schedule since the Health Act was enacted in 1956. Under the Health Act 1956. medical practitioners are required to notify the medical officer of health of any disease they suspect or diagnose. Notification data is recorded on a computerised database installed in each public health service, and is used to guide local control measures. The data is, in turn, collated and analysed at national level by the Institute of Environmental Science and Research (ESR) Communicable Disease Centre on behalf of the Ministry of Health.

The Ministry of Health monitors disease incidence, the prevalence of, and immunisation coverage for, communicable diseases. This includes policy development, promulgation of regulations and the fulfilment of international disease reporting requirements. The Ministry of Health manages the national co-ordination of responses to disease outbreaks and is responsible for the national immunisation schedule and the control of communicable diseases through designated officers employed by Crown health enterprises.

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 are undertaken by designated officers of Crown health enterprises.

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. Crown health enterprise health protection officers and medical officers of health provide specialist advice to local authorities on these matters.

The current regulations do not address all hazards in the food industry. To provide the needed assurance on the safety of food offered for sale, sections of the food industry have been working closely with the Ministry of Health on the development of industry-based systems to identify and adequately control hazards. The goal is to replace the current Food Hygiene Regulations and, to assist with the transition, the Food Act 1981 was amended in November 1996 to recognise Food Safety Programmes based on the Hazard Analysis Critical Control Point (HACCP) system. From 1 July 1997 food producers and distributors may apply to either the Director-General of Health or the relevant Territorial Local Authority for an exemption from the Food Hygiene Regulations. For an exemption to be granted the business must have an effective Food Safety Programme which fulfils the requirement now specified in the Food Act.

Services for older people

The focus of services for older people is assessment, treatment, rehabilitation and continuing care.

The Health Funding Authority funds services for older people from public and private providers. Older people assessed as needing continuing care in a rest home or geriatric hospital are means tested. They have to contribute to the cost of their care.

Historically most of the funding for long-term services for older people has been spent on hospital and rest-home care. The Health Funding Authority is now increasingly moving towards greater emphasis on the provision of home support services to enable older people to remain in their own homes where this is appropriate. These services include more support for informal caregivers and more flexible arrangements for day care and respite care.

Voluntary welfare organisations

Over the years voluntary welfare organisations have made valuable contributions to important aspects of public health. Vote Health, through a variety of contracts and other agreements, funds a wide range of independent service providers and related organisations. This includes, among others, the Royal Plunket Society, the New Zealand Family Planning Association, and the New Zealand AIDS Foundation.

Mental health

In 1996 the government established the Mental Health Commission, an independent body charged with ensuring that the government's overall strategy is implemented. The commission is expected to hold the Ministry of Health, purchasers, providers and health professionals to account for improving services by implementing the strategy which confirms a change in direction from a hospital-based to a community-based service. The commission reports directly to the Minister of Health and will be in existence for five years.

Additional funding has been made available for the purchase of mental health services to address the following:

  • access to new anti-psychotic medications

  • workforce development

  • child and adolescent mental health services

  • more community services for adults

  • community attitudes towards mental illness.

The Mental Health Commission and the Ministry of Health are closely involved in monitoring the expenditure of the additional funding, and the development of new and improved services.

The National Drug Policy has been approved by the government, completing a process begun in 1996, with the release of part I of the policy on tobacco and alcohol. The government released the policy (including part 2 on illicit and other drugs in 1998. The development of the National Drug policy is part of the government's national strategy for mental health.

Disability support services

The Health Funding Authority (HFA) has responsibility for funding a wide range of disability support services for people who have been assessed as having a physical, psychiatric, intellectual, sensory or age-related disability. The disability must be likely to continue for a minimum of six months, and result in a reduction of independent function to the extent that ongoing support is required.

The HFA funds services provided by Crown health enterprises, private businesses such as some rest homes, and voluntary (not for profit) organisations. Over recent years the trend has been toward some reduction in services provided by Crown health enterprises and a marked increase in the number of private and voluntary service providers. The HFA is also promoting joint ventures to develop co-ordinated or integrated care which involves a partnership between different types of service provider.

Disability support services framework. From 1 July 1997, the HFA has been required to have a systematic approach to the purchasing of services for people with disabilities. This approach is called the disability support services framework.

The framework consists of three main components:

  • needs assessment, which identifies and prioritises needs, and includes the preparation of a needs assessment report

  • service co-ordination which identifies the most appropriate services and support options to meet the person's assessed need, and determines which services will be publicly funded, and

  • service provision.

HFA funding. While the HFA is the predominant funder of disability support services some services continue to be provided by other government agencies, eg the Ministry of Education.

Disability support services funded by the HFA include:

  1. information and advisory services;

  2. needs assessment

  3. service co-ordination

  4. personal care services such as assisting with eating and dressing

  5. household support services such as cooking and cleaning

  6. caregiver support service such as respite care and day care

  7. residential care services providing short and long term care, eg rest home care or community homes

  8. rehabilitation and habilitation (eg child development) services;

  9. environmental support services, including equipment, vehicle purchase and modification grants, and home alteration grants.

In some cases, services have eligibility criteria which the consumer is required to meet. Eligibility for fully funded access to some services is dependent upon an assessment of the consumer's ability to contribute towards the cost of that service. This assessment is undertaken by the Income Support service of the Department of Social Welfare.

In 1996-97 public health expenditure on disability support services was $1,215 million, or 25.6 percent of all public health expenditure. For the first time, funding for disability support services was allocated on the basis of a population funding formula which takes account of the number of people with disabilities in the four main regions of the former RHAs.

During 1996-97 approximately 53 percent of RHA expenditure on disability support services was on age-related disability, 17 percent on intellectual disability, 18 percent on psychiatric and 12 percent on physical/sensory disability. The changes in previous years reflect the staged transfer of disability support services from the Department of Social Welfare.

Family health

The health of families is promoted through co-operation between the Ministry of Health, the Health Funding Authority, 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 Family Planning Association in various centres throughout the country. The Family Planning Association is contracted to the HFA 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 HFA purchases family planning advice from a range of providers, eg: individual GPs (where Community Service Card subsidies are involved), group practices, student health clinics, sexual health clinics, marae-based health services, and other providers.

A number of CHEs 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. In addition, there are private providers.

In May 1996 the government made extra funds available to allow some free contraceptives and consultations to be available and to increase the subsidies paid for oral contraceptives. This move was designed to make it easier, especially for those on low incomes, to get contraceptives and advice.

Māori health

To a large extent, the difference in health between Māori and non-Māori reflects overall differences in social and economic status, although race or cultural circumstance is also a factor. There is a strong correlation between the incidence of ill health and low income, high unemployment, inadequate housing and low educational achievement. Therefore, to maximise effectiveness for Māori, health and disability should be linked with other services to address social, cultural and economic conditions.

Māori medicine is used by traditional healer Timoti Pahi on Hohepa Renata at Hoani Waititi Marae, Glen Eden, January 1997.

Chief executive John Tamihere at the entrance to West Auckland's Te Whanan o Waipareira Trust. The trust actively supports health services, with a clinic on its marae.

Health and disability support services improve health for Māori, by prevention strategies and by timely and effective interventions that reduce mortality and morbidity from conditions such as diabetes, rheumatic fever, asthma, vaccine-preventable diseases, ischaemic heart disease. Many causes of death and disability can be treated by health services but require early identification of the problem and early initiation of treatment by health services. Improving Māori access to appropriate health services is a major focus of the government's strategy to achieve its objective for Māori health—to improve the Māori health status so in the future Māori will have the same opportunity to enjoy at least the same level of health as non-Māori.

Through policies for health promotion, positive incentives can be given to Māori to take responsibility for their own health —as individuals and as members of whanau, hapu, iwi and communities. Increased participation by Māori in the health and disability sector is occurring against a backdrop of significant Māori social and economic development. Māori health providers have improved access to health services as well as contributing to the general development of their communities. The number of Māori health providers has increased significantly since 1993, from approximately 30 to just over 200 providers.

The government strategic directions for Māori health are:

  • greater participation by Māori people at all levels of the health and disability sector

  • priorities for resource allocation which take account of Māori needs and perspectives

  • the development of culturally-appropriate practices and procedures as integral requirements in the purchase and provision of health and disability support services.

The Coalition Agreement confirmed these strategic directions and Māori health as a health gain priority area. Additional funds have been injected for accelerating Māori provider and workforce development. The Coalition Agreement also emphasised the need for improving the appropriateness of mainstream services for Māori.

Women's health

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 Māori 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 a range of issues of particular relevance to women. These issues may include contraception, sexual and reproductive health, infertility, pregnancy and childbirth services, terminations, breast cancer and cervical screening. The ministry also establishes the overall framework that determines how people, including particular population or interest groups, such as women, get access to publicly-funded services. This includes examining issues such as affordability of health care, appropriateness of services, and acceptable waiting times.

Women's health services are provided by CHEs, health professionals and a large variety of community and consumer groups. A national breast cancer screening programme is being established.

The National Cervical Screening Programme (NCSP) is co-ordinated nationally by the Ministry of Health but managed and delivered at a local level. Cervical cancer is a largely preventable disease if detected early. The need for such a screening programme was first identified in 1984 and the programme was established in 1990. The goal is to reduce mortality and disability from squamous cell cancer of the cervix trough by using a nationwide ongoing screening programme which can detect pre-cancerous changes. Treatment at this stage is very successful. Screening is offered three-yearly for women aged 20 to 69 years. The NCSP is delivered to women by a range of providers including general practitioners, nurse and lay smear takers, midwives, health educators and laboratories. Local co-ordination of the NSCP and the National Cervical Screening Register (NCSR) is managed through 14 geographic sites which are linked to a central database.

The aim of the programme is to ensure that the NCSP is a high quality effective and efficient cervical screening programme. The targets are as follows:

  • Mortality—To reduce the age-standardised death rate from cervical cancer from 4.2 per 100,000 women in the 1989-93 time period to below 3.5 per 100,000 by the year 2005.

  • Māori mortality—To reduce the age-standardised death rate from cervical cancer from 10.6 per 100,000 Māori women in the 1989-93 time period to 7.5 per 100,000 Māori women by the year 2000; and to 5.3 per 100,000 or fewer by 2005.

  • Incidence—To reduce the age-standardised incidence rate of cervical cancer in women from 12.0 per 100,000 women in the 1989-93 time period to below 8.6 per 100,000 by the year 2005.

  • Māori incidence—To reduce the age-standardised incidence rate of cervical cancer in Māori women from 29.8 per 100,000 Māori women in the 1989-93 time period to below 11.0 per 100,000 by the year 2005.

  • Early detection—No more than 30 percent of invasive cervical cancers detected should be beyond Stage 1 at the time of detection by the year 2000. In 1996, 87 percent of cervical cancer registrations were recorded as detected at Stage 1 (4 percent had no staging information stated).

  • Enrolments—To increase the proportion of eligible women enrolled on the National Cervical Screening Register from 18 percent in 1992 to 75 percent in 1996. To increase the proportion of eligible women enrolled and screened in the previous three years to 85 percent by the year 2000. By December 1996, 81 percent of eligible women were enrolled and 77 percent had a smear in the previous three years.

It appears that the NCSP will reach its targets within the time frames set out.

Breast cancer is a significant health problem for women in New Zealand. It is the leading cause of cancer deaths for women, with 84 percent of all breast cancer deaths occurring in women over the age of 50. International evidence shows that an organised population-based breast screening programme can reduce deaths from breast cancer in women aged 50 to 64 between 25 and 30 percent, as long as at least 70 percent of eligible women are screened.

The national breast cancer screening programme. Breast screen Aotearoa New Zealand, has been established and screening of eligible women will start early in 1998. Through early detection, the programme aims to reduce breast cancer mortality by offering free mammography services at two-yearly intervals to women in the 50 to 64 age group who do not have symptoms of breast cancer. Assessments for women who need it, are done by a team of radiographers, radiologists, breast specialist nurses, surgeons and pathologists.

In addition to the target group for the national programme the following groups of women continue to have access to publicly-funded mammograms:

  • women who have had breast cancer

  • women between 40 and 49 years who have a strong family history of breast cancer (defined as a mother or sister with pre-menopausal or bilateral breast cancer)

  • women between 40 and 49 years who have had a breast histology demonstrating an at-risk lesion.

Organised breast cancer screening programmes similar to this are already operating in Australia, and in the United Kingdom through the National Health Service.

Breastfeeding. The Ministry of Health recommends exclusive breastfeeding as the preferred infant feeding choice for the first four to six months of life, with continued breast feeding in combination with other foods for the first 12 months. Provided the infant is allowed to breast feed on demand breast milk remains a major source of nutrients for the first year of life. Scientific studies have identified that breastfeeding is associated with lowered risk for sudden infant death syndrome (SIDS) and allergy development in the infant. Breast milk also provides the infant with antibodies to protect against infection, and is an inexpensive, hygienic, readily available and complete nutritional food for the first six months of life. Benefits for the mother include a decreased risk of premenopausal breast cancer, a contraceptive effect (only with exclusive breast feeding), very little preparation and it helps mothers to return to their pre-pregnancy weight.

BREASTFEEDING
Babies with any breastfeeding when first seen by Plunket

BREASTFEEDING
Proportion of mothers giving any breastfeeding, and duration, for year to 30 June 1996

The 1991 Plunket National Child Health Study found that 89 percent of women planned before the birth to breastfeed their baby and 94 percent were actually initiating breastfeeding. During the first eight weeks of feeding, breastfeeding rates dropped to 79 percent and by three months, 71 percent of mothers were still breastfeeding to some extent. This figure is high in comparison with other western countries.

Child health

A comprehensive range of child health services which focus on disease prevention and health promotion are purchased by the HFA. The services which are set out in the Well-Child-Tamariki Ora national schedule include newborn screening; developmental, vision and hearing screening for children aged 0-4 years; and immunisation. Well child services for this age group are provided by a range of providers including CHEs, the Royal New Zealand Plunket Society. Tipu Ora and iwi providers. Examination by family doctors is recommended at about six weeks of age and whenever there is anxiety over acute or chronic illness or development.

Infant mortality was 6.7 deaths per 1,000 live births in 1995. 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 Health Funding Authority 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 employed by CHEs. 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.

Table 8.3. CHILDREN'S PUBLICLY-FUNDED HOSPITAL DISCHARGE RATES1 19952

PopulationAge group (years)
0-45-910-14

1Per 1,000 mean population.

2As at April 1997. The public hospital dataset is subject to change as hospital records are received.

Source: New Zealand Health Information Service

Total393.481.560.8
Māori695.5117.490.7
Female352.675.756.4

Free visits to the doctor for under-sixes started on 1 July 1997.

The differing hospital discharge rates for Māori and non-Māori children, illustrated in Table 8.3, reflect differing usage of health services by these groups. Improving usage of well-child 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 Māori children. The improvement of child health, and for tamariki Māori in particular, is one of the priorities identified by the government in the Coalition Agreement.

The Ministry of Health provides policy advice to the Minister of Health relating to health services for children and their families. The HFA funds both disease prevention and treatment services, provided by a range of health care providers including health professionals and community groups.

A free series of immunisations is available to children in New Zealand to protect them from nine serious diseases. To be fully protected children need to have all of the immunisations in the series. The government's immunisation strategy Immunisation 2000 aims to have 95 percent of children fully immunised at the age of two by the year 2000, from fewer than 60 percent in 1992. This will result in fewer children contracting vaccine-preventable diseases.

A mass measles campaign was held in 1997 to limit the spread of a measles epidemic. This campaign successfully prevented over 95 percent of the predicted measles cases.

A national committee has been established by the Ministry of Health to certify the elimination of polio in New Zealand. This is being done as part of the global eradication of polio.

Table 8.4. RECOMMENDED IMMUNISATION SCHEDULE

AgeVaccine

1Diphtheria, tetanus, whooping cough (pertussis), Haemophilus influenzae type b.

2Oral polio vaccine.

3Measles, mumps, rubella.

4Adult-type tetanus-diphtheria vaccine.

Source: Ministry of Health

6 weeksDTPH1, Hepatitis B, OPV2
3 monthsDTPH, Hepatitis B, OPV
5 monthsDTPH, Hepatitis B, OPV
15 monthsDTPH, MMR3
11 yearsOPV, MMR, Td4

Table 8.5. INFANT IMMUNISATION LEVELS BY VACCINE TYPE, 1992

Vaccine typePercentage1

1National 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 promotion

It is widely recognised that our health is profoundly affected by the socio-economic environments in which we live, in addition to our own personal behaviours and genetics. Health promotion is not just the responsibility of the health sector, but goes beyond healthy lifestyles to address other factors that determine well-being.

Health promotion action means building healthy public policy, creating supportive social environments, strengthening community action, developing personal skills and reorienting health services.

TOBACCO CONSUMPTION Per person aged 15 years and over

Smoking

Tobacco products consumption per adult between 1994 and 1996 rose 2.1 percent to 1,553 cigarette equivalents per adult. Between 1995 and 1996 there was a 19 percent drop in the amount of loose tobacco released for consumption. This coincided with an increase of 39 percent in the excise on loose tobacco.

In 1995 the government announced a three-year smokefree strategy aimed at reducing smoking by young people, particularly young Māori. Components of this strategy included:

  • Why Start? multi-media campaign.

  • increased enforcement of the ban on sales of tobacco products to minors

  • a smokefree schools programme

  • additional smokefree sponsorship of sports and cultural events

  • new legislation (passed in 1997) to, among other things, raise the age at which people may legally be sold tobacco products from 16 to 18, and ban the sale of single cigarettes and small packs of tobacco.

From the 1996 Census of Population and Dwellings, 24 percent of adults aged 15 years and over smoked cigarettes (25 percent of men and 23 percent of women). For the age group 20 to 24 years. 31 percent of men and 33 percent of women regularly smoke cigarettes. The prevalence of cigarette smoking is higher among Māori, where 44 percent of adults smoke. While for the total population smoking is more prevalent for men, smoking is more common among Māori for women (40 percent of men and 47 percent of women).

Alcohol

In New Zealand the excessive consumption of alcohol is a major personal and public health issue. Mean alcohol consumption in 1996 was 8.7 litres of pure alcohol per adult 15 years and over. The 1995 survey of New Zealand drinkers and their associated health problems published by the Alcohol and Public Health Research Unit indicates that:

  • Eighty-nine percent of men and 85 percent of women are drinkers.

    Seventy-three percent of all alcohol is consumed by men.

  • Seventy-four percent of the self-reported problems resulting from alcohol consumption are from men.

  • The 18-24-year-old age group almost always reports the highest levels of alcohol consumption and related problems.

  • The preferred drink for men is beer and for women, wine.

Table 8.6. 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 consumption74

ALCOHOL AVAILABLE FOR CONSUMPTION
Per person aged 15 years and over

Heavy drinking over a long period of time has been linked to a number of health problems, particularly liver and heart damage, hypertension and some cancers. In 1994 an estimated 142 people died from alcohol-related (primary cause) diseases such as alcoholic liver diseases and cirrhosis, alcoholic cardiomyopathy, alcohol dependent syndrome, alcoholic psychosis and alcohol abuse. In 1994, alcohol was a contributing factor in 38 percent of fatal road traffic crashes and 21 percent of injury accidents. Alcohol also significantly aggravates violence and contributes to deaths from falls, drowning and suicide.

11-year-old pupils of a small Waikato school with their roadside smoke-free message.

Alcohol-related health promotion and treatment services are purchased by the HFA in accordance with policy advice provided by the Ministry of Health.

The Alcohol Advisory Council of New Zealand (ALAC) promotes moderation in the use of alcohol and develops and promotes strategies which will reduce alcohol-related problems.

ALAC funds a multi-disciplinary alcohol research unit in association with the Health Research Council and the University of Auckland School of Medicine. It also supports other independent research projects.

In the health promotion area, ALAC funds mass media advertising to raise the level of awareness of alcohol-related problems, and is encouraging host responsibility both on licensed premises and at private functions. ALAC's programmes support the work of CHEs. particularly in promoting host responsibility on licensed premises. The council has also sponsored an alcohol and drug education programme in schools, currently being promoted by the colleges of education. Pamphlets, posters and more specialised information are available through ALAC's regional and national offices, and the council also provides the government, government departments and other agencies with advice and statistics on control policies, treatment methods and facilities, and other alcohol-related matters. 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.

See also section 24.1: Controls on trading.

Physical activity

In 1996 the commission asked over 3,000 adults (18 years and over) in New Zealand about the sport and physical activities they had done in the last year. Nine out of 10 stated that they had taken part in sport or physical activities. Gardening, walking, swimming, exercising and cycling are the main ways in which New Zealand adults are physically active. However, there are still significant numbers of people who are not physically active in their leisure time. To overcome this the commission, in association with North Health, has developed “Green Prescriptions”. Green Prescriptions encourage general practitioners to prescribe exercise to those of their patients who would benefit from it. GPs are in a good position to promote the health benefits of physical activity—they have regular access to a large proportion of the sedentary population and are respected source of advice. Launched in May 1997, Green Prescriptions is currently in operation in five independent practitioners' associations in the North Health catchment, Auckland and Northland. This project is being developed for national implementation in conjunction with health agencies. A toll-free information line 0800 ACTIVE, a service run by regional sports trusts, has been established to put patients in contact with local activity programmes.

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 at Wellington Polytechnic and dentists at the School of Dentistry, University of Otago.

School Dental Service. This service works to maintain a high standard of dental health for preschool and school children, starting at the age of two-and-a-half and continuing 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 1.3 per child in 1994, and 50 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. Research is undertaken by the School of Dentistry at the University of Otago. Health Research Council-funded dental research is undertaken by a number of investigators.

Fluoridation. In 1996, 47 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 communities with fluoridated and non-fluoridated water supplies has decreased. The benefit of fluoridation in preventing dental decay is greatest for those in low socioeconomic groups, Māori and children.

The New Zealand Health Information Service

The New Zealand Health Information Service (NZHIS) is the group within the Ministry of Health responsible for the collection and dissemination of health-related information.

NZHIS has responsibility for the:

  • collection, processing, maintenance and dissemination of health data, health statistics and health information;

  • continuing maintenance and development of the national health and disability information systems;

  • provision of appropriate databases, systems and information products;

  • development and provision of health and disability information standards and quality-audit programmes for data;

  • co-ordination of ongoing national health and disability information collections and of proposals for their development; and

  • analysis of health information and provision of advice on the use of information obtained from NZHIS.

Information collected by the NZHIS

There are three major information systems currently supported by the NZHIS, the National Health Index (NHI), the Medical Warning System (MWS), and the National Minimum Dataset (NMDS). These databases contain information for secondary and tertiary health events from CHEs. Plans are in place to expand the existing information base to include primary care information. NZHIS also collects health workforce information.

The National Health Index. The NHI provides a mechanism for uniquely identifying healthcare users. It was developed to help protect personally identifiable health data, particularly data held on computer systems, and to allow different information systems to be linked while still protecting privacy.

The Medical Warning System. The MWS is designed to warn healthcare providers of the presence of any known risk factors that may be important in making clinical decisions about individual patient care.

The National Minimum Dataset. The NMDS is a single integrated collection of secondary and tertiary health data, developed in consultation with health sector representatives, required at national level for:

  • policy formulation

  • monitoring and evaluation of policy implementation

  • performance monitoring and evaluation

  • health status measurement

  • meeting international reporting requirements.

To ensure that health-event data provided to the NMDS is anonymous, each record is identified with the healthcare user's NHI number in encrypted form only. No personally identifiable information is kept on the NMDS.

Health Workforce Information. The Health Workforce Data Collection consists of 13 stand-alone databases of annual survey information for each of New Zealand's registered health professions: doctors, nurses, dentists, chiropractors, medical laboratory technologists, medical radiation technologists, optometrists, dispensing opticians, psychologists, occupational therapists, dietitians, podiatrists and physiotherapists.

Publications

The NZHIS publishes annual reports of statistics based on data from the NMDS. These publications are Public Hospital Morbidity Data, Private Hospital Morbidity Data, Mental Health Data, Cancer Data, Mortality and Demographic Data, and Fetal and Infant Deaths.

Health workforce information is also published, but at greater-than-annual intervals at present. These publications are available from the Information Delivery section of NZHIS.

More information is available on the NZHIS web site at http://www.nzhis.govt.nz

Causes of death

The World Health Organization'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, and Ministry of Transport and Water Safety Council reports.

Medical practitioners certified 84 percent of deaths in 1995, while coroners certified the remaining 16 percent. Of the deaths certified by doctors, 2.6 percent were subject to a post-mortem, compared to 78 percent of coroner-certified deaths. Overall, almost 15 percent of deaths in 1995 were subject to a post-mortem.

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.

Malignant neoplasms (cancer), ischaemic heart disease and cerebrovascular disease were the leading causes of death in New Zealand in 1995, collectively accounting for just over 60 percent of all deaths (cancer 27 percent, ischaemic heart disease 24 percent and cerebrovascular disease 10 percent).

Further statistics on causes of death can be found in Section 8.5 Accidents. For general health statistics see Section 8.4 Hospitals.

Table 8.7. MAJOR CAUSES OF DEATH 1993-95

Cause of deathNumber of deathsRate per million of mean population
199319941995199319941995
Source: 1995 provisional data. 1993 and 1994 published data. New Zealand Health Information Service
Malignant neoplasms7,0947,1657,4222,0512,0432,084
Diabetes mellitus459486508133139143
Chronic rheumatic heart disease126124129363536
Hypertensive disease281259247817469
Ischaemic heart disease6,8986,6196,6971,9941,8871,881
Other forms of heart disease1,0661,1221,164308320327
Cerebrovascular disease2,7882,7282,715806778762
Diseases of arteries, arterioles and capillaries680667672197190189
Pneumonia9991,0151,166289289327
Bronchitis, emphysema and asthma395400362114114102
Other diseases of respiratory system1,3101,3291,491379379419
Peptic ulcer164153168474447
Cirrhosis of liver124130113363732
Congenital anomalies209177181605051
Conditions of perinatal mortality122119119353433
All other diseases2,7542,8602,998796816842
Motor vehicle accidents617602612178172172
Other unintentional accidents680626649169179182
Suicide and self-inflicted injury443512543128146152
Total, all causes of death27,20927,09327,9567,8667,7267,850

Cancer. In New Zealand approximately one-quarter of all deaths are caused by cancer. A detailed report entitled Cancer: New registrations and deaths is published annually by the NZHIS. This publication provides information about all cases of primary malignant cancer reported to the New Zealand Cancer Registry as well as information about deaths from cancer.

SELECTED CAUSES OF DEATH
Age-standardised rate

Table 8.8. DEATHS FROM CANCER, 1995

Age groups, in yearsMalesFemales
NumberRate per 100,000 of population at ages givenPercentage of total deaths at ages givenNumberRate per 100,000 of population at ages givenPercentage of total deaths at ages given
Source: Provisional data. New Zealand Health Information Service
Under 542.60.132.10.1
5-14155.50.483.10.2
15-242810.10.7176.40.5
25-4411622.03.020537.45.9
45-64923263.323.6984281.028.1
65 and over2,8331,609.572.32,286977.265.3
            Total3,919222.9100.03,503194.3100.0

Table 8.9. DEATHS FROM CANCER AT SELECTED SITES, 1993-95

SiteSexNumberRates per million mean population
199319941995199319941995

1Cancer of the large bowel is an aggregation of rectum cancer and cancer of the large intestine.

Source: Provisional data. New Zealand Health Information Service

Buccal cavity and pharynxM385873223442
 F173036101720
OesophagusM140139148828084
 F696377393543
StomachM1711401521008186
 F104111113596463
Large intestineM329363346193210197
 F378397372216229206
RectumM218228228128132130
 F149161165859391
Large bowel1M547591574321342327
 F527558537301322298
Bronchus, trachea and lungM892919893523531508
 F444484513253280284
BreastM445223
 F584567638333328354
Cervix uteriF807796464553
Corpus uteriF585261333034
Ovary, fallopian tube and broad ligamentF1881721751079997
ProstateM520517554305299315
Bladder and other urinary organsM10520521062118119
 F4511190266250
Skin, all formsM151145171898497
 F969692555451
BrainM11111072656441
 F928294524652
Lymphosarcoma and reticulum-cell sarcomaM822145138
 F31316279
LeukaemiaM149133140877780
 F99124105567058
All other and unspecified sitesM976850913572491519
 F876792860500446477
        Total cancer deathsM3,8123,8333,9192,2352,2152,229
 F3,2823,3323,5031,8721,8751,943

In 1995, 95 percent of cancer deaths occurred at age 45 years and over, with 69 percent of deaths occurring at 65 years and over. The lungs were the major site of male cancer death, accounting for 23 percent of male cancer deaths in 1995. Other common sites for males were the large bowel and prostate. The main site for female cancer deaths was the breasts (18 percent of female cancer deaths), followed by cancer of the large bowel.

Table 8.10. FETAL AND INFANT MORTALITY RATES, 19941

Category of deathMāoriPacific IslandOtherTotal
NumberRateNumberRateNumberRateNumberRate

1Rates per 1,000 live or total births.

Source: New Zealand Health Information Service

Late fetal182.5163.71563.41903.3
Early neonatal202.861.41352.91612.8
Perinatal385.4225.12916.33516.1
Late neonatal50.751.2320.7420.7
Post neonatal7210.2214.91182.62113.7
Infant9713.8327.52856.24147.2

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 late fetal deaths and deaths in the first week of life. A late fetal death is a death occurring after 28 weeks gestation and before birth. The late fetal death and the perinatal death mortality rates are calculated per 1,000 total births (late fetal deaths plus live births), while the death rates for neonatal and infant deaths are calculated per 1,000 live births.

Table 8.11. INFANT MORTALITY RATES FOR SELECTED OECD COUNTRIES1

Country19851995

1Rate per 1,000 live births.

2 1994.

Source: OECD in Figures (1997 edition)

Australia9.95.7
Austria11.25.4
Germany8.95.3
Greece14.18.1
Iceland5.76.1
Japan5.54.3
New Zealand10.87.22
Portugal17.87.4
Switzerland6.95.0
United Kingdom9.46.22

The principal causes of infant mortality are shown in table 8.12. The cause of death has been selected according to the main disease affecting the neonate.

Maternal deaths. Direct maternal deaths totalled 2 in 1995, which is a rate of 3.5 per 100,000 live births.

Table 8.12. PRINCIPAL CAUSES OF INFANT MORTALITY 1995

Cause of deathNumber of deathsRate per 1,000 live births
Source: Provisional data, New Zealand Health Information Service
Infectious and parasitic diseases90.16
Malignant neoplasms20.03
Diseases of nervous system120.21
Circulatory system30.05
Respiratory system190.33
Digestive system
Congenital anomalies921.59
Perinatal conditions1172.02
Sudden infant death syndrome1101.90
External causes of injury and poisoning180.31
All other causes60.10
            Total deaths3886.71

Abortion. Abortion is permitted by New Zealand law in certain circumstances. The main conditions required are that continuation of the pregnancy would result in serious danger (not being danger normally associated with childbirth) to the life, or to the physical or mental health of the woman or girl; or that there is a substantial risk that the child, if born, would be so physically or mentally abnormal as to be seriously handicapped. There is no upper limit to when an abortion can be carried out in New Zealand, but the grounds are stricter when the gestation of the pregnancy is more than 20 weeks. Then, an abortion can only be done to save the life of the mother or to prevent serious, permanent injury to her physical or mental health. The Crimes Act 1961 (as amended) sets out when an abortion would be unlawful.

The Contraception, Sterilisation and Abortion Act 1977 sets out the referral procedure where a woman seeks an abortion. It also sets out the requirements when a case is determined. If, after consideration of a case, two specially appointed consultants both believe 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.

INFANT MORTALITY
Deaths of infants under 1 year

Table 8.13. ABORTIONS ACCORDING TO AGE GROUP1

Age group19921993199419951996

1Calendar years.

Source: Abortion Supervisory Committee

111
12112
13314512
143950393747
15134133174178188
16306288333367393
17445475508540631
18622638668714805
19725716774795892
20-243,3983,5753,9004,1644,397
25-292,6612,6082,7872,9853,239
30-341,8691,9202,0562,1582,315
35-391,0631,1421,2141,2821,419
40-44308322350390430
45 and over2224283736
            Total11,59511,89312,83513,65214,805
Under 16 years176185217220248
Age 16-19 years2,0982,1172,2832,4162,781

Table 8.14. GROUNDS ON WHICH ABORTIONS WERE AUTHORISED1

Grounds19921993199419951996

1Calendar years.

Source: Abortion Supervisory Committee

Serious danger to physical health1427272852
Serious danger to mental health11,36311,59212,57213,37914,507
Combination of serious danger to physical and mental health60111762330
Substantial risk of abnormal child8583628861
Incest4212
Offence under s. 131 Crimes Act 1961312
Woman severely subnormal1311
Serious danger to mental health and risk of abnormal child676595111140
Serious danger to physical and mental health and substantial risk of abnormal child4
Serious danger to mental health and offence under s. 131 Crimes Act 1961.11
Danger to mental and physical health and offence under s. 131 Crimes Act 1961.2
Serious danger to mental health and woman severely subnormal21
Other multiple grounds2118
            Total11,59511,89312,83513,65214,805
Factors of alleged rape taken into account5265483747

Table 8.15. ABORTION RATES: NEW ZEALAND AND OTHER LOW FERTILITY COUNTRIES

Country1YearCrude abortion rate2General abortion rate3

1Sources for other than New Zealand statistics are given with Table 16 in the 1996 Annual Report of the Abortion Supervisory Committee.

2 Per 1,000 estimated mean population.

3 Per 1,000 estimated mean number of women aged 15-44 years.

4Australia's statistics have been derived from figures which include only those services that qualify for Medicare Benefit and for which a claim has been processed.

5Residents only.

6Includes residents of Scotland obtaining abortions in England.

Source: Abortion Supervisory Committee

New Zealand19872.711.3
19883.012.7
19893.112.8
19903.313.9
19913.414.4
19923.314.2
19933.414.4
19943.615.7
19953.816.4
1996P4.117.7
Australia419954.218.5
Canada51993P3.614.9
Denmark1995P3.418.7
England and Wales51994P3.014.6
Finland19951.99.4
France19902.812.6P
Germany19931.4
Japan19903.717.0P
Netherlands51995P2.75.8
Norway19943.415.7
Scotland619882.19.7
Sweden1995P3.618.3
United States199225.9

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.

8.4 Hospitals

Hospital and community health administration

Since 1 July 1993 Crown health enterprises (CHEs) have been responsible for providing health services in the health sector. CHEs were formed around existing large hospitals.

CHEs enter into contracts with the Health Funding Authority to provide health care services. The HFA is the country's health care purchasing organisation. Until 1 July 1997, purchasing was through four regionally-based divisions—North Health, Midland Health, Central Health, and Southern Regional Health.

Licensing and inspection of public and private hospitals are the delegated responsibility of the Ministry of Health.

Hospital part-charges apply to a range of out-patient services and are targeted according to income (see 8.2: Subsidies for health services). The Crown Companies Monitoring and Advisory Unit (CCMAU) is responsible for monitoring the performance of CHEs.

Public hospital patients

In 1996, there was a total of 368 hospitals in New Zealand; 119 of these were public hospitals and 249 private. The total number of hospital beds in 1996 totalled 22,488, 15,270 of which were in public hospitals and 7,218 in private hospitals.

Table 8.16. HOSPITALS AND HOSPITAL BEDS, 1993-96

 Year
1993199419951996
Source: Licensing Section. Ministry of Health
Number of hospitals
        Private hospitals200205207249
        CHE hospitals109131138119
Number of beds
        Private hospitals7,1497,8817,2187,218
        CHE hospitals15,89716,29515,55515,270

Principal diseases and disabilities. Detailed statistical information is supplied to the Ministry of Health through the New Zealand Health Information Service about all patients discharged from, or dying in, public hospitals in New Zealand.

Table 8.18 shows the principal diseases and injuries treated in public hospitals in 1996, together with average stay (in days), and conditions as a percentage of total cases treated. The disease headings are the 50 disease group categories of the International Classification of Diseases. The table reports only the principal condition for which the patient was admitted, regardless of other diseases which were present or which developed during the stay in hospital.

Ike the Hospital Dog of Lorne Hospital, Invercargill, shares a moment and a shortbread biscuit with a resident, January 1997.

Length of stay in public hospitals. The average length of stay in public hospitals in 1996 was 6.4 days, compared to 6.9 in 1995. The disease groups with the longest average stays were psychoses (40 days), and other diseases of the nervous system (29.8 days).

Table 8.17. AGE AND SEX OF INPATIENTS DISCHARGED FROM PUBLICLY FUNDED HOSPITALS, 1996

Age group (years)MalesFemalesTotal
Source: Provisional data. New Zealand Health Information Service
0-451,43443,19094,624
5-97,8215,83313,654
10-146,2675,11511,382
15-197,06514,41821,483
20-248,07125,34733,418
25-297,70933,06140,770
30-347,60930,82338,432
35-397,54218,13425,676
40-447,1429,90517,047
45-498,1438,84116,984
50-548,531801716,548
55-599,5268,54118,067
60-6411,0979,24220,339
65-6915,10912,05327,162
70-7416,07014,28630,356
75-7913,70815,09428,802
80-8410,85914,69425,553
85 +7,38613,69021,076
            Total211,089290,284501,373
            total 1995211,593288,997500,590

Table 8.18. DISEASES AND CONDITIONS TREATED IN PUBLIC HOSPITALS (INCLUDING RE-ADMISSIONS, EXCLUDING DAY CASES) DURING 1996

Disease groupTotal discharges or deaths in public hospitalsPercentage of all casesAverage stay (days)

1Includes carcinoma in-situ and malignant neoplasms of lymphatic and haematopoietic tissue.

2Includes neoplasms of uncertain behaviour and neoplasms of unspecified nature.

3Includes diseases of veins and lymphatics.

4Excludes treatments in psychiatric hospitals.

Source: Provisional data. New Zealand Health Information Service

Infectious and parasitic diseases (except tuberculosis)10,0452.04.1
Tuberculosis3010.114.5
Malignant neoplasms122,2664.48.6
Benign neoplasms23,8270.85.6
Disorders of the thyroid gland4630.14.9
Diabetes mellitus2,9740.610.4
Other endocrine, nutritional, metabolic and immunity disorders2,6330.57.2
Diseases of blood and blood-forming organs3,8060.84.3
Psychoses36,0521.240.4
Other mental disorders33,6560.713.5
Disorders of eye and adnexa4,0890.82.7
Diseases of ear and mastoid process2,8510.62.3
Other disorders of central nervous system5,4261.129.8
Acute rheumatic fever and chronic rheumatic heart disease5580.113.9
Ischaemic heart disease19,6583.96.4
Hypertensive disease and other forms of heart disease15,5223.16.8
Cerebrovascular disease8,5851.712.5
Diseases of arteries, arterioles and capillaries4,2860.97.4
Other disease of the circulatory system43,6450.76.1
Acute respiratory infections and influenza8,7821.83.0
Pneumonia9,7361.97.8
Chronic obstructive pulmonary disease16,9053.45.1
Chronic disease of tonsils and adenoids2,6260.51.3
Other respiratory disease7,2811.54.9
Disease of oral cavity, salivary glands and jaws1,3850.32.5
Oesophagus, stomach and duodenum disease4,8571.04.9
Appendicitis4,1800.83.6
Hernia of abdominal cavity3,3780.72.9
Non-infective enteritis and colitis2,6090.56.2
Other digestive system disease15,9373.25.6
Other diseases of urinary system8,7131.75.1
Male genital organ diseases3,2920.73.5
Breast and inflammatory pelvic organs2,5300.52.7
Other female genital tract6,0181.23.5
Pregnancy and complications of childbirth, excl. abortion67,03213.43.4
Pregnancy with abortive outcome5,5291.11.7
Skin and subcutaneous tissue disease9,1351.86.5
Arthropathies and related disorders8,2911.79.2
Osteopathies, chondropathies3,1780.68.3
Congenital anomalies4,9381.07.0
Perinatal conditions15,4263.17.6
Symptoms. signs31,1516.24.0
Fractures19,9494.06.7
Dislocations, sprains and strains of joints2,2720.53.1
Intracranial injury5,9761.24.2
Laceration and open wound6,9151.43.3
Burns1,1710.27.5
Drug, medicament, poisoning3,4460.72.7
All other conditions98,09219.66.6
            Total, all conditions 1996501,373100.06.4
            Total, all conditions 1995500,590100.06.9

Injury cases. In 1996 the most common causes of hospitalisation following injury were accidental falls, surgical and medical complications and misadventures, and motor vehicle accidents. Accidental falls accounted for over one-quarter of all injury cases in publicly-funded hospitals in 1996.

Table 8.19. INJURY CASES TREATED AS INPATIENTS IN PUBLICLY-FUNDED HOSPITALS (INCLUDING READMISSIONS), 1996

Cause of injuryTotal casesPercentage of all injury cases
Source: Provisional data. New Zealand Health Information Service
Transport
Railway17-
Motor-vehicle traffic6,8828.3
Motor-vehicle non-traffic8361.0
Other road vehicles1,7732.1
Water2330.3
Air1020.1
Vehicle accidents not elsewhere classifiable28
            Total9,87111.9
Non-transport
Accidental poisoning1,5031.8
Accidental falls22,43427.0
Surgical and medical complications and misadventures19,92024.0
Other accidents15,29818.4
Late effects of accidental injury2,7413.3
Adverse effects of drugs, medicaments and biological substances5,6686.8
Suicide and self-inflicted injury2,9383.5
Homicide and injury purposely inflicted by other persons2,2642.7
Legal intervention by police18
Injury undetermined whether accidentally or purposely inflicted2890.3
Injury resulting from operations of war5
            Total73,07888.1
            Total all injury cases82,949100.0

Hospital waiting lists continue to be in the news, May 1997.

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 table 8.20. This table shows the number of patients discharged from, or dying in. public hospitals in 1996 after treatment for accidents at home. It only includes inpatients in public hospitals, not the large numbers of accident cases treated in out-patient departments, doctors' surgeries and at home.

Table 8.20. INPATIENTS DISCHARGED FROM PUBLICLY- FUNDED HOSPITALS AFTER ACCIDENTS AT HOME, 1996

Cause of accidentTotal patients
Source: Provisional data. New Zealand Health Information Service
Drugs and medicaments633
Petroleum products and other solvents36
Agricultural and horticultural preparations other than plant foods or fertilisers38
Noxious foodstuffs and poisonous plants48
Other solid and liquid substances132
Gases and vapours11
Accidental falls8,450
Struck by falling objects91
Accidents caused by cutting and piercing instruments1,266
Accidental burns770
Accidents caused by foreign bodies372
All other and unspecified accidents4,048
            Total 199615,895
            Total 199514,702

For further accident statistics, see section 8.6: Accidents.

Table 8.21. RATES OF FIRST ADMISSION TO MENTAL HEALTH FACILITIES3

YearAge1Total all ages2
0-910-1920-2930-3940-4950-5960 and over

1Age-specific rate per 100,000.

2Age standardised rates per 100,000 standardised to Segi's world population.

3Includes psychiatric illness hospitals, intellectual handicap hospitals, psychiatric units of public hospitals and alcoholism and drug addiction facilities. Note that Māori age-specific and age-standardised rates are calculated from single origin populations.

Source: New Zealand Health Information Service

1988—
    Māori521048827517013190218
    Non-Māori10108222159127103151129
1989—
    Māori121794442601539192197
    Non-Māori119522515712995133124
1990—
    Māori1216549633829215637230
    Non-Māori788240213165140136142
1991—
Māori41684703181979193208
Non-Māori78022517412298125121
1992—
Māori101398293207102122164
Non-Māori277329191138115118114
1993—
    Māori1675103321779488190
    Non-Māori170221176124100119104

Admissions. The total number of admissions (including replacements) to inpatient psychiatric care during 1993 was 15,653. This total was made up of 4,372 first admissions and 11,281 readmissions. Included in the readmission figure were 574 patients replaced from leave. This last category applies only to people who may not discharge themselves, for example, special and committed patients, and those with compulsory treatment status.

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 1993, 77 percent of first admissions and 68 percent of readmissions were on an informal (voluntary) basis. Table 8.22 shows that the two leading diagnostic reasons for entering inpatient care for all psychiatric admissions were schizophrenic psychoses and affective psychoses.

Table 8.22. DISCHARGES FROM MENTAL HEALTH FACILITIES1, 19932

DiagnosisOutrightLeaveNot committed
NumberMean stay (days)NumberMean stay (days)NumberMean stay (days)

1Includes psychiatric illness hospitals, intellectual handicap hospitals, psychiatric units of public hospitals and alcoholism and drug addiction facilities.

2Year ended 31 December.

Source: New Zealand Health Information Service.

Senile and pre-senile organic
psychotic conditions
22616714172
Alcoholic psychoses61405585114
Drug psychoses175161576114
Other organic psychotic conditions129144711136
Schizophrenic psychoses3,4111806271892349
Affective psychoses3,3224028066830
Paranoid states1642816132
Other psychoses5772352110
Neurotic depression and other depressive disorders1,470192287
Other neurotic disorders317203119115
Alcohol dependence or abuse1,50948897513
Drug dependence or abuse630271764828
Other personality disorders819436591914
Stress and adjustment reactions834141189138
Non-psychotic disorders of childhood and adolescence1154
Non-psychotic disorders due to brain damage57145832
Physiological malfunction due to mental factors151,465
Mental retardation3232,86125304248
No psychiatric diagnosis1661654713120
            Total14,2161391,26113918924

Table 8.23. DIAGNOSES FROM MENTAL HEALTH FACILITIES1,19932

DiagnosisTotalFirst admissionsReadmissionsReplacements from leave

1Includes psychiatric illness hospitals, intellectual handicap hospitals, psychiatric units of public hospitals and alcoholism and drug addiction facilities.

2Year ended 31 December

Source: New Zealand Health Information Service.

Senile and pre-senile organic psychotic conditions250163825
Alcoholic psychoses6222373
Drug psychoses200621308
Other organic psychotic conditions14061763
Schizophrenic psychoses4,0604393,319302
Affective psychoses3,6437092,816118
Paranoid states17271938
Other psychoses63727334519
Neurotic depression and other depressive disorders1,5025649299
Other neurotic disorders3221431763
Alcohol dependence or abuse1,61569889621
Drug dependence or abuse6623053516
Other personality disorders88517067342
Stress and adjustment reactions8654633984
Non-psychotic disorders of childhood and adolescence1082
Non-psychotic disorders following brain damage5822351
Physiological malfunction due to mental factors817
Mental retardation2162417022
No psychiatric diagnoses346174172
            Total, all cases15,6534,37210,707574

Discharges. During 1993 there were 15,875 discharges from psychiatric hospitals and hospitals for the intellectually handicapped, psychiatric units of public hospitals and institutions treating alcoholism and drug addiction. Of these, 9,123 were discharged from psychiatric hospitals, 222 from hospitals for the intellectually handicapped, 5,644 from public hospital psychiatric units and 886 from institutions licensed under the Alcoholism and Drug Addiction Act 1966.

Approximately seven out of every 10 patients leaving hospital in 1993 had a stay of fewer than 30 days.

Deaths. In 1993 there were 145 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 132 in 1992.

8.5 Accidents

Accident Rehabilitation and Compensation Insurance

New Zealand was the first country to introduce a system of comprehensive, no-fault insurance cover for accident-related injuries and disabilities.

The accident compensation scheme was created by legislation and took effect in 1974. It replaced a statutory workers' compensation scheme, compulsory third party motor vehicle accident insurance and a criminal injuries compensation scheme. It also removed the common law right to sue for damages in return for support for injured people regardless of fault.

The scheme has been amended from time to time, principally to keep its entitlements in line with social changes. Legislative changes in 1996 allow ACC to exercise more discretion in matching services to claimants. This reinforces the scheme's basic principle—the acceptance of community responsibility for the treatment, rehabilitation and support of those injured by accident.

Cover is extended to all New Zealand residents, to New Zealand residents while temporarily overseas and to overseas visitors while they are in New Zealand.

ACC

ACC is the commonly-used name of the Accident Rehabilitation and Compensation Insurance Corporation. Its objective is to reduce the social, economic and physical impact of personal injury on individuals and the community by:

  • designing, implementing and evaluating effective programmes to prevent injuries

  • ensuring effective intervention when injury occurs to ensure appropriate treatment is received

  • working with claimants to help them, where practical, return to independent living and employment as soon as possible.

In recent years, ACC has undergone a major change of strategic direction. In its early history, the corporation focused solely on administering claims as swiftly and accurately as possible. Over the past few years, its focus has become more strategic. It now emphasises ensuring services are effectively delivered to injured people on the basis of need, and reducing the impact of injuries for individuals and the country.

ACC is a Crown entity with a Board of Directors appointed by the Minister for Accident Rehabilitation and Compensation Insurance. Under the 1996 legislation a service agreement is entered into between the board and the minister, which specifies ACC's desired outcomes and objectives and acts as an accountability mechanism. ACC's administrative costs represent only 11 percent of total budget (10 percent in 1996), with 89 percent (90 percent in 1996) of its budget going directly to claimants or being spent on services to claimants.

ACC is not a service provider. Rather, it contracts and co-ordinates with a range of service providers—from medical staff to vocational trainers—to provide the resources required by injured people.

In its last financial year (to 30 June 1997) ACC received 1,496 million registered claims. About 8 percent of those (127,081) involved moderate or serious injuries while the remainder required only basic medical attention. In addition to the registered claims, ACC continued to provide support on 135,391 claims for the ongoing effects of injuries which occurred in previous years.

Services

ACC is active at all points of the injury prevention, treatment and rehabilitation sequence. The main resources it provides to injured people are:

  • The costs of their retrieval from the accident scene, where an ambulance or air transport is necessary.

  • The costs of physical rehabilitation, including the costs of some public hospital and private hospital treatment, a contribution to the costs of “primary health care providers”, such as GPs, for consultations and treatment relating to minor injury, and some contribution to the costs of travel to treatment.

  • Compensation for loss of earnings, taking the form of weekly payments equivalent to 80 percent of the client's pre-injury income for the period in which the claimant is unable to work because of the accident, with abated compensation where the injured person is able to continue some work but earnings are reduced.

  • A range of “vocational” support providing injured people with retraining, which allows them to return, where possible, to their former capacity for work, or to alternative work.

  • A range of personal support, designed to make living with an accident more comfortable. This support can include the payment of an independence allowance, the modification of homes and vehicles for those with lasting incapacity, and a range of care services for those unable to manage the normal routine of their daily life without help.

Funding

ACC is funded by all New Zealanders. It is a pay-as-you-go scheme, which means it needs to collect enough money each year to pay all its expenses in that year, including the ongoing costs of injuries from previous years, as well as to maintain reserves for six months ahead. ACC receives income from five sources (as shown in Table 8.24):

Employers. All employers (including the self-employed) pay a premium based on their total payroll. The level of this premium generally depends on the risk of the type of work carried out by the employer's workers. The employer's work injury record also influences the premium level. For the 1998-99 employer premium year (the 1997-98 payroll year) employer premiums range from $1.04 on every $100 of payroll (education) to $8.34 on every $100 of payroll (meat processing). The 6-cent Health and Safety in Employment levy collected on behalf of the Occupational Safety and Health (OSH) division of the Department of Labour is excluded from these rates.

Earners. All earners pay a premium based on their total earnings. This is collected with PA YE tax. The current premium rate is 70 cents in every $100 earned. In April 1998 this changed to $1.20 for every $100 earned.

Motor Vehicles. Part of the annual registration fee for motor vehicles is an ACC premium. At present this is $90 for a private car. A tax of 2 cents a litre on all petrol sales also goes to ACC.

Government. The government makes an annual payment on behalf of people who are not earning an income.

Investment. ACC is required to maintain reserves equivalent to six months' expenditure. These reserves are invested and income is produced by those investments.

Costs

The costs of each injury are assigned to one of six separate accounts.

The Employers' Account meets the cost of all work-related injuries. It is funded from the employers' premiums. In the year to 30 June 1997 the account had 293,239 registered claims made against it. The cost during that year of those claims, together with the ongoing cost of work-related injuries which occurred in previous years, was $866,721,000.

The Earners' Account meets the cost of injuries occurring to earners outside their workplace (often injuries resulting from accidents in the home or in sport or recreation). They do not include injuries involving motor vehicles on public roads. The account is funded from the earners' premiums. In the year to 30 June 1997 the account had 417,763 registered claims made against it. Those claims, together with ongoing costs of injuries from previous years, cost $172,605,000 during the year.

The Non-Earners' Account meets the cost of all injuries (except those involving motor vehicles on public roads) to people who are not in the workforce. This account is funded by a direct payment from the government. In the year to 30 June 1997 it had 738,689 registered claims made against it. Those claims, together with the ongoing costs of injuries from previous years, cost $167,493,000 during the year.

The Motor Vehicle Account meets the costs of all injuries involving motor vehicles on public roads. It is funded from the motor vehicle premiums and petrol tax. In the year to 30 June 1997 some 44,389 registered claims were made against this account. The cost of those claims, and the ongoing cost of motor vehicle injuries from previous years, was $289,443,000.

Table 8.24. ACCIDENT COMPENSATION CLAIMS REGISTERED BY ACCOUNT1

Account19931994199519961997

1Figures are not comparable with previous years. Year ended 30 June.

Source: Accident Rehabilitation and Compensation Insurance Corporation.

 (000)
Employers' account296266292291293
Motor vehicle account4744474644
Non-earners' account650688719712739
Earners' account289333378401418
Subsequent work injury account......0.20.190.1
Medical misadventure account0.21.62.12.11.8
            Total claims1,2811,3331,4391,4531,496

The pupils of St Michael's School, Taita, provided the message about accident avoidance for the 1998 calendar of the Occupational Safety and Health Service of the Department of Labour.

The Subsequent Work Injury Account meets the cost of work-related claims that involve a recurrence of an injury received while the claimant was with a previous employer. It is funded from the four principal accounts. In the year to 30 June 1997 it received 119 registered claims and total spending from the account was $803,000.

The Medical Misadventure Account meets the cost of injuries which result from error by medical practitioners or from rare and severe outcomes of medical or surgical procedures. It is funded from the Earners' and Non-Earners' Accounts. In the year to 30 June 1997 it received 1,794 registered claims and had total costs of $9,953,000.

Table 8.25. STATEMENT OF ACTUAL FINANCIAL PERFORMANCE AND MOVEMENT IN ACCOUNT RESERVES, FOR THE YEAR ENDED 30 JUNE 1997

 199519961997

1Lump sum entitlements have been phased out since 1992. 1995 was the final year in which significant amounts were payable.

2Backdated attendant care expenditure $216,355,000 less anticipated.

Source: Accident Rehabilitation and Compensation Insurance Corporation

Income$(000)
Employers' account premiums799,643955,5101,189,370
Motor vehicle account premiums281,280248,291249,195
Non-earners' account premiums165,489176,618180,252
Earners' account premiums228,833246,715282,165
Subsequent work injury account premiums371976803
Medical misadventure account premiums4,6997,7799,953
Sundry income857
Investment income49,67569,793164,009
            Total income1,529,9901,705,6822,076,604
Expenditure
Rehabilitation benefits
Vocational rehabilitation6,46310,33513,292
Social rehabilitation86,171104,543106,979
Primary medical treatment180,515192,044198,273
Hospital treatment23,88425,49624,716
Public health care costs106,938110,22388,855
Dental treatment9,39010,71810,365
Conveyance for treatment27,72331,58231,622
Miscellaneous benefits5,49710,6358,943
 446,581495,576483,045
Compensation benefits
Income maintenance776,647820,155844,195
Independence allowances12,34621,43726,922
Lump sums1131,21910,9524,751
Death benefits55,09956,51358,421
 975,311909,057934,289
Operating costs
Projects8,59730,24233,522
Scheme related5,1996,004
Core operating costs121,793122,216144,473
 135,589158,462177,995
Other payments
Collection fees30,11230,40731,118
Interest on borrowing3,9623,608
 34,07434,01531,118
            Total expenditure1,591,5551,597,1101,626,447
Operating surplus/(deficit)(61,565)108,572450,157
Less Net backdated attendant care expenditure155,0332
Operating surplus/(deficit)(61,565)108,572295,124
Movement in account reserves
Operating surplus(61,565)108,572295,124
Account reserves start of year445,878384,313492,885
Increase in revaluation reserve632
Account reserves end of year384,313492,885788,641

In the year to 30 June 1997 income totalled $2,077 million and total expenditure was $1,626 million. The surplus went into scheme reserves.

Accident compensation statistics. ACC collects a number of statistics on compensated claims. Compensated claims largely exclude injuries causing fewer 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 8.4, 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 Safety Authority or to the police. During the year ended 31 December 1996 there were 15,310 reported accidents resulting in 514 fatalities and injuries to 14,796 other people.

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 23.4, Road transport.

Table 8.26. ROAD ACCIDENT CASUALTIES BY TYPE, 19961

Classification of accidentsKilledSeriousMinorTotal

1Year ended 31 December.

Source: Land Transport Safety Authority

Overtaking or lane change35131476642
Head on (not overtaking)1345231,1681,825
Lost control or ran off road on straight533291,1521,534
Lost control or ran off road while cornering1226812,3283,131
Collision with obstruction1989428536
Rear end675902983
At intersections or driveways—Vehicles moving in same direction, one turning13105722840
Vehicles crossing paths, not turning201851,1001,305
Vehicles crossing paths, one turning111378541,002
Vehicles merging330219252
Vehicles moving in opposite directions, one turning right102271,1801,417
Vehicles manoeuvring199558658
Pedestrian crossing road41248625914
Pedestrian—other213852111
Miscellaneous254293160
            Total5142,93911,85715,310

Table 8.27. AGE OF PERSONS KILLED AND INJURED IN MOTOR ACCIDENTS1

Age groups (years)Killed2Injured
199419951996199419951996

1Year ended 31 December.

2Killed immediately or died within 30 days of accident.

Source: Land Transport Safety Authority

Under 5241717306298268
5-912208461490480
10-1491521761715667
15-196483943,2153,1692,690
20-2495100753,0062,9842,441
25-297373571,8181,8791,583
30-345152401,4341,4701,244
35-394129271,0381,1741,031
40-44383124815892808
45-49283223684752684
50-54322317510556494
55-59131613397425431
60-64101122347293308
65-699814337331279
70-74201713282265253
75-79171214247230215
80 and over261917224255212
Unknown age182418718692708
            Total58058251416,60016,87014,796

THE ROAD TOLL
Numbers killed

ROAD DEATHS
Death rate from motor vehicle accidents

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. A network of 45 people who co-ordinate community organisations working in road safety are also based in each local authority. The New Zealand Automobile Association also provides the New Zealand Defensive Driving Course for licensed drivers.

Advice on road safety policy is given to 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.

Table 8.28. ROAD USERS KILLED AND INJURED IN ROAD MOTOR ACCIDENTS, 19961

Type of casualtyKilledSerious injuryMinor injuryTotal

1 Year ended 31 December.

Source: Land Transport Safety Authority

Driver of—
    Car1821,1125,3826,676
    Taxi264351
    Van33170642845
    Truck1953204276
    Bus111315
    Motorcycle423677451,154
    Other132024
    Unknown44
Passenger of—
    Car1206132,8363,569
    Taxi221317
    Van20108460588
    Truck72478109
    Bus134145
    Motorcycle63279117
    Other1157
    Unknown11
Cyclist13142612767
Pedestrian633006691,032
Other and unknown121013
            Total5142,93911,85715,310

ROAD ACCIDENTS
Contributing factors by percentage, 1996

Table 8.29. ROAD ACCIDENT CASUALTIES AND RATES

December yearPersons killedPersons killed per 100,000 populationPersons injuredPersons injured per 100,000 populationTotal casualties per 100,000 population
Source: Land Transport Safety Authority
199165018.816,767486.0504.8
199264618.516,121462.5481.0
199360017.015,108428.6445.6
199458016.216,600464.1487.2
199558216.016,870463.1479.1
199651413.814,796398.0411.8

Table 8.30. INTERNATIONAL COMPARISONS: MOTOR ACCIDENT DEATH RATES

CountryYearPersons killedPersons killed per 10,000 population1Persons killed per 100,000 vehicles1

Note: Data is for countries that contribute data to the International Road Traffic and Accident Database.

Source: Land Transport Safety Authority

New Zealand199558115.92.5
Australia1995201711.21.8
United Kingdom19953,7656.41.5
USA199541,79815.92.2
Japan199512,67010.11.8
Canada19953,34711.31.9
Germany19957,45411.62.0
Sweden19955736.51.3
France19958,89115.33.1

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, formed in 1949, is the national organisation responsible for ensuring all New Zealanders participate safely in water activities—whether in home pools, at beaches, in lakes, rivers or out at sea.

The council represents the interests of 23 organisations across a range of aquatic sports and recreation, including the Swimming Federation, Surf Life Saving NZ, the Underwater Association, the Recreation Association, and Royal New Zealand Coastguard Federation. It is funded by the Lottery Grants Board and through sponsorship by organisations such as the Lotteries Commission.

The council ensures that water safety needs of the community are met both by funding its member organisations, and through the provision of key services—public education, information and statistics, research, and advice and consultancy. In 1996 the council awarded two Egarr Scholarships for post-graduate research into areas of water safety.

Two of twelve new lifejackets given away as part of an education campaign by Northland Regional Council to promote lifejacket use, October 1997.

The council continues to support and fund water safety education programmes. In August 1996, the council, Swimming Education NZ, and Royal Life Saving Society NZ launched Lotto SwimSafe— a new learn-to-swim and personal survival programme. This replaces the previous programmes and has been written to fit the new health and physical education curriculum requirements. The skills taught are the base for a lifetime of fun and safety in the water, especially important in a country where aquatic sports such as boating, surfing and fishing are enjoyed by so many people.

In 1997 the Lotto Take The Plunge campaign taught about 11,000 people to swim. It involved 800 volunteers in 190 pools. A new boating public awareness campaign was conducted jointly by the Water Safety Council, Maritime Safety Authority and Coastguard Federation which included using the Sky TV “Boating World" programme. The council brought together a group to examine the Fencing of Swimming Pools Act 1987 and concluded there was a need for research into the effectiveness of compliance and enforcement of the act. The council developed swimming pool guidelines which were distributed to every school in the country.

Table 8.31. DROWNINGS

ActivityYear ended 31 December
19901199111992119931199419951996P1997P

1 Figures for 1990-93 have been confirmed against coroners' reports.

Source: New Zealand Water Safety Council

Recreational
Boating3115223512241718
Surf sports211111
Whitewater sports314521
Recreational fishing611712118813
Underwater sports997711122010
Swimming2718713202222
Other recreational32336861
            Total recreational8157507166775364
Non-recreational
Immersion accidents4130312533223130
Road vehicles922151816241511
Other transport1112
Commercial fishing467103319
Other commercial22511
Rescuing others4452112
Suicides and homicides142419241318923
Miscellaneous213114
            Total non-recreational7590808368777667
            Total drownings156147134154134154129131

General accident statistics

In 1994 and 1995, accidents, poisoning and violence caused 6 percent of deaths from all causes. The largest single external cause of death in 1995 was motor vehicle crashes (612 deaths), followed by suicide and self-inflicted injury (543 deaths). Accidental falls accounted for 257 deaths in 1995.

Table 8.32. DEATHS FROM EXTERNAL CAUSES1

 199319941995
NumberRate per million populationNumberRate per million populationNumberRate per million population

1Registered during calendar year.

2Includes falls aboard ship and from horseback.

3Includes drowning from water transport.

Source: 1995 provisional data. 1993 and 1994 published data. New Zealand Health Information Service

Motor vehicle crashes617178.38602171.66612171.86
Other transport accidents29527.476719.116919.38
Accidental poisoning236.65185.13246.74
Accidental falls23267.0723466.7325772.17
Accidents caused by machinery185.20195.42205.62
Accidents caused by fire and explosion of combustible material3510.12267.41359.83
Accidents caused by firearms30.8741.1441.12
Accidental drowning and suffocation39326.8910931.0810429.20
Suicide and self-inflicted injury443128.08512146.00543152.48
Homicide5114.747019.964512.64
All other external causes13037.587922.539125.55
            Total deaths from accidents, poisoning or violence.1,740503.051,740496.161,804506.59

Male deaths by external causes. Males accounted for 69 percent of deaths from external causes in 1995. Males aged 15-24 years had the highest number of deaths for any particular age group, with motor vehicle crashes being the most common cause of death, followed by suicide. In 1998 the government will launch the New Zealand Youth Suicide Prevention Strategy to address New Zealand's high rate of youth suicide (New Zealand has one of the highest rates of youth suicide in the OECD).

Table 8.33. DEATHS FROM LEADING EXTERNAL CAUSES BY SEX AND AGE, 19951

Age group (in years)Motor vehicle accidentsAccidental drowningsAccidental poisoningsAccidental falls
MFMFMFMF
0-143427831-3 
15-241384420221164
25-341003522311172
35-444124154--31
45-543925911161
55-64241061--5-
65-7416132---116
75 and over15272---61121
            Total407205841453122135
Age group (in years)Suicide and self-inflicted injuryHomicideAll other causes of accidentsAll accidents. poisonings and violence
MFMFMFMF

1 Registered during calendar year.

Source: Provisional data. New Zealand Health Information Service

0-1442531897344
15-24122349418832597
25-3496208333927773
35-44671841301216060
45-5455183123413651
55-642982-2368925
65-74357--1668032
75 and over19911719105177
            Total4271163213168731,245559

Table 8.34. SITES OF FATAL NON-TRANSPORT ACCIDENTS,1 1993-95

Place of occurrenceNumber of accidentsRate per million of mean population
19932199419951993219941995

1Excludes surgical and medical misadventure and later complications, and late effects of injuries.

2Due to changes in the coding of the place of death, 1994 and 1995 data is not comparable to earlier years.

Source: Provisional data, New Zealand Health Information Service

Home (including home premise and vicinity and any non-institutional place of residence)15756753845162151
Farm (including buildings and land under cultivation. excluding farm and home premises)52011163
Mine and quarry1-1---
Industrial places and premises121124337
Places for recreation and sport101411343
Street and highway532381911
Public building122033369
Residential institution (rest-homes, hospitals, etc)529592152726
Other specified place73158218214561
Place not specified65136139193939
            Total3921,0531,105113300310

Table 8.35. DEATHS OF PRE-SCHOOL CHILDREN FROM ACCIDENTS AND VIOLENCE,1 1995

Cause of deathSexAge (in years)Total
1234

1Registered during calendar year.

Source: Provisional data. New Zealand Health Information Service

DrowningM21115
F2-1-3
Motor vehicle accidentsM5-229
F412310
HomicideF-1--1
All other external causesM44-311
F3--14
            Total male1153625
            Total female923418
            Total20761043
                Total 1994171111847

Deaths of pre-school children from accidents and violence. In 1995 the age-specific mortality rate for children aged from 1 to 4 years from accidents and violence was 19.9 per 100 000 population, compared to 20.0 per 100,000 in 1994.

8.6 Civil defence and fire safety

Civil defence

The Ministry of Civil Defence: Te Manatu Arai Whawhati Tata 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. District or city councils and regional councils form civil defence organisations and prepare appropriate plans. These plans draw on the resources of the councils, the emergency services, other agencies and volunteers. The Ministry of Civil Defence 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.

In May 1997 government approved the establishment of a new Ministry of Civil Defence. This has expanded responsibilities based on the concepts of “emergency management”. These responsibilities include:

  • Greater emphasis on risk identification and risk reduction.

  • Greater emphasis on achieving social and economic recovery after major events.

  • Encouraging local authorities and emergency services to better co-ordinate by forming emergency management groups which reflect community structures and local hazard-scapes.

  • A new responsibility for developing and co-ordinating government policy for the emergency sector.

There is a unit establishing the new ministry. During a transition period the existing Ministry of Civil Defence will continue its preparedness and response role.

The Civil Defence home page is: http://mocd.govt.nz

Natural disaster insurance

This is the responsibility of the Earthquake Commission (see section 24.3: Insurance and superannuation).

Fire protection

Fire protection involves fire safety and operational fire fighting. These services are managed nationally by the New Zealand Fire Service on behalf of the New Zealand Fire Service Commission. The primary emphasis on fire safety is determined by legislation in the Fire Service Act 1975.

New Zealand Fire Service Commission. The commission is responsible for ensuring all statutory requirements set down in the terms of the Fire Service Act 1975 are met. The commission is also the purchasing and policy setting agency.

The commission consists of three commissioners appointed by government with the Secretary for Internal Affairs being the fourth member. The commission is also the National Rural Fire Authority, set up under the Forest and Rural Fires Act 1977. The authority is responsible for co-ordinating 112 rural fire authorities which operate in areas outside the designated urban fire districts in which operational fire fighting is provided by the New Zealand Fire Service.

New Zealand Fire Service. The Fire Service has reorganised its operating structure to deliver improved decision-making response and resources to front line operations. Senior managers are specifically responsible for fire safety and the enhancement of fire safety technology and legislation.

There are eight fire regions: Northland with headquarters in Whangarei; Auckland the area from Warkworth in the north to Pukekohe; Bay/Waikato includes the Bay of Plenty, Coromandel. Waikato south to Turangi with headquarters in Tauranga; Eastern includes Gisborne, Hawke's Bay down to Pahiatua (Napier); Western includes Taranaki to Horowhenua (Palmerston North): Arapawa includes the remainder of southern North Island and Nelson/Marlborough (Wellington); Transalpine includes Canterbury (up to Kaikoura) and the West Coast (Christchurch); and Southern includes Otago and Southland (Dunedin).

The fire regions are responsible for fire safety programmes, managing the fire fighting resources, and the training and operational efficiency of brigades in the fire districts within them.

The majority of the 359 fire districts are staffed by volunteer firefighters. Nineteen of the 359 fire districts are served mainly by paid firefighters with some stations augmented by volunteers. In 1996-97 there were 1,636 paid and 7,898 volunteer firefighters in the New Zealand Fire Service.

The New Zealand Fire Service has a responsibility to fight fires in all urban fire districts and, to the extent that its ability to fight fires is not compromised, will respond to other emergencies at which its fire fighting resources can improve outcomes.

The net cost of funding the New Zealand Fire Service Commission, after allowance for miscellaneous income, is met by a levy on insured property which is collected by the insurance industry. This accounts for 92 percent of the funding with the remainder of the net cost being met by government.

For the year ended 30 June 1997 contributions from the levy totalled $143,702,000 while the government contributed $12,496,000. This compares with levies of $156,574,000 and a government contribution of $13,615,000 for the year ended 30 June 1996. Other spending funded by miscellaneous revenue amounted to $16,033,000 compared with $12,180,000 for the 1996 year.

Fire safety. The Fire Service Act 1975 requires the Fire Service Commission, as a matter of prime consideration, to take an active and co-ordinating role in the promotion of fire safety. This includes working with other agencies to achieve upskilling of community knowledge about fire through public education, encouraging the use of sprinkler systems, support of fire engineering qualifications at tertiary level, enforcement of fire safety law, rural fire prevention and provision of fire danger indices for various vegetation types in rural areas during the fire season.

Table 8.36. INCIDENTS ATTENDED BY FIRE BRIGADES

Year ended 30 June19931994199519961997
Source: NZ Fire Service
Fires
Structural fires4,0973,9333,6082,8412,813
Other property fires2,0172,4902,9322,8493,829
Chemical fires121174176169165
Chimney fires1,4981,3871,2031,1151,045
Rubbish and other fires4,8885,3275,6324,8535,666
Vegetation fires3,5024,6655,1723,2813,576
            Total, fires16,12317,97618,72315,10817,094
Hazardous substance emergencies
Flammable liquid spills1,9411,7561,6731,8031,953
Chemical/hazardous substances136164188258228
            Total, hazardous substance emergencies2,0771,9201,8612,0612,181
Vehicle incidents
Vehicle fires2,7122,6552,9382,8393,366
Vehicle accidents5271,3332,0922,2542,954
Rescue in or under vehicle1,6961,4831,450837827
            Total, vehicle incidents4,9355,4716,4805,9307,147
Medical emergencies
Co-responder calls----455
Emergency medical calls7029201,1201,2291,784
            Total, medical emergencies7029201,1201,2292,239
Other emergencies
Other pressure/rupture8050498069
Hazardous condition standby8431,1891,7362,0182,176
Special service incidents2,5922,3503,0802,4243,029
            Total, other emergencies3,5153,5894,8654,5225,274
False alarm calls
Malicious1,6371,5241,8221,6531,681
Defective apparatus/installation5,6565,7626,8266,0616,785
Accidental3,4883,7184,2334,8985,933
Good intent4,5195,3735,5285,1645,689
            Total, false alarm calls15,30016,37718,40917,77620,088
            Total incidents attended42,65246,25351,45846,64654,023

Fire statistics. Fifty-one people died as a result of fires during 1996-97, compared with 32 in 1995-96 and 43 in 1994-95.

Fire insurance is described in section 24.3 Insurance and superannuation.

8.7 Occupational safety and health

Primary responsibility for the provision of occupational safety and health policy advice and services is held by the Occupational Safety and Health Service (OSH) of the Department of Labour. The Accident Rehabilitation and Compensation Insurance Corporation (ACC) also plays a major role in workplace injury prevention (refer section 8.5 Accidents).

The predominant piece of occupational safety and health legislation is the Health and Safety in Employment Act 1992. Its principal object is the prevention of harm to employees at work, with three means of achieving this object:

  • Promoting excellence in health and safety management;

  • Prescribing, and imposing on employers and others, duties in relation to the prevention of harm to employees;

  • Providing for the making of regulations and approved codes of practice relating to hazards to employees.

The act sets out the responsibilities of employers, employees and others in control of places of work, to manage the risks they face in their day-to-day work. It provides for detailed guidance material to be created to assist those with responsibilities to meet the act's requirements and allows for regulations to be made for specific industries, processes or hazards (which are mandatory to comply with). The act also allows for approved codes of practice to be made, after consultation with industry (which are not mandatory, but are statements of preferred or best practice).

The Bromley sewage treatment plant which will have to obtain a new resource consent for the discharge of effluent after the year 2001, at present allowed twice a day into the Avon/Heathcote estuary.

Under the act, employers have primary responsibility for ensuring the health and safety of their workers by:

  • Providing a safe and healthy working environment;

  • Implementing effective hazard identification and control methods;

  • Providing training and supervision of their employees;

  • Involving employees in the development of procedures for dealing with hazards and emergencies; and

  • Recording and investigating accidents and incidents so that injury prevention activities can be undertaken.

Employees are also responsible for ensuring their work does not endanger the health and safety of themselves or others. People who control a place of work, the self-employed and principals to contracts also have responsibilities to protect the safety and health of employees and others at work.

The Occupational Safety and Health Service: Te Ratonga Oranga. OSH is one of six services within the Department of Labour. It provides policy and technical advice to the government and industry, promotes excellence in health and safety management, and undertakes a number of public safety functions, both within and outside workplaces. Its Internet address is: http://osh.dol.govt.nz

OSH have expertise in hazard management, industry requirements, engineering, science and technology, and medicine. The organisation maintains an extensive occupational safety and health information collection, which is available to external clients. Of the approximately 290 staff 175 are field staff who visited over 22,000 workplaces during the 1996-97 year.

Funding is through a levy on employers which is collected along with ACC levies, currently set at six cents per $100 of wages paid.

OSH's budget for the 1997-98 year is $21.6 million divided into providing three main outputs: policy advice ($1.560m), promoting excellence in self-managing occupational safety and health hazards in the workplace ($19,079m), and regulatory functions outside the Health and Safety in Employment Act 1992 ($0.969m).

The strategic direction of OSH is titled “Together to Zero: The Elimination of Workplace Fatalities”. This direction is a 5-year plan to target activities into the four main areas which are responsible for the majority of workplace fatal accidents: agriculture, construction, forestry, and occupational diseases that result in death.

By focusing on these areas, OSH aims to create an environment where workplace death and injury is viewed as unacceptable, costly and preventable.

OSH has focused on the areas where the most workplace deaths happen as this is the most extreme symptom of unsafe and unhealthy work practices. The service investigates all workplace fatalities and works closely with emergency services, local authorities, and defence forces in the area of explosives and dangerous goods and other emergencies where public safety is threatened. During 1996-97 emphasis was placed on a programme designed to improve compliance with the legislation by small businesses. OSH investigations numbered 7,976 in 1996-97. Prosecutions resulted in 170 defendants being convicted. OSH also surveys agents certifying the safety of hazardous equipment and audits places of work for compliance with the law.

OSH health and technical staff are responsible for the monitoring of international developments of relevance to New Zealand.

Occupational health. OSH maintains a Notifiable Occupational Disease System (NODS), with voluntary reporting of suspected cases by health professionals. OSH medical staff investigate all notifications of suspected occupational disease or illness, and this involved 1,919 cases in 1994-95.

Table 8.37. OCCUPATIONAL DISEASE NOTIFICATIONS

Disease categoryYear ended 30 June
1994199519961997P
Source: Occupational Safety and Health
Asbestos-related disease1031326771
Occupational asthma60978167
Other occupational respiratory disease11343124
Occupational disease due to chemical exposure891159491
Chronic solvent-induced neurotoxicity98637242
Occupational cancer1324
Occupational illness due to infection41496145
Occupational noise-induced hearing loss216575612597
Occupational overuse syndrome/osteoarthritis263760828826
Occupational skin disease439110636
            Total9251,9191,9541,803

Table 8.38. FATAL ACCIDENTS INVESTIGATED BY OSH BY INDUSTRY

IndustryYear ended 30 June
19931994199519961997
Source: Department of Labour Annual Reports, 1993-1997
Agriculture and hunting121641412
Forestry and logging16911119
Construction94161810
Other410141010
            Total4139455341

Contributors

  • 8.1 Ministry of Health; Health Research Council; Malaghan Institute of Medical Research; Medical Council; Dental Council; Nursing Council; Chiropractic Board; Pharmaceutical Society.

  • 8.2 Ministry of Health; PHARMAC.

  • 8.3 Ministry of Health; Alcohol Advisory Council: Abortion Supervisory Committee.

  • 8.4 Ministry of Health.

  • 8.5 ACC; Land Transport Safety Authority; Water Safety Council.

  • 8.6 Ministry of Civil Defence; Earthquake Commission; New Zealand Fire Service Commission.

  • 8.7 OSH, Department of Labour.

Special articles

Ministry of Health, Health Research Council, Ministry of Health, Health and Disability Commissioner, New Zealand Aids Foundation, Family Planning Association, Children's Health Camps, Family Planning Association, Health Sponsorship Council, Water Safety Council, ACC.

Further information

Health

Alcohol and Pregnancy. Alcohol Advisory Council, 1995.

Alcohol Consumption in New Zealand. Alcohol Advisory Council (annual).

Annual Report and Statement of Accounts. Pharmaceutical Society of New Zealand.

Annual Review. PHARMAC

Cancer: New registrations and deaths. New Zealand Health Information Service, Ministry of Health (annual).

Fetal and Infant Deaths. New Zealand Health Information Service, Ministry of Health (annual).

He Matariki. Public Health Commission (1995).

Hospital and Selected Morbidity Data. New Zealand Health Information Service, Ministry of Health (annual).

Māori and Alcohol. Te Puni Kokiri and the Alcohol Advisory Council, 1995.

Mental Health Data. New Zealand Health Information Service, Ministry of Health (annual).

Mortality and Demographic Data. New Zealand Health Information Service, Ministry of Health (annual).

Nga Matatini. Ministry of Health (1995).

The Public Health: Report of the Department of Health (Parl paper E. 10).

Progress on health outcome targets: The state of the public health in New Zealand. Public Health Commission, 1995.

Report of the Abortion Supervisory Committee (Parl paper E.28).

Report of the Alcohol Advisory Council (Parl paper E.26).

Report of the Residual Health Management Unit (Parl paper E.56).

The role of alcohol in road crashes. Alcohol Advisory Council, 1995.

“Muscle minding ... stay loose, avoid OOS” Educational material to prevent OOS produced by OSH for the meat, poultry and fish processing industries.

Safety

An Introduction to the Notifiable Occupational Disease System. Occupational Safety and Health Service, Department of Labour.

Annual Report of the New Zealand Water Safety Council.

Key Statistics. Statistics New Zealand (monthly).

Motor Accidents in New Zealand. Land Transport Safety Authority (annual).

Report of the Accident Rehabilitation and Compensation Insurance Corporation (Parl paper E. 19).

Report of the Department of Labour (Parl paper G. 1).

Report of the Earthquake and War Damage Commission (Parl paper B.11).

Report of the Ministry of Transport (Parl paper F.5).

Report of the National Poisons and Hazardous Chemicals Information Centre. National Toxicology Group (annual).

Report of the New Zealand Fire Service Commission (Parl paper G.8).

Report of the Health Research Council (Parl paper E.11).

Report of the Nursing Council of New Zealand (Parl paper E. 18).

Report of the Health Sponsorship Council (Parl paper E.45).

Chapter 9. Education

Three children with Down syndrome join their classmates in playground activity at a Northland school (a fourth was absent for the photo). On average one baby with Down syndrome is born in Northland each year.

9.1 Administration of education

Education agencies

Ministry of Education—Te Tahuhu o te Matauranga. The vision of the ministry is ‘Building a world-class education system in a lifelong learning society’. The Ministry of Education is responsible for: providing policy advice to the Minister of Education on all aspects of education from early childhood to post-compulsory, 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.

The ministry's World Wide Web address is: www.minedu.govt.nz

Early Childhood Development Unit—Nga Kaitaunaki Kohungahunga. The ECDU is a government agency created in 1989 to support the early childhood education of children 0 to 5 years of age. There are 10 offices throughout New Zealand with Pakeha, Maori and Pacific Island staff available to assist parents who have young children. Advice and support is given on an individual and group basis to assist people who are working in or setting up early childhood education centres. Seminars and workshops are also provided to assist people and organisations wanting information about early childhood education. Services provided include the following:

  • Support for the establishment of early childhood education services.

  • National information service on early childhood education.

  • Directory of early childhood education services.

  • Provision of early childhood education resources.

  • Promotion activities about early childhood education.

  • Operation of parent support projects.

  • Grants and advice and support to Pacific Island language groups.

  • Grants and advice and support to playgroups.

  • Professional development to licensed and chartered early childhood services.

  • Family-friendly workplace seminars for staff in participating organisations.

  • Advice to government and non-government organisations on early childhood issues.

In addition the ECDU is the New Zealand national centre for Parents as First Teachers (PAFT) which is a programme offering support and guidance for parents of young children (0 to 3 years) to develop their parenting skills and knowledge about the education and health of their young children.

Specialist Education Services—He Tohu Umanga Matauranga. Specialist Education Services (SES) is a Crown entity working with children and young people who have complex individual needs. It also supports families, schools and early childhood centres.

SES is contracted by the Ministry of Education to provide services to schools. It also provides a range of other additional programmes and services which schools, early childhood centres and other clients can purchase directly.

SES staff work in specialist teams, which may include a range of professional staff such as speech-language therapists, special education advisers, advisers on deaf children, registered psychologists, kaitakawaenga, visiting teachers, early intervention teachers and education support workers.

Early intervention—SES provides early intervention support for infants and young children from birth until six months after they enter school. All children with complex or multiple needs can receive a comprehensive early intervention service. The service includes advice, guidance and support for families and early childhood centres.

Inclusive services—Students with ongoing special needs qualify for a range of specialist assessment, support and programming services. SES works with learners in their own educational setting or community, to help them achieve optimal learning and inclusion. SES also provides co-ordinated specialist assessment, support and programming for many learners with moderate difficulties who require ongoing but irregular support.

Services for students with behaviour and learning difficulties—SES works with the most difficult students through the Behaviour Support Service, targeting students with severe, ongoing behavioural problems whose needs cannot be met by school-based teaching and support services.

Services include specialist behavioural assessment, intervention, monitoring and review. SES also works with schools to help them develop and extend their ability to support students with behaviour and learning problems.

Services for students with communication support needs—SES provides communication services for all students with severe communication difficulties, focusing on students in years one to three. Services include identification, assessment and appropriate programme advice for students with communication disorders and delay. SES also provides support to schools for students with moderate communication difficulties, including an assessment package and training for teachers in schools with a decile rating from one to three.

Services for Maori—SES is committed to developing excellent services to meet the needs of Maori clients in all service areas. The Poutama Pounamu Education Research and Development Centre also develops, trials and researches Maori resources and assessment procedures.

Career Servicesrapuara. Career Services' consultants deliver careers advice and information to help people choose work, education and training.

Career Services was established as a Crown entity in July 1990. It is directly responsible to the Minister of Education who appoints a board to oversee its work. Career Services 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.

Services include information and advice, curriculum support, facilitation of school-industry links and career counselling.

Being partly funded by the Crown, the document of accountability also allows the negotiation of contracts with other organisations, both public and private. Major clients include the New Zealand Employment Service, Accident Rehabilitation and Compensation Insurance Corporation and a range of organisations contracting career planning for their own staff or clients.

Education and Training Support Agency (ETSA) is a Crown entity governed by a board which is appointed by the Minister of Education. The agency's legislative mandate comes from the Education Act 1989 (and subsequent amendments) and the Industry Training Act 1992. The agency has an extensive regional structure with 13 regional office, associated sub offices, and a national office based in Wellington.

ETSA works through the Skill New Zealand strategy with Industry Training Organisations (ITOs), employers, training providers and trainees, to raise the skill level of New Zealanders.

ETSA is funded primarily through Vote Education under a Document of Accountability negotiated annually with the Minister of Education. It is responsible for the following training initiatives (described in Chapter 14):

  • Skill New Zealand

  • Training Opportunities Programme

  • Skill Enhancement

  • Te Ararau

  • Industry Training Fund

  • Commissioned Youth Action Training.

New Zealand Qualifications Authority—Mana Tohu Matauranga o Aotearoa. 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:

  • Promote improvement in the quality of education and training in New Zealand through the development and maintenance of 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—Te Tari Arotake Matauranga. The overall purpose of the Education Review Office (ERO) is to provide regular, independent, evaluative reports for the Minister of Education; the governing authorities and managers of schools, early childhood centres, and other education organisations; and parents and all those in the wider community with an interest in the performance of the education sector and the educational achievements of learners.

In the 1996-97 year ERO provided:

Assurance audit reports of individual schools and early childhood centres. These give information and analysis of the quality of management of the education sector, to inform and assist those concerned about the performance of educational institutions, in terms of their contractual undertakings (as specified in charters and legislation). In general, a school or early childhood centre will be audited by ERO every three to four years. In the year to 30 June 1997, 1,073 reports were provided (924 in 1996).

Effectiveness review reports of individual schools. These provide information and analysis of the factors affecting student achievement. The reports are designed to illustrate the difference made to students' educational achievement by the school involved. In the year to 30 June 1997, 359 reports were delivered (314 in 1996).

Education evaluation reports. These national assessments of aspects of the education system include management systems or structures, curricula content or delivery issues. They use information drawn from the assurance reports and effectiveness reviews carried out by the office. Education evaluation reports provide information about the performance of schools and early childhood services as a whole and are available free of charge from ERO. Eighteen were delivered in the year to June 1997 (8 in 1996).

From 1997-98 the Assurance Reports and Effectiveness Reports will become Accountability Reviews, in two groups: for pre-school service providers, and for schools and other education service providers. ERO will work to a baseline objective of reviewing each school at least once every three years, and each early childhood centre at least once every four years.

ERO is funded by the Crown, receiving $15.39 million in the year ended June 1997. It has around 160 staff members throughout the country, about 100 of whom are review officers. They work from seven area offices in Auckland, Hamilton, Napier, Wanganui, Wellington, Christchurch and Dunedin, and site offices in Whangarei, Rotorua and Nelson. The world wide web address is: www.ero.govt.nz.

ERO has a Maori unit, Te Uepu-a-Motu, which is responsible for issuing reports on Maori education in kohanga reo, kura kaupapa Maori, and Maori immersion classes in mainstream schools. A senior review officer for Pacific Islands education is based in Auckland. Reporting on students exempted from schooling (being homeschooled) is now undertaken when requested. There were 24 reports in the year to June 1997. Regular reporting on a three-yearly basis on all homeschooled children ceased in 1994.

Learning Media—Te Pou Taki Korero Whaiti. Learning Media Limited is a publishing company that specialises in producing educational resources for teachers and children. Those resources are produced in a variety of media—print, audio, video, and computer software. Learning Media's background in educational publishing goes back as far as 1907, when the first issue of the School Journal was published.

LML has been a commercial Crown-owned company since 1993. Most of its current work involves publishing under contract for the Ministry of Education, mainly:

  • Materials relating to the New Zealand Curriculum, including the actual curriculum statements and the supporting handbooks for teachers.

  • Such well-known publications as School Journal, the early-reading series Ready to Read, and the Beginning School Mathematics programme.

  • Maori language materials, such as the early-reading series He Purapura, the serials He Kohikohinga, Nga Korero, Te Tautoko, and Te Wharekura, and Te Ata Hapar a, a course of books and tapes for teachers learning Maori.

  • Pacific Islands resources in Samoan, Tongan, Cook Islands Maori, Niuean, and Tokelauan, distributed to schools throughout New Zealand and the Pacific region.

  • The New Zealand Education Gazette, the Ministry of Education's national information periodical for teachers published both in print and on-line on the Internet.

Learning Media also provides publishing services for public and private sector clients wishing to develop and distribute materials for schools and early childhood centres. Recent clients include the Museum of New Zealand, Te Papa Tongarewa, the Reserve Bank, the Electoral Commission, Curriculum Corporation (Australia), Creative New Zealand and the New Zealand Dairy Board.

Learning Media develops and publishes its own titles for sale to schools both in New Zealand and overseas.

The Ministry of Education pays for materials to be issued either free, or at a small charge, to schools. The public may purchase personal copies of most items at a normal retail price.

Teacher Registration Board—Te Poari Kairehita Kaiako. This is a Crown entity, established under the 1989 Education Act. It maintains a register of teachers who fit the requirements of the act to be of good character, fit to be a teacher, satisfactorily trained to teach and a satisfactory teacher in practice. Teachers are issued with a practising certificate valid for three years. There are 50,000 teachers with a current practising certificate. From 1997 renewal of the practising certificate will depend on a teacher demonstrating that they are still a satisfactory teacher. The names of teachers who have their registration cancelled are circulated to teacher employers.

Southern Cross Campus students carry pohutukawa trees for planting at the school.

The board is funded from the practising certificate fees paid by teachers.

Teacher registration is compulsory for teachers employed in all kindergartens, private and state schools. Teachers who do not meet registration requirements can be temporarily employed with a limited authority to teach, which must be renewed annually.

The Teacher Registration Board operates reciprocal registration with the Australian states of South Australia and Queensland. The board is part of the National Association of State Directors of Teacher Education and Certification (NASDTEC) in North America which is the world's largest teacher licensing authority. This gives New Zealand access to its clearing-house for checking the licensing of all North American teachers. Links are also maintained with the Department for Education and Employment in England and with the General Teaching Council for Scotland.

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 three to seven parent representatives, the principal of the school and a staff representative. One student enrolled full time in a class above Year 9 (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.

Boards establish a charter, which sets out the aims and objectives of the school. All school charters include the National Education Guidelines which contain a statement of goals for education in New Zealand as well as curriculum and administrative requirements. When boards are developing their charter they are required to consult with their local communities, and include local goals and objectives which reflect the particular aspirations of the school and their communities.

Boards of trustees are accountable for meeting the objectives in their charter and for managing the funds they receive from the government to run the school. They are required to present an annual report and statement of service performance to their community and the Ministry of Education.

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 and amendments. 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.

Other educational bodies

New Zealand Council for Educational Research—Te Rūnanga o Aotearoa mō te Whakawā i te Matauranga. See separate article.

Māori Education Trust—Te Kaupapa Matauranga mō te Iwi Māori. The purpose of the Māori Education Trust, as outlined in the Māori Education Foundation Act 1961, is to promote and encourage the better education of Māori, and to provide financial assistance for that purpose. These aims were reconfirmed in October 1993 when the Māori Education Foundation formally became the Maori Education Trust.

The trust administers and co-sponsors 25 scholarships, bursaries and grants for Māori attending secondary, tertiary and post-graduate courses both here and overseas. The sponsor parties include trusts set up by former prominent Māori and other individual New Zealanders as well as business and community organisations.

The trust co-sponsors, together with the New Zealand Post Primary Teachers Association, the national Māori speech competitions (Ngā Manu Korero), for secondary school students. These competitions are unique in that they allow Māori students to participate in both the Māori and English languages. Taonga are awarded that give both the successful student and their school considerable mana. Non-Māori New Zealanders may participate in the Māori language section.

EDUCATIONAL EXPENDITURE
As a percentage of GDP, 1993 and 1994 Direct public expenditure for educational institutions at all levels

The trust was set up to assist all Māori regardless of age, gender, tribal affiliations or geographic location, and this is still its kaupapa. The trust was, and still is, supported financially by both the government of the day, and New Zealanders, Māori and non-Māori, who care about education.

More recently the trust has developed some pilot initiatives under a programme called Whakamana Whanau. These programmes are aimed at improving educational opportunities for Māori students in primary and secondary schools. Some of these programmes have included Te Reo Māori. Maths, Science, Co-operative Reading, Learning to Learn and a Young Māori writers course and a summer school for young Māori artists. In 1997, in excess of $1.5 million was distributed for Māori education and at 31 December 1997 the trust had net assets of about $10.7 million.

Funding and administration

Early childhood education funding. A universal funding formula forms the basis for direct funding subsidies of chartered early childhood services. Services can claim funding for a maximum of six hours per childplace day, with a limit of 30 hours per week.

The funding formula for early childhood services varies according to the type of service, the quality standard met and the ages of the children enrolled. The current funding rates for licensed and chartered services, except kindergartens, are $2.43 per hour per child for children aged two years or over, and $4.84 per hour per child for under two-year-olds. For kindergartens, the rate is $3.24 per hour per childplace.

A higher funding rate of $2.70 per hour per child over two years of age and $5.38 per hour per child under two years of age is available for services meeting criteria which are higher than licensing requirements and are related to staff qualifications and staff-to-child ratios.

Education expenditure and funding

Table 9.1. GOVERNMENT EXPENDITURE ON EDUCATION1

Year ended 30 JuneEducation expensesGross Domestic ProductEducation expenses as percent of GDPTotal government expensesEducation expenses as percent of government expenses

1Estimated actual. Expenses figures from Annual Budget Statements. GDP from Statistics New Zealand.

Source: Ministry of Education

 $(million)$(million)percent$(million)percent
19934.53974,4266.131,42914.4
19944.62780,2975.829,63915.6
19954.80385,8755.630,40015.8
19964.90991,0455.431,74315.6
19975.353  32,97116.2

School funding. Compulsory schooling in New Zealand is funded by the government to varying degrees, depending on the type of school. Each state school is given a grant for operating costs and the board of trustees is responsible for making sure that the school is properly maintained. Expenditure is controlled by each school's board of trustees. The funding of capital works (building projects) is the responsibility of the Ministry of Education. 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 1993 a salaries grant for designated management positions has been paid directly to boards of trustees. Schools have the choice of Directly Resourced Salaries (DRS) or Central Delivery of their staffing entitlement. DRS provides boards of trustees with more opportunity to self-manage their schools.

Financial management of the schools is subject to review and audit by the Audit Office. Education management and attainment is reviewed by the Education Review Office.

All state schools are staffed and funded to deliver quality programmes to all their students. Supplementary funding is available on application for delivery of programmes to students with special needs, for innovative curriculum delivery in rural schools and for senior programmes in secondary schools.

Targeted Funding for Educational Achievement (TFEA) is designed to assist state schools with a significant proportion of students from backgrounds which are likely to cause extreme barriers to achievement. To decide how much extra funding to give to each school, the Ministry of Education gives each school a rating based on data from the Census of Population and Dwellings and from the school's own roll. Schools do not have to apply for TFEA funding. It is paid to them automatically.

Additional funding is also available to schools which run Māori immersion or Māori language programmes. The level of funding depends on the level of immersion of the programme.

Managing school property. The Ministry of Education has a Property Management Division which is responsible for the maintenance and development of around 2,300 state schools and their grounds nationwide with a total capital value of around $4.7 billion.

Does TV viewing have an effect on school learning?

OECD comparisons

New Zealand's education system stands up well internationally. Information contained in the OECD International Education Indicators Report, Education at a Glance (1996), places New Zealand in the top third of OECD countries, or around the OECD average, for most indicators.

New Zealand's participation of people under 30 years of age in education and training is now among the highest in the OECD. Participation in post-compulsory education and training for the 18-24 age group is now similar to that in other OECD countries, having risen from about 20 percent in 1985 to over 30 percent currently.

New Zealand's tertiary participation rates are in line with most OECD countries and the senior secondary school retention rate at ages 17 and 18 of about 51 percent is now around the OECD average.

The OECD report shows that 23 percent of New Zealand's adult population (25 to 64 years) has completed some form of tertiary education. This placed New Zealand in the top third of OECD countries in 1994. New Zealand's proportion of gross domestic product spent on education was 6.0 percent in 1993, above the 1993 OECD average of 5.3 percent.

This includes the management of building projects and teacher and caretaker housing; and the sale of surplus property. An important focus of development projects at existing schools is on removing any possible dangers to the health and safety of students.

The Property Management Division also manages the insurance of school buildings, provides funding for school furniture and equipment in new buildings, manages loans for capital works at integrated and independent (private) schools, and makes sure schools follow building, health and safety laws.

Planning for the future means being ready to meet the needs of a population which is growing and changing rapidly. Primary and secondary school rolls are expected to increase by some 125,000 (17 percent) by the year 2005. Immigration to New Zealand will play a significant part in that growth.

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.

School boarding bursaries. Boarding assistance is available to school pupils who need to live away from home in order to receive their education. The value of a school boarding bursary is $1,990 which is paid at the end of each school term.

School transport. School children in New Zealand who have to travel long distances to school in areas where there is no public transport may be entitled to use a school bus or get financial help for transport. Special education students also receive transport assistance, usually in the form of taxis.

Around 100,000 children use school buses each year. The bus operators are contracted to the Ministry of Education and to schools. About another 5,000 students receive transport allowances because they cannot use a school bus or need to travel a long distance to do so. Approximately 2,300 school bus services carried students to and from school each day in 1997.

Tertiary education funding. In 1991 as a result of reforms in the tertiary sector, a new system for funding tertiary institutions was introduced.

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 Education Act 1989.

In the 1998 academic year the university sector will receive a total of $684 million through EFTS bulk funding. The polytechnics will receive $402 million, and the colleges of education $51 million through EFTS bulk funding. Wananga will receive $6.8 million.

Overview of funding to the tertian sector—the total funding to the tertiary sector in 1998 is $1.14 billion, with a total of 148,841 EFTS places.

On the University of Otago students' Focus on Fees day, 29 May 1997, a student sits in “education's graveyard” among some of the political decisions that have seen “the death of free education”.

Private training establishments —the EFTS funding system was expanded to provide state funding to subsidise certain programmes in private training establishments (PTEs) in 1993. The same levels of accountability as state tertiary institutions are expected. Funding for PTEs amounted to $7 million in 1998.

Study Right—the Study Right policy, introduced in 1992, is integrated 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.

9.2 Early childhood, primary and secondary education

The term ‘early childhood education’ refers to the non-compulsory provision of education and care for young children and infants before they begin school. 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 between the ages of five and 19, and attendance is compulsory until the age of 16 years.

Primary school education is compulsory from six years of age. The vast majority of children usually starts formal schooling at the age of five. School entry is flexible throughout the year and children can be enrolled at any time after they turn five years of age. The final two years of the primary course, Years 7 and 8 (Forms 1 and 2), may be taken at a full primary school, an intermediate school, an area school, or a Year 7-13 (Form 1-7) school, depending on where a child lives. On completing Year 8 (Form 2), a child normally enters Year 9 (Form 3) of a secondary school, or alternatively. Year 9 (Form 3) in an area or Year 7-13 (Form 1-7) school.

The section on Compulsory schooling gives the new method of classifying students.

School terms

Primary schools are required to be open for at least 394 half days each year and secondary schools for at least 380 half days.

The New Zealand school year is divided into four terms of even length. Previously, it had been divided into three terms. The change was made after pilot studies showed that students became less tired and were able to concentrate and work better when terms were shorter and holiday breaks more frequent.

Early childhood care and education

Many early childhood services in New Zealand have evolved from individual and community initiatives resulting in a diverse system of early childhood education, with a high degree of autonomy. The main providers of early childhood education are kindergartens, playcentres, Pacific Island language groups, childcare centres, home-based services and kohanga reo. Early childhood education programmes are. on the whole, developmental and based in learning through play.

The numbers of children on regular rolls of early childhood services are given in Table 9.17 at the end of this chapter.

All early childhood centres wishing to receive government funding must be licensed and chartered. Licensing ensures that basic standards of quality are maintained. A charter sets out a centre's objectives and practices. Chartered groups receive funding direct from government in the form of a bulk grant.

Kindergartens. Kindergartens operate sessional early childhood education for children between the ages of three and five. In general, younger children attend afternoon sessions for three afternoons a week, while the older age group attend five mornings a week. Mobile kindergarten services are also available in some rural areas. All teachers in kindergartens are trained to diploma level. Parent participation is encouraged in the kindergarten programme.

Each kindergarten has its own\parent committee, but the management responsibility lies with regional kindergarten associations. These are linked to one of two national associations, the New Zealand Free Kindergarten Association (Inc) or the Kindergarten Federation.

Playcentres. Playcentres are parent co-operatives where parents take responsibility for the management and supervision of sessions. Children attending playcentre range in age from birth to school age. A trained supervisor or a group of parent-supervisors take overall responsibility for the playcentre programme. All parents are required to help supervise sessions on a rostered basis. Playcentres are administered through parent management committees at local and regional levels, linked to a national organisation. Training and parent education programmes, which can lead to an early childhood qualification, are developed by the national playcentre body and implemented through centre-based programmes.

Te kohanga reo. Kohanga reo, which translates to ‘language nests’, are sessional or all-day Māori language immersion early childhood institutions. Their prime aim is the maintenance of the language of the indigenous people of New Zealand, the Māori.

The centres are community based and are administered by local management groups affiliated to the Te Kohanga Reo Trust. The trust receives government funding and allocates it to individual kohanga reo. The trust has delegated responsibility for developing and approving charters for kohanga reo, based on government guidelines.

Pacific Island language groups. Pacific Island language centres offer programmes based on the values and languages of Pacific Island cultures. The centres cover a range of nationalities: Samoan; Cook Islands Māori; Niuean; Tongan; Tokelauan; Tuvaluan, and Fijian. They range from informal family playgroups, meeting once or twice a week, to licensed and chartered centres. These programmes emphasise language development, both in Pacific Island languages and English, and increasing parental knowledge in early childhood care and education.

Anau Ako Pasifika. The Early Childhood Development Unit is the grant holder on behalf of the Bernard Van Leer Foundation for the Anau Ako Pasifika Project, a home-based programme in early childhood care and education for Pacific Island communities. It is based in Auckland, Tokoroa, and Wellington.

Childcare centres. Childcare centres provide sessional, all-day or flexible-hours early childhood eduction services other than playcentres, kindergartens or kohanga reo. Each centre is autonomous and many are privately owned. Some are administered by individuals; others by a committee, trust, firm or organisation. They may describe themselves as private kindergartens, creches, infant centres, playcentres, preschools, or by a name which indicates their particular philosophy or purpose. Some childcare centres have all trained staff, while others may have a mixture of trained and untrained personnel. A considerable proportion of childcare services is community-based with a high degree of parent involvement.

Home-based services (family daycare). Home-based care (family daycare) is an organised system whereby parents of young children or babies are linked to caregivers, who are often themselves parents of young children. Trained co-ordinators supervise the provision of the early childhood education and care, and provide regular playgroups or workshop meetings for parents and caregivers.

Community playgroups. Community playgroups are community-based, non-profit-making groups of parents who meet to provide early childhood education for their children. Funded community playgroups are exempt from licensing but must meet criteria set down by the Ministry of Education. The active participation of parents is required at all sessions.

Parents as First Teachers (PAFT). Parents as First Teachers is based on the programmes developed in the USA by the Missouri State Department of Education. They provide a series of regular home visits by early childhood educators to parents with children from birth to three years of age. They have been developed in the belief that parents are their children's first and most important teachers. By empowering parents they will become more confident in their parenting role and participate more effectively in the development and education of their children.

The core elements of the programme provide individualised support through a structured learning series on child development and how to foster early learning. Programmes are funded directly by the government and cover most regions of the country, involving some 6,000 families. Māori and Pacific Island organisations are included in those contracted to provide PAFT programmes.

Compulsory schooling

Levels of schooling. Compulsory education in New Zealand is divided into primary, intermediate or middle, and secondary schooling.

Until 1995 students were classified as being in either juniors (for the first two years), standards (the next four years) or forms (two years at intermediate level and five years at secondary). In 1996 this was replaced with a single system identifying levels according to the number of years of schooling.

A child who starts primary school for the first time between July (when the school roll is counted) and 31 December of a school year and is aged between five and six years (with most children beginning on their 5th birthday) will be classified in Year 0.

Children who begin attending school for the first time between 1 January and before the July roll count will be classified as being in Year 1.

After the first year, the year number (year of schooling) of students is increased by one at the start of every school year. It may sometimes be necessary to reset the number at the start of Year 7 (when they move to intermediate level) or Year 9 (when they start secondary school) so that their whereabouts in the system can be correctly identified.

If children start school for the first time after the age of six, they will be given the same year of schooling number as other children of the same age.

Primary schools are the first level of compulsory schooling. They cater for children from the age of five years (Year 0) to the end of their 6th year of schooling (Standard 4). Children in their 7th and 8th years of schooling (Forms 1 and 2) may either be in a separate intermediate school or part of a primary, secondary or composite/area school.

Children from the Newtown Pacific Island Language Group, Wellington.

Secondary schools usually provide for students from Year 9 (Form 3) until the end of Year 13 (Form 7). Adult students who are returning to school adopt the year of schooling which corresponds to the level of the majority of the subjects they are taking.

Area schools which are usually based in rural areas, combine primary, intermediate and secondary schooling at one location.

Choices in schooling

While most students attend state-funded schools, there are a number of other choices for parents and students.

State schools. These are co-educational at primary and intermediate level but some offer single-sex education at secondary level. Some offer special programmes for adult students or run community education classes. There are growing links with universities, polytechnics and other tertiary and early childhood education providers.

Integrated schools. These are schools which were previously private and have now been integrated into the state system. They follow the state curriculum requirements but incorporate their own special character (generally a philosophical or religious belief) into the school programme. Integrated schools receive the same government funding for each student as state schools but the buildings and land are privately owned so they meet the costs of property development and maintenance from attendance dues.

Kura kaupapa Māori (Māori medium schools). Kura kaupapa Māori are state schools where teaching is in the Māori language (te reo Māori) and is based on Māori culture and values. The curriculum is the same as at other state schools. Kura kaupapa were developed to build on the success of kohanga reo (Māori language early childhood centres) in preserving and increasing the use of te reo Māori and one of the key goals is to produce students who are competent in both Māori and English.

Independent (or private) schools. Independent schools are governed by their own independent boards but are required to meet certain standards in order to be registered. Independent schools may be either co-educational or single sex. They charge fees, but also receive some funding from the government (currently equivalent to around 14 percent of the average total cost of state schooling). In future, funding support will be based on the percentage of the average total cost. It increased to around 25 percent in 1997. In 1998 support for senior students in years 11, 12 and 13 rose to 40 percent.

Boarding schools. These may either be independent or part of a state-funded school. Both systems charge boarding fees.

The Correspondence School. This is a national school, funded by the Ministry of Education, and administered by an elected Board of Trustees, composed of parents, community and school representatives.

The Correspondence School provides courses for early childhood, primary, secondary and adult students. Full-time students are enrolled for a variety of reasons, including distance from other schools, a wide range of special needs, medical and psychological problems, itinerancy and suspension from other schools. In some circumstances, the school provides courses for students in other New Zealand primary and secondary schools. It also offers valuable second chance education to adult students who wish to improve their qualifications. The school also provides some services on a fee-paying basis.

The Correspondence School also educates the children of New Zealand citizens overseas, where suitable schooling is not available. This allows these students to continue to work towards New Zealand school level qualifications.

A full range of courses, including practical subjects, such as art, clothing and textiles and science, is offered.

The total school roll of 19,790 at 1 July 1997 was made up of 810 early childhood, 208 special needs full-time, 1,239 students attending other primary schools, 7,977 students attending other secondary schools, 1,342 full-time primary, 2,574 full-time secondary, 5,640 adult students. The staff of 486 includes 23 early childhood teachers, 82 primary teachers, 255 secondary teachers, 12 regional representatives, and 114 administrative staff. A full listing of courses offered by the Correspondence School is available through the school's Home Page: www.correspondence.school.nz

Home-based schooling. Parents who want to educate their children at home can do so provided they maintain a standard of education equivalent to that of a registered school. They need to get approval to do so from the Ministry of Education and are given an annual grant to help with the cost of learning materials. Home-schooling parents may purchase teaching services from the Correspondence School if they wish.

Home schooling is growing rapidly in New Zealand but still involves less than 1 percent of total school enrolments.

A Correspondence School southern regional representative working from his car during a visit to Invercargill.

The curriculum

A programme of reform of the curriculum is currently under way. The New Zealand Curriculum Framework and national curriculum statements, will provide the basis for programmes in schools.

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 range 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

  • be inclusive of all students

  • foster success and achievement for all students

  • enable students to become independent and lifelong learners

  • ensure that learning progresses coherently throughout schooling

  • recognise New Zealand's bicultural identity

  • reflect the multicultural nature of New Zealand society

  • be co-operatively designed

  • 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 me nga reo; mathematics/pangarau; science/putaiao; technology/hangarau; social sciences/tikanga-a-iwi; the arts/nga toi; and health and physical well-being/hauora.

The Curriculum Framework sets out the essential skills to be developed by all students through the context of the essential learning areas. These skills are grouped under the following categories:

communication; numeracy; information: problem solving: self-management and competitive; social and co-operative; physical; and work and study.

The framework outlines the desirable attitudes and values which should form part of every student's learning.

The Curriculum Framework also outlines the policy for assessment at school and national levels. It 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 Curriculum Framework outlines: assessment at key transition points of school, at school entry, at the start of Year 7 (Form 1) and Year 9 (Form 3); records of school achievement; national monitoring of standards; and assessment for qualifications.

Curriculum statements.The New Zealand Curriculum Framework provides direction to the development of the more specific national curriculum statements. These supporting statements spell out in more detail the required learning described in the framework document. National curriculum statements. Mathematics in the New Zealand Curriculum, Science in the New Zealand Curriculum, and English in the New Zealand Curriculum have been distributed and are now mandatory in schools. The national curriculum statements: Technology in the New Zealand Curriculum; Chinese in the New Zealand Curriculum; Spanish in the New Zealand Curriculum were distributed to schools in the 1995 school year. Social Studies in the New Zealand Curriculum was published and distributed to schools in 1997. and Japanese in the New Zealand Curriculum in 1998.

The curriculum statements for senior sciences (biology, chemistry and physics) have also been published and distributed to schools.

Draft curriculum statements in te reo Māori, pangarau (Māori Mathematics in the New Zealand Curriculum) and putaiao (Māori Science in the New Zealand Curriculum) were published and distributed to schools in the 1995 school year. The draft curriculum statement Health and Physical Education in the New Zealand Curriculum was published and distributed for consultation in February 1998.

Primary school curriculum. The New Zealand curriculum for primary and intermediate schools comprises national curriculum statements. English in the New Zealand Curriculum, Mathematics in the New Zealand Curriculum and Science in the New Zealand Curriculum and syllabus statements (including oral and written language, reading, spelling and handwriting), social studies, art, physical education, health education and music. At intermediate level (Forms 1 and 2), the curriculum includes workshop craft and home economics. These syllabuses will be progressively replaced by national curriculum statements.

Secondary school curriculum. The New Zealand curriculum for secondary schools comprises national curriculum statements in English in the New Zealand Curriculum, Mathematics in the New Zealand Curriculum and Science in the New Zealand Curriculum and a set of syllabus statements for social studies, art, physical education, workshop craft, health education and music. These syllabuses will be progressively replaced by national curriculum statements. Students may also choose from a wide range of optional subjects, particularly at Year 11 (Form 5) to Year 13 (Form 7).

At He Huariki Tamariki, a Porirua satellite school based at the Canons Creek Fanau Centre, student Rosa feeds her 10-day-old daughter Jordan while she studies for a School certificate accounting exam.

Assessment of students. The main purpose of assessing students' progress is to improve both learning and the quality of learning programmes. A student's strengths and the areas needing development are identified to provide information for the teachers developing and delivering the programmes, the student, and the parents.

The main information will come from ongoing school-based assessment. In addition, information will be obtained at key points in the education system, such as at school entry and the start of Year 7 (Form 1) and Year 9 (Form 3) which will help teachers and the government to target teaching and resources more effectively.

Schools are expected to report to parents on the progress of their students. Usually schools give written reports, and parents can also meet teachers to talk about their children. Parents are entitled to ask for a meeting with their child's teachers.

National educational standards will be monitored on a four-year rolling cycle by assessing around 3 percent of 8 and 12 year-olds. The four-year cycle will cover all essential learning areas and essential skills in the New Zealand Curriculum.

National qualifications at secondary schools—now and in the future

Under the present system, middle and senior secondary school students may take the following national examinations.

School Certificate. This examination is taken by most students at the end of three years of secondary education (5th Form or Year 11). Except for 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 student may enter the examination in any number of subjects up to six and is credited with a grade in each subject. There are five grades: A, B, C, D, and E.

Sixth Form Certificate. This certificate is awarded on a single-subject basis to 6th Form (Year 12) students who have satisfactorily completed a course of one year in one or more subjects. Most students take five or six subjects. All candidates must study a course of English, although, as with School Certificate, they do not have to sit it as a Sixth Form Certificate examination subject. Grades are awarded on a 1 to 9 scale, grade 1 being the highest. Candidates are assessed internally but grade allocations are moderated externally.

Higher School Certificate. Higher School Certificate is awarded to students who have satisfactorily completed five years of full-time secondary schooling beginning at Form 3. At least three subjects must be studied at a level above Sixth Form Certificate. It is a course completion qualification and grades or marks are not awarded.

University Entrance, Bursaries and Scholarships Examinations. University Entrance, Bursaries and Scholarships Examinations is the final school examination and is usually taken in Form 7 (Year 13). Both percentage marks and grades (A, B, C, D, and E) are awarded. Entrance to university is achieved by gaining Higher School Certificate and three C grades or better and a B Bursary is awarded if the total marks are between 250-299. Scholarships are awarded for high performance in individual subjects and there are also top scholar awards. Small cash payments are made to those gaining bursaries and scholarships.

SCHOOL QUALIFICATIONS
Highest attainment of secondary school leavers

SIXTH FORM SUBJECTS

The National Qualifications Framework

The National Qualifications Framework brings together senior secondary education, industry training and tertiary education under one system. It is co-ordinated and administered by the New Zealand Qualifications Authority (NZQA).

Currently, the Framework is based on nationally agreed “unit standards”. These standards are like “building blocks” towards a qualification. Each standard belongs to one of eight Framework “levels”. Level 1 is comparable to entry-level learning (Year 11) while Level 8 is comparable to post-graduate degree learning.

The National Qualifications Framework has three qualifications—National Certificates, National Diplomas and degrees. National Certificates are generally earned at Levels 1, 2, 3 and 4 of the Framework. National Diplomas and degrees are generally earned at Levels 5. 6 and 7. Level 8 is regraded as post-graduate degrees.

The role of School Certificate and Bursaries examinations has yet to be decided.

Each learner receives a “Record of Learning”. It is a personalised list of the credits the learner has successfully achieved in the year. The Framework means learners can continue their studies wherever they wish—at school, university, polytechnic, a private or government training establishment, wananga, or even in the workplace. NZQA will add to a learner's Record of Learning when it has received their results from their training organisation.

Up to 30 September 1997, 220,000 learners had been ‘hooked-on’ to the Framework, and gained more than 4 million credits. There were 365 new qualifications registered, and 6,500 individual qualifications awarded.

In 1997, the Government Green Paper on the National Qualifications Framework proposed that the Framework be broadened to include qualifications that are not composed of unit standards.

Table 9.2. SCHOOL CERTIFICATE CANDIDATES1

YearNew Zealand school candidatesExtra-mural candidatesPacific Island school candidatesTotal candidates
Number enteredPercentage of totalNumber enteredPercentage of totalNumber enteredPercentage of total

1Based on number of candidates sitting examinations.

2Figures for extra-mural candidates not collected since 1991.

3 From 1991 Pacific Island figures include candidates from Nine and Cook Islands only.

Source: New Zealand Qualifications Authority

198960,99392.92,7984.31,8812.965,452
199061,31990.12,4433.64,3206.368,082
1991165,75899.5......29830.566,081
199266,09799.6......2770.466,374
199364,48999.5......3490.564,838
199464,22399.6......2830.464,506
199563,10799.6......2710.463,378
199663,47099.6......2790.463,749

Table 9.3. NUMBER OF SUBJECTS TAKEN BY SIXTH FORM CERTIFICATE STUDENTS

YearNumber of subjects taken
7654321
Source: New Zealand Qualifications Authority
 percentage of total
1989 18.745.211.66.96.511.1
1990 17.744.411.67.57.311.5
1991 17.142.212.38.18.112.2
1992 18.037.614.08.88.912.7
19930.118.834.814.98.98.813.6
19940.419.532.214.79.09.414.8
19950.419.731.314.39.29.215.9
19960.219.129.315.19.99.616.8

The Education Development Initiative (EDI)

The Education Development Initiative (EDI) policy was developed to help schools make the best use of their existing resources. It enables local communities to look at the way schooling is provided in their area. They can then make choices about any changes they want to recommend to improve educational opportunities for students.

Each EDI is unique and designed to meet local needs. All improvements are achieved by making better use of existing resources.

An EDI project will usually start when a school community decides to see what the programme can offer them. With the help of the Ministry of Education, the current education arrangements in the community are examined. Boards of trustees and communities then work with the ministry to decide on ideas for changes.

Any proposals are put to the community for comment. If the proposals are supported, a written agreement is drawn up setting out the agreed improvements and their benefits. This agreement and any other recommendations are then sent to the Minister of Education. If the changes are agreed to by the minister, they can be carried out.

Boards of trustees can decide at any stage whether or not they want to continue with the EDI process. By the beginning of 1996, over 40 groups of schools had used it to improve the facilities in their communities—most commonly by amalgamating small schools in their area.

Table 9.4. SECONDARY SCHOOL LEAVERS DURING 1996, BY YEAR OF SCHOOLING AND ETHNICITY

Years in attendanceNZ European/European/PakehaMāoriPacific IslandAsianOtherTotal by genderGrand total
MuleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemale
Source: Ministry of Education
Year 9374241324812218585170
Year 1032916228619247312418766934091,102
Year 112,1661,4241,2461,0872652011548655483,8862,8466,732
Year 124,8374,0631,4841,504413390253185101807,0886,22213,310
Year 139,89011,0121,5481,8547739821,1461,20620823513,56515,28928,854
Year 143692321501081328867382077384731,211
Year 152517211771044215949108
Total17,65316,9524,7764,7941,6411,7101,6491,53939537826,11425,37351,487
Total 199518,50717,8214,9445,1291,7811,7471,6781,49734337227,25326,56653,819

Table 9.5. SECONDARY SCHOOL LEAVERS DURING 1996, BY ATTAINMENT AND ETHNICITY

Highest attainmentNZ European/European/PakehaMāoriPacific IslandAsianOtherTotal by genderGrand total
MaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemale

1Minimum of 3 Cs in the University Bursary Examinations.

21 or more subjects irrespective of grade awarded.

Source: Ministry of Education

A or B Bursary or National
Certificate L3
3,6884,5041672238011466067066794,6615,59010,251
Entrance Qualification1 or 40 or more credits at L3 or above1,5271,605157206686916217125341,9392,0854,024
Higher School Certificate or 12-39 credits at L3 or above2,0451,99234639019132919118455552,8282,9505,778
National Certificate L228361072516  415495
6th Form Certificate2 or 12 or more credits at L2 or above4,1744,2559691,10344549828027276745,9446,20212,146 
School Certificate2 or 12 or more credits at L1 or above3,3922,6441,0921,17235430617211156555,0664,2889,354
No Formal Qualifications or Fewer than 12 credits at L12,7991,9162,0351,693501389183125117815,6354,2049,839
Total 1765316,9524,7764,7941,6411,7101,6491,53939537826,11425,37351,487
Total 199518,50717,8214,9445,1291,7811,7471,6781,49734337227,25326,56653,819

EARLY CHILDHOOD EDUCATION
Children attending 1 July 1997

Establishments

Educational institutions. Table 9.6 sets out the number of educational institutions providing education in the preschool, 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 9.6. NUMBER OF EDUCATIONAL INSTITUTIONS

Type of institution199519961997

1Early Childhood Development Unit.

2Counted elsewhere.

3Includes 4 restricted composite schools.

Source: Ministry of Education

Early childhood services
Kindergartens591594595
Playcentres562557545
Childcare—regular1,0931,1741,248
Childcare—casual363940
Childcare—homebased112118130
Te kohanga reo (including developing centres)774767705
ECDU1 funded playgroups (including unlicensed playcentres)482496505
ECDU1 funded Pacific Island language groups173178150
Correspondence School222
        Total early childhood services3,8233,9233,918
Primary schools
State primary2,1022,0972,094
State intermediate144143141
Private primary and intermediate666158
 2,3122,3012,293
Composite schools   
State composite (Area)3485158
Correspondence School111
Private schools454442
 9496101
Secondary schools
State year 9-14239239238
State year 7-14595982
Private secondary161918
 336339338
Special schools
State special494746
Private special222
Other Vote Education554
 565452
            Total number of schools2,7982,7902,784
Post secondary institutions
Polytechnics252525
Colleges of education554
Universities777
Wananga223
Total number of tertiary institutions393939
Private Training Establishments (PTEs)  542

Table 9.7. NUMBER OF STUDENTS ENROLLED∗

Type of institution199519961997

1Early Childhood Development Unit.

2Includes unlicensed playcentres.

3Students who are dually enrolled at health camps and hospital schools and at their regular school are counted on the roll of their regular school.

Source: Ministry of Education

Early childhood education
Kindergartens47,20846,96046,756
Playcentres19,10817,59617,058
Childcare—regular53,76957,58261,597
Childcare—homebased6,1146,5587,615
Correspondence School901993914
Te kohanga reo (including developing centres)14,26314,30213,505
ECDU1 funded Playgroups214,33012,56413,115
ECDU1 funded Pacific Islands Language Groups3,7093,7363,365
Early Childhood Total159,402160,291163,925
Schools
Primary Education (Year 1-Year 8)—regular students
State and State Integrated Schools
        Full Primary and Contributing357,437367,089377,097
        Intermediate54,57655,50755,624
        Composite/Area8,3999,25110,778
        Year 7-15 (previously Form 1-7)7,4307,2698,176
        Year 9-15 (Attached Intermediate)2,4802,5252,086
        Correspondence1,1801,2651,263
        Private schools13,25912,76513,115
 444,761455,671468,139
Secondary Education (Year 9-15)—regular students
State and State Integrated Schools
        Year 9-15 (previously form 3-7)178,132178,494178,910
        Composite/Area3,9284,5094,831
        Year 7-15 (previously Form 1-7)16,14416,13018,516
        Year 9-15 (Attached Intermediate)8,0978,1656,699
        Correspondence2,9883,3643,470
        Private Schools11,18111,24911,367
 220,470221,911223,793
Special Education
State schools attached classes4,0264,0394,160
State special schools11,8041,7201,772
Private special school488880
Other Vote Education special schools185176156
 6,0636,0236,168
Foreign fee-paying students
State schools3,4924,3495,000
Private schools461423468
 3,9534,7725,468
Ministry of Foreign Affairs and Trade scholarship students
State schools293298333
Private schools21014
 295308347
Adults in Regular Classes
State schools9,3518,6338,356
Private schools375
 9,3548,6408,361
            School total684,896697,325712,276
            Homeschooling4,594R4,785R5,351
Post Secondary Education
Formal programmes
Polytechnics91,231 R89,815R94,201
Colleges of education12,37412,39012,453
Universities104,502105,690106,486
Wananga7268341,088
Tertiary total208,833208,729214,228
Private training establishments 29,38934,068
            Total1,057,7251,100,519R1,129,848

Table 9.8. EQUIVALENT FULL-TIME TEACHING STAFF AT ALL EDUCATIONAL INSTITUTIONS

Type of institution199519961997
Source: Ministry of Education
Early childhood services—paid staff
Kindergartens1,6361,6561,646
Playcentres (includes unpaid adults on duty)1,4441,3041,376
Childcare—regular and casual5,2045,7966,279
Childcare—homebased co-ordinators166182216
Correspondence School191923
Primary schools
State20,00321,30722,289
Private459446418
Composite schools
State (Area)8559091,052
Private833860885
Secondary schools
State14,22514,39414,577
Private509553540
Special schools
State565544502
Private15916
Correspondence School
Primary and Secondary391385392
Post secondary—academic staff
Polytechnics4,7894,7584,835
Colleges of education548556581
Universities4,6924,8184,867
Wananga446673
Private training establishments......3,759

Waimauku pupils set off to defend their fragile coastline at Muriwai beach with pingao plants.

Teacher-pupil ratios. The ratios shown in table 9.9 have been calculated using the grading roll of a school divided by the staffing entitlement (measured in full-time teacher equivalents).

Table 9.9. STUDENTS TO STAFF RATIOS AT STATE SCHOOLS

YearPrimary/IntermediateCompositeSecondary
Overall ratio1Classroom ratioOverall ratio1Classroom ratioOverall ratio1Classroom ratio

Primary and intermediate ratios are based on July rolls while secondary and composite ratios are based on March rolls.

1Includes total full-time teacher equivalents employed from teachers' salaries, plus staff employed from operations funds.

Source: Ministry of Education

199219.7324.8714.1417.1216.1219.1
199320.3225.4714.1816.8615.9719.0
199420.3725.3413.8217.1015.9819.1
199520.6824.6314.1616.9915.6519.1
199619.923.315.018.215.818.6
199719.523.114.717.815.818.6

Projected student numbers. The table below gives actual 1 July rolls and projected rolls for 1997 to 2000.

Table 9.10. ACTUAL AND PROJECTED STUDENT ENROLMENTS (Medium Projection Series)

 YearEarly childhoodPrimary July (Year 1-8)Secondary March (Year 9-15)Tertiary (Ministry funded EFTS)

Note: Figures exclude school students in special classes and special schools.

1Current Cabinet approved level.

Source: Ministry of Education

Actual1991126,134415,632234,300 
 1992135,732417,086236,804114,152
 1993148,239422,904232,728131,585
 1994153,364429,246234,733131,519
 1995159,402444,443231,968139,916
 1996160,291456,554232,424142,962
 1997163,925468,139232,917145,686
Projected1998165,600479,300235,800149,617
 1999168,200487,800240,700152,6051
 2000171,000494,900246,700152,6051

Special education

Special education services have been developed for children with disabilities, learning difficulties or behavioural difficulties who have been identified as needing alternative resources to those usually provided in regular education settings.

Parents of children with special education needs have the same rights to enrol their children at the school of their choice as other parents. It is against the law for any educational institution to treat a student differently (for example by denying or restricting access to any services) by reason of any disability. The Education Act 1989 gives the Secretary for Education the power to direct an enrolment at a particular facility if a student's special education needs cannot be met in the setting of first preference.

Whenever possible, if that is their parents' preference, children with physical or other disabilities are enrolled with other children in ordinary classes. If necessary, buildings are modified, special equipment is provided and extra staff are appointed to help teachers. Advisers help staff develop suitable teacher programmes.

This help is provided through funding from the Ministry of Education to boards of trustees and through the Specialist Education Services (SES), a separate government organisation which has its own board. SES provides specialist advice, guidance and support for individuals, schools and early childhood centres.

Children with special education needs may be enrolled in a special school or in classes attached to a local school. These facilities increase the choices available to parents of children who require special education.

If a child's needs cannot be met within the ordinary school system, other services are available.

Students needing long-term hospital care can do their schooling in hospital. Some hospitals have registered state schools while others may have classes on site which are administered by local schools.

Residential special schools provide teaching and live-in care for children with major learning, behavioural or emotional needs. Children with sight or hearing disabilities may attend mainstream schools and may also have the opportunity to attend specialist residential schools.

Health camps, which children in need of rest and recovery may attend for short periods, have both classroom and outdoor educational programmes.

International students

Overseas students who wish to study at a New Zealand school can get information about fees, courses of study and academic entry requirements from the New Zealand Government Office in a student's home country or by writing directly to the school they wish to attend.

A student visa is required for any course of study longer than 28 days. Academic entrance requirements and fees will be specified by individual schools. It may be possible to pay annual fees by instalment. International students are not entitled to student loans or student allowances.

Accommodation. Students applying from overseas need a written guarantee of suitable accommodation before a student visa can be granted. They must also be able to show that they have enough funds to support them during their stay in New Zealand.

Schools offering study places may have hostel or boarding accommodation on site or be able to make other arrangements for students.

Immigration. Information on immigration regulations and requirements can be obtained from New Zealand Government offices or the New Zealand Immigration Service which has offices in some main city centres in New Zealand.

Additional 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.

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.

REAPs are 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.

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.

Advisory services. Primary and secondary advisers are employed on a full or part-time basis by colleges of education in Auckland, Wellington. Christchurch and Dunedin and the School of Education at the University of Waikato and Massey University College of Education. 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 Specialist Education Services also provide specialist assistance and advice.

9.3 Post-compulsory education and training

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, Waikato, 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.

Universities are controlled by their own councils, established under legislation drafted to maximise their autonomy consistent with the normal requirements of accountability for public funding. Each university sets its own programmes, and each university council sets 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.

Student support

The Student Allowances Scheme provides a range of allowances for students 18 years and over, on 1 January of the year they are attending a secondary school or tertiary institution.

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, those with an earning spouse, and those married to another student.

Table 9.11. ENROLMENTS AT TERTIARY INSTITUTIONS, AT 31 JULY 1997

 PolytechnicsColleges of EducationUniversitiesWanangaTotal
MaleFemaleTotalMaleFemaleTotalMaleFemaleTotalMaleFemaleTotalMaleFemaleTotal

Note: Table 52 in Education Statistics of New Zealand 1997 (Ministry of Education) gives breakdown of full-time and part-time students.

Source: Ministry of Education

Higher doctorate------71017---71017
Doctor of philosophy------1,5771,1712,748---1,5571,1712,748
Masters35101136830384,0174,4498,4661413274,0744,5938,667
Bachelors honours7815---1,1171,2662,3831715321,1411,2892,430
Post graduate diplomas151429432863294,0694,0448,133---4,1274,3448,471
Post graduate certificate103646---7070140---80106186
Bachelors5,07711,67316,7502469031,14937,02544,05181,07610319830142,45156,82599,276
Advanced diploma/graduate certificate4136281,0411969151,1111,4881,2692,7572551762,1222,8634,985
Certificate of proficiency191158349---2,0362,9064,942---2,2273,0645,291
Professional Assoc. diploma312298610---404585---352343695
National diploma9121,0922,00416120136------9281,2122,140
New Zealand diploma3,2255,2158,4407060130------3,2955,2758,570
Diploma (institution awarded)3,7874,3708,1571,5317,6829,2135201,2471,767561071635,89413,40619,300
Advanced Trade Certificate5148522---------5148522
NZ Certificate/Technician Cert.4,4466515,097---------4,4466515,097
Advanced Certificate/undergrad. cert.37830668423133135432567---5157691,284
Professional Assoc. Certificate2,5823,9916,573---1-1---2,5833,9916,574
National Certificate7,1984,37211,57015657---1029397,2094,45711,666
Trade Certificate/ITO3,3761,0014,377---------3,3761,0014,377
Certificate (institution awarded)9,37612,20421,580473513982173485651791423219,81913,04522,864
Intermediate certificate7317491,480---7399172---8048481,652
Introductory certificate3,6004,3817,9816152111312023388451333,8074,5618,368
Subsequent certificate149147296---------149147296
Licence13916155---------13916155
            Total46,47351,41997,8922,16610,44912,61552,50561,527114,0324926001,092101,636123,995225,631
Adjustment for multiple enrolments2,0181,6733,691121501623,3104,2367,5461345,3416,06211,403
Number of students44,45549,74694,2012,15410,29912,45349,19557,291106,4864915971,08896,295117,933214,228
Total for 1996            97,616116,644214,260
Total for 1995            96,419113,578209,997

Table 9.12. TERTIARY GRADUATES IN 1996

ISCED field, of study numberField of studyDoctorate Masters/Honours Post-graduate Diploma/ certificate Degree Diploma Certificate Introductory Certificate Subsequent CertificateTotal
MaleFemaleMaleFemaleMale FemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleTotal
Source: Ministry of Education
1General programmes    125123    2229377922186233419
8Literacy          74123333477  4076001007
14Education  3978331555251481375164885279411451635111438214935
18Art. music & handicrafts  193571027038721827526225497117  87310781951
22Humanities17612640062755941241251458109190319119136  223939256164
26Religion & theology  7221462032 2    582785
30Social, behavioural & communication skills  36117103245175364862502721826118415  79032174007
34Commercial & business  5412776924482193201455778829312931603491618445251879639
38Law  10589113024091 105122    5146211135
42Natural & applied sciences2 383297150681147922336951112160  176715283295
46Mathematics    104      43  14721
48Computing  7 401767311167648439294109  8086251433
50Medical & health63355118323641414741169491174218121878828863674
52Industrial trades & crafts  8654  2911221432154879723526954393134
54Engineering  1433126114981132351323 848  10091761185
58Architectural & town planning  383618132941835720129159  434270704
62Agriculture, forestry & fishing  443757351416718858490294931237310505061556
70Transport & communication      274  812  2541636222384
78Service trades    1116  541408181480128221  101118572868
84Mass communication   131863010013731341916  154340494
90Sport & recreation  12183226991111191002921822222  5764591035
92General foundation programmes          273087162  114192306
98Other programmes nec            7583  7583158
Total184129181717021581159374691019422464612580871712035260135097214902809949589
Adjustment for multiple completions  13161512377444861363432871201076496010061966
Number of graduates18412918041686156615817092975021604476546568841915249434493205302709347623

Table 9.13. UNIVERSITY STAFF EMPLOYED DURING THE WEEK 28 JULY-3 AUGUST 1997

DesignationFull-timePart-time staffTotal1
MaleFemaleMaleFemale

1Actual staff (head count). Full-time equivalents for total part-time staff are: male, 524.4; female, 1,105.3.

Source: Ministry of Education

 NumberNumberNumber
Academic Staff
Professor40246574509
Reader/Associate professor452385010550
Senior lecturer1,2723313451082,056
Lecturer7565902181901,754
Other teaching or combined teaching/research staff2002153033481,066
            Total of academic staff3,0821,2209736605,935
Research only staff
Research only staff30616695103670
Other research support staff12925848193628
            Total research only staff4354241432961,298
Executive staff
Vice-Chancellor7   7
Senior Academic Manager374 142
Senior Manager9328  121
Total executive staff13732 1170
Other staff
Technician737339521081,236
Librarian and library assistant10733972247765
Student/Community Services831592094356
General staff7681,8761526893,485
General services staff47012569230894
            Total of other staff2,1652,8383651,3686,736
            Grant total5,8194,5141,4812,32514,139
            Grand total 19965,8364,3441,5852,53714,302

BACHELORS DEGREES
Selected degrees completed in 1996, by field of study

TERTIARY STUDIES
Students enrolled in formal programmes at tertiary institutions on 31 July 1997, by field of study

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 only one parent's income to be tested to determine entitlement to a targeted benefit.

  • The independent circumstances allowance, where the student can be considered independent of both parents and receive the maximum targeted allowance.

Single students receiving a targeted student allowance and living away from their parental home, some married students, and those receiving a ‘with dependents’ rate of allowance may also qualify for an accommodation benefit, if they are receiving a targeted student allowance.

Rates of allowances are changed annually and are 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 enquires relating to student allowances.

Student loans—the Student Loan Scheme was established in 1992 to assist students to participate in tertiary education. Under the scheme eligible students may receive a loan from the government to cover:

  • Fees—the compulsory fees which are payable by students at enrolment (private training establishment students can only borrow up to $6,500 for fees).

  • 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. Part-time full-year and full-time part-year students can borrow a proportion of this. The amount is determined by the weighting of the course.

  • Living costs—$150 per week times the length of the course (less any entitlement to student allowances). The living component is only available to full-time students undertaking an approved course or programme.

Loans on which interest will be charged are repayable through the Inland Revenue Department. The level of repayments is 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.

Table 9.14. STUDENTS RECEIVING ALLOWANCES AT 31 JULY 1996

Allowance typeType of institution
Secondary schoolsPolytechnicsColleges of EducationUniversitiesWanangaPrivate institutionsTotal
Source: Ministry of Education
16-24 years—Targeted away from home1964,8611,0879,5431168716,451
16-24 years—Targeted at home5053,3873913,469604298,241
25+ Years—Away from home783,5387644,197765339,186
25+ Years—At home853212845716581,199
Accommodation benefit64112,5892,74518,1942081,79636,173
Couple allowance6871411397521342,006
Students with dependents2452,1764061,371442884,522
Independent circumstances611,3143642,101101644,014
Earning spouse—Away from home1281127 471
Earning spouse—At home1747519632410771,099
            Total allowances1,82029,6146,20561,4065034,16282,962
Adjustment for more than one allowance64112,5892,74527,5232081,79636,172
            Total students1,17917,0253,46022,4652952,36646,790
            Total students 19961,11717,1783,53824,0012501,93748,021

Table 9.15. ENROLMENTS IN PRE-SERVICE EDUCATION AT TERTIARY INSTITUTIONS, AT 31 JULY 1997

Programme/stagePolytechnics1Colleges of Education2Universities3Wananga4Total
MFTotalMFTotalMFTotalMFTotalMFTotal

1Polytechnics are: Auckland Institute of Technology: Christchurch Polytechnic: Manukau Institute of Technology; Northland Polytechnic; UNITEC Institute of Technology; Wairarapa Community Polytechnic; Wanganui Regional Community Polytechnic.

2Colleges of Education (COE) are: Auckland COE; Massey University COE; Wellington COE; Christchurch COE; Dunedin COE.

3Universities are: University of Auckland; University of Waikato.

4Wananaga are: Te Wananga o Aotearoa; Te Whare Wananga o Awanuiarangi.

Source: Ministry of Education

Early childhood bilingual------32831---32831
Early childhood education---301,2201,2501126127---311,3461,377
Primary bilingual teacher training6319525841131172---227597126401527
Primary immersion teacher training48125888146156176---77157234
Primary teacher training2665918953,9674,862147640787---1,0684,6725,740
Secondary teacher training68941624757001,17597180277---6409741,614
            Total1613625231,4996,1067,6052631,0351,2982275971,9457,5789,523
            Total students 19961,7146,7708,484

Students continue to protest about the burden of student loans.

Polytechnics

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 by polytechnics. Polytechnics provide a diverse range of academic, vocational and professional programmes and cover an increasing number of subjects at various levels of specialisation.

There are 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, The 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 one of New Zealand's largest education providers with 393 (141.5 FTEs) academic staff and a total staff of 719 enrolling more than 30,000 students annually. Nearly 75 percent of these students are already in paid employment and are studying part-time to enhance their career opportunities.

TERTIARY ATTENDANCE, 1997

The Open Polytechnic was established in 1946 and in 1996 celebrated its 50th anniversary as the only specialist provider of tertiary-level open or distance education. Schools of Accounting, Finance and Law; Information Science; and Management; and a Workplace Learning and Development Group are integrated within a single faculty based at its Lower Hutt campus, and there are regional centres in Auckland, Wellington and Christchurch. The Open Polytechnic offers more than 650 courses and programmes ranging from National Certificate through to degree level. It consults closely with industry to ensure that qualifications are directly related to the requirements of the workplace—now and in the future. All degrees and their majors are approved by the New Zealand Qualifications Authority. Students can enrol for most Open Polytechnic courses at any time of the year.

For some years The Open Polytechnic has taken an active role as a member of the international education community, and its policy of internationalisation has seen it forge alliances with overseas partners such as the Open Learning Agency of Canada, The Open College, UK. and Holmesglen Institute of TAFE in Melbourne. It continues to expand its relationships nationally and internationally through joint projects with universities or other tertiary institutions.

The Open Polytechnic has a stand-alone consultancy service based on its expertise in the design and development of courses, training programmes and workplace assessment for industry. Innovation and excellence in education are seen in the core generic course content, staircasing of qualifications, fully standard-based assessment and extensive industry involvement. All students have one-to-one access to their tutors through the use of toll-free telephone lines. The Internet site address is: www.TOPNZ.ac.nz.

National Vocational Qualifications. The New Zealand Qualifications Authority (NZQA) has responsibility for prescriptions examinations and certification for Advanced Vocational Awards qualifications (three-stage Technician Certificates and five-stage New Zealand Certificates), and Trade Certificate and Advanced Trade Certificate qualifications; responsibility for prescriptions and certification of the New Zealand Diploma in Business; and responsibility for administering the certification of New Zealand Diploma qualifications.

Technicians Certificates and New Zealand Certificates—Available in a variety of vocational areas such as civil engineering, electrical engineering, architectural drawing, land surveying and science. Courses for these qualifications are offered at accredited training providers such as polytechnics (although not all training providers offer all courses), may be on a full-time or part-time basis, and may be for a full year or half year duration. Distance learning courses may also be available. All these certificates require students to complete three years' suitable work experience.

Trade Certificates (and Advance Trade Certificates in a number of cases)—Available in a wide variety of industries such as plumbing, fitting and turning, sheet metal engineering, meat retailing and manufacturing jewellery. Courses for these qualifications are available at accredited training providers such as polytechnics, and are often available as a block course. Distance learning courses may also be available. The award of these certificates also requires practical training to be obtained through on-job experience.

The New Zealand Diploma in Business—A generic business qualification, endorsed by a number of industries such as marketing, management and insurance. Courses for the qualification are available at a number of accredited tertiary education providers, and are also available through distance learning. Most courses are of one semester (half year) duration and may be completed through full-time or part-time study.

New Zealand Diplomas—Available in Science and Surface Coatings Technology. They are advanced qualifications for students who have completed a New Zealand Certificate in the same or a related area.

Table 9.16. TECHNICIAN, TRADE AND INDUSTRIAL PRACTICE CERTIFICATES ISSUED

Year ended JuneNZ DiplomaTechnicians certificates three-stageNZ certificates five-stage course finalTrade certificatesAdvanced trade certificatesShorthandIndustrial practice
IntermediateBasic

1Includes typing and shorthand. Note: Some trade certificates and advanced trade certificates replaced in 1996 by Qualifications Framework National Certificates.

Source: NZ Qualifications Authority

1991161041,3722,507633..4,5215,150
19926526602,358608..4,55615,254
19935284721,974417..4,8035,482
19941214011,654375..3,6754,596
199513144561,681391..4,5242,295
19966213091,137346..2,4452,566

National Qualifications Framework qualifications (National Certificates and National Diplomas)— Based on unit standards, have been or are being introduced in a large number of industries, including many where there have previously been no nationally-recognised qualifications. Industries with national certificates or national diplomas already developed include dairying, furniture making, hairdressing, quantity surveying, and social services. In time, it is expected that all certificates will be replaced by qualifications which are registered on the National Qualifications Framework. National certificates and national diplomas generally are developed by industry training organisations or other standards setting bodies, with the NZQA responsible for the maintenance of the National Qualifications Framework. Training for these qualifications occurs on-job, off-job or in a mixture of these depending on the qualification.

Other qualifications—A wide range of other vocational qualifications has been developed. These include qualifications developed and administered by polytechnics and other tertiary training providers, national bodies such as the New Zealand Institute of Management and the New Zealand Air Force, and private training providers.

Teacher education providers

Teacher training courses in primary and secondary education are offered by a number of institutions including colleges of education, the schools of education at some universities, some polytechnics and other teacher education providers (see Table 9.11).

Teacher training in early childhood education, Maori language, business, music, physical education, trades and technology, special education, are 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 usual course of training for primary teacher trainees is a period of three years at a teacher training provider, followed by two years of satisfactory teaching in a state primary school. Courses may be shortened to one or two years for trainees who are university graduates or who are partway through degree courses or for mature trainees with relevant work experience.

Approximately 80 percent of primary teacher trainees undertake university degree study. Conjoint programmes are offered at all institutions.

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 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. Secondary teacher training can be undertaken at a variety of institutions.

Special education training. People 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.

Continuing education for teachers. A wide range of professional education papers is offered to teachers, most of them intended to provide credits towards diploma qualifications and service increments for certified teachers.

Colleges of education offer a range of approved after-hours advanced study courses for teachers who wish to advance their professional qualifications.

This sign—for ‘interpreter’ in NZSL—designates Stephanie Awheto and Riwia Fox, the first Māori graduates of the diploma in sign language from the Auckland Institute of Technology, April 1997.

The Professional and Community Education (PACE) programme at Massey University College of Education provides distance education courses to about 5,000 teachers, teacher aides, and other adults in teaching positions. It is a teaching department within the university, with a core of permanent professional tutorial and administrative staff. Other staff throughout New Zealand act as part-time tutors for these courses.

The Teachers Refresher Course Committee: Komiti Whakahauora Kaiwhakaako, started in 1944, is contracted to the Ministry of Education to offer 3-5 day residential courses during school vacations. About 1,000 teachers a year attend the courses in various centres, with travel assistance provided.

Wānanga

Wānanga (Māori tertiary institutions) are able to provide tertiary education and training, whilst assisting the application of knowledge regarding ahuatanga Māori (Māori tradition) in accordance with tikanga Māori (Māori custom). Two wānanga have qualified for funding on the same basis as universities, polytechnics, and colleges of education with effect from 1994, and are governed in the same way as other tertiary institutions.

Private Training Establishments

There are large numbers of private training establishments (PTEs) in New Zealand, of which about 800 are registered with the New Zealand Qualifications Authority.

PTEs which enrol foreign students are required by law to have course approval and accreditation from the New Zealand Qualifications Authority (NZQA) and to have course approvals for courses of more than three months' duration. The legislation provides protection for foreign students who pay tuition fees in advance.

PTEs offer a wide range of courses, often in niche markets. (Despite their limited number of funded EFTS places, the PTEs operating in provincial towns offer improved access to tertiary education and training, rather than actual competition for the state tertiary institutions.)

Similar standards of accountability apply under legislation for private training establishments as apply for universities, polytechnics, and colleges of education, in respect of those courses that are in receipt of state funding.

Skill New Zealand. Skill New Zealand is a strategy designed to raise the skill levels of all New Zealanders. It revolves around two key components—the government's Industry Skills Training Strategy and elements of the new National Qualifications Framework. The Industry Skills Training Strategy is designed to:

  • Increase the number of skills and occupations covered by industry-wide training systems.

  • Broaden the range of people who have access to recognised training.

  • Make training more responsive to industry needs.

  • Link training to the National Qualifications Framework.

  • Build and foster a training culture throughout New Zealand.

The National Qualifications Framework is an integral part of post-compulsory education and training policies. It spans general, vocational and industry-based education and training across the post-compulsory sector. The framework, made up of eight levels, with levels 1-4 comprising the new National Certificate and Levels 5-7 the new National Diploma. Initial degrees are at Level 7, and post-graduate degrees and diplomas at Level 8 of the Framework.

Continuing education

National Resource Centre for Adult Education and Community Learning. In 1990 the resource centre was established to: promote and assist the adult 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 projects; and accommodate national community learning organisations.

Community Learning Aotearoa New Zealand (CLANZ). This committee gives recommendations on the dispersal of grants to community groups for non-formal adult learning projects.

University Continuing Education. 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 continuing education 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.

School community education programme. School community education programmes provide educational opportunities for adults within the school community. The programme is developed by a programme co-ordinator with a sub-committee of the school board of trustees to meet the community's defined needs. Schools receive an allocation of tutor hours and associated staffing allowances. Fifteen percent of the allocated hours must be available for use by local community groups and all courses are required to fall under one of the following headings: adult basic education, training for volunteer community workers, parent education, personal development, or specific community need. Courses that do not fall under these categories can be offered on a self-funded basis.

COMMUNITY EDUCATION
Enrolments in 1996 and 1997∗

Polytechnics also provide a range of community education courses and programmes for adults both on-campus and through outposts established to give students in smaller centres the opportunity of participating in some form of tertiary education.

Distance education. The main agencies in the field of distance education are The Correspondence School (with 21,011 students enrolled at 1 July 1996), the Centre for University Extramural Studies of Massey University with 16,000 students enrolled for 31,000 courses in 1997, and The Open Polytechnic of New Zealand with 31,610 students enrolled for 1997.

Organisations contributing to non-formal and continuing education. Many voluntary organisations make some provision for continuing education. For most of them, such as the New Zealand Playcentre 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.

9.4 Māori education

Most Māori students remain within the mainstream education system. Increasing numbers are taking advantage of one of the most important developments in New Zealand education, the growth of Māori medium education. There is now a strong demand for Māori language education throughout the New Zealand education system.

This growth has been stimulated by the revival of te reo Māori (the Māori language). Language is at the centre of any culture and education system. The programmes developed to preserve their language have given Māori the opportunity to design the kind of education they want, and one that meets the needs of both adults and children.

The language revival began with the establishment of kohanga reo (Māori language early childhood centres) and continued with kura kaupapa (Māori medium schools). Growing numbers of Māori students are also enrolled in bilingual and Māori language immersion classes in mainstream schools.

However, research continues to show that educational achievement among Māori is still of concern. While Māori achievement has increased across the New Zealand education system in recent years, it has not kept pace with that of other groups.

The government is focusing on a number of important issues to promote and stimulate growth in Māori education. Development of Māori language immersion education is being pursued through three significant areas:

  • support for the recovery of te reo Māori as a living language

  • greater participation by Māori parents in education

  • the relative merits of mainstream education and alternative structures on addressing Māori educational needs.

Increased demand for Māori immersion education has progressed from the early childhood sector to the primary, secondary and tertiary sectors as a result of the increase in Māori language immersion programmes. The exploration of alternative educational achievement among Māori has occurred in an environment which encourages a diversity of educational provision. Alternative programmes are being looked at and trialed, and iwi (tribes) are being assisted to develop their own education plans.

Tunuiarangi McLean, a mature student, about to graduate with a diploma in business from Auckland University, April 1997.

Early childhood education

Since 1983 the number of Māori children enrolled in early childhood education has more than doubled. Between 1991 and 1996 Māori enrolments in early childhood education have grown by 39.7 percent.

In kohanga reo the Māori language is the medium of learning and instruction. Kohanga reo are unique in that they are the only childhood education service in New Zealand where Māori make up the majority of the children and have grown rapidly since the early 1980s. They are now the single most popular form of early childhood education for Māori families and in 1996, 14,032 Māori children were enrolled in kohanga reo. Kindergartens are currently the second largest providers of early childhood education to Māori children, catering for some 6,544 Māori children, followed by childcare centres (5,866), playcentres (1,557) other funded playgroups (1,456), home-based services (694) and Correspondence School (137).

Kura Kaupapa Māori

Māori medium education in schools is rapidly expanding. In 1990 there were six officially designated kura kaupapa Māori (Māori medium schools) catering for 190 students. In 1998 there will be 59 kura kaupapa. In 1996, 1,129 schools other than kura kaupapa Māori were offering some form of Māori medium education. These schools catered for 33,438 Māori students and 3,226 non-Māori students.

Māori enrolments at the senior secondary school level have been steadily increasing over the last 10 years. A relatively high, and increasing, proportion of Māori are in their second year of Form 5. Māori have also made up an increasing proportion of senior secondary school students in recent years, especially in Form 7. This increase may be due in part to both changes in the classification of Form 6 and Form 7 students and the raising of the school leaving age.

Tertiary education

In the tertiary sector during 1996, Māori were most likely to be enrolled in polytechnics, while non-Māori were most likely to be enrolled in university. A total of 24,228 Māori were enrolled in a formal programme of tertiary education. Māori made up 12.9 percent of university students, 14.2 percent of college of education students and 11.9 percent of all tertiary students. Where Māori were enrolled in university, they were more likely to be part-time. Māori were more likely to be full-time at colleges of education and polytechnics.

Three wānanga (tertiary establishments) have been established and are state funded: Te Wānanga o Aotearoa in Te Awamutu, Te Wānanga o Raukawa in Otaki, and Te Whare Wānanga a Awanuiarangi (Whakatane). In 1996 there were 734 Māori students enrolled at wānanga and 77 non-Māori. There are in excess of 10 other Māori organisations wishing to explore the concept of wananga status in the future. Government and iwi will assess the future development and growth of wānanga as a viable option for Māori participation in the tertiary sector.

Māori language education resources

The government supports targeting funds to increase teacher training in the Māori language to support the New Zealand Curriculum Framework in Māori and increase the supply of learning resources to meet the needs of Māori medium education. The government is also considering the impact of the Education for the 21st Century goals on Māori education.

Table 9.17. CHILDREN ON REGULAR ROLLS OF EARLY CHILDHOOD EDUCATION SERVICES at 1 July 1997

Type of serviceNumber of servicesAge in yearsTotalIncluded in total
Under 112345 and overMāori descentPacific Island
MaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleTotalTotalTotal
Source: Ministry of Education
Licensed Early Childhood Education Services:
Kindergartens5958142213176179819479531548914625523123941228154675666163060
Playcentres54570365214651249233921022444229818631818745188888170170581633314
Childcare—regular1248110398940773602782771321021898888440780427823931943296546159768542656
Childcare—homebased13042639010198629939798527526735983932400236137615837143
Childcare—casual (no regular roll)40           .........   
Correspondence School11 7940121841782392221754884269141332
Te Kohanga Reo675346341100491815891487186316971779161723123268126292131041295537
            Subtotal323425872386759466531296411891237552276628483266846915907607470970147044290286212
Developing Early Childhood
Education Services:
                
Early Childhood Development Unit funded:                
    Playgroups486872838152113331914174414321406837753685266446126127701186288
    Pacific Island Language Groups1502412522442483473154414263783675749170816573365233268
    Unlicensed playcentres1917243528464741382635621711743456812
Developing Te Kohanga Reo301293736455158435249632101914013981
            Subtotal6851142112318371645235221571972191312931204137106873381481688116753569
        Total391937293509943182981531614048257272467929776278888286968480779118163925307039781
Usually resident population at 30 June 199757430 56440 58600 58700 60090        
Percent of population on regular early childhood rolls12.6 31.4 50.1 85.9 96.0        

Ministry of Education World Wide Web site addresses

Ministry of Education: http://www.minedu.govt.nz

TeachNZ: http://www.teachnz.govt.nz

There are many publications accessible through the main address.

Contributors

  • 9.1 Ministry of Education; Early Childhood Development Unit, Special Education Service, The Careers Service-Rapuara; Education and Training Support Agency; New Zealand Qualifications Authority; Education Review Office; Learning Media Ltd, Teacher Registration Board, New Zealand Council for Educational Research: Teacher Registration Board; Māori Education Foundation; The Correspondence School, Open Polytechnic of New Zealand.

  • 9.2-9.5 Ministry of Education.

Special articles

Learning Media Ltd, New Zealand Council for Educational Research, The Correspondence School, Asia 2000, Statistics New Zealand, State Services Commission.

Further information

Annual Report of the New Zealand Council for Educational Research.

Education in New Zealand (Statistical Brochure), Ministry of Education (annual).

Education Statistics of New Zealand. Ministry of Education (annual).

Educational Research Series. New Zealand Council for Educational Research.

Ko e Ako 'a e Kakai Pasifika. Pacific Islands people's education in Aotearoa, New Zealand towards the twenty-first century. Ministry of Education. December 1996.

Māori in Education—Te Māori i Roto i Ngā Mahi Whakaaranga, Ministry of Education, 1993.

Māori participation and performance in education. A literature review and research programme. Ministry of Education, May 1997.

Mathematics performance of New Zealand form 2 and 3 students: National results from New Zealand's participation in the third international mathematics and science study. Ministry of Education, 1996.

Ministry of Education (1993), A Guide to The New Zealand Curriculum Framework. Wellington: Learning Media Limited.

Ministry of Education (1996), Annual Research Report 1995. Wellington: Ministry of Education.

Ministry of Education (1995), Changing Directions, Roles and Responsibilities in Education. Wellington: Ministry of Education.

Ministry of Education (1995), Education in New Zealand. Wellington: Ministry of Education.

Ministry of Education (1997), Governing and Managing New Zealand Schools: A Guide for Boards of Trustees. Wellington: Learning Media Limited.

Ministry of Education (1993), He Aratohu mo “Te Anga Mātauranga o Aotearoa" (A Guide to the “New Zealand Curriculum Framework"). Wellington: Learning Media Limited.

Ministry of Education (1996), Ngā Haeata Mātauranga: Ten Point Plan for Māori Education. Wellington: Ministry of Education.

Ministry of Education (1993), Te Anga Mātauranga o Aotearoa (The New Zealand Curriculum Framework). Wellington: Learning Media Limited.

Ministry of Education (1995), The Schools Support Project: Supporting Schools and Boards of Trustees in Self-Management. Wellington: Ministry of Education.

New Zealand Qualifications Authority (1992), A Qualifications Framework for New Zealand: An Introduction to the Framework. Wellington: New Zealand Qualifications Authority.

New Zealand Schools 1994—A Report on the Compulsory Schools Sector in New Zealand (Parl paper E.2)

Performance assessment in the third international mathematics and science study: New Zealand results. Ministry of Education, 1996.

Report of the Ministry of Education (Parl paper E.I)

Report of Early Childhood Development Unit (Parl paper E.50)

Report of Education Review Office (Parl paper E.39)

Report of Education and Training Support Agency (Parl paper E.46)

Report of Career Development and Transition Education Service (Parl paper E.27)

Report of New Zealand Qualifications Authority (Parl paper E.44)

Report of the Māori Education Foundation (Parl paper E.24)

Report of the Māori Education Trust

Report of the Pacific Islands Polynesian Education Foundation (Parl paper E.21)

Report of the Teacher Registration Board.

Science performance of New Zealand form 2 and 3 students: National results from New Zealand's participation in the third international mathematics and science study. Ministry of Education, 1996.

Secondary Staffing Survey. Research and Statistics Division, Ministry of Education (annual).

Tertiary Education Statistics, Ministry of Education, (annual).

Chapter 10. Justice and law

A new portable timber mill set up at Turangi turns logs which are undersized or windblown into sawn timber. This is useful employment training for a gang of 10 inmates, and supplies low-cost timber to public prisons.

10.1 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. 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.

The salaries of judges are determined annually by the Higher Salaries Commission under the Higher Salaries Commission Act 1977. Salaries may not be diminished during a judge's commission. A Higher Salaries Commission determination in December 1997 set these rates: Chief Justice, $234,000 plus an annual expense allowance of $7,900; Court of Appeal president, $230,000 plus $6,500 expenses; Court of Appeal judge, $214,000; High Court judge, $204,000; Master of the High Court, $163,000; Chief District Court judge, $195,500; District Court judge, $163,000; Principal Family Court judge, $175,500; Principal Youth Court and Principal Environment Court judges, $167,500; Chief Employment Court judge, $204,000; Employment Court judge, $190,000; Chief Māori Land Court judge, $182,500; Deputy chief Māori Land Court judge, $175,500; Māori Land Court judge, $163,000. High Court judges receive an annual expense allowance of $5,600, and District Court judges $4,100.

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. 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.

In May 1995 the Solicitor-General reported to a Cabinet committee on matters relating to the availability of appeals to the Privy Council. Since the 1996 general election, the government has decided to retain the present appellate structure.

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 Act 1908.

The primary function of the Court of Appeal is to determine 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 also has 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 six other judges of the High Court appointed by the Governor-General as judges of the Court of Appeal. Additional judges of the High Court may be nominated by the Chief Justice to sit on the Court of Appeal. The judges of the Court of Appeal are also judges of the High Court. They have seniority over all other 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.

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 36 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 by notice in the New Zealand Gazette dated 26 February 1991 ordered that the commercial list at Auckland 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 judgements, 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 five Masters: Master Anne Gambrill, Master T Kennedy-Grant and Master J A Faire (Auckland); Master J C A Thompson (Wellington); and Master G J Venning (Christchurch).

Table 10.1. JUDGES OF THE COURT OF APPEAL AND HIGH COURT1

1As at 31 December 1997.

Source: Department for Courts

Judges of the Court of Appeal:Rt Hon Sir Ivor Richardson, President of the Court of Appeal, Rt Hon Thomas Gault, Hon John Henry, Rt Hon Ted Thomas, Hon Sir Kenneth Keith, KBE, Hon Peter Blanchard, Hon Andrew Tipping, Rt Hon Sir Thomas Eichelbaum, GBE, Chief Justice of New Zealand (ex officio).
Permanent Judges of the High Court:Rt Hon Sir Thomas Eichelbaum, GBE, Chief Justice of New Zealand, Hon Rodney Gallen, Hon Richard Heron, Hon Tony Ellis, Hon Robert Smellie, Hon Andrew McGechan, Hon Anthony Doogue, Hon Noel Anderson, Hon Bruce Robertson, Hon Robert Fisher, Hon Paul Neazor, Hon Peter Penlington, Hon Grant Hammond, Hon Dame Silvia Cartwright, DBE, Hon David Morris, Hon John Hansen, Hon Hugh Williams, Hon Sian Elias, Hon David Baragwanath, Hon Lowell Goddard, Hon Graham Panckhurst, Hon Lester Chisholm, Hon Peter Salmon, Hon Barry Paterson, Hon Warwick Gendall, Hon Bradley Giles, Hon Judith Potter, Hon John Laurenson, Hon Tony Randerson, Hon Willie Young.
Acting or Temporary Judges of the High Court:Hon Sir Graham Speight, Hon Laurence Grieg, Hon Colin Fraser, Hon Sir Ian Barker, Hon David Tompkins.

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 110. 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 do not attract a maximum fine in excess 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 at present of the Chief Judge of the Employment Court and three other judges appointed from time to time by the Governor-General. Qualifications for appointment, tenure and retirement age are the same as those applying to High Court judges. 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.

A major part of the work of Community Constables is ‘walking the beat’ and talking to people. Their visibility helps solve or prevent problems related to community safety.

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, mental health compulsory treatment applications, protection of personal property rights applications and similar matters. They may state a case on a point of law to the High Court or transfer complex proceedings to that court.

Youth Courts. 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.

Māori Land Court and Māori Appellate Court. These courts are constituted under the Te Ture Whenua Māori Act 1993 and have jurisdiction to hear matters relating to Māori 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 Māori Land Court are also judges of the Māori Appellate Court. Three or more of the judges have power to act as the Māori Appellate Court.

The Māori Land Court or the Māori 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 Māori Land Court and the Māori Appellate Court. See section 16.1, Māori land for more information.

Environment Court. This court is constituted under the Resource Management Act 1991. The court consists of not more than eight Environment Judges and at any one time any number of Environment 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 Māori Affairs. Any number of alternate Environment Judges and Deputy Environment Commissioners may hold office.

The Environment Court has jurisdiction to determine appeals, applications, submissions on resource consent applications and references on local authorities' plans under the Resource Management Act. It also makes recommendations on water conservation order applications. These are predominantly concerned with land and water use.

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, one 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 29 other mediator and/or adjudicator members, appointed from time to time by the Governor-General. The tribunal is located in Auckland, Hamilton, 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.

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 58 part-time referees to service the 66 tribunals.

Complaints Review Tribunal. Formerly the Equal Opportunities Tribunal, this tribunal was set up under the Human Rights Commission Act 1977, and is continued under the Human Rights Act 1993. Its function is to deal with complaints of discrimination and breaches of privacy, which have not been settled by either the Human Rights Commission, the Race Relations Conciliator or the Privacy Commission.

The tribunal has powers similar to a District Court. It hears the complaint from the beginning and makes a decision. It can award damages and order other remedies. Each sitting of the tribunal is chaired by a barrister or solicitor with 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. They are set up on similar lines to disputes tribunals—the hearings take place at District Court premises under the authority of part-time adjudicators. See also section 22.1, Housing.

Waitangi Tribunal. This tribunal was set up under the Treaty of Waitangi Act 1975 to consider claims by the Māori 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 6.4, Māori population.

The Planning Tribunal has now been replaced by the Environment Court (see above).

Sources of law

The law of New Zealand consists of the common law, statute law enacted by the New Zealand Parliament, constitutional conventions, 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. 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 Habeas 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: Te Aka Matua o te Ture is an independent, publicly-funded, central advisory body established by the Law Commission Act 1985 to undertake the systematic review, reform and development of the law of New Zealand. It is funded through Vote Justice, has a membership of five commissioners, and maintains a staff of approximately 15 legal researchers and a director. It has a substantial, fully-staffed law library.

The purpose of the Law Commission is to help achieve law that is just, principled, and accessible, and that reflects the heritage and aspirations of the peoples of New Zealand. In developing its proposals, the commission recognises the Treaty of Waitangi as the founding document of New Zealand, and takes account of community and international experience.

The commission may initiate projects or be given references by the Minister of Justice. In making its recommendations the commission is required to take into account te ao Māori 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 Law Commission's reports are presented to the Minister of Justice, tabled in Parliament, and published. Recent reports cover the law of succession, a review of the Official Information Act 1982, reform of the procedure for habeas corpus, the use of anonymous witnesses in criminal proceedings, and the role of Parliament in the making and acceptance of international treaties. Major reports during 1998 will cover the law of evidence (proposing a complete codification of the existing law) and barriers which women in New Zealand (including in particular Māori women) face in accessing the justice system.

Other work in progress covers three main areas: Criminal law and procedure, including a review of the jury system and an examination of alternatives to formal prosecution: Commercial and common law, including legal issues in respect of electronic commerce, a review of aspects of insurance law, and a project relating to the marketing of undivided interests in land (currently a grey area which falls between securities law and land law, and affects ventures such as retirement villages) and a range of work in public law, including examining the effect of the Treaty of Waitangi on the legal system, considering the legal status and liability of the Crown, the payment of compensation to persons wrongly convicted of offences, and examining ways of reducing the incidence of injury and death from systemic accidents.

The commission also has a statutory power to advise on the review of any aspect of the law conducted by government departments or other public sector entities. Advisory work is an important way in which the commission can assist in achieving clear and accessible law. One aspect of this function is assistance provided to the Legislation Advisory Committee, an independent committee appointed by the Minister of Justice to advise on legislative issues and individual items of legislation.

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.

Youth Law Service worker Jane Roseveare advises young people on the law,

  • 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 debt, demand, or damage, or value of the chattels claimed, is no more than $200,000. The jurisdiction was increased from $50,000 to $200,000 by an amendment to the District Courts Act 1947 on 1 July 1992. In proceedings for recovery of land the courts have jurisdiction if the rent payable (if any) does not exceed $62,500 a year or where the value of the land does not exceed $500,000.

The District Court Rules 1992 also came into force on 1 July 1992. They are not merely a revision of the 1948 rules, but a new set of rules designed to bring procedures in the District Court into line with those in the High Court. The rules apply to all matters within the civil jurisdiction of the District Court, except where other rules provide procedures for any class of litigation.

Jury service

Every person between the ages of 20 and 65 years (inclusive) is eligible for jury service, subject to some exceptions. Those involved in justice-related occupations cannot serve. A person may be excused if jury service would cause serious inconvenience or hardship. Also precluded are people with recent prison records and those who have been imprisoned for more than three years.

Legal aid

The Legal Services Act 1991 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 and establishes the Legal Services Board and District Legal Services Committees. The board is responsible for administering 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 over 20 such offices nationally, of which 19 are largely funded by the Legal Services Board. They receive additional funding from a variety of sources (though this had fallen considerably since the Legal Services Board came in), including city councils, the Auckland District Law Society, and lottery grants. The amount of funding varies from centre to centre. Staff are paid out of these funds although there is a large component of voluntary assistance provided by lawyers and others.

Crown Law Office

The Crown Law Office is a government department providing legal advice and representation to government in matters affecting the Crown, and in particular, government departments. It has two primary aims. First, to ensure that the operations of executive government are conducted lawfully and second, to ensure that the government is not prevented, through the legal process, from lawfully implementing its chosen policies. The work of the Crown Law Office as a whole contributes to the government's current strategic goals of protecting the legal interests and supporting the responsibilities of the executive government and its agencies, maintaining law and order, and serving the interests of justice in the community.

The Solicitor-General is the chief legal advisor to the government (subject to any views expressed by the Attorney-General), and is its chief advocate in the courts. In addition the Solicitor-General is chief executive of the Crown Law Office and responsible for the conduct of prosecution of indictable crime. The office of the Solicitor-General is entrusted by statute with specific rights, duties and functions and is also responsible for performing most of the statutory and ex-officio duties of the Attorney-General.

The Crown Law Office is organised into nine teams: Bill of Rights Act, Commercial, Commercial Regulatory, Criminal and Crown Solicitors, Employment Education and Welfare, Land and Resource Management, Law Officer Functions, Taxation and Public Finance and Treaty Issues and International Law. Each team is staffed by Crown Counsel, Assistant Crown Counsel and support personnel. The Crown Law Office participates in an annual Summer Clerk programme and Pegasus Scholarship Programme which provides law students with an opportunity to gain first-hand experience of issues dealt with in the office.

Reporting to the office is a network of Crown Solicitors located in main centres around New Zealand. Crown Solicitors are private legal practitioners appointed on the recommendation of the Attorney-General, and by warrant of the Governor-General, to conduct indictable trials on behalf of the Crown in all High Court districts. The Crown Solicitors Regulations 1994 give the basis for their remuneration.

1997 was a year of diverse and complex issues for the Crown Law Office. Criminal cases raised issues about anonymity of witnesses in criminal trials, which resulted in the introduction of legislation, and the issue of battered women's syndrome was the subject of a petition for special leave to appeal to the Privy Council. There have been ongoing issues relating to Māori customary fishing rights. The longstanding Ngai Tahu claim was settled. The social front has seen the issue of same sex marriages go to the Court of Appeal, and claims for damages relating to the health effects of exposure to asbestoses and to smoking. Immigration and refugee cases have raised issues relating to the extent of the application of the New Zealand Bill of Rights Act, and the Attorney-General as protector of charities intervened in respect of the Centrepoint community. The fate of the Kaimanawa wild horses was the subject of legal proceedings, in the High Court and then in the Environment Court, seeking a declaration that the muster was illegal. All these cases reflect New Zealand's evolving society and culture in changing times.

10.2 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 less serious offences. These include offences against public order, such as disorderly behaviour and fighting in a public place, and offences against persons or property, such as common assault and wilful damage.

A recent amendment to the Crimes Act has created new offences in the following areas:

Sexual conduct with children in other countries. It is now unlawful for a New Zealand citizen or resident to engage in any sexual conduct with children which, if done in New Zealand, would constitute one of the relevant sexual offences in the Crimes Act. This effectively means that children in other countries are accorded the same status and protection under New Zealand law as exists for children in New Zealand. Persons convicted under these provisions are subject to the same maximum penalties as would apply if the offence had taken place in New Zealand. A second new offence makes it unlawful to assist other people to travel overseas for the purpose of having sex with children, or to organise or promote sex tours.

Female genital mutilation. Offences have been created which prohibit the practice of female genital mutilation, with appropriate exemptions for proper medical procedures performed for the benefit of the person's health. It is an offence to take a child out of New Zealand for the purposes of a genital mutilation procedure, or to arrange for this to be done.

Money laundering. The creation of a money laundering offence gives effect to New Zealand's commitments as a member of the Financial Action Task Force on Money Laundering. The offence covers any dealing with the proceeds of a serious offence which is designed to convert the property from one form to another. It includes laundering in New Zealand of the proceeds of foreign crimes. Both the principal offender (the person who committed the offence which generated the proceeds) and the helper can be convicted of money laundering. Such offences are investigated by the Police department's Financial Intelligence Unit.

CONVICTIONS, NON-TRAFFIC OFFENCES
By type of offence

Theft from a spouse. Previous Crimes Act provisions prohibiting conviction for theft from a spouse have been repealed. This means that a spouse may be convicted of theft in respect of the other spouse's property on the same terms as any other person.

Reported crime

A total of 526,372 offences was reported to the New Zealand Police for the year ended 30 June 1997, an increase of 2.0 percent from the previous year. This compared with a similar increase in reported offences of 2.4 percent for the June year 1996 and a 2.4 percent increase for the June year 1995. The overall clearance rate for all reported offences was 42.1 percent in 1997 compared with 42.7 in 1996.

The number of reported violent offences increased (1.9 percent) from 45,484 for the year ended 30 June 1996 to 46,344 at the same time in 1997. This compares with a 1.3 percent decrease between 1995 and 1996 June years. The clearance rate for reported offences was comparable across years with 80.4 percent of violent crime cleared in 1996 and 80.3 percent cleared at the same point in 1997.

During the year ended 30 June 1997 a total of 165 homicides was reported to the Police. This compares with 119 in the same period in 1996, an increase of 38.7 percent. Within this group, reported murders increased, with 74 reported for the June 1997 year compared to 52 at the same point in 1996. There were two significant factors in this increase. Firstly, the period includes the multiple killings at Raurimu in which six people died, resulting in six charges of murder and eight of attempted murder. Secondly, reported manslaughter offences within the homicide category increased 60 percent from 9 to 22. Virtually half of this increase can be attributed to a positive change in police policy dealing with fatal road crashes.

Table 10.2. NATIONAL REPORTED CRIME, BY CLASS AND GROUP, FOR YEARS ENDED 30 JUNE

Crime typeReportedPercent cleared
 199619971996R1997
Source: New Zealand Police
Violence:
Homicide11916583.286.1
Kidnapping and abduction25922176.476.9
Robbery1,9622,13239.841.6
Grievous assaults2,3052,41182.883.3
Serious assaults16,91215,72482.682.1
Minor assaults16,29416,73181.481.3
Intimidation and threats7,5538,79283.083.4
Group assemblies8016893.893.5
            Total45,48446,34480.480.3
Sexual offences:
Sexual attacks3,1132,97768.967.7
Sexual affronts88787451.054.5
Abnormal sexual relations282357.169.6
Immoral behaviour53052474.779.4
Indecent videos11245.550.0
Film, Video & Publication Classifications Act 1993-22-40.9
            Total4,5694,42265.966.4
Drugs and antisocial:
Drugs (not cannabis)1,4231,52791.092.2
Drugs (cannabis only)20,60823,44291.988.4
Liquor5,1035,26996.995.5
Gaming885590.985.5
Disorder29,98928,82388.588.8
Vagrancy25125387.392.9
Family offences2,5321,07181.080.7
Children and young persons offences6711271.674.1
Residential tenancies201985.073.7
Domestic Violence Act-2,527-83.4
            Total60,08163,09890.188.9
Dishonesty
Burglary81,54586,53916.316.6
Vehicles take/interfere53,22456,51921.520.9
Theft146,597146,50024.423.2
Receiving3,7353,16396.490.3
Fraud37,33035,82849.047.1
            Total322,431328,54925.524.3
Property damage:
Destroy property43,73143,74333.934.0
Endanger property26125672.870.3
            Total43,99243,99934.234.3
Property abuses:
Trespass17,65617,15276.377.5
Littering68361977.977.2
Animals61773156.452.5
Postal/fire/rail6,6666,63855.157.0
Firearms (Arms Act)3,6523,98681.183.8
Total29,27429,12671.773.1
Administrative:
Against justice7,5898,66684.885.0
Births/deaths/marriages153393.354.5
Immigration51374285.494.6
Racial8562.540.0
DNA offences-17--
Against national interest76685.784.8
By-law breaches1,8461,30580.482.2
            Total9,97810,83484.085.0
Total515,809526,37242.742.1

CONVICTIONS
For non-traffic offences, by type of offence

The total number of robberies reported was 2,132, an increase of 8.7 percent over the previous year. Aggravated robbery increased by 14.2 percent, from 1,098 reported offences for the year ended 30 June 1996 to 1,254 for the same period in 1997. Non-aggravated robbery increased slightly (1.1 percent) with 714 offences reported for the June year 1997 compared with 706 at the same time in 1996.

There were 1,221 reported sexual violation offences for the year ended 30 June 1997 (a 0.7 percent decrease from the number reported in 1996) with 72.1 percent cleared. Overall, the number of reported sexual attack offences decreased by 4.4 percent, with 2,977 reported offences for the year ended 30 June 1997 compared to 3,113 for the same period in 1996. The total number of reported sexual offences decreased (by 3.2 percent), with 4,569 reported in 1996 and 4,422 in 1997. Of all these reported offences 66.3 percent were cleared.

For the year ended 30 June 1997 there were 1,527 reported non-cannabis drug offences, a 7.3 percent increase from the previous year. Clearance rates increased slightly from 91.0 percent in 1996 to 92.2 percent for the same time period in 1997. Reported cannabis-only drug offences increased by 13.7 percent with 23,442 reported for the year ended 30 June 1997. Of these, a total of 13,383 were cleared by way of prosecution (including those offenders apprehended and prosecuted in the youth court).

In total, reported drug and antisocial offences increased by 5.0 percent from 60,081 offences reported for the year ended 30 June 1996 to 63,098 for the same time period in 1997. The rate of clearance remained similar, with 90.1 percent cleared for the June year 1996 and 88.9 percent cleared for the year to 30 June 1997.

Reported dishonesty offences increased 1.8 percent, from 322,431 for the June year 1996 to 328,549 for the same time period in 1997. As in the previous year, this offence class accounted for the major proportion of all reported non-traffic offences at 62.4 percent. Within this group, reported burglary increased by 6.1 percent, while reported receiving offences decreased by 15.3 percent, compared to the same period in 1996. Vehicle taking and interference increased by 6.2 percent from 53,224 to 56,519, theft decreased by 0.1 percent from 146,597 to 146,500 and fraud decreased by 4.0 percent from 37,330 to 35,828 reported offences.

Of the 28 Police Districts, 9 reported a decrease in the number of reported offences (excluding traffic offences) during the year ended 30 June 1997.

Children and young persons (i.e. those under 17 years of age) comprised 22.5 percent of all offender apprehensions for the year ended 30 June 1997. Furthermore, 46.6 percent of apprehended offenders were under 21 years of age. Of all those apprehended, 80.7 percent were male and 19.3 percent female. In the offence category of dishonesty, 33.4 percent of apprehended offenders were children, with 58.2 percent under the age of 21 years.

Table 10.3. CONVICTIONS FOR ALL OFFENCES EXCEPT TRAFFIC OFFENCES

Offence type19881992199419951996
Source: Ministry of Justice
Violent9,54810,68016,00316,77816,576
Other against persons3,4642,6853,2493,5343,601
Against property52,19957,37957,73657,17356,867
Involving drugs12,89611,44014,22011,81511,608
Against justice7,58811,08013,06513,55513,921
Against good order8,3336,2468,3749,3079,754
Miscellaneous18,56113,87519,25416,85517,382
            Total112,589113,385131,901129,017129,709

Table 10.4. CONVICTIONS FOR VIOLENT OFFENCES

Offence type19861989199319951996

1Includes convictions for manslaughter which involved the use of a motor vehicle.

2A person committing burglary or breaking and entering who carries or uses a weapon may be charged with aggravated burglary.

3Includes both robbery and assault with intent to rob.

4Offences under Section 194(b) of the Crimes Act 1961. These are likely to be mostly “domestic” assaults.

5Threaten to kill or do grievous bodily harm.

Source: Ministry of Justice

Murder4124253530
Manslaughter12227384138
Attempted murder1457617
Kidnapping or abduction735173112143
Rape119134242328312
Unlawful sexual connection16150423385421
Attempted sexual violation2648867685
Indecent assault4015551,1061,1251,298
Aggravated burglary2148529774
Aggravated robbery327317436482463
Robbery3233150156209213
Injuring or wounding210328312584606
Aggravated assault5227678961,2071,298
Male assaults female46291,3732,9474,1003,760
Other assaults5,1015,2335,8277,3807,106
Threaten to kill or do GBH5184234412516587
Other violence699012195125
            Total7,9889,53413,15916,77816,576

Criminal proceedings

The majority of indictable offences may be tried summarily by a District Court judge. Most crimes against property and all but the most grave of other crimes, such as treason, homicide, sexual violation, and perjury, may be dealt with in this way. A District Court judge may, however, decline to deal with an offence summarily. The accused person also has the right to ‘elect’ jury trial if he or she is charged with any offence, indictable or summary, punishable by imprisonment for more than three months. There are specific exceptions in section 43 of the Summary Offences Act for the offences of common assault (section 9—punishable by 6 months imprisonment) and assault on Police, prison or traffic officers (section 10—6 months maximum). For these offences there is no right to elect trial by jury.

Some District Court judges are warranted to preside over jury trials. Jury trials in District Courts currently take place in 20 centres. Except for the most serious indictable offences, which have to be heard in the High Court, most offences requiring a jury trial can be heard in a District 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 jury trials. 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 all offences except traffic offences

The total number of prosecutions for non-traffic offences has been increasing over the 1990s, with the 1996 figure the highest recorded in ten years. Increases in the number of offences reported to the Police through the 1990s, together with higher overall clearance rates by the Police in the last three years compared to earlier years in the decade, have contributed to the trend.

The introduction of the Children, Young Persons, and Their Families (CYP&TF) Act 1989, and the nationwide expansion of the police diversion scheme have had a significant impact on the outcome of prosecutions. The CYP&TF Act emphasises the use of alternatives to prosecution for young offenders. The introduction of the act coincided with a large decrease in charges proved in the Youth Court. The police diversion scheme allows some first-time offenders who have committed non-serious offences, and who admit their guilt, not to have a conviction recorded against them. Offenders who are diverted usually have an initial appearance in court and, when they have complied with the conditions of the diversion scheme, have their case withdrawn or dismissed.

Table 10.5. CONVICTIONS FOR OTHER OFFENCES AGAINST THE PERSON

Offence type19861989199319951996

1Mainly unlawful sexual intercourse or doing an indecent act with or upon another person. Sex offences reported in the violent offences category are not included in the figures for this category.

2Obstructing or resisting a police officer, traffic officer, or other official.

3Excludes threatening to kill or do grievous bodily harm which is classified as a violent offence.

Source: Ministry of Justice

Incest4051474614
Other sex1297237405386417
Obstructing or resisting22,7362,4162,0982,4222,473
Threats and intimidation3348186274440417
Other97130153260280
            Total3,5183,0202,9773,5343,601

Table 10.6. CONVICTIONS FOR PROPERTY OFFENCES

Offences type19861989199319951996

1Includes fraud, false pretences, and forgery.

Source: Ministry of Justice

Burglary7,9626,9217,3846,7496,710
Theft14,77914,85315,45612,79713,354
Receiving stolen goods2,8802,5134,1253,1293,162
Motor vehicle conversion4,3523,6002,5642,8172,839
Fraud116,16316,43019,57822,07121,410
Arson220221187191165
Wilful damage4,0653,8594,1115,1824,849
Other3,1072,8654,0954,2374,378
            Total53,52851,26257,50057,17356,867

Table 10.7. CONVICTIONS FOR DRUG OFFENCES

Offence type19861989199419951996
Source: Ministry of Justice
Use cannabis7,6917,0757,3995,9335,659
Deal in cannabis2,0452,4824,2293,4433,463
Other cannabis1,0959981,7301,4721,479
Use other non-cannabis drug437493334389350
Deal in other drug137232381385498
Other drug296259147193159
        Total11,70111,53914,22011,81511,608

More specialist staff of the Department of Corrections will reflect the ethnic make-up of offenders, thanks to bursaries offered by the Department to Māori and Pacific Island students of psychology.

SENTENCES
For non-traffic offences, by type of sentence

A conviction is the most frequent outcome of a prosecution. Over the period 1987 to 1990, 70-71 percent of all prosecutions resulted in a conviction. This proportion was marginally smaller in the following four years, before decreasing further in 1995 and 1996 to 65 percent, the lowest level in the decade. The decrease is likely to be linked to the increased use of the police diversion scheme.

The number of convictions for violent offences dropped a little in 1996 compared with the figure for 1995. This was the first drop in such offences since 1990. The number of convictions for violent offences in 1996 was still 74 percent higher than the figure in 1988.

There was a considerable increase in the total number of convictions for violent sex offences (rape, unlawful sexual connection, attempted sexual violation, and indecent assault) over the ten-year period under examination. Overall, convictions for such offences tripled from 701 in 1987 to 2,116, although a large part of this increase occurred between 1988 and 1993. In 1994 and 1995, there were only small increases in convictions for violent sex offences, while there was an increase of 202 convictions in 1996. It should be noted that over a third (35 percent) of the convictions for violent sex offences in 1996 related to offences which occurred prior to 1990, and an additional 26 percent related to offences which occurred between 1990 and 1994. The data indicates that 13 of the convictions in 1996 related to sex offences which occurred before 1960, 50 related to sex offences which occurred in the 1960s, and 233 related to sex offences which occurred in the 1970s. The large increase in the number of convictions for violent sex offences over the last decade may be due not only to an increase in the occurrence of these offences, but also to an increased likelihood of such offences being reported, including offences which occurred many years ago.

The total number of convictions for non-sexual assaults of various types nearly doubled through the 1990s. A large part of this increase occurred in the category “male assaults female”, the majority of which are domestic-related assaults. The large increase in convictions for “male assaults female" between 1,265 in 1990 and 4,171 in 1994 is partly a reflection of a change in police practice towards arrest and prosecution of the offender when attending domestic incidents. However, the 1995 figure was slightly lower than the 1994 figure, and there was a slightly larger drop in convictions for “male assaults female" in 1996. The most serious category of assault, injuring or wounding, has shown a strong increase in convictions in the last three years, after a period of relative stability in the previous five years. In 1996, there were 606 convictions for injuring or wounding, the highest number recorded in the decade. The number of convictions for aggravated assault has shown a strongly increasing trend through the 1990s, with 149 percent more in 1996 than in 1986. Convictions for “other assault" (mostly common assault) increased considerably up to 1995, before dropping a little in 1996.

Convictions for other offences against the person decreased in number in the late 1980s and early 1990s, but have increased again since 1991.

Offences against property comprise the largest group of offences aside from traffic offences. The number of convictions for property offences has remained reasonably stable since 1992, at a higher level than in the five previous years. The number of convictions for burglary has dropped in each of the last three years, with the 1996 figure being the second lowest recorded in the decade. Convictions for fraud have remained relatively stable since 1992 at a higher level than in the first half of the decade. In 1996, there were 21,410 convictions for fraud, 32 percent more than in 1986. The number of convictions for wilful damage has been much higher in the last three years compared to earlier in the decade.

Table 10.8. CONVICTIONS FOR OFFENCES AGAINST THE ADMINISTRATION OF JUSTICE

Offence type19861989199419951996

1The offence of breach of bail was introduced on 1 August 1987 by the Summary Proceedings Act (No. 2) 1987.

2Non-molestation orders were replaced by protection orders under the Domestic Violence Act 1995.

Source: Ministry of Justice

Breach periodic detention3,7194,8637,1217,3287,557
Breach supervision502475714680558
Breach parole51192321194208
Breach community service82104418403337
Breach of bail1-1,8912,9143,3843,629
Breach non-molestation order/protection order2185268440421499
Escape custody470441353424387
Obstruct/pervert course of justice254511889122
Other546801666632624
            Total5,5809,08013,06513,55513,921

Table 10.9. CONVICTIONS FOR OFFENCES AGAINST GOOD ORDER

Offence type19861989199419951996
Source: Ministry of Justice
Riot2430-78
Unlawful assembly7632446433
Possess offensive weapon1,3111,3841,2481,2011,263
Offensive language2,0011,059694675663
Disorderly behaviour3,2222,6463,6774,2964,623
Trespassing1,6211,8902,4042,7442,862
Other392456307320302
            Total8,6477,4978,3749,3079,754

The vast majority of convictions for drug offences involve cannabis. This was the case for 91 percent of drug convictions in 1996. The total number of convictions for drug offences remained quite stable between 1989 and 1992, before increasing sharply in both 1993 and 1994. The number fell again in 1995, back to the level seen in the early 1990s, and this lower level was maintained in 1996.

The number of convictions for offences against the administration of justice more than doubled between 1987 and 1996, although the rate of increase has slowed significantly in recent years. The two major contributing factors were large increases in the number of convictions for breach of periodic detention and breach of bail.

The number of convictions for offences against good order in 1996 was the highest recorded in the decade. The Police have indicated that recent increases in disorder and trespass offences are due to them taking a tougher line against street disorder.

All non-traffic offences not included in one of the previous categories were placed in the category “miscellaneous offences” which made up 13 percent of all non-traffic convictions in 1996. The wide variety makes it difficult to account for fluctuations in the number of convictions for these offences.

Table 10.10. CONVICTIONS FOR MISCELLANEOUS OFFENCES

Offence type19871991199419951996

1Excludes a small number of offences prosecuted under this act which were categorised as violent offences or other offences against the person.

2The Dog Control Act 1996, which came into force on 1 July 1996, replaced the Dog Control and Hydatids Act 1982.

3Offences under the Income Tax Act 1976, the Income Tax Act 1994, or the Goods and Services Tax Act 1985.

4Convictions under the Fisheries Act and related regulations eg commercial fishing regulations and freshwater fisheries regulations.

Source: Ministry of Justice

Arms Act1961980936836866
Dog Control Act23,3124,5687,8986,9657,519
Tax Acts33,6131,34451604,4723,751
Sale of Liquor Act5,0047581,164942939
Fisheries Act43438781,253455314
Other3,3412,8882,8433,1853,993
            Total16,57411,41619,25416,85517,382

Male offenders accounted for 82 percent of the non-traffic cases which resulted in conviction in 1996 (for which the gender of the offender was known), and 18 percent involved a female offender. Forty-seven percent of the cases in 1996 for which the ethnicity of the offender was known involved NZ Europeans, 43 percent involved Māori, 9 percent involved Pacific peoples, and 2 percent involved offenders of some other ethnicity. Twenty-one percent of the cases resulting in a non-traffic offence conviction in 1996, and for which the age of the offender was known, involved a teenage offender, 27 percent involved an offender aged between 20 and 24 years, 19 percent involved an offender aged between 25 and 29 years, 22 percent involved an offender aged between 30 and 39 years, and 11 percent involved an offender of 40 years or over.

Sentencing for non-traffic offences

There have generally been only small changes over the last decade in the proportion of cases resulting in a custodial sentence. In comparison, there have been large increases in the use of community-based sentences and large decreases in the use of monetary penalties for non-traffic offences. However, much of this change occurred between 1987 and 1991. Since 1991, the changes in sentencing have been very much smaller, and in fact the trends just described for community-based sentences and monetary penalties have reversed slightly in the last few years.

Throughout the decade, around one in ten people convicted of a non-traffic offence have received a custodial sentence. The very slightly lower proportions in the last three years, compared to the period 1990 to 1993, may be due to some prison sentences being suspended. The average length of the custodial sentences (including preventive detention) imposed in cases involving non-traffic offences has increased from 10.7 months in 1987, to 14.1 months in 1996.

Only 6 percent of the non-traffic cases which resulted in a custodial sentence in 1996 involved a female offender. Māori offenders accounted for over half (53 percent) of the cases which resulted in imprisonment in 1996 (for which the ethnicity of the offender was available), while a further 38 percent involved NZ Europeans, and 8 percent involved Pacific peoples. Cases involving offenders in their twenties accounted for nearly half (48 percent) of the cases which resulted in a custodial sentence in 1996, with a further 20 percent of cases involving teenage offenders. (It should be noted that only 89 of the 1,341 cases identified as involving a teenager and which resulted in a custodial sentence, involved 14 to 16 year olds. The rest of these cases involved 17 to 19 year olds.) Only 11 percent of the offenders who were given a custodial sentence in 1996 were aged 40 or more.

Table 10.11. SENTENCES FOR NON-TRAFFIC OFFENCES1

Sentence type/years ended 31 December198619891993199419951996

1Only the most serious sentence imposed is shown for cases where more than one sentence was imposed.

2Community care was renamed “community programme” by the Criminal Justice Amendment Act 1993.

3Monetary penalties are fines and reparation.

4To come up for sentence if called upon or a suspended prison sentence.

5Mainly disqualification from driving and deportation orders.

6Conviction and discharge under Section 20 of the Criminal Justice Act 1985.

Source: Ministry of Justice

Custodial5,6215,6616,7816,4406,2356,617
Periodic detention8,13411,14114,55714,17413,07412,789
Community programme2797604810759744559
Community service1,2812,0344,8244,8584,2734,062
Supervision2,7983,0063,2594,2604,3654,309
Monetary339,64227,74823,55926,29125,70626,167
Deferment42,0612,6783,3113,5453,1753,561
Other51454029203115
Conviction and discharge62,1892,5183,7184,0314,1914,150
Total62,66855,43060,84864,37861,79462,229

SENTENCING, NON-TRAFFIC OFFENCES
By type of sentence

A rural police officer checking the load and documentation of a logging truck, part of the continuing campaign to maintain road safety.

In the first half of the decade there was a large increase in the use of periodic detention, up to 26 percent in 1992, but in the last four years the proportion of cases resulting in this sentence has fallen.

The proportion of non-traffic cases resulting in community service increased between 1987 and 1992 from 2 to 8 percent. In the last four years, the proportion has fallen very slightly to 7 percent in 1996.

The number and proportion of cases which resulted in supervision as the most serious sentence has been a little higher in the last two years compared to earlier years in the decade. In 1996, 7 percent of non-traffic cases resulted in supervision as the most serious sentence.

There was a marked decrease in the use of monetary penalties (in particular, fines) as the most serious sentence for cases involving non-traffic offences between 1987 and 1992 (from 58 percent to 36 percent of cases). However, the proportion of cases involving a non-traffic offence which resulted in a monetary penalty as the most serious sentence has increased a little in the last four years to 42 percent in 1996. The decrease is likely to be partly due to the introduction of the Police diversion scheme from 1988. A number of the less serious cases, which would most likely have had a monetary penalty imposed, were diverted from court, with the result that the remaining cases were more serious on average. More serious cases tend to attract more serious sentences.

The Crimes Amendment Act (No. 3) 1993 increased the maximum penalty for both rape and unlawful sexual connection from 14 years to 20 years. The average length of the custodial sentences imposed for rape has increased in the last three years to reach 7 years 4 months in 1996, the highest figure in the decade. In the period 1991 to 1993, rapists had sentences imposed of 5 years 11 months, on average. Custodial sentences imposed for unlawful sexual connection have also been longer in recent years compared to earlier in the decade.

Convictions and sentencing for traffic offences

Traffic offences comprised the largest single category of offences resulting in conviction for each year between 1986 and 1996. In 1996, for example, one-third of all convictions resulted from traffic offences.

There have been fewer convictions for driving offences which resulted in the death of another person each year since 1992, with the 1996 figure (101) being the lowest recorded in the decade. It should be noted that a small number of people who kill a person while driving a motor vehicle will be charged with manslaughter rather than driving causing death. Convictions for driving causing injury have increased by over 30 percent over the decade. The number of convictions in 1996 was slightly lower than the figure in 1995, but was still the second highest recorded in the decade.

The number of convictions for driving while disqualified and driving with excess alcohol increased considerably until 1991, then decreased in both 1992 and 1993. Part of this decrease was due to fewer officers being available for traffic enforcement because of training which had to be undertaken when the Police and the Traffic Safety Service of the Ministry of Transport merged in July 1992. Since then, convictions for driving while disqualified have levelled off at a lower level than in the early 1990s, but the 1996 figure was still 53 percent higher than the figure in 1987.

Table 10.12. CONVICTIONS FOR TRAFFIC OFFENCES

Offence type/years ended 31 December19861989199319951996

1Includes charges where the offender refused to supply a blood specimen, or was convicted for driving under the influence of drink or drugs. Excludes charges where death or injury occurred while driving with excess alcohol.

Source: Ministry of Justice

Drive causing death227202115138101
Drive causing injury1,1141,3291,4551,6061,564
Driving with excess alcohol119,75326,46924,14625,50525,482
Driving while disqualified6,55910,45611,10110,48810,981
Other traffic38,23372,91825,60026,51025,270
            Total65,886111,37462,41764,24763,398

The number of cases involving a traffic offence which resulted in imprisonment increased between 1987 and 1991 (from 1,360 to 2,267), and has remained at the higher level in subsequent years. The number of custodial sentences after 1993 will have been affected by the introduction of suspended prison sentences. The average length of the custodial sentences imposed in traffic cases increased a little between 1987 and 1990, and has remained reasonably stable in recent years at about five months.

There was a large increase in the number of cases resulting in a community-based sentence over the last ten years. Upon conviction, some traffic offences result in a mandatory period of disqualification from driving. The Transport Amendment Act (No. 2) 1988 allows a community-based sentence to be substituted for mandatory disqualification in some cases. This amendment is likely to be associated with the particularly marked increase after 1988 in the number of cases involving a traffic offence which resulted in a community-based sentence. The decrease after 1991 is mostly due to a decrease in convictions for serious traffic offences.

Table 10.13. SENTENCING OF TRAFFIC OFFENCES1

Sentence type/years ended 31 December198619891993199419951996

1Only the most serious sentence imposed is shown for cases where more than one sentence was imposed.

2Community care was renamed “community programme” by the Criminal Justice Amendment Act 1993.

3Monetary penalties are fines and reparation.

4To come up for sentence if called upon or a suspended prison sentence.

5Conviction and discharge under Section 20 of the Criminal Justice Act 1985.

Source: Ministry of Justice

Custodial1,2341,9192,2391,8921,9962,297
Periodic detention3,6738,2658,7227,8507,7107,679
Community programme2217244367229228223
Community service6772,4505,1294,7874,6104,223
Supervision3667148951,0181,0871,194
Monetary337,76666,66626,95626,79629,97729,828
Deferment4248997997374
Driving disqualification371908935899915941
Other-77-1--
Conviction and discharge51,0683,1471,3541,3571,3731,256
            Total46,39684,47945,34043,57147,96947,715

The number of traffic cases awarded a sentence of periodic detention increased from 4,320 in 1987, to 10,216 in 1991, but had dropped to 7,679 by 1996. Periodic detention accounted for 16 percent of the sentences imposed on traffic cases in 1996.

There was a very large increase in the number of cases which resulted in a community service sentence for a traffic offence in the late 1980s and early 1990s, but the number has dropped a little in the last four years. Community service accounted for 9 percent of the sentences imposed on traffic offenders in 1996, and about half of the cases which resulted in a community service sentence involved a traffic offence.

In 1996, 1,194 traffic cases resulted in supervision as the most serious sentence, the highest number of traffic cases resulting in such a sentence in the decade.

Throughout the last ten years, a monetary penalty was by far the most likely outcome of a conviction for cases involving a traffic offence. It was the most serious sentence imposed in 63 percent of 1996 cases which resulted in conviction for a traffic offence.

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. This scheme was absorbed by the accident compensation scheme when it was established in 1972. The accident compensation scheme administered by the Accident Rehabilitation and Compensation Insurance Corporation potentially covers a range of criminal injuries, including pregnancy by rape, and criminal infection with disease. This scheme is designed as a fund of first resort. See section 8.5. Accidents.

10.3 Corrections system

New Zealand's corrections system is responsible for protecting the community from offenders through both deterrence and rehabilitation.

The Department of Corrections manages all custodial and non-custodial sentences imposed by the courts on offenders. This includes prison and community-based corrections.

There are nine services and groups in the department, working together to reduce re-offending: Public Prisons Service, Community Probation Service, Psychological Service, Corrland (responsible for the department's forests and farms), Policy and Service Development, Contracts, Strategic Development, Finance, and Internal Audit.

Community Probation Service

Community Probation Service's purpose is to reduce re-offending by encouraging positive change in the lives of offenders, especially Mãori, and by facilitating offender reparation to the community.

The service is responsible for the management of community-based sentences with an average monthly muster of 22,600. This includes periodic detention, community service, supervision, community programmes, and services to parolees, including home detention.

Information provided. The service writes around 48,000 reports annually, providing information about offenders to the judiciary to inform sentencing decisions, and to prisons to inform decisions on parole and home leave for inmates. In providing reports, probation officers gather a range of information about the offender and the circumstances of the offence. This process may include talking to the offender's family, friends, people they work with and people who know them.

Specific reports include: same day, and remand pre-sentence reports; reparation reports—addressing the issue of reparation between offender and victim; board reports—prepared prior to an inmate appearing before a district prisons board or the Parole Board; home leave reports—responding to questions from a prison about the suitability of home leave if proposed for an inmate; and community programme agreements which form the contract with a sponsor for an offender on this sentence.

Waikeria Prison hosted a one-day hui and cultural exchange in May 1997 involving both inmates and members of the public, representing some 15 South Pacific cultures. Inmates from all of Waikeria's minimum security units entered haka and concert groups.

Table 10.14. REPORTS ON COMMUNITY-BASED SENTENCES1

Report type19941995199621997

1Year to 30 June.

2Due to departmental restructuring these figures cover from 1 October 1995-30 June 1996.

Source: Department of Corrections

Remand pre-sentence reports14,36915,28710,86714,383
Courts servicing—same day reports and oral information22,26423,12915,52924,222
Reparation reports2,9443,4642,1182,780
Community programme agreements565557439508
Parole reports1,6231,9691,5702,259
Home leave reports1,3221,3521,1221,977
Special purpose reports75693323

Sentences administered by Community Probation Service

Community Service—This service enables offenders to live at home and remain in work while contributing some of their time—from 20-200 hours within 12 months—to an organisation in their own community. They are not paid for the work they do: it is overseen by the community organisation and there is frequent mutual benefit from it. Only offenders who do not present a risk to others are eligible for Community Service. The offender is seen to be making some form of reparation to the community.

In the year to 30 June 1997, 11,613 community service sentences were imposed.

Supervision—On this sentence, offenders report to, and are supervised by a Probation Officer. They are subject to statutory conditions relating to reporting, accommodation, employment and association with others. They may also be subject to additional conditions to address particular needs such as attending counselling and other relevant programmes. The sentence of supervision is rehabilitative in that it focuses on addressing the reasons for offending. It can be imposed for periods ranging from six months to two years.

In the year to 30 June 1997, 10,078 supervision sentences were imposed.

Community Programme—This sentence aims to place people in the care of a person or organisation which offers a specific programme to deal with the offending-related problem which the person acknowledges and wants help to deal with. This may involve living with the sponsor for up to six months or spending a great deal of time regularly with them for up to a year. The offender's family and friends may also be involved with the programme.

In the year to 30 June 1997, 584 community programme orders were imposed.

Periodic Detention (PD)—This sentence, which also offers service to the community, differs from Community Service in that it requires people to attend a PD work centre on at least one specified day of per week, for up to a year. The detainees are sent out from the centre in groups of up to 10, under the supervision of a staff member, to perform a day's work for a community organisation or occasionally an individual. The type of work can include clearing land, building walkways and fences, mowing lawns, cleaning, painting and building play areas for kohanga reo or schools. In the year to 30 June 1997, 22,609 periodic detention sentences were imposed.

Parole—People on parole have been released from prison, under strict conditions laid down by law. Often they will move onto a community-based programme designed to deal with their offending-related problems. They must report regularly to a Probation Officer who monitors their progress and adherence to any conditions imposed as part of the parole.

In the year to 30 June 1997, Community Probation Service supervised 2,092 offenders on parole.

Table 10.15. COMMUNITY-BASED SENTENCES1

SentenceAs at 30 June
199319941995199621997

1Figures represent the average monthly muster for the 12 months ended 30 June.

2Due to departmental restructuring, these figures cover from 1 October 1995 to 30 June 1996.

Source: Department of Corrections

Periodic detention7,3567,7717,0716,8386,846
Community service7,1347,4897,4846,7836,544
Community programme655623571485418
Supervisions4,5675,7657,0797,3077,405
Parole1,5541,5741,1961,3611,413

Home Detention—The two-year pilot programme run by Community Probation Service was completed. Detainees are inmates who have been released on parole and must stay at home unless given permission by their probation officer to leave. Video phone and voice recognition technology was used during the pilot, and random phone calls made to the detainee's house to confirm they were there. Detainees are allowed to leave home to go to work or to attend habilitation programmes.

In the period 1 October 1995 to 30 June 1996, 21 offenders were on home detention.

Public Prisons Service

The aim of the Public Prisons Service is to manage inmates in a secure, safe and humane environment.

Remand facilities are provided for those charged with offences or awaiting sentencing. There are 17 prisons capable of housing about 5,500 sentenced inmates and remainders. There are eight maximum security units, 50 medium security units, 34 minimum security units, two corrective training units and 16 remand units.

Within the prisons the service provides a wide range of work, training and specialist programmes to assist inmates' habilitation. Habilitation aims to give inmates the skills they need to avoid reoffending by addressing the causes of their offending and helping them reintegrate into the community.

The department also provides escort and custodial supervision services to courts, such as transporting inmates to and from court appearances.

There are two separate women's prisons and a women's wing at Mt Eden Prison. Currently, there are about 2,680 staff members.

New Zealand's 17 prisons are listed in table 10.16. Inmates with different security classifications are held at each institution. There are 13 prisons that receive remand inmates as well as sentenced inmates.

The full cost of keeping someone in prison was $49,224 per year (for the year to 30 June 1997, compared to $51,045 for 1996).

Table 10.16. PENAL INSTITUTIONS

InstitutionCapacity

1Includes remand inmates.

Source: Department of Corrections

Male prisons
Auckland585
Christchurch5361
Dunedin591
Hawke's Bay Regional4241
Invercargill1721
Manawatu1901
Mount Eden4211
New Plymouth4211
Ohura100
Rimutaka4161
Rolleston320
Tongariro/Rangipo593
Waikeria8421
Wanganui (includes Wanganui City Prison)4001
Wellington120
Female prisons
Arohata1051
Christchurch Women's601
Mount Eden (Women's division)541

PRISON INMATES
Numbers in prison per 10,000 mean population

Detention in a penal institution

The sentences of imprisonment which the Department for 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 law 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 Service for six months.

Imprisonment—for a stated period or for life. A mandatory sentence of life imprisonment is imposed when an offender is convicted of murder. 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 (where the sentence is not for a serious violent offence) may be eligible for release on parole after serving one-third of their sentence, and must be released after two-thirds of sentence. An offender convicted of a serious violent offence is not eligible for release on parole and will be released after two-thirds of the sentence has been served. In both cases, an offender is subject to a minimum of six months on parole when he or she is released.

Offenders sentenced to one year or less are released when they have completed half of their sentence.

An offender sentenced to imprisonment for life will be eligible for release after serving 10 years. The date of release is decided by the Parole Board. The offender will be subject to parole conditions for life when he or she is released.

Preventive detention—detention in prison for an indefinite term of at least 10 years, to be decided by the Parole Board. This sentence may be imposed when an offender is convicted for certain sexual or violent offences. The offender must be 21 years of age or over. If released, he or she will be subject to parole conditions 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 detained except in special circumstances.

The increase in the number of offenders given custodial sentences, together with the increase in the length of these sentences, has resulted in an increase in the number of inmates in New Zealand prisons. During 1997 there was an average of 5,152 inmates in prison (4,946 males and 206 females). This was made up of an average 4,587 sentenced inmates and an average 565 inmates remanded in custody. In 1996 there was an average of 4,739 inmates (4,216 sentenced, 523 remand).

Census of prison inmates. The following detailed statistics are taken from the census of inmates carried out on 23 November 1995 and published in the Ministry of Justice's Census of Prison Inmates 1995. The information was obtained directly from the prisons or extracted from the Wanganui Computer. Results from the November 1997 census of inmates will become available in 1998.

All prisons, except Mangaroa/Napier (now Hawke's Bay Regional Prison), had fewer than the maximum manageable number of inmates. However, by 24 November 1995 the number of inmates in Mangaroa/Napier was fewer than the maximum manageable level. In total, there were 4,131 sentenced inmates, comprised of 151 females and 3,980 males. In addition, there were 357 remand inmates within the prisons (14 female and 343 male) making a grand total of 4,448 prisoners.

Unless specified the following figures and percentages refer to sentenced inmates.

Age and ethnicity—in total, 396 inmates (10 percent) were under the age of 20. 1,343 inmates (33 percent) were under the age of 25 and 2,259 inmates (55 percent) were under the age of 30. Eight hundred and seven (20 percent) of inmates were 40 years or over.

Table 10.17. AGE DISTRIBUTION OF INMATES1

AgeFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

1As at 23 November 1995.

Source: Ministry of Justice

1510.730.140.1
1610.7100.3110.3
1732.0782.0812.0
18-1985.32927.33007.3
20-243019.991723.094722.9
25-293019.988622.391622.2
30-343623.860715.364315.6
35-39128.041010.342210.2
40-492415.949112.351512.5
50-5964.01964.92024.9
60+ -902.3902.2
            Total151100.03,980100.04131100.0

Of the female inmates whose ethnic group was known, 69 (49 percent) identified themselves as Māori only, and 54 (39 percent) identified themselves as European only. Of the male inmates whose ethnic group was known, 1,503 (45 percent) identified themselves as Māori only, and 1,299 (39 percent) as European only.

Male Māori and Pacific people inmates were generally younger than male European inmates. Just under two-thirds (63 percent) of male Māori inmates were under 30 years old, compared with 60 percent of Pacific people inmates and 46 percent of European inmates. Thirty percent of male European inmates were 40 years or older compared with 17 percent of Pacific people inmates and 13 percent of Māori inmates.

Table 10.18. MAJOR OFFENCE OF INMATES1

Major offenceFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

1As at 23 November 1995.

Source: Ministry of Justice

Violence5536.42,36959.52,42458.7
Other against persons10.71092.71102.7
Against property5939.179419.985320.6
Involving drugs1912.62325.82516.1
Against good order21.3330.8350.8
Traffic117.33518.83628.8
Against justice42.6611.5651.6
Miscellaneous- 310.8310.8
            Total151100.03,980100.04,131100.0

Major offence—the census shows that 60 percent of all male inmates were imprisoned for violent crimes. The next largest group of male inmates was those imprisoned for offences against property (20 percent), followed by traffic offenders (9 percent) and then by drug offenders (6 percent). Three percent of male inmates were imprisoned for offences against the person not classified as involving violence (mainly sexual crimes not involving an assault).

Female inmates were most likely to be imprisoned for property offences (39 percent) or violent offences (36 percent). Thirteen percent of female inmates were drug offenders and 7 percent were traffic offenders.

The most common violent offences for male inmates were: rape (21 percent of male inmates sentenced for violent offences, and 13 percent of all male inmates); aggravated robbery (20 percent and 12 percent); unlawful sexual connection (12 percent and 7 percent); and injuring or wounding (11 percent and 6 percent).

The most common violent offences for female inmates were murder (27 percent of female inmates sentenced for violent offences and 10 percent of all female inmates) and aggravated robbery (20 percent and 7 percent).

Sentence length—Fifty-six (37 percent) female inmates and 908 (23 percent) male inmates were serving a sentence of up to one year. Fifteen (10 percent) female inmates and 222 (6 percent) male inmates were serving sentences of life imprisonment. Seventy-four males were serving preventive detention sentences. Excluding life and preventive detention sentences, 10 female inmates (7 percent) and 1,013 male inmates (25 percent) were serving a sentence of more than five years.

Ten female inmates and 162 male inmates were serving sentences of three months or less. The most common major offences of inmates serving for this time were burglary (35 inmates), driving while disqualified (32 inmates), breaching periodic detention (22 inmates), and driving with excess alcohol (15 inmates).

Excluding people serving life imprisonment or preventive detention, inmates serving sentences of more than five years were most commonly imprisoned for rape (370 inmates), aggravated robbery (256 inmates), unlawful sexual connection (104 inmates), manslaughter (57 inmates), and injuring or wounding (49 inmates).

Most inmates are not required to serve the entire sentence imposed.

Te Piriti inmates at Paremoremo have grown more than 25,000 pohutukawa seedlings under Project Crimson, for the restoration and preservation of native pohutukawa trees.

Protecting people by keeping order at large public functions is an important preventive measure.

Table 10.19. TOTAL SENTENCE LENGTH FOR INMATES1

Sentence lengthFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

1As at 23 November 1995,

2Includes corrective training.

Source: Ministry of Justice

Under 3 months2106.61624.11724.2
3 months and under 6 months2013.22195.52395.8
6 months and under 1 year2617.252713.255313.4
1 and under 2 years4127.268417.272517.6
2 and under 3 years1811.943711.045511.0
3 and under 5 years117.364216.165315.8
5 and under 7 years53.351012.851512.5
7 and under 10 years32.03869.73899.4
10 years and over21.31172.91192.9
Life159.92225.62375.7
Preventive detention--741.9741.8
        Total151100.03,980100.04,131100.0

Offending history—Forty-two percent of female inmates, and 59 percent of male inmates, had previously received a custodial sentence. Of the female inmates 68 percent, and 70 percent of the male inmates, had at least six previous convictions. Forty percent of both female and male sentenced inmates had more than 20 previous convictions.

Twenty-eight percent of female sentenced inmates and 30 percent of male sentenced inmates had previously spent less than one year in prison. A small proportion (6 percent) of female inmates, and 14 percent of male inmates, had spent at least three years in prison previously.

Table 10.20. TOTAL TIME SPENT IN PRISON ON PREVIOUS OCCASIONS1

Total time spent in prisonFemaleMale
NumberPercentNumberPercent

1As at 23 November 1995.

Source: Ministry of Justice

No previous incarcerations8858.31,62740.9
Under 6 months2818.575719.0
6 months and under 1 year159.943110.8
1 and under 2 years85.33699.3
2 and under 3 years32.02486.2
3 and under 5 years64.02987.5
5 and under 7 years21.31363.4
7 and under 10 years10.7792.0
10 years and over--350.9
            Total151100.03,980100.0

Classification status—where the security status was known, 56 percent of male inmates had a minimum security classification status, 39 percent were classified as suitable for medium security, and 2 percent had a maximum security classification. For female inmates where the security status was known, 81 percent had a minimum security classification status. Overall. 4 percent of sentenced inmates had not been classified at the time of the census.

An important objective is to ensure that inmates are held in humane conditions and at 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 an education co-ordinator in each prison 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 of Rolleston Prison and the Te Piriti programme at Auckland Prison 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 which contribute to offending. 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. 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 an offence against discipline appears either before the general manager or a visiting justice who may impose a penalty. Serious criminal offences by inmates are referred to the police for investigation.

Release to work. A small number of selected inmates may be released during the day for outside employment. They are required to contribute to the cost of their board and part of their earnings may also be withheld to fund debts and family expenses.

Parole system. An inmate serving a sentence of more than one year for an offence other than a serious violent offence is eligible for parole after serving one third of his or her sentence. An inmate serving 15 years or more for a serious violent offence, or serving a life sentence or preventive detention is eligible for parole after 10 years. An inmate serving between two and 15 years for a serious violent offence is not eligible for parole.

If a minimum period has been imposed by the judge at sentencing, that period must be served before an inmate is released on parole.

An inmate serving a sentence of less than one year is not required to have parole conditions as part of their release.

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 the Parole Board. Those sentenced to between one and seven years appear before one of 17 district prisons boards (see also Community Corrections).

Psychological Service

The Psychological Service is a regionally-based service with offices in eight centres and two special units for the treatment of child sex offenders. It has a staff of 57 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 Public Prisons Service and the Community Corrections Service, to community agencies dealing with offenders, and to courts, the district prisons boards and the Parole Board.

The main work of the service 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 Service. It also provides psychological assessments for courts at the presentence 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 Department of Corrections and the Minister of Corrections on policy, practices and procedures, and to staff of the Public Prisons Service and Community Corrections Service and community agencies on ways to assist offenders. It participates in programme development, implementation and evaluation and provides training for prison and probation officers, staff of community agencies and post-graduate psychology students.

The service 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 prisons and community corrections offices and community agencies working with offenders.

10.4 Police

The national administrative and operational control of the New Zealand Police is vested in the Police Commissioner who is responsible to the Government through the Minister of Police.

For operational purposes, from 1 July 1997 New Zealand is divided into four police regions, each controlled by an Assistant Commissioner. The regions are divided into 16 districts, each managed by a Superintendent. Police National Headquarters in Wellington provides administrative support to the regions and districts, and policy advice to the government.

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, Children, Young Persons and their Families Act, Police 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, and honorary fisheries officers.

The effective strength of the police at 30 June 1997 was 6,911 sworn personnel, including 1,023 women, giving a full-time equivalent (FTE) of 6,492 sworn officers (6,449 in 1996). There were also 1,909 non-sworn full-time equivalent positions (1,770 in 1996).

Police operations

Armed offenders squads. Police maintain 17 squads of specially trained and equipped officers throughout New Zealand. During the year ended 30 June 1997, Armed offenders squads were deployed 538 times, compared with 530 in 1996. In 379 incidents, 387 firearms (mainly rifles and shotguns) or other weapons were in the possession of the subjects.

Special Tactics Group. This group is made up of selected members of armed offenders squads from Auckland, Wellington and Christchurch, and is provided with specialised training to enable it to deal with incidents beyond the capability of armed offenders squads. The squads exercise with police negotiators and other specialist police support staff.

Search and rescue. There were 981 police-controlled search and rescue operations during the year ended 30 June 1997, which searched for and/or rescued a total of 1,406 people. The comparable activity in 1996 was 951 searches and 1,431 people.

Youth Education Service. The aim of the Police Youth Education Service (YES) is to work with young people, families, teachers and school communities to promote individual safety, leading to safer communities. The partnership between police education officers and teachers working in schools is a positive, pro-active way of achieving that aim. Currently, some 140 full-time and part-time police education officers have been appointed and are available in all police districts.

YES promotes a curriculum for schools that has four themes:

  • Crime prevention and social responsibility eg Stealing and Vandalism.

  • Drug Abuse Resistance Education, eg the DARE programmes.

  • School road safety education, eg school patrols and the Road Safe series.

  • Violence prevention, eg Keeping Ourselves Safe and Kia Kaha.

YES has been reviewed by the Education Review Office which considered YES to be an effective policing strategy and to have high-quality teaching programmes. Other agencies involved in evaluation of YES programmes included the University of South Australia, Florida State University and the New Zealand Council for Educational Research.

Dare to Make Change is a new DARE programme for small groups of youngsters already in trouble. DARE programmes have again proved very popular this year. More than 35,000 youngsters and their parents went through DARE programmes, proving their popularity. There are fifty local DARE societies throughout the country supporting and promoting the sensible drug use and anti violence messages of DARE.

The strong support for YES from major sponsors Telecom New Zealand, Caltex and the Lottery Grants Board assisted with the development of new programmes that can be made available to schools at no cost.

Police dogs. A comprehensive network of police dogs and handlers is maintained throughout New Zealand. During the year ended 30 June 1997, police dogs were deployed to 39,190 incidents (32,777 in 1996). There were 102 general purpose operational and dual purpose dogs (some of these dual trained dogs are trained in avalanche rescue, narcotics and search and rescue), 8 narcotic dogs. 3 explosive detector dogs, and 2 firearm detection dogs. In addition, there were 15 trainee dog handlers, giving a total strength of 115 teams.

POLICE NUMBERS
Population per sworn police officer

The Police Dog Training Centre at Trentham delivered training to 5 Customs Department narcotic detection teams, 2 Department of Corrections narcotic detection teams, and 2 narcotic detection teams for the Kingdom of Tonga. They also trained New Zealand's first accelerate detector dog for a fire investigation firm.

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 1997 there were 233 community constables spread over all four police regions.

Youth Aid Section. Under the Children, Young Persons and Their Families Act 1989, the New Zealand Police must follow the principle that unless the public interest requires otherwise, criminal proceedings are not instituted against children or young persons if there is an alternative means of dealing with the matter.

Youth aid staff throughout the country as at 30 June 1997 totalled approximately 130 full-time and 39 part-time members. The work of the section is shown in the accompanying table.

Neighbourhood Support Groups (Community Support Groups). There were 18,412 community support groups throughout New Zealand as at 30 June 1997, and 77 victim support groups.

National Drug Intelligence Bureau. For the year ended 30 June 1997 there was a total of 24,969 drug offences reported, of which 88.6 percent were cleared. In the year to June 1997, search without warrant powers were exercised in 2,801 cases, resulting in 2,005 seizures (71.6 percent).

Reported offences. A summary of offences reported to the police for the year ended 30 June 1997 can be found at the beginning of section 10.2, Criminal justice.

Table 10.21. DRUG SEIZURES BY SUBSTANCE

Substance1992-931993-941994-9511995-9611996-9712

1Year ended 30 June.

2Recording of statistics has changed in the last fiscal year, as a result figures may not be comparable to previous years.

Source: New Zealand Police

Heroin (grams)2,191103230673801
Heroin (millilitres)784351293820.4
Cocaine (grams)6,2803108993494
Opium (grams)127371866824
Morphine (grams)24315321,569
Morphine (millilitres)2,4491,0329471,760183
Analgesics (tabs)9,40313,97911,505468403
LSD (tabs)23,45625,94518,2308,65533,588
Psilocybine (grams)3,1624,0713,3861,7331,915
Psilocybine (mushrooms)10,0791,8883,2022,6821,564
Amphetamine (grams)16371538331117
Methamphetamine (grams)837182101199397
Cannabis plant (number)306,573220,011355,663268,58698,063
Annual cannabis plant recovery programme    168,800
Cannabis leaf (grams)578,888765,263863,985482,617206,984
Cannabis oil (grams)2,426259,6413,8393,0675,203
Cannabis resin (grams)7,372670706,4391,3012,309

Dusting a suitable surface at the scene of a crime, hoping to be able to ‘lift’ a clear fingerprint that can be compared with the files of prints held by the Police.

Police Infringement Bureau. A speed camera programme was introduced by the New Zealand Police in 1993; the first full fiscal year of operation was completed in June 1995.

There are 31 mobile cameras fitted in police vehicles which are able to be driven from place to place to take photographs of speeding vehicles. The mobile cameras are supplemented by 13 fixed cameras which can be used in any one of 51 pole-mounted installations on city streets.

Camera sites are selected by representative community groups which work with police to identify areas which have a speed-related vehicle crash history. The purpose of the speed camera programme is to reduce vehicle crashes on high risk areas of the road by encouraging drivers to maintain safe and consistent vehicle speeds in those areas. Speed camera tickets are issued to the owner of the speeding vehicle who is responsible, in the first instance, for resolving the notice.

Following the introduction of the speed camera programme there was a significant reduction in average traffic speeds in 1994. Recent Land Transport Safety Authority research indicates a reduction in all crashes of 31 percent at urban camera sites and 26 percent at rural camera sites by the end of 1996.

Police Complaints Authority

The authority is a person appointed by the Governor-General to receive and deal with any complaints against misconduct or neglect of duty by police, and to investigate incidents involving death or serious harm in which police are involved. The authority was established by the Police Complaints Authority Act 1988 and is entirely independent of the police. Complaints can be made to the authority, the police, an ombudsman or a registrar of a district court. The authority has powers to investigate complaints itself, oversee complaints, and review complaints which are investigated by the police and then sent to the authority. All complaints against police conduct, wherever laid, are ultimately dealt with by the authority.

In the year ended 30 June 1997, 2,759 complaints were received from 2,066 individual complainants (2,635 from 1,804 in 1996). Of these, 208 complaints were withdrawn, refused, not pursued or the authority had no jurisdiction, leaving 2,551 accepted for investigation. Twelve were partially sustained; 28 were dealt with under section 13 of the Police Complaints Authority Act; 230 conciliated; 118 sustained; and 436 were not sustained, leaving 1,727 current at 30 June 1997. As in previous years, the majority of complaints were about attitude/language and use of physical force.

Contributors

  • 10.1 Department for Courts; Department of Labour; Ministry of Justice; Law Commission; Legal Services Board; Crown Law Office.

  • 10.2 New Zealand Police; Department for Courts; Ministry of Justice.

  • 10.3 Department of Corrections; Ministry of Justice.

  • 10.4 New Zealand Police; Police Complaints Authority.

Special articles

International Commission of Jurists (New Zealand): New Zealand Law Society: Law Commission; Legal Services Board; Ministry of Justice; New Zealand Council of Victim Support Groups; Department of the Prime Minister and Cabinet; Ministry of Commerce; New Zealand Police.

Further information

Census of Prison Inmates 1995. Ministry of Justice, 1996.

Changes to the Seriousness of Offending and in the Pattern of Sentencing: 1979 to 1988. Department of Justice.

Conviction and Sentencing of Offenders in New Zealand: 1986 to 1995. Ministry of Justice, 1996.

Escape pressures—inside views of the reasons for prison escapes. Department of Corrections and Ministry of Justice, June 1996.

Home detention: Evaluation of the pilot programme. Ministry of Justice, 1997.

Interpreting trends in recorded crime in New Zealand. Ministry of Justice, 1997.

In the interests of justice: An evaluation of criminal legal aid in New Zealand. Legal Services Board, 1995.

New Zealand Crime Prevention Strategy. Department of the Prime Minister and Cabinet, October 1994.

New Zealand Now: Crime and New Zealand Now: Crime, Tables. Statistics New Zealand, August 1996.

Psychiatric Morbidity in Prisons: An investigation of the prevalence of psychiatric disorders among New Zealand prisoners. Department of Corrections, December 1995.

Rarangi rauemi: A catalogue of resources for law-related education. Legal Services Board, 2nd ed.. 1995

Review of the Corrland Service of the Department of Corrections. Deloittes, July 1996.

Review of the Psychological Service. KPMG May 1996.

Report of the Department of Corrections (Parl paper E.61).

Report of the Department for Courts (Parl paper E.60).

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

Report of the Law Commission (Parl paper E.31).

Report of the Legal Services Board (Parl paper E.7).

Report of the New Zealand Judiciary.

Report of the New Zealand Police (Parl paper G.6).

Report of the Parole Board (Parl paper E.5a).

Report of the Police Complaints Authority (Parl paper G.51)

Tables of New Zealand Acts and Ordinances and Statutory Regulations in Force. Parliamentary Counsel Office (annual).

The Law Commission publishes in series both their preliminary papers and reports.

The Legal Services Board produces pamphlets on the legal aid system, and on obtaining civil or criminal legal aid.

Chapter 11. Communications

Broadcasting House, former headquarters for Radio New Zealand, was demolished in 1997. The hyperbolic paraboloid roof structure was designed so that large studio spaces would not have supporting columns going through them.

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 communications market. Today it is one of the most rapidly growing sectors of the economy.

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.

11.1 Mass media

Broadcasting policy

Historically, most broadcasting services in New Zealand were provided by the government. In 1989 a new broadcasting policy regime was established to improve economic efficiency within the broadcasting industry while ensuring that social objectives continued to be met. The government intended to increase economic efficiency by introducing a more competitive and flexible market for broadcasting services. The following steps were proposed:

  • It would be made easier for new broadcasters to enter the industry.

  • Ownership restrictions would be reduced or removed altogether.

  • It would be made easier for new technologies to be used and new services provided.

  • In the interests of increasing efficiency, the Government's commercial and non-commercial objectives would be separated.

The Broadcasting Corporation of New Zealand Restructuring Act 1988 dissolved the Broadcasting Corporation and replaced it with two state-owned enterprises, Radio New Zealand Limited (RNZ) and Television New Zealand Limited (TVNZ), each with its own management board. TVNZ was required to vest its transmission assets in a subsidiary company, Broadcast Communications Limited (BCL). Aotearoa Mãori 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 and has, since 1989, been broadcasting on a full-time basis in Auckland.

Limits on overseas shareholdings in New Zealand broadcasting companies were removed in 1991.

The Broadcasting Act 1989 established the Broadcasting Commission (NZ On Air) and the Broadcasting Standards Authority and provided for election broadcasting and restricted the scope for political intervention in the management or programming of TVNZ or RNZ.

Te Māngai Pāho, the Māori broadcasting funding agency was established by the Broadcasting Amendment Act 1993 to provide funding to promote Māori language and culture through broadcasting.

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. NZ On Air collects the Public Broadcasting Fee (currently set at $110 per annum per household with a television set) and disburses it to meet its statutory objectives, namely to:

  • Reflect and develop New Zealand identity and culture by promoting programmes about New Zealand and New Zealand interests and promoting Māori language and culture.

  • Maintain, and where considered appropriate, extend television and radio coverage to New Zealand communities that otherwise would not receive a commercially viable signal.

  • Ensure that a range of programmes is available to provide for the interests of women, children, people with disabilities and other minorities, including ethnic minorities.

  • Encourage the establishment and operation of archives of programmes that are likely to be of historical interest in New Zealand.

NZ On Air fulfils these objectives by providing funds for broadcasting, production of programmes and archiving of programmes. 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.

The members of the Broadcasting Commission, which operates under the name New Zealand on Air (NZ On Air), are appointed by the Governor-General on the recommendation of the Minister of Communications.

In 1996-97, NZ On Air spent $45.lm on the production of television programmes; $21.9m on National Radio, Concert FM and access radio services; and $ 12.6m on Maori broadcasting. It also spent $4.2m on remote television and radio coverage, $ 1.9m on New Zealand music projects and $0.64m on broadcasting archives.

Broadcasting standards. The Broadcasting Standards Authority (BSA) is a Crown entity established to enforce and oversee the standards and objectives specified by the Broadcasting Act 1989. The four members of the authority are appointed by the Governor-General on the recommendation of the Minister of Communications. The authority's functions 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 other codes where appropriate.

  • Conduct research and publish findings.

In relation to complaints, the authority:

  • Hears and determines formal complaints against broadcasters when the complainant is dissatisfied with the action taken by broadcasters, or when the issue relates to issues of individual privacy.

  • Publishes its findings.

  • May impose penalties (the most severe being a 24 hour restriction on broadcasting).

There are appeal rights to the High Court against the authority's decisions.

In the year to June 1997, the authority issued 199 decisions on formal complaints (171 in 1996). Of these complaints, over 40 percent alleged a breach of balance, fairness and accuracy. The second largest area of complaint, about 30 percent, alleged a breach of good taste and decency. Although a small percentage of all complaints overall (about 5 percent) the number which allege a breach of an individual's privacy are increasing annually. Of the decisions issued. 83 percent related to television and 17 percent to radio.

In October 1997 the authority released the Review of the Pay Television Code of Broadcasting Practice, which made particular reference to adult material. The results of a survey used for the review show a majority of people think that subscribers should be able to see a wide range of programmes including R18 material. Concern was expressed about children having access to adult material and there was a preference for it to be broadcast late at night.

The BSA's main recommendation from the review was that there should be a single Code of Practice for all television broadcasters, aligning free-to-air and pay television codes to eliminate existing anomalies.

The report Community Attitudes to Adult Material on Pay Television was also released in October 1997.

Complaints about the standard of advertising on radio and television are handled by the Advertising Standards Authority. In the year ended 31 December 1996, the Advertising Standards Authority considered 546 complaints, 46 (11 percent) of which related to liquor advertising. Overall, the level of complaints relating to liquor advertising has dropped significantly.

Election broadcasting. Under the Broadcasting Amendment Act 1996, the Electoral Commission is responsible for the allocation to political parties of free broadcasting time and funding of party political advertising broadcast before an election.

Māori broadcasting. Under the Radiocommunications Act 1989, frequencies suitable for radio and television were reserved throughout New Zealand for the promotion of Māori language and culture.

Prior to the 1988-89 broadcasting reforms, one iwi-based radio station (Wellington's Te Upoko o te Ika) had been broadcasting continuously. There are now 24 iwi-based radio stations broadcasting.

After 1989, NZ On Air provided public funding for the operating and capital costs of Māori radio stations, and for the production of Māori programmes to broadcast on network television. The Broadcasting Amendment Act 1993 established a new Māori broadcasting funding agency. Te Reo Whakapuaki Irirangi (now known as Te Māngai Paho). On 1 January 1995. Te Māngai Pāho assumed primary responsibility for the allocation of public funding for Maori broadcasting, which currently includes support for Māori programming on TVNZ, iwi radio stations and some Māori radio programming available on a networked basis.

Television New Zealand Limited. The TVNZ Group operates three national channels (TV ONE, TV2 and MTV), 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 communications business. The group chief executive reports to a board of directors appointed by government.

Paul Gittins, host of TVNZ's Epitaph series, poses with one of the headstones featured on the programme.

TVNZ broadcasts its services to approximately 1,126,000 households, and has almost 100 percent coverage of the New Zealand population and 70 percent audience share. Its channels broadcast 24 hours a day, seven days a week.

All the 50 most-watched programmes in 1996 were played on TV ONE or TV2.

TV ONE aims to provide quality New Zealand and overseas drama, news, sport and information programming. TV2's mix of comedy, movie and entertainment programming attracts a younger audience. Imported programming is mainly sourced from the United Kingdom, the United States and Australia.

TVNZ's local and international activities, grouped in Television, Production and Distribution divisions, include programme production, outside broadcast services, multi-media development, merchandising, Teletext, signal distribution and programming supply and transmission consultancy services in Australia, South-East Asia and the Pacific.

Subsidiaries include signal distribution company BCL, which provides services for all New Zealand TV broadcasters, most radio stations and the ABC and SBS in Australia, facilities house Avalon Studios; and Pacific Television, which runs regional television stations in five New Zealand centres.

TVNZ's state-of-the-art compressed digital satellite network, developed in conjunction with Australia's Nine Network, is one of the most comprehensive operated by any broadcaster in the world. International and other New Zealand broadcasters account for half the business on the network.

TVNZ distributes programmes internationally through London-based HIT Entertainment pic. In 1996 sales were made to free-to-air, cable and pay-TV broadcasters in over 80 countries, including major markets such as the US, UK, Germany, Italy and France. Growth areas for TVNZ were Latin America and Eastern Europe.

The company's main revenue source is advertising. Advertising revenue in 1996 was $292.9 million (total revenue $458.0 million), up from $288.5 million in 1995. Tax-paid profit for the year to 31 December 1996 was $60.6 million.

TV3 Network Services Limited. TV3, New Zealand's only privately-owned free-to-air national television network, has been on air since November 1989. Headquarters are in Auckland with offices and studio facilities in Wellington and Christchurch.

From November 1997, TV3 became 100 percent owned by CanWest Global Communications Corporation, a Canadian communications company.

The network is a broad-based entertainment channel which primarily targets viewers aged 18-49 with a strong emphasis on news, current affairs, sport and local programming. TV3's documentary series Inside New Zealand has won both national and international awards.

Overseas-sourced programmes come primarily from the USA. TV3 has exclusive agreements with ABC, Disney, and World Vision, as well as the ability to source drama and comedy from many other international distributors.

During 1995-96 TV3 added over 25 new transmitter/translator sites throughout New Zealand and by mid 1997 transmission covered almost 98 percent of the population. On 29 June 1997, TV3 launched a second free-to-air channel on VHF frequency, TV4. Targeting young, urban Kiwis aged 15-39 years, TV4 is broadcast to more than 70 percent of New Zealand, 12 hours a day, seven days a week. Around 2.3 million people can access the channel.

Sky Television. New Zealand's first pay television network began broadcasting in May 1990, using scrambled UHF channels. Subscribers need a decoder and, in some cases, a dedicated UHF aerial to receive broadcasts. A satellite service accessible by all New Zealand homes has been announced; this will require a satellite dish and decoder.

SKY's UHF signal can be received by over three-quarters of New Zealand homes and there were 284,000 residential, and 3,155 commercial subscribers as at 31 October 1997; they pay from about $10.30 to $12.80 a week.

The five channels are: SKY Sport (24 hours), Sky Movies, Orange (broad-based variety entertainment), SKY News (24 hours), and Discovery (non-fiction entertainment).

SKY has been floated as a public company and is now majority New Zealand owned.

Regional and local television services. There are a number of small regional television services operating around the country, providing a mix of programmes, ranging from music television services such as Dog TV in Palmerston North to mixed local and international news and entertainment services such as Southland's Mercury TV and Christchurch's Family Television Network. In addition, services such as Channel 51 in Hawke's Bay and Channel 5 in Queenstown offer information about local events and attractions, targeted primarily at tourists. Local television services understood to be operating as at December 1997 included: Warkworth: Family Television Network, Rotorua: Geyser Television, Gisborne: Eastland Television. Hawke's Bay: Television Hawke's Bay, Channel 51, Palmerston North: Dog TV, Nelson: Mainland Television, Christchurch: CTV, CHTV, Queenstown: Channel 5, Dunedin: Channel 9, Invercargill: Mercury Television.

Cry TV (Christchurch) and Max TV (Auckland), broadcasting mainly music videos, both started in 1993 and closed in 1997 (Cry in June, Max in December).

Trackside. 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.

The TAB has leased the down-time on this channel to SKY Television which commenced broadcasting in October 1994.

Cable television. New Zealand's first commercial cable television operation began in 1993 on the Kapiti coast as Kiwi Cable TV. Now based in Petone, Saturn Communications serves customers from the Kapiti Coast to Wellington via HFC (hybrid fibre co-axial) cable. The original Kiwi Cable Kapiti headend has also been relocated and integrated with a new telephone service switch in the Hutt Valley. Saturn announced it would enter into local telephone and high speed data services in 1998. Ownership of Saturn is 65 percent United International Holdings UIH of Denver Colorado and 35 percent Sasktel of Saskatchewan Canada.

Following a pilot scheme for the provision of pay television services in the Auckland suburbs of New Lynn and Pakuranga, Telecom launched a broadband network in September 1996. Stage 1 involved deployment of fibre optic and coaxial cables past approximately 70,000 homes in targeted areas of Auckland and Wellington during 1996 and 1997. First Media Limited, a full subsidiary of Telecom New Zealand, is responsible for developing and marketing entertainment and information services on the network.

Table 11.1. HOURS OF LOCAL CONTENT ON NETWORK TELEVISION

YearTV OneChannel 2TV3Total

1The decrease in hours in 1993 was mainly because coverage of the Olympic Games significantly increased the hours of local content broadcast in 1992.

Source: NZ On Air

19891,7908901322,812
19902,4747721,0034,249
19911,8111,0161,2124,039
199212,5261,2271,9625,715
199312,0051,0421,7414,788
19942,2101,0411,7184,969
19952,5321,1131,3735,018
19962,4071,2551,4045,066
19972,6381,3241,6395,601

Non-commercial television. In late 1996 the Ministry of Commerce announced that UHF television frequencies reserved for non-commercial use had been allocated to groups in Auckland, Christchurch and Dunedin. None of these stations is yet operational.

Radio broadcasting

Since the broadcasting reforms of 1988-89, the number of registered radio frequencies has increased substantially. At 1 July 1988 there were 47 AM and 17 FM stations broadcasting in New Zealand, 30 of which were privately owned.

In November 1996 over 180 radio stations were broadcasting separate programmes on a continuous basis. All but three (National Radio, Concert FM and the AM Network) were privately owned.

The New Zealand (formerly Mobil) Radio Awards are held annually to recognise excellence in radio.

Radiocommunications Act. 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 access rights. 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 20 years.

The Radiocommunications Act has recently been reviewed resulting in a range of proposed amendments designed to allow greater flexibility in the Crown's management of the radio spectrum. These include the proposed removal of the present 20-year restriction on the duration of spectrum access rights.

Allocation by tender/auction. Until early 1995, spectrum access rights were allocated by sealed-bid tender. Since early 1995, spectrum access rights have been allocated by auction.

Most of the currently available UHF television, FM sound radio and AM sound radio frequencies have now been allocated. The registration of licences following allocation 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 allocated when there is demand for them. Amendments to licences (such as changes of transmission site, increases in power) are accommodated, again where technically possible, in exchange for a formula-based payment reflecting the increased value of the licence.

Pending auction, licences are often made available for interim use for a rental that is related to the value of the licence. These policies are periodically reviewed.

Public radio. State-owned radio has provided both commercial and public radio services to New Zealand since the early 1930s. Private radio emerged in the late 1960s and, since then, privately-owned and commercial State radio stations have been in competition. In line with government policy, in December 1995 all commercial Radio New Zealand activities were vested in a stand-alone company, Radio New Zealand Commercial, and the new company was offered for sale.

Radio New Zealand Limited (RNZ Limited) was constituted as a state-owned enterprise in 1988 when the Broadcasting Corporation of New Zealand (BCNZ), of which RNZ Limited has been a service, was dissolved. The BCNZ's radio assets were to pass through the Crown into the state-owned enterprise. However, Māori interests claimed the new structure was inadequate to carry out Treaty of Waitangi language and cultural obligations.

The issue continued to be argued in the courts, and the assets were legally frozen in Crown ownership with RNZ Limited making use of them under licence. Following an unsuccessful appeal to the Privy Council in 1992, the way was cleared for the assets to be vested in the Radio New Zealand state-owned enterprise.

Radio New Zealand. Radio New Zealand Limited is a Crown-owned company established in December 1995 by the Radio New Zealand Act 1995 and is New Zealand's public radio broadcaster. Funded by the Broadcasting Fee it consists of three non-commercial radio networks: National Radio, Concert FM and the AM Network; a shortwave service: Radio New Zealand International (funded by the Ministry of Foreign Affairs and Trade); and a news service: Radio New Zealand News and Current Affairs.

The functions of Radio New Zealand are to provide innovative, comprehensive and independent broadcasting services of a high standard as detailed in the charter contained in the Radio New Zealand Act 1995.

The most significant event for Radio New Zealand in 1997 was relocating to Radio New Zealand House on The Terrace, Wellington after 34 years in Wellington's custom-built Broadcasting House.

National Radio focuses primarily on news and information. Broadcasting 24 hours a day the network reaches most New Zealanders on the AM band. The network is well known for its high profile personalities and programmes including Kim Hill, Morning Report, Checkpoint, Sunday Morning and Saturday's Top o' the Morning.

Concert FM is Radio New Zealand's fine music network, broadcasting a programme of mainly classical music and spoken features about music, now 24 hours a day, on the FM band. The network actively promotes the work of New Zealand composers, musicians, music organisations and artists, and is an important showcase for the best of New Zealand work.

The AM Network broadcasts all sittings of Parliament from transmitters in Auckland, Napier, Wellington, Christchurch and Dunedin.

Radio New Zealand International is the country's international shortwave service, providing news and information programmes to listeners in the South Pacific 19 hours a day. RNZ International's 100 kilowatt signal is beamed to the South Pacific but can be heard by listeners as far away as Japan, North America, the Middle East and Europe.

Cleaning the satellite dishes near Warkworth is done by abseilers more quickly and safely than by traditional steeplejack's equipment.

Radio New Zealand News provides general, business and rural news, and current affairs for National Radio and Concert FM. International news services, correspondents overseas, and our own reporters in several centres deliver news to our listeners throughout the day, every day.

Archives—Radio New Zealand Sound Archives maintain this country's premier sound collection. Nga Taonga Korero is the Maori and Pacific Island broadcasting archive.

The Radio Network of New Zealand Limited. The Radio Network—formerly the government-owned Radio New Zealand Commercial—commenced operations as a private radio broadcaster on 1 August 1996. It is owned by a consortium comprising radio, newspaper and outdoor advertising group Australian Provincial Newspapers Holdings Limited. US radio and television operator Clear Channel Communications Inc., and local newspaper and publishing group Wilson & Horton Limited.

In November 1996, The Radio Network acquired Prospect Limited, whose stations included the original ‘pirate’ station Radio Hauraki, Easy Listening i98FM, and the IRN News and Sports service.

The Radio Network is now made up of 50 stations, The Radio Bureau, Stooges Production Studio, Radio Network Sport, and the Radio Sport Network (Sports Roundup). Its radio stations are heavily branded in names and formats such as Newstalk ZB, Classic Hits, ZM and the 13 community radio stations in the rural heartland.

The Radio Network now has one-third of the commercial radio stations in New Zealand. A commercial network links stations for national and international news, as well as special programme features, talkback and sport.

The Radio Bureau—This is the radio industry's one-stop-shop for advertising, owned by The Radio Network. It manages the sale and placement of radio advertising from advertising agencies and national clients for Radio Network stations and other private stations. The Radio Bureau represents virtually all radio stations in New Zealand.

Stooges Production Studio—This is a creative resource based in Wellington producing radio scripts, commercials, and promotional trailers for all Radio Network stations and private clients.

Radio Sport Network—New Zealand's first full-time sports network was launched by The Radio Network in December 1997, as an extension of Sports Roundup broadcasting over 14 different frequencies from Whangarei to Invercargill.

The Radio Network has Internet addresses www.hauraki.xtra.co.nz (Radio Hauraki) and www.audionet.co.nz (91ZM Wellington).

Private radio broadcasters. The Ministry of Commerce estimates there are now over 180 radio stations broadcasting separate programmes on a continuous basis, compared with 64 in 1988. Following the sale of Radio New Zealand's commercial stations, all but three radio stations are now privately owned. A variety of formats is offered throughout the country including ‘classic hits’, ‘easy listening’, ‘Top 40’, ‘classic rock’, and talkback stations. From 1 October 1996 the Independent Broadcasters Association changed its name to the Radio Broadcasters Association (RBA). Based in Auckland, this represents the private companies operating independent radio stations in all metropolitan and provincial markets, including locally-operated, network and iwi stations. The RBA provides services, including a defamation insurance scheme, for 110 member radio stations. News and sports are provided to some RBA member stations by Auckland-based Independent Radio News.

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. Licences are allocated to appropriate community organisations which are responsible for ensuring that all interested groups have access to airtime on the frequencies. Use of reserved frequencies is restricted to non-profit activities.

Access radio stations. Access stations operating on reserved frequencies provide airtime on a nonprofit basis to a range of minority groups in the community. In 1997 there were 11 access radio stations operating in New Zealand. All have been assisted by NZ On Air, whose funding for access radio in 1996-97 was $1.4 million (the same as in 1995-96).

Newspapers and magazines

New Zealand has a high number of daily newspapers in relation to its population size. There are 28 daily newspapers, of which 20 are evening papers, nearly all of them published in provincial towns and cities. Of the 8 morning dailies the Auckland-based New Zealand Herald has the largest audited net circulation at 223,438 copies daily. The largest provincial paper is Hamilton's Waikato Times with an audited net circulation of 42,000. Other daily newspapers have circulations ranging from about 2,400 to about 100,000.

The majority of the country's daily papers are owned by two major publishing groups. Independent Newspapers Limited and Wilson and Horton Limited. Between them, these two groups now account for almost 90 percent of New Zealand's aggregate daily newspaper circulation of about 1 million copies daily. The previously dominant pattern of single family, or partnership, style of newspaper ownership survives only in some centres.

The final (214th) issue of Broadsheet, New Zealand's own feminist magazine, was published in 1997. Its 25 years of continuous publication began in July 1972. The concerns it dealt with in the 1970s were abortion, sex-role socialisation, difficulties women had in securing bank credit and mortgages, equal pay and alternative family structures. Broadsheet was published by a collective with mainly voluntary effort.

Daily newspapers are widely read. On a typical day more than 1.7 million New Zealanders over the age of 10 read a newspaper and New Zealanders spend approximately $3.4 million per week on their daily newspapers (including Sundays).

There are two Sunday newspapers, Sunday Star Times and Sunday News. both published by Independent Newspapers Limited and distributed nationwide. The Sunday Star Times in particular has enjoyed strong growth and now circulates 195,432 every Sunday.

The New Zealand Community Newspapers Association has 116 members which between them publish 2.3 million copies per issue of community newspapers, most of them delivered free to all households in their recognised circulation area, although 11 have paid circulations. The great majority are tabloid, but six are broadsheet. Most are weekly, but about 27 are bi- or tri-weekly and 3 are fortnightly. Many of these community papers 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.

Through its international agreements with Reuters, Australian Association Press (AAP) and other news organisations around the world, the co-operatively owned New Zealand Press Association (NZPA) ensures that all New Zealanders are kept in touch with what is going on in the world around them.

Table 11.2. MAGAZINE CIRCULATION

PublicationCirculation
Jan-June 1995Jan-June 1997Published
Source: Audit Bureau of Circulations
AA Directions517,991526,136Alternate months
TV Guide268,537263,790Weekly
NZ Woman's Day221,086203,519Weekly
Grapevine100,463149,658Monthly
Reader's Digest (NZ Edition)150,114136,095Monthly
NZ Woman's Weekly132,520129,523Weekly
Computer Buyer118,081124,116Alternate months
Australian Woman's Weekly (NZ Edition)104,752103,074Monthly
NZ Listener106,45796,320Weekly
Straight Furrow 89,878Fortnightly
Rural News81,96089,890Fortnightly
Agtrader85,40685,872Monthly
Farm Equipment News85,42085,872Other
Tearaway75,21676,798Monthly
NZ Gardener76,82275,748Monthly
The Strip55,21760,587Monthly
Little Treasures64,83559,429Alternate months
Video Magazine-58,517Monthly
Next46,45157,692Monthly
New Idea83,59752,679Weekly
NZ House & Garden38,78245,772Monthly
Crosslink48,86343,690Monthly
Family Times42,000Quarterly
Time (NZ Edition)40,99341,718Weekly
Auckland Today36,45741,650Alternate months
Country Wide Rural Newspapers57,262-Monthly

New Zealanders enjoy one of the most free presses in the world (see separate article).

Newspapers participate from an editorial perspective in the Commonwealth Press Union (CPU) based in London. This commonwealth-wide organisation of journalists and publishers is actively involved in promoting and defending press freedom throughout the commonwealth by use of training, communications and advocacy.

There are over 2,300 magazines available in New Zealand on a regular basis, many of which are imported. Of this number, 165 are listed with the New Zealand Audit Bureau of Circulations as being published in New Zealand or New Zealand editions. One hundred and forty-five of these were audited in the period between January and June 1997. Of these, 73 were published monthly and 38 in alternate months.

Advertising

Advertising industry. Approximately 1,000 people are employed in advertising agencies, and 2,500 in advertising-related services. Advertising revenue also contributes to the employment of another 10,000 people in the publishing, radio and television industries.

At the end of March 1996, there were approximately 150 agencies, most of them New Zealand-owned, with 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 30 in 1997.

Mainstream media advertising for the year ended March 1996 was approximately $1.365 billion. Substantial additional money was spent on advertising using direct mail, telemarketing, display material, brochures and the like, although accurate estimates of this are not available. Expenditure in this category would certainly be in excess of $500 million. Forty-five percent of expenditure on media advertising was made through advertising agencies, with agencies placing around 80 percent of advertising on television, 30 percent in magazines, 30 percent on radio, 30 percent in newspapers and 20 percent of advertising through other media.

Table 11.3. MEDIA ADVERTISING1

Medium19961997
ExpenditureShareExpenditureShare

1All cash advertising revenue plus agency commission where applicable.

Source: Advertising Agencies' Association of New Zealand Inc (actual media revenue).

 S(million)percent$(million)percent
Daily newspapers4443345033
Community newspapers12091239
Television4763647835
Radio1581216512
Magazines1271013010
Outdoor and cinemas171191

Table 11.4. ADVERTISING EXPENDITURE BY INDUSTRY, 1997

IndustryExpenditure
Source: AGB McNair (rate card basis)
 $(million)
Retail137
Foodstuffs186
Leisure/travel/entertainment265
Agriculture/industry/office31
Household137
Investment/finance/banking66
Toiletries/cosmetics98
Automotive117
Beverages84
Pharmaceutical57
Government departments, services and community90
Telecommunication68

Industry organisations and self-regulation. The Advertising Agencies' Association of New Zealand (known as the 3As) is an incorporated body representing the interests of its members on issues affecting the advertising industry and agencies. There are 40 member agencies which collectively represent about 85 percent of agency billings in New Zealand with combined turnover of around $900 million. The Association of New Zealand Advertisers represents the interests of advertisers and has 90 members.

The industry has a self-regulatory system managed by the Advertising Standards Authority, and the Advertising Standards Complaints Board. The authority's function is to promulgate codes of practice and develop policies on advertising standards. The board's function is to adjudicate on complaints and advise the ASA on codes and public issues.

11.2 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 competition 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 established itself in the market, offering domestic and international toll, leased line services, and telephone services to business users. 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. An example of the choice which this promotes is in the Amps cellular mobile phones category, where there are currently some 180 product telepermits. There are numerous suppliers of services such as packet switching, pay phones and private networks.

In recent years, new services and technologies have been introduced into the telecommunications market. These include ISDN services for business users, PCS (Personal Communications System) services for businesses, video conferencing, interactive voice response systems, centrex and frame relay, all of which are now widely available. A range of ATM-based broadband services is now available.

Competition in long-distance and international services has increased substantially since 1989. All New Zealand telephone customers have access to alternative services from Telecom New Zealand and Clear Communications and, to a lesser degree, Telstra New Zealand, Global One and WorldXChange. There are also a number of callback operators providing international services. Telecom, Clear and Telstra provide 0800 freephone services, and industry participants have agreed to the introduction of 0800 number portability. Local loop competition in particular niches has begun—Clear offers local telephone services in the central business districts of main centres, and Saturn has announced its intention to enter the local call market in the Wellington area.

Scene from an advertising sequence about use of phone boxes.

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 to 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 the Government at the request of telecommunications operators.

  • Following an August 1995 discussion paper on “Vertically Integrated Natural Monopolies,” the Government in June 1996 reaffirmed, for the time being, the present regulatory regime based on the Commerce Act. However, the Government said it considered that use of the Baumol-Willig rule had potential to lessen competition in telecommunications and it would be concerned to see the rule being applied in future. [The Baumol-Willig rule provides that the incumbent should be compensated for the incremental costs of supplying access to competitors, plus the opportunity costs incurred by not restricting access to itself. It was validated by the Privy Council in the local access case between Telecom and Clear.] Concerned about the slow progress in the development of number portability, the Government requested a report on options for facilitating number portability in New Zealand.

  • The Coalition Government's December 1996 Statement of General Policy Direction in Telecommunications stated that it would: “amend the Commerce Act to provide for penalties when actions are brought by parties other than the Commerce Commission. Our preference is for the Commerce Commission and the Ministry of Commerce to address competition issues. However, if this does not produce effective competition, Government must be prepared to ensure it does, firstly by producing Government Policy Guidelines on interconnect, transparency and number portability and if necessary by amending the Telecommunications Act.”

Telephone services. New Zealand continues to have a high telephone density, with 477 main lines per 1,000 people. The telephone network provides 1.814 million (as at 30 September 1997) main lines. The network is one of the most advanced in the world, with 99 percent of customers served by digital exchanges. Customers connected to a digital exchange have access to an additional range of telephone services.

Telecommunications services by cable, satellite and radio are available to almost all countries of the world. Extensive competition has developed in the provision of international services, with Telecom, Clear, Optus Pty Limited (the Australian satellite operation), Global One, WorldXChange, Voyager (Internet-based), and Telstra offering services overseas.

Cellular and other mobile services, including paging and mobile radio, have developed rapidly. In 1987, Telecom began operating a cellular network based on the AMPS-B frequency. The network, which provides extensive land and mobile coverage, is currently available to about 97 percent of the New Zealand population, with about 15 percent of the population using mobile phones. Telecom began introducing a digital cellular network in 1992, after winning the AMPS-A frequency in open tender in 1990. BellSouth offers a GSM cellular telephone service using the TACS-A band of radio spectrum and now has 91 percent population coverage. The fourth cellular frequency, TACS-B was won in open tender in 1993 by Telstra (formerly Telecom Australia), who recently sold it to BellSouth New Zealand as part of an agreement which provides Telstra with the right to resell BellSouth's cellular service.

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 transmission at extremely high volumes and speeds. Growing numbers of customers are using video conferencing services to link up with people in other places within New Zealand, and overseas. A new trans-Tasman optical fibre cable system (TASMAN 2) was commissioned in 1992. The PacRim East submarine cable from Auckland to Hawaii was completed in 1993. PacRim West, linking New Zealand with Asia, came into service in March 1995. Telecom New Zealand and Optus Australia are planning a new international cable project—Southern Cross—which will provide about 20 times more capacity than existing routes put together.

Significant new intelligent network platforms have been introduced into the network. These provide 0800 and 0900 services, wide area Centrex, automated calling card, virtual private networks, voice mail services and call answering facilities.

A new telecommunications service between New Zealand and Antarctica's Scott Base was introduced in January 1992. Using this service, Scott Base staff are able to connect to the Crown Research Institutes' computer network in New Zealand, and through gateways from this network to international science and computing networks. Scientists based in New Zealand and other countries are able to monitor their Antarctic experiments, helping to manage them from many thousands of kilometres away. See section 11.4 for further discussion of international and national computer networks.

Telecom Corporation of New Zealand Limited (Internet address www.telecom.co.nz) is the leading supplier of telecommunications services in New Zealand and operates one of the most technologically advanced communications networks in the world. The advanced digital network is the result of a $5.9 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 99 percent of the total number of lines are connected to digital exchanges, and fibre optics have been extensively deployed in major city CBDs and along main trunk routes.

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. Following a joint worldwide offering by Bell Atlantic and Ameritech in July 1991 and further sales in 1993, each of these US companies held 24.95 percent of the share capital in Telecom as at 31 March 1997.

In December 1997, Ameritech announced its intention to sell its share in Telecom through a public offering, while Bell Atlantic has announced its intention to restructure its holding.

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. In May 1996 XTRA, an Internet access, navigation and content service was launched and by September 1997 had gained more than 70,000 customers.

Clear Communications Limited. In response to the deregulation of the New Zealand telecommunications industry, Clear 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 British Telecom. Each holds 24 percent of the company.

In addition to its core toll service, Clear is an internet service provider, offers business local services, data services, and is New Zealand's provider of the Concert global communications services. In an agreement reached with the Telecom Corporation of New Zealand Limited, Clear interconnects its long distance network to the Telecom local networks for the operation of these services. Leased circuit operations commenced in December 1990 and toll services in May 1991.

Subscribers can make both national and international toll calls through existing telephone equipment. No new numbers, special equipment or connections are required. Clear toll services are available throughout New Zealand.

Clear Communications has one of the world's most modern telecommunications networks, consisting of fibre optic cables, digital microwave radio facilities, a satellite earth-station and digital switches supplied by Northern Telecom of Canada. It employs around 1,000 staff in 12 offices nationwide. Clear's Internet address is www.clear.co.nz

Telegrams. The inland and international telegram service is operated by The Telegram Company, a subsidiary of New Zealand Post. Telegrams can be lodged by freephone or at a Post Shop, and are delivered within New Zealand by courier (to addresses in 16 main centres) or by FastPost elsewhere.

RESIDENTIAL TELEPHONE CHARGES
Basket comparison of annual cost, 1997

Wacky letterboxes were the subject of one series of 1997 postage stamps.

11.3 Postal services

Until 1998, New Zealand Post Limited had the sole right to carry standard letters weighing up to 200 grams, unless 80 cents or more per item was charged. The Postal Services Act 1998 removed this monopoly and permitted full competition in all areas of the postal services market.

All postal operators are required to be registered by the Ministry of Commerce. All mail must carry a mark to identify the postal operator which carried it and postal operators are given rights to open mail in certain circumstances (eg so that it can be returned to the sender when an address is illegible), and erect letterboxes.

Under a Deed of Understanding with the government, New Zealand Post Limited is required to meet certain social obligations, including:

  • maintaining a minimum number of delivery points and postal outlets;

  • maintaining 5 or 6 day a week delivery to 99.88 percent of delivery points:

  • not increasing the price of a standard letter beyond 45 cents for a period of at least three years;

  • not reintroducing the rural delivery fee, which was abolished on 1 April 1995; and

  • providing competitors with access to its network on terms and conditions that are no less favourable than the terms and conditions offered to equivalent customers.

A similar deed between the government and the company has been in existence since 1989, but had expired and been renegotiated on a regular basis. The new deed has been established for an indefinite period, but with provision for review after three years.

For a minimum period of five years New Zealand Post Limited will be the sole operator designated as New Zealand's “postal administration” to the Universal Postal Union (UPU) and will have the exclusive right to issue “official” UPU-stamps that have the words “New Zealand” printed by themselves. After five years, the government will have the option of designating additional operators to fulfil New Zealand's international postal obligations.

New Zealand Post Limited

New Zealand Post Limited is owned by the New Zealand government as a State-Owned Enterprise (SOE) with the shares held by two ministers on behalf of the Crown—the Minister for State-Owned Enterprises and the Minister of Finance.

New Zealand Post's core business activities are message communication in letters, distributing courier and parcel items and financial transactions. It provides stamps and telegram services as well as data processing and mail production services. Through the Electoral Enrolment Centre, the company maintains the country's electoral rolls under a contestable contract with the Ministry of Justice.

On 2 October 1995 the price of standard letter postage was reduced from 45 cents to 40 cents, at the time a world first. Rates for bulk medium-sized letter mail were also reduced for the third time in three years.

New Zealand Post's Internet address is: www.nzpost.co.nz

Table 11.5. POSTAL OUTLETS

As at 31 March199519961997
Source: New Zealand Post
Post Shops (including franchises)259288297
Post Centres705683705
Stamp resellers3,5893,5993,663
            Total4,5534,5704,665

Table 11.6. POSTAL DELIVERY POINTS AND VOLUME OF ARTICLES POSTED

 Year ended 31 March
199519961997
Source: New Zealand Post
Deliveries tonumber
Residential1,079,2901,125,7891,105,824
Business49,98253,81653,484
Private Box and Bag158,890164,517169,484
Rural Delivery107,781128,577146,266
Other30,35825,32725,262
            Total1,426,3011,498,0261,500,320

Inland postal services. Any postal item, from a letter to a parcel up to 20 kilograms, can be sent by ‘FastPost’ or standard post. FastPost targets next working day delivery between major towns and cities, with Post targeting next working day delivery across town, and two to three working days across New Zealand. Other services include Boxlink, Registered Post and Parcel Post. CourierPost offers Urgent, Overnight and Economy delivery services. CourierPost's Track and Trace service gives customers the ability to check on their item at any time from pick-up to delivery. New Zealand Post also provides discounts for bulk mail and handles unaddressed mail (circulars) and direct mail.

Postal volumes. For the year ended 31 March 1997, New Zealand Post carried Post 804,201,000 medium letters (1996: 774,241,000) and 14,701,000 FastPost medium letters (1996: 15,158,000).

Overseas mail services. SeaPost, EconomyPost and AirPost International services are operated from New Zealand. CourierPost International offers top priority delivery of letters, documents and parcels to 219 countries. EMS International offers an Express Mail Service for urgent documents to over 120 countries, delivered via the EMS network operated by postal administrations worldwide. Other services include RegisteredPost International and International Business Reply.

Stamp issues. New Zealand Post's Stamp Business Unit produces around 12 commemorative stamp issues each year and one to three definitive stamp issues. A variety of philatelic products is sold by mail order through the Philatelic Bureau at Wanganui, at stamp sales centres and through Post Shops.

Table 11.7. 1997 STAMP ISSUES

DateIssueDenominations
Source: New Zealand Post
15 JanuaryYear of the Ox—NZ Cattle40c, 80c, $1.00, $1.20, $1.50, $1.80
12 FebruaryMillennium—Discoverers40c, 80c, $1.00, $1.20, $1.50, $1.80
 $10 definitive—Mt Ruapehu$10.00
19 MarchVineyards40c, 80c, $1.00, $1.20, $1.50, $1.80
 Wacky letterboxes booklet10 x 40c
7 MayCentenary of Pigeon Post40c, 80c
 NZ Art—Colin McCahon40c, $1.00, $1.50, $1.80
18 JuneHealth (kid's competition)2 x 45c, 85c
 Health miniature sheet$1.75
 Fly fishing40c, $1.00, $1.50, $1.80
6 AugustScenic trains40c, 80c, $1.00, $1.20, $1.50, $1.80
 Definitive $1 Kiwi—purple$1.00
28 AugustOlympic Gold40c
3 SeptemberChristmas—Te Harinui40c, 70c, 80c, $1.00, $1.50, $1.80
 Christmas booklet10 x 40c
1 OctoberCreepy crawlies booklet10 x 40c
9 OctoberJoint issue China-NZ Roses2 x 40c
 Joint issue China-NZ Roses (miniature sheet)80c
12 NovemberCartoonists40c, $1.00, $1.50, $1.80
 50th anniversary Royal Wedding40c

The retail network. New Zealand Post's retail network consists of 297 company-owned and franchised Post Shops with postal services available at a further 705 Post Centres. Stamps and stamp booklets are available at a further 3,663 outlets.

Delegates at Grey Power's national conference and AGM in Christchurch view Grey Power's Internet homepage.

Financial transaction services including motor registration and bill payment services are available at all Post Shops through the sophisticated PostLink Computer System.

Recent performance. In the 1996-97 financial year New Zealand Post made a profit of $47.7 million after tax ($75 million in 1995-96).

11.4 Information technology

New Zealand has a very competitive information technology (IT) market, with a range of equipment and software companies supplying an avid domestic market and niche export markets overseas. New Zealanders are enthusiastic early adopters of new technologies: the rapid take-up of mobile cellular phones is just one example, with approximately 520,000 New Zealanders subscribing to a cell phone service in September 1997. However, personal computers (PCs) are also becoming a popular consumer technology. Statistics New Zealand estimates that 27.6 percent of New Zealand homes owned a PC in March 1997. Much of the recent growth in PC ownership can be attributed to falling PC prices and the increasing popularity of the Internet. For many New Zealanders a PC is now a regular part of their day at home and at work, for education and as a source of entertainment. Additionally IT is infiltrating New Zealanders' lives in other more subtle ways as embedded chips and software make their way into a range of everyday appliances such as washing machines, cars and televisions.

The Communications Division of the Ministry of Commerce is responsible for providing policy advice to the government on information technology, telecommunications, broadcasting and the radio spectrum. It also manages the radio spectrum and carries out regulatory functions relating to communications. Thus all aspects of information technology convergence are dealt with in the same division. The Minister of Communications also holds the portfolio of Information Technology.

IT Policy unit. The IT Policy unit is part of the Ministry of Commerce's Communications Division. Established in July 1993, the unit's role is to provide policy advice to the Minister for Information Technology and the government on information technology issues as they affect the economy and society. The unit also monitors overseas trends in technology policy and technology developments. Additionally, the unit acts as a point of contact for the IT industry with the government and provides support for the Information Technology Advisory Group (ITAG) and the Interdepartmental Committee on Information Technology (ICIT).

ITAG is a group of approximately 12 senior executives from IT or IT-related companies and academia in New Zealand, established by the Minister for Information Technology in September 1993. Its role is to provide advice to the minister on issues relating to the government's economic policy-making role from an IT supplier and user perspective. It is also charged with acting as an interface between the IT industry and the government and with developing a strategic view of the social and economic impacts of IT.

ICIT's function is to advise the government on issues relating to the government's role as a purchaser and user of IT equipment. As government departments are autonomous and chief executives responsible for all purchase decisions, ICIT's role is concerned with any issues crossing departmental boundaries. ICIT comprises a main committee of six representatives of government agencies and three sub-committees dealing with purchasing, standards and inter-connectivity, and information management, and reports to the Minister of State Services.

The Information Technology Industry. The IT industry comprises those industry sectors whose business is IT related, including computing, broadcasting and telecommunications. At the March 1996 Census, there were just under 42,000 people employed in the New Zealand IT industry. An industry survey conducted by Statistics New Zealand found the industry was worth approximately $3.2 billion in 1996, up by 13 percent from $2.8 billion in 1995. This comprises sales to end users of hardware, computer peripherals, communications hardware, software and services. The survey found software and computer services sales to end users were worth $1.47 billion in 1996.

The survey, now in its third year, also measures IT exports. Exports sales were found to be worth some $292 million in 1996, of which software and computer services were worth $122 million and exports of computer hardware were worth $170 million.

IT is now a significant part of the New Zealand business infrastructure, as development of IT business solutions based on computers and telephone lines make business without a telephone or computer virtually impossible. This, combined with deregulation and increased competition in the telecommunications sector, is helping New Zealand businesses take advantage of the increasing globalisation of markets. The telecommunications infrastructure, now recognised as being one of the best in the world, is helping to make the distance New Zealand is from its major markets no longer the barrier it once was for local businesses.

Internet. The Internet is one of the key information technologies having an impact on businesses and households. It incorporates a huge range of information resources and provides a unique way to view them, as well as providing a new way for people to interact. Connections are being made in almost all parts of the world, but it is almost impossible to know exactly how many people are connecting to the Internet.

A July 1997 survey found there were over 19.5 million host computers connected to the Internet worldwide. Host computers are computers that have their own Internet address and are permanently and directly connected to the Internet. Hosts can be mainframe computers with several hundred users connected or an individual PC with one user. Home or business Internet users who connect by dialling up are not included in the host computer count, so it appears reasonable to assume that the number of actual Internet users is much higher than the number of hosts.

In New Zealand, the Internet has grown quickly from just a few users in the scientific and research communities in the early 1990s. The 1,193 host computers connected to the Internet in New Zealand in July 1991 had risen to 155,678 by July 1997. This is some 43 Internet hosts for every 1,000 people, ranking New Zealand fifth in the world in terms of the number of hosts per population. The country with the highest number of hosts for every 1,000 people continues to be Finland with 66.

Much of the growth of New Zealand Internet is due to an increasing number of businesses going on-line. When an organisation connects to the Internet it typically registers a domain name—a unique identifier that acts as that organisation's address on the Internet. Different types of organisation are allocated domain names according to their type, so a business will have a domain name in the following format—businessname.co.nz, while a school or university might have schoolname.ac.nz. Government organisations register under the govt.nz domain. By October 1997, 13,911 New Zealand organisations had registered a domain name, of which 12,198 (88 percent) were businesses.

Since November 1994 the New Zealand government has had a presence on the World Wide Web section of the Internet. This was an initiative of the IT Policy Unit and was aimed at providing useful government and departmental information on the Internet. A number of departments such as the Treasury established their own web sites and these were also linked into the government site. In November 1995, the Department of Internal Affairs launched a web site which also provided a range of government information and links to departments. In March 1997, the initiatives of the Ministry of Commerce and the Department of Internal Affairs were merged to form one site known as New Zealand Government On-Line (NZGO). NZGO is a one-stop site for information on the government, its constitution, the political scene and links to all departments and agencies with web sites. NZGO is located at www.govt.nz and the Ministry of Commerce home page is www.moc.govt.nz.

Education. IT has over the last decade become a part of the modern New Zealand classroom. Almost all New Zealand schools have computer equipment and telephone and fax lines available for staff and student use. Many are using their computer equipment and phone lines to connect to the Internet to take advantage of the educational resources available. Interactive educational software is also being used by New Zealand schools as this type of software makes mastering the basics fun, and at a higher level provides realistic simulations that help teach complex topics and strengthen students' problem-solving skills. The attraction of IT in teaching is continuing to develop as new IT developments and high-speed communication links combine to bring new and distant educational resources into the classroom.

These developments are also opening up distance-education opportunities for schools. For either remote schools which lack teaching resources or schools unable to offer certain subjects, distance education means using communication links to access educational resources, or schools and educational institutions where those subjects are offered. The resources or other educational institutions can be in the next town or in a country on the other side of the world.

In New Zealand in 1989 most schools had on average about one computer for every twenty pupils. The Ministry of Education 1996 Survey of Computers in New Zealand Schools showed a mean ratio for all schools of 1 computer for every 18 pupils; secondary schools were found on average to have 1 computer for every 10 pupils. The survey found a total of 51,920 computers were available for staff and student use among the responding schools, or on average 19.4 computers per school. The most common type was found to be IBM compatible PCs based on the 486 chip. The survey found that 32 percent of schools were using at least one of their computers to connect to the Internet (26 percent of primary schools and 68 percent of secondary schools).

The Ministry of Education is engaged in a number of IT initiatives, including the draft technology curriculum, which will increase the use of information technology in the classroom. Key among these is teacher training in IT. In 1996 the ministry spent approximately $1.9 million on teacher professional development courses for approximately 1,400 teachers.

The Telecommunications Users Association of New Zealand (TUANZ) is committed to providing information on technology-enabled communications for over 500 members who come from a wide range of organisations including major corporates, government organisations, industry representatives, educational institutions, large and small businesses and individuals. The purpose is to lead informed, sophisticated usage of technology-based communications by business users in New Zealand.

Members receive a monthly magazine, TUANZ Topics, and can attend regular seminars and events throughout the year, including Communications 98 conference. There are three special interest groups within TUANZ:

Interactive New Zealand—the interactive media users' organisation is involved in developing a vibrant industry and raising awareness in the application of ‘new media’.

InterOp—the Enterprise Network group concentrates on issues of interoperability, local and wide area networking.

New Zealand Electronic Commerce—recognises that process automation technologies, and particularly telephone-based computing solutions are ‘tools of business’.

Contributors

  • 11.1 Ministry of Commerce; NZ On Air; Broadcasting Standards Authority; Television New Zealand; TV3 Network Services Limited; Sky Television; Saturn Communications; Radio New Zealand Limited; Radio Network; Newspapers Associated; New Zealand Press Council; New Zealand Audit Bureau of Circulations; Advertising Agencies Association.

  • 11.2 Ministry of Commerce; Telecom Corporation of New Zealand Limited; CLEAR Communications Limited; NZ Post.

  • 11.3 Ministry of Commerce; New Zealand Post Limited.

  • 11.4 Ministry of Commerce; Telecommunications Users Association of NZ Inc.

Special articles

Te Māngai Pāho; AGB McNair; AC Nielsen; Asia 2000; Radio Rhema; Radio New Zealand Sound Archives; Freedom House; New Zealand Press Council; New Zealand Post.

Further information

Mass media

Annual Report of the Ministry of Commerce (Parl paper G.46).

Annual Report of the Broadcasting Standards Authority.

Annual Report of Television New Zealand Limited.

Annual Report of TV3 Network Services.

Annual Report of Radio New Zealand Limited.

Annual Report of NZ On Air.

Code of Broadcasting Practice, Broadcasting Standards Authority.

Information about newspapers, Newspaper Publishers Association (annual).

Summary of Circulations, New Zealand Audit Bureau of Circulations (bi-annual).

Telecommunication

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 G.14).

Report of the Ministry of Commerce (Parl paper G.46).

Annual Report of CLEAR Communications Limited.

Postal services

Annual Report of New Zealand Post Limited.

Report of the Ministry of Commerce (Parl paper G.46).

Chapter 12. Arts & cultural heritage

Fire-breathing bulls made from corned beef tins are the work of artist Michel Tuffery. His exhibition in June 1997 highlighted conflicts within modern Polynesian society.

12.1 Administration

In New Zealand, as in most other countries, both 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. Central agencies charged with assisting the development of New Zealand culture are: Creative New Zealand; 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.

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 Dictionary of New Zealand Biography, National Archives and the Historical Branch.

Ministry of Cultural Affairs

The Ministry of Cultural Affairs—Te Manatu Tikanga-a-iwi, established in 1991, 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 a number of cultural sector agencies and the monitoring of the Government's interest in these organisations.

The ministry administers the Government's funding contributions to the following cultural sector organisations: New Zealand Film Commission; Museum of New Zealand Te Papa Tongarewa; Creative New Zealand; New Zealand Symphony Orchestra; and New Zealand Film Archive.

Capital projects at regional museums. The ministry administers the Policy for government assistance towards capital projects at regional museums, which has been operating since May 1994. This policy recognises that regional museums make an important contribution towards conserving and exhibiting New Zealand's cultural heritage and may hold collections of national significance.

Table 12.1. FUNDING TO THE ARTS AND CULTURAL HERITAGE SECTOR, 1996-971

GroupGovernment fundingLottery grant

1Does not include GST.

2This lottery grant includes the grants to Museum of New Zealand and New Zealand Film Archive shown separately in this table.

Source: Ministry of Cultural Affairs: Lottery Grants Board; Historic Places Trust; Department of Internal Affairs

 $(000)
Museum of New Zealand Te Papa Tongarewa52,2141,250
Creative New Zealand3,91720,250
New Zealand Film Commission1,1118,775
New Zealand Film Archive143675
New Zealand Historic Places Trust2,1301,126
Lottery community facilities (II: Cultural facilities)-202
Lottery environment and heritage (III: Cultural heritage)-8,2632
National Archives8,755-
Dictionary of New Zealand Biography597-
New Zealand Symphony Orchestra8,880-
Historical Branch (Internal Affairs)1,091-
Ministry of Cultural Affairs1,369-
National Library42,128-

Indemnification. The ministry administers the government indemnification scheme for touring exhibitions. Under this scheme, the government facilitates public access to significant cultural exhibitions through indemnifying museums and art galleries against the liability for loss or damage to borrowed exhibitions. One art exhibition—Masters from the Guggenheim at the Dunedin Public Art Gallery—was indemnified during 1996-97.

Cultural Statistics Project. The Ministry of Cultural Affairs and Statistics New Zealand have been working together to improve the range and quality of statistical information on New Zealand's cultural sector. In November 1995, the Cultural Statistics project team published the first report that brings together data on the sector, New Zealand Cultural Statistics—Ngā Tatauranga Whakapuaki Tuakiri o Aotearoa 1995. Household Spending on Culture 1996 was published in November 1996.

Creative New Zealand

Creative New Zealand (the operating name for The Arts Council of New Zealand Toi Aotearoa) is a Crown entity established under the Arts Council of New Zealand Toi Aotearoa Act 1994. It receives funding through Vote Cultural Affairs and from the New Zealand Lottery Grants Board. It is the only body responsible for supporting a full range of arts activity in New Zealand from the innovative and avant-garde to the traditional and classical, and also has a programme of research and information, and concerted advocacy on behalf of the arts.

Funding support for the arts. Funding is made available under eleven objectives. These ensure support for activities as diverse as concert tours, arts magazines, new art works and performances, artist residencies, and post-graduate study in the arts. Grants totalling $20.15 million ($19.4 million in 1996) were allocated to each of these objectives for the year ended 30 June 1997:

Arts in the communityto encourage participation in a wide range of arts activities$2,574,000 (12.8 percent)
Arts presentationto assist in presenting the arts to New Zealand audiences$8,518,300 (42.3 percent)
Māori participationto increase Māori participation in their arts (ngā toi Māori)$484,200 (2.4 percent)
Arts awarenessto increase access to and participation in the arts through extending knowledge, experience and understanding of the diverse arts of New Zealand$1,283,800 (6.4 percent)
Arts accessto increase access to the arts and participation by people and communities whose involvement is otherwise limited$564,700 (2.8 percent)
Arts developmentto support the creation of work of high quality and originality$4,070,300 (20.2 percent)
Māori arts developmentto support the maintenance and development of Māori arts and artists$1,152,800 (5.7 percent)

Iron jumbo created by Auckland sculptor Jeff Thomson travels to his new owner in Invercargill

Art in the environment. Stone circle, a sculpture by Martin Hill at Whanganui Bay on Lake Taupo

Pacific Islands arts developmentto support the maintenance and development of the arts of Pacific Island people living in New Zealand$299,700 (1.5 percent)
International arts promotionto encourage promotion of New Zealand arts internationally$407,400 (2.0 percent)
Indigenous arts promotionto help develop links between Māori artists and with artists from other indigenous cultures$200,300 (1.0 percent)
Professional developmentto support and encourage professional development of New Zealand's artists and art workers$597,000 (3.0 percent)

In 1996-97, Creative New Zealand supported more than 800 projects and programmes. As well as annual grants to organisations such as the Royal New Zealand Ballet, the Auckland Theatre Company, Chamber Music New Zealand and Toi Māori Aotearoa, Creative New Zealand supported activities and individuals across all artforms eg the Indian Ink Theatre Company to devise the script and stage Krishnan's Dairy; the Auckland Secondary Schools Maori and Pacific Islands Cultural Festival; an exhibition of New Zealand quilts in Vancouver; and the Wellington Fringe Film Festival.

The Creative Communities New Zealand scheme is a partnership between Creative New Zealand and the country's 74 local authorities to support the arts at a community level. Local decision-making is the key to this scheme, which distributed $2.5 million to community arts in 1996-97.

In October 1997 Creative New Zealand announced reduced funding (averaging about 10 percent) to annually-funded organisations.

Special funds, awards and scholarships. The Screen Innovation Production Fund for short films is a partnership with the New Zealand Film Commission. The New Zealand Authors' Fund, administered by Creative New Zealand, compensates authors for loss of earnings when their books are borrowed through public libraries. A total of $890,000 was allocated to the Authors' Fund in 1996-97 and in the following year. Creative New Zealand is carrying out a review of the Authors' Fund.

Creative New Zealand also: funds several awards including the $25,000 Te Waka Toi Award, won in 1997 by weaver Hinemoa Harrison and master carver Dr Pakariki Harrison; supports the Pacific Islands Artist Award of up to $44,000, which was awarded to Tongan-born musician Bill Sevesi in 1997; sponsors a special award for arts journalism in the annual Qantas Media Awards, to encourage both the quantity and quality of arts coverage in the media; and co-sponsors the prestigious Montana New Zealand Book Awards.

Advocating for the arts. A major focus of Creative New Zealand's work in the past year has been seeking a greater commitment by New Zealanders to the arts, and increased funding for the arts from both the public and private sectors. A special, one-off grant of $500,000 from the New Zealand Lottery Grants Board enabled Creative New Zealand to produce Creative Explorer, a ground-breaking, interactive CD-ROM. Featuring six New Zealand artists, the CD-ROM was distributed free to all schools with year 7 and 8 pupils in early 1998, reaching more than 342,000 children.

Another highlight of the year was the launch of Creative New Zealand's website (http://www.creativenz.govt.nz) which includes up-to-date news on the arts and two databases. The Presenters' Network contains organisations and individuals that host, organise and promote arts tours, while Cultural Contacts contains organisations in the New Zealand arts and cultural sector.

Artist-activist Tame Iti, photographed with kuia Ramai Hayward next to Charles Goldie's portrait of Wiremu Patara Te Tuhi, part of a major Goldie exhibition in Auckland

Research into the arts. In 1997, the Ministry of Cultural Affairs conducted a random survey of 937 New Zealanders. The results show that more than 90 percent of New Zealanders believe cultural activities enrich their lives. But key questions remain unanswered. How many New Zealanders participate in the arts? Who are New Zealand's professional artists? What sort of living can they earn from their art? Information of this kind is vital for effective planning and policy.

A major survey on participation in the arts (a joint project between Creative New Zealand and the Hillary Commission) was launched in April 1997; the annual survey of museums and public galleries, New Zealand Museums: Facts and Trends 1990-1996, was published; and research on the visual arts sector commenced. Data from the surveys will not only provide insights into the arts of New Zealand but will help Creative New Zealand and other organisations develop policy and advocate for the arts.

Structure. Creative New Zealand has a council, two boards—the Arts Board and a Māori arts board: Te Waka Toi. The Arts Board appoints a Pacific Island Arts Committee. The two boards are responsible for allocating funding to the arts, within a policy framework set by the seven-member council. Te Waka Toi is responsible for those objectives of the council which are “for Māori by Māori” and aimed at maintaining, developing and promoting Māori arts. The Arts Board has a similar role for all other New Zealanders. The Pacific Islands Arts Committee focuses on advice and programmes to promote and maintain Pacific Islands' arts and cultures in New Zealand.

The two boards may establish community arts councils, at the request of the community concerned. At present there more than 100 such councils throughout New Zealand. With the implementation of the Creative Communities scheme, many community arts councils are redefining their role as co-ordinators, facilitators and presenters of the arts at the local level. In some instances local authorities have contracted community arts councils to provide arts-related services in their local community, and community arts councils are represented on most Creative Communities scheme allocation committees.

Creative New Zealand has offices in Wellington, Auckland and Christchurch.

Strategic plan for 1998-2001. Creative New Zealand is required to publish a three-year strategic plan every three years. The current plan, covering 1995-98, was introduced when Creative New Zealand replaced the Queen Elizabeth II Arts Council in 1994. Following public consultation on the draft strategic plan for 1998-2001, the new plan will be implemented in July 1998.

Copyright

Copyright in New Zealand is based on the Copyright Act 1994, administered by the Ministry of Commerce. Copyright law is complex and only the essential aspects are discussed here.

Copyright protection in New Zealand comes into existence automatically on the completion of any original literary, dramatic, musical and artistic work (including photographs), sound recording, film, broadcast, cable programme and published edition. Computer programs gain copyright protection under the definition “literary work.” No registration is necessary (or even possible) nor is any other formality required for securing copyright protection.

Duration of copyright. For literary, dramatic, musical and artistic works (including photographs) copyright continues for 50 years after the end of the calendar year in which the author died. For sound recordings and films, copyright generally continues for 50 years from the end of the calendar year in which they were made. For broadcasts and cable programmes copyright continues for 50 years from the end of the calendar year in which they were made (broadcasts) or included in a cable programme service (cable programmes). Copyright in published editions is for 25 years from the end of the calendar year in which they are first published.

Ownership of copyright. The first owner of copyright is usually the author or maker. However, if this person was employed and made the work in the course of employment then the employer is usually the first owner. If the author or maker of some kinds of work (such as sound recordings, films, photographs and computer programs) was commissioned to make that work, the first owner is usually the person who commissioned the work. For works commissioned or made by an employee the parties can agree to vary the usual first ownership rule. Copyright can be assigned in writing to another person.

Moral rights. The author of literary, dramatic, musical or artistic work, or the director of a film, has the right to be identified as the author or director provided this is asserted in accordance with the Copyright Act. Authors and directors also have the right to object to certain treatments of their work which are derogatory (prejudicial to their honour or reputation). These rights cannot be assigned.

Performers' rights. Performers have rights to prevent the recording or live broadcast or inclusion live in a cable programme of certain performances.

Enforcement of copyright in New Zealand is available by civil action or criminal action. Criminal liability for breach of copyright can extend to $50,000 or 3 months imprisonment. Remedies from civil action include damages, injunctions, or an order for delivery up.

Copyright Tribunal. Certain disputes about or proposals for licences allowing the copying, performing and broadcasting of works may be heard and determined by the Copyright Tribunal.

Protection overseas. Generally speaking the copyright protection given in New Zealand also extends to works originating from countries that are party to the Berne Convention for the Protection of Literary and Artistic Works; the Universal Copyright Convention; and the World Trade Organisation (WTO) Agreement. New Zealand is party to all three. Conversely, countries that are party to either convention or the WTO Agreement must give works originating from New Zealand the same protection that they give to works produced by their own nationals.

Censorship

The Films, Videos, and Publications Classification Act 1993 united censorship provisions for all types of publications under a single consistent regime. The act defines a ‘publication’ as:

  1. 'film, book, sound recording, picture, newspaper, photograph, photographic negative, photographic plate, or photographic slide:

  2. Any print or writing:

  3. Any print or other thing—

    1. That has printed on it, or otherwise shown upon it, any word, statement, sign or representation; or

    2. On which is recorded or stored any information that, by the use of computer or other electronic device, is capable of being reproduced or shown as any word, statement, sign, or representation:'

Film is further defined as including cinematographic film, video recordings, and any other material record of visual moving images.

Administration. The act came into force on 1 October 1994 and replaced the existing censorship bodies with:

Industry Labelling Body—an industry-based group, including at least one community representative, responsible for issuing labels for films and videos which would not be classified as restricted or objectionable. It is guided by classifications assigned by nominated overseas bodies. Ratings are consumer guides only and do not carry legal sanctions. If a film is likely to be restricted or objectionable, or if the body is having difficulty assigning a rating, the film must be referred to the Office of Film and Literature Classification.

Office of Film and Literature Classification—classifies publications that are likely to be restricted or objectionable. Publications can be films, video recordings, film and video advertising material, CD-ROMs, magazines, sound recordings, computer games, photographs and photographic negatives. The office is a stand-alone Crown entity made up of a Chief Censor, a Deputy Chief Censor, classification officers and support staff. The Chief Censor and Deputy Chief Censor are appointed by the Governor-General on the recommendation of the Minister of Internal Affairs with the agreement of the Ministers of Women's Affairs and Justice.

Films may be submitted to the office by the labelling body (on behalf of distributors), the Secretary for Internal Affairs, the Comptroller of Customs or by any other person with the leave of the Chief Censor. Members of the public, industry and enforcement agencies may also submit publications other than films. The Chief Censor can also ‘call in’ publications where deemed necessary. Classifications assigned by the office are legally enforceable. The act makes the possession of objectionable (that is, banned) publications illegal. This applies whether or not the publication has been classified by the office.

Film and Literature Board of Review—made up of members of the public appointed by the Governor-General on the recommendation of the Minister of Internal Affairs, with the concurrence of the Ministers of Justice and Women's Affairs. The act entitles the original applicant, the owner, maker, publisher or authorised distributor, or any other person given leave by the Secretary for Internal Affairs, to submit a publication to the board for a review of its classification.

Classification. The act established a legal test which looks at whether the availability of a publication would be injurious to the public good. This test is applied to publications in order to ascertain whether restriction is required, and what level of restriction is appropriate. In general, publications classified by the office deal with matters such as sex, horror, crime, cruelty or violence.

There are three general levels of classification under the 1993 act: unrestricted, restricted and objectionable.

Following classification, films and videos are labelled according to a ‘traffic light’ system: green for unrestricted; yellow for unrestricted films recommended for a certain age; and red labels for restricted material. Computer games requiring restriction are labelled in the same way as films.

Publications other than film are not required to be labelled unless specific display conditions have been imposed. Publishers of magazines and books are not automatically required to submit their products to the office, but if a publication is later found to be objectionable after it has been made available, then the publishers and distributors may be prosecuted.

Enforcement. The Department of Internal Affairs has retained an enforcement role and employs a number of inspectors of publications. The role of the inspectors is to ensure that classified publications are supplied in accordance with their classification, that restricted level material is not supplied inappropriately, and that objectionable publications are not available for supply or possession. New Zealand Customs and the Police are also involved in enforcement.

The final panels being added to the 8m stained glass doors of the marae at the Museum of New Zealand Te Papa. Designed by Robert Jahnke, of Ngati Porou, the doors face north across Wellington Harbour and represent Tane as he separates from his parents, Raangi, the sky father, and Papatuanuku, the earth mother

12.2 The national collection

Art galleries and museums

There are approximately 600 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.

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.

Te Papa. The Museum of New Zealand, Te Papa Tongarewa, New Zealand's national museum, opened to the public for the first time on 14 February 1998. It seeks to tell the stories of all New Zealand's peoples, its culture and its unique natural environment.

Highlights among Te Papa's innovative permanent exhibitions include Golden Days, a sweeping survey of the highs and lows of the New Zealand experience, and The Time Warp, a high-tech interactive journey into the country's ancient past, its exciting present, and its near future. Te Papa also presents a range of travelling exhibitions representing the best of the rest of the world, and has food and retail facilities, a conference centre, and a 300-seat theatre.

All of the museum's exhibitions are underpinned by a commitment to scholarship and mātauranga Māori and an intensive research programme based on the collections is a feature of Te Papa's activities. This activity is supported by the Hector Library, a major resource for researchers in the fields of art, the natural environment, ethnology, and early European exploration.

The collections are particularly strong in the areas of natural environment, and Polynesian, Micronesian and Melanesian art and culture. Te Papa is also a showcase for Māori art and culture—it is the only museum in the world to include a fully functioning marae—and a number of major taonga may be seen on display, including Te Hau ki Turanga, the oldest extant Māori building in New Zealand, and a number of waka.

Historic places

New Zealand Historic Places Trust: Pouhere Taonga. The country's leading heritage agency since 1955, the New Zealand Historic Places Trust is now a statutory non-Crown-owned entity. With the advice and support of the Māori Heritage Council in matters of significance to Māori, the trust's board is responsible for promoting nationally the identification, protection, preservation and conservation of the land-based historic and cultural heritage of New Zealand. This includes buildings and archaeological sites, historic areas, and wahi tapu which are sites of special, often sacred, significance, to Māori. The trust's Māori name Pouhere Taonga means ‘pillar that binds all treasures’.

One of the trust's key tasks is to access and process nominations for the national register of historic places established by the Historic Places Act 1993. This register is for historic places which comply with the interpretations and criteria of the Historic Places Act. The Resource Management Act requirement for territorial authorities to 'have particular regard to ... recognition and protection of the heritage values of sites, buildings, places or areas' has resulted in a variety of different criteria being developed by individual territorial authorities when listing local heritage places to be covered by protective mechanisms in their District Plans. An important aspect of the trust's work has become liaison with territorial authorities to ensure that registered historic places and sites are listed and receive the protection available through district plan provisions. Staff and trust branches also liaise with and provide heritage advice to private owners of registered historic places.

Historic places are registered under two categories:

  • Category I Places of special or outstanding historical or cultural heritage significance or value.

  • Category II Places of historic or cultural significance or value.

Historic areas, wahi tapu and wahi tapu areas are included on the register, but are not differentiated as Category I or Category II, though individual sites within historic areas may sometimes have individual registration categories.

The trust is responsible for aspects of the regulation of all archaeological sites whether they are registered or not, including the authorisation of modification, damage or destruction of sites by development processes or by scientific excavation. Other aspects of archaeological site protection are the responsibility of territorial authorities under the Resource Management Act.

In addition to exercising its regulatory powers the trust has recently placed greater emphasis on advocacy and co-operation with other agencies. Partnerships with key groups such as local authorities, owners, developers and iwi have been actively pursued. To help avoid litigation and to promote successful heritage outcomes, financial expertise as well as architectural and historical advice has been sought to assist in discussions with developers. The trust's unique position as a centre of heritage expertise is being used increasingly to promote its services throughout New Zealand.

The trust owns or manages 58 properties throughout the country including 32 Crown properties, mostly reserves, which have either been vested in it or which it has been appointed to control and manage. The properties which the trust manages range from Pompallier in the Bay of Islands, New Zealand's oldest surviving industrial building, to the Southland Provincial Council Building in Invercargill. A number of properties are open to the public, including Pompallier, which is a working museum complete with printery, tannery and bookbindery. The trust-owned Stone Store, Kerikeri, the oldest stone building in New Zealand, has been the subject of major conservation works during 1996-97 and is expected to open to the public again in 1998.

The trust undertakes a range of educational and advocacy activities to promote New Zealand's historic places and their conservation, including displays and interpretation at its heritage properties, the marking of other heritage sites, publications, workshops, functions and events. Trust members receive a newsletter, the Heritage Advocate, and the magazine New Zealand Historic Places.

The staff of the trust, including heritage property curators and those employed in regional offices in Auckland, Hamilton, Wellington, Christchurch and Dunedin, are supported by 32,000 members and 22 branch committees throughout New Zealand.

A report by the Parliamentary Commissioner for the Environment published in 1996 drew attention to deficiencies in the existing national systems of historic and cultural heritage management in New Zealand, especially as they related to Māori places of significance. The Minister of Conservation announced a comprehensive government review of land-based historic heritage management in November 1997 and a discussion document was released for public consultation early in 1998. The outcome of the review may affect the future role of the trust.

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, administered by the Department of Internal Affairs, includes provisions controlling the sale of Māori 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: Māori 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 an authority from the New Zealand Historic Places Trust before damaging, destroying, or modifying any archaeological site, or undertaking an archaeological investigation of any site.

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, Māori, film and archival interests. Income is derived from the Lottery Grants Board, New Zealand Film Commission, the Ministry of Cultural Affairs and NZ On Air, sponsorship and commercial activity.

The collection includes New Zealand and overseas films dating from 1895 to the present day and incorporates documentaries, feature films, shorts, animation, newsreels, television programmes, advertisements and home movies. A wide variety of promotional, critical and historical documentation is held. Film reference books, periodicals, stills, posters, publicity, designs, unpublished scripts, special collections, clippings, and production files are available for research. In July 1997 the archive was contracted by NZ on Air to be the official archive for New Zealand television production.

As part of the acquisition programme the archive operates a nationwide Last Film Search, sponsored by the Bank of New Zealand. Two regional searches each year collect film materials of national significance, the primary aim being to locate any surviving film shot on nitrate stock. Nitrate begins an irreversible process of decay from the time it is manufactured and has an unpredictable life span of 30 to 70 years. To date, eleven searches have been conducted and more than 8,000 films collected. The programme will operate until 2000.

Timeball Station, Lyttelton, a Category 1 historic place now owned and opened to the public by the Historic Places Trust.

Design student Bill Matheson works on his carving of Captain Hobson for the marae at Te Papa, September 1997

Te Hokinga Mai, has been designed to facilitate access by Māori communities to the Taonga Māori collection held at the Film Archive. With support from Te Papa's National Services Committee, iwi-specific film programmes have been presented on marae, at schools and district museums to audiences of more than 10,000.

The archive's public face is the Film Centre in Wellington which offers exhibitions, archival television programmes and cinema screenings. Entry is free. Curriculum-based screening programmes are also available for schools and educational institutions. The archive can draw on the collections of overseas colleagues in FIAF (Fédération Internationale des Archives du Film) for screenings of rarely-seen films.

1998 marks one hundred years of New Zealand film-making. In December 1898, A.H. Whitehouse filmed the opening of the Auckland Exhibition; unfortunately the film has not survived. The archive is preparing a series of special events to celebrate this centenary.

National Archives

National Archives: Te Whare Tohu Tuhituhinga o Aotearoa, is part of the Heritage Group of the Department of Internal Affairs. It is the country's largest repository of unpublished information on the history and development of New Zealand, holding about 66,500 linear metres of paper documents, 550,000 maps and plans, 1.25 million photographic images, large collections of films, videos, art works, posters, microfilms and objects. Archives are the raw material for the history of New Zealand.

The records held by National Archives are those created by central government. Archives represent the memory of government because they provide evidence of its functions, policies, transactions, decisions and areas of responsibility. The wide variety of archives document the social, political, economic, scientific, military, legal, technical and administrative development of the country. Users include government departments, Treaty of Waitangi researchers (public and private sectors), historians, genealogists and private individuals. Because of the high degree of government involvement 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.

The Chief Archivist has the sole statutory authority over the disposal (including destruction) of all government records. Only those records which are deemed to have permanent evidential or informational value are selected for preservation. They are transferred to National Archives where finding aids are prepared that enable researchers to access the information in the reference 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.

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. 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 charged basis assists enquirers. In the longer term, computerised access is envisaged for the finding aids to the holdings of National Archives, from any one of its offices or from other sites, including the Internet.

Records held by National Archives include those of government departments such as Education, Health, Justice, 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 those concerning 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 Māori Land Courts, Māori 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. Given New Zealand's historical role in the Pacific, National Archives increasingly caters for researchers from other countries with an interest in Pacific-related topics.

Also at National Archives' headquarters in Wellington is the Constitution Room which provides a 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 about interesting aspects of the past.

National Archives has more clearly defined its standard setting role with the establishment in 1996 of the Statutory Regulatory Group. This group provides advice on the management of records within government agencies. National Archives also 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.

Semi-current records from both public and private sectors are stored on a cost-recovery basis by records centres in Auckland and Wellington.

National Archives currently operates under the Archives Act 1957 but a bill is expected to result in a new act which will take into account recent legislation (such as the Official Information Act 1982, Privacy Act 1993) that impinges on the administration of the Archives Act. It also aims to cover technological advances since 1957 and the issues around the preservation of electronically-stored information.

12.3 Performing arts and film

New Zealand Symphony Orchestra

The New Zealand Symphony Orchestra (NZSO) celebrated its 50th anniversary in 1996. The occasion was noted with a national series of concerts featuring the high-profile British conductor Sir Neville Marriner and New Zealand pianist Michael Houston. Numbering 95 players and supported by an administration staff of 22 the NZSO is now an orchestra of international standing attracting prominent international artists and conductors. Based in Wellington, it performs regularly in centres throughout New Zealand, travelling over 50,000 km each year. This makes it one of the world's most travelled orchestras.

Since 1988 the orchestra has been a Crown-owned entity with a board of directors appointed by the government. A funding cut in 1991, increasing costs and a growing incidence of OOS among players led to a difficult situation. After the Scott Report in May 1996 there was an additional government grant as well as a change of board.

The orchestra performs over 100 concerts each year. As well as presenting subscription series of major symphonic repertoire in six centres, it performs light music, pops, special concerts for families and schools, opera and ballet. The NZSO's involvement in major outdoor concert “events” such as Opera at the Basin and the introduction of late-morning Tea and Symphony concerts have broadened its market appeal. Semi-staged performances of Wagner's Das Rheingold were a highlight of 1997.

The NZSO is also committed to commissioning, performing and recording works by New Zealand composers. In 1995 it established the NZSO New Zealand Music Panel whose aim is to encourage, commission and assess works by New Zealanders. It has also presented Enzso—the NZSO performing the music of New Zealand rock band Split Enz.

To date, the NZSO has made three overseas visits—to Australia in 1974, Hong Kong in 1980, and to Expo92 in Seville when it won international praise for its New Zealand Day concert with Dame Kiri Te Kanawa and then Chief Conductor Franz-Paul Decker. In May 1997, the orchestra travelled to Australia and performed three concerts as part of the Brisbane Biennial International Music Festival.

The Concertmaster of the NZSO is Wilma Smith, appointed in 1993, the fifth concertmaster in the orchestra's history and the first woman appointed to the position.

The annually awarded Lexus Bursary gives one permanent member of the NZSO the opportunity to study overseas for six months on full pay. The 1997 recipient, Second Violinist Jane Freed, is studying in London.

Each year since 1959 the National Youth Orchestra has brought together about 100 young instrumental musicians for an intensive week of rehearsal, culminating in a public concert performance, under a conductor of international standing. Aged from 13 to 23 years and selected by nationwide auditions, the young players receive coaching from NZSO principals and gain experience of professional symphony orchestra conditions. Many become NZSO and regional orchestra players. The Youth Orchestra is administered and funded by the NZSO.

Royal New Zealand Ballet

The Royal New Zealand Ballet is one of New Zealand's largest performing arts organisations. Governed by a seven-member Board of Trustees, the company comprises 32 permanent dancers and 28 staff in artistic support, production, marketing and management.

Established in 1953, it is the oldest professional dance company in Australasia and one of just five ballet companies upon whom the ‘Royal’ title has been bestowed by the British Monarchy.

With a strong classical base but a healthy attitude towards innovation, the company regularly performs New Zealand ballets and master-works from the late 20th century in addition to classics from the 19th and 20th centuries.

The Royal New Zealand Ballet tours New Zealand more extensively and more frequently than any other major performing arts organisation and has the largest audience of any resident arts company—about 140,000 annually. Just over half the company's funding comes from box office sales, with the rest from Creative New Zealand grants and sponsorship.

International tours have taken The Royal New Zealand Ballet to the USA, Europe, Asia and Australia.

The New Zealand School of Dance trains approximately 55 students each year, offering 2- and 3- year courses in dance performance and teaching dance. They come mostly from New Zealand but also from Australia and Japan. The school, founded in 1967, has a close relationship with the Royal

There is strong interest in ballet and dance in schools, laying the foundation for the high standard achieved by many national groups and the Royal New Zealand Ballet. This performance was at St Cuthbert's College, Auckland

New Zealand Ballet and some students dance in RNZB performances. Each year the third-year students go on tour, alternating between the North and South Islands. The New Zealand School of Dance is funded by a grant from the Ministry of Education ($672,000 in 1994 and 1995), tuition fees, and sponsorship.

Te Kura Toi Whakaari O Aotearoa: New Zealand Drama School was established in 1970 by the Queen Elizabeth II Arts Council. Since then over 200 actors have graduated from the school. Toi Whakaari has a three-year full-time degree course in acting and a two-year full-time National Diploma course in technical production. It shows its commitment to the Treaty of Waitangi through the development of a multicultural environment. Funding in 1995-96 from the Ministry of Education amounted to $616,000.

Founded in 1950, Chamber Music New Zealand is the major presenter of chamber music concerts. International and New Zealand artists perform in Celebrity Season concerts in nine centres, with further concerts being placed on a second network of 25 smaller cities and towns. There were 100 concerts in 1997.

With nearly 50 years' experience, Chamber Music New Zealand has strong ties with artists' managements and concert presenters world wide. This offers the opportunity to tour the best of both the established and the young emerging international ensembles.

Chamber Music New Zealand has a strong commitment to the development of New Zealand musicians and composers. The company established the New Zealand String Quartet in 1987. This professional full-time string quartet has developed an international reputation. The performance and commissioning of works by New Zealand composers is high on Chamber Music New Zealand's artistic goals.

For over 30 years Chamber Music New Zealand has organised the Westpac Trust Secondary School Chamber Music Contest in both instrumental performance and composition categories. Over the years many of these contestants have gone on to become New Zealand's finest musicians and enjoyed distinguished international careers. The 1997 contest attracted 445 group entries representing 1,800 young musicians from throughout the country.

The major source of Chamber Music New Zealand's funding is the sale of tickets to its concerts. The balance comes from Creative New Zealand and sponsorship.

The New Zealand Choral Federation: Te Kotahitanga Manu Reo o Aotearoa (NZCF), has 330 community, chamber, youth, cathedral, church, school and children's choirs among its members. The NZCF, whose Māori name means “the assembly of the chorus of birds of New Zealand,” aims to promote choral music in all its forms and to ensure that the experience of singing in a group is available to all New Zealanders. Its long-term goal is to develop a unique New Zealand ‘voice’, a distinctive choral sound which amalgamates the singing traditions of Māori, Polynesian and western music.

Formed in 1985, with 10 regional committees throughout the country, NZCF provides advisory and information services on all choral matters, and is the link to the International Federation for Choral Music. NZCF's income is derived from membership fees, event management, sponsorships and Creative New Zealand.

The NZCF organises the annual Secondary Schools Choral Festival, with eleven regional events culminating in a national finale. In 1997, 127 secondary schools and over 6,000 students took part; 20 school choirs attended the finale in Hastings. The New Zealand Festival of Youth Choirs was held for the first time, in Wellington, in 1995. The third Sing Aotearoa festival was held in Ohakune.

NZCF publishes Breve bi-monthly and has published books and videos on sight singing and choral direction.

Two award-winning groups, Te Waka Huia and the New Zealand National Youth Choir, brought together by the New Zealand Choral Federation—first to open the World Choirs Festival in Sydney in 1996, then for the 1997 Sing Aotearoa Festival in Ohakune, Queen's Birthday Weekend 1997 (above)

New Zealand Film Commission

The mission of the commission (Te Tumu Whakaata Taonga) is to sustain a vibrant, innovative and culturally-relevant film industry in New Zealand.

The functions, powers, and duties of the commission are defined in the New Zealand Film Commission Act 1978. The Film Commission receives funding through Vote Cultural Affairs and as a distribution agency for the Lottery Grants Board. Each year, the commission offers financial support to a considerable number of film projects, both for development and for production. In the 19 years since it was established more than 60 features and more than 140 shorts have been made with commission funding.

12.4 Books and libraries

New Zealanders' interest in 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

Book publishing in New Zealand is a dynamic and diverse industry, producing high-quality books for the local and international markets. These cover every genre, from educational titles to crime fiction to works of high cultural value.

Just as New Zealand approaches to education have high standing in the world, so too do New Zealand educational books. Early readers in particular, written and illustrated by local authors and artists and produced by local publishers, can now be found in infant rooms all over the world. Writers of high standing, such as Margaret Mahy and Joy Cowley, have been backed by publishers to create a substantial export industry. Educational publishing accounts for approximately 20 percent of all book sales by value. While the 1990s may be testing times for the book as a form of instruction, with much money being poured into new technologies, school book spending has remained relatively steady.

The mix of New Zealand publishers has always been one of local ventures and the local office of multinational importers and publishers, with books from small family firms rubbing shoulders on retail book shelves with the products of giant publishing conglomerates. The Commerce Commission has estimated that around $160 million worth of books were sold by retail booksellers in 1993. Of these, approximately 35 percent were published in New Zealand. With market dominance of overseas books to contend with, local publishers have had to produce their books at prices, and to standards, which are set internationally. The result has been that New Zealand publishers are able to turn out a fine book on a budget New York publishers would laugh at. Local books are produced in print runs which are but fractions of those of the overseas books they compete with in the stores.

According to library sources there are about 300 publishers of New Zealand books, of whom about 80 are specialist book publishers or importers. This specialist group is responsible for the production and distribution of over three-quarters of all new titles available and accounts for over 90 percent of New Zealand book sales. The other 200-odd publishers comprise mainly government departments, local bodies, historic societies, business organisations, special interest groups and individuals.

Most publishers belong to the industry body, the Book Publishers Association of New Zealand (BPANZ). This represents the wide-ranging interests of its members, such as export, copyright concerns, training, and professional standards. With the New Zealand Council for Educational Research, BPANZ carries out an annual survey of spending on educational books. The association inaugurated the GP Print Book Design Awards in 1997, established and ran the Wattie Book Awards (later Montana Book Awards) for twenty-five years, and (with the New Zealand Society of Authors) owns the reprographic rights organisation, Copyright Licensing Ltd. Book marketing in the form of trade promotions, such as the Listener Women's Book Festival, the Montana New Zealand Book Awards and the New Zealand Post Children's Book Festival, is undertaken by Booksellers New Zealand, to which most serious publishers also belong.

BPANZ exhibited New Zealand books at the Tokyo Book Fair in January 1997 and in June formed an export Joint Action Group with Trade NZ, which exhibited at the Australian and Frankfurt Book Fairs. The stand at Frankfurt (the world's biggest book fair) showed a wide range of books—fiction, educational, gardening, cooking and self-help—with strong interest in every category. While export development of educational books was a phenomenon of the 1980s, more general trade books are making their way in the world in the 1990s. The development of sales over the Internet is a new aspect of the book publishing industry.

Alan Duff, founder of the Books in Homes Programme, reads to pupils of Orakei School in Auckland

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 coordinated 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 1996 was 278 within 84 library systems.

In the year ended 30 June 1994, local authority libraries held a book stock of over 8.5 million volumes, and made over 40 million issues.

There are some 58 libraries in tertiary education institutions, including the seven university libraries, all 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 funding. Research collections have been developed, all have online integrated library systems and are linked through the national electronic network, Tuianet. Recent developments in information technology, including easy access to the Internet, have enabled much more intensive use of remote electronic databases and the sourcing of materials from external databases and collections. The holdings of all university libraries together were over 8.4 million items in 1995. Over 300 specialist libraries and information centres serve government departments, businesses and other organisations.

A co-operative inter-library lending system allows resource-sharing among its 250 member libraries. The Interloan scheme is administered jointly by the National Library and the New Zealand Library and Information Association.

Library education. The first professional education for librarianship was offered by the New Zealand Library School in 1946. Since 1980, library and information work has been taught at two schools. A two-year, part-time certificate programme at Wellington College of Education is designed for library assistants at work. It is offered by distance education and about one hundred students complete the course each year. From 1998 the New Zealand Library Studies Certificate will cease to exist and will be replaced by a new series of qualifications offered through the Open Polytechnic of New Zealand. Two diplomas at different levels will be available, leading to a Bachelor of Applied Science majoring in Library and Information Studies. The degree will have a vocational emphasis, as the certificate does at present, but offers more opportunities for on-going study than have been available until now at an undergraduate level.

The postgraduate diploma course moved to Victoria University of Wellington in 1980 where the School of Communications and Information Management (www.vuw.ac.nz/scim/) now offers a Master of Library and Information Studies. This is taught over 12 months' full-time study in Wellington, or two years' study by open learning. Open learning study is supported by coursebooks and weekly audio conference sessions. Sixty or more students take the internal course every year, and about 25 open learning students graduate each year. The wide-ranging curriculum includes use of information technologies such as locating and organising information resources on the Internet, and bicultural elements dealing with ownership of and access to intellectual property.

National Library of New Zealand. The mission of the National Library of New Zealand, Te Puna Matauranga o Aotearoa, is to contribute to the building of a learning society and an enterprise economy within New Zealand by supporting the creation of an environment where information is readily available and widely used.

The National Library is the principal adviser to the government on library and information issues. Recent work in this area includes research on access to government information through the Depository Library Scheme, and a paper on the provision of equity in public library services.

In 1966 the National Library was established by an act of Parliament, which also incorporated the Alexander Turnbull Library into the National Library. It was given the responsibility of collecting, preserving and making the country's documentary heritage available to all New Zealanders.

Altogether, in its various collections, the National Library holds about 1,800,000 books; about 1,600,000 photographs and negatives; 60,000 paintings, drawings and prints; enough newspapers to form a stack about 1km high; 6.5km of manuscripts; more than 4km of serials; 100,300 music scores; a collection of sound recordings (including 11,000 music compact discs and 5,000 oral history interviews); 685,000 children's books (which includes the schools' collection); and just under 120,000 ephemera items, ranging from propaganda material to theatre programmes.

The library is committed to making its information resources available to all New Zealanders. It provides access to its collections on site and by interlending to other libraries, and (for some collections) electronically, such as through Internet and on CD-ROM.

One of the historic David Low cartoons in the exhibition brought to New Zealand and toured here by the New Zealand Cartoon Archive. Published 9 September 1938 © London Evening Standard/Solo

The National Library Gallery, through a programme of exhibitions and public events, provides a unique form of access to and interpretation of the heritage collections held by the Alexander Turnbull Library. In addition to exhibitions held in Wellington, the gallery has a programme of touring exhibitions so that people throughout New Zealand can view the priceless treasures the library holds in trust for them.

The Alexander Turnbull Library is a national research collection, containing both published and unpublished material and 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 art and craft of book-making. It is based on the collections of Alexander Horsburgh Turnbull, a wealthy Wellington merchant who died in 1918 and bequeathed the nation some 55,000 volumes, as well as manuscripts, paintings and sketches which he had collected during his lifetime.

Access to both published and unpublished material held in the Alexander Turnbull Library continues to be improved so that researchers are able to use the New Zealand collections which are not generally available for lending.

Other initiatives have been developed to reflect the importance of recording aspects of life in New Zealand using varying media. These include: the Archive of New Zealand Music; the New Zealand Cartoon Archive, which is supported by the archive's trust; and the Oral History Centre, which carries out interviews to add to its collections and offers training workshops on how to record oral history.

Services available from the National Library are:

Research and reference services—the National Library provides a reference service to assist enquiries for information that cannot be satisfied by other New Zealand libraries or information sources. Access is provided to the full range of the library's published collections, and local and overseas online resources. The service also makes referrals to the unpublished heritage collections of the Alexander Turnbull Library. The Family History area is a popular self-help section where people trace their family tree using books and microfiche information from both New Zealand and overseas, particularly Europe.

Kiwinet—is the National Library's online information network. It hosts 35 databases which provide information on all aspects of New Zealand, including business, the social sciences, arts, commerce, the humanities and law. Over 1,000 clients from New Zealand and overseas access the service, often on a daily basis.

New Zealand Bibliographic Network (NZBN)—is an online computer system that 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 now more than 300 member libraries.

In 1997 NZBN reached 8 million records, another National Library database, Index New Zealand, reached 250,000 records.

The hosting of databases through the Kiwinet service was reviewed in line with the library's strategic directions and it was decided to cease hosting externally-sourced databases from the end of 1997.

A capacity for providing online access to information generated by the library is maintained. In 1997-98 there is continued work towards information technology solutions for the library, particularly in relation to the bibliographic utility offered through NZBN and related Year 2000 issues.

Services to libraries—A range of services is provided to New Zealand libraries to facilitate, enhance and support their work and collections. These services include the provision of resource-sharing tools and directories, bibliographic verification tools and services, and database services.

Services to schools—Through the School Libraries 2000 programme, the National Library offers a national service to strengthen schools' access to information that supports the New Zealand curriculum. The library acknowledges the growth in electronic access to information and networks both within schools and the library itself.

The integrated programme incorporates three projects to strengthen schools' access to information through:

  • the development of the school library or information centre to support learning programmes

  • the development of products, such as databases on CD-Rom, which enable schools to gain access to National Library services

  • a national collection of information resources for teachers as a backup for school resources to support learning programmes.

Services to Māori—Māori are acknowledged as a special group of users by the National Library because of the library's commitment to bicultural objectives, and to meet growing demand from Māori people for information held by the library. The Services to Māori unit focuses on ways the library can further develop relationships with the Māori community, including servicing Kura Kaupapa Māori schools through its School Libraries 2000 programme; the library also has Takawaenga-a-Rohe, Māori District Liaison Librarians, who act as a link between Māori and the library community.

Services to New Zealand publishers—Under the National Library Act 1965, amended 1994, publishers are required to deposit three copies (in some cases fewer) of every publication produced in New Zealand. The library has the responsibility of collecting these publications and making them available to present and future generations. They are listed on the library's New Zealand National Bibliography, which is often used by potential buyers to order new titles.

Winner of the 1997 Visa Gold Art Award.

It also issues publishers with international standard numbers which are designed to give publications a unique identification. The number allows a publication to be located and ordered with ease.

Access to the National Library via the Internet—Acknowledging the changes in the way people access information, the National Library has established a site on the World Wide Web [www.natlib.govt.nz] which carries detailed information about its resources and services. The site allows visitors to ask questions and give feedback—just as they could if they visited the library in person. The library also now offers online access to the pictorial collections.

Image services—With state-of-the-art imaging technology, the National Library's Image Services is widening access to the wealth of pictorial history held in the Alexander Turnbull Library. Copies of electronically-stored images from these collections can be printed in-house, and they can now be downloaded from the website [timeframes.natlib.govt.nz]. The library hopes to have 30,000 images available online by late 1999.

The Trustees of the National Library, a Crown entity, operate under the National Library Act to provide independent advice to the Minister for the National Library on the general progress and development of the library, and on the way in which the identity of the library's collections and the character of its services are maintained. The trustees also have a particular interest in the encouragement of planning and co-ordination of library development in New Zealand.

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.

Refurbishment and earthquake strengthening of the library building began in 1992. The library's stock was returned to the building at the beginning of 1996.

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 for the people of New Zealand, the library includes substantial holdings of books, newspapers and periodicals (181,000); sound recordings (10,600); microforms (20,150); maps (9,400); photographs (930,000); posters (16,700); paintings (12,500), including modern works of art; and manuscripts, particularly of early missionaries and literary figures. The library's archives and manuscripts total 6,090 linear metres, and are rich in Otago sources—business, local government, education, health, sport, community organisations, the churches and the University of Otago.

Following the establishment of a regional branch in Dunedin, many of the library's holdings of public archives have been transferred to the National Archives. Currently housed in two buildings, the library will shift in 1998 to occupy the refurbished former Otago Dairy Co-operative Co building.

Contributors

  • 12.1 Ministry of Cultural Affairs; Department of Internal Affairs; Creative New Zealand; Ministry of Commerce; Office of Film and Literature Classification.

  • 12.2 Museum of New Zealand Te Papa Tongarewa; New Zealand Historic Places Trust; New Zealand Film Archive; National Archives.

  • 12.3 New Zealand Symphony Orchestra; Royal New Zealand Ballet; New Zealand School of Dance; New Zealand Drama School; Chamber Music New Zealand; New Zealand Choral Federation; New Zealand Film Commission.

  • 12.4 Book Publishers Association of New Zealand; Victoria University of Wellington; Wellington College of Education; National Library of New Zealand; Parliamentary Library; Hocken Library.

Special articles

Asia 2000; Ministry of Cultural Affairs; Copyright Licensing Ltd; Office of Film and Literature Classification; Booksellers New Zealand; New Zealand Film Commission; Creative New Zealand; Alan Duff Charitable Foundation; National Library; New Zealand Cartoon Archive; New Zealand Library and Information Association.

Further information

Administration

Household spending on culture. Statistics New Zealand and Ministry of Cultural Affairs, 1996.

Local Authority spending on the arts 1992-93. Creative New Zealand, 1996.

New Zealand cultural statistics. Statistics New Zealand and Ministry of Cultural Affairs, 1995.

Report of the Arts Council of New Zealand Toi Aotearoa (Parl paper G.11).

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

Report of The Ministry of Cultural Affairs (Parl paper G.10).

Report of the New Zealand Historic Places Trust (Parl paper G.10).

Report of the New Zealand Lottery Grants Board (Parl paper G.7b).

The national collection

Annual Report of the New Zealand Film Archive

New Zealand museums 1990-96: facts and trends. Creative New Zealand, 1997.

Report of the Board of Trustees, National Art Gallery, Museum of New Zealand Te Papa Tongarewa (Parl paper G.12).

Report of the New Zealand Film Commission (Parl paper G.19).

Performing arts and film

New Zealand film 1912-1996. Helen Martin and Sam Edwards. OUP, 1997.

Books and libraries

Annual Report of the Hocken Library.

Report of the National Library of New Zealand (Parl paper G.13)

Report of the Trustees of the National Library of New Zealand (Parl paper G.52).

Chapter 13. Leisure and tourism

Albion win the National Netball League Coca Cola cup, 1997.

13.1 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.

Outdoor recreation is popular, favoured by a relatively pristine environment rich in scenic beauty. In 1997, the Hillary Commission launched KiwiWalks to encourage New Zealanders to make use of the rich natural surroundings. More than 400 KiwiWalks will be opened in the summer of 1998 throughout New Zealand, including waterfront walks, garden walks, heritage walks and city walks. They will be identifiable by wooden plaques featuring the KiwiWalk logo which will be situated at the start, end and throughout all KiwiWalk tracks.

Providing for sport and leisure

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 47 staff. Ex-All Black captain, Wilson Whineray is the commission's presiding member. It is funded by the New Zealand Lottery Grants Board and government.

In the year ended June 1997, the commission expended $35.2 million in the following key areas: $11.3 million in the area of high performance sport through the New Zealand Sports Foundation, the Olympic and Commonwealth Games Association and National Governing Sports Bodies; $10.4 million in the area of sport development through National Governing Sports Bodies; $9.1 million in the area of community fitness and leisure through sports clubs, local authorities and regional sports trusts; and $4.3 million in the area of junior sport through local schools and regional sports trusts. These figures include distributions to sport, fitness and leisure groups in New Zealand.

In 1996 the commission asked over 3,000 adults (18 years and over) in New Zealand about the sport and physical activities they had done in the last year. Nine out of 10 stated they had taken part in sport or physical activities. Gardening, walking, swimming, exercising and cycling are the main ways in which New Zealand adults are physically active. Taking those who only walk or garden out of the figures still leaves 8 out of 10 people who report participating in sport or physical activity. Three out of 10 people belonged to a sports club and one-third took part in competitive sport. A similar number received coaching or instruction.

In general, sport and physical activities were more popular with men than women and young people were more active than older adults.

The research highlighted the large amount of voluntary work that goes into sport and active leisure. One in 5 adults volunteer their services as coaches, officials and administrators (only 3 percent were paid). It is estimated that sport and active leisure benefits from over $500 million worth of volunteer effort each year.

High performance. A new partnership was forged with the New Zealand Sports Foundation in 1996, which promises to provide benefits to top athletes and the sporting public. The commission and the foundation have co-operated closely in many areas, and the much awaited “one stop shop” was finally operational in March this year when the two organisations issued a joint funding prospectus to national sports bodies.

Junior sport. Sport for young people is a major priority for the Hillary Commission. Research in 1996, in which 750 school students (13-17 years old) were asked about their participation in sport and physical activity, showed participation rates are exceptionally high. A huge 98 percent of young people reported taking part in sport with 72 percent choosing to do so in their own time and 47 percent belonging to a club. At school, rugby (28 percent) and cricket (27 percent) were the two main sports played by boys. Netball (36 percent) and soccer (14 percent) were the top sports for girls.

Sir Edmund and Lady Hillary take a stroll while in Wellington to launch Kiwi Walks, December 1997.

While boys play more sport than girls, the gap, particularly in school sport, is closing. Eighty percent of boys reported playing one or more sports (76 percent in 1991), while the figure for girls is 77 percent (65 percent in 1991). Asked why they enjoyed playing sport, the young people responded they liked improving their skills (86 percent) and facing a challenge (83 percent). The prospect of winning (46 percent) took second place.

The Hillary Commission believes in ‘Putting Young People First’ and has adopted a new national sport policy for young people. Called Moving Through Sport, it defines the sports and physical activities that young people have a right to.

Moving Through Sport will increase the opportunity for all young New Zealanders to develop and enrich their lives through sport. This policy is based on the belief that sport, when presented and organised properly, makes a significant contribution to the social and moral education of young people and is an effective way of producing benefits for both the individual and New Zealand society.

There is widespread, possibly universal, acceptance, by junior sport providers, of the principles and policies of Moving Through Sport. This suggests that the document fairly describes ‘best practice’ in junior sport. More work will be done in 1997-98 to determine how extensive the best practice is.

This will involve continued close liaison by the commission with national and regional sports organisations, sports trusts and local authorities. This has been identified in the Junior Sport business plans for 1997-98.

The commission has advocated benefits of junior sport to key agencies and liaised with the Ministry of Education in development of the new Health and Physical Education Curriculum.

Both the Kiwisport programme (a modified sports codes for primary school children initiated in 1988) and secondary schools Sportfit (established in 1991), continue to be important. Nine out of 10 children are reported as playing Kiwisport. In addition, a Fairplay campaign was introduced in 1996 with the support of Firestone Tyre Company. The campaign includes a television commercial to reinforce the ‘play hard but play fair’ message as well as pamphlets, stickers, clothing and spectator cards. These are distributed through regional sports trusts and Firestone outlets.

Green prescriptions. Approximately one-third of New Zealanders are not physically active in their leisure time. This is a public health issue that needs to be overcome, so the Hillary Commission developed Green Prescriptions in association with North Health. Green Prescriptions encourages general practitioners to prescribe exercise to those of their patients who would benefit from it. GPs are in a good position to promote the health benefits of physical activity—they have regular access to a large proportion of the sedentary population and are a respected source of advice. Launched in May 1997, Green Prescriptions is currently in operation in five independent practitioners' associations in the North Health catchment, Auckland and Northland. This project is being developed for national implementation in conjunction with health agencies. A toll-free information line 0800 ACTIVE, a service run by regional sports trusts, has been established to put patients in contact with local activity programmes.

Sport development. The sport development area provides coaches and training programmes for officials and volunteers at all levels who manage funding for national sporting organisations and regional sports trusts, and work on the success and efficiency of organisations.

Coaches. Coaching is a vital part of the development of any athlete, and the commission is committed to supporting and developing New Zealand's coaches at national, regional and local level. Most clubs find it hard to attract and keep coaches. This is a major issue for sport in New Zealand, and the Hillary Commission will continue to provide funds and information to make coaching count. To rectify the shortfall the commission developed the ‘Coaches Count’ promotion for 1997-98. Coaching New Zealand (CNZ) supports the delivery of regional and local coaching courses on contract. The campaign will focus on the need for more adults to coach junior sport, but will also reach potential coaches who are interested in becoming involved at other levels. Currently, 1 in 9 New Zealand adults are coaches and the coach-to-athlete ratio in team sports is 1 to 20. Sport experts say the average ideal ratio is 1 to 9.

Support for international events. In the past year the commission has contributed to some major events to be held in New Zealand, such as:

NetballWorld Championships 1999
Surf LifesavingWorld Championships 1998
Sports MedicineOceania Sports Medicine Conference 1997
AthleticsOceania Veterans 1998
BowlsWorld Blind Bowls 1997
ShootingBid for World Shooting Clay 2000
CyclingMountain Bike World Cup Round 2, 1997
GlidingWorld Masters' Gliding Championships 1998
TennisKB Federation Cup 1998
MotorcyclingWorld 125cc Motorcross Championships Round 1998
DivingWorld Diving Cup 1999
SoftballBid for International Mens' Championship Series 2000
BasketballOceania Qualifying Series 1997
OrienteeringWorld Masters' Championships 2000
TrampolineWorld Cup 1997

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 plan of practical action: encouraging the establishment, strengthening and support of National Youth Councils; supporting the development, refinement and implementation of National Youth Policies and structures; supporting the Commonwealth Youth Credit Initiative; and urging the promotion of the Commonwealth Youth Programme's Human Resource Development Strategy for Youth. 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 operates the Community Sport Fund which gives local authorities $1.35 per capita for the sports clubs and organisations in their area. Base funding of $25,000 is available for those authorities which would not reach that amount under the $1.35 per capita system. The commission also produces recreational management resource material and may fund the development of recreation plans. Local authorities may apply to the Community Facilities Fund administered by Internal Affairs Department for funding of major sports and recreation facilities. The Creative Community Scheme, administered by Creative New Zealand, funds local authorities at the rate of $0.60 per capita and has a base or minimum funding level of $5,000. The scheme funds programmes which primarily benefit the local community.

Latest Hillary Commission research estimates local government spends in excess of $300 million a year on sport and education.

The leisure industry

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.

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, rugby, netball, squash, softball, cricket, yachting and other disciplines.

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.

The Sydney Olympics in 2000 present wonderful opportunities for New Zealand sport, and it is essential that the sport, trade and tourism sectors work closely together to ensure the nation makes the most of these opportunities. In 1994 the New Zealand Lottery Grants Board decided to allocate an extra $3.6 million per year to prepare teams and athletes for the Olympic and Commonwealth Games leading up to 2000.

Recent research confirms the value of sport to the New Zealand economy:

  • Sport and leisure is a $5 million-a-day business.

  • New Zealand's sport and leisure industry supports 23,625 jobs.

  • Sport and leisure directly and indirectly contributes $1,764 million to New Zealand's gross domestic product.

  • Sport and leisure benefits from over $500 million of free volunteer effort every year.

  • New Zealanders spent $967 million on physical leisure goods in 1995-96. This represents 2.4 percent of household expenditure.

  • The economy also benefits from major sporting events. An estimated $300 million will be generated by The America's Cup and the Rugby World Cup.

Beatrice Faumuina puts everything into her world title-winning discus throw in Athens.

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 in 1996 represented over 100 national associations, claims a collective membership of over 1.5 million.

New Zealand Sports Foundation. The foundation aims to assist New Zealand's current and potential high performance sportspeople to succeed at international level. Conceived as a joint venture between the public and private sectors, the foundation received $7 million in Hillary Commission funding in the year to 30 June 1997.

The foundation currently operates on an annual grants budget approaching $15 million and works with the Hillary Commission, the New Zealand Olympic Committee, the corporate sector, national sports organisations, athletes and coaches.

The foundation has proved remarkably successful in identifying and supporting outstanding sports talent. One of the main ways it does this is through the sports academy programmes. Academies are integrated high-performance development programmes which incorporate the employment of national coaches, sports science and medicine, squad development and talent identification. The aim of the programmes is to enable talented youth to progress to international athletes at the highest level.

The foundation provides funding to 17 sports academies in the following disciplines: rugby, league, cricket, equestrian, netball, rowing, yachting, athletics, bowls, cycling, golf, hockey, shooting, squash, swimming, tennis and triathlon. Nine academies were set up using money from the Sport 2000 Fund in 1995 and these have a four-year funding commitment. Academies are run by the relevant national sporting body. The foundation provides funding, support programmes for academy employees and performance evaluation.

New Zealand Olympic Committee Inc. (NZOC) (formerly the New Zealand Olympic and Commonwealth Games Association Inc.). The NZOC 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 and Commonwealth Games. Forty-one sports federations are members of the NZOC.

Educational and promotional activities are a major part of the committee's function. A number of events, such as the Olympic Day Run, are organised every year to celebrate and encourage mass participation and promote values such as fair play and the pursuit of excellence. Educational material are prepared prior to each of the games and the committee runs a library and information service. Information is also available on the Internet through the committee's home page (http://www.olympic.org.nz).

Outdoor leisure activities

Community fitness and leisure. An estimated 900,000 New Zealanders do not lead an active lifestyle, but most would like to. Getting more people, more active, more often is the aim of the Community Fitness and Leisure team at the Hillary Commission. It has been proven that being active leads to improved quality of life and that better health can be achieved by just 30 minutes of activity “collected” throughout the day. Through its Community Fitness and Leisure programmes the commission endeavours to provide all New Zealanders with access to a wide range of sport facilities and activities so that getting active is easy.

Fishing. A wide variety of fish abound around the coasts, in bays and harbours. 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.

Nearly there! Disabled tennis player stretches out for the ball.

A young New Zealand cricket fan congratulates New Zealand captain Stephen Fleming on his century against England.

Two heroes from Wainuiomata, on Hutt City's walk of fame—rugby star Tana Umaga and athlete Alison Te Huia, who won seven medals in the 1997 World Dwarf Games.

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 to manage sportsfish and gamebirds and have taken over from acclimatisation societies.

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 for most species all year round. Deer of several species, chamois, thar, wild pigs, goats and wallaby are numerous in several areas. For tourists and inexperienced hunters, the services of an experienced guide are recommended. For further information contact the Department of Conservation.

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 snowmaking equipment to ensure reliable snow depth and quality. New Zealand has 12 commercial ski areas, 11 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 9 ski club fields in the South Island.

The Waiorau Snow Farm Area on the Pisa Range near Wanaka offers 24 kilometres of crosscountry 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.

The International Ski Federation (FIS) has sanctioned the holding of international ski competitions at Mount Hutt, Whakapapa, Coronet Peak, Cardrona, Turoa, and Mt Dobson. This includes Continental cups and FIS level races 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. The Great Walks are New Zealand's most famous tracks and are popular with both New Zealanders and visitors from overseas. They include: Lake Waikaremoana, Te Urewa National Park; Tongariro Northern Circuit, Tongariro National Park; Abel Tasman Coast Track, Abel Tasman National Park; Heaphy Track, North-west Nelson National Park; Routeburn Track, Mt Aspiring and Fiordland National Parks; Milford Track, Fiordland National Park; Kepler Track, Rakiura Track, Stewart Island. Most of these tracks take two to four days to complete and are well marked. Huts and campsites are provided for overnight accommodation.

Orewa lifeguard (and North Harbour rugby halfback) winning the flag race in a lifesaving carnival at Red Beach.

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 come the Routeburn, Kepler, 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.

Cycling. Cycling New Zealand holds the New Zealand affiliation to the UCI (International Cycling Union). The New Zealand organisations affiliated to Cycling New Zealand are: New Zealand Mountain Bike Association; BMX New Zealand; New Zealand Masters Cycling Association; and New Zealand Secondary Schools Association.

Cycling New Zealand has about 2,000 licensed participants belonging to 49 clubs throughout the country. There are around 150 major open events held during the year, apart from club racing which caters for racing at entry level. The New Zealand Mountain Bike Association has 500 licensed competitors.

Racing and gaming

Racing. There are 81 thoroughbred (93 in 1996), 54 harness (63 in 1996) and 13 greyhound (13 in 1996) racing clubs based throughout New Zealand. The number of meetings held by each club and the stakes they offer vary widely, particularly between the larger city clubs and smaller provincial clubs.

New Zealand also has a very strong horse breeding sector. Export of horses is worth around $100 million per year with Australia and Asian countries being the main markets.

New Zealand-bred horses compete very well overseas and regularly win top races, although in total, they constitute a small percentage of runners.

The Racing Industry Board is considering the introduction of significant changes to the industry to combat problems like declining attendances and increased competition in leisure activities.

Betting. On and off-course betting on racing in New Zealand is conducted through the Totalisator Agency Board (TAB). The board was set up in 1950 and was the first organisation in the world to facilitate off-course betting on a comprehensive national scale through a statutory body. Its legislative responsibilities and functions are now embodied in the Racing Act 1971.

The TAB has two fundamental objectives. They are to provide a safe and corruption-free mechanism for betting on horse, harness, greyhound racing and sport and to support the racing industry by returning the profit it makes to racing clubs.

Today there are 520 TAB outlets around the country. In the year ended 31 July 1997, total turnover increased 12 percent. TAB bets totalled: off-course racing $996 million; on-course racing $105 million; and sports $34 million.

Table 13.1. RACE MEETINGS1

 GallopingTrottingGreyhounds
19961997199619971996

1Years ended July.

Source: TAB

Race meetings 329331227225144
On-course turnover$(000)62,93159,00041,43737,2003,446
TAB turnover$(000)461,265472,000252,047248,00062,166
Total dividends$(000)421,978 236,255 52,818

Playing the pokies on Friday night.

A total of $55 million tax and duties was paid to the government, $31 million in levies to the Racing Industry Board and the profit of $38.4 million was paid to the Racing Industry Board for distribution to the racing industry. The balance, around 81 percent of the total turnover, went back to bettors.

Lotteries and gaming. Under the Gaming and Lotteries Act 1977 gambling may only be run to benefit charities and the community. Larger sites 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 (including housie and gaming machines); bookmaking and betting (other than betting on racing and sport and gaming machines—this is prohibited); 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.

Table 13.2. ALLOCATION OF LOTTERY PROFITS1

Recipient199519961997

1For year ended 30 June. Amounts do not include carry-forwards from previous financial year.

Source: New Zealand Lottery Grants Board

Distribution Committees$(million)
Lottery Aged3.83.43.7
Lottery Community Facilities12.511.312.1
Lottery Environment and Heritage9.09.610.7
Lottery General15.521.019.6
Lottery Health Research4.24.04.0
Lottery Science Research2.92.02.0
Lottery Welfare12.813.314.4
Lottery Welfare—Individuals with Disabilities3.23.23.2
Lottery Youth6.56.26.8
Minister of Internal Affairs0.71.00.3
Statutory Bodies
Creative New Zealand Toi Aotearoa18.119.020.2
Hillary Commission for Sport, Fitness and Leisure27.628.227.0
New Zealand Film Commission7.88.08.8
Other
Alcohol and Drug....1.2
Cultural Olympiad....0.5
Millennium Fund....2.0
Sports 2000....3.7
            Total118.5130.2140.2

The New Zealand Lotteries Commission has the task of promoting, organising and conducting all New Zealand lotteries defined by its act.. Currently these include the flagship lottery Lotto, the supplementary game Lotto Strike, Instant Kiwi, Daily Keno and TeleBingo. Net profits from these are paid to the New Zealand Lottery Grants Board for distribution to the community.

The commission's most popular game is Lotto, generating around 70 percent of sales. Lotteries Commission research shows some 60 percent of all adult New Zealanders play Lotto at least once a month. The demographic profile of customers (age, sex, socio-economic grouping, etc) is almost exactly identical to the demographic profile of the general adult population. Top prize in a standard week's Lotto draw is around $1.3 million but this is usually shared by three or four winners. Market research shows it is the attraction of the top prize which induces customers to play Lotto, and the relative availability of small prizes which makes playing regularly enjoyable.

Typically, out of every dollar of sales, some 55 cents is paid in prizes; 20 cents goes to the Lottery Grants Board; 11 cents is paid in taxes; 7 cents is paid in commission to Lotto shops; and 7 cents pays the expenses. By 1997, after 10 years of operation, the commission had paid $1,065 million to the Lottery Grants Board for distribution to community causes.

In the financial year ended 30 June 1997, sales were $633.3 million; prizes were $348.2 million; $134 million was paid to the New Zealand Lottery Grants Board; tax paid was $66.5 million; retail commission was $44.3 million; and expenses were $44.8 million.

The New Zealand Lottery Grants Board—Te Puna Tahua, is a completely separate and independent organisation, a Crown entity chaired by the Minister of Internal Affairs, which distributes lottery profits as grants to arts, sports, welfare, recreation, environment, heritage, research and community projects which do not receive funding directly from any other government source. The funds are distributed by the board via the Hillary Commission, the New Zealand Film Commission, and the board's own eight distribution committees (see Table 13.2). The overall aim is to support and encourage community initiative.

Casino Control Authority. Established under the Casino Control Act 1990, the main functions of the Casino Control Authority are to consider applications and grant casino licences, act as an appeal authority for licence holders, and advise the Minister of Internal Affairs on the Act and on casino policies generally. The authority also approves casino games, and the rules under which they will be played. Currently, licences have been issued to six companies and there are two casinos operating—Harrah's Sky City Casino in Auckland and the Christchurch Casino in Christchurch. Almost all the funding for the authority comes from levies imposed on casino premises licence holders. In the year to June 1997 this totalled $2,484,000.

An ancient penguin fossil is filmed for a Japanese TV natural history documentary series, likely to boost ecotourism for Otago.

13.2 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. However, recent growth in tourism and changing visitor demands have 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 walking, bungy jumping and a variety of outdoor adventure activities, as well as different cultural experiences.

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.

Tourism

Tourism is the sector of the economy that caters for the needs of visitors from other parts of New Zealand and from overseas. The word tourist usually refers to people who are away from home for one night or more. They may be travelling on holiday, for business or education, taking part in sporting or cultural events, or visiting friends or relatives.

Tourists require many different services and facilities including information, transport, accommodation, food and things to see and do.

Attractions. New Zealand's unspoiled natural environment and spectacular scenery appeal to domestic and international visitors. Many enjoy scenic destinations such as Milford Sound, the glaciers on the West Coast of the South Island, the caves at Waitomo and the geysers and hot springs of the geothermal areas in the central North Island. Other tourists, particularly those from crowded cities in the Northern Hemisphere, enjoy driving through rural landscapes and along the coast.

New Zealanders have a long tradition of outdoor activities like walking and fishing in natural areas. Many international visitors also enjoy these activities as well as opportunities to try out new adventure activities such as mountain biking, bungy-jumping, white-water rafting and jet boat travel.

An increasing number of visitors are also interested in finding out more about New Zealand culture and the lifestyle of New Zealanders. Many parts of the country now offer a diverse range of cultural attractions such as farm visits, marae visits, homestays, museums, art and craft galleries, wineries and historic buildings. Shopping is also an important part of the tourism sector, with many retailers benefiting from visitors' interest in antiques, designer clothing, crafts and souvenirs of New Zealand.

Events. Sporting and cultural events are playing an increasingly important role in attracting domestic and international visitors to different parts of New Zealand. The range of opportunities includes wine and food festivals, arts festivals, Maori cultural competitions, flower festivals, triathlons and rugby matches. The 1998 World Cup of Golf, the APEC Summit in 1999, the America's Cup, millennium celebrations and the Sydney Olympics in the year 2000 all offer New Zealand considerable opportunities to raise its profile as a tourism destination. The New Zealand Tourism Board (NZTB) works with the tourism industry to develop travel packages around events which can be marketed to potential travellers overseas.

Conferences and conventions also generate considerable business for many cities and towns. A survey conducted in 1996 identified 2,874 conferences lasting an average of 2.9 days and attracting 226,758 participants.

International Tourism

According to research carried out by the World Travel and Tourism Council (WTTC) tourism is the world's largest industry. In 1996 tourism employed 255 million people worldwide, or 1 in every 9 workers. In New Zealand tourism is the top foreign exchange earner. According to the New Zealand Tourism Board's International Visitors Survey (IVS) international tourism generated $4.8 billion in 1996, including revenue from international airfares.

New Zealand's current share of the international tourism market is just 0.2 percent. During the 1997 calendar year total visitor arrivals were 1.497 million, a 2 percent decrease over 1996. After enjoying a period of growth in both visitor numbers and revenue for many years, the tourism industry is now facing tougher times. Towards the end of 1997, a sudden deterioration in the economies of several Asian countries led to a significant drop in the number of tourists from those countries. However, tourism remains a labour-intensive industry that generates a wide range of jobs for New Zealanders. NZTB estimates that in 1996 the tourism industry was made up of around 16,500 businesses which directly employed around 90,000 people.

Table 13.3. NUMBER OF INTERNATIONAL VISITORS

Year ended 31 MarchHolidayStay with friends and relativesBusinessOther1Total

1Includes conference/convention, work and working holiday, formal education, stopover and unspecified.

Source: NZ Tourism Board

1984285,845116,79361,25054,553518,441
1985341,984127,58668,26959,156569,995
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
1994702,945272,507121,925115,9411,213,318
1995773,379282,565139,221147,8381,343,003
1996811,194319,350156,018155,2761,441,838
1997860,208354,226163,976172,9311,551,341

Tourist accommodation. A wide range of accommodation types is available. Low occupancy rates at certain times of the year are an issue for many accommodation providers because it affects plant utilisation and profitability. NZTB supports the work of Qualmark New Zealand Ltd, which has developed an independent rating system which, at the beginning of 1998, covered hotels, motels and holiday parks.

OVERSEAS VISITORS
Total numbers

MORE TRAVELLERS
Overseas visitors per 1,000 of the New Zealand population

Of all the person nights spent in New Zealand by international visitors in the year ending December 1996 an estimated 36 percent were spent in private homes, 13 percent in motels, 11.5 percent in backpacker accommodation, 7 percent in rented homes, 6.5 percent in campervans, tents and camping grounds, 6 percent in paid farm or home stays, 5 percent in mid range hotels or motor inns and 4 percent in top class hotels. The balance of around 10 percent of visitor nights was spent in other forms of accommodation including budget hotels, bed and breakfasts, luxury lodges and Department of Conservation huts.

Table 13.4. INTERNATIONAL VISITOR EXPENDITURE—YEAR ENDING JUNE 1997

 Total foreign exchange earnings (excluding airfares)Average expenditure per person per visitAverage expenditure per person per day
Source: NZTB International Visitors Survey
 (NZ$ million)(NZ$)(NZ$)
Australia6021,511125
USA4153,040218
Canada612,26598
UK3572,56985
Nordic countries522,43085
Germany1553,443112
Switzerland382,75177
Netherlands402,40286
Other Central Europe402,456109
Japan4703,006168
South Korea2281,920223
Taiwan1533,363157
Hong Kong782,469227
Other North Asia232,12276
Singapore542,676138
Malaysia562,592138
Thailand582,531227
Other South East Asia342,371110
Other countries3182,47786
            Total3,2322,334127

Transport. In the year ending December 1996 an estimated 17 percent of all international visitors used a private car during their visit to New Zealand, 16 percent used a rental vehicle, took an organised coach tour or took a domestic flight and 4 percent used the Cook Strait Ferry. Holiday visitors most commonly take organised coach tours (21 percent) or use rental vehicles or domestic flights (17 percent each). Those visiting friends and relatives make much greater use of private cars (53 percent). Business travellers use taxis (23 percent), domestic flights (20 percent) and private cars and rental vehicles (17 percent each).

There is a trend for international visitors to choose forms of transport which offer greater flexibility, such as rental cars and campervans.

Managing the effects of tourism

The increasing importance of tourism has led to a strong interest in the concept of sustainable tourism both internationally and within New Zealand. In order to be sustainable, tourism must provide satisfying and distinctive experiences for visitors and reasonable returns on investment for investors. It must also protect and develop the environmental, cultural and social values on which tourism depends. Finally, it must be acceptable to host communities and provide them with real economic and social benefits.

Local government plays several vital roles in developing sustainable tourism. It is responsible for enforcing laws and rules associated with managing the effects of tourism. It contributes to the marketing of the region as a tourist destination. It must also plan for, and in some cases fund, much of the infrastructure on which tourism depends, ensuring that the water supply and sewerage systems, roads and car parks can cope with the additional demand. Local residents sometimes object to meeting these costs. However, a Tourism Board nation-wide survey in December 1997 of residents' attitudes towards tourism showed that 94 percent of those surveyed saw tourism as important or very important to the economy. Over half also believed tourism will improve the New Zealand lifestyle.

Many of the natural areas enjoyed by visitors are managed by the Department of Conservation (DoC). Private sector firms provide a variety of facilities or services for visitors to complement those provided by the department, including skifields, scenic flights and guiding services. These firms must comply with strict statutory procedures, strategies and plans introduced to protect the natural and historical features of conservation areas and the recreational experiences of other visitors. Firms also pay concession fees which help DoC protect conservation values.

Many tourism businesses are becoming more aware of the advantages of maintaining high environmental standards in the way that they conduct their business. This can include saving energy, controlling noise pollution and emissions, reducing demands for water and better management of rubbish. Some tourism operators also increase their clients' understanding of conservation and the environment. The New Zealand Tourism Board includes environmental responsibility in its criteria for judging the New Zealand Tourism Awards, and makes a special award for the best environmental performance. Some industry groups are also introducing voluntary codes to encourage their members to adopt the best environmental practices.

Table 13.5. NUMBERS OF INTERNATIONAL VISITORS

Year ended 31 MarchHolidayStay with friends and relativesBusinessOther1Total

1Includes conference/convention work or working holiday, formal education, stopover, and unspecified.

Source: Statistics New Zealand

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
1994702,945272,507121,925115,9411,213,318
1995773,379282,565139,221147,8381,343,003
1996811,194319,350156,018155,2761,441,838
1997860,208354,226163,976172,9311,551,341

International visitors

More than 1.5 million overseas visitors arrived in New Zealand in the year to February 1997—up 8 percent on the previous year. The number of countries from which overseas visitors originate has been growing increasingly diverse.

Table 13.6. OVERSEAS VISITOR ARRIVALS1 BY COUNTRY OF LAST PERMANENT RESIDENCE

Country of last permanent residenceYear ended 31 December
199519961997

1Intended length of stay in New Zealand is less than 12 months.

2Country groupings have been adjusted slightly to ensure consistency with the NZ Standard Classification of Countries (NZSCC). As a result, totals for 1995 have been revised.

3Includes unspecified.

Source: Statistics New Zealand

Oceania and Antarctica469,748507,631503,622
Australia402,657435,862433,010
Cook Islands4,5684,9555,509
Fiji11,10413,08011,967
French Polynesia6,6996,5636,113
New Caledonia5,6985,6144,847
Tonga6,9918,2629,394
Western Samoa12,52911,87911,682
Asia2449,864493,118456,866
China8,91813,64617,551
Hong Kong31,44733,30830,392
India3,2024,2694,764
Indonesia12,93412,82012,027
Japan151,543165,014161,046
Korea Republic of104,389127,356108,266
Malaysia15,23117,57318,139
Philippines4,3064,6634,944
Singapore21,33224,18527,527
Taiwan64,97155,09045,857
Thailand27,76431,16722,035
Europe2255,363266,736276,796
Austria4,9724,6084,459
Denmark7,0217,2727,223
France6,2906,2736,543
Germany54,93749,92146,698
Ireland3,1533,9564,515
Italy5,4405,0285,315
Netherlands13,34214,94616,226
Sweden6,9148,1077,969
Switzerland14,12113,48212,239
United Kingdom122,399136,485148,182
Northern America2181,591176,651173,526
Canada29,07728,93729,682
United States of America152,203147,389143,574
Others2352,22984,58486,373
South Africa8,54511,44213,705
            Total1,408,7951,528,7201,497,183

Tourism organisations

New Zealand Tourism Board. NZTB is responsible for the co-ordinated marketing and promotion of New Zealand overseas as a tourism destination. Its objective is to ensure that New Zealand is developed and marketed as a tourism destination to maximise the long term benefits to New Zealand. The Tourism Board works with the tourism industry to develop quality systems, new tourism products and in international marketing. NZTB maintains 14 overseas offices located in Sydney, Melbourne, Brisbane, London, Los Angeles, New York, Tokyo, Osaka, Frankfurt, Singapore, Bangkok, Hong Kong, Taipei and Seoul. Industry liaison staff are also located in Auckland, Rotorua, Wellington, Christchurch and Queenstown.

Office of Tourism and Sport. A new top-level policy unit situated within the Department of Internal Affairs was established from April 1998. It replaces the Tourism Policy Group in the Ministry of Commerce and the sports policy function in the Department of Internal Affairs.

The new office will be responsible for developing policy advice on tourism, sport, fitness and leisure issues and for maximising the interface between tourism and sport. It will also monitor the outcomes of the work of the New Zealand Tourism Board and the Hillary Commission.

Snowboarding above Mount Cheeseman ski-field in the Craigieburn range.

The new policy unit recognises that New Zealand tourism marketing focus has moved towards more major events-related tourism activities. The Office of Tourism and Sport will take over the policy advice and some project management functions of the NZTB.

Other agencies with tourism functions

Many other government agencies are involved in the tourism sector. For example, New Zealand Customs and MAF's Quarantine Service screen all visitors entering New Zealand to ensure that no prohibited or restricted materials are brought into the country. Statistics New Zealand is a key provider of data needed for the management of tourism. The New Zealand Police investigate crimes committed by or against visitors. The Foundation for Research, Science and Technology allocates funds from the Public Good Science Fund for tourism research.

New Zealand Tourism Industry Association. Established in 1953 as the New Zealand Travel and 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 service 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

  • 13.1 Hillary Commission for Sport, Fitness and Leisure; New Zealand Arts Assembly; Commonwealth Youth Programme; New Zealand Assembly for Sport; New Zealand Sports Foundation; New Zealand Olympic Committee; Department of Conservation; Office of the Minister for Racing; TAB; Department of Internal Affairs; Lotteries Grants Board.

  • 13.2 New Zealand Tourism Board; Ministry of Commerce, Tourism Policy Group; New Zealand Tourism Industry Association.

Special articles

Department of Internal Affairs; Aotearoa Māori Tourism Federation; ACC; TAB; New Zealand Sports Drug Agency; New Zealand Lotteries Commission; New Zealand Lottery Grants Board.

Further information

Recreation and sport

Annual Report of the New Zealand Olympic and Commonwealth Games Association.

Annual Report of the New Zealand Sports Drug Agency.

Business of Sport and Leisure, The. Hillary Commission for Sport, Fitness and Leisure, 1993.

Life in New Zealand. Hillary Commission for Sport, Fitness and Leisure 1990.

New Zealand Lotteries Commission Annual Report

New Zealanders' Participation in Outdoor Activities. Hillary Commission for Sport, Fitness and Leisure, 1993.

Profile of New Zealanders wanting to be more physically active. Hillary Commission for Sport, Fitness and Leisure, 1993.

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

Report of the Hillary Commission for Sport, Fitness and Leisure (Parl paper E.32).

Report of the New Zealand Lottery Grants Board (Parl paper G.7b).

Report of the Queen Elizabeth the Second National Trust (Parl paper C.2).

TAB Annual Report.

Gaming

Gaming—A New Direction for New Zealand. Department of Internal Affairs Policy Proposals, 1996.

Review of Gaming—A Discussion Document, 1995.

The Economic Impact of Gaming in New Zealand. A Report prepared for the 1995 Review of Gaming.

The Impact of Technology on New and Existing Forms of Gaming in New Zealand. A Report prepared for the 1995 Review of Gaming.

The Social Impact of Gaming in New Zealand. A Report prepared for the 1995 Review of Gaming.

Surveying the Kilikiti (Samoan cricket) field for possible openings.

Tourism

Department of Conservation Visitor Strategy August 1996

Long term tourism roading requirements. Task Force Report, Ministry of Commerce and Transit New Zealand, December 1994.

New Zealand International Visitors Survey (IVS). New Zealand Tourism Board (annual and monthly visitor arrival updates).

Quality Toilets. Working Group Report, Ministry of Commerce, December 1994.

Report of the New Zealand Tourism Board (Parl paper G.25).

Report of the Ministry of Commerce (Parl paper G.46).

Tourism in New Zealand: Facts and forecasts. New Zealand Tourism Board and New Zealand Tourism Industry Association, June 1994.

Tourism Research Bibliography; 1994 to 1996. Ministry of Commerce, December 1996.

Tourism Research in New Zealand. Report of the Tourism Research Working Group, Ministry of Commerce, February 1995.

Tourism sector review: New Zealand tourism at a glance. Ernst & Young.

For children, leisure and play have always been combined, and dressing up—even using newspapers—adds to the enjoyment.

Chapter 14. Employment

Workers taking part in the Employment Initiatives and Support programme, which aims to help the unemployed into work, clean up a depot in Waitara for the New Plymouth District Council.

14.1 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 five ways:

  • Through the Household Labour Force Survey (which produces quarterly estimates of labour market indicators, based on a sample of around 16,000 households);

  • Through the five-yearly Census of Population and Dwellings;

  • Through the Quarterly Employment Survey (which counts the number of jobs in various industries);

  • Through the Labour Cost Survey (which surveys labour-related costs for a fixed set of job descriptions); and

  • Through a record of work stoppages provided by the Department of Labour.

Another source is the Department of Labour, which produces statistics on the number of people registered as seeking work with the New Zealand Employment Service (NZES), the number of jobseekers on NZES employment programmes, and the number, coverage and content of collective employment contracts covering 20 or more employees as lodged with the Industrial Relations 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 1991 and 1996 Censuses 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. In addition, the Household Labour Force Survey counts those who have a job to start within four weeks (regardless of whether or not they were actively looking for work) as unemployed.

Table 14.1. THE LABOUR FORCE1

Quarter endedLabour force
EmployedUnemployedTotalNot in labour forceWorking-age population1Labour force participation rateUnemployment rate

1The civilian, non-institutionalised usually resident New Zealand population aged 15 and over.

Source: Household Labour Force Survey

 (000)percent
Male
1994 Dec889.374.6963.9333.01,297.074.37.7
1995 Mar901.567.3968.8334.21,302.974.46.9
            Jun906.857.8964.6343.21,307.873.86.0
            Sep910.757.9968.6344.01,312.673.86.0
            Dec931.560.3991.7327.31,319.175.26.1
1996 Mar932.163.3995.4330.21,325.675.16.4
            Jun931.856.1987.9342.71,330.674.25.7
            Sep933.360.3993.6340.81,334.474.56.1
            Dec944.562.71,007.2332.71,339.975.26.2
1997 Mar940.065.01,004.9340.51,345.474.76.5
            Jun937.165.81,002.9346.01,348.974.46.6
            Sep933.565.6999.1352.31,351.473.96.6
            Dec946.669.51,016.1340.91,357.074.96.8
Female
1994 Dec711.153.1764.2599.61,363.756.06.9
1995 Mar706.752.6759.3610.71,370.055.46.9
            Jun714.748.6763.3611.21,374.555.56.4
            Sep723.844.0767.8611.31,379.055.75.7
            Dec734.649.6784.1601.51,385.656.66.3
1996 Mar738.452.8791.2600.71,391.956.86.7
            Jun751.749.8801.5595.31,396.857.46.2
            Sep761.749.2810.9589.61,400.557.96.1
            Dec756.645.3801.9604.21,406.157.05.6
1997 Mar748.459.2807.6603.81,411.457.27.3
            Jun753.252.9806.0608.81,414.957.06.6
            Sep753.653.7807.3610.51,417.956.96.6
            Dec760.851.9812.7611.11,423.757.16.4
Total
1994 Dec1,600.4127.71,728.1932.62,660.764.97.4
1995 Mar1,608.1119.91,728.0944.82,672.964.76.9
            Jun1,621.5106.41,728.0954.42,682.364.46.2
            Sep1,634.5101.91,736.4955.22,691.664.55.9
            Dec1,666.0109.81,775.9928.82,704.765.76.2
1996 Mar1,670.5116.11,786.6930.92,717.565.76.5
            Jun1,683.5105.91,789.5938.02,727.465.65.9
            Sep1,695.0109.51,804.5930.42,734.966.06.1
            Dec1,701.1108.01,809.1936.92,746.065.96.0
1997 Mar1,688.3124.21,812.5944.32,756.865.76.9
            Jun1,690.2118.71,808.9954.82,763.765.56.6
            Sep1,687.1119.31,806.4962.82,769.365.26.6
            Dec1,707.4121.41,828.8952.02,780.865.86.6

Table 14.1 shows that the number of people in employment grew by 107,000 between the December 1994 and December 1997 quarters, while over the same period the number of unemployed fell by 6,300. The net effect of these two movements is that the labour force grew by 100,700 (5.8 percent) over this three year period. This compared with an increase in the working-age population of 120,100 (4.5 percent), resulting in an increase in the labour force participation rate by 0.9 percent.

Labour force growth and changes in the labour force participation rates varied for males and females. Between the December 1994 and December 1997 quarters, the male labour force grew by 5.4 percent while the female labour force grew by 6.3 percent. The labour force participation rate for females also increased at a faster rate. Unemployment rates in the December 1997 quarter were down for both males and females, when compared with the December 1994 quarter, with the rate for males showing the biggest fall.

LABOUR FORCE PARTICIPATION RATE, 1997
Age specific

Women in the labour force

In the year ended December 1997, women made up 44.6 percent of the labour force. This compares with 43.7 percent five years ago and 42.2 percent a decade ago. In spite of the generally increasing labour force participation of women, there is still a clear difference in age specific labour force participation rates as the 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). For the year ended December 1997, the overall labour force participation rate for males was 74.5 percent compared with 57.1 percent for females.

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 council's function is to advise the Minister of Employment on all matters relating to the employment of women, and to promote the dissemination of information on the employment of women in New Zealand and overseas.

Repairing broken china, marble, wood and other damaged household goods, a Panmure company does a lot of work for insurance firms.

The National Advisory Council on the Employment of Women has seventeen members. Eight of these, including the chairperson, are appointed by the Minister of Employment for their knowledge and experience in women's employment issues. These appointments are for a period of three years. The remaining nine NACEW members are representatives from government departments (Ministries of Education and Women's Affairs, the Department of Labour and Te Puni Kokiri) and the central employer and union organisations (two representatives from the Council of Trade Unions, and one each from the NZ Employers' Federation and State Services Commission).

During 1997 NACEW continued to work on the survey on childcare. This aims to gather information on childcare arrangements, and the relationship between childcare and employment. It will be attached to the Household Labour Force Survey in the September quarter of 1998. NACEW also worked with the Ministry of Women's Affairs on developing a research proposal on performance-related remuneration. The research is scheduled to be conducted during the first half of 1998. In 1997 NACEW also undertook a gender analysis of the results of the Industrial Relations Service Survey on Labour Market Adjustment under the Employment Contracts Act.

Full-time and part-time work

Full-time work is defined as usually working 30 hours or more per week, and part-time as usually working 1-29 hours per week. For the year ended December 1997, an average of 1,308,700 New Zealanders were employed in full-time work and 384,500 in part-time work. Compared with five years ago, full-time employment has grown by 13.8 percent and part-time employment by 21.4 percent. However, over the last decade full-time employment has grown by 2.0 percent, while part-time employment grew by a massive 40.4 percent. Following the share market crash in 1987 and during the recession of the early 1990s, the number of people in full-time employment declined on an annual basis before rising again in 1993. Over these years part-time employment has generally shown consistent annual growth.

Table 14.2 shows the average number of males and females employed and unemployed on a full and part-time basis in the years ended December 1992 and 1997. Around three times as many women as men are employed on a part-time basis, although the number of part-time workers of both sexes has increased in recent years. Males working part-time increased by 20.8 percent between 1992 and 1997, while the number of females working part-time increased by 21.6 percent over the same period.

Table 14.2. LABOUR FORCE BY FULL-TIME AND PART-TIME STATUS, 1992 AND 19971

 MaleFemaleTotal
199219971992199719921997

1Annual averages for the years ended December 1992 and December 1997.

2For unemployed persons, full-time means seeking 30 or more hours of work per week. Part-time means seeking fewer than 30 hours per week.

Source: Household Labour Force Survey

 (000)(000)(000)
Full-time
            Employed736.1837.0413.6471.81,149.81,308.7
            Unemployed292.455.844.730.5137.186.3
            Total828.5892.8458.4502.31,286.81,395.1
Part-time
            Employed84.7102.3232.1282.2316.8384.5
            Unemployed28.410.623.423.931.834.6
            Total93.1113.0255.6306.1348.6419.1
            Total full and part-time labour force921.61,005.8713.9808.41,635.51,814.2
Percent in labour force full-time89.988.864.262.178.776.9
            Total working-age population1,259.71,350.71,323.01,417.02,582.72,767.7
Unemployment rate full-time (percent)11.16.39.86.110.76.2
Unemployment rate part-time (percent)9.09.49.27.89.18.2

Hours of work. Data regarding the number of hours worked in a week is presently collected by Statistics New Zealand from two sources:

  • The Household Labour Force Survey, which asks respondents for the number of hours they actually worked in the survey reference week and for the hours they usually work each week. Where the actual and usual hours differ, the main reason for the difference is also collected.

  • The Quarterly Employment Survey (QES) which asks enterprises for the details of the number of paid ordinary and overtime hours worked in the surveyed payweek.

Given the shift from full- to part-time work highlighted in the previous section, a decrease might have been expected in the length of the average work week, but table 14.3 shows that this is not the case. Average total weekly hours, as measured by the Quarterly Employment Survey, have remained in the range of 38.7-39.4 paid hours since 1987, and have even been increasing during the last four years.

However, a shift in the composition of these hours has occurred in recent years. The average number of ordinary time hours worked has increased from 36.76 hours per week in 1991 to 37.70 hours per week in 1997. Conversely, the number of overtime hours worked in the average week has decreased by 0.46 of an hour (about 28 minutes) over the same period, although there was a slight pick-up in overtime hours in 1995. This may be the result of recent changes in the terms of employment contracts extending the number of hours defined as ‘ordinary time’.

Table 14.3. AVERAGE WEEKLY HOURS PAID FOR, 1987-1996

Year as at FebruaryTotal hours paid for Males Ordinary time
MalesFemalesTotal
Ordinary timeOver timeTotalOrdinary timeOver timeTotalOrdinary timeOver timeTotal
Source: Household Labour Force Survey
198737.303.1040.3035.901.4037.1036.702.5039.00
198837.203.0040.0035.801.3036.9036.602.3038.70
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
199438.422.4840.7336.450.9737.2037.531.8739.13
199538.642.6241.0836.691.0037.4637.761.9739.45
199638.742.4841.0436.730.8937.4137.821.8439.39
199738.602.3040.7236.640.8337.2837.701.7039.15

Table 14.4. EMPLOYED PERSONS BY ACTUAL HOURS WORKED1

Actual hours worked per weekMalesFemalesTotal
19921997Change19921997Change19921997Change

1Annual average for the year ended December ...Denotes estimates fewer than 1,000 and subject to sampling errors too great for most practical purposes. Some discrepancies may exist between totals and the sum of their component items due to rounding.

Source: Household Labour Force Survey

 (000)percent(000)percent(000)percent
0 hours54.859.28.052.462.218.7107.1121.313.3
1-928.933.716.665.574.714.094.4108.414.8
10-1931.241.232.175.895.526.0107.0136.727.8
20-2938.046.422.180.4100.825.4118.4147.324.4
30-3452.454.84.661.271.817.3113.6126.611.4
35-3945.246.32.463.061.4-2.5108.2107.7-0.5
40239.2240.10.4145.6152.34.6384.8392.42.0
41-4440.645.211.322.625.814.263.171.012.5
45-4985.2111.030.330.341.737.6115.5152.732.2
50 and over203.1261.428.747.767.842.1250.8329.231.3
Not specified2.3.....1.4....3.7....
        Total820.8939.314.4645.8754.016.81,466.61,693.315.5

Table 14.4 shows how actual hours worked per week have changed between 1992 and 1997. The 40-hour week was still worked by the largest number of people. However, the number of people working these hours showed a relatively small increase (2.0 percent) over the five years, when compared with increases in the number of people working other hours. The biggest percentage increase was in the number of people working 45-49 hours per week, followed by those working 50 hours or more per week. More people are now working longer hours than they did five years ago.

Between 1992 and 1997, the largest increases for males were in the 10-19 hours band (up 32.1 percent) and the 45-49 hours band (up 30.3 percent). For females, the largest increase was in the 50 hours or more band (up 42.1 percent) followed by the 45-49 hours band (up 37.6 percent).

Status in employment

Table 14.5 shows that wage or salary earners accounted for the majority of the employed, as would be expected. In the year ended December 1997, an average of 79.9 percent of employed people were wage or salary earners. Those people who were self-employed and not employing others made up the next largest category, accounting for 11.9 percent of the employed.

Table 14.5. STATUS IN EMPLOYMENT OF EMPLOYED PERSONS, 1991 AND 19961

StatusMalesFemalesTotal
19921997Change19921997Change19921997Change

1Annual averages for the years ended December. Denotes estimates fewer than 1,000 and subject to sampling errors too great for most practical purposes. Some discrepancies may exist between totals and the sum of their component items due to rounding

Source: Household Labour Force Survey

 (000)percent(000)percent(000)percent
Wage or salary earners601.3705.517.3547.2647.718.41,148.5 1,353.217.8
Employer87.190.13.434.033.4-1.8121.2123.51.9
Self-employed123.1138.412.450.862.723.4173.9201.115.6
Unpaid in family business5.65.4-3.611.810.1-14.417.515.5-11.4
Not specified3.6......1.9......5.5......
        Total820.8939.414.4645.8754.016.81,466.61693.415.5

For central city office workers, the opportunity to sit in a public park in the lunch hour gives a welcome break. Midland Park, Wellington.

FULL-TIME MALE EMPLOYMENT BY INDUSTRY

Males dominate the employer and self-employed categories, comprising 73.0 percent and 68.8 percent respectively for the year ended December 1997. The unpaid in family business category was dominated by females, who made up 65.2 percent of this group.

The restructuring of the New Zealand economy during the mid-late 1980s, coupled with the economic recession of the early 1990s, have seen shifts in employment status. The total number of employed people increased by 226,800 (15.5 percent) between the years ended December 1992 and 1997. Wage or salary earners increased by 204,700 (17.8 percent), self-employment by 27,200 (15.6 percent) and those employing others by 2,300 (1.9 percent). The number of people working unpaid in a family business fell by 2,000 (11.4 percent) over the five years.

Industry structure of the labour force

Over the last decade the structure of the New Zealand economy has changed. More people are now employed in the services sector (wholesale and retail trade, restaurants and hotels; business and financial services; and community, social and personal services). Employment in the primary sector of agriculture, hunting, forestry and fishing is down 8.8 percent on the level it was a decade ago. The construction sector, after experiencing substantial staff layoffs during the recession years of the early 1990s, is now up 10.5 percent on the employment level a decade ago. Manufacturing too was hit hard during the recession of the early 1990s, employment having dropped 20.4 percent between 1987 and 1992. However, over the last five years employment in the manufacturing sector has risen by 14.9 percent, but is still below the level it was at a decade ago.

Table 14.6 shows the average distribution of employed people by industry in the year ended December 1997. The industries shown are grouped by major divisions of the New Zealand Standard Industrial Classification (NZSIC). The largest number of employed people work in the community, social and personal services division (27.2 percent); followed by the wholesale and retail trade, restaurants and hotels division (21.6 percent); and manufacturing (16.3 percent). Divisions employing the least number of people are mining and quarrying followed by electricity, gas and water, each employing less than 1 percent of the total employed.

FULL-TIME FEMALE EMPLOYMENT BY INDUSTRY

Passing on traditional skills at a multicultural workshop in Dunedin, 1996.

Table 14.6. EMPLOYED PERSONS BY INDUSTRY, 19971

Major divisionMaleFemaleTotalPercentage distribution
MaleFemaleTotal

1Annual average for the year ended December 1997....Denotes estimates fewer than 1,000 and subject to sampling errors too great for most practical purposes. Some discrepancies may exist between totals and the sum of their component items due to rounding.

Source: Household Labour Force Survey

 (000) 
Agriculture, hunting, forestry and fishing104.542.3146.811.15.68.7
Mining and quarrying4.3..4.90.5..0.3
Manufacturing193.0831276.120.511.016.3
Electricity, gas and water8.51.810.30.90.20.6
Construction99.912.5112.510.61.76.6
Wholesale and retail trade, restaurants and hotels181.2184.9366.119.324.521.6
Transport, storage and communication70.330.7101.17.54.16.0
Business and financial services107.5103.7211.211.413.812.5
Community, social and personal services167.5292.4459.917.838.827.2
Not adequately defined2.71.84.60.30.20.3
        Total939.3754.01,693.3100.0100.0100.0

Female employment is concentrated in the three major divisions that make up the services sector (77.1 percent), compared with just under a half for all employed males (48.6 percent). Male employment is highest in the manufacturing division, followed by those in the services sector. Combined they account for 69.1 percent of male employment.

Occupation 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 New Zealand Standard Classification of Occupations (NZSCO).

Table 14.7 shows that New Zealanders are relatively evenly spread amongst the differing occupations. The largest occupation groups are service and sales workers, and clerical workers. Together these two occupation groups account for 28.0 percent of all employed people. The smallest occupation group is elementary occupations (7.6 percent of all employed people).

Table 14.7. EMPLOYED PERSONS BY OCCUPATION AND SEX, 19971

Major occupational groupsMaleFemaleTotalPercentage distribution2
MaleFemaleTotal

1Annual average for the year ended December 1997.

2Percentage calculations are based on adequately defined cases only.... Denotes estimates fewer than 1,000 and subject to sampling errors too great for most practical purposes. Some discrepancies may exist between totals and the sum of their component items due to rounding.

Source: Household Labour Force Survey

 (000) 
Legislators, administrators and managers127.667.1194.813.68.911.5
Professionals103.7118.1221.811.015.713.1
Technicians and associate professionals110.998.5209.411.813.112.4
Clerks49.9182.8232.75.324.213.7
Service and sales workers87.8154.2242.19.320.514.3
Agriculture and fishery workers103.939.1143.011.15.28.4
Trades workers154.812.0166.816.51.69.9
Plant and machine operators and assemblers117.033.5150.412.54.48.9
Elementary occupations81.647.9129.58.76.47.6
Not adequately defined2.0...2.9.... 
            Total939.3754.01,693.3100.0100.0100.0

ETHNIC EMPLOYMENT
By major industry group

OCCUPATIONS OF THE EMPLOYED, 1997

The largest occupation group for males is trades workers, with almost one in six males involved in this occupation (16.5 percent). This is followed by legislators, administrators and managers, in which 13.6 percent of males are employed. The smallest occupation group for males is clerical workers (5.3 percent).

Women tend to be concentrated in a smaller number of occupation groups. Nearly a quarter of all employed females work as clerks, with a further 20.5 percent employed as service and sales workers. The smallest occupation group for females is trades workers, accounting for only 1.6 percent of total female employment.

There is still some degree of occupation segregation in the New Zealand labour force i.e. the so-called ‘male’ and ‘female’ occupations still exist. Males are over-represented in the occupations of trades workers and legislators, administrators and managers, while females are over-represented in the clerical and service/sales workers occupations.

14.2 Unemployment

There are three main sources of unemployment data in New Zealand;

  • Statistics New Zealand's Household Labour Force Survey (HLFS);

  • Statistics New Zealand's five-yearly Census of Population and Dwellings; and

  • The Department of Labour's job seeker register.

These measures differ from each other in their scope, collection methods and the way they define unemployment. The 1996 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 1996 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 available to all job-seekers not currently in full-time employment, but is required of those receiving the Unemployment Benefit. The Department of Labour releases monthly updates of registered unemployment data.

Definition differences mean that people 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 people 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 by the quarterly HLFS which began in December 1985. The HLFS provides a timely picture of the labour force status of New Zealand's working-age population by classifying it into three categories viz. the employed, the unemployed and those not in the labour force.

Demographic and social characteristics of the unemployed

In the year ended December 1997, an average of 120,900 people were counted by the HLFS as being unemployed. This is the equivalent to 6.7 percent of the total labour force. The unemployment rates for males and females were very similar, at 6.6 percent and 6.7 percent respectively. Variations in unemployment rates are wider when social and demographic characteristics are taken into account.

UNEMPLOYMENT RATE, 1997
Age specific

REGISTERED UNEMPLOYED
Excluding vacation workers

Table 14.8 shows the average number of unemployed in the year ended December 1997 by educational attainment. The unemployment rate is highest among those people with no educational qualifications (11.3 percent) and lowest for those people with both school and post-school qualifications (4.2 percent).

Table 14.8. UNEMPLOYED PERSONS BY EDUCATIONAL ATTAINMENT, 19971

Educational attainmentNumber of unemployedUnemployment rate
MaleFemaleTotalMaleFemaleTotal

1Annual average for the year ended December 1997.... Denotes estimates fewer than 1,000 and subject to sampling errors too great for most practical purposes. Some discrepancies may exist between totals and the sum of their component items due to rounding.

Source: Household Labour Force Survey

 (000)percent
No qualifications26.319.145.311.411.211.3
School qualification15.514.730.26.76.16.4
Post-school but no school qualification7.55.312.86.49.57.4
Post-school and school qualification17.215.232.44.04.54.2
Not specified..................
            Total66.554.4120.96.66.76.7

Unemployment is highest among the younger age groups. As can be seen in table 14.9, half of the unemployed are aged 29 or younger, whereas only 10.8 percent of the unemployed are aged 50 or over. As the graph of age-specific unemployment rates 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.

Youngsters from the Prince of Wales trust course working on a flat in Porirua.

Table 14.9. UNEMPLOYED PERSONS BY AGE, 19971

AgeNumber of unemployedUnemployment rate
MaleFemaleTotalMaleFemaleTotal

1Annual average for the year ended December 1997....Denotes estimates fewer than 1,000 and subject to sampling errors too great for most practical purposes. Some discrepancies may exist between totals and the sum of their component items due to rounding.

Source: Household Labour Force Survey

 (000)percent
15-1912.311.323.616.315.816.1
20-2412.610.122.711.010.710.9
25-298.06.114.16.66.66.6
30-347.86.514.26.36.86.5
35-396.66.312.95.05.95.4
40-445.95.111.05.05.15.0
45-495.04.08.94.44.14.3
50-543.52.86.43.93.83.9
55-593.31.64.95.03.54.4
60-641.4...1.74.0...3.2
65 and over..................
            Total66.554.4120.96.66.76.7

Unemployment rates for Māori and Pacific Island people are more than three times those of Europeans/Pakehas. Table 14.10 shows the unemployment rate for NZ European/Pakeha at 4.7 percent, Maori at 16.9 percent and Pacific Island at 15.3 percent.

Table 14.10. UNEMPLOYED PERSONS BY ETHNICITY, 19971

Ethnic groupNumber unemployedUnemployment rate
MaleFemaleTotalMaleFemaleTotal

1Annual average for the year ended December 1997... Denotes estimates fewer than 1.000 and subject to sampling errors too great for most practical purposes. Some discrepancies may exist between totals and the sum of their component items due to rounding.

Source: Household Labour Force Survey

 (000)percent
NZ European/Pakeha38.431.870.24.64.84.7
Māori14.213.427.616.018.016.9
Pacific Island6.74.611.417.013.415.3
Other7.04.611.614.712.113.6
Not specified..................
            Total66.554.6121.16.66.76.7

Student Job Search takes its message to the streets of Wellington.

Duration of unemployment

In the Household Labour Force Survey, short-term unemployment is defined as 26 weeks or fewer and long-term unemployment as 27 weeks or more. Following the share market crash in 1987 and into the recession years of the early 1990s, the average duration of unemployment (the length of time people are unemployed) started to increase. This increase in duration is due largely to a significant increase in the proportion of the unemployed who were long-term.

The long-term unemployed accounted for an average of 28.2 percent of those unemployed who specified a duration in the year to March 1988. However, by 1993 they accounted for more than half (54.2 percent). In the last four years there have been decreases in the number of long-term unemployed, and in the year to March 1997 an average of 36.5 percent of those unemployed who specified a duration were long-term. Table 14.11 shows how the numbers of people unemployed by duration have changed in recent years.

Table 14.11. PERSONS UNEMPLOYED, BY DURATION OF UNEMPLOYMENT AND SEX1

Average for the year ended Marchweeks53 weeks and overNot specifiedTotal
1-45-89-1314-2627-52

1Some discrepancies may exist between totals and the sum of their component items due to rounding.

Source: Household Labour Force Survey

 (000)
Males
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
199212.09.18.416.822.128.36.7103.4
19939.87.46.914.418.635.06.999.0
199411.06.76.412.316.931.56.591.3
19959.96.45.89.412.424.26.974.9
199610.85.55.58.19.115.15.759.8
199711.07.15.49.810.112.84.961.0
Females
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
199211.47.87.211.512.712.75.869.2
19939.76.45.49.912.616.56.166.6
199410.46.05.99.511.415.55.464.1
19959.55.95.07.57.911.46.053.2
199611.45.34.46.77.28.15.648.8
199711.76.85.37.46.77.65.450.9
Total
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
199423.814.414.119.425.848.814.8161.0
199519.412.310.716.920.335.712.9128.1
199622.210.89.914.916.323.211.3108.6
199722.713.910.717.216.720.410.3111.9

14.3 Training and employment assistance

New Zealand needs to develop a highly skilled, flexible and productive workforce if it is to achieve levels of economic growth which will improve its competitive advantage as a small player in a global economy.

The Skill New Zealand strategy promotes the concept of lifelong learning, with both employers and employees having an ongoing commitment to training and learning. Access to high quality education and training assists individuals to develop skills for the workplace. This is achieved through the integration of school, tertiary, and workplace education, based around the National Qualifications Framework.

Education and Training Support Agency

The Education and Training Support Agency (ETSA) is a Crown entity established by the Education Amendment Act 1990. The agency reports directly to the Minister of Education through its board. Its purpose is to advance a range of training options for its customers, who include employers, industry training organisations, training providers and trainees. With 14 regional offices and 9 associated sub-offices, the agency has an extensive regional structure, as well as a national office based in Wellington.

ETSA's mission is ‘Skills Development for Work’, reflecting a commitment to raising New Zealanders' skill levels. 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.

ETSA is committed to providing equal opportunity in training, and has a special focus on those who have not been well served by traditional educational institutions. It works closely with its customers to understand their needs and develop solutions from a range of services. The agency has a close working relationship with the New Zealand Qualifications Authority to ensure all training is carried out to nationally-recognised standards.

ETSA is funded through Vote Education under a Document of Accountability negotiated annually with the Minister of Education. In the year to June 1997 ETSA received from the government $18.95 million operational funding ($19.7 million in 1996).

The Education and Training Support Agency is responsible for the following major training initiatives: Skill New Zealand; Training Opportunities Programme (TOP); Skill Enhancement; and Secondary Tertiary Alignment Resource (STAR).

In a special project during the year to June 1997, commissioned Youth Action Training, ETSA purchased training on behalf of the NZES for its younger clients who were assessed as having significant social, personal or learning problems and were not ready for entry to the TOP, at a cost of $1,213 million.

Skill New Zealand. Under the Industry Training Act 1992, industries are progressively taking over responsibility for developing, implementing and administering their own training. The Skill New Zealand training system encompasses new skill standards and qualifications developed by Industry Training Organisations (ITOs) to meet the needs of their industry. ETSA is responsible for recognising and supporting ITOs. It assists industry groups either to establish ITOs or to become included in existing ITOs.

ITOs are responsible for: setting national skill standards for their industry; developing training packages for employers in their industry; arranging delivery of on- and off-job training; and administering apprenticeships, primary industry cadetships, and other industry training arrangements.

At 30 June 1997 there were 52 recognised ITOs covering an estimated 75 percent of New Zealand's work force. In the year to June 1997, 21 ITOs were assisted to become accredited to register workplace assessors (9 in 1996), and 99 new training programmes were approved for funding (168 in 1996).

ETSA administers the Industry Training Fund, which subsidises structured industry training. For each academic year, the agency purchases a target number of Standard Training Measures (STMs). One STM is regarded as equivalent to a trainee who has completed training designed to lead to the achievement of a 120-credit National Certificate (or a Trade Certificate or Cadetship equivalent). The funding subsidises component costs of ITO training arrangements. Ninety percent of the subsidised training is at levels 3 and 4 of the National Qualifications Framework.

At 30 June 1997 there were 15,837 new trainees (14,014 in 1996) and a total of 31,652 trainees (23,957 in 1996). A total of 14,529 STMs was purchased, at an average cost of $3,181. Total expenses of Industry Training for the year ended 30 June 1997 were $41,084 million ($29,696 million in 1996).

Training Opportunities Programme (TOP). This is a fully-funded programme targeted towards people with low qualifications who are either recent school leavers or long-term unemployed. Eligibility changes introduced on 1 April 1996 mean that ex-prisoners, refugees, people who have been on Domestic Purposes or Widows' benefit for a year or more, and NZES Youth Action and other priority clients are now included in the target group. At 1 May 1997, 41 percent of TOP trainees were school leavers, 28 percent long-term unemployed, 11 percent Workbridge, 11 percent other NZES clients, and 8 percent Domestic Purposes and Widow's Beneficiaries.

TOP offers trainees the opportunity to be assessed against National Qualifications Framework unit standards and to gain credits on the Framework, to move into further education and training and to improve their employment prospects. The Agency purchases a diverse range of training in a variety of responsive learning environments including marae, polytechnics, community organisations and the workplace.

The programme is designed to assist trainees gain credits towards nationally-recognised qualifications. These may be vocationally based, such as fishing or computing courses, but also can include capability skills, such as communication and budgeting. Trainees may remain in the programme until they have accumulated up to 240 credits on the National Qualifications Framework. Work-based training is available, which places trainees with employers for on-job training.

There was an average of 15,981 trainees in place during the year to 30 June 1997 (16,021 in 1996). At 30 September 1996 there were 17,490 TOP trainees of whom 44 percent were Māori, 11 percent Pacific Island, and 49 percent were women, about the same proportions as in 1995. Contracts were negotiated for 585 providers (594 in 1996). Average training cost of the programme was $212 per trainee per week ($213 in 1996). For the year ended 30 June 1997 the total expenses of TOP were $166,517 million ($165,456 million in 1996).

Skill Enhancement. This programme (previously known as Māori Vocational Training and before that as Māori Trade Training) provides vocational learning opportunities and improved employment prospects for young Māori and Pacific Island people aged between 16 and 21 years inclusive. Skill Enhancement provides training leading to a qualification on the National Qualifications Framework at levels 3 and/or 4, presenting an alternative pathway and learning environment which assists Māori and Pacific Island youth obtain the qualifications and experience sought in the workplace.

The trustees of the Merekaraka Trust, from left, Jay Norman, Hapeta Rewiri, Rebecca Tuhi, Rose Savage (CEG) and Ana Rewiri.

During the year the two strands of the programme were made more distinct and given new names: Rangatahi Maia (bold young people) for the Māori and Tupulaga Le Lumana'i (youth are our future) for Pacific Island learners.

There was an average of 660 trainees in the year to 30 June 1997 (638 in 1996). There were 748 trainees in place at September 1996 (687 in place at 30 June 1995,572 in 1994), of whom 78 percent were Māori, 22 percent Pacific Island, and 36 percent were women. Training was purchased from 47 providers (49 in 1996). Average training cost for Skill Enhancement in the 1997 calendar year was $247 per trainee per week ($250 in 1996). For the year ended 30 June 1997, total expenses of Skill Enhancement were $8,490 million ($8,723 million in 1996).

Secondary Tertiary Alignment Resource (STAR). The aim of STAR is to provide secondary school students with industry-focused training options. Programmes offered by the schools may have a number of different characteristics but all have a common school-industry link. STAR is administered by the Ministry of Education. The role of the agency in STAR is to provide advice and assistance to targeted schools on the design, establishment and implementation of the programme. This may include assistance with the establishment of links with industry and other tertiary organisations; advice on unit standards and qualifications relating to the National Qualifications Framework; and/or information on assessment and evaluation procedures within the workplace.

In the year to June 1997, 65 schools were assisted with application for or implementation of STAR programmes.

Skill Pathways. This initiative was designed to encourage the development of a variety of vocational training pathways for young people aged 16 to 21 years, using a mix of on- and off-job vocational education and training linked to the National Qualifications Framework. In 1996 Skill Pathways was focused on senior students in secondary school. Eighty-four schools developed training pathways (50 providers in 1995) under the Skill Pathways programme, allowing students the opportunity to gain credit toward national certificates. There was a total of 1,263 trainees for the 1996 calendar year (1,060 in 1995). Average training cost for Skill Pathways was $85 per trainee per week. Skill Pathways operated until December 1996.

Career Service rapuara

A Crown entity, Career Services was established (as Quest Rapuara) in July 1990. It contracts with the Minister of Education to deliver a range of services through a document of accountability between the minister and the Career Services board.

Career Services is New Zealand's leading provider of career advice, planning and information. Staff in fourteen locations nationwide provide services to a range of private and public sector clients. Offices are also open to the general public for career information and advice, and career planning services, and services are available through the freephone number 0800 A CAREER.

In fulfilment of its objective to ensure all New Zealanders have access to publicly-funded, up-to-date, neutral, culturally-appropriate, quality career information, Career Services provided such information and advice to more than 44,000 clients customers through its network of centres throughout the country in the year to June 1997.

Career planning. Career Services consultants work with clients to: identify skills; investigate career and training options; base decisions on up-to-date information; develop career plans; learn interview and job search skills; and prepare CVs.

In the 1997 year 6,567 people received funded career guidance compared with 6,136 people in the previous year, and more than 1,000 targeted individuals received career counselling and developed career action plans.

Quest Database is an easy-to-use computer program which describes more than 600 jobs, including tasks involved, entry requirements, and where to find more information. It lists about 5,000 training courses in New Zealand, covering content, entry requirements, course lengths and locations, and has bi-lingual English and Māori text. In the year to June 1997 the annual Quest Database update was distributed to 579 licence holders (578 in 1996).

Career Information Library. Printed resources include 183 career leaflets, and the book Courses galore—New Zealand's training guide. At June 1997 there were 511 Career Information Library licence holders.

CareerQuest and JobQuest are self-help computer-aided career guidance programs designed to assist people who are making career decisions and are looking for job and training ideas. Users answer questions on work ideas, education, interests, skills and school subjects, which generates information on suitable career options. CareerQuest is used by 382 organisations. There is a licensing agreement with the New Zealand Employment Service.

Career Services, with Victoria University of Wellington and industry and employer organisations, is also piloting KiwiCareers, an Internet-based career information system.

At school level, the service was involved in 11 career expos.

Employment assistance measures

New Zealand Employment Service. The Employment Service (NZES) of the Department of Labour was established in 1988 to provide job search assistance for unemployed New Zealanders. It currently operates through 96 centre or satellite offices. The NZES aims “To build a better future for New Zealand by helping people get work” while its mission is “to eliminate long-term unemployment”.

NZES has a range of programmes and services which help job seekers towards employment. They also provide a service to employers by providing recruiting services offering job seekers from their register at no cost.

Job Plus—helps 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 or facing particular barriers to employment, be in receipt of a work-tested benefit and be assessed as needing extra help or training to secure a job.

Job Plus Training Option—provides employment-related training linked to a job, or jobs likely to arise. It assists job seekers who are not necessarily qualified for a position to get the job through targeted training.

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 NZES for at least 26 weeks, and in receipt of a work-tested benefit. Job seekers may also be eligible for a business training and advice grant of up to $600. Job seekers can also capitalise a portion of their Enterprise Allowance up to a maximum of $5,000.

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 $20 per week to cover costs.

The programme has been considerably expanded in 1997-98 as an interim measure towards establishment of the government's objective to involve job seekers in community work and to develop the concept of a community wage.

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/sponsor. The programme is open to both public and private sector employers for projects of benefit to the environment and the community. It aims to provide job seekers, who have been out of work for some time, a chance to get recent work experience, update or enhance old skills or gain new skills to improve their chances of finding work.

Job Action and other employment assistance seminars—help job seekers enrolled with the service to improve their job-seeking skills. Job Action is a programme specifically designed for job seekers who have been out of work for longer than two years to enhance their employability and to develop with each of them an individualised commitment to work. Some employment centres run a variety of seminars/courses on specific aspects of job searching, such as CV preparation, interview skills, vacancy searching techniques, etc.

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.

Hikoi ki pae-rangi—is the same as Wahine Ahuru/Turning Point, but specifically tailored for sole parents looking to return to work.

Tane Atawhai—a programme aimed at helping men who are returning to paid work. It teaches confidence, motivation and allows participants to clarify job choices and training options.

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.

Employment and training for Māori. Under the Māori Development Act 1991, Te Puni Kokiri is responsible for promoting higher training and employment achievement by Māori. It does this mainly by giving policy advice to the government departments and agencies which provide training and employment services for Māori. Recently, this has included:

  • helping design and implement specific projects coming out of the Māori Labour Market Strategy, including three training and employment programmes—Wahine Pakari, Māori Youth Scheme and Job Plus Māori Assets;

  • advising on purchasing specifications for the Training Opportunities Programme (TOP) and helping design and implement a pilot project which uses an alternative TOP purchasing mechanism involving a Māori tribal organisation;

  • helping identify and develop criteria to ensure Māori training and employment service providers meet a minimum quality standard;

  • providing information on barriers to effective participation by Māori training organisations in training and employment service provision; and

  • providing advice to Industry Training Organisations on how to improve their responsiveness to Māori.

Te Puni Kokiri is also involved in facilitating consultation between government training and employment agencies and iwi, hapu and other Māori organisations and individuals. This includes helping Māori, at local level, to access appropriate government service delivery agencies.

Community Employment Group. The Community Employment Group (CEG) of the Department of Labour works with communities and community groups to maximise opportunities for local responses to unemployment. Using its wide experience and local and national networks, the group helps communities identify opportunities for employment, self-sufficiency and positive activity.

Positive activity refers to activity leading to enhanced work readiness, redirection away from criminal activities, and participation in the community by disadvantaged and at-risk individuals and groups. Positive activity may include participation in cultural or sporting activities, voluntary work and mentoring.

The Community Employment Group works predominantly with communities whose members face greater than average disadvantage in the labour market and currently targets its services towards four priority groups: Maori, women. Pacific Islands people, and those in disadvantaged urban and rural communities. These groups tend to face the most difficult employment problems such as long term unemployment, low education and skill levels, and barriers in accessing government services.

CEG helps community organisations by:

  • providing information and advice;

  • assisting the development and implementation of ideas;

  • facilitating community planning;

  • putting groups in touch with other sources of funding or partners;

  • helping co-ordinate local employment development; and, where appropriate

  • providing small levels of seeding funding.

CEG's operating philosophy is that each community or group has a different range of skills and resources. CEG's role is to make available its own experience and skills, combined with a highly flexible operating style, to help communities use the skills and resources they have to plan their future, set goals, and put in place locally-based initiatives to achieve those goals.

In the past year CEG gave particular emphasis to consolidating developmental strategies which had been formulated over the last three years for each of the four priority groups. The strategies are designed to help groups, at a community level, develop a vision and acquire the skills and knowledge necessary to take a greater role for themselves in addressing unemployment. An important element in this process was the use of community input. Direct community input is essential to ensure that the strategies remain relevant and respond directly to community need.

A screen-printer at work in her kitchen on Stewart Island, printing T-shirts.

During the previous year CEG also contributed to the development of policy for the implementation of an integrated employment service, which forms part of the Government's new employment strategy. The integrated service will bring together the Community Employment Group and the New Zealand Employment Service of the Department of Labour with Income Support of the Department of Social Welfare.

In 1996-97 the group's field staff were involved in 23,234 community interventions (17,605 in 1996). These included community strategic planning sessions (7,698), co-ordination of local employment initiatives (2,028), project guidance and community upskilling (4,349), monitoring of funded projects (2,715), and networking to link up groups and individuals (4,801). The group also provided seed grant funding to 680 community employment projects worth $15,465,000 (621 in 1996).

The group is continually testing and developing new strategies for use by communities. Some strategies which have proved successful in one community have been replicated, with local variations in other parts of the country. These include:

Be Your Own Boss—an integrated package of training and advice for unemployed and non-business wise people aiming to run a business.

Business Grow—a referral and information service aimed at encouraging growth and expansion in existing businesses.

Community employment information services—brings information on employment opportunities, enterprise development, and government services to isolated communities.

Community planning sessions—aimed at economic revitalisation of small towns, rural areas, or other small communities.

Company Rebuilders—retired business people who work to save businesses in danger of collapse.

Heritage activities—restores, develops, and markets historic aspects of local communities to attract visitors and create opportunities for employment.

Mahi a Iwi—an umbrella strategy covering the CEG's initiatives undertaken in partnership with iwi to develop enterprise skills, resource utilisation strategies, and one-off projects to facilitate opportunities for employment.

Mainstreet—supports communities working to make their town centres more attractive to visitors and locals, to attract more spending to the area, and increase opportunities for employment.

Mature Employment Service—helps mature unemployed people through counselling and referrals to appropriate agencies.

Small town self-help—investigates employment, training, and local economic development for employment opportunities in rural towns.

Sportsworks—builds on the organisational and human resources found in sports and recreational clubs to develop opportunities for employment and positive activity among local people.

Volunteer services—matches and trains people interested in voluntary work (many of whom are unemployed) thereby creating opportunities for employment.

14.4 Incomes

Earnings

One of the major sources of information on employment earnings is the Quarterly Employment Survey. The survey measures employment levels, and the average pre-tax earnings and hours of paid employees. The Quarterly Employment Survey covers all business locations in surveyed industries employing more than two full-time equivalent employees (excluding working proprietors). 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.

Table 14.12. AVERAGE WEEKLY EARNINGS

Date of surveyAverage weekly earnings1
Ordinary timeOvertimeTotal2

1Includes 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.

2Average 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.

Source: Quarterly Employment Survey

  $
1994—Feb563.5233.91592.55
            May567.8235.58598.04
            Aug567.2533.26595.34
            574.0037.85605.89
1995—Feb578.1036.24609.10
            May583.2635.26613.05
            Aug583.6532.08610.62
            Nov590.7836.17621.14
1996—Feb597.4334.67626.97
            May601.0732.11628.11
            Aug604.1129.19628.59
            Nov613.7435.39643.33
1997—Feb619.9833.28648.27
            May624.9631.50651.33
            Aug624.9229.07649.11
            Nov630.1933.24657.75

In 1997, average total weekly earnings and average ordinary time weekly earnings continued to rise. This has been the trend over the last decade. Average overtime weekly earnings have fallen since 1990 and have not recovered. The average weekly ordinary time and overtime earnings are shown in table 14.12. People tended to work fewer hours per week over the last two years. This was reflected by decreases in average weekly hours paid since August 1995.

Table 14.13. AVERAGE ORDINARY TIME HOURLY AND WEEKLY EARNINGS, FEBRUARY 1997

 PrivateCentral government tradingCentral government non-tradingLocal government tradingLocal government non-tradingAll sectors
Source: Quarterly Employment Survey
 $
Hourly earnings
Male17.0922.5122.3717.9919.2317.95
Female13.6815.5516.4614.2515.9714.55
            Total15.7319.3418.6417.1817.8816.44
Weekly earnings
Male661.67794.10851.31711.30752.79692.80
Female493.56541.17627.61536.63588.23533.20
            Total591.74678.05710.46672.18682.12619.98

On average, employees in the central government sector are paid more than those in any other sector. Since November 1996 central government non trading employees have earned more than $700 per week compared with around $600 per week for those in the private sector. Table 14.13 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.

Gender income differences

The New Zealand Income Survey (NZIS) shows the income disparity between the personal income of males and females. The distribution of income for the total adult population in deciles (see table 14.14) shows that in deciles 1 to 6 there are more females than males, while in the top 4 income deciles there are more males than females. Recipients of the top 40 percent of income are 63 percent males and 37 percent females.

Similarly, the 1996 Census of Population and Dwellings shows that almost 8 out of 10 who received income above $40,000 per annum were males, and that of those who received income below $10,000 just over 6 out of 10 were females.

Table 14.15 shows that the gap between male and female income of full-time workers exists across all age groups, but is greatest between the ages of 25 and 54 years.

Table 14.14. PROPORTION OF MALES AND FEMALES IN EACH INCOME DECILE

DecileMalesFemales
Source: New Zealand Income Survey, June 1997
 percent
1 (loss-$0)38.761.3
2 ($0-$99)34.765.3
3 ($100-$179)42.058.0
4 ($180-$229)43.057.0
5 ($230-$299)35.364.7
6 ($300-$399)42.457.6
7 ($400-$509)50.449.6
8 ($510-$649)57.442.6
9 ($650-$859)66.833.2
10 ($860 and over)77.422.6

Table 14.15. PROPORTION OF MALES AND FEMALES IN EACH INCOME DECILE

14.15 MEDIAN INCOME OF FULL-TIME WAGE AND SALARY EARNERS BY AGE AND SEX
Age groupMalesFemalesDifference
Source: New Zealand Income Survey. June 1997
 ($ per week)
15-1934033010
20-2448247012
25-2960054654
30-34700575125
35-39713566147
40-44700569131
45-49767550217
50-54722532190
55-5963357756
60-64615483132

Sheep-shearing mother of two and defending champion, competing in Southern Shears championship at Gore, 1997.

Clearly income is related to age. However, the highest female median income is lower than the lowest male median income. Therefore gender differences in income exist among 25-64 year-olds, regardless of age, and gender is the dominant factor.

Some of this disparity can be explained by the higher proportion of females who were not available for work (not in the labour force) and the higher proportion in part-time employment, as shown by table 14.16.

Table 14.16. LABOUR FORCE STATUS

 MaleFemale
Source: 1996 Census of Population and Dwellings
 Percent
Full-time employed59.634
Part-time employed8.619.1
Unemployed5.34.8
Not in the labour force26.542.1
            Total100100

Table 14.17. MEDIAN INCOME BY SEX AND ETHNICITY

EthnicityMaleFemaleDifference
Source: New Zealand Income Survey. June 1997
 ($ per week)
European660550110
New Zealand Māori50247131
Pacific Island48044040

Table 14.18 shows that the proportion of males in each occupation working full time who receive income above $40,000 is higher than that of females. This is true even in occupations that are dominated by females, such as clerks and service and sales occupations.

Table 14.18. PROPORTION OF MALES AND FEMALES BY OCCUPATION GROUP WITH INCOME OVER $40,000

OccupationMalesFemales
Total number in occupationPercentage receiving $40,001 and overTotal number in occupationPercentage receiving $40,001 and over
Source: 1996 Census of Population and Dwellings
Legislators, administrators and managers112,75858.054,44428.0
Professionals79,85462.975,52528.5
Technicians and associate professionals83,96143.056,80516.7
Clerks35,97918.3111,7594.7
Service and sales workers57,25223.366,8913.6
Agriculture and fishery workers85,51517.227,57011.6
Trades workers127,04416.66,7924.6
Plant and machine operators and assemblers95,04616.721,0691.9
Elementary occupations48,8619.917,5381.7

However, receipt of lower incomes across occupations (and industries) does not mean that females dominate low-paying occupations. Of the five occupations which had the highest proportions of full-time workers receiving income below $20,000 (service and sales, agriculture and fishery, plant and machine operator and assemblers, trade, and elementary occupations) the proportion of males was higher than the proportion of females in all but the service and sales occupation group.

Table 14.19 shows the median income of adult male and female wage and salary earners by their highest qualification. In each level of attainment the median income of males is higher than that of females. Interestingly, the inequality is greater among those with post-school qualifications than those with no qualification or school qualifications.

The median income of males is higher than that of females in each ethnic group (table 14.17). The income inequality between males and females is greatest among Europeans.

There is some degree of overlap in the median income of males and females analysed by qualification and ethnicity. For example table 14.17 shows the median income of European females is higher than that of New Zealand Maori males. This suggests that qualification levels and factors associated with ethnicity have an effect on income either through or independently of gender.

The NZIS figures given here, for full-time workers only, show that inequality of income exists in age, occupation, qualification and ethnic groups.

The Household Labour Force Survey shows the labour force participation rate of females falls between the ages of 25 and 34 years while the labour force participation rate of males continues to climb throughout this age group. Breaks in labour force participation by females could be a reason for the slower growth in the median income of females aged 25 years to 34 years, than of males.

Other factors including marital status and source of income could also be considered.

The differences in income of males and females does not necessarily mean that females are less well-off than males. The ability of a person to consume is probably determined more by their family or household income than the income that they themselves gain.

Wage indexes

The Prevailing Weekly Wage Rates Index (PWWRI) measured changes in ordinary time wage and salary rates being paid to full-time adult employees whose minimum pay rates were contained in awards or agreements registered with the Arbitration Commission in the base period of the index. The index is discontinued. A table of the PWWRI for 1990-93 appeared in the 1995 Yearbook.

The quarterly Real Wage Rate Index (RWRI). measuring the changing after-tax purchasing power of wages and salaries for a fixed number of hours worked, was first released in the June 1994 quarter, having been calculated back to the December 1992 quarter, and ceased with the September 1996 quarter.

Table 14.19. MEDIAN INCOME BY SEX AND QUALIFICATION

Highest QualificationMaleFemaleDifference
Source: New Zealand Income Survey, June 1997
 ($ per week)
No formal qualification49941683
School certificate51249517
Sixth form certificate61452688
Higher school certificate52048040
Vocational or trade qualification673556117
Degree901700201
Other post-school qualification667542125

LABOUR COST
Movement of Labour Cost Index (LCI)

The index was discontinued because of shortcomings limiting the value of the index for both information and analysis, and because of funding constraints within Statistics New Zealand. An explanation of the RWRI and a table for 1993-96 appeared in the 1997 Yearbook.

Labour costs

Labour Cost Index (LCI). This index, which replaced the Prevailing Weekly Wage Rates Index (PWWRI) in the September 1993 quarter, measures changes in salary and wage rates and changes in non-wage labour-related costs. It is calculated using information obtained by a quarterly postal survey of employers.

Table 14.20. SALARY AND WAGE RATES (INCLUDING OVERTIME): BY SECTOR1

 Local government sectorCentral government sectorTotal public sectorPrivate sectorAll sectors combined

1Base: December 1992 quarter (= 1000).

Source: Labour Cost Survey

Indexes
1995—Mar10261015101710291026
            Jun10271019102010321029
            Sep10381023102510381035
            Dec10441032103310441041
1996—Mar10471035103710491046
            Jun10511037103910531049
            Sep10581047104810581055
            Dec10661058105910631062
1997—Mar10691067106710701069
            Jun10711073107310761075
            Sep10761081108010811080
            Dec10811084108410851085
Percentage change from same quarter of previous year
1995—Mar1.41.01.11.41.3
            Jun1.21.21.21.41.4
            Sep1.91.21.31.61.5
            Dec2.02.01.91.91.9
1996—Mar2.02.02.01.91.9
            Jun2.31.81.92.01.9
            Sep1.92.32.21.91.9
            Dec2.12.52,51.82.0
1997—Mar2.13.12.92.02.2
            Jun1.93.53.32.22.5
            Sep1.73.23.12.22.4
            Dec1.42.52.42.12.2

Table 14.21. LABOUR COSTS BY TYPE OF COST1

 Salary and ordinary time wage ratesOvertime wage rates2All salary and wage rates3All non-wage labour costs4All labour costs5

1Base: December 1992 quarter (= 1000).

2Indexes measure changes in rates paid for actual hours worked as overtime in the base period (i.e. the December 1992 quarter). Some of these pay rates have fallen to ordinary time levels in subsequent quarters.

3Including overtime.

4Indexes measure changes in all surveyed non-wage labour costs (i.e. annual leave and statutory holidays, superannuation, ACC employer premiums, medical insurance, motor vehicles available for private use and low interest loans).

5Indexes measure changes in all surveyed labour costs (i.e. all salary and wage rates and all non-wage labour costs).

Source: Labour Cost Survey

Indexes
1995—Mar10261006102610581031
            Jun10291007102910751037
            Sep10351013103510781042
            Dec10421013104110871049
1996—Mar10471018104610871053
            Jun10501020104911201061
            Sep10561026105511271068
            Dec10631033106211361074
1997—Mar10701037106911431082
            Jun10761042107511531088
            Sep10821046108011601094
            Dec10861049108511581097
Percentage change from same quarter of previous year
1995—Mar1.30.81.34.61.8
            Jun1.30.81.45.12.0
            Sep1.51.31.55.22.2
            Dec1.91.11.95.72.5
1996—Mar2.01.21.92.72.1
            Jun2.01.31.94.22.3
            Sep2.01.31.94.52.5
            Dec2.02.02.04.52.4
1997—Mar2.21.92.25.22.8
            Jun2.52.22.52.92.5
            Sep2.51.92.42.92.4
            Dec2.51.52.21.92.1

In addition to an index for all sectors combined, separate indexes are compiled for the local government, central government,' public and private sectors of ownership. 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.

Salary and wage rates being paid to employees in all sectors were, on average, 2.2 percent higher in the December 1997 quarter than in the December 1996 quarter.

Rates being paid in the private sector increased by 2.1 percent in the year to December 1997. while public sector rates rose by 2.4 percent. For the majority of quarters from the year to March 1996 onwards, annual increases in public sector salary and wages were higher than those in the private sector.

Fifty-one percent of the ordinary time salary and wage rates in the survey were unchanged in the year to December 1997. The average and median increases were 4.1 percent and 3.0 percent, respectively.

Non-wage labour costs in the survey are annual leave and statutory holidays, superannuation, ACC (Accident Compensation Corporation) employer premiums, medical insurance, motor vehicles available for private use and low interest loans. Table 14.17 shows that the difference between movements of non-wage costs and salary and wage rates has narrowed. In fact recently, from the year to June 1997 onwards, non-wage labour costs have been rising more slowly than previously. The increase in non-wage costs for the year to December 1997 was 1.9 percent. The main contributors to the increase came from higher annual leave and statutory holiday costs and also from higher ACC employer premium costs. These increases were partially offset by decreases in superannuation and low-interest loan costs.

Salary and wage rates accounted for 83 percent of labour costs in the index's base period, with non-wage labour costs accounting for the remaining 17 percent. Overall, labour costs rose 2.1 percent in the year to December 1997, down from a peak of 2.8 percent in the year to March 1997. The lower annual increase for the year to December 1997 is the result of a much smaller annual increase in ACC costs.

14.5 Labour relations

There is a range of legislation dealing with the employment relationship. The Employment Contracts Act 1991 sets out the main framework giving employees and employers choice in terms of who represents them, what type of employment contract should apply and what the contract should contain. Other employment legislation sets out minimum statutory conditions of employment, for example, minimum entitlements to paid holidays.

Employment Contracts Act 1991. This act 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 membership of employees' organisations—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.

Bargaining arrangements—the nature of bargaining arrangements is negotiable between employers or their representative. In particular:

  • Every employer has with each of their employees an individual or collective contract or both.

  • Employees and employers have the right to authorise another person, group or organisation to represent them in negotiations for an employment contract.

  • Representatives 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 representative, provided they have not been convicted of an offence punishable by five years or more in prison, within the last 10 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 representative.

  • Authorised representatives have rights of access to the workplace to assist the process of negotiation at any reasonable time.

  • Authorised representatives may become party to an employment contract when the employer, employees and representative concerned all agree.

The bargaining arrangements give employers and employees the freedom to negotiate about what type of contract they want, and about the content of the contract, which may include any matter they choose. Thus a variety of contractual arrangements is possible, including individual or collective contracts and contracts which cover a single employer or a number of employers. Collective contracts will bind only 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.

Self-employed mother works at home, recycling, re-inking computer and typewriter ribbons, 1997

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 certain provisions of the act, including, for example, the remedies which are available. 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 to 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 collective contracts are lawful so long as there is no collective contract in force relating to the employees on strike. 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 the employers have not agreed to this structure), or which relate to personal grievances or disputes over the interpretation, application or operation of an employment contract are also unlawful. Notice must be given for strikes and lockouts in essential industries. 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 during industrial action. The Employment Court has jurisdiction in relation to torts and injunction actions with respect to industrial action.

Specialist labour relations institutions—there is a lower order Employment Tribunal and a higher order Employment Court, with exclusive jurisdiction over employment matters.

The tribunal's main functions are:

  • 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. Certain other provisions, known as the minimum code of employment, provide statutory minimum entitlements which apply to all employees. These include:

  • A statutory minimum wage at two levels: an adult minimum wage applying to employees aged 20 and over, and a youth minimum wage applying to people age 16 to 19.

  • 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 doing substantially the same work.

  • Access to procedures for resolving personal grievances and disputes.

Minimum wage. The Minimum Wage Act 1983 authorises the determination of the national minimum wages for adults and young people, establishing floors for each of these groups below which wages cannot generally fall. The Minimum Wage Order 1997 set the adult minimum wage, for those aged 20 and over, at $7 per hour, $56 for an 8-hour day, and $280.00 for a 40-hour week. The youth minimum wage, for young people aged 16 to 19, is set at 60 percent of the adult minimum wage, and amounts to $4.20 per hour, $33.60 for an 8-hour day, and $168.00 for a 40-hour week. The new statutory minimum wages rates came into force on 1 March 1997.

Demonstration at Parliament against changes to holidays

There are several groups who are not entitled to the minimum wage. They are:

  • Those under the age of 16 years.

  • Trainees undergoing training in the nature of apprenticeship.

  • Full-time university students employed during holidays to obtain practical experience related to their studies.

  • Persons undergoing certain 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: New Year's Day (1 January); 2 January (or another day in its place); Waitangi Day (6 February); Anzac Day (25 April); Good Friday; Easter Monday; Queen's Birthday; Labour Day; Christmas Day (25 December); Boxing Day (26 December); and the anniversary of the province where an employee is employed. Where employees work on a public holiday, and that public holiday falls on a day they would normally work, they are entitled 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.

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 completion of six months employment with an employer, an employee is 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. A medical certificate may be required as proof of pregnancy, or in the case of adoption, a letter from the Department of Social Welfare. 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.

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 woman during pregnancy for reasons connected with the pregnancy.

  • Maternity leave—a woman is entitled to up to 14 weeks maternity leave, of which up to six weeks may be taken before the birth or. 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 about 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 taken by either parent or shared between both parents, although any period taken as maternity leave is deducted from the total available. Paternity leave is additional to the 12 month entitlement.

Job Protection—where an employee takes 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.

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 provides that employers cannot differentiate in pay rates between employees on the basis of their sex. Under the Human Rights Act 1993. which replaced 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' sex, marital status, religious or ethical belief, colour, race, ethnic or national origins, disability, age, political opinion, employment status, family status, or sexual orientation. Discrimination in terms and conditions of employment, training, promotion and dismissal because of the employees' colour, race, ethnic or national origins, sex, age, marital status, or religious or ethical belief, and sexual harassment are also grounds for taking a personal grievance under the Employment Contracts Act 1991. Employees may make a complaint under the Human Rights Act or may use the personal grievance procedures under the Employment Contracts Act to enforce their rights in cases of discrimination or sexual harassment. Where both procedures are available, the employee must choose one or other procedure.

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. Some 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.

Northland book binders find thin strong possum skins make excellent leather to bind books

The New Zealand Council of Trade Unions was formed in October 1987 to unite private and public sector unions previously represented by separate national organisations. It is the national advocate of worker interests, it organises unions on issues of mutual concern and it represents New Zealand workers internationally. Twenty-two unions (representing 80 percent of all union members) are affiliated to the CTU. The Internet address is: www.union.org.nz.

The New Zealand Employers' Federation, formed in 1902, has about 45 national business organisations affiliated, and four regional member organisations which provide direct services to some 11,000 members. Funded by subscriptions of voluntary members, it represents the country's employers by influencing the conditions in which they operate, particularly through developing public policy which supports an open competitive economy and private enterprise.

Work stoppages

Statistics relating to what are now termed work stoppages have been published regularly in the Yearbook since 1922 when data from the ‘Quarterly returns re Strikes and Lockouts’ was first collected by the then Department of Statistics and the Department of Labour. This early data was largely obtained from returns furnished by Inspectors of Factories. Work stoppages have, since 1922, been variously collected under the names ‘industrial disturbances’, ‘industrial disputes’ and ‘industrial stoppages’ before the term ‘work stoppages’ was adopted in 1984 when only those stoppages relating to terms and conditions of employment were collected.1 From 1988 onwards the coverage of work stoppages has been extended to include the public sector.

For statistical purposes, work stoppages are defined not only as those disputes which result in a complete withdrawal of labour by workers or a lockout by employers, 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 are called ‘partial’ strikes, or partial lockouts if the action is initiated by the employer.

Published statistics relate to complete strikes and complete lockouts which involve the equivalent of 10 or more working days lost (eg 10 people striking on one day), 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 include workers who. while not participating in a stoppage directly, are suspended because of the unavailability of normal work. Work stoppage data related to partial lockouts (the situation where an employer, although allowing employees to work normal hours, withdraws the provision of contractual obligations), is still collected despite the ruling by the Employment Court in June 1994 that such action is unlawful.

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.

Work stoppage statistics are compiled by Statistics New Zealand from the ‘Record of Work Stoppage Forms’ collected on its behalf by the Department of Labour. Stoppages are identified by scanning newspapers and by regular contact with employee and employer organisations. Once a dispute is identified in one of these ways a form is sent to the employer for completion.

NUMBER OF STOPPAGES

The Employment Contracts Act 1991 places restrictions on the ability of employees to strike and on the ability of employers to lock out 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.

  • A personal grievance.

  • 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.

  • Is concerned with the issue of whether an employment contract will bind more than one employer.

  • 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.

Table 14.22 shows that since 1991, the year the Employment Contracts Act was introduced, the number of work stoppages has fallen to levels not recorded since the early 1960s. Provisional data for the 1997 calendar year gives 42 stoppages. This compares with 72 stoppages in the 1996 calendar year. 54 and 58 in 1992 and 1993 respectively, and 69 in both 1994 and 1995.

The number of employees involved in work stoppages has also decreased. In the 1997 calendar year there were 7.646 employees involved in work stoppages, the lowest level since 1936.

Following the introduction of the Employment Contracts Act in 1991 there has been a change in the distribution of lockouts as a percentage of all stoppages. The graph shows that in the 1990 calendar year lockouts comprised less than 1 percent of all stoppages but increased to over 11 percent by 1992. fell to 8.7 percent in 1994, 2.9 percent in 1995 and increased to 4.8 percent in 1997.

Table 14.22. WORK STOPPAGES: 1921-97

YearTotal stoppagesNo, of employees involvedPerson days of work lostAverage days lost per employee involvedEstimated loss of wages and salaries
Source: Department of Labour and Statistics New Zealand
 $(000)
19217710,433119,20811.43180
1926596,26447,8117.6365
1931246,35648,4867.6389
1936437,35416,9802.3126
19418915,26126,2371.7269
19469615,69630,3931.9480
195110936,8781,157,39031.386,223
19565013,57923,8701.76168
19617116,62638,1852.30299
196614533,13299,0952.99878
197131386,009162,5631.892,109
1976487201,085488,4412.4310,840
1981291135,006388,0862.8720,411
1986215100,6331,329,05413.21119,496
19917151,96299,0321.9111,577
19925426,803113,7424.2419,372
19935821,30323,7701.122,863
19946916,04238,2632.394,580
19956932,04853,3521.666,813
19967242,30769,5141.649,768
199742P7,646P24,614P3.22P3,126P

LOCKOUTS
As a percentage of all stoppages

TOTAL WORKDAYS LOST

Table 14.23. WORK STOPPAGES IN SELECTED INDUSTRIES1

 Total number of stoppages2Number of employees involvedPerson-days of work lost34Average days lost per employeeEstimated loss in wages and salaries5

1ANZSIC:Australian and New Zealand Standard Industrial Classification.

2Stoppages 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.

3Previously termed working days lost.

4Rounded to the nearest whole day.

5Rounded to the nearest $1,000.

6This is a combination of industries. Mining, Electricity Gas & Water Supply; Construction: Wholesale Trade. Retail Trade, Accommodation, Cafes & Restaurants; Finance & Insurance, Property & Business Services; Cultural, Recreational, Personnel & Other Services.

7The total figures for working days lost and losses in wages and salaries may not add to the sum of their respective columns due to rounding of each figure.

.. = suppressed to maintain confidentiality.

Source: Department of Labour and Statistics New Zealand

 $(000)
Manufacturing
1993201,8103,0341.68371
1994334,02812,8183.181,457
1995265,12323,2974.552,687
1996223,47518,3955.292,704
199714P1,070P14,183P8.49P 
Health and Community Services
1993163,4887,9622.28896
19941527125,5102.03638
19952........
1996125231,0261.96203
19975P885P966P1.09P 
Education
19932........
199431,7052,4821.46276
19951319,03022,4091.183,072
19961022,15617,9930.812,963
19975P345P326P0.95P 
Government Administration and Defence
199339521140.1213
199451,1745500.4772
199592,3117021.6089
199698,79414,6761.671,706
19977P1,790P2,709P1.51P 
Transport, Storage and Communication Services
199353842960.7721
199435,88215,6302.662,028
1995828114,4841.60690
199681,0482,0541.96268
19974P2,515P4,112P1.63P 
Other6
199312........
1994105411,2742.35109
199511........
1996116,31115,3702.441,924
19977P441P2,318P5.26P 
Total all stoppages7
19935821,30323,7701.122,863
19946916,04238,2632.394,580
19956932,04853,3521.666,813
19967242,30769,5141.649,768
199742P7,646P25,614P3.22P3,126P

EMPLOYEES INVOLVED IN STOPPAGES

Contributors

  • 14.1 Statistics New Zealand

  • 14.2 Statistics New Zealand.

  • 14.3 Education and Training Support Agency; Career Services; New Zealand Employment Service; Te Puni Kokiri; Community Employment Group; Ministry of Youth Affairs.

  • 14.4 Statistics New Zealand.

  • 14.5 Department of Labour; New Zealand Council of Trade Unions; New Zealand Employers' Federation; Industrial Relations Service: EEO Trust; Statistics New Zealand.

Special articles

Statistics New Zealand; Department of Labour; Student Job Search.

Further information

Employment and Incomes

Employment and Unpaid work and unemployment, 1996 Census of Population and Dwellings. Statistics New Zealand, 1997.

Household Labour Force Survey. Statistics New Zealand.

Labour Cost Survey. Statistics New Zealand.

Labour Market 1997 (tables). Statistics New Zealand.

National Advisory Council on the Employment of Women (NACEW) Annual Report.

Quarterly Employment Survey. Statistics New Zealand.

Report of the Career Services (Parl paper E.27).

Report of the Department of Labour (includes Industrial Relations Service, New Zealand Employment Service. Community Employment Group) (Parl paper G.1).

Work Stoppages Survey. Statistics New Zealand and Department of Labour.

Labour Relations

Contract—The Report on Current Industrial Relations In New Zealand. Department of Labour (quarterly).

Employment—Your Contract, Your Rights, Your Obligations. Department of Labour, 1996.

Holding the balance: A history of New Zealand's Department of Labour, 1891-1995. John Martin, Canterbury University Press, 1996.

Chapter 15. Science and technology

Biological control of old man's beard with leaf miner flies from Switzerland is the subject of research by Land care New Zealand near Mataura.

15.1 Organisation of science

The present approach to the funding and delivery of public 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 focused 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 CRIs.

The science system in New Zealand

Science and technology policy. In 1996 the government adopted three high-level policy goals for research, science and technology. These are:

  • Fostering societal values and attitudes that recognise science and technology as critical to future prosperity;

  • Ensuring an adequate level of investment in science as a component in national life which has cultural value in its own right; and

  • Maximising the direct contribution of science and technology to diverse social, economic and environmental goals.

The government's investment is designed to strengthen the overall national infrastructure for research, science and technology. It aims to ensure the availability of resources, particularly human resources, necessary to conduct effective public and private research and development and to ensure the effective use of technology in enterprises. However, the public investment in science does not overlap with or duplicate private sector investment which directly leads to commercial benefits.

Organisational design. A key element of the far-reaching science reforms undertaken in New Zealand from 1989 to 1992. was the organisational separation of the government's involvement in science and technology policy, science funding and the carrying out of research and development, with the aim of establishing clearer objectives at all levels in the science system. The system is characterised by highly focused operating agencies, with strong, transparent incentives for excellent science performance.

The Ministry of Research, Science and Technology (MoRST) is the primary adviser to the Government on science and technology policy, including advice on science priorities and funding. MoRST is also responsible for gathering and disseminating statistics and descriptive information on research, science and technology activities, administering international science relations at an intergovernmental level, and monitoring Government funding of science. MoRST also provides scientific and technical advice for public policy development and coordinates science funding and activity on topics of national importance, where a range of funding agencies and science organisations are involved.

Rawiri Waru of Rotorua Boys' High School with his geothermal simulator. He was winner of the science section of the 1997 ECNZ National Science and Technology Fair for his glass geyser apparatus which simulates the fluid dynamics of the Whakarewarewa system. The Technology section award was won by Anna Pilbrow of Burnside High School, Christchurch, for her development of a continuous, ready-to-serve hard-boiled egg for the food and catering markets.

The Ministerial Advisory Group (MAGST), with members appointed by the Minister of Research, Science and Technology, provides a consultative forum on issues and policy proposals to do with research, science and technology.

Nga Kaitirotiro Putaiao (Maori Advisory Committee) advises MoRST and CCMAU on Maori issues in relation to the Research, Science and Technology and Crown Research Institute portfolios. It also assists with consultation between MoRST and CCMAU and the Maori community.

The International Science and Technology Advisory Committee (ISTAC) provides the Minister of Research, Science and Technology with strategic advice on New Zealand's international science and technology linkages, and also advises on relative priorities for programme funding from the International Science Linkages Fund.

Crown Company Monitoring and Advisory Unit. CCMAU monitors Crown-owned science entities, advises the shareholding ministers and reviews the performance of the boards of Crown companies including the Crown research institutes (CRIs).

The unit also provides administrative and analytical support for the External Advisors 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.

Science and research funding

New Zealand's research effort is funded by the government, the private sector and the universities. A 1995-96 survey released by MoRST in 1998 showed that the total expenditure for research and development was $689 million, or 0.99 percent of GDP. This a decline from the 1.02 percent in 1993-94.

Government funding

Total public investment in 1996-97 is approximately $520 million (including GST), which is about 0.56 percent of GDP.

The Public Good Science Fund (PGSF) is the government's major investment in strategic science and technology. The PGSF has a value of $282 million in 1997-98 (see separate table).

Public good science and technology is defined as research that is likely to increase knowledge or understanding of the physical, biological or social environment; develop, maintain or increase research skills or scientific expertise that is or are likely to be of particular importance to New Zealand; or which may be of benefit to New Zealand, but is unlikely to be funded from non government sources.

Public good science and technology funds are potentially available through a contestable bidding system to all organisations and individuals involved in research and development.

The allocation of funds is guided by priorities which are determined by the Government after a widely consultative process, involving both scientists and end-users. Priorities are expressed by setting five-year funding targets for broad areas to which the research, scientific services and technology are expected to contribute.

The Marsden Fund is for the support of scientific and technological research which is characterised by excellence, irrespective of topic or research area. In recognition of the artificiality of many of barriers between the academic disciplines, humanities are included in the Marsden Fund from 1997-98. The Marsden Fund for unprioritised science has a value of $11 million in 1996-97 and will rise to $22 million in 1997-98.

The Technology New Zealand scheme helps businesses develop and adopt new technology through three investment programmes:

  • Technology for Business Growth (TBG)—encouraging technological innovation in product and process development and strengthening technology management skills by part funding research projects;

  • TechLink—providing access to local and international technology information sources and advisory services; and

  • Graduates in Industry Fellowships (GRIF)—funding people to research and develop new technologies within businesses.

In the 1997-98 year, investment for the scheme was increased by $4.42 million, to $15,694 million.

Promotion of science and technology

An important element of science and technology promotion is the support of fellowships which enable role models to be recognised and publicised.

The New Zealand Science and Technology Post-Doctoral Fellowships provide early career support for New Zealand scientists, engineers and social scientists of outstanding talent. The fellowships are administered by FORST. Nineteen were awarded in 1996-97 at a total cost of about $2.8 million.

A new programme of Tuapapa Putaiao Maori Fellowships (Maori Science and Technology Fellowships) began in 1996-97. This programme will develop and promote Maori role models in science, technology and engineering research by providing fellowships for suitably-qualified Maori students to undertake postgraduate research. Funding of $300,000 was available for the fellowships in 1996-97 and 15 were awarded. The fellowships are administered by FORST. Funding of $400,000 is available for 1997-98.

The prestigious James Cook Fellowships are awarded annually to senior researchers who have achieved sustained excellence in their respective fields. Five James Cook fellowships were awarded in 1996-97. The RSNZ administers the scheme.

The International Science and Technology Linkages Fund (ISLF) brings together a number of programmes which enhance New Zealand's science and technology linkages. The ISLF programmes are administered by the Ministry of Research, Science and Technology.

Foundation for Research, Science and Technology. The foundation is a statutory authority with an independent board, reporting to the Minister of Research, Science and Technology. It is responsible for almost half of the gross expenditure on research and development in New Zealand, investing approximately $325 million annually in line with broad priorities set by the Government and more detailed sectoral research strategies. The foundation's roles are to:

  • Invest public funds in research and development and human resources.

  • Provide independent advice to the government on science and technology.

  • Encourage technological innovation in industry.

The foundation is responsible for three kinds of funding: the Public Good Science Fund (with seventeen Outputs); Technology New Zealand (the Graduate Research in Industry Fellowship, TechLink, and Technology for Business Growth schemes); and Fellowships (New Zealand Science and Technology Post-Doctoral Fellowships and the Tuapapa Putaiao Maori Fellowships).

The Public Good Science Fund (PGSF) is a contestable pool of funds for research in science and technology. Public good science is defined under the Foundation Act as that which:

  • Increases knowledge or understanding of the physical, biological or social environments.

  • Develops skill bases and expertise important to New Zealand.

  • Generates outputs of future benefit to New Zealand.

  • Is unlikely to be funded adequately from other sources.

The foundation receives applications from Crown Research Institutes (CRIs), research associations, government departments, incorporated societies, non-profit private trusts, private individuals, state-owned enterprises and universities, which compete to win contracts to undertake agreed research programmes that reflect national science priorities. In the 1997-98 financial year the foundation allocated approximately $282 million from the PGSF ($267 million in 1996-97; see separate table). CRIs received $236.2 million ($226.1 million in 1996-97), research associations received $21.9 million ($19.6 million), universities received $18.7 million ($15.3 million) and private organisations received $5.3 million ($4.2 million).

As the foundation was established to invest in research on behalf of the public it places a high priority on research being relevant and useful to the wider community, including those involved in business, the environment and social sector organisations.

Children talk on a “phone” at the Telecom science and technology road show.

At the strategic level, the foundation's research strategies seek to build partnerships with industry and others involved in applying the results of the research it funds. When making purchasing decisions the foundation places a high priority on the relevance of research applications, and considers matters such as the likely benefit to the relevant sector or end users, industry support for research proposals, and the extent and quality of the communication between scientists and users of research. A level of scientific or technological merit acceptable to the foundation must also be demonstrated.

The Health Research Council (HRC) is the crown entity responsible for the purchase of public good health research on behalf of the Minister of Health. The Council, which is appointed by the Minister, undertakes a range of activities which include: the purchase of a broad portfolio of investigator-initiated health research, development of research in the priority areas of child health, mental health and Maori health, support for training of the future health research workforce; and activities which support the infrastructure for health research. Its Internet address is: www.hrc.govt.nz.

Other funding agencies which support the country's research efforts include the Animal Health Board (primarily concerned with the eradication of bovine tuberculosis): the Royal Society of New Zealand (which administers the Marsden Fund and specific fellowship programmes); and the Agricultural and Marketing Research and Development Trust (primarily involved in promoting and encouraging the agricultural, pastoral, horticultural and forestry industries).

Government science agencies

On 1 July 1992 the final organisational changes of government-funded science were put in place with the formation of nine Crown-owned research institutes. (A tenth, the Institute for Social Research and Development, closed in 1994.) 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).

Crown research institutes. The nine autonomous research institutes are 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 Association of Crown Research Institutes (ACRI) co-ordinates inter-CRI activities and administers a number of international arrangements on behalf of the CRIs.

Forest Research (New Zealand Forest Research Institute Limited)—is the principal supplier of research and technology to the New Zealand forestry sector and specialises in plantation forestry research. Its research programmes encompass activities from genetics and plant propagation to forest management, wood processing, product development and pulp and paper. The institute is also involved in a number of environmental research programmes, including developing sustainable forestry practices, devising environmentally-benign processing systems and improving product use, disposal and recycling practices. Increasingly, the emphasis is on multidisciplinary teams to provide an integrated approach to problem solving and new directions.

There are 450 staff, with the main laboratories and headquarters based at Rotorua and a South Island operation at Ilam.

World Wide Web address: www.forestresearch.cri.nz

AgResearch (New Zealand Pastoral Agriculture Research Institute Limited)—provides innovative solutions and opportunities to the food, fibre and biotechnology-related industries based on pastoral agriculture. Established in 1992 as a Government-owned company, it has inherited the research capability that has contributed to New Zealand's reputation as an efficient, low-cost producer of pastoral agricultural products.

The institute aims to develop, acquire and manage intellectual property to enhance New Zealand's international competitiveness. It has research capabilities of international standing in physiology, genetics, biotechnology and environmental impacts on agriculture. Its research has led to the development of new and novel products including food ingredients, health foods and speciality proteins, and pharmaceutical and industry inputs.

The institute has over 1,000 staff distributed between five research divisions: dairy and beef (Ruakura); sheep, deer and equine (Invermay); forage plant improvement (Grasslands); sustainable production (Lincoln); and animal health (Wallaceville).

World Wide Web address: www.agresearch.cri.nz

HortResearch (The Horticulture and Food Research Institute of NZ Ltd)—works in close partnership with New Zealand's horticulture, tree and food industries to develop and enhance their competitive advantage in local and overseas markets. Its research spans molecular biology, plant and tree breeding, crop production, plant physiology, plant protection, post-harvest handling and storage, and the evaluation of consumer preferences.

HortResearch's strategic plan emphasises sustainable management systems for producers supported by research in crop ecology, epidemiology of plant pests and diseases, durable resistance mechanisms, natural control strategies and integrated production systems. HortResearch has a high priority for environmental management both within the institute and in the outcomes of its research.

The Institute of Geological and Nuclear Sciences has donated this 142 million-year-old sea shell fossil to Te Papa.

With 530 permanent science and support staff and up to 150 casual workers in II regional research centres and orchards throughout New Zealand. HortResearch aims to support sustainable production systems, and the purity, safety and customer acceptability of plant-based products. Research covers a large range of crops of economic importance to New Zealand including fruit, cut flowers, forestry, ornamentals and vegetable species.

World Wide Web address: www.hort.cri.nz

NZ Institute for Crop & Food Research Ltd (Mana Kai Rangahau)—conducts research, develops technologies and provides services to improve New Zealand's capability to produce high quality products from field and glasshouse crops as well as from the ocean. Research undertaken for the Crown and for private companies is carried out in close partnership with industry, exporters and growers. Our focus is on safe and environmentally sustainable food production. The skills of the institute's 320 staff have expertise in plant breeding, biotechnology, food technology, nutrition, biochemistry, post harvest technology, agronomy, plant physiology, and pest and disease control.

The institute serves six major sectors: Arable foods, including the sustainable production of food products based on cereals, pulses and new crops; Vegetable foods, sustainable technology for producing, harvesting and processing major vegetable crops, and introducing new crops; Seafood, harvesting, handling and processing seafood; Ornamentals, developing new colour and form and improving production systems; Animal feed, improving feed quality and nutritional value; Plant products, extracting and identifying natural plant products such as bioactive compounds, pigments and essential oils.

World Wide Web address: www.crop.cri.nz

Landcare Research New Zealand Ltd (Manaaki Whenua)—New Zealand's leading environmental research organisation focusing on management of land resources for conservation and primary production. There are 400 staff working at 8 locations throughout New Zealand. Major offices are located on or near university campuses and links with relevant university departments are being strengthened. Smaller sites and field stations are located on campuses with other research institutes.

Science teams are researching all aspects of land resources developing sustainable land use systems, managing weeds and pests, conserving biodiversity, maintaining underlying environmental quality and understanding climate change issues. Attention is given to economic, social and cultural aspects of using land as well as to understanding the ecology of natural and modified environments.

This research benefits all land users, resource managers and policy makers including New Zealand and overseas governments, local and regional authorities, private enterprises, industries, recreationalists and all land owners.

World Wide Web address: www.landcare.cri.nz

Institute of Geological and Nuclear Sciences Ltd—is New Zealand's leading supplier of earth and isotope scientific research and consultancy services. As well as public good research, activities include resource evaluation for the petroleum exploration industry, assessment and mitigation of natural hazards, geological mapping, engineering geology, geophysical surveys, assessment and development of geothermal fields, assessment of groundwater quality and quantity, environmental chemistry, and the application of isotope sciences to age dating and to industrial, medical and environmental studies.

The institute has a 130-year history of excellence in earth sciences. It has 250 staff and its library and fossil collections are of national importance. It has four science groups covering its core businesses of—Hazards & mapping. Resources, Isotope sciences, and Information services. It has offices at Wellington, Wairakei and Dunedin.

The institute's research, consultancy and commercial services benefit a wide range of private sector companies and government organisations in New Zealand and overseas. To strengthen effectiveness the institute has developed many partnerships with private sector companies, SOEs, universities, and international research organisations.

World Wide Web address: www.gns.cri.nz

Industrial Research Ltd—IRL's mission is to be New Zealand's leading provider of scientific and technological research and development in the processing, manufacturing and energy industries.

The company has 370 staff and is located in Auckland, Wellington and Christchurch.

Through research partnerships, Industrial Research helps companies to position themselves at the leading edge of their market.

Adding value to natural and manufactured products is a central thrust of research, together with the introduction of advanced, efficient production technologies.

Industrial Research's energy and electrotechnology activities contribute to the long-term development of a sustainable and efficient energy infrastructure as well as providing cost effective electrotechnology solutions for commercial partners.

World Wide Web address: www.irl.cri.nz

NIWA Taihoro Nukurangi (National Institute of Water and Atmospheric Research Ltd)—conducts research and provides related services required to give a scientific basis for the sustainable management of New Zealand's atmospheric, marine and freshwater systems and associated resources. The principal focus is on New Zealand and its territorial waters. However, NIWA has a growing interest in international projects. Environmental consultancy work is carried out in Asia and the Pacific, and involvement in the atmosphere and ocean is on a global scale.

NIWA has 580 staff with a wide discipline base covering atmospheric physics and chemistry, river hydrology, hydraulic engineering, oceanography, marine fisheries, marine and freshwater biology and sedimentology. Staff are committed to cross-disciplinary work for many research and applied science consultancy projects.

World Wide Web address: www.niwa.cri.nz

Institute of Environmental Science and Research Ltd—ESR provides science-related research and analytical and consulting services in public health, environmental health and forensic sciences to the public and private sectors in New Zealand and the Asia-Pacific region. In 1995 ESR established ESR Malaysia, a joint venture in environmental health training and consultancy, with local Malaysian partners.

ESR employs 320 staff who work from 5 science centres around New Zealand—the Mt Albert and Mt Eden Science Centres in Auckland, the Wellington Science Centre, the Christchurch Science Centre, the Kenepuru Science Centre in Wellington—and a corporate centre in Wellington. Each science centre is equipped with advanced technologies and information systems to support teams of nationally and internationally recognised scientists.

The Royal Society of New Zealand (RSNZ) is an independent, statutory body incorporating the national academy of science and technology, and a constituency of scientific and technological societies, regional societies, Fellows, and individual Members. The society includes the fundamental, applied and human dimensions of the biological, earth, engineering, mathematical, medical, physical, social and technological sciences. The society has the statutory responsibility to foster a culture supportive of science and technology in New Zealand and to initiate appropriate international linkages. It provides considered, expert advice on important public issues to the government and the community.

The society advances and promotes science and technology in New Zealand, recognises and encourages excellence in research, establishes ethical standards, supports science and technology education, publishes scientific journals, reports and education resources. It encourages professional development through research grants, fellowships, awards and prizes. Established in 1867 as The New Zealand Institute, the society is incorporated under The Royal Society of New Zealand Act.

The Internet home page is: Gateway to NZ Science http://www.rsnz.govt.nz/

Recent developments are:

  • The Marsden fund, set up by the Government to finance excellent, non-prioritised research has been set up with six assessment panels dealing with agricultural and life sciences; biochemical and biomedical science: earth sciences and astronomy; mathematical and information science, physical sciences and engineering, and social sciences. A further area is to be added, that of the humanities. Monitoring processes are being set in place to assess the contracts awarded. During 1997 the size of the fund will increase from $11 million to $22 million.

  • The International Centre for Antarctic Information and Research (ICAIR), a division of the Royal Society, has consolidated a Global Resource Information Database “GRID-Christchurch” a component of the United Nations Environmental Programme “UNEP-GRID”. There is a close association with GRID-Arundel in Norway.

  • Standing committees have been established for primary production, geosciences, astronomical sciences, Antarctic science, environmental science, marine sciences, social sciences, mathematical and information sciences, education, promotion of science, geosphere-biosphere, climate, energy and biodiversity.

  • The Code of Ethical Practice is now in place.

  • Strong emphasis has been given to the promotion of science and technology. This has included maintaining relations with the New Zealand Association of Science Educators, the Association of Science and Technology Centres of New Zealand, the Telecom Technology-Science Roadshow and ECNZ. Strong inputs into science curriculum development have taken place.

  • The administration and selection of science and technology teaching fellows and the Captain James Cook fellows are now well established processes. One science teacher fellow is working at ICAIR in Christchurch and has established the “Linking Education with Antarctic Research in New Zealand" (LEARNZ) programme at ICAIR.

  • Support has continued for the Australian and New Zealand Council for the Care of Animals in Research and Teaching (ANZCCART) and the Government's National Science Strategy Committees for Climate Change and Possum/Bovine Tb.

  • Strong support has been provided for international science relations including the International Council for Scientific Unions and kindred organisations.

  • The society has maintained its production of high quality science and technology publications. Further streamlining followed formal reviews of the journals in 1996. These reviews examined the journals for both continued relevance, cost and the possibility of rationalisation.

Other organisations contributing to research

A number of other research organisations are active in New Zealand which have not been referred to already. These include the Cawthron Institute, the Carter Observatory, the Agricultural Engineering Institute at Lincoln University and the Museum of New Zealand Te Papa Tongarewa.

Carter Observatory. The Carter Observatory was established by Act of Parliament in 1938 and is named after Charles R. Carter, a prominent pioneer in Wellington and the Wairarapa. The act was amended in 1977 to recognise the Carter Observatory as the National Observatory of New Zealand.

The Wellington-based observatory has a full-time equivalent staff of 13.5. plus six specialist honorary consultants and ten honorary research associates. It has four distinct functions: astronomical research, astronomical education, public astronomy and heritage preservation.

In 1998 research emphasis was on improving our understanding of the ways in which galaxies, star clusters and stars are formed and evolve. Some of this was funded through a Marsden grant and formed part of the MOA Project, a major collaboration between astronomers at the Carter Observatory, universities in Auckland, Wellington, and Christchurch, and seven Japanese institutions. One of this group's main research was the search for dark matter in the universe. Other research by staff was on asteroids, astronomical optics and the history of astronomy.

The observatory has a three-year government contract to provide support for the astronomy strand in the science curriculum. It offers programmes for visiting school groups; resource booklets and a video on cosmology as viewed from a Maori perspective; special workshops for teachers; five different evening courses leading to a Carter Observatory Diploma of Astronomy; special school holiday programmes; and “Overnight Extravaganzas" (when groups of children and accompanying adults sleep-over at the observatory).

Through government and local body contracts, the observatory also caters for the information, recreation and leisure needs of New Zealanders and overseas tourists. It manufactures its own planetarium programmes, audio-visual shows and displays; offers a public information service in astronomy; broadcasts a monthly radio programme; produces a monthly newsletter and a range of information leaflets: offers annual Carter Memorial Lectures throughout New Zealand; and maintains a Web site (http://www.vuw.ac.nz/~bankst/carter.html). “Public nights” are held three times a week.

As the national repository for astronomical heritage, the observatory has collections of instruments and archives relating to important New Zealand amateur and professional astronomers. Staff have also been involved in the restoration of the Thomas King Observatory, one of the earliest observatories in the Wellington Botanic Garden.

Cawthron Institute, one of two private scientific research establishments in New Zealand, was established under the Thomas Cawthron Trust Act 1924. Operations are based in central Nelson, with an aquaculture facility near the city. There are 90 staff. Its testing laboratories are IANZ (formerly known as Telarc) registered, and accredited by the US FDA for shellfish testing.

Cawthron undertakes research into marine and freshwater microbiology and ecology, largely funded from the contestable Public Good Science Fund. It provides commercial services to the seafood industry; environmental consultancy services to resource managers and users; and analytical and microbiological laboratory services for monitoring and quality control to a wide range of client groups.

Cawthron's Consulting Group specialises in coastal, estuarine and freshwater science, with a focus on resource management issues. Areas of work include resource surveys and impact assessments, such as, impacts of discharges and land-use impacts to the aquatic environment; baseline surveys and monitoring of coastal and freshwater environs; and impacts of dredging, spoil disposal and reclamation in coastal areas. Cawthron also offers environmental management services such as, options for coastal and freshwater areas; oil spill contingency planning; habitat restoration; and the development of effluent water standards for discharges.

A BBC television news item filmed at Otago Museum about moa DNA experiments will give international exposure to Dunedin science.

Massey University scientist checks milk samples with biodynamic farmer. Organic farmers say their herds have less mastitis than on traditional farms.

Cawthron scientists work with Shizuoka University in Japan on research into natural products and pharmacology. Research relating to toxic algae blooms has resulted in a close relationship with researchers at Tohoku University in Sendai, Japan. Aquaculture continues to be a major focus for Cawthron scientists. In 1997 Cawthron began a two-year project to examine the impact and sources of introduced species. 1998 has seen the formation of a joint venture between Cawthron and Battelle of Duxbury, Mass USA. to examine the efficiency of ballast water exchange practices in shipping.

Cawthron's website can be accessed at: http://www.cawthron.org.nz

The Malaghan Institute of Medical Research is the other private scientific research organisation (see Chapter 8).

Government departments carry out research and development to support their own activities. This includes research which supports the development and effective implementation of policy. Departments with substantial internal research capabilities, some of which also purchase external research, include the New Zealand Defence Force; Department of Conservation; Ministry of Agriculture and Forestry; and the Ministry of Fisheries.

Universities and polytechnics offer a wide range of tertiary education studies, which includes science in all cases and aspects of technology in most. As well as this education and training function, the 7 universities carry out basic and strategic research and make substantial contributions in applied science and technology fields. Several universities also have formal links with CRIs. There are 26 polytechnics in New Zealand that offer certificate and diploma courses in a variety of subjects related to science and technology such as building, engineering, manufacturing, software engineering, agriculture, horticulture, forestry and viticulture.

Research associations. Research associations are non-governmental, industry-linked institutions. They provide capabilities in research and technology transfer which individual companies in the sector may not be able to justify. A key goal of those research associations involved with the primary export industries is to improve the marketability and added value of products from New Zealand's farms and forests.

The 10 research associations are:

  • Wool Research Organisation of New Zealand.

  • Coal Research Association of New Zealand.

  • Building Research Association of New Zealand.

  • Cement and Concrete Association of New Zealand.

  • New Zealand Dairy Research Institute.

  • Heavy Engineering Research Association.

  • New Zealand Leather and Shoe Research Association.

  • New Zealand Logging Industry Research Association.

  • Meat Industry Research Institute of New Zealand.

  • Research Institute of Textile Services.

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, eg the New Zealand Council for Educational Research (see Chapter 9) and the New Zealand Institute for Economic Research (Inc) (see separate article); commercial market research firms, private research consultancies and research or analysis units within private enterprises; and voluntary agencies.

15.2 Technology services

Patents, trade marks and designs

The Intellectual Property Office of New Zealand is the trading name of the New Zealand Patent Office, which is part of the Ministry of Commerce. The office's mission is to contribute to the prosperity of New Zealand by:

  • granting legal protection to industrial property under the Patents, Trade Marks, and Designs acts

  • making information available to the public about patents, trade marks, designs and geographical indications.

The main function of the Intellectual Property 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).

Law reform. The government is currently considering reforms to the intellectual property rights statutes. Maori have indicated they have concerns with the current intellectual property rights system and the government is, therefore, consulting with them as part of the reform process.

Table 15.1. APPLICATIONS FOR PATENTS, TRADE MARKS AND DESIGNS

Year ended 30 JunePatentsTrade marksDesigns

Source: New Zealand Patent Office

19933,6438,720690
19943,19710,258652
19954,50312,325807
19964,80013,291881
19975,23014,998903

Patents. The owner of an invention in any country may apply to patent it under the New Zealand Patents Act 1953. A patent grants the owner the exclusive right to exploit the invention commercially in New Zealand for a maximum of 20 years. After the patent expires, anyone may make use of the invention.

The Patent Office library holds a comprehensive collection of patent specifications from a number of countries. It receives newly-published patents from New Zealand and the other industrialised countries on paper. CD-ROM. microfilm and microfiche. Available to the public, these patents describe the latest advances world-wide in every field of manufacture and have the potential to save New Zealand manufacturers substantial amounts of time and money in research and development. The library has over 8 million documents, a growing number now on CD-ROM.

During the year 3,939 applications proceeded to acceptance after search and examination, and Letters Patent were sealed on 2,955 applications.

Trade marks. The owner of a trade mark in any country may apply to register it under the New Zealand Trade Marks Act 1953 for any lawful product or service. Once the mark is registered the owner has the exclusive right to use it in New Zealand for the goods or services covered by the registration. If anyone else copies a registered mark without permission the owner has a quick and simple legal remedy. Trade marks may remain registered indefinitely by the payment of a renewal fee from time to time.

Trade mark applications in the year ended June 1997 were filed from the following countries: New Zealand 5,718; United States 3,367; Australia 1,546: United Kingdom 947; Germany 452: Japan 331; France 318. There were 2,319 applications from other countries.

Anyone proposing to use a trade mark in New Zealand may, for a small fee, commission the office to search its records and report if someone else has already registered a similar mark. Anyone thinking of applying to register a trade mark may, for a fee, request an official opinion on whether it is eligible for registration.

The trade mark library has public records of New Zealand registered trade marks and pending applications. Visitors to the library may search the records and make photocopies of them for a nominal charge. The trade mark database is also searchable on the Internet at http://www.iponz.govt.nz

During the year 28,329 applications were examined, 22,178 were advertised and 15,619 were registered.

Designs. The owner of an industrial design (an artistic shape or surface pattern on a manufactured article) in any country, may apply to register it under the New Zealand Designs Act 1953. Registration protects the design from unauthorised copying in New Zealand for a maximum of 15 years.

Applications for design registration numbered 903 in the year to June 1997, an increase over the 881 in 1996. The principal countries from which applications were filed in 1997 were New Zealand, the United States and Australia.

The office maintains a public register of designs from which anyone may search and copy for a nominal charge.

Other intellectual property rights

Layout designs. The Layout Designs Act 1994 provides protection for the designs of integrated circuits. The act protects layout designs from unauthorised copying in New Zealand for a period of up to 15 years.

Geographical indications. The Geographical Indications Act 1994 is not yet in force. It is anticipated that this will occur in 1998. A geographical indication is a description used on goods to indicate the origin of the goods. Under the act any person may apply to the Surveyor-General to register a geographical indication. Registration of a geographical indication prevents anyone using that geographical indication, on goods specified under the act, which do not originate from that origin. It is expected that many geographical indications will be registered as part of multilateral and bilateral trade agreements with New Zealand's trading partners.

The Patent Office will maintain an electronic register, open to the public, of geographical indications protected under the act. with details of the boundaries they apply to.

Telarc

Telarc provides assessment and recognition services for management systems. It operates from five locations throughout New Zealand—Auckland, Hamilton, Tauranga, Wellington and Christchurch.

Recognition services. Telarc provides recognition of achievement to quality and environmental management systems to the following standards.

Quality Management Systems certification to the ISO 9000 series of standards, QS 9000 and TQS1. Telarc has provided ISO 9000 certification service since 1983, being the first organisation in New Zealand to achieve formal accreditation by JAS-ANZ (Joint Accreditation System—Australia and New Zealand).

Telarc Q-Base—a basic, entry-level management system, based on the ISO 9000 series of standards. Telarc Q-Base identifies the basic quality management disciplines essential for managing the quality of small to medium size enterprises.

Environmental Management Systems certification to ISO 14001 standards. Telarc has provided this service since 1994 and was the first organisation in New Zealand to be accredited by JAS-ANZ to certify ISO 14001 standard, in 1996.

Assessments. Telarc provides assessment services for a wide range of management systems including: Quality, Environmental, Quality Award Criteria, Health and safety, Risk management, Food safety, Rail safety.

Training. Telarc works in close association with the New Zealand Quality College to provide training courses to promote excellent management system practice.

International Accreditation New Zealand

International Accreditation New Zealand (IANZ) is the accreditation service of the Testing Laboratory Registration Council. It is a user-funded statutory body responsible for ensuring technical professional service standards are met in New Zealand's industrial, scientific, commercial, regulatory, health care and administrative sectors. All laboratories, radiology services and inspection bodies previously registered with Telarc New Zealand are now accredited by IANZ.

Conformity assessment.Laboratory accreditation—assessing the technical competence of testing, measurement and calibration laboratories in all fields of science and technology, including: biological, chemical, dairy, electrical, gas cylinder, mechanical, medical, physical and wool testing; and metrology and calibration.

Inspection body accreditation—provides formal recognition that an inspection body or food safety assessment body is capable of meeting standards of quality, performance, technical expertises and competence.

Radiology service accreditation—providing radiology services with formal recognition of their skills, expertise, competence, systems, procedures and facilities based on independent, peer group assessment.

Pharmacy accreditation—providing pharmacies with formal recognition of their skills, expertise, competence, systems, procedures and facilities based on independent, peer group assessment.

Good Laboratory Practice—the New Zealand Government has designated IANZ as the Compliance Monitoring Authority in New Zealand for the OECD Principles of Good Laboratory Practice. This programme is relevant to research laboratories undertaking non-clinical safety trials for new veterinary pharmaceuticals and agricultural chemicals.

CE Marking—the government has appointed IANZ as the “Designating Authority” for Conformity Assessment Bodies approved as competent to undertake testing or inspection against European

The International Cape Roberts Project drilling rig on Ross Sea ice sheet.

Directives for CE marking purposes. This appointment is under the New Zealand/European Union governmental Mutual Recognition Agreement.

Environmental Choice NZ—a voluntary environmental labelling programme initiated by the government to help consumers identify products that ease the burden on the environment. To carry the Environmental Choice Label, a product is assessed against specifications that comply with standards being developed internationally. IANZ manages and operates the programme under an agreement with the Minister for the Environment.

International. IANZ represents New Zealand in international conformity assessment fora and maintains close liaison with similar national organisations overseas. It currently has formal Mutual Recognition Agreements with the national accreditation authorities in Australia. Austria. Belgium. Chinese Taipei/Taiwan, Denmark, Finland. France, Germany, Hong Kong, People's Republic of China, Ireland, Italy, Netherlands, Norway, Portugal, Singapore, Spain, South Africa, Sweden, Switzerland, United Kingdom, and United States of America.

Training. The New Zealand Quality College is the training division of IANZ and provides training in association with IANZ and Telarc Limited, together with a select number of organisations recognised as national experts in their fields. The college is registered as a Private Training Establishment with the New Zealand Qualifications Authority.

Standards New Zealand

Standards New Zealand (SNZ) is the national body responsible for co-ordinating the development of standards. It is the trading arm of the Standards Council that operates under the Standards Act 1988. Its aim is to develop partnerships with the business community and the government, to advance national prosperity by harnessing quality and technology through the development of efficient and effective standards.

The principal services of Standards New Zealand are:

  • Standards development and design

  • Sales of all standards and information services

  • World Trade Organisation (formerly GATT) enquiry point

  • Supplying specialist advice concerning overseas standards, regulations, codes of practice and testing and approval procedures in foreign markets

  • Training and seminars on a range of topics such as environmental and quality management.

Unlike most standards bodies, Standards New Zealand receives no direct funding from the government. It is reliant on membership subscriptions, the sale of standards, certification services and contracts for service (with various industries, government departments, local bodies and businesses) for all its income.

In early 1998 Standards New Zealand sold its systems and product certification services division to Bureau Veritas Quality International.

The full text of all New Zealand Standards and Joint Australian/New Zealand Standards was released on CD-ROM in April 1996.

SNZ's website address is www.standards.co.nz

Contributors

  • 15.1 Ministry of Research, Science and Technology; Crown Company Monitoring and Advisory Unit; Foundation for Research, Science and Technology; Association of Crown Research Institutes and individual CRIs; Royal Society of New Zealand; Cawthron Institute; New Zealand Institute of Economic Research.

  • 15.2 Intellectual Property Office; Ministry of Commerce; Telarc Limited; Standards New Zealand.

Special articles

Royal Society of New Zealand; Ministry of Research, Science and Technology.

Further information

Patent Co-operation Treaty: Basic Information and Procedure. Intellectual Property Office of New Zealand.

Patent Office Journal. Intellectual Property Office of New Zealand (monthly).

Report of the Commissioner of Patents, Trade Marks & Designs (Parl paper G.14).

Report of the Foundation for Research, Science and Technology. (Parl paper G.53).

Report of the Ministry of Research, Science and Technology (Parl paper G.50). Report of the Standards Council (Parl paper G.15)

Report of the Testing Laboratory Registration Council of New Zealand (Parl paper G.31) Standards. Standards New Zealand (monthly).

The Intellectual Property Office publishes several booklets to assist registration of patents, trade marks and designs. The information is also available on the Internet at www.iponz.govt.nz.

The Foundation for Research, Science and Technology publish a number of discussion, occasional and position papers. Its Internet address is www.frst.govt.nz.

Technology New Zealand has a web page site at www.technz.co.nz.

The Royal Society of New Zealand has World Wide Web pages Gateway to New Zealand Science under the home page address www.rsnz.govt.nz

Chapter 16. Land and environment

Little Barrier Island's only known chevron skink, found in 1992.

16.1 Land resources and ownership

Land Information New Zealand

Land Information New Zealand (LINZ) was established on i July 1996 and took over the responsibility for the policy, regulatory and core government service delivery functions of the former Department of Survey and Land Information (DOSLI), the Land Titles Office, and for the purchase of hydrographic services from the New Zealand Defence Force (to be made contestable from 1 July 1998). From July 1998, as part of the restructuring of Valuation New Zealand, the Office of the Valuer-General is established within LINZ.

LINZ advises the government, administers the Crown's interests in land and makes government-held land information available to the public. It is the government spatial referencing authority, and the steward and standard setter for core national land databases including: the spatial referencing system, cadastral system, land titles, topography, hydrography, Crown property (excluding the conservation estate) and valuation.

The department has two broad focuses:

  • policy and regulatory responsibilities and standards for land-related and seabed information.

  • direct services to the public such as the state-guaranteed issue of land titles, availability of land information and approval of survey plans.

Specifically, LINZ undertakes to:

  • provide expert advice to the Government on land-related laws and policies

  • provide a secure environment for buying, selling and subdividing property

  • administer the Crown's interests in land through the acquisition, disposal, and administration of Crown land and the management of Crown land liabilities.

  • assist the Government and its agencies address Treaty of Waitangi issues through the provision of information on land history and status.

  • ensure New Zealand has high quality databases for its survey, topographic, hydrographic and property activities.

The main acts administered by Land Information New Zealand are: the Crown Grants Act 1908; Deeds Registration Act 1908: The Hunter Gift for the Settlement of Discharged Soldiers Act 1921; Land Act 1948 and regulations; Land Transfer Act 1952 and regulations; New Zealand Geographic Board Act 1946; Public Works Act 1981 (Parts II to VI and VIII) and regulations; Various Reserves and Other Lands Disposal Acts; Survey Act 1986 and regulations; and the Unit Titles Act 1972. The Chief Executive has statutory functions under the Public Works Act relating to the disposal of surplus land. More than 450 other statutes give Land Information New Zealand specific responsibilities for land transactions.

Terralink

Terralink NZ Limited is a State-owned enterprise which acquired the commercial functions of DOSLI. It works in three units, from 16 centres around New Zealand.

Geospatial Solutions. Terralink has a wide range of customised products and consultancy services in cartography, remote sensing, photogrammetry and GIS applications development, and provides a national coverage of digital land information products. These include the delivery of data, in a variety of formats, sourced from the Digital Cadastral Database (DCDB) and Digital Topo Database (DTDB). Terralink also captures and converts topographic data for the production of New Zealand's national topographic map series at a scale of 1:50,000, and produces orthophotos—computer enhanced photographs with the scale accuracy of maps.

Terralink has also developed customised software including: Terramatch matching the survey and title data from Land Information NZ, valuation data from Valuation NZ and, where available, the Maori Land Courts block data. This product is now used by most local government councils to link their land tax systems with GIS town planning systems; Terraview making the Land Information NZ cadastral mapping data available to users, which can be customised to include other map attribute data, and Tenanet providing on-line access to a number of land-related databases either through an index containing a record of corresponding parcel-based records or through a GIS user interface.

Geospatial Solutions is using satellite imagery to develop a Land Cover Datatbase (LCDB), a detailed classification of land use throughout New Zealand, and also provides agency services for SPOT satellite imagery.

Survey Services is New Zealand's largest survey organisation with 16 offices around the country It offers services in geodetic control surveying, seismic and engineering project surveys, land development surveys, cadastral and topographic surveys, international border demarcation, Global Positioning Systems (GPS) surveys, precise measurement and levelling, data capture of asset positions, specialist surveys such as scene-of-crime or accident surveys, airport obstruction surveys, and small scale aerial photography and graphics Survey Services carries out national and local control survey work to enhance New Zealand's survey control network, the extension of the co-ordinate and height datum, tidal prediction services, photo control and control for developments Inspection and maintenance of bench marks and beacons are part of ongoing contract work on behalf of the Crown.

Terralink Property Services specialises in acquisition and disposal of land and is an accredited agent for the Crown to facilitate public land acquisitions and disposals under the Public Works Act A Map Centre in Upper Hutt distributes maps, and houses the international map library.

Surveying, mapping and land information

Surveying Infrastructure. New Zealand's survey system provides for the reliable definition of the position of rights and interests in land, for all land tenures i.e. Crown, Maori, and freehold land.

Spatial definition is based on a national network of trig stations This network is connected to a global reference framework to support the use of modern positioning technology It provides the spatial framework for integrating other land information and national mapping This includes the positional base for property boundary surveys, administrative boundaries (eg electoral districts), land development, resource management, marine licences, location of utilities, engineering and construction projects, communications, map production, scientific studies, the location of marine and air navigation aids both nationally and internationally, and the determination of New Zealand's national and economic zone boundaries.

Land Information New Zealand (LINZ) manages the cadastral survey system The extent, location and boundaries of rights and interests in land are clearly and permanently defined and documented by registered cadastral surveyors in the private sector They submit evidence to the department for validation against existing records LINZ maintains registers of new rights and interests in land and undertakes checks to ensure that these do not conflict with existing rights, and that no overlaps or gaps exist between boundaries This ensures certainty and security as to the extent of land interests, irrespective of tenure.

A computerised spatial database (Digital Cadastral Database, or DCDB) is maintained to facilitate custody of, and enable ready access to, these extensive land records.

Aerial photography

Extensive use is made of aerial photography to support the revision of New Zealand's national mapping programme.

Land Information New Zealand holds and maintains a national air photo library which provides a comprehensive national source of land information data that is available to the public Terralink New Zealand Ltd also receives and holds multi-spectral imagery collected by earth resource satellites.

Topography and hydrography

The topographic database which consists of 1 50,000 and other core topographic maps (including maps of the Pacific and Antarctic), the digital topographic database, and Crown copyright aerial photographs, provides a reliable and authoritative record of New Zealand land form and its features This topographic information is used for planning, construction, development, environmental assessment, local government administration, emergency services, search and rescue, and defence purposes.

The National Topographic/Hydrographic Authority within Land Information New Zealand (LINZ) purchases topographic and hydrographic services from accredited suppliers.

Responsibility for hydrography has recently been transferred from the Royal New Zealand Navy to LINZ An Officials Hydrographic Information Advisory Group determines the priorities by which information is required In determining the programme the group considers issues such as safe navigation, exploitation of resources, making New Zealand waters available for recreation, as well as search and rescue and emergency needs (such as charts for oil spills).

Registration of land ownership

Almost all privately owned land in New Zealand is held under the land title system, as embodied in the Land Transfer Act 1952 All property rights are derived from the Crown and title to land in private ownership is a matter of public record.

The creation of new rights and termination of existing rights in land, providing certainty of title to interests of land with a state guarantee, is the function of Land Information New Zealand (LINZ), as is the keeping of title records.

The outcomes of LINZ's title services are primarily:

  • to provide state-guaranteed certainty of title to land; and

  • to provide and maintain the Torrens Land Title System.

New Zealand is divided into 12 Land Registration Districts. Each district has a Land Registry Office responsible for recording transactions affecting the land in that district. A Certificate of Title to a piece of land is the basic record of transactions concerning that land. It provides:

  • the legal description and diagram of the land

  • all owners, both current and historic

  • a summary of registered legal documents concerning the land.

Documents listed on a Certificate of Title may include mortgages, leases, various types of charges, and rights and restrictions which affect the land in some way. Certificates of Title and the documents listed on them are held in the Land Registry Office in the district where the land is situated and are available for public search. Alternatively, copies of Certificates of Title and documents and progress reports on unregistered documents can be ordered from the Land Title Link. This 12-hours-a-day, on-line service allows customers to access the Land Titles Database from their own office and request search copies.

Table 16.1. LAND TRANSFER DOCUMENTS PROCESSED

Year ending 30 JuneInstruments receivedCertificates of titlePlans lodgedGuaranteed searchesTitle searchesDocument searchesDatabase searchesPlan searches

Source: Land Information New Zealand

1992819,01550,33416,06593,125966,078263,045--
1993775,63142,05114,11499,211936,805258,389--
1994863,74342,94716,019137,7131,024,426282,0133,378,87316,077
1995873,88348,83917,726145,773982,846273,7844,878,01740,068
1996925,26350,66516,462182,3941,048,717287,3945,927,28646,050
1997859,16263,01218,995184,995948,565257,638..47,884

Table 16.2. MARKET SALES OF FREEHOLD RURAL LAND

Half year endedNo. of salesTotal sale price S(million)Index number1Percentage change from previous half year

1Base (=1000) half year ended December 1989.

Source: Valuation New Zealand

Jun 19922,392735.41300+10.1
Dec 19921,951514.41358+4.5
Jun 19932,546952.91601+17.9
Dec 19931,510469.21696+5.9
Jun 19942,2161,018.61988+17.2
Dec 19941,393556.22073+4.3
Jun 19952,0131,094.12270+9.5
Dec 19951,153483.02295+1.1
Jun 19962,0061,133.92,323+1.2
Dec 19961,121452.72,334+0.5
Jun 19971,365635.02,272-2.7
Dec 19971,023411.52270-0.1

Endangered species? Ruakura scientist with Lady, the last Auckland Island cow, February 1997.

Acquisition of New Zealand land by overseas parties

The Overseas Investment Regulations 1995 repealed the provisions of the Land Settlement Promotion and Land Acquisition Act 1952 (LSP Act) and amended the Overseas Investment Regulations 1985 governing the acquisition of New Zealand rural land by overseas parties. The regulations provide a more liberal approach and set clearer criteria for consent, either by a joint ministerial decision from the Treasurer and Minister of Lands, or by the Overseas Investment Commission, under delegated authority.

The regulations among other things:

  • define land transactions that will normally require joint ministerial consent. These include transactions for land:

    1. exceeding five hectares in area

    2. on offshore islands (specified in the regulations) that exceeds 0.4 hectares in area

    3. exceeding 0.4 hectares in area that is on, includes or adjoins foreshore, certain-sized lakes, or land provided as reserve, or is an historic place or is conservation land

    4. over $10 million in value.

Where land is to be used for agricultural purposes, the applicant's planned use and whether it is for experimental or research work will be taken into consideration. Where persons wish to farm the land individually, their capacity to do so will also be material while consideration is given to any attention to reside permanently in New Zealand. Additionally, the applicant is required to demonstrate that the acquisition makes material contribution to the regional or national economy.

  • stipulate the need for applicants:

    1. to have relevant business experience and acumen

    2. to demonstrate a financial commitment to the overseas investment.

  • require that the following “national interest” benefits accrue:

    1. creation of new job opportunities in New Zealand or retention of existing jobs

    2. introduction of new technology or business skills

    3. development of new export markets and the introduction of new capital to New Zealand

    4. promotion of competition, efficiency, productivity and processing of primary product in New Zealand and enhancement of domestic services.

  • provide for requisition of information from applicants where evasion or non-compliance with the regulations is suspected

  • provide for the joint consents of the Treasurer and Minister of Lands or for the revocation of consents where appropriate.

The Overseas Investment Commission administers the legislation while Land Information New Zealand provides technical assistance to the commission and ministers.

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: Te Kooti Whenua Maori. The purpose of the Maori Land Court is to contribute to the administration of Maori land, the preservation of taonga Maori, and to promote 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 is in the process of developing an Information System Strategy. This recommends implementation by way of two separate programmes:

  • 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 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 court records to image, either traditional, microfiche or electronic, allowing for the transfer of these valuable documents to the National Archives.

Table 16.3. LAND ADMINISTERED BY MAORI LAND COURT1

Maori Land Court districtsSurveyed blocksTotal blocks administered
199519961997199519961997

1As at 30 June.

Source: Maori Land Court

Whangarei3,1963,2443,2475,2005,2635,268
Hamilton1,0571,0591,0593,4653,4653,465
Rotorua3,1093,1203,1374,8174,8404,852
Gisborne2,8662,8242,8755,0755,0795,090
Hastings1,1131,1131,0381,2681,2681,288
Wanganui3,3603,3813,3893,7653,7663,766
Christchurch1,3401,3401,3401,7091,7091,709
        Total16,04116,08116,08525,29925,39025,438

Maori land development. Former government programmes aimed at the development of Maori land have largely been concluded, and Te Puni Kokiri encourages administration of Maori land by Maori landowners.

A significant proportion of the more than 2 million ownership shares in Maori land are believed to be held by deceased or absentee owners. This hinders decision-making and utilisation of Maori land as well as making it more difficult for the Maori Land Court to ascertain the wishes of the owners when a proposal comes before the court for approval or confirmation.

To help address some of these issues the Department for Courts and Te Puni Kokiri jointly commenced a Maori land owner education strategy during 1997: to provide relevant information to Maori land owners through the publication of booklets, to raise awareness through publicity and to facilitate the development of training courses for trustees of Maori land blocks. Two booklets A Guide to Succession and A Guide to Maori Land Trusts have been published and three more are in preparation.

The Department for Courts has made it a strategic goal to make the services of the Maori Land Court, in particular the provision of title and ownership information, easily accessible to Maori.

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 Forests Act 1949. Significant reconstruction of the public sector commenced in 1987, including the reorganisation of the government's environmental and public works administrations. Much of the Crown's commercial or productive land was subsequently transferred to state-owned enterprises. Land remaining in Crown ownership is administered by:

  • service delivery departments where the land is required for the running of the business

  • the Department of Conservation in the case of Reserves etc.

  • Land Information New Zealand (LINZ) in the case of residual Crown-owned lands

Lands administered by Land Information New Zealand. LINZ is responsible for the administration and eventual disposal or alienation of residual Crown-owned lands pursuant to the:

  • Land Act 1948 and various endowment acts, comprising unalienated Crown land (2,890 properties), Crown pastoral leasehold land (393 properties), and other Crown leasehold land (82 properties) and endowment leases (102 properties);

  • Crown Forests Act 1989, comprising Crown forest land over which Crown forest licences have been issued (99 properties);

  • Public Works Act 1981, comprising land no longer required to be held by the Crown for the public work purpose for which it was acquired, including hydro-electric power development, post offices, public works depots and government office accommodation (383 properties);

  • Railways Corporation Restructuring Act 1990, comprising land no longer required for railway operations (2,169 properties).

The department is managing the process and policy for the review of 2.4 million hectares of South Island High Country Crown pastoral leasehold land. The process involves public consultation and a related land use review. This tenure review process results in significant conservation and freeholding outcomes providing opportunities for better land use and sustainable land management objectives.

All Crown forest lands, and a significant number of the other lands administered by the department, 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 department also administers an estimated 150 property-related liabilities such as contaminated sites, subsidence areas and residual accommodation leases.

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, forest parks, world heritage areas, 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 16.3 National parks and reserves.

Land Corporation. Land Corporation Limited (Landcorp) commenced business as a state-owned enterprise 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. It now operates completely in the private sector. Landcorp has two main operating subsidiaries, Landcorp Farming and Landcorp Investments.

Landcorp Farming is responsible for farming operations involving some 1.5 million stock units on 125 properties spread throughout New Zealand. The company is also involved in animal breeding schemes covering a wide range of animal species, and provides research development, marketing and limited processing to enhance profitability and support its products in the market.

Landcorp Investments is responsible for some 1,227 leases, licences, and freehold land properties taken over from the Crown.

Landcorp's head office is in Wellington. There are regional offices in Whangarei, Rotorua, Christchurch and Invercargill.

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.

Northland Regional Council is keen to keep the region clear of unwanted agricultural and crop weeds, October 1997.

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. In the year ended June 1997 there were 27 complaints (28 in 1996, 30 in 1995 and 30 in 1994), and 6 inquiries were held from which 4 valuers were found guilty. Of the 1,512 valuers registered as at 30 June 1997, 992 held annual practising certificates. The remaining 420 registered valuers are either retired, overseas, or do not make valuations for members of the public.

16.2 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 has 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 16.4. LAND USE TODAY

Type of landApproximate areaPercentage of total area

Source: LINZ

 hectares (million) 
Total forested land7.929.4
Pasture and arable land13.951.2
Other land5.219.4
        Total land area of New Zealand27.1100.0

Geology, soils, vegetation, wildlife and other aspects of the New Zealand environment are described briefly in Chapter 1: Geography.

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. It 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 within the purpose of the act—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.

LAND USE

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 rivers.

  • 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 ethic of stewardship;

  3. The efficient use and development of natural and physical resources;

  4. The maintenance and enhancement of amenity values;

  5. Intrinsic values of ecosystems;

  6. Recognition and protection of the heritage values of sites, buildings, places or areas;

  7. Maintenance and enhancement of the quality of the environment;

  8. Any finite characteristics of natural and physical resources; and

  9. 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 ecosystems.

  • 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.

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 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, 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 Hazardous Substances and New Organisms Act (1996) reforms the law relating to management of hazardous substances and new organisms and the Environmental Risk Management Authority has been established to administer the act.

The purpose of the act is to protect the environment and the health and safety of people and communities, by preventing or managing the adverse effects of hazardous substances and new organisms.

Although enacted on 10 June 1996, the act has not yet been brought into force. Those parts of the act relating to new organisms are scheduled to come into effect in July 1998 and those relating to hazardous substances are expected to commence in October.

Hazardous substances managed under the act cover explosives, flammable, oxidising, corrosive, toxic and ecotoxic substances. (Radioactive substances are managed under the Radiation Protection Act).

The degree of control will be related to the hazardousness of the substance. The controls will be “performance-based”, in other words they will be expressed in a way that allows for changing technology and alternative means of compliance. The controls are designed to set national minimum consistent standards for consents under the Resource Management Act that involve hazardous substances.

In addition, the controls are designed to provide consistent standards with workplace and transport legislation relating to hazardous substances. The act is also designed to work closely with regulations of specific use areas, for example, where hazardous substances are also medicines, veterinary medicines or agricultural components.

New organisms managed under the act cover the deliberate introduction of new species, such as for primary production or for biological control. Also covered are proposals for the development, testing or release of genetically modified organisms. This part of the act stands alongside the Biosecurity Act which sets out to prevent the unintended introduction of unwanted species into the country.

The principles for the new legislation require that all hazardous substances and new organisms be assessed prior to the introduction, development or manufacture in New Zealand, and that they all follow a similar assessment process. Assessment is to be publicised and open to public comment and the final decision will also be made public.

Management of the adverse effects of hazardous substances on the health and safety of people and environment need to focus on more than just the end use. Hazardous substances are to be controlled at points in their life cycle where the environment and the 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.

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 in 1992 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 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 database to provide statistical information on waste has been established.

Mineral exploitation

The impact of mining, prospecting and exploration of minerals, whether Crown or private, 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 all mining activities, including the rehabilitation of land.

Exploitation of Crown-owned minerals is governed by the Crown Minerals Act 1991, administered by the Ministry of Commerce. Under the act the Minister of Energy is required to prepare minerals programmes which establish policies, procedures and provisions to be applied to the management of Crown minerals. The minerals programme for petroleum came into effect on 1 January 1995. The draft programmes for coal, metallic minerals and industrial rocks and building stones have been notified and submissions are being analysed.

New Hutt Valley recycling centre, where contents of green recycling bins are sorted, August 1997.

Using the procedures established in the minerals programmes, the Minister of Energy issues permits allocating Crown-owned minerals, or the rights to search for them. Permits contain conditions relating to the management of the mineral resource, and royalties.

In addition to a minerals permit, the act provides that anyone prospecting, exploring or mining Crown minerals must also make land access arrangements with the surface landowner and/or occupier.

Water and soil management

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.

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, such as Milford Sound, annual rainfalls of over 10,000 mm have been measured, while in others, such as Alexandra, 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 councils in these areas.

Water quality. Maintenance of water quality is also the responsibility of regional councils within the framework of the Resource Management Act. The 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 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 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.

The Resource Management Act provides for the making of national environmental standards. Statutory standards can be inflexible and inappropriate for New Zealand's diverse aquatic environment. Guidelines allow regional councils discretion in the development of local standards. The Ministry for the Environment has produced water quality guidelines on nuisance growths (nitrogen, phosphorous, and organic matter), and colour and clarity (suspended solids and other visible material).

Water resources, including marine ecosystems and geothermal fluids, are a significant part of our natural heritage and our recreational activities. Low water quality in rivers will affect water quality in the coastal marine environment, in turn affecting marine vegetation and inshore fisheries. In addition to being essential as drinking water, and for many parts of the economy, water also has important practical and spiritual value for Maori and the wider community.

New Zealand has substantial rainfall and an extensive lake and river system, but water is distributed very unevenly. In some places water is plentiful, but in others demands sometimes cannot be met. The best sites for hydro-electric power schemes are already used, and developing most of the remaining sites would conflict with other uses.

While having high quality fresh and coastal waters has major benefits, achieving it everywhere will incur considerable costs. For example, it has been estimated that providing secondary treatment schemes for all urban communities around the New Zealand coasts could cost $1 billion over the next decade. There will need to be choices by communities on how quickly they can meet this goal, taking account of other priorities.

To cope with Wellington's 200,000 tonnes of rubbish a year the city council has systems in place to reduce, reuse, recycle & compost rubbish, and to recover resources from landfills. These green bins (themselves made from recycled plastic) are given to households for the kerbside collection of glass, metal, plastic and paper.

The Tarawera river flows black into the ocean at Matata after passing the Kawerau mill upstream, November 1997.

The Ministry for the Environment is developing guidelines for the protection of aquatic life and instream flow requirements.

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.

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 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. The Maritime Safety Authority (through the Transport Act) is responsible for marine pollution outside the territorial sea and for the co-ordination of responses to oil spills. 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 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. The ministry is currently developing a national strategy to address the impacts of agriculture on water quality. 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 food processing industries are also major contributors to pollution. Urban solid-waste disposal is largely by the land-fill technique, and most major cities are establishing landfill sites planned to last up to 50 or 100 years.

Organic chemical pesticides (which include insecticides, fungicides and herbicides) are widely accepted as essential for efficient agriculture and horticulture. Their use is controlled by the Pesticides Board under the auspices of the Ministry of Agriculture. The board controls the import and sale of pesticides and has an approved list of registered pesticides for use in different situations, such as in or near water. The board also gives guidance on the application of those pesticides.

Global environmental issues

Some of the most pressing environmental problems extend beyond national borders. They are known as global environmental issues and include climate change as a result of the enhanced greenhouse effect and ozone depletion. No one country is responsible for them, but all countries ultimately suffer the consequences. New Zealand's comparative isolation does not make it any less vulnerable.

Greater awareness of the importance of global action on environmental matters has led to increasing international activity. 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.

This goal, highlighted by the 1987 Report of the World Commission for the Environment and Development (the UNCED report Our Common Future), was the theme for the United Nations Conference on Environment and Development (the UNCED or ‘Earth Summit’ held in Rio de Janeiro, Brazil in 1992).

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 at a meeting of this kind.

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. The UNCED also established the Commission on Sustainable Development (CSD) to monitor progress with implementation of Agenda 21.

The global warming debate continues.

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 environmental work which it pursues within its means. 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 advises government on international aspects of global environment issues, including representation of New Zealand interests and concerns in negotiations. The Ministry for the Environment provides advice on the domestic aspects of global environmental issues, as well as on purely domestic matters.

New Zealand ratified the Framework Convention on Climate Change and the Convention of Biological Diversity in 1993. It was the third country (and first developed nation) to ratify the London Amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer. It agreed to contribute around NZ$10.4 million to the 1994-1996 replenishment of the Global Environment Facility which provides funding for projects which address four global environmental problems (climate change, biodiversity loss, ozone depletion and international waters). New Zealand is actively engaged in negotiations on amendments to the London Convention of the Prevention of Marine Pollution by Dumping of Wastes, 1972. New Zealand ratified the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal in 1995.

New Zealand has been active in the UN Conference on Straddling Fish Stocks and Highly Migratory Fish Stocks, which in 1995 resulted in agreement on a new convention to complement the existing provisions of the UN Convention on the Law of the Sea. The convention contains innovative provisions on the enforcement of conservation and management measures on the high seas and was opened for signing in December 1995.

New Zealand plays an active conservationist role in the International Whaling Commission (IWC). It was a major proponent of the creation of a circumpolar southern ocean whale sanctuary agreed at the 1994 IWC meeting. The sanctuary extends from the Antarctic ice edge to points between 40° and 55° south latitude, and includes much of New Zealand.

New Zealand has been particularly active in questions relating to trade and environment including discussions held at the OECD and in GATT. This will continue especially in the new World Trade Organisation Committee on Trade and Environment.

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 was active in the Global Conference on the Sustainable Development of Small Island Developing States, held in Barbados in 1994. In 1995 New Zealand signed the Waigani Convention to Ban the Importation into Forum Island Countries of Hazardous and Radioactive Wastes and to Control the Transboundary Movement and Management of Hazardous Wastes within the South Pacific Region.

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).

WHALE SANCTUARIES

Whale environment. The International Whaling Commission (IWC) has established two large whale sanctuaries. The Indian Ocean Whale Sanctuary was set up in 1978, and the Southern Ocean Whale Sanctuary in December 1994. All New Zealand waters south of 40° are included within the latter. Although all whales are supposedly fully protected within these sanctuaries, Japan has lodged an objection to the inclusion of the Southern Hemisphere minke whales in the Southern Ocean Whale Sanctuary, and continues to kill 440 minke whales a year from sanctuary waters, including the Ross Sea, for the purposes of ‘scientific research.’

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 ratified the Framework Convention on Climate Change (FCCC) in September 1993, New Zealand, along with other party nations, has an obligation to reduce its greenhouse gases.

The government's first steps towards achieving the target of returning CO2 emissions to their 1990 level by the year 2000 and holding them there, were announced in July 1992. That CO2 Action Programme incorporates measures designed to reduce CO2 emissions and enhance carbon sinks. Among these measures are voluntary agreements with industry to reduce CO2 emissions, the encouragement of more efficient energy use, the use of the Resource Management Act 1991 to consider CO2 emissions in plans, policy statements and resource use consents, and legislative and regulatory reform in the energy sector to encourage more competitive gas and energy markets. The government has also foreshadowed the introduction of a low-level carbon charge to be introduced in 1997 if, by then, industry has not voluntarily lowered CO2 emissions by 3 percent on what they would have been under 1990 ‘business as usual’ conditions. In August 1995, a joint public-private sector working party to examine elements of the government's CO2 policy was established. It is designed to gain a better understanding of any alternative measures which could achieve the government's CO2 policy objectives and maintain and enhance New Zealand's economic growth and international competitiveness. A report, Climate Change and CO2 Policy: A Durable Response was published in June 1996.

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.

The ministry's Pollution and Risk Management Directorate is responsible for implementing New Zealand's obligations under the Montreal Protocol on Substances that Deplete the Ozone Layer. Work focused on amending the Ozone Layer Protection Act 1990. The new act was passed in June 1996. Where the previous act contained controls in the body of the act, the new act sets up a framework for making regulations to implement controls. This means that in future it will be easier to comply with changes to obligations under the Protocol.

The new act also sets up a system for accreditation of workers dealing with ozone-depleting substances. This will require these workers to have sufficient technical knowledge to comply with their obligations under the new act, and will strengthen the effectiveness of New Zealand's compliance measures under the Protocol.

The Ministry for the Environment is currently consulting with affected parties and is developing policies to phase out the import of hydrochlorofluorocarbons (HCFCs), the low ozone-depleting alternatives to CFCs and methyl bromide, a gas used widely to fumigate soils and items being imported and exported.

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 decision-making. 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 Land Information New Zealand, as well as the large number of regional and territorial organisations which have monitoring responsibilities under the Resource Management Act. A discussion document, National Environmental Indicators—Building a framework for a core set was released in January 1996.

The Ministry for the Environment is co-ordinating within the public sector the domestic follow-up work generated by UNCED, in particular the implementation of Agenda 21.

16.3 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 13 national parks, covering just under 2.5 million hectares, 20 forest parks covering some 1.8 million hectares, and about 3,500 reserves covering some 1.5 million hectares, and some 61,000 hectares of protected private land and covenants that have been set aside for scenic, scientific or ecological reasons. In May 1996 a new national park, Kahurangi National Park in the north-west of the South Island was formally opened. Incorporating the existing North-West Nelson Forest Park, Kahurangi covers 452,000 hectares and is the second largest of the national parks. 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 (55,000 hectares) constituted under the act is by permit only.

PARKS OF NEW ZEALAND

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 Whanganui 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.

Kahurangi National Park. (452,000 hectares, established 1996), situated in the north-west of the South Island comprises spectacular and remote country and includes the Heaphy Track. It has ancient landforms and unique flora and fauna. It is the second largest national 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.

A rare Southern Right whale gives a spectacular display in Wellington's inner harbour, October 1997.

Arthur's Pass National Park. (114,357 hectares, established 1929), is a rugged and mountainous area straddling the main divide of the Southern Alps.

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 National Park. (70,728 hectares, established 1953), is an alpine park, containing New Zealand's highest mountain, Aoraki/Mount Cook (3,754m), 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. (355,531 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.

World heritage areas

New Zealand has two World Heritage sites, Te Wahipounamu (south-west New Zealand) and Tongariro National Park. World heritage areas consist of over 440 sites listed under UNESCO's World Heritage Convention as the most outstanding natural and cultural places on the globe. Te Wahipounamu is one of the world's great forest and mountain wildernesses. It consists of 2.6 million hectares (10 percent of the area of New Zealand) of the south-west of the South Island, including Fiordland, Mt Aspiring, Westland and Mt Cook national parks and the coastal swamp kahikatea forests of South Westland. Tongariro National Park is one of a limited number of sites accorded world heritage status for both its natural and cultural values. It is considered to contain some of the most continuously active stratovolcanoes in the world and it was the first national park in the world to be freely gifted to the nation by an indigenous people, the Ngati Tuwharetoa, to whom the mountains are sacred.

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.

Other conservation areas held under the Conservation Act 1987 have an area in excess of 2,840,000 hectares.

Reserves

Reserve land includes scenic, nature, scientific, historic, national and recreation reserves, wildlife reserves, protected private land and land protected under various conservation and open space covenants.

Scenic reserves—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 (189,400 hectares) in this category are on the mainland but most are on offshore or outlying islands.

National reserves—protect areas of outstanding natural beauty or scientific or ecological importance. They are second only to national parks in the degree of protection they offer. The Snares Islands, Auckland Islands, Campbell Island, Antipodes Island and the Bounty Islands together form the 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. Total area 96,300 hectares.

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. Total area 10,300 hectares.

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 cooperate closely in the investigation and administration of sites and buildings of historical or archaeological interest (see section 12.2 The national collection). Total area 3,200 hectares.

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. Total area 18,500 hectares.

Marine reserves and parks

Two new marine reserves have opened during 1996, at Pollen Island and Long Bay-Okura, both in the Auckland region bringing to 13 the number of marine reserves protecting a variety of marine habitats (marine resources may not be extracted from marine reserves). The Kermadec Islands Marine Reserve is the largest at 748,000 hectares. Located approximately 400 nautical miles northeast of Auckland, the area has an interesting mix of subtropical, temperate and endemic species. The Cape Rodney-Okakari Point Marine Reserve (518 hectares) was the first gazetted in 1975, followed by the Poor Knights Islands (2,410 hectares) in 1981. All the remaining reserves: Wanganui-A-Hei (84 hectares), Tuhua/Mayor Island (1,060 hectares), Kapiti (2,167 hectares), Long Island (619 hectares), Westhaven Te Tai Tapu (536 hectares), Tonga Island (1,835 hectares), Te Awaatu Channel (93 hectares) and Piopiotahi (690 hectares), were all gazetted in the years since 1990.

There are two marine parks Mimiwhangata and Tawharanui, protected by fisheries regulations. The Sugar Loaf Islands, previously a marine park, are now protected under their own act as a marine protected area.

Fire control

The Department of Conservation is responsible for fire control in state areas, which include national parks and reserves, forest parks, and unalienated Crown land, together with a 1 km fire safety margin adjoining all these lands.

Protected Natural Areas Programme

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 Màori 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. Under the Conservation Act, the Conservation Authority (established in 1990) provides advice to the minister on departmental policy development including Maori customary use. Treaty issues and section 4 responsibilities, and other conservation matters of national importance. The authority approves conservation management strategies (CMS), regional strategies currently being prepared in conservancies.

The authority will maintain close involvement in ecosystem protection, including animal and weed pests and the use of 1080 in animal control, the development of strategies and plans to protect New Zealand's biodiversity, monitoring, auditing and community involvement. It also has a particular interest in recreation and tourism and is concerned that the department plans for tourism, develops performance measures and carries out research on physical and social impacts.

Under the National Parks Act, the authority approves national park management plans and investigates additions to, and new, national parks.

The diver and blue cod eye each other at Goat Island, the country's first marine reserve, now 20 years old.

A giant kauri snail will be tracked with this transponder at the Department of Conservation's Trounson Kauri Park kauri ecosystem.

Conservation Boards. There are 17 regional conservation boards also serviced by the department. Boards work closely with conservancies in the development of CMSs, management plans, conservation advocacy, walkways and a wide range of other conservation issues.

During 1996 new members were appointed to both the authority and the boards for a two-year term.

New Zealand 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 of fish and game, 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 the provision, protection and enhancement of open space for the benefit of all New Zealanders.

Most often, the trust enters into voluntary open space covenants with private or non-government landowners. While the land itself remains in private ownership, the landscape is protected by the trust which acts as independent perpetual trustees.

Covenant agreements specify how the area is to be managed and are registered against the land title.

At June 1997, there were 1,030 registered covenants protecting natural features on 42,376 hectares of land throughout New Zealand. A further 320 approved projects covering 59,000 hectares are proceeding toward registration.

The trust also owns property, most of which has been gifted or bequeathed, the majority encompassing a range of natural, cultural, scientific or aesthetic values.

In the 1997 year the trust received an operating grant of $819,000 from the government. It also received $422,000 from the Forest Heritage Fund for native forest protection projects and applied $109,000 Lottery Grants Board funding to projects including wetland covenants and revegetation programmes.

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 12.2: The national collection.

Waitangi National Trust Board. This board administers the Waitangi National Reserve which includes the Treaty House. The reserve was gifted to the nation in 1932 by Lord Bledisloe, then Governor-General, and his wife. 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.

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, Nga Whenua Rahui, and the Wild Animal Recovery Service Appeal Authority.

Conservation NGOs

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

  • 16.1 Land Information New Zealand; Terralink New Zealand Ltd; Maori Land Court; Valuation New Zealand; Land Corporation Limited.

  • 16.2 Ministry of Forestry; Ministry for the Environment; Ministry of Foreign Affairs and Trade; Ministry of Commerce; Ministry of Agriculture.

  • 16.3 Department of Conservation; Queen Elizabeth II National Trust.

Special articles

Maori Trustee; Ministry for the Environment; ECO; Royal Forest and Bird Protection Society; Department of Conservation.

Further information

Land resources and ownership

Annual Report of Terralink NZ Limited.

The Conveyancing Bulletin. Butterworths (eight times a year).

Landcorp Annual Report. Land Corporation Ltd.

Listings of rural, commercial, and industrial sales. Valuation New Zealand (quarterly).

Residential Sales Summary. Valuation New Zealand (quarterly).

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

Report of Land Information New Zealand.

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

Environment 2010 Strategy. Ministry for the Environment.

Forging the links: New Zealand's National Report to the United Nations Conference on Environment and Development. Ministry for the Environment and MERT, 1992.

Measuring up: New Zealanders and the environment. Statistics New Zealand, 1993.

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 17. National economy

A senior officer of Statistics New Zealand (left) releases the latest trade data at a press conference.

17.1 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.

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.

IMPORTS
By country of origin

EXPORTS
By destination

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 185 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.

17.2 National accounts

Every day there are countless transactions taking place in the New Zealand economy:

  • businesses are buying and selling goods and services;

  • government is collecting taxes and making transfer payments to beneficiaries;

  • individuals are being paid for their labour and using this income to buy their groceries or pay their rent.

Measuring all of these transactions is a huge and complex task but one which is essential if we are to understand how the economy operates. In New Zealand, as in most other countries, this myriad of transactions is classified, measured and recorded in the national accounts. These provide a convenient summary of all the key economic and financial flows in New Zealand. Moreover, they provide a framework in which to analyse and compare important economic variables such as household consumption and savings. The national accounts are organised within the framework of the New Zealand System of National Accounts (NZSNA) which is based on an internationally-accepted standard given in A System of National Accounts (United Nations, 1968). This framework, containing data collected from a wide and varied range of surveys and censuses, provides the necessary basis for subsequent socio-economic analysis.

The national accounts capture all types of transactions. They do so for the economy as a whole, or for certain groups or sectors within it such as business, government or households. This provides information on economic activities such as:

  • the production of goods and services and the costs involved in producing them;

  • the incomes earned by various groups within the economy, and what they do with them;

  • New Zealand's economic relationship with the rest of the world.

National accounts are produced annually and quarterly. Accounts for the year ended 31 March are published each year. For the latest March year, provisional estimates are prepared only for the consolidated accounts of the nation (see tables 17.2-17.5 below). Revised estimates for previous years are also prepared along with more detailed breakdowns. 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.

The provisional national accounts in current prices for the year ended March 1997 confirm that economic growth in New Zealand has slowed. Gross Domestic Product (GDP) in current prices is estimated to have increased by 4.4 percent between 1996 and 1997. Over the same period GDP in constant prices is estimated to have risen by 2.4 percent.

GDP represents the income earned from production in New Zealand, whether that is carried out by New Zealanders or foreign firms operating within New Zealand. It does not measure the final incomes which New Zealand residents earn. Gross National Income (GNI), which in the past has been referred to as Gross National Product, is a better measure of New Zealanders' income or claim on resources as it excludes income remitted abroad (dividends, interest and other transfers) and includes similar income earned by New Zealanders from overseas investments. Further adjustments to take account of depreciation and transfers from the rest of world gives an even better measure of income (National Disposable Income) from which New Zealanders can actually save and consume.

Table 17.1. PRINCIPLE AGGREGATES: 1962-1997

Year ended MarchGross Domestic Product (GDP)Gross National Income (GNI)Net National Income (NNI)Net National Disposable Income (NNDI)GDP at 1991/92 prices
(1)(2)(1)(2)(1)(2)(1)(2)(2)

1Excludes stock valuation adjustment.2Includes stock valuation adjustment.GNI = GDP plus net primary incomes from the rest of the world.NNI = GNI less consumption of fixed capital.NNDI = NNI plus net current transfers from the rest of the world

Source: Statistics New Zealand

     $(million)    
19622,872.2,857.2,626.2,622.35,943
19633,114.3,096.2,847.2,843.37,044
19643,397.3,377.3,112.3,109.39,302
19653,721.3,699.3,412.3,410.41,704
19664,012.3,981.3,664.3,644.44,245
19674,190.4,148.3,775.3,754.45,923
19684,375.4,328.3,938.3,921.45,527
19694,642.4,610.4,184.4,174.46,497
19705,133.5,092.4,626.4,613.48,845
19715,832.5,791.5,268.5,260.50,653
19726,871.6,834.6,276.6,306.51,942
19737,887.7,846.7,223.7,267.54,244
19749,181.9,162.8,455.8,501.58,136
197510,107.10,049.9,226.9,245.60,479
197611,712.11,579.10,604.10,628.61,497
197714,162.13,936.12,820.12,828.61,586
197815,51114,97015,21414,63414,00813,46714,01313,47259,992
1979.16,958.16,549.15,252.15,21960,115
1980.19,795.19,335.17,867.17,87861,649
1981.22,992.22,481.20,809.20,84962,312
1982.27,891.27,276.25,350.25,38265,374
1983.31,409.30,551.28,305.28,41665,793
1984.34,839.33,564.30,875.30,99867,595
1985.39,346.37,344.34,103.34,29370,929
1986.45,282.42,762.38,936.39,12571,476
1987.54,725.51,958.47,466.47,74572,979
1988.61,641.58,371.53,142.53,37473,437
1989.66,454.63,136.57,372.57,58072,987
1990.70,773.66,003.59,834.60,07973,534
1991.72,248.68,005.61,480.61,60473,160
1992.72,277.67,853.60,969.61,08672,278
1993.74,578.71,514.64,111.64,20073,160
1994.80,786.76,829.69,129.69,40077,690
1995.86,577.81,400.73,207.73,38781,974
1996.91,739.85,734.77,000.77,15984,574
1997.95,816.88,121.78,834.79,58086,690

The ratio of GNI to GDP shows what proportion of income from domestic production remains available to New Zealanders after adjusting for net profits, interest and dividends remitted abroad.

The ratio remained steady, at over 98 percent, for over 25 years to 1973. Following the oil price rise in 1974, when the New Zealand government increased its overseas borrowing, the ratio began to fall. It declined markedly through to 1986, when the government set about reducing its debt. The ratio has since been historically low as the private sector has increased its borrowing with financial market liberalisation and increased foreign ownership of New Zealand business (eg banks, Telecom, Tranz Rail, etc). In the last four years the ratio of GNI to GDP has fallen to 92 percent and is now at its lowest level since 1945.

Explanation of some terms are given below. Definitions of other national accounting terms can be found in the glossary at the back of this book. For more detailed data and explanations, refer to the Statistics New Zealand publication New Zealand System of National Accounts 1997.

Consolidated accounts of the nation

The consolidated accounts of the nation comprise four accounts:

Gross domestic product and expenditure (Table 17.2). 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 income and outlay (Table 17.3). This table presents 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 (Table 17.4). 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 (Table 17.5). 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 17.2. GROSS DOMESTIC PRODUCT AND EXPENDITURE

ItemYear ended 31 March
199219931994199519961997

Source: Statistics New Zealand

 $(million)
Compensation of employees33,00133,78535,26337,52340,00042,200
Operating surplus21,79522,81726,72928,96230,44431,174
Consumption of fixed capital6,8847,4037,7008,1938,7349,287
Indirect taxes10,83710,88811,40312,22312,87913,474
Less subsidies241316310325317318
Gross domestic product72,27774,57880,78686,57791,73995,816
Final consumption expenditure—
    general government12,26912,68212,57812,53513,19513,831
    private45,81046,68048,98852,93856,66059,742
Value of the physical increase in stocks857571,7291,4381,122546
Gross fixed capital formation11,53612,28014,76817,60719,18720,072
Gross national expenditure69,70072,39878,06384,51890,16394,191
Exports of goods and services21,68023,88925,31127,17327,18827,527
Less imports of goods and services19,10421,70922,58825,11426,14126,678
Expenditure on gross domestic product72,27774,57880,78686,57791,21195,041
Statistical discrepancy----529776

GDP and GNI
GNI as a percentage of GDP

Saving and borrowing
National savings and net overseas borrowing

Balance and deficit
Balance of trade and the current account deficit

Table 17.3. NATIONAL INCOME AND OUTLAY

ItemYear ended 31 March
199219931994199519961997

Source: Statistics New Zealand

 $(million)
Final consumption expenditure
    government—central10,67110,99910,88710,76111,33811,900
    government—local1,5991,6821,6921,7741,8571,931
    private—households44,92445,79648,04351,95455,56658,568
    private—non-profit organisations serving households8868839459841,0941,174
Savings3,0064,8387,8347,9157,3046,008
Appropriation of national disposable income61,08564,19969,40073,38877,15979,580
Compensation of employees33,00133,78535,26337,52340,00042,200
Compensation of employees from the rest of the world, net------
Operating surplus21,79522,81726,72928,96230,44431,174
Property and entrepreneurial income from the rest of the world, net-4,424-3,064-3,957-5,176-6,005-7,695
Indirect taxes10,83710,88811,40312,22312,87913,474
Less subsidies241316310325317318
National income60,96964,11169,12973,20777,00078,834
Current transfers from the rest of the world, net11689271180159746
National disposable income61,08564,19969,40073,38877,15979,580

From 1994 to 1996 there was a marked improvement in the level of national savings. This was in part attributable to the government running budget surpluses over the same period, surpassing $3 billion for the June 1996 year. The government has used the surplus to retire public debt, but in both 1995 and 1996 New Zealand was a net borrower from abroad. Most overseas borrowing is now by the business sector with business savings and depreciation being insufficient to fund increases in business investment.

In 1997, government savings fell as a reduced surplus was run. Personal income tax rates were reduced on 1 July 1996 and spending increased. Over the same period national savings fell, mainly the result of increased net investment outflows abroad. Since the government made changes to tax legislation in December 1995 there has been a marked increase in dividends paid to foreign shareholders. The changes provide non-resident shareholders with credits for tax paid on company income. Though the increased outflow was partly offset by an increase in non-resident withholding tax received by the government, the rise in net investment income payments was significant. This, combined with a fall in migrant transfers into New Zealand, has resulted in net external borrowing jumping from $2,644 to $4,655 million, the highest level of borrowing ever recorded (see graph).

Table 17.4. CAPITAL FINANCE

ItemYear ended 31 March
199219931994199519961997

*Includes all government-owned producer enterprises.

Source: Statistics New Zealand

 $(million)
Value of physical increase in stocks857571,7291,4381,122546
Gross fixed capital formation—
    private9,12610,02412,78715,28016,94917,517
    central government*1,6921,4771,1481,4521,3301,634
    local government*718778833874907921
Purchase of intangible assets from the rest of world, net------
Net lending to rest of the world-1,237-12878-1,474-2,664-4,655
Gross accumulation10,38412,90816,57417,57117,64415,964
Savings3,0064,8387,8347,9157,3046,008
Consumption of fixed capital6,8847,4037,7008,1938,7349,287
Capital transfers from the rest of the world, net4946661,0411,4632,1351,445
Statistical discrepancy-----529-776
Finance of gross accumulation10,38412,90816,57417,57117,64415,964

New Zealand's transactions with the rest of the world (table 17.5) have traditionally been characterised by a surplus on merchandise trade which has been more than offset by a deficit in invisibles, resulting in an overall current account deficit. This deficit, offset by any net capital transfers, must be financed by overseas borrowing. The current account deficit was reduced steadily each year from 1990 to 1994, but in the last three years has increased dramatically as real import growth has outstripped that for exports.

Gross domestic product at constant prices

Gross domestic product (GDP) and expenditure on GDP at constant prices are calculated by removing the effects of price changes from current price production accounts and expenditure totals respectively. The constant price series are valued at 1991/92 prices.

Table 17.5. EXTERNAL TRANSACTIONS

ItemYear ended 31 March
199219931994199519961997

Source: Statistics New Zealand

 $(million)
Current:
Exports of goods17,02918,79319,67020,74320,30520,724
Exports of services4,6515,0965,6426,4306,8836,803
Compensation of employees from the rest of the world------
Property and entrepreneurial income from the rest of the world853795778593751925
Other current transfers from the rest of the world5315237758847901,375
Current receipts23,06325,20726,86428,65128,72929,828
Imports of goods14,48216,53317,80820,03220,84321,240
Imports of services4,6225,1764,7805,0825,2985,438
Compensation of employees to the rest of the world------
Property and entrepreneurial income to the rest of the world5,2773,8594,7355,7706,7568,620
Other current transfers to the rest of the world414434504704631629
Surplus of the nation on current transactions-1,731-795-963-2,937-4,799-6,100
Current disbursements23,06325,20726,86428,65128,72929,828
Capital:
Capital transfers from the rest of the world, net4946661,0411,4632,1351,445
Surplus of the nation on current transactions-1,731-795-963-2,937-4,799-6,100
Capital receipts-1,237-12878-1,474-2,664-4,655
Net lending to the rest of the world-1,237-12878-1,474-2,664-4,655
Capital disbursements-1,237-12878-1,474-2,664-4,655

Tables 17.6 and 17.7 contain production-based GDP statistics. 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 estimate of constant price value added are prepared by extrapolating base year value added by indicator series representing the quantities of output produced. For further information refer Quarterly Gross Domestic Product Sources and Methods (Statistics New Zealand).

Industry groups are combined to form the following broad groupings:

  • Primary industries—agriculture and hunting; fishing; forestry and logging; mining and quarrying.

  • Goods producing industries—manufacturing; electricity, gas and water; construction.

  • Service industries—wholesale trade; retail trade; restaurants and hotels; transport and communications; finance, insurance, real estate and business services; personal and community services.

The “unallocated” category includes unallocated indirect taxes (import duties, GST and taxes on capital transactions) and the nominal industry (see Glossary).

Table 17.6. GROSS DOMESTIC PRODUCT AT CONSTANT PRICES1

 Business activity2General governmentOwner occupied dwellingsUnallocatedGross domestic product
Primary industriesGoods producing industriesService industriesTotal

1Base is year ended 31 March 1992.

2See table 17.7 for breakdown of broad groupings.

Source: Statistics New Zealand

 $(million)
19875,50320,38230,06855,9538,3865,6592,98272,979
19885,95019,92630,74956,6258,2435,7642,80873,437
19895,95719,19431,33356,4848,1355,7052,66272,987
19905,80119,14931,65956,6098,3115,7312,88273,534
19916,53318,11931,31455,9668,5116,0022,68473,160
19926,67817,40231,17455,2548,4716,2142,34372,278
19936,03917,80632,18756,0328,6126,2692,24773,160
19946,98719,09333,92360,0038,8216,4172,44877,690
19956,79220,51736,39863,7078,9416,5152,81181,974
19966,71921,18438,14266,0459,1006,6142,81484,574
19977,00921,49339,63068,1329,2286,7102,61886,690

Treasurer Winston Peters delivering the 1997 budget.

Business activity (table 11.7) grew by 3.2 percent during the year ended March 1997. This was down slightly on the 1996 growth rate of 3.7 percent and significantly below that for 1995 when growth was 6.2 percent. While all industries, with the exception of electricity, gas and water, contributed to the latest year's growth, the contribution from transport and communications was significantly larger than any other industry group, more than a quarter of total growth. Agriculture recovered after contracting in the previous two years, but the growth in manufacturing fell for the second successive year, being markedly below the 1995 contribution.

Business activity
Sector contributions to annual change

Table 17.7. BUSINESS ACTIVITY AT CONSTANT PRICES

March yearPrimaryGoods producingService industriesTotal business activity
AgricultureFishing forestry, miningManufacturingElectricity, gas & waterConstructionWholesaleRetail tradeAccomm, restaurants & hotelsTransport & communicationFinance Insurance & Bus. Serv. etcPersonal & community services

1Base is year ended 31 March 1992.

Source: Statistics New Zealand

 $(million)
19873,8481,65514,9441,9783,4605,2643,9471,5365,09510,5273,69955,953
19884,4341,51614,4662,0273,4335,0713,9831,5065,34011,0573,79056,625
19894,1541,80314,0081,9803,2065,3203,9471,4275,71911,1003,82156,484
19903,8321,96913,7682,0523,3295,5783,9931,4055,88510,9523,84656,609
19914,5142,01913,1682,1292,8225,5043,9031,3286,01510,6933,86955,966
19924,5172,16112,9062,1072,3895,0983,8491,3016,31010,6423,97455,254
19933,8212,21813,4362,0302,3405,4153,9571,3366,67310,7264,08056,032
19944,6882,29914,3982,1482,5475,7434,1691,4017,17011,0314,40960,003
19954,5412,25115,3922,2242,9016,1674,4791,5368,03011,3144,87263,707
19964,4612,25815,7482,3063,1306,3444,6051,5998,87911,5845,13166,045
19974,6522,35715,9072,2903,2966,3454,6541,6479,44912,0755,46368,132

The further slowdown in manufacturing growth in 1997 continued to confirm the reported difficulties experienced by manufacturers. The tradeable goods sector as a whole claimed to be under pressure from high interest rates and the continuing strength of the New Zealand dollar.

The service industries have not faced the same problems, such as import competition, as the tradeable goods industries. Although an appreciating exchange rate has affected service industries geared to the tourist market, the effect for services overall has been less than that experienced by the tradeable goods sector, with the level of activity increasing steadily up to September 1997. Services includes trade (wholesale and retail trade), restaurants and hotels.

Gross fixed capital formation

This records the outlays of producers on durable real assets, such as buildings, motor vehicles, plant and machinery, hydro-electric construction, roading, and improvements to land. In measuring the outlays, sales of similar goods are deducted. Land is excluded from gross fixed capital formation. Included is the value of construction work done by a firm's own employees. The term “gross” indicates that consumption of fixed capital has not been deducted from the value of the outlays.

Table 17.8. GROSS FIXED CAPITAL FORMATION: All sector by asset type

Year ended MarchResidential buildingsNon-residential buildingsOther constructionLand improvementsTransport equipmentPlant, machinery, and other equipmentTotal
$(million)
Current prices
19872,4242,4031,5301321,5724,30112,362
19882,7463,0621,3731271,5814,49113,382
19892,7972,9241,5161629704,52212,892
19903,3422,8111,4771751,6374,86114,303
19913,4192,3921,5631531,4424,82413,794
19922,9501,5961,7531641,2163,85811,537
19933,0971,5311,3941821,6334,44112,279
19943,8061,8451,3562062,0005,55214,769
19954,7052,4241,4431832,4136,43917,605
19965,0352,8711,6822302,5526,81719,186
19975,3953,0711,7912642,8106,74020,068
Constant 1991/92 prices
Year ended MarchResidential buildingsNon-residential buildingsOther constructionLand improvementsTransport equipmentPlant, machinery, and other equipmentTotal

Source: Statistics New Zealand

$(million)
19872,9862,8511,9651661,5054,42113,899
19883,0073,4031,6161421,5734,64814,390
19893,1173,0691,6661641,0294,69913,744
19903,5112,8791,5481791,7584,90214,776
19913,4842,4201,5761541,5194,85114,004
19922,9511,5961,7531641,2183,85711,538
19933,0331,5631,3741701.4744,34611,961
19943,5491,8381,3201911,7095,52614,136
19953,9862,3361,3631602,0526,67716,573
19963,9572,6891,5692052,1827,52218,124
19974,0382,7881,6552022,4568,12719,267

The recovery in real investment, evident in 1993, continued. The slow down of growth in the economy has, however, reflected a slow down in the growth in investment. After peaking at 19.5 percent in the June 1994 year, growth in gross fixed capital formation slowed to 3.9 percent by the year ended September 1997. Investment in plant, machinery and other equipment continued to be a major influence, consistently contributing half of the overall rise in each year. This has been driven by strong growth in imports of agricultural, construction and industrial machinery and equipment.

Real investment in housing after recovering strongly up to 1995 slowed markedly in the next two years. Investment dipped slightly in 1996 and grew only modestly in 1997.

Household sector

Table 17.9 shows the amount of income accruing to New Zealand residents (GNI) which is earned by households in the form of market income (from wage employment, self-employment and net investments), plus the income from imputed home ownership, what amount is available as disposable income (after receipt of government benefits, payment of income tax and other net transfers), and how much is saved.

Disposable income for households equals market income and imputed home ownership income adjusted for direct taxes paid, government benefits received, and other transfers such as gambling, insurance claims received and subscriptions paid to non-profit organisations. Since household incomes are measured before tax, a major outlay for households is income tax. Note that indirect taxes (such as GST) are included in the value of consumer spending on goods and services.

All outlays on consumer goods and services by private households are included. Examples are expenditure on durables such as motor vehicles and furniture, payments made by the government on behalf of households, and the imputed rent of owner-occupied dwellings. Households consist of New Zealand resident individuals and families, and consumption expenditure relates to their outlays both within New Zealand and overseas.

This series is available from the year ended March 1972 on.

Table 17.9. HOUSEHOLD INCOME AND SAVINGS

Year ended 31 March199219931994199519961997

Source: Statistics New Zealand

Gross national income67,85371,51476,82981,40185,73488,121
Gross national income earned by households
    —from employment33,00133,78535,26337,52340,00042,200
    —from business ownership8,1427,9439,0129,79410,68811,098
    —from imputed home ownership5,4485,3625,4825,7686,4686,882
    —from net investment1,9851,8051,9522,0712,0531,863
        Total48,57648,89551,70955,15659,20962,043
less taxes, fines, fees and ACC levies13,39614,09414,97616,02817,16717,689
plus government grants and benefits12,73912,94013,39913,64814,35315,073
plus other current transfers (net)102101120-151817
        Household disposable income48,02147,84250,25252,76156,41359,444
less consumer spending on goods and services41,31942,11444,13747,70851,06153,841
less goods and services tax (GST)3,6053,6823,9064,2474,5054,727
        Savings3,0992,0472,209806847876

While households' disposable income has consistently remained around two-thirds of GNI households have continued to save very little of it. In each of the last three years households' contribution to national savings failed to reach 4 percent.

The implied preference by households for spending is reflected in the growth of consumer spending in real terms over the same period. In 1995, consumer spending was up over the previous year by 6.1 percent, and the annual increases in 1996 and 1997 respectively were 4.5 percent and 3.7 percent.

Real investment
Annual percentage change

Table 17.10. HOUSEHOLD CONSUMPTION EXPENDITURE: By purpose

March yearFood & beveragesClothing & footwearHousingHouse-hold goods & servicesHealth & medicalTransportRecreation and educationHotels & restaurantsOther goods & servicesNet tourist expendTotal
$(million)
Current prices
19875,4231,9395,5404,0491,7115,4932,8272,6683,181-35832,473
19886,1282,1006,5214,3892,0556,0813,1543,0123,915-49236,863
19896,4292,0087,8204,4892,3066,4133,3903,0184,296-27039,899
19906,9212,1848,4764,6702,4956,8073,5643,2084,824-41542,734
19917,5322,1889,1874,7142,7796,7043,7973,2425,167-37244,938
19927,4622,1229,4474,8253,1486,3063,7803,1905,200-56044,921
19937,6252,1449,5055,1263,3376,2043,9963,3085,235-68545,795
19947,6982,2469,7855,6913,6256,5214,4763,5875,340-92348,046
19958,1352,36910,4236,1263,8367,5735,0634,1135,589-1,27151,956
19968,3152,45211,4316,2284,1938,6115,4514,6485,963-1,72455,568
19978,6132,46612,2196,3614,4239,2785,9064,9216,038-1,65558,570
March yearFood & beveragesClothing & footwearHousingHouse-hold goods & servicesHealth & medicalTransportRecreation and educationHotels & restaurantsOther goods & servicesNet tourist expendTotal

Source: Statistics New Zealand

$(million)
Constant 1991/92 prices
19877,3782,5708,7934,9722,8565,9043,6533,6074,921-43144,223
19887,5122,4318,9224,9232,9706,3443,6713,6355,292-47745,223
19897,4642,2209,0464,8883,1406,9113,7893,4325,257-14146,006
19907,2542,3389,1734,8773,0767,2183,7663,4535,338-38346,110
19917,4542,2419,3184,7733,1326,7683,8083,3305,421-31645,929
19927,4612,1229,4474,8273,1496,3083,7763,1905,201-55744,928
19937,5432,1249,5545,0143,2006,1193,8613,2665,149-78445,046
19947,5712,2029,6625,4703,2936,3364,1973,4865,222-98646,453
19957,9592,3399,7825,8173,3847,2034,7123,9315,411-1,24649,292
19968,0422,4449,9265,8703,7218,0114,9544,3285,651-1,53151,416
19978,1762,46910,0625,9193,9198,6385,3444,4925,643-1,39553,267

Spending on durables grew strongly in each of the three years to March 1997, with the standout item being used cars. Spending on services grew consistently over the last three years, annually averaging over 5 percent. Air travel, expenditure by New Zealand tourists overseas and spending in restaurants and hotels all made significant contributions in this area.

Household spending
Changes in spending, by type

Expenditure by purpose classifies household spending by the use made of the goods and services purchased. Accordingly, a mixture of goods and services may be combined in a single category, for example, the hotel and restaurants item includes expenditure on food, alcohol and accommodation.

External trade

Growth in export volumes over the last two years has been mainly influenced by dairy products and crude materials such as wool and methanol. Real exports for these products fell significantly in 1996 and then recovered strongly, coming off low levels. The overall result for the two years combined smooths the effect of changes in the export of dairy products and crude materials and shows modest growth around 3 percent per annum. With exporters continuing to report frustration with a high New Zealand dollar, exports for several products (meat, seafoods, other food and beverages, machinery and transport equipment) fell in 1997.

After five years of consistent growth, exports of services fell in 1997. Exports of travel services dropped as tourists spent less in New Zealand than in 1996.

Table 17.11. EXPORTS OF GOODS AND SERVICES

March yearDairy productsMeat and meat productsSeafoodOther food and beveragesWood and wood productsCrude materialsMachinery and transport equipmentOther manufactured goodsTotal exports of goodsExports of servicesTotal
$(million)
Current prices
1987........11,5303,59315,123
1988........12,7513,91216,663
19892,1642,1507331,3711,1343,9498731,61913,9944,06718,061
19902,2792,4417671,5041,3453,8469611,88615,0314,12119,152
19912,7872,5407561,6131,5243,3561,0692,04215,6874,27419,961
19922,7082,7951,0501,7441,7263,5061,2152,28417,0284,65121,681
19933,2023,1041,1622,0092,0483,4171,2692,58218,7935,09723,890
19943,3093,0121,1731,9132,5333,5051,4182,80819,6695,64525,314
19953,2572,7241,1792,0662,5294,0051,5783,40620,7426,43027,172
19963,2082,6801,2262,1582,6243,8111,6282,96820,3026,88327,185
19973,9562,7281,1292,1202,3443,8181,6572,97220,7256,80327,528
Constant 1991/92 prices
March yearDairy productsMeat and meat productsSeafoodOther food and beveragesWood and wood productsCrude materialsMachinery and transport equipmentOther manufactured goodsTotal exports of goodsExports of servicesTotal

Source: Statistics New Zealand

$(million)
1987........13,2094,48017,689
1988........14,3294,59118,982
19892,4392,7288851,5741,1473,0959521,71414,5354,58019,115
19902,0022,6018681,5801,3063,0089661,88414,2134,43418,647
19912,6632,5189081,8451,5043,0021,0611,94515,4454,39219,837
19922,7092,7961,0511,7441,7253,5051,2152,28717,0334,65121,681
19932,6762,8869741,8081,9143,1431,2582,48017,1405,09322,233
19942,8742,8291,1011,8491,9283.4181,5092,82118,3285,67123,999
19953,2822,8741,0641,9072,0593.5381,8053,11319,6426,38226,024
19962,9293,1241,1682,1912,0793,3781,9133,01919,8046,67926,483
19973,9333,0271,1652,1812,1753,6271,9023,14521,1556,55727,712

Recent growth in imports peaked in the March 1995 year at 14 percent when, with a surge in business investment, imports of machinery and equipment increased by almost 26 percent. Aided by a rising New Zealand dollar and tight monetary policy, imports maintained a growth rate of around 7 percent each year in the subsequent two years. In both years, imports of machinery and equipment continued to grow strongly and by 1997 the level of imports for these commodities was almost double that of five years earlier.

Table 17.12. IMPORTS OF GOODS AND SERVICES

March yearFood and beveragesMineral fuelsCrude materialsTextiles and clothingChemicalsMetalsTransport equipmentMachinery and electrical equipmentNon-food manufacturesTotal imports of goodsImports of servicesTotal
$(million)
Current prices
1987.........11,3983,84215,240
1988.........11,9763,65915,635
19897796487297861,5835681,4013,0212,06511,5834,00015,583
19909729568181,0252,0117442,2793,5912,47414,8714,06718,938
19919651,2938331,0151,9776221,9474,1162,47015,2374,20319,440
19929841,1068241,0882,0745781,6843,5692,57514,4834,62219,104
19931,1241,1289331,2502,5156672.0184,0322,86516,5335,17521,708
19941,2341,0799671,2542,6887142,3884,5482,93717,8084,78022,588
19951,3501,1069931,4142,8968072,8955,3183,25120,0335,08125,114
19961,3991,2241,0521,3453,0028052,8755,6953,44520,8445,29926,143
19971,4191,4411,0081,3612,9197653,2645,5973,46521,2405,43826,678
Constant 1991/92 prices
March yearFood and beveragesMineral fuelsCrude materialsTextiles and clothingChemicalsMetalsTransport equipmentMachinery and electrical equipmentNon-food manufacturesTotal imports of goodsImports of servicesTotal

Source: Statistics New Zealand

$(million)
1987.........11,2774,95416,227
1988.........12,7044,88917,633
19898509357658851,4566271,6642,9982,18512,3665,12917,495
19909941,0448501,0951,9177012,6163,4962,51715,2294,69519,924
19919781,1308271,0681,9326122,1654,1152,53715,3654,48719,852
19929851,1078231,0892,0745771,6853,5702,57314,4834,62219,104
19931,0851,0799211,1922,5276611,7513,7672,67215,6564,86020,516
19941,2431,2001,0391,2342,9088001,9474,4072,77217,5494,60222,151
19951,3631,3361,0401,3923,2378912,3465,5613,12120,2874,99925,286
19961,4501,4901,1011,3423,3328292,3406,5033,32921,7145,41027,124
19971,4431,6651,0861,4003,5158602,7687,0523,51823,3075,67528,982

Expenditure on GDP: Summary

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 is summarised in table 17.13.

Most of the growth in the last decade has occurred in the last five years. Both consumer spending and fixed investment have driven this growth with the latter being exceptionally strong in 1994 and 1995. In the year ended March 1997 internal demand (which equates to Gross national expenditure in table 17.13), in real terms, grew 3.6 percent with consumer spending, aided by the tax cuts in July, contributing nearly two-thirds of this growth. The proportion of internal demand being met from imports, however, has increased from just over one quarter to one third in the last ten years.

Imports and exports

Table 17.13. EXPENDITURE ON GROSS DOMESTIC PRODUCT

 Final consumption expenditureIncrease in stocksGross fixed capital formationGross national expenditureExports of goods and servicesLess imports of goods and servicesExpenditure on GDP
PrivateGeneral government
$(million)
Current prices
198732,9608,93058712,36254,83915,12315,24054,719
198837,43210,128-38113,38260,56116,66315,63561,591
198940,52311,024-6412,89264,37518,06115,58366,853
199043,45411,7421,40614,30370,90519,15218,93871,119
19914576012,293-11813,79471,72919,96119,44072,250
199245,80612,2678611,53969,69821,68319,10372,278
199346,67912,68175812,27972,39723,89021,70874,579
199448,99212,5781,72914,76978,06825,31422,58880,794
19955294012,5351,43817,60584,51827,17225,11486,576
199656,66113,1971,12119,18690,16527,18526,14391,207
199759,74313,83254720,06894,19027,52826,67895,040
 Final consumption expenditureIncrease in stocksGross fixed capital formationGross national expenditureExports of goods and servicesLess imports of goods and servicesExpenditure on GDP
PrivateGeneral government

Source: Statistics New Zealand

$(million)
Constant 1991-92 prices
198339,61610,81261212,25863,19814,33714,15763,105
198440,84311,10751913,05565,48015,21014,04566,746
198542,43311,3091,53313,78869,36316,63615,66570,237
198643,01411,505-5614,74469,20416,91215,90470,083
198744,80911,58346013,89970,75117,68916,22772,390
198845,90311,746-44514,39071,59418,98217,63372,965
198946,70411,882-16013,74472,17019,11517,49573,790
199046,86112,1851,14914,77674,97118,64719,92473,694
199146,74012,2728114,00473,09719,83719,85273,082
199245,80612,2678611,53969,69821,68319,10372,278
199345,94612,63359211,96171,13222,23320,51672,849
199447,40412,4971,42214,13675,45923,99922,15177,307
199550,30112,3801,42516,57380,67926,02425,28681,417
199652,55312,73283718,12484,24626,48327,12483,605
199754,49413,00449319,26787,25827,71228,98285,988

17.3 Balance of payments

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.

The balance of payments summarises all New Zealand's international transactions over a given period of time:

  • Exports and imports.

  • The cost of transporting New Zealand exports and imports internationally.

  • How much New Zealanders spend holidaying overseas and how much foreign tourists spend holidaying in New Zealand.

  • How much is spent servicing the overseas debt.

  • What countries are invested in and which invest in New Zealand.

  • How much is earned from New Zealand investments overseas.

  • How much foreign investors earn from their investments in New Zealand.

  • All the government's international transactions.

In short, it is a statement summarising income and expenditure and the investment decisions with the rest of the world. The current account records the day-to-day income and expenditure while the capital account records the investment decisions.

Principally, balance of payments data is designed for macro-economic analysis. The Government and their advisers use it in determining future international and trade policies and assessing the effectiveness of existing policies.

International credit rating agencies use balance of payments and overseas debt statistics in assessing New Zealand's ability to service and repay the overseas debt. Both are key statistics in determining our credit rating.

The balance of payments shows New Zealand's history as an international borrower. It provides companies with a view of what they earn and spend internationally in relation to the whole of New Zealand. In short, it provides a picture of international New Zealand.

Table 17.14. ANNUAL BALANCE OF PAYMENTS STATISTICS: Summary of major components

ItemYear ended March
199519961997P
Credit DebitCredit DebitCredit Debit

1For the year ended March 1997, data is for the official sector only. Data for other sectors not available at time of publication.

2Consists of all direct and portfolio investment flows and non-official sector other capital flows, official sector non-reserve assets, and errors and omissions.

Source: Statistics New Zealand

 NZ$(million)
Exports/imports (fob)20,614 18,522R20,168R 19,303R20,592 19,700
Balance on merchandise trade 2,092R  865R  892 
Exports/imports of services6,317 6,908R7,050R 7,210R6,737 7,343
Balance on services -591R  -160R  -605 
International investment income1,623R 6,5791,463R 7,462R233 7,345
Transfers2,970 1,1593,630 1,168R3,570 1,264
Balance on invisibles -4,735R  -3,697R  -5,411 
Balance on current account -2,644R  -2,832R  -4,520 
Direct investment4,100R 2,662R5,360R -1,827R2,026 -1,144
Portfolio investment1,459 -573,205R 576R-1,584 629
Other capital1-65R -448R-587R 949R-1,477 1,006
Reserve assets... -379... 674... 613
Net errors and omissions2-1,072R ...-4,773R ...3,491 ...
Net apparent capital inflow2,226R ...3,506R ...5,133 ...

Table 17.15. ANNUAL BALANCE OF PAYMENTS: Current account balances

Year ended MarchMerchandise tradeInvisiblesCurrent account

Source: Statistics New Zealand

 NZ$(million)
1985-734-2,622-3,356
1986-651-3,398-4,049
1987709-3,533-2,824
19881,697-4,067-2,370
19893,319-3,877-558
19901,350-4,165-2,815
19911,561-3,519-1,958
19923,591-5,472-1,881
19933,412-4,663-1,251
19943,136-3,950-814
19952,092 R-4,735 R-2,644R
1996865 R-3,697 R-2,832R
1997P892-5,411-4,520

Table 17.16. ANNUAL BALANCE OF PAYMENTS: Direct investment statistics

Year ended MarchForeign direct investment in New ZealandNew Zealand investment direct overseas

Source: Statistics New Zealand

 NZ$(million)
1985456349
1986745166
1987402949
1988238938
1989725226
19902,8243,961
19912,9322,546
19922,026728
19934,093 R-2,565R
19944,538 R3,400R
19954,100R2,662R
19965,360 R-1,827R
19972,026-1,144

Statistics New Zealand compiles New Zealand's balance of payments statistics using principles laid down in the fourth edition of the International Monetary Fund's Balance of Payments Manual. The fifth edition, issued in late 1993, introduced a considerable number of changes to the compilation and presentation of balance of payments statistics.

These include: the redefinition of the current account to exclude items of a capital nature, for example, migrants capital transfers; the introduction of a redefined/new capital and financial account; an expansion in the coverage of financial items; a clear distinction in the current account between transactions in services and income; an expansion in the list of services; and the use of a 10 percent threshold for direct investment (against the 25 percent threshold used at present by Statistics New Zealand).

To fully implement the fifth edition, Statistics New Zealand needs to develop new collections and methodologies, change existing questionnaires, and amend and develop computer systems. Because this process will take several years, and for this reason Statistics New Zealand has decided to implement the changes in several stages.

As the first implementation stage, SNZ publishes in July 1998, as a developmental series, the March 1998 quarter Balance of Payments and the year ended March 1997 International Investment Position and Balance of Payments capital account statistics, on a fifth edition presentation basis. The changes involved will be limited to renaming categories and reclassifying existing information. The most obvious changes will be renaming the present capital account as the financial account, and moving migrants' capital transfers from the current account to a redefined capital account.

Further staged changes to these developmental series will be introduced as new collections and methodologies are implemented. When the developmental series are sufficiently robust, they will become the official measures. The development programme will be completed before 2001.

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. The annual statement shows the capital flows of both the private and official sectors while the quarterly statements show the capital flows of only the official sector.

Most of the data used to compile the balance of payments statement comes from the companies undertaking international transactions. In some instances alternative data collections, official records or models are used rather than directly surveying companies or individuals.

With annual balance of payments statistics available back to 1950-51 and quarterly estimates back to June 1965, historical trends can be mapped with a view to seeing where the future lies given different assumptions.

BALANCE OF PAYMENTS

OVERSEAS DEBT
By currency

17.4 Overseas debt

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 measures New Zealand's overseas debt, using the results from two surveys:

  • Quarterly Total Overseas Debt Survey conducted by Statistics New Zealand.

  • Monthly Survey of Nominee Companies conducted by the Reserve Bank of New Zealand. This is used to obtain information on domestically issued securities.

The overseas debt was measured four times a year: 31 March, 30 June, 30 September and 31 December. From 31 March 1997 the total overseas debt figure is produced annually as at 31 March.

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 people and households.

  • Equity capital.

  • Contingent liabilities.

The first type is excluded due to the difficulty in collecting that 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 overseas 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 either directly or through nominee companies have been included in the overseas debt statistics since 31 December 1992.

The following tables show details of New Zealand's overseas debt. Information is available on:

  • Amount of the debt held by each economic sector.

  • Term structure of the debt.

  • Main currencies in which the debt is denominated.

  • Types of liability instrument used to raise the debt.

  • Repayment schedule of the debt, based on time to run to scheduled maturity.

  • Ratio of debt to gross domestic product (GDP) and to exports of goods and services.

Table 17.17. OVERSEAS DEBT

 31 Mar 9630 Jun 9630 Sep 9631 Dec 9631 Mar 97

Source: Statistics New Zealand

 $NZ(million)
Official government sector21,89623,38322,65322,32820,649
Corporate sector50,49753,83955,32555,913 R54,817
        Total72,39377,22277,97878,240 R75,466

Table 17.18. OVERSEAS DEBT BY LIABILITY TERM

 31 Mar 9630 Jun 9630 Sep 9631 Dec 9631 Mar 97

*Includes imputations for non-response and a constant estimate for the known non-surveyed firms.

Source: Statistics New Zealand

 $NZ(million)
Current liabilities27,60329,53330,57930,684 R29,892
Current portion of long-term liabilities3,9293,7962,4554,870 R2,899
Long-term liabilities25,22826,07726,03523,593 R23,639
Domestically issued securities13,69015,73016,73917,07416,948
Unallocated estimate*1,9432,0862,1702,020 R2,089
        Total72,39377,22277,97878,240 R75,466

Table 17.19. OVERSEAS DEBT BY CURRENCY OF DENOMINATION

 31 Mar 9630 Jun 9630 Sep 9631 Dec 9631 Mar 97

*Includes imputations for non-response and a constant estimate for the known non-surveyed firms.

Source: Statistics New Zealand

 $NZ(million)
NZ Dollars38,14342,57943,15743,644 R41,350
US Dollars19,65420,24021,42220,327 R20,386
Japanese Yen4,6664,1444,1943,811 R3,954
Australian Dollars3,7233,7562,9253,171 R3,092
Other currencies4,2654,4174,1115,268 R4,595
Unallocated estimate*1,9432,0862,1702,020 R2,089
        Total72,39377,22277,97878,240 R75,466

Table 17.20. OVERSEAS DEBT BY DEBT INSTRUMENT

 31 Mar 9630 Jun 9630 Sep 9631 Dec 9631 Mar 97

*Includes imputations for non-response and a constant estimate for the known non-surveyed firms.

Source: Statistics New Zealand

 $NZ(million)
Loans23,14224,25024,01825,186R24,703
Bills and bonds15,76414,71713,04413,68712,898
Deposits16,57019,47220,87619,21917,679
Accounts payable1,2839671,1321,055R1,150
Domestically issued securities13,69015,73016,73917,07416,948
Unallocated estimate*1,9432,0862,1702,020R2,089
Total72,39377,22277,97878,240R75,466

Table 17.21. OVERSEAS DEBT BY MATURITY PROFILE

 31 Mar 9630 Jun 9630 Sep 9631 Dec 9631 Mar 97

*Includes imputations for non-response and a constant estimate for the known non-surveyed firms.

Source: Statistics New Zealand

 $NZ(million)
At call6,7348,1657,2606,797R7.215
2-89 days19,20221,19423,18726,227R22,567
90 days and under 1 year10,9189,1488,4998,532R8,100
1-5 years16,21916,10415,75914,137R15,466
Over 5 years17,37720,52421,10420,528R20,029
Unallocated estimate*1,9432,0862,1702,020R2,089
Total72,39377,22277,97878,240R75,466

Table 17.22. OVERSEAS DEBT RATIOS

DateOverseas debtGDPExport of goods and servicesRatio of overseas debt to:
GDPExport of goods and services

Source: Statistics New Zealand

 $NZ (million)percentpercent
31 Mar 199672,39390,01526,987R80.4268.3R
30 Jun 199677,22290,87927,239R85.0283.5R
30 Sep 199677,97891,97427,423R84.8284.4R
31 Dec 199678,240R92,63127,461R84.5284.9R
31 Mar 199775,46695,06027,50879.4274.3

17.5 International investment position

International investment position statistics are relatively new in New Zealand. New Zealand's international investment position statement shows the value of all New Zealand's international assets and liabilities at specific points in time. By also including international assets their scope is wider than the overseas debt statistics.

The difference between the total value of a country's international assets and its international liabilities is its net international investment position. The net position of an economy is often used to characterise an economy as either a ‘net creditor’ or ‘net debtor’.

Statistics New Zealand's first attempt to measure New Zealand's complete international investment position was published in October 1992. This initial statement reported the value of New Zealand's assets and liabilities as at 31 March 1989, 1990 and 1991. Annual statistics are now published.

The framework used in compiling New Zealand's international investment position statement was designed by the International Monetary Fund. There are two approaches that may be used:

  • A balance sheet basis, showing assets and liabilities.

  • A balance of payments basis, showing foreign investment in New Zealand and New Zealand investment abroad.

Whichever approach is used, the same net international investment position results.

The second approach, the balance of payments approach, is the one recommended by the International Monetary Fund as it represents the stock or level of investment shown in the capital account of the balance of payments statement. International investment position statistics can be linked to the financial transactions shown in the capital account of the balance of payments via a reconciliation statement.

Theoretically the difference in the level of international assets and international liabilities between two points in time can be due to either:

  • Transactions (recorded in the capital account of the balance of payments).

  • Changes in market prices.

  • Exchange rate variations.

  • Other adjustments, such as write-offs and reclassifications.

Despite not being recommended by the International Monetary Fund, the first approach (the balance sheet basis) is still useful. It represents the stock or level of our international assets and liabilities on a gross basis consistent with that used in the overseas debt statistics.

Most of New Zealand's overseas debt is in these currencies.

INTERNATIONAL INVESTMENT

Table 17.23. INTERNATIONAL INVESTMENT POSITION1,2

ItemAt 31 March
19931994199519961997

1These tables are prepared in general accordance with principles laid down by the International Monetary Fund, in the fourth edition of the balance of payments manual.

2Data may not add to stated totals due to rounding.

3Data from 1996 onwards now includes the international investment activities of New Zealand fund managers, as surveyed through the Reserve Bank of New Zealand's Managed Fund Survey.

Source: Statistics New Zealand

 NZ$(million)
New Zealand investment abroad
Direct investment abroad7,876R9,211R11,748R13,246R11,708
    Equity capital14,123R14,421R15,428R19,047R21,277
    Other long-term capital-5,581R-4,430R-3,727R-6,309R-10,173
    Other short-term capital-667R-781R48R509R603
Portfolio investment abroad1,564R2,407R2,612R8,078R8,923
    Corporate equity31,129R1,482R1,888R6,326R6,952
    Debt securities3435R925R724R1,751R1,971
Other capital investment abroad3,297R4,978R4,471R6,262R7,259
    Official sector307432571717858
    Deposit money banks204R285R153R199R728
    Other sectors32,786R4,262R3,748R5,346R5,673
Official reserve assets6,1716,9096,0956,748R6,495
Total NZ investment abroad18,908R23,504R24,927R34,333R34,384
Foreign investment in New Zealand
Direct investment in NZ27,838R35,255R40,076R47,073R50,775
    Equity capital21,244R27,220R31,966R38,745R41,555
    Other long-term capital5,451R6,100R5,718R5,569R6,280
    Other short-term capital1,143R1,935R2,392R2,759R2,940
Portfolio investment in NZ10,236R14,803R16,732R19,405R20,835
    Corporate equity2,473R1,451R2,283R1,732R1,426
    Debt securities7,763R13,352R14,448R17,673R19,409
Other capital investment in NZ44,726R40,785R39,179R37,485R35,094
    Official sector19,45617,01013,6639,7045,600
    Deposit money banks291R354R390R449R453
    Other sectors24,979R23,420R25,126R27,333R29,041
Total foreign investment in NZ82,800R90,843R95,986R103,964R106,704
Net international investment position-63,892R-67,338R-71,060R-69,630R-72,320

Table 17.24. INTERNATIONAL ASSETS AND LIABILITIES1,2

ItemAt 31 March
19931994199519961997

1 These tables are prepared on a balance sheet basis.

2 Data may not add to stated totals due to Rounding.

3 Data from 1996 onwards now includes the international investment activities of New Zealand fund managers, as surveyed through the Reserve Bank of New Zealand's Managed Fund Survey.

Source: Statistics New Zealand

 $NZ(million)
International assets
Equity assets15,252R15,903R17,316R25,373R28,229
Lending7,328R9,639R9,013R12,679R13,148
    Official sector309434572718860
    Corporate sector37,019R9,205R8,440R11,960R12,288
Official Reserve assets6,1716,9096,0956,7486,495
Total international assets28,751R32,451R32,424R44,800R47,872
International liabilities
Equity liabilities23,717R28,672R34,249R40,477R42,981
Borrowing68,926R71,117R69,234R73,953R77,211
    Official sector23,52526,29323,43421,91220,637
    Corporate sector45,402R44,824R45,800R52,041R56,574
Total international liabilities92,643R99,789R103,484R114,430R120,192
Net international investment position
Net equity position-8,464R-12,768R-16,933R-15,104R-14,752
Net overseas debt position-55,427R-54,570R-54,126R-54,526R-57,568
    Net official sector overseas debt-17,045-18,950-16,766-14,446-13,282
    Net corporate sector overseas debt-38,383R-35,619R-37,360R-40,080R-44,286
Net international investment position-63,892R-67,338R-71,060R-69,630R-72,320

New Zealand international investment position statistics are derived from data collected from the:

  • Annual capital investment survey, conducted by Statistics New Zealand;

  • Quarterly total overseas debt survey, conducted by Statistics New Zealand;

  • Managed Funds survey, conducted by the Reserve Bank of New Zealand; and

  • Official overseas reserves statistics, produced by the Reserve Bank of New Zealand.

The major data source is the annual capital investment survey. This is a census of about 7,000 New Zealand companies which engage in international transactions. This survey collects information on the:

  • Market value of New Zealand's shareholdings in overseas-located companies;

  • Value of New Zealand's other financial claims on foreigners;

  • Market value of foreign ownership of New Zealand companies; and

  • Value of New Zealand's other financial liabilities to foreigners.

Companies in New Zealand's annual capital investment survey are asked for the value of their international assets and liabilities as at 31 March each year. When companies cannot provide valuations as at 31 March each year, they are asked to provide valuations as at their balance date immediately prior to 31 March.

Analysis of the survey data suggests that at the total level, the data published for New Zealand investment abroad and foreign investment in New Zealand is fairly representative of March year valuations. However, there is some variation when looking at individual component series.

The accepted basis of valuation for an international investment position statement is market value although in practice this is not always possible to obtain.

17.6 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. The Annual Enterprise Survey supplements the censuses, collecting financial information from a representative sample of some 30,000 businesses. Most non-farming, market-orientated industries are included in the Annual Enterprise Survey coverage. Quarterly business surveys, such as the 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, market-orientated businesses for the 1986-7 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. A manufacturing census was conducted in the 1994-95 year. The 1995-96 year coincided with a “rest of economy" census, covering all industries except manufacturing, distribution, mining and quarrying.

In addition to these financial surveys and censuses, the Annual Business Frame Update Survey collects business demographic information as at February each year. This survey collects non-financial data relating to the location, type of activity, degree of overseas ownership and employment level of New Zealand business. This survey (together with data from the Inland Revenue Department and various other sources) is used to update the Business Frame, which is the population register for Statistics New Zealand's business surveys and censuses. Farms are excluded from this survey, as are non-trading companies.

Up until 1994, business demographic statistics included businesses that compulsorily registered for GST. Since then the statistics have been based on economically significant enterprises. These are generally defined as those with annual GST expenses or sales greater than $30,000, or those in a GST-exempt industry.

The statistics on geographic units and full-time equivalent persons engaged in Table 17.25 are derived from a snapshot of the Business Frame. The table uses the Australian and New Zealand Standard Industrial Classification (ANZSIC), for comparability with the Annual Enterprise Survey results presented elsewhere in this book. A “geographic unit” is a separate operating unit engaged in one (or predominantly one) kind of economic activity from a single physical location. “Full-time equivalent persons engaged” equal the sum of the full-time employees and working proprietors engaged, plus half the part-time employees and working proprietors engaged. A person is regarded as full-time if they work 30 or more hours per week.

Table 17.25. ACTIVITY UNITS* AND FTE PERSONS ENGAGED† IN ECONOMICALLY-SIGNIFICANT ENTERPRISES (by Australian and New Zealand Standard Industrial Classification)

ANZSIC RangeANZSIC description1996 Geographic units1997 Geographic units1996 Full-time equivalent persons engaged1997 Full-time equivalent persons engaged

*Generally defined as those enterprises with greater than $30,000 annual GST expenses or sales, or in a GST-exempt industry.

Full-time equivalent (FTE) persons engaged equal the sum of the full-time persons engaged plus half the part-time persons engaged. FTE numbers have been rounded and sums of component items may not match totals.

Source: Statistics New Zealand

A021Services to Agriculture3,1563,29913,14014,620
A022Hunting and Trapping7777250220
A030Forestry and Logging3,3175,0939,3809,600
A041Marine Fishing1,3591,6033,9704,180
A042Aquaculture342340940960
B110Coal Mining5453880940
B120Oil and Gas Extraction2322640590
B131Metal Ore Mining10888890810
B141Construction Material Mining3003021,7401,690
B142Mining nec2921210130
B151Exploration6263220220
B152Other Mining10161570
C211Meat and Meat Product Manufacturing34233225,69025,020
C212Dairy Product Manufacturing1481498,1308,300
C213Fruit and Vegetable Processing1021034,3103,910
C214Oil and Fat Manufacturing2826530370
C215Flour Mill and Cereal Food Manufacturing4240830860
C216Bakery Product Manufacturing2672685,3005,890
C217Other Food Manufacturing55858212,38013,230
C218Beverage and Malt Manufacturing2432483,2003,500
C219Tobacco Product Manufacturing67490450
C221Textile Fibre, Yarn and Woven Fabric Manufacturing1561523,4403,090
C222Textile Product Manufacturing5675674,8304,340
C223Knitting Mills1071111,8801,690
C224Clothing Manufacturing1,1881,11411,55010,650
C225Footwear Manufacturing69621,5601,350
C226Leather and Leather Product Manufacturing2031913,0102,870
C231Log Sawmilling and Timber Dressing6005658,2007,870
C232Other Wood Product Manufacturing1,3571,3819,6209,810
C233Paper and Paper Product Manufacturing1451408,7708,200
C241Printing and Services to Printing1,4491,41811,89012,100
C242Publishing77978610,0909,840
C243Recorded Media Manufacturing and Publishing5121520
C251Petroleum Refining24550640
C252Petroleum and Coal Product Manufacturing nec3935390340
C253Basic Chemical Manufacturing2432264,2303,970
C254Other Chemical Product Manufacturing4134026,0305,680
C255Rubber Product Manufacturing1051101,9801,710
C256Plastic Product Manufacturing5225238,7208,520
C261Glass and Glass Product Manufacturing1311301,3101,270
C262Ceramic Manufacturing2532421,0801,010
C263Cement, Lime, Plaster and Concrete Product Manufacturing3764003,7003,820
C264Non-Metallic Mineral Product Manufacturing nec8487780730
C271Iron and Steel Manufacturing1271263,2503,100
C272Basic Non-Ferrous Metal Manufacturing16171,4001,260
C273Non-Ferrous Basic Metal Product Manufacturing95942,1202,140
C274Structural Metal Product Manufacturing8218717,5008,040
C275Sheet Metal Product Manufacturing3133263,6503,850
C276Fabricated Metal Product Manufacturing1,4771,5549,6509,800
C281Motor Vehicle and Part Manufacturing6006046,1806,080
C282Other Transport Equipment Manufacturing7827789,1409,250
C283Photographic and Scientific Equipment Manufacturing2702811,2601,480
C284Electronic Equipment Manufacturing3053193,0103,630
C285Electrical Equipment and Appliance Manufacturing4264219,4108,680
C286Industrial Machinery and Equipment Manufacturing2,9912,97317,85017,780
C291Prefabricated Building Manufacturing9098870840
C292Furniture Manufacturing1,7671,79910,1109,710
C294Other Manufacturing1,0701,0374,3704,310
D361Electricity Supply3523488,0008,200
D362Gas Supply3227800810
D370Water Supply, Sewerage and Drainage Services3002951,7701,790
E411Building Construction10,79711,13328,18028,910
E412Non-Building Construction1,7321,71714,55014,640
E421Site Preparation Services1,2361,3774,4905,320
E422Building Structure Services2,1532,3455,5405,990
E423Installation Trade Services6,7567,00919,81021,720
E424Building Completion Services7,5348,03717,87018,070
E425Other Construction Services1,0971,2514,0804,570
F451Farm Produce Wholesaling1,2811,2995,7105,630
F452Mineral, Metal and Chemical Wholesaling1,0621,0707,1607,210
F453Builders Supplies Wholesaling1,4681,50210,94011,300
F461Machinery and Equipment Wholesaling4,3304,53426,31027,780
F462Motor Vehicle Wholesaling1,5151,6497,5707,960
F471Food, Drink and Tobacco Wholesaling1,9952,11415,36016,340
F472Textile, Clothing and Footwear Wholesaling8388483,5103,550
F473Household Good Wholesaling6336633,4903,450
F479Other Wholesaling5,0074,88719,05019,230
G511Supermarket and Grocery Stores2,7112,70931,28032,350
G512Specialised Food Retailing6,4446,55922,50023,130
G521Department Stores25725910,41010,680
G522Clothing and Soft Good Retailing3,8883,73811,98011,680
G523Furniture, Houseware and Appliance Retailing3,2303,20214,41014,480
G524Recreational Good Retailing2,5492,5128,83010,000
G525Other Personal and Household Good Retailing7,8947,87922,06022,590
G526Household Equipment Repair Services1,3361,3163,4903,350
G531Motor Vehicle Retailing1,8081,85713,24013,560
G532Motor Vehicle Services7,6417,91230,88032,000
H571Accommodation3,0233,22220,04021,420
H572Pubs, Taverns and Bars9801,0388,1907,970
H573Cafes and Restaurants4,2554,48727,63030,080
H574Clubs (Hospitality)4244132,2402,250
I611Road Freight Transport5,2165,12621,73021,660
I612Road Passenger Transport2,6592,7818,5709,090
I620Rail Transport1841842,1102,060
I630Water Transport1021752,0402,040
I640Air and Space Transport5345288,8108,970
I650Other Transport74440130
I661Services to Road Transport112111440440
I662Services to Water Transport1631793,6603,560
I663Services to Air Transport82861,4101,430
I664Other Services to Transport1,9982,01211,14011,660
I670Storage3673762,0402,130
J711Postal and Courier Services2,8413,06312,90013,780
J712Telecommunication Services59968110,38012,640
K731Central Bank33270380
K732Deposit Taking Financiers1,8061,72524,84024,870
K733Other Financiers4134111,8701,950
K734Financial Asset Investors3,6323,5572,6101,420
K741Life Insurance and Superannuation Funds1,7651,7643,7403,670
K742Other Insurance5405145,6506,150
K751Services to Finance and Investment1,2081,3534,7105,070
K752Services to Insurance1,4771,4834,7804,870
L771200Commercial Property Operators and Developers nec27,13428,85614,71013,760
L771210Commercial Property Body Corporates107136930
L772Real Estate Agents7,3617,40113,25013,230
L773Non-Financial Asset Investors2,3922,6441,4001,120
L774Machinery and Equipment Hiring and Leasing2,0892,2335,9906,260
L781Scientific Research2232106,2305,730
L782Technical Services4,6254,89717,01018,010
L783Computer Services3,4053,87310,65011,290
L784Legal and Accounting Services4,2834,47626,05027,110
L785Marketing and Business Management Services7,6558,66722,99027,450
L786Other Business Services7,0047,19632,69033,540
M811Government Administration2,2431,99647,29042,940
M812Justice81891,7501,930
M820Defence837114,29012,000
N841Preschool Education2,2182,1746,8006,390
N842School Education2,7562,75157,13055,840
N843Post School Education11911524,13025,760
N844Other Education2,0922,21710,27011,210
O861Hospitals and Nursing Homes34133046,56044,720
O862Medical and Dental Services4,8485,01213,60013,610
O863Other Health Services3,0573,56211,33016,810
O864Veterinary Services4915062,2502,270
O871Child Care Services6415813,6003,750
O872200Residential Care Services nec8438954,2204,350
O872900Non-Residential Care Services nec6257863,8604,690
P911Film and Video Services8168582,5502,810
P912Radio and Television Services2582694,8605,060
P921Libraries2712712,7702,770
P922Museums1471621,1401,160
P923Parks and Gardens1301421,3501,270
P924Arts1,4081,5152,3002,490
P925Services to the Arts354377810810
P931100Horse and Dog Racing7026591,9501,840
P931200Sports Grounds and Facilities nec6847083,6803,700
P932Gambling Services1711791,2503,170
Q951Personal and Household Goods Hiring5095221,7001,740
Q952Other Personal Services5,8446,32417,33017,890
Q962100Business and Professional Associations1,0009302,6802,270
Q962200Labour Associations134160580740
Q963Public Order and Safety Services1,4741,54614,52015,810
Q970Private Households Employing Staff2517380150
             Total253,425264,3651,309 3701,338 370

Table 17.26. FULL-TIME EQUIVALENT PERSONS* ENGAGED BY ANZSIC MAJOR DIVISION AND REGIONAL COUNCIL AREA (1997 full coverage, economically significant enterprises†)

Regional councilAgriculture, forestry and fishingMiningManufacturingElectricity, gas and water supplyConstructionWholesale tradeRetail tradeAccommodation, cafes and restaurantsTransport and storageCommunication servicesFinance and insuranceProperty and business servicesGovernment administration and defenceEducationHealth and community servicesCultural and Recreational servicesPersonal and other servicesTotal

*Full-time equivalent (FTE) persons engaged equal the sum of the full-time persons engaged plus half the part-time persons engaged.

Generally defined as those enterprises with greater than $30,000 annual GST expenses or sales, or in a GST-exempt industry.

Source: Statistics New Zealand

Northland1,6402005,7203803,2901,6505,8902,1201,5404608503,0801,1903,4403,4406301,35036,860
Auckland1,80043091,1202,02033,70049,34055,75017,45024,53010,47017,50065,77012,94027,26030,15012,43014,850467,510
Waikato4,4501,19020,3601,4109,2805,99015,6205,6304,0002,0602,64011,4103,67010,13010,8102,3303,710114,680
Bay Of Plenty3,59011012,6205606,6904,15010,5903,9203,6209401,6506,9802,2405,1006,3201,6102,37073,030
Gisborne1,080251,7701509706501,8705104601702508504201,3501,35019061012,680
Hawke's Bay2,2905510,0704903,3902,6406,4601,8201,8006301,1003,5801,4103,4804,1406901,47045,480
Taranaki6207908,1304702,7701,9004,7701,3201,3805607602,8209702,5102,93068094034,330
Manawatu-Wanganui2,0909512,8306004,9403,89010,3803,5202,0901,3801,7106,4506,3507,6806,9701,3402,59074,870
Wellington1,32012021,5502,10010,53012,58019,2507,2807,8804,92013,76028,05015,94013,61011,5905,1007,880183,460
Total North Island18,8703,020184,1608,16075,56082,760130,58043,55047,30021,59040,230128,98045,12074,56077,73024,99035,7601,042 910
Tasman860402,3801509704801,5705404806515075015076039026024010,200
Nelson1,14063,620651,1601,1502,2308109703304501,7405601,1501,61025066017,890
Marlborough990552,7901101,1204302,0308305601502409101,46064087018032013,670
West Coast7206901,5601407603101,4401,04056013017056043074097023030010,720
Canterbury2,89020036,9101,31012,44012,84022,6108,7008,9803,1204,70017,8105,77012,71015,0803,9405,830175,860
Otago2,11023010,8406304,8902,7708,8004,5102,8007501,5805,8002,1406,4705,8301,7101,88063,720
Southland1,8502208,6802602,3401,6804,5801,7501,5503208602,2101,2402,1802,5005001,05033,750
Total South Island10,5601,43066,7802,66023,65019,66043,24018,20015,8904,8308,13029,77011,74024,63027,2807,06010,270325,800
Extra-council islands and shipping150030393151212366620396280
Total New Zealand29,5704,460250,96010,82099,220102,430173,84061,75063,20026,42048,370158,76056,87099,220105,01032,05046,040 1368,970

Table 17.26 is also based on a snapshot of the Business Frame and shows full-time equivalent persons engaged by regional council areas, as at February 1997. The table is not a measure of total employment. Farms are not included, nor are some other businesses, namely: property owners', nonprofit organisations; and non-trading and dormant companies, religious organisations and sporting and recreational clubs.

Contributors

  • 17.1 Professor Gary Hawke, Institute of Policy Studies, Victoria University of Wellington.

  • 17.2-6 Statistics New Zealand.

Further information

Balance of Payments

Balance of Payments, Concepts, Sources and Methods 1991. Department of Statistics, 1992

Balance of Payments Manual (4th edition). International Monetary Fund, 1977.

Balance of Payments Manual (5th edition). International Monetary Fund, 1993.

Overseas Debt

External Debt: Definition, Statistical Coverage and Methodology. The World Bank et al, 1988.

Debt Stocks, Debt Flows and the Balance of Payments. Organisation for Economic Co-Operation and Development, 1994.

International Investment Position

New Zealand's International Investment Position 1994-95. Statistics New Zealand, 1996.

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 Institutional Sector Accounts: Issues and Experimental Series 1987-1995. Statistics New Zealand, 1996.

New Zealand System of National Accounts. Department of Statistics (various years) and Statistics New Zealand (annual).

New Zealand System of National Accounts, Concepts and Design. Department of Statistics. 1983.

Quarterly Gross Domestic Product: Sources and Methods. Statistics New Zealand, 1996.

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.

Inter-industry Update 1991. Statistics New Zealand.

Business statistics

Australian and New Zealand Standard Industrial Classification. Australian Bureau of Statistics and Statistics New Zealand, 1997.

New Zealand Business Activity Statistics. Statistics New Zealand (annual).

Chapter 18. Agriculture

Rabbits in the long grass in Central Otago before the impact of calicivirus disease.

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 and goats.

Cereal crops are grown 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.

18.1 Current situation and trends

Agricultural produce makes up more than half of New Zealand's merchandise exports. Uniquely, amongst the developed countries, New Zealand farmers are almost totally exposed to world market forces. They receive no subsidies from government and have to compete with subsidised production from other producing countries. However, the GATT Uruguay Round Agriculture Agreement began to take effect in 1995. This Agreement imposes progressive reductions on the subsidies that other countries can give to agricultural production and exports. It is also increasing access opportunities for New Zealand exports into overseas markets.

New Zealand's milk production for the year ended May 1997 was the highest on record at 882,000 tonnes of milk solids, largely because of favourable weather conditions and a continued increase in the number of dairy cows in milk, by 1.6 percent to reach 3.36 million by June 1997. The average dairy company payout for the season was $3.67/kg of milk solids, a fall of 8 percent from the previous season's level. Production for the season ending 30 May 1998 is expected to reach a new record level of around 900 million kg of milk solids.

Total sheep numbers remained stable at 47.2 million at 30 June 1997, while sheepmeat production rose to 542,000 tonnes in the year to 30 September 1997. Wool production fell to 203,300 tonnes.

The New Zealand beef cattle herd, which peaked at 5.2 million head at June 1995, fell to an estimated 4.7 million head on 30 June 1997. Beef and veal production rose to around 646,000 tonnes (carcass weight equivalent) in the year ended 30 September 1997.

Apple production remained stable at 564,000 tonnes in the year ended 30 September 1997.

FARMLAND
By land use

Table 18.1. FARMLAND USE BY REGIONAL COUNCIL AREA AS AT 30 JUNE 1996

Regional CouncilNumber of farmsGrazing, arable, fodder and fallow landLand in horticulturePlantations of exotic timberOther landTotal land

1. Symbols used in this table:

“c” denotes an estimate that has been suppressed for reasons of respondent confidentiality.

“s” denotes an estimate that has been suppressed for reasons of very poor statistical quality.

2. Chatham Islands data has been combined with the South Island total.

Source: Agriculture Production Survey, Statistics New Zealand, for the year ended 30 June 1996

Northland RC5,523606,5557,069..s89,998855,468
Auckland RC5,033220,86911,107..s28,587300,895
Waikato RC11,4281,291,0789,863..s172,4251,755,461
Bay of Plenty RC5,169286,30012,795222,793100,442622,329
Gisborne RC1,338507,696..s..s78,590736,490
Hawke's Bay RC3,627737,28917,125221,788124,7991,101,000
Taranaki RC3,810416,4461,35423,46052,934494,194
Manawatu-Wanganui RC6,3441,362,95910,262..s120,4701,609,691
Wellington RC2,243421,8182,212..s41,934513,146
            Total, North Island.44,5145,851,01083,9041,243,583810,1797,988,675
Tasman DC1,855114,171..s..s..s267,428
Nelson CC114..s..s..s..s14,990
Marlborough DC1,365546,957..s..s..s698,815
West Coast RC858175,902..s27,297181,361385,746
Canterbury RC9,1393,121,32317,847..s..s3,406,299
Otago RC3,7892,279,3394,671..s..s2,487,441
Southland RC4,3681,117,658..s..s..s1,237,550
            Total, South Island21,5317,414,42139,083439,633665,3018,558,438
            Total New Zealand66,04513,265,3122,9881,683,2161,475,47916,547,3

Table 18.2. LAND USE BY FARM TYPE, AS AT 30 JUNE 1996

Farm typeNumber of farmsGrazing, arable, fodder and fallow landLand in horticulturePlantations of exotic timberOther landTotal land

1. Symbols used in this table:

“c” denotes an estimate that has been suppressed for reasons of respondent confidentiality.

“s” denotes an estimate that has been suppressed for reasons of very poor statistical quality.

Source: Agriculture Production Survey, Statistics New Zealand, for the year ended 30 June 1996

Sheep-beef cattle farming4,1392,149,704..s28,109225,5692,406,150
Sheep farming12,0766,722,1183,37952,563342,1897,120,249
Beef cattle farming8,731944,351..s7,013135,2631,088,281
Dairy cattle farming16,4651,892,9453,06326,28795,4592,017,754
Poultry farming (meat)410..s..s..s..s..s
Poultry farming (eggs)1713,125109..s..s3,642
Pig farming74529,078197396..s30,423
Horse farming1,08727,942..s..s..s29,157
Deer farming2,179274,8962973,82512,577291,596
Mixed livestock1,749470,961..s25,74838,820537,685
Livestock farming nec223..s..s1,280..s..s
Grain-sheep and grain-beef cattle farming734140,559..s8581,167143,785
Grain growing1,076157,0014,5829531,533164,069
Vegetable growing2,78086,50643,9751,496..s135,750
Grape growing6537,8847,429..s..s16,007
Apple and pear growing1,75812,45318,849902..s33,520
Stone fruit growing281..s1,947..s..s3,272
Kiwi fruit growing1,72212,52411,6271,0721,66526,889
Citrus growing534..s2,6161343726,113
Berry fruit growing3162,804..s1974695,671
Fruit growing nec98910,4334,288..s..s17,157
Plant nurseries7082,3682,553..s..s5,570
Cut flower and flower seed growing1,640..s2,671..s..s13,493
Tobacco and hops growing..s..s..s..s..s..s
Cultivated mushroom growing2555188..c..c644
Crop and plant growing nec321..s3,092..s..s..s
Plantations3,416195,7498521,526,794544,4092,267,805
Idle land1,07722,65958034957,95481,542
            Total all farm types66,04513,265,3122,9881,683,2161,475,47916,547,3

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 market 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 has been increasing over the past five years, with total fertiliser application rising by 567,800 tonnes from 1991 to 1996. Following the removal of farming subsidies in 1984, farmers were cautious about extra expenditure on fertiliser. The amount of fertiliser being sold now is a return to pre-1984 levels.

A Taranaki farmer working the land with his Clydesdales, 1997.

Table 18.3. FARM EMPLOYMENT, AS AT 28 FEBRUARY 1996

Farm typeWorking ownersPaid workersUnpaid workers
Full-time1Part-time2Full-time1Part-time2Full-time1Part-time2

1Full-time = 30 hours or more per week.

2Part-time = fewer than 30 hours per week. Note: Caution should be used when interpreting this data. 1995 employment data is released with a caveat because of under statement for some entries.

1. Employment has been randomly rounded to comply with Statistics New Zealand's policy on confidentiality. Consequently totals may not necessarily reflect the exact value of their components.

2. “..s” denotes an estimate that has been suppressed for reasons of very poor statistical quality.

Source: Agriculture Production Survey, Statistics New Zealand, for the year ended 30 June 1996

Plant nurseries6503401,470540..s155
Cut flower and flower seed growing1,320940640800..s490
Vegetable growing2,7601,2602,4401,980..s800
Grape growing430310870770..s180
Apple and pear growing1,3509202,0301,260..s340
Stone fruit growing150..s110110..s..s
Kiwi fruit growing1,2401,0909901,730185..s
Citrus growing320320230..s..s230
Berry fruit growing220200..s..s..s..s
Fruit growing nec490720210410..s400
Grain growing1,050390330230..s..s
Grain-sheep and grain-beef cattle farming780..s230150..s220
Sheep-beef cattle farming3,7201,4801,9401,2904701,280
Sheep farming11,8304,1503,7303,0301,4604,070
Beef cattle farming4,2205,3907106806403,070
Dairy cattle farming22,2606,0307,4503,0901,7304,040
Poultry farming (meat)330210350..s..s..s
Poultry farming (eggs)210..s220260..s..s
Pig farming590370400120..s..s
Horse farming450650..s..s..s360
Deer farming1,2501,290390320150760
Mixed livestock1,380970490430..s820
Plantations6801,4001,190..s..s970
Livestock farming nec..s..s..s..s..s..s
Tobacco and hops growing..s..s..s..s..s..s
Cultivated mushroom growing..s..s120..s..s..s
Crop and plant growing nec..s..s140..s..s..s
Idle land330520200..s..s..s
            Total58,56029,97027,49019,8006,59019,960

The nutrient value of the total fertiliser applied is now higher, as a result of the changeover from superphosphate fertiliser to other fertilisers that have higher nutritive values. The productive response to the total fertiliser applied in the 1990s is therefore higher than when similar tonnages were applied in the early 1980s.

AGRICULTURAL PRODUCTION
By commodity

Table 18.4. MANUFACTURED FERTILISER AND OTHER FERTILISER SOLD BY FERTILISER WORKS

Year ended 30 JuneSuperphosphatic fertiliserOther fertiliser including phosphatic rockTotal
Source: Ministry of Agriculture
 tonnes
19881,092,53099,3461,191,876
19891,215,288157,0181,372,306
19901,309,602194,4461,504,048
19911,095,457217,5531,313,010
19921,216,531421,6991,638,230
19931,493,108456,0961,949,204
19941,629,889593,9572,223,846
19951,424,316622,9242,047,240
19961,577,928627,6402,205,568

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.

Tables 18.5 and 18.6 show the consumption and production of major categories of products for the agricultural sector over recent years.

Table 18.5. AGRICULTURE PRODUCTION ACCOUNT: ANALYSIS OF INTERMEDIATE CONSUMPTION

ItemYear ended March
1991-921992-931993-941994-95

1This series does not measure total capitalised development.

Source: Statistics New Zealand

 $(million)
Purchase of livestock625804815581
Feed and grazing374509491R544
Animal health and breeding275338359R348
Weed and pest control159197179R178
Fertiliser, lime and seeds663864846R788
Fuel and power354384350R387
Repairs and maintenance704811794R689
Freight150164158R158
Other (not elsewhere classified)1,5011,6281,861R1,836
 4,8065,6995,854R5,511
Less capitalised development1191525R23
            Total intermediate consumption4,7875,6845,829R5,488

Table 18.6. GROSS AGRICULTURAL PRODUCTION

CommodityYear ended March
1990-911991-921992-931993-941994-95

1Wool output has been revised due to changes in wool stocks methodology.

2Other products nec have been revised due to timber stock change now being recorded separately and a revision of timber sales figures.

3Revisions have occurred to stock changes as a result of methodology updates.

4Non-farm income category, introduced in July 1994, includes rental, income from farm-stays etc.

Source: Statistics New Zealand

 $(million)
Wool1859811729702951
Sheep8838451,0321,216R1,102
Cattle1,3731,4431,5511,5311,379
Pigs126126133147R140
Dairy products1,6372,2342,5232,5842,593
Poultry products208196206219R225
Crops and seeds312314342361R312
Fruit, nuts and oilseeds692833725591736
Vegetables419390447506R577
Other horticultural products160177195208R229
Agricultural services758807876941R860
Other products nec2150177237220R205
Value of change in stock3
Sheep58-63-829R-49
Cattle7411756412R249
Pigs, deer and goats4923-2229R-24
Timber26313553R43
Sales of live animals671701876887624
Non-farm income4115135170169186
            Gross output8,5709,29710,02910,785R10,338

Farm price indexes

The Farm Expenses Price Index measures price changes of fixed inputs of goods and services to the farming industry. A selection of the published indexes is shown below. Capital expenditure and depreciation are not covered. (For price indexes of capital expenditure, refer to the Capital Goods Price Index in section 26.3).

Farm type indexes from the Farm Expenses Price Index are also used in the agricultural inputs of the Producers Price Index in section 26.2.

Table 18.7. FARM EXPENSES PRICE INDEX1

QuarterSheep and beef farmsDairy farmsHorticultural farmsCropping and other farmsAll farms

1All inputs excluding livestock. Prices used exclude GST. Base: December quarter 1992 (=1000).

1995-Mar1024103699910191022
    Jun10321047100510221030
    Sep10301047100210211028
    Dec10321048100010221029
1996-Mar10291043100110261027
    Jun10301044100410311029
    Sep10441062101210381042
    Dec10491064101710461047
1997-Mar10361050101010411035
    Jun10361039101110331027
    Sep10331039101110371031
    Dec10441048101710431040

Table 18.8. FARM EXPENSES PRICE INDEX—ALL FARMS1

Input typePercentage of base expenditurePrice index for quarter ended
1996 Dec1997 MarJunSepDec

1Base: December quarter 1992 (=1000).

Source: Statistics New Zealand

Administration4.911051103111211301138
Animal health and breeding4.110851088108110921094
Dairy shed expenses0.510321041104510451038
Electricity1.611081116111311181131
Feed, gazing, cultivation and harvesting7.610651059105810571053
Fertiliser, lime and seeds9.2928927927924931
Freight1.9947935920911923
Fuel3.8948949933929936
Insurance premiums1.710111018101810091017
Rent and hire2.212111217124312751287
Repairs, maintenance, motor vehicle repairs10.310481047104410491053
Packaging costs3.5884881917915914
Shearing3.710621062106311241149
Weed and pest control2.910351041104210491046
Livestock purchases10.79671034103210481064
            Sub-total excluding livestock57.910261025102710341039
            Sub-total including livestock68.610171027102710361043
Local and central government rates and fees3.611631163116311631190
Interest rates17.310841022982973995
Wages and salaries10.510621068106110631066
            All inputs excluding livestock89.310471035102710311040
            All inputs including livestock10010381035102810331042

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 referred to in the following sections.

Ministry of Agriculture and Forestry (MAF). On 1 March 1998, the Ministry of Agriculture and the Ministry of Forestry merged together into a new Ministry of Agriculture and Forestry, Te Manatu Ahuwhenua, Ngaherehere. It's mission is to help the Government create an environment allowing the food, fibre and timber industries to make the best contribution to sustainable economic growth and environmental quality, while managing risk to human, animal and plant health and safety, and to resources.

MAF Policy advises the Ministers of Agriculture, Forestry and Biosecurity and the government on policies and legislation affecting the land-based sectors. It has five directorates: International policy; Biosecurity policy; Sector performance; Sustainable resource use; and Policy information.

MAF Policy also contributes to and comments on relevant policies and positions being developed by other departments, represents government policy both domestically and internationally, and provides information to promote and facilitate sustainable resource use practices and agricultural and forestry development on Maori land.

MAF Regulatory Authority (MAF Reg) is responsible for developing and setting New Zealand standards for: agricultural, horticultural and forestry biosecurity; food safety for exports of horticultural, dairy, meat and seafood products and for meat and dairy products for domestic consumption; pest and disease management; agricultural compounds; and animal welfare.

To achieve this, MAF Reg negotiates agreements on sanitary (animal, including human, health) and phytosanitary (plant health) standards with trading partners and in international fora; sets and approves rules and standards within New Zealand; accredits agricultural security and quality assurance systems and providers; audits compliance with systems and standards; and purchases regulatory services on behalf of the government.

The groups within MAF Reg are: Plants; Forests; Meat and seafood; Animal health and welfare; Dairy; and Agricultural chemicals and veterinary medicines.

MAF Operations has three subgroups:

The Quarantine Service provides inspection and clearance services for incoming passengers, cargo and vessels or aircraft, and identifies and protects against potential biosecurity risks; ensures that import health standards and export standards are complied with; and maintains capability to respond to exotic diseases and pests.

The Verification Agency validates inspection processes, verifies and certifies the following products: export and domestic meat; game and game meat products and by-products; dairy products; seafood and by-products; plants; petfood; and food preparation, packing and storage facilities.

The New Zealand Animal Health Reference Laboratory and Exotic Disease Control Centre at Wallaceville has responsibility for national reference and diagnostic services, and management and contingency planning of responses to exotic diseases and pests.

MAF Quality Management (MQM) helps clients in the agriculture and food sectors to achieve their quality objectives. Core service areas include:

Market Assurance: helping clients to achieve the product quality desired by their chosen markets (eg tenderness) and providing an independent endorsement of this quality;

Outbreak Response: New Zealand's frontline against exotic pests and diseases that could potentially threaten the nation's livelihood as a primary producer.

MQM has been internally separated from the rest of the Ministry of Agriculture and Forestry until decisions about its long-term role and structure are made by the government.

18.2 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 an increasing amount of 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 8 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.

Livestock numbers and types

Probably New Zealand's best known statistic is that it has more than 20 times as many sheep as people (actually now closer to 13 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.

Trends in livestock numbers are largely determined by world market prices for farm products, including meat, wool, dairy products and, more recently, venison and goat fibre.

Over the last 14 years the sheep population has declined from 70.3 million at June 1982 to stand at around 47.4 million at June 1997. The beef cattle population fell to 4.9 million at June 1997. The total number of dairy cattle at June 1997 is estimated to have risen to 4.23 million.

Sheep. The most common 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 breeds as the coarse-woolled Border Leicester, suited to the wet conditions on many farms. A number of breeds that 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.

Controversy raged, July 1997.

FARMLAND
By type of farm

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.

Table 18.10. DISTRIBUTION OF LIVESTOCK, AS AT 30 JUNE 1996

Regional CouncilTotal dairy cattleTotal beef cattleTotal sheepTotal pigsTotal deer

“s” denotes an estimate that has been suppressed for reasons of very poor statistical quality.

Chatham Islands data has been combined with the South Island total.

Source: Agriculture Production Survey. Statistics New Zealand, for the year ended 30 June 1996

Northland RC402,230544,411706,3375,25911,304
Auckland RC162,334184,191399,92626,275..s
Waikato RC1,553,004771,5863,367,98079,485148,822
Bay of Plenty RC318,634150,853575,582..s68,180
Gisborne RC9,151363,6762,046,8952,40222,174
Hawke's Bay RC35,898523,8654,370,41710,484102,393
Taranaki RC613,697141,753857,256..s13,012
Manawatu-Wanganui RC324,459782,9847,216,17740,755130,909
Wellington RC93,363201,8072,115,651..s27,086
            Total, North Island3,512,7703,665,12721,656,3234,770547,761
Tasman DC54,42260,432405,397..s33,790
Nelson CC1,454..s17,439..s340
Marlborough DC24,93579,081897,065..s16,830
West Coast RC91,02259,931172,864..s..s
Canterbury RC246,230490,0879,370,769143,164278,082
Otago RC96,695283,6837,317,03919,21999,026
Southland RC137,552204,1077,457,393..s190,630
            Total, South Island652,3281,187,05125,737,3189,304644,377
            Total New Zealand4,165,0984,852,17947,393,3424,0731,192,138

Table 18.11. CATTLE CATEGORIES

CategoryAs at 30 June
19951996
Source: Agriculture Production Survey. Statistics New Zealand, for the years ended 30 June 1995 and 1996.
Dairy cows and heifers in milk or calf3,153,2303,219,546
Dairy cows and heifers not in milk or calf158,391182,158
Dairy heifer yearlings and calves (including bobby)740,648730,994
Dairy bulls for breeding31,54332,400
Other dairy cattle6,004-
            Total, dairy4,089,8174,165,098
Beef cows and heifers bred from1,616,8601,595,548
Beef cows and heifers not bred from501,460527,855
Bulls—all ages692,273548,201
Other beef cattle2,371,9142,180,575
            Total, beef cattle5,182,5084,852,179
            Total cattle9,272,3259,017,277

LIVESTOCK ON FARMS Total numbers

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. There are currently around 1.2 million deer in New Zealand.

Goats. In the 1980s there was 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.

Table 18.12. SHEEP CATEGORIES

As at 30 JuneBreeding ewes including hoggetsOther sheepTotal sheep

1Changes in survey population definition introduced in 1994.

2Figures do not equate to the total due to the estimates for the components of livestock types being calculated independently from the estimates for the totals.

Source: Statistics New Zealand

  (000) 
199042,09715,75557,852
199139,83315,32955,162
199238,39914,16952,568
199336,63813,66150,298
1994135,75413,61849,4662
199534,99913,81848,816
199634,39212,97246,364

18.3 Meat

Meat industry products are New Zealand's largest export income earner, accounting for around one dollar in every six earned overseas. New Zealand's main meat exports are lamb, mutton and beef. About 90 percent of lamb, 75 percent of mutton and 81 percent of beef produced in New Zealand was exported overseas. Increasingly, lamb exports are in a further processed form, particularly cuts. Mutton tends to be exported boneless, and beef as boneless product. The domestic market absorbs over 99 percent of the pigmeat and poultry produced in New Zealand.

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.

AGRICULTURAL EXPORTS
By region

Earthworms help this dairy farmer save on fertiliser costs.

Young emus and New Zealanders.

MEAT PRODUCTION
Total inspected, bone-in

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 bovine with masculine characteristics.

Bobby calves—Bobby veal carcasses are derived from milk-fed bovine calves generally under two weeks of age.

Veal—Veal is no longer an export meat type as numbers are now insignificant. Previously defined as maiden female, castrated male, or entire males (not showing masculine characteristics) that are up to 14 months of age.

A standard system of classifying meat is used in New Zealand. The classification systems for beef and sheepmeats have been developed by the New Zealand Meat Producers Board in consultation with producers and the Meat Industry Association.

Export meat is classified according to the type of animal, and includes maturity, sex, fat content and muscling. Weight is relevant for payment purposes.

Schedule prices

Some 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.

Season average net schedules are compiled by the New Zealand Meat and Wool Boards' Economic Service and are reproduced for the last six years in table 18.16. The schedule prices quoted are inclusive of pelt, slipe wool and hide payments.

Table 18.13. MEAT PRODUCTION1

CarcassesYear ended September
1992R1993R1994R1995R19961997P

1Inspected meat production at meat export works and abattoirs.

Source: Ministry of Agriculture

 tonnes (000)
Beef522558523606606620
Veal141414232726
Mutton158134125144134124
Lamb400352398389375419
Pigmeat474949515048
            Total1,1411,1071,1091,2131,1921,237

Table 18.14. LIVESTOCK SLAUGHTER AT MEAT EXPORT WORKS AND ABATTOIRS

AnimalsYear ended September
1992199319941995R1996R1997R
Source: Ministry of Agriculture
 head of stock (000)
Lambs28,02023,34226,17426,64624,68026,402
Sheep7,6826,5645,7966,8246,2805,555
Adult cattle2,1332,2602,0422,4102,4362,424
Calves and vealers7807938141,2371,3891,387
Pigs807817822846813772

Table 18.15. EXPORT MEAT PRODUCTION

Type of meatYear ended September
19911992199319941995P

1Figures may not add due to rounding.

Source: New Zealand Meat Producers Board

 tonnes (000) shipping weight
Lamb—carcasses123.9135.779.2108.696.4
            —other162.2176.0184.9194.2192.4
Mutton—carcasses46.754.922.921.135.7
        —other29.928.739.838.138.7
Beef—manufacturing207.2219.0242.0216.898.7
Beef—other74.075.484.683.7248.6
Veal7.27.87.96.712.3
Goat2.32.01.81.61.7
Variety meats31.237.340.841.952.9
Inedible meat and offal19.316.917.318.017.2
            Total1703.9753.6721.3730.7794.5

Table 18.16. AVERAGE NET SCHEDULE PRICES

Classification1991-921992-931993-941994-951995-961996-97

1Includes skin and one kilogram wool pull.

Source: Meat and Wool Boards' Economic Service

Lamb ($/head)1
PL 9.1-13.2 kg21.1831.9635.2326.8327.2831.32
PM 13.3-17.0 kg29.1941.0841.3234.5938.0143.80
YL 9.1-13.2 kg23.3431.7934.0126.0726.6131.31
Mutton ($/head)1
MX 22 kg and under13.1626.3426.8822.5824.8030.53
ML 22 kg and under14.6929.1528.4825.1028.4233.68
Beef (cents/kg)
P2 Steer 245.5-270 kg272.1300.5270.9213.4172.2175.0
K2 Steer 245.5-270 kg268.1294.6270.3216.0  
M Cow 145-170 kg211.5221.8200.1157.3119.8133.7
M Bull 245.5-270 kg282.0291.2259.5210.0173.1178.9

Red meat production

The New Zealand production season runs from 1 October to 30 September. New Zealand accounts for 1.3 percent of global beef and veal production, and 8.0 percent of global lamb and mutton production.

In the 1996-97 season slaughterings increased for lamb but decreased for sheep and cattle. Record weights were achieved for lamb, mutton and nearly all classes of beef in 1996-97. This contributed to a significant increase in export lamb production and a small increase in export beef production. The record average weight for mutton only partially offset the decline in slaughter to result in a fall in export mutton production. Bobby veal production fell due to a decline in slaughterings.

New Zealand Meat Producers Board

The New Zealand Meat Board Producers Board exists primarily to further the interests of New Zealand's 32,000 meat producers. The board does not buy or sell meat. Funded by producers through a levy on stock slaughtered, the board works to ensure that producers in New Zealand of stock from which meat is derived obtain the best possible long-term returns. It is involved in market access, market development and information, international promotion, carcass classification, quality assurance and provides market support through offices in Brussels, London, Tokyo, Washington and Seoul.

The Meat Board funds a number of organisations including the Meat Research and Development Council, the Beef Council, the Sheep Council and provides partial funding for the Beef and Lamb Marketing Bureau and the Meat and Wool Boards' Economic Service.

Its levy income totalled $25.6 million in the year ended September 1997.

Table 18.17. MEAT BOARD LEVIES, 1 OCTOBER 1996

Class of meatCents per head1

1Excluding GST.

Source: Meat and Wool Boards' Economic Service

Lambs, other sheep and goats47
Bobby calves24
Cows, vealers and other adult cattle420

MEAT CONSUMPTION
Per person

MEAT PRODUCTION
Export, bone-in

Farmer feeding out hay to his cattle from the deck of a EVU 600 electric utility farm vehicle.

Export marketing

At September 1997 New Zealand meat was sold overseas by 93 companies fully licensed by the Meat Board. New Zealand is a major exporter of sheepmeat, accounting for 54 percent of the world export trade. It is a smaller player in the global market for beef, accounting for 6.4 percent of all world beef exports.

New Zealand's major meat markets include the United Kingdom, Germany, France, Saudi Arabia and the United States for lamb; the United Kingdom, Germany, South Korea and France for mutton; and the United States, Canada, Japan, South Korea and Taiwan for beef. In the 1996-97 season 55 percent of all sheepmeat exports went to the European Union. The United States alone accounted for 56 percent of all beef exports in 1996-97. All export figures are in shipped weight.

Sheepmeat. During the 1996-97 season lamb exports totalled 286,884 tonnes, a decrease of 3.7 percent on the 1995-96 season. Exports to the United Kingdom fell from 84,714 tonnes in 1995-96 to 81,224 tonnes in 1996-97. Lamb exports to other European Union markets increased by 1.0 percent to 78,310 tonnes.

Total mutton exports decreased by 4 percent to 63,959 tonnes. Shipments to the European Union decreased by 17 percent to 32,205 tonnes. The United Kingdom, New Zealand's largest single market for mutton, took 17,133 tonnes. All export figures are in shipped weight.

Under the GATT Uruguay Round agreement New Zealand's lamb, mutton and goat exports to the European Union are limited by a tariff rate quota of 226,700 tonnes.

Beef and veal. New Zealand's biggest market for beef and veal in 1996-97 was the United States, with shipments totalling 193,674 tonnes. Canada was the next largest market, with 40,697 tonnes. Exports to South Korea, previously the third largest beef market, fell 41 percent to 14,099 tonnes. Japan became the third largest market in 1996-97, taking 21,737 tonnes. All export figures are in shipped weight.

Imports of beef, veal, mutton and goatmeat into the United States are limited by a tariff rate quota of 213,402 tonnes which replaced the voluntary restraint agreements on 1 January 1995.

Meat prices

The International Meat Trade Association in the United Kingdom compiles a weekly London wholesale meat price list. The London wholesale prices in table 18.18 are an indicative measure of world prices for New Zealand lamb.

Table 18.18. LONDON WHOLESALE LAMB PRICES

Mid-month MarchP ClassY Class
9-12.5 kg13-16 kg16.5-20 kg9-12.5 kg13-16 kg
Source: Meat and Wool Boards' Economic Service
 Pence a kilogram
1992138.9133.4124.6138.9132.3
1993172.0168.7157.7172.0168.7
1994194.0191.8178.6194.0191.8
1995R160.9164.2163.1158.7163.1
1996R167.6167.6164.2162.0165.3
1997R209.4209.4205.0203.9208.3

Table 18.19 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 18.19. UNITED STATES CIF BEEF PRICES

Mid-month MarchManufacturing bullManufacturing cow
Source: Meat and Wool Boards' Economic Service
 US cents a kilogram
1991R275.6264.6
1992R271.2257.9
1993R266.8256.8
1994R285.5282.2
1995R216.1209.4
1996R176.4165.3
1997220.5208.3

18.4 Wool

New Zealand sheep are largely dual purpose wool/meat animals and their wool is predominantly strong. New Zealand is the world's largest producer of crossbred (strong wool), 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, in knitwear and in 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 world-wide 34 percent of New Zealand wool is used in machine-made carpets, 12 percent in handknotted and hand-tufted carpets, 44 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 18.20. WOOL PRODUCTION1

Season ended 30 JuneFlock sizeYield/headTotal wool production (clean)Average auction price (clean basis)

1Wool quantities are measured at point of sale rather than at source, and are therefore not strictly measures of production.

Source: Wools of New Zealand

 millionkgtonnes (000)cents/kg
199057.95.3227422
199155.25.4221437
199252.64.9193433
199450.35.6214414
199549.55.8213554
199648.85.5199494
199747.45.8203443

Wools of New Zealand

Wools of New Zealand (formerly 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 5 percent levy on gross wool receipts ($39.3 million in 1996-97) and interest on investments ($18.5 million in 1996-97). The principal expenditure of the board is wool promotion and research ($69.3 million in 1996-97).

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 1997, training courses were provided for more than 1,100 shearers and 600 woolhandlers and woolclassers. Education and extension programmes were also held on wool production, harvesting and packaging.

Research and development. The board has a comprehensive research, development and technology transfer programme and in 1996-97 invested $8 million. 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.

WOOL EXPORTS
By destination

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.

Markets for wool

The most common way of selling wool in New Zealand is by open auction; 51 percent was sold this way in 1996-97. 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 (34 percent of sales in 1996-97).

Table 18.21. WOOL SOLD AT AUCTION

Season ended JuneGreasy and scoured new season wool (clean equivalent)Average clean price per kilogramTotal sale value
Source: Wools of New Zealand
 tonnes (000)cents$(million)
1991153422660.6
1992140437623.2
1993116433517.3
1994125414568.3
1995119554656.5
1996107494520.0
1997104443448.0

Around 90 percent of the New Zealand clip leaves the country in a greasy, scoured, or slipe form. Seventy-five percent of exports are scoured. Of the 10 percent of the clip processed in New Zealand, roughly half is exported in product form, mainly as carpet yarn, carpets or knitted jerseys.

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 table 18.22. During 1996-97 the largest importers were China and the United Kingdom, India, Germany, and Japan.

Final destinations of end-products made from New Zealand wool are fairly stable. Much of the wool tends to be used in the same countries as it was years ago, even though the location of 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.

Table 18.22. EXPORT DESTINATIONS OF NEW ZEALAND WOOL FIBRE

Country1991-921992-931993-941994-951995-961996-97
Source: Wools of New Zealand
 clean tonnes
China47,69236,51660,26252,70250,86440,617
Nepal16,59917,71111,9076,7838,1968,630
United Kingdom19,05616,31422,95619,73717,09325,040
Japan19,70615,50314,91914,0069,89811,228
Belgium16,16711,48112,90111,1197,8828,487
India10,40611,19717,2287,5617,71612,675
Germany12,8089,70612,56314,06612,13912,034
Hong Kong9,6598,81911,93223,14316,3459,521
United States9,1758,3988,4499,7978,4338,835
Australia8,6107,68210,76113,0098,71310,283
CIS4,6661,6092,095---
Other43,33335,54140,05945,85734,36137,890
            Total   217,780181,690185,240

Net domestic consumption of wool in New Zealand is among the highest in the world on a per head basis. In 1995 this was estimated at 3.7 kg per head compared with the 1993 figures of 1.99 kg in Australia, 2.21 kg in 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.

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 25 percent of wool product export earnings in 1996-97. Carpet yarn accounted for 20 percent and other yarn for 6 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 were steady at $261 million in 1996-97. These exports are summarised in table 18.23.

Table 18.23. WOOL SECTOR EXPORT EARNINGS1

Product199119931994199519961997P

1Year ended 30 June

Source: Wools of New Zealand

 $(million) fob
Carpets/rugs65.166.067.379.072.564.3
Wool yarn75.471.459.865.459.870.0
Wool apparel7.819.017.014.214.919.8
Sheepskin final products21.930.632.246.834.720.3
Sheepskins—raw and processed20.636.140.935.057.762.4
All other14.421.320.217.020.324.2
            Total205.2244.4237.4257.3260.0261.0
Wool fibre—greasy, scoured slipe1,252.91,034.0946.3
            Total, wool sector1,510.21,294.01,207.3
Wool sector as percentage of total merchandise exports7.56.55.9

18.5 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 90-95 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-non-fat (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 byproduct 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.

Dairy organisations

There are presently 12 co-operative dairy companies, which operate around 29 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 nearly all dairy products manufactured in New Zealand. On an annual basis the companies convert approximately 9 billion litres of milk into more than one million tonnes of dairy products, of which around 900,000 tonnes is exported. The balance is consumed on the relatively small domestic market.

Table 18.24. MILK PRODUCTION AND UTILISATION

Product1989-901990-911991-921992-931993-941994-951995-961996-97
Source: New Zealand Dairy Board
 million litres
Production
Total milk production7,3027,5097,8718,0509,0038,9979,46810,648
Utilisation
Milk sent to dairy factories6,8687,0787,4547,6298,6038,6339,3259,974

Table 18.25. DAIRY FACTORY PRODUCTION

Product1991-921992-931993-941994-951995-961996-97
Source: New Zealand Dairy Board
 tonnes
Creamery butter218,351206,606223,182213,329241,537316,916
Anhydrous milkfat43,30245,66148,90452,00455,83259,098
Frozen cream-6,2788,6977,8638,65211,069
Cheese137,405144,521193,348197,370229,086253,832
Whole-milk powder250,105279,179306,448312,287298,307337,854
Infant food/nutritional products24,56328,77826,32529,60734,86935,162
Skim-milk powder136,037126,545140,895143,775172,149192,267
Buttermilk powder23,40223,49626,62927,23029,98432,710
Casein products74,19474,21679,45470,31179,15792,157
Lactose25,60326,22229,84714,67320,1326,015
Whey powders13,70813,97618,69819,00522,41443,467

DAIRY PRODUCTS
Total sales by region

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 more than 89 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 Union (EU); New Zealand; Australia; and, to a lesser degree, the United States and Canada. These five exporters supply around 90 percent of dairy products traded on the international market. Relatively smaller quantities are exported by the Nordic countries, Eastern Europe, and Latin America.

The New Zealand dairy industry has been working to diversify its markets and product range for many years. Today, major markets vary for different products. Britain and the EU remain New Zealand's most valuable market for butter. Sales to Russia are also significant.

The primary markets for casein and cheese are the United States, Japan, and the EU. New Zealand is the world's largest exporter of casein and caseinate products and is also moving forward in its range of other sophisticated and 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.

Export markets 1997. The steady fall in world dairy prices that occurred through 1996 continued into 1997. This trend was reversed for milk powders only in the second half of 1997, although in the case of butter there was a slight rise beginning at the end of the first quarter. At the end of 1997 there were signs that the butter price could fall again in 1998. Cheese prices remained stable throughout the year.

The main factors behind the lower prices were movements in exchange rates and increases in the availability of supplies out of Australia and New Zealand. The weakening of a number of European currencies, particularly the Deutschmark, against the United States dollar negated the effects of increases in European dairy products prices as the prices for most traded dairy products are in United States dollars. Favourable climatic conditions in both Australia and New Zealand saw production increase significantly in 1996-97.

Dairy product exports increased by 25 percent in 1996-97, with most regions, in particular the CIS, North America and South East Asia, recording significant increases. Exports the CIS (principally butter) more than doubled to 99,000 tonnes, putting Russia just behind Japan as New Zealand's largest single markets for dairy products.

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 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 seven seasons are given in table 18.26.

Table 18.26. PRICES FOR MILKFAT AND PROTEIN

Season ended 31 MayMilkfat componentProtein componentMilk solids
Source: New Zealand Dairy Board
 cents per kg
1991164.24275.40312
1992209.69349.49299
1993253.57422.62325
1994198.56413.66290
1995194.82442.79300
1996233.7531.13360
1997214.94457.32318

Suburban bee-keeper producing honey in Remuera.

18.6 Pigs, poultry and bees

Pigs

Domestic pork production in terms of volume of meat produced and in the number of pigs slaughtered has been declining since 1995 due to increasing pressures from the importation of competitively priced Canadian and Australian frozen pork, relatively high feed costs and pressure from increased consumer demand for chicken and cheaper beef.

For the year ending September 1997, 773,270 pigs were slaughtered, a decrease of 41,528 (or 5.1 percent) from the previous year. The tonnage of domestic pigmeat produced decreased to 47,953, a decrease of 1,958 tonnes from the previous year. During the same period New Zealand imported 9,933 tonnes (on a carcass weight basis) of pork products (an increase of 14.3 percent from the previous year) which, combined with domestic production resulted in consumption of 15.8 kg per head. This represents a slight decrease on the previous year when consumption was 16.1 kg per head.

The South Island produces slightly over 50 percent of New Zealand's total pigmeat production and this has grown substantially over the last 10 years, mainly due to the industry's close proximity to the main grain producing areas in Canterbury.

Table 18.27. PIGS

At 30 JuneBreeding sows and mated girlsOther pigs of all ages (including boars)Total pigs

1A shortened Agricultural Census was undertaken in these years and there was no question on the number of breeding sows.

2Change in survey population definition introduced in 1994.

Source: Statistics New Zealand and New Zealand Pork Industry Board

199050,990343,711394,701
19911  407,306
199251,324359,824411,148
19931  395,117
1994258,065364,701422,766
199559,250371,755431,004
1996  424,000P

New Zealand Pork Industry Board. The board is a statutory body which operates under the Pork Industry Board Act 1982. However, the industry has had an organisation since 1937, when it became one of the first farming industries to form a national organisation. Board income is sourced from a compulsory levy on all pigs slaughtered at licensed premises. The board currently comprises eight members, five of whom are elected by producers and three who are appointed by the Minister of Agriculture.

The mission of the New Zealand Pork Industry Board is, “to secure for the New Zealand producer, a profitable premium position for pork products in the food business.”

To achieve this the board aims to extend markets, conduct research and development into pig production and pork products, encourage efficient practice in pig rearing and the handling of pork products, and to collect and make available market information.

Technology transfer and research and development activities are carried out on behalf of the board by the Monogastric Research Centre at Massey University. Technology transfer is achieved by means of seminars and workshops for farmers and others involved in the industry. The board funds research into pig production and into a number of environmental issues, especially the land application of piggery effluents.

“Pig Farming”, its Code of Practice, sets out guidelines for the establishment and management of pig farms to ensure the environmental effects are minimised. The board's Environmental Taskforce meets regularly with regional and district councils to ensure that the pig farmers' point of view is represented. The board was particularly concerned about requirements in the Resource Management Act for “factory farming” which is not defined, and which if imposed on pig farming by the local authorities would have resulted in unrealistic requirements being placed on the industry. The board is succeeded in having the “factory farming” determination removed from the Resource Management Act.

A Total Quality Management culture is being developed throughout the industry, using the PQIP (Pork Quality Improvement Process) programme based on the HACCP (Hazard Analysis Critical Control Points) system, complemented by industry-agreed minimum standards. PQIP accreditation in all sectors of the industry is the ultimate objective. So far almost 50 percent of the killing capacity in New Zealand has achieved the PQIP accreditation, four pork processors have achieved PQIP (Food Safety) and ten producers have achieved PQIP on-farm. Industry-agreed minimum standards for other sectors (live transport, chilled transport, cutting floors and retail) are being developed.

The board launched a new consumer marketing campaign in August 1997, continuing with the Trim Pork brand.

Poultry

The poultry meat industry is relatively new in New Zealand and is expanding rapidly. It is now the major intensive livestock industry in this country. In 1996 the poultry industry produced 91,000 tonnes of poultry meat, almost solely for the domestic market. Of this total, over 95 percent was chicken meat produced from 61 million broiler chickens; with turkey, duck and roasting fowl making up the remaining 5 percent. Currently the industry earns almost $500 million in retail sales and provides about 3,000 jobs.

Declining prices in real terms, lifestyle changes and consumer perceptions have seen poultry consumption continue to increase, up from 14 kg per capita ten years ago, to over 25 kg per capita in 1996. Over this period total meat consumption has been relatively static, so the proportion of poultry meat consumed has increased from 15 percent to 25 percent, largely at the expense of sheep meat. Increases in chicken consumption have been mainly in the fresh and further processed areas, with almost 70 percent of chicken now sold fresh, and under 40 percent of chickens sold as whole birds.

A high level of vertical integration in the industry enables participants to maintain control over all facets of production, promote quality management, increase efficiency, and plan for the future. Poultry production maintains a competitive advantage over other meat industries because of genetic advantages and rapid rates of improvement, intensive land use, low transport costs, highly automated processing plants with continuous processing (rather than seasonal variation), consistent product quality, excellent product image, competition and economies of scale.

Table 18.28. CHICKEN PRODUCTION

YearBirdsDressed weightFreshFrozen
Source: Poultry Industry Association of NZ Inc
 numbertonnespercent
198637,709,00046,02746.153.9
198738,925,00047,77747.852.2
198842,146,00052,83549.250.8
198945,583,00058,73251.148.9
199043,469,00055,37955.244.8
199145,891,00059,03653.546.5
199248,187,00062,79255.045.0
199351,006,00069,57052.247.8
199455,844,00076,81158.641.4
199563,756,00089,15760.040.0
199660,712,00087,165--

Eggs. In 1996 New Zealand's estimated 2.45 million laying hens produced close to 62 million dozen eggs. These figures are expected to reach 2.55 million hens and 63 million dozen eggs in 1998. Over 85 percent of eggs are sold as table eggs within the domestic market, with the remainder used in the baking and catering industries. Retail sales of eggs are worth upwards of $160 million.

Total egg production has remained relatively static for the past decade, with slight drops in per capita consumption—now around 200 eggs per person annually—more than made up by New Zealand's increasing population. Most eggs produced in New Zealand are from caged hens, with free range and barn egg production accounting for 5 percent of the total. The last decade has seen a wider choice of egg types available from standard white and brown to wholegrain, vegetarian, omega-enriched, barn and free range eggs.

The late 1980s saw the abolition of both price and production controls in the egg industry and the disestablishment of the New Zealand Poultry Board. This change was followed by a dramatic reduction in returns to producers, though this was not always matched by a reduction in retail egg prices. Many producers now sell direct to the wholesale and retail trade rather than through cooperatives or other organisations.

New Zealand currently has around 160 commercial egg producers, with the largest 20 producers accounting for over 50 percent of total production. Since deregulation in the late 1980s the number of commercial egg producers has declined rapidly. The Egg Producers Federation of New Zealand Inc (EPF), funded via producer levies under the Commodity Levies Act, represents the industry and plays a growing role in research funding and direction.

Poor profitability for egg producers during 1994 and 1995 resulted in a reduced egg supply as producers went out of business; by mid-1996 increased demand for eggs led to higher wholesale egg prices, though this was short lived. The cyclical nature of the egg industry continues, with an oversupply of eggs experienced during 1997.

There are some exports of specialist eggs to niche markets overseas, in addition to fertile egg and day-old chick exports to the Pacific.

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 (Trifolium repens) is still the principal type, a number of other New Zealand native honey sources have wide national and international consumer appeal. Examples are rewarewa (Knightia excelsa), tawari (Ixerba brexiodides) and ling heather (Caluna vulgaris) from the North Island. South Island sources include rata (Meterosideros robusta), blue borage (Echium vulgare) and thyme (Thymus vulgaris). As well, honeydew (a non-floral source of honey) is produced from South Island beech forests. This source, with a strong, pronounced flavour, is exported primarily to Europe.

Table 18.29. APIARIES AND HONEY PRODUCTION*

DistrictBeekeepersApiariesHivesHoney production
199519961997199519961997199519961997199519961997

* Year ended 30 June.

Source: MAF Quality Management

 numbertonnes
Whangarei1,2131,1501,1352,8982,6872,64729,10128,77730,252354829766
Hamilton5515305222,9052,9472,89343,74241,27039,6929621,639829
Tauranga5375115183,5313,4143,24250,63147,67047,9641,4261,077933
Palmerston North1,3521,3301,3334,0114,0053,83137,24538,12137,0551,2001,3671,112
Blenheim4694634692,0371,9351,98622,67921,77522,894499607919
Lincoln7357897905,2705,3615,29458,86158,98358,4521,6851,2872,339
Invermay5525335194,1124,0303,86150,82150,21051,1491,9211,8041,639
            New Zealand5,4095,3065,28624,76424,37923,754293,080286,806287,4588,0478,6108,537

A capsicum grower in his pump heated greenhouse, Taranaki.

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. Because of this both the demand and the price for manuka honey have risen dramatically.

The marketing of bees and products has become more sophisticated and honey packers continue to develop innovative packaging and labels. Packers are concentrating on marketing mono-floral honeys rather than blends and are adapting sensory terms like the wine industry uses. For example, Kamahi honey is described as ‘clean, rich and sweet, a balanced buttery finish, with a hint of vanilla’. Many other substances are blended with honey to add value eg deer velvet, venom, dried fruits, pollen and peanut butter. There is an ever-growing demand for bee products such as royal jelly, propolis (an antibiotic gum or resin from plants), pollen and some honeys like Manuka which have strong antibacterial properties.

The total saleable crop for 1997 was assessed, by the Ministry of Agriculture Quality Management, at 8,537 tonnes (29.5 kilograms per hive), slightly below the six-year average of 8,943 tonnes (30.4 grams per hive). Exports of bulk, retail pack, comb and honeydew honey totalled around 2,500 tonnes. The 1994 crop of 11,819 tonnes was reported as the largest honey crop ever produced in New Zealand.

The industry's other products include beeswax, pollen, propolis (an antibiotic gum or resin collected from plants), royal jelly and live bees which include package bees and queen bees. Package bees are ventilated containers with usually 1 kg of bees, a queen bee and some food supplies. The industry is determined to maximise New Zealand's advantages of relative freedom from bee pests and diseases in order to increase this trade in live bees. Bee pests and diseases, as well as the aggressive Africanised honey bees, have spread through many of the countries where bees are kept. Export of live bees in the year ending December 1996 came to 17,000 queen bees and 26,000 kg bulk bees.

With the decline in the area sown in kiwifruit in New Zealand, the demand for bees for kiwifruit pollination has been reduced considerably in some areas of the country. The number of hives being moved for pollination of other crops (such as apples, stonefruit, berryfruit and squash) has increased and currently over 90,000 hives are hired by growers in New Zealand on an annual basis for pollination of all fruit, vegetable and legume seed production.

Information about the National Beekeepers Association, with links to worldwide beekeeping sites, is available on www.beekeeping.co.nz

18.7 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.

MAJOR CROPS
Area sown

An excellent crop of a French variety of carrots; the larger are exported and small ones sold on the domestic market.

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 18.30. GRAIN AND PEAS 1996

CropArea sownYields
North IslandSouth IslandTotalNorth Island South IslandTotal

Figures may not equate to the total due to rounding.

Source: Agriculture Production Survey, Statistics New Zealand, for the year ended 30 June 1995

 hectarestonnes
Wheat..s43,45050,607..s239,386277,014
Oats8949,20010,0942,81138,40641,217
Barley12,05564,54676,60156,930310,251367,181
Peas1,34513,61514,9604,74641,62646,373
Maize17,801..s18,559201,941..s209,710

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.

MAJOR CROPS
Production

Most wheat is grown in the South Island in the Canterbury Regional Council Area. In the year ended June 1996 this region provided 74 percent of the total production of 204,628 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. In the year ended June 1996, 367,181 tonnes of barley were grown.

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. The total yield was 209,710 tonnes in 1996.

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 41,217 tonnes in 1996. The main areas for oats are Canterbury and Southland.

Field peas. In 1996, 85 percent of the total yield of 46,373 tonnes of peas were grown in the Canterbury Regional Council Area in the South Island.

Potatoes. The production of potatoes is usually adequate to meet home market requirements. In 1996, the total area planted in potatoes was 10,122 hectares.

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.

MAJOR CROPS
Yield per hectare

A sustainability project started in April 1997, measuring nitrate levels draining off the land and saving topsoil in vegetable growing, Pukekohe.

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 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

Table 18.31 outlines the main types of fruitgrowing in New Zealand. Exports are dealt with in section 25.2.

Pipfruit. The New Zealand Apple and Pear Marketing Board (NZAPMB) is responsible for marketing all export-grade apples and pears from New Zealand, or giving other organisations permission to do so.

About 60 per cent of the Board's product goes to Europe (including the United Kingdom), while the rest is nearly evenly split between North America and the Asian/Pacific markets. Fruit is sold to about 60 countries under the ENZA brand.

In 1997 the board exported about 16 million, 18 kg cartons of apples and pears on behalf of approximately 1,500 New Zealand pipfruit growers. These exports generated $519,725,000 in sales revenue. However, at an average return of $10.21 per 18kg carton, returns to growers were $2.00 a carton down on the previous season's returns. This drop in returns reflects the increasingly competitive nature of the international pipfruit industry.

The board has established new grade standards which will be used from the 1998 season. The grade standards are in keeping with the board's overall strategic marketing plan to differentiate its product in an oversupplied world market to achieve improved returns to growers.

In late 1997 growers voted in favour of a proposed new ownership structure for the Board. This will see its single-desk marketing activities separated from its other complementary business activities. The growers' endorsement gives the board the mandate to work with government to seek an amendment to the Apple and Pear Marketing Act 1971 to accommodate the proposed changes.

PIPFRUIT
Total exports

NASHI AND EUROPEAN PEARS
Area planted

PIPFRUIT PLANTINGS
Areas planted in pipfruit

Table 18.31. AREAS PLANTED IN FRUIT

FruitAt 30 JuneMain regions
19931994119951996

1Change in survey population definition introduced in 1994.

2Areas of grapes planted by activities classified to winemaking are not included here. “..s” denotes an estimate that has been suppressed for reasons of very poor statistical quality.

Source: Agriculture Production Survey, Statistics New Zealand

 hectares 
Citrus
    Grapefruit/Goldfruit156117117115Bay of Plenty
    Lemons283263..s330Northland
    Mandarins533619654637Northland
    Oranges760789757607Gisborne, Northland
    Tangelos357295316230Bay of Plenty
Pip fruit
    Apples12,93715,25715,91615,819Hawke's Bay
    Pears1,0681,2791,2661,151Hawke's Bay, Tasman
    Nashi (Asian Pears)484418413313Bay of Plenty, Auckland
Stone fruit
    Apricots804844831735Otago
    Nectarines845667705559Otago, Hawke's Bay
    Peaches869714738756Hawke's Bay
    Plums303342336303Hawke's Bay
    Cherries273274353339Otago, Marlborough
Berry fruit
    Blackcurrants795720714614Canterbury
    Blueberries340357377280Waikato
    Boysenberries223231222227Tasman
    Raspberries224199..s..sCanterbury
    Strawberries247331..s..sAuckland
Subtropicals
    Avocados1,2601,3751,5881,573Bay of Plenty, Northland
    Feijoas226161..s138Auckland
    Kiwifruit14,09912,17411,87311,640Bay of Plenty
    Tamarillos325299249188Northland, Bay of Plenty
    Passionfruit68545441Bay of Plenty
    Grapes (outdoor)25,6637,1607,3827,627Marlborough, Hawke's Bay, Gisborne
    Persimmons400412428361Auckland

Table 18.32. APPLE AND PEAR SALES1

 19931994199519961997

1For year ended 30 September.

2The NZAPMB no longer controls market sales or the processing sector—these areas were deregulated in 1994. Prior to 1994 the board's net return reflected the revenue from the entire pipfruit industry. The Board is still involved in the processing and local market industries, but the commercial operations figure is only the Board's revenue in this area.

Source: Apple and Pear Marketing Board

Fresh fruit export450,798460,690556,662631,645519,725
Commercial operations2120,178141,643227,889242,236265,069
            Net return570,976602,333784,551873,881784,794

Summerfruit. At 30 June 1996 the total areas planted in summerfruits was 3000 hectares, mainly peaches, nectarines, apricots, plums and cherries.

The main summerfruit production areas are Central Otago, Hawke's Bay, Marlborough, Canterbury, and Auckland.

Exporting summerfruit comes under the Summerfruit Export Council Limited of the New Zealand Horticulture Authority.

Kiwifruit. Kiwifruit is one of New Zealand's most important horticultural export earners. New Zealand is a major supplier of kiwifruit and has led the development of the global industry.

ZESPRI International is the world's largest marketer of kiwifruit and sells under the ZESPRITM New Zealand kiwifruit brand. It is the global marketing subsidiary of grower owned Kiwifruit New Zealand (the New Zealand Kiwifruit Marketing Board). Kiwifruit New Zealand is responsible for industry governance and onshore grower equity issues, inventory, quality and administration. ZESPRI International is focused on international marketing, and aims to increase sales by making kiwifruit an everyday fruit or snack. The company has a head office in Auckland, operational headquarters in Mount Maunganui, and regional marketing offices in Antwerp, Tokyo, Vancouver, Kuala Lumpur, Taipei and Seoul.

In 1997, ZESPRI International sold 55.8 million trays of New Zealand kiwifruit in more than 60 countries. Sales (by volume) are focused in four major markets: Europe (58 percent), Japan (18 percent), Emerging Markets which includes North and South Asia, South America, Middle East, Indian Ocean and Far East Russia (14 percent) and East Asia (10 percent).

While New Zealand growers supply about a quarter of world production, kiwifruit generally accounts for less than 1 percent of world fresh fruit consumption. Other major producers include Italy, Japan, Chile, United States of America and France. The rapid increase in global production, which has now plateaued, and increasing competition from other fruits, has led to declining real prices, although New Zealand has consistently earned price premiums over its competitors.

Table 18.33. KIWIFRUIT PRODUCTION

Year ended 31 MarchAreaExport traysSales trays
Source: New Zealand Kiwifruit Marketing Board
 hectaresmillion
19818,0576.26.2
199015,74472.162.8
199114,98059.854.7
199214,59467.352.3
199312,26555.349.2
199410,16155.849.9
199510,21058.848.7
199610,32963.156.2

Kiwifruit is produced in many regions of the North Island, as well as the north of the South Island, but the Bay of Plenty, with over 80 percent of production, is the major growing area. There are about 1,700 kiwifruit growers in New Zealand. To obtain economies of scale, there is increasing vertical integration between orchards, packhouses, cool stores and transport.

Table 18.34. HORTICULTURAL EXPORTS

Year ended 30 June199519951996199619971997
Source: Fruit Research Council of New Zealand, Fruit research in New Zealand 1996
 $(million)percent$(million)percent$(million)percent
Fresh fruit862.659.8807.559.5768.559.0
Processed fruit148.710.3143.210.5166.912.8
Fresh vegetables195.113.5168.612.4150.811.6
Processed vegetables149.710.4150.611.1136.610.5
Flowers and foliage49.53.448.13.542.03.2
Seeds and plants37.82.640.63.037.72.9
            Total1,443.4100.01,358.6100.01,302.5100.0

Grape growing and wine production. The area planted in producing grape vines increased from 6,610 ha in 1996 to an estimated 7,300 ha in 1997. Marlborough (19,585 tonnes in 1997), Gisborne (18,172 tonnes) and Hawke's Bay (16,533 tonnes) are the major grape producing areas.

The industry had a number of setbacks between 1992 and 1994 which included variable weather, low investment in the wine industry and the phylloxera ‘attack’.

Since then there has been a recovery and the 1996 season was New Zealand's second largest wine vintage, producing 75,300 tonnes of grapes. Chardonnay (13,870 tonnes), Muller Thurgau (13,838 tonnes) and Sauvignon Blanc (12,354 tonnes) were the most popular grapes of the season.

Along with increased grape production, exports of wine also increased 29 percent from 11.0 million litres in 1996 to 13 million in 1997, reflecting a good 1995 growing season. The increase prompted the formation of New Zealand Wine Exporters, the export management committee of the Wine Institute.

The United Kingdom, which imported 8,135 million litres of wine in the year to 30 June 1997, is New Zealand's major export market for wine. Australia, importing 1,635 million litres, follows as the second-largest export market.

The number of wineries in New Zealand has increased from 131 in 1990 to 262 in 1997. The Wine Institute of New Zealand's website address is: www.nzwine.com

Table 18.35. WINE INDUSTRY STATISTICS

 Unit1992199319941995199619971

1Estimated figures.

Source: Wine Institute of New Zealand

Producing areahectares5,8005,9806,1106,1106,6107,300
Average yieldtonnes per hectare9.37.18.812.211.28.2
Crushedtonnes55,50042,62154,00074,50075,30060,000
Total productionmillion litres41.632.541.156.457.345.0
Domestic salesmillion litres43.637.428.530.935.638.6
Consumption per capitalitres (NZ Wine)12.811.08.18.79.910.7
Stock: sales ratiosales ratio1.28:11.21:11.62:12.19:12.06:11.7:1
Export Volumemillion litres7.18.67.97.811.013.1
Export Value$(million)34.748.341.540.860.375.9

Marlborough is one of the most important winegrowing regions in New Zealand, with 2940 ha planted by the industry.

Truffle harvested in Gisborne.

Subterranean fungi-finding dog with truffle farmer in The Dominion

Table 18.36. WINE PRODUCTION, SALES AND STOCKS

 1992199319941995199619971

*Estimates only.

Source: Wine Institute of New Zealand

 million litres
Production
White35,20026,06228,50141,65644,690-
Red4.5003.4015.1087.6758.548-
Sparkling0.4001.6135.7805.1803.376-
Fortified1.5001.3851.7201.8800.691-
            Total41,60032,46241,10956,39257,30545,000
Sales—
White37,55032,50025,80026,50032,400-
Red4.3004.1003.5004.0005.500-
Sparkling5.6505.5004.5005.6006.800-
Fortified3.6003.5002.6002.6001.900-
            Total51,10045,60036,40038,70046,60051,700
Losses—2.0001.3941.3321.5371.2411.500
            Total65,50055,14664,77684,83996,08987,889

Contributors

  • 18.1-18.2 Ministry of Agriculture, Statistics New Zealand.

  • 18.3 New Zealand Meat Producers Board, Meat and Wool Boards' Economic Service.

  • 18.4 Wools of New Zealand.

  • 18.5 New Zealand Dairy Board.

  • 18.6 Statistics New Zealand, Ministry of Agriculture, New Zealand Pork Industry Board, Poultry Industry Association of New Zealand, National Beekeepers' Association.

  • 18.7 Ministry of Agriculture, 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.

Special articles

Ministry of Agriculture; New Zealand Game Industry Board; Wools of New Zealand; Poultry Industry Association of New Zealand; National Beekeepers' Association; Flower Industry of New Zealand Inc.

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. Wools of New Zealand (annual).

Further prospects for horticulture, E G Bollard, 1996. HortResearch.

Key Statistics. Statistics New Zealand (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 (monthly).

New Zealand Dairy Board Annual Report.

From Cow to Customer: The New Zealand Dairy Industry

Dairy Facts and Figures 1994/5

New Zealand Dairy Board Corporate Profile.

New Zealand Meat Producer. New Zealand Meat Producers Board (quarterly).

New Zealand Meat Producers Board Annual Report.

New Zealand Pork Industry Board Annual Report.

Report of the Ministry of Agriculture and Fisheries (Parl paper C.5).

Sentinel. National Agriculture Security Service (eight times per annum).

Situation and Outlook for New Zealand Agriculture. Ministry of Agriculture and Fisheries (annual).

Statistical Handbook. Wools of New Zealand (annual).

Surveillance. (Reports on animal health). Ministry of Agriculture and Fisheries (quarterly).

Wine Institute of New Zealand Incorporated Annual Report.

Wool Market Review. Wools of New Zealand (fortnightly).

Wool Report. Wools of New Zealand (quarterly).

Wools of New Zealand Annual Report.

Chapter 19. Forestry and fishing

Scallop collectors enjoy the low tide at Clark's Beach on the Manukau Harbour. Daily bag limits and size restrictions apply to all shell fish.

19.1 Forestry

Forests cover about 29 percent or 7.9 million hectares of New Zealand's land area. Of this, about 6.4 million hectares are in natural forest and 1.5 million hectares in planted production forests. Of the total planted production forest estate, 91 percent is radiata pine (Pinus radiata), and 5 percent is Douglas fir (Pseudotsuga menziesii). Hardwoods comprise about 3 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 the low level of 15,000 hectares in 1991 to 66,000 hectares in 1997. 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), macrocarpa (Cupressus macrocarpa) and black walnut (Juglans nigra) have been established to meet specialist markets.

The available wood resource from plantations will 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 74 percent increase between 1996 and 2010. The increase expected to become available under the assumption of 60,000 hectares of new plantings being undertaken each year is shown in the graph below.

Forestry research is described in section 15.1, Organisation of science, while the role of the Ministry of Agriculture and Forestry is summarised in section 3.3, State sector.

Resources

Indigenous forests. New Zealand's 6.4 million hectares of indigenous forest are located mainly in the mountainlands, particularly on the West Coast of the South Island. The major indigenous tree species in these complex forests are beech, kauri, rimu, taraire and tawa. The indigenous forests harbour about 330 species of native birds (some classed as endangered or threatened), two species of bat, reptiles, freshwater fish, amphibians and invertebrates, most notably land snails and giant weta. Their cultural values include recreational, scientific, historic and scenic values.

The indigenous forests are a key part of New Zealand's environment and help protect the natural values of the ecosystem. The main threats to these forests are introduced animals and plants and an increasing demand for access and recreational opportunities.

The Crown is the major indigenous forest owner (about 77 percent). Twenty-three percent of the estate is in private hands. Part IIIA of the Forests Act 1949, introduced in 1993, promotes the sustainable management of privately owned indigenous forests. This means the forests are managed in a way that maintains their ability to provide products and amenities in perpetuity. The act does this by:

  • requiring private owners to manage their forests sustainably through sustainable management plans and permits

  • controlling the indigenous timber input to sawmills

  • prohibiting indigenous woodchip and log exports.

Having a large planted forest resource enables New Zealand to protect and sustainably manage its Crown-and privately-owned indigenous forest. Less than 2 percent of New Zealand's total forest production is harvested from indigenous forests.

Planted production forests. Trees planted in the second boom of afforestation (1970 through to the mid-1980s) are reaching large-scale utilisation. This provides real opportunities to maximise the economic return from tree growing.

TIMBER PRODUCTION
Indigenous and plantation

Special-purpose plantation species have also been evaluated and these are being planted by small scale forest growers on suitable sites. Uses for these timbers include furniture, cabinet work, turnery, joinery, veneers and boat-building.

Natural production forests. There are 6.4 million hectares of the natural forest remaining in New Zealand, of which around 4.9 million hectares (77 percent) are unavailable for timber production, being managed by the Department of Conservation for heritage, conservation, soil and water, and recreation values.

Harvesting timber from state-owned natural forests is confined to the 130,000 hectares set aside for production on the West Coast and managed by Timberlands West Coast Limited. During 1996 12,000 hectares set aside in Southland and managed by the state-owned enterprise Crown Forest Management Limited (known as New Zealand Forestry Corporation until December 1995) was transferred to the Waitutu Incorporation. These forests are required to be managed under approved sustainable forest management regimes.

From 3 July 1996, timber production from the 1.3 million hectares of privately-owned natural forest must be done in accordance with sustainable forest management provisions of the amended Forests Act. The harvesting and milling of ‘salvaged’ timber from areas of farmland and non-natural forest, along with windblown and naturally dead trees from natural forest not being managed under an approved sustainable forest management regime, is also permitted. Approval is necessary for harvesting and milling timber for a landowner's personal use.

All sawmills milling timber from natural forests must be registered and are restricted to processing timber from approved sources. Exports of natural forest produce are limited to those sourced from an area managed under an approved sustainable forest management plan or permit or where the product is manufactured to a finished form.

Ownership of forests

Many of the earlier plantation forests were developed by the state, but ownership has moved increasingly to the private sector over the last decade. 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. In August 1996 the Government sold its shares in the Forestry Corporation of New Zealand which owned licences to the cutting rights to 188,000 hectares of prime planted forest in the Bay of Plenty.

Prior to these sales ownership of plantation forests was shared almost evenly between the public and private sectors. Today approximately 93 percent of the plantation 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, Ernslaw One Limited acquired 24,000 hectares, and Wenita Forestry Limited acquired 21,000 hectares.

The Conical Hill sawmill was purchased by Ernslaw One Limited, but the Waipa sawmill remained in Crown ownership.

Operation Ever Green worker inspects a white-spotted tussock moth trap in Kohimarama in April 1997 after the spraying programme for the new pest.

Where management and cutting rights were not sold, plantations were transferred to three new state-owned enterprises: Forestry Corporation of 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 managed about 116,000 hectares of plantation forest. American company ITT Rayonier subsequently purchased 97,000 hectares of forest managed by New Zealand Timberlands Limited after the balance of 22,000 hectares was withdrawn from the sale. New Zealand Forestry Corporation Limited continued to manage these forests for the Crown. At the end of 1995 New Zealand Forestry Corporation Limited was renamed Crown Forestry Management Limited and continued to manage the unsold state forests.

In August 1996 the Government sold its shares in the Forestry Corporation of New Zealand, which owned licences to 188,000 hectares of forest and the Waipa sawmill. These shares were purchased by a consortium made up of Fletcher Challenge, Briefly Investments and Citifor.

Table 19.1. FORESTRY PLANTING AND PRODUCTION: SUMMARY 1921-1996

Year ended 31 MarchNew area plantedRough-sawn timberWood pulp1Paper and paperboard
StatePrivate

1Chemical and mechanical wood pulp.

Source: Ministry of Forestry

 hectareshectarescubic metrestonnestonnes
 (000)(000)(000)  
19211..726....
192542812....
19302316668....
193558575....
19403..79322113,079
19451..80315,68120,949
19502..1,13121,78122,136
1955221,45353,01640,917
1960321,638221,408164,255
1965951,739370,499316,104
19701581,803521,654445,976
197521232,086843,244546,834
198018262,0001,122,456673,853
198520362,3061,144,911770,098
19901212,1211,233,809757,371
1991-162,2831,348,760822,340
1992-152,3011,343,320780,016
1993-502,6341,271,297756,013
1994-622,8171,371,234835,613
1995-982,9551,360,389876,187
1996-74R2,9041,405,307892,969
1997-66P3,0231,377,264877,152

FOREST PLANTATIONS
Annual plantings by state and private sectors

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.

PAST AND FUTURE WOOD SUPPLY
Forecast based on 60,000 hectares of new planting per year

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 at 31 March 1997 was 1.54 million hectares. Seventy percent of the planted forest estate is owned by 10 major organisations (with considerable off-shore investment), while the remaining 30 percent is owned by small companies, local government, partnerships, joint ventures and many thousands of farmers. The dominance of large companies has recently given way to individuals and groups of smaller investors. Small forest owners planted almost 50 percent of the new forest area in 1995. These included farmers, forest investment syndicates, Maori forestry interests and additional foreign participants. More than 14,000 forests are fewer than 100 hectares in size, and many of these are individually owned. About 55 percent of the resource is owned by three companies, Fletcher Challenge, Carter Holt Harvey Limited and Rayonier New Zealand Limited. Juken Nissho Limited, Ernslaw 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 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 of 30,110 full-time equivalent persons engaged in forestry and first-stage processing activities in 1997. There were 9,590 in forestry and logging, 6,450 in sawmills, 1,370 in planing, preserving and seasoning timber, 50 in chipmills, 1,940 in plywood, veneer and board, 3,580 in pulp and paper manufacturing and 7,130 in wood product manufacturing. This compares with 25,544 people engaged in the same activities in 1996.

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. Lincoln University offers a Bachelor of Commerce (Forestry) which combines studies in commerce and forestry, and Massey University offers papers in forestry subjects.

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.

An entomologist takes a close look at one of the female tussock moth caterpillars being bred to attract males into the traps.

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 coordinate 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.

19.2 Timber and forest products

Timber

Roundwood. In 1996-97 logs from planted production forests supplied 16,000,000 cubic metres, or 99 percent of the total roundwood removals. Table 19.2 shows the quantities of roundwood removed from the forests of New Zealand to support approximately 440 sawmills, 6 plywood, and 8 veneer plants, 4 particleboard mills, 8 pulp and paper mills, and 4 fibreboard mills in 1996-97. This roundwood production does not include firewood.

Table 19.2. ESTIMATED ROUNDWOOD REMOVALS FROM NEW ZEALAND FORESTS

Year ended 31 MarchNatural forest removals totalPlanted production forest removalsTotal removals
Saw logsPulp logsExport logsOther1Total

1Other includes peeler logs, small logs and export chips.

Source: Ministry of Forestry

 cubic metres (000)
19903574,1293,7091,9471,344R11,129R11,486R
19913614,3984,3183,0641,313R13,093R13,454R
19922054,4314,1843,5781,505R13,698R13,903R
19932065,0063,4754,5411,462R14,484R14,690R
19942045,1713,7814,2531,462R14,667R14,871R
19952055,3104,0604,7621,846R15,978R16,183R
19961305,2713,7575,6081,926R16,562R16,692R
19971105,4593,1425,4691,89415,96416,074

Sawn timber. Radiata pine accounts for about 93 percent of the total cut of exotics, Douglas fir for 4 percent and other conifers for most of the remainder. Less than 2 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.

PULP & PAPER PRODUCTION
Annual production

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 plantation growth resources. The effective introduction and maintenance of timber preservation standards has greatly assisted the utilisation of plantation-grown roundwood for these users.

Export wood chips. The export wood chip industry originated in the Nelson region. Other wood chip export ports include Whangarei, Mount Maunganui, Port Chalmers and Southport. 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.

Chip exports during the year ended June 1997 totalled 194,000 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.)

Table 19.3. ROUGH-SAWN TIMBER PRODUCTION

Year ended 31 MarchSoftwoods fromHardwoods fromTotal
Natural forestsPlanted production forestsTotal softwoodsNatural forestsPlanted production forestsTotal hardwoods

Source: Ministry of Forestry

 cubic metres (000)
1990712,0332,104161172,121
1991722,1982,270112132,283
1992542,2372,29191102,301
1993612,5632,62464102,634
1994722,7302,80286142,816
1995702,8632,93397162,949
1996482,8432,89176132,904
1997482,9643,01283113,023

Table 19.4. SAWN TIMBER PRODUCTION BY SPECIES

SpeciesYear ended 31 March
199219931994199519961997

Source: Ministry of Forestry

 cubic metres (000)
Natural forest—
Rimu and miro515566664444
Matai--1121
Totara--1---
Kahikatea233211
Tawa423131
Beech444747
Other231212
            Total, natural forest species636779795556
Planted production forest
Radiata pine1,9352,2812,4972,5912,6312,761
Douglas fir221160123128104122
Eucalypts124553
Other8112411214610981
            Total, planted production forest species2,2382,5672,7362,8702,8492,967
            Total, all species2,3012,6342,8162,9492,9043,023

Timber preservation. Over 1 million cubic metres of timber, including roundwood, 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 New Zealand Forest Research Institute Limited.

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 and inspection. New Zealand's quarantine inspection services provide a degree of insurance to the forest industry by limiting the movements of insects and disease into and out of the country. Ministry of Forestry protection officers inspect imported wood and wood products, including dunnage and packaging materials within shipping containers, bulk cargo, logs, sawn timber and manufactured wood products. Ships which have been assessed as having called in high risk areas may be inspected for gypsy moth, a potentially devastating insect for New Zealand's forestry industry if it became established. Inspection of forestry exports such as logs and timber is also undertaken by the Ministry of Forestry protection officers where the importing country requires a phytosanitary certificate.

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.

PANEL PRODUCTION
Total annual production

The Tasman Pulp and Paper Company Limited, part of the Fletcher Challenge Corporation, has its plant at Kawerau, Bay of Plenty, where wood from the adjacent Kaingaroa Forest is utilised. This plant produces market pulp and newsprint.

Carter Holt Harvey operates pulp and paper plants at five sites in New Zealand. At Penrose in South Auckland a plant produces corrugated medium paper and paperboard from recycled waste paper. At the large Kinleith site, near Tokoroa, both market pulp and paper and paperboard are produced. The plant at Whakatane produces paperboard from mechanical pulp and from semi-chemical and waste-paper based pulps. A plant at Kawerau manufactures a range of tissue and other papers for the domestic and export markets. The Mataura plant (New Zealand's oldest established paper mill) produces a range of papers using New Zealand-made pulps supplemented with imported speciality pulps.

Pan Pacific Forest Industries New Zealand Limited operates an integrated sawmill and thermo-mechanical pulp mill at Whirinaki, near Napier.

Winstone Pulp International has a chemical thermo-mechanical pulp mill at Karioi. The plant uses wood from Karioi Forest, as well as sawmill residues.

Table 19.5. PULP AND PAPER PRODUCTION

Year ended 31 MarchWood pulpPaper and paperboard
Chemical1Mechanical2NewsprintOther printing and writing paperOther paper and paperboardTotal paper and paperboard

1Chemical includes semi-chemical pulp.

2Mechanical includes groundwood pulp, thermo-mechanical and chemithermo-mechanical pulp.

Source: Ministry of Forestry.

 tonnes
1990658,230575,579294,88137,802424,688757,371
1991733,240615,520321,28635,178465,876822,340
1992673,949669,371356,35119,949403,716780,016
1993588,369682,928376,1058,795371,113756,013
1994701,630669,604370,85313,794450,966835,613
1995684,454675,935374,86514,924486,398876,187
1996702,575702,732391,43613,084388,449892,969
1997652,308724,956384,14711,870481,135877,152

Wood-based panels. Six factories manufacture plywood, and the total output for the year ended 31 March 1997 was 180,713 cubic metres (160,481 cubic metres in 1996). Total production of veneer in the industry in 1996-97 was 300,648 cubic metres (259,928 cubic metres in 1996). Radiata pine has become increasingly important as a species for peeler-log supply because of the demand for industrial plywood, and constitutes about 99 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. Laminated veneer lumber is manufactured at plants near Masterton and at Gisborne.

Table 19.6. VENEER, PLYWOOD, PARTICLEBOARD AND FIBREBOARD PRODUCTION

Year ended 31 MarchVeneerPlywoodParticleboardFibreboard

Source: Ministry of Forestry

 cubic metres
199089,37368,479171,621442,603
199174,17960,726159,893463,232
199282,81057,864155,428513,877
1993117,72086,253164,877543,679
1994140,51696,953175,786553,670
1995235,444150,543175,995690,175
1996259,928160,481159,082632,019
1997300,648180,713233,988536,831

Overseas trade in forest products

Exports. Forest products are important earners of overseas funds. For the year ended June 1997 exports of forest products were valued at about $2,379 million ($2,585 million in 1996). Japan took 33 percent (by value) of exports, mainly in logs, sawn timber, panel products and wood pulp. Australia took 25 percent, mainly sawn timber, panel products, pulp and paper, paperboard. The remaining 42 percent was taken by smaller customers, of which the largest was Korea (15 percent).

FORESTRY EXPORTS
Destination by value, 1997

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 78 percent of the value of total forest products imports in the year ended June 1997. Imports of forest products for the year ended June 1997 were valued at $830 million ($778 million in 1996).

Table 19.7. OVERSEAS TRADE IN FOREST PRODUCTS

Year ended 30 JuneWood and wood productsWood pulpPaper and paper productsAll forest products

Source: Ministry of Forestry

Imports cif$(000)
1990109,16414,682357,089480,935
199193,65610,068373,461477,185
199285,48916,949440,889543,327
199394,24518,470548,269660,984
1994114,80412,749485,560613,113
1995136,64114,070565,298716,009
1996163,355R17,655596,785R777,795R
1997P181,61911,855636,561830,035
Exports fob$(000)
1990658,760R386,817340,294R1,385,871
1991843,643389,817343,8001,577,260
19921,028,666379,168416,8851,824,719
19931,549,990352,709421,1092,323,808
19941,738,412326,977403,6662,469,055
19951,730,893R480,862430,782R2,632,537
19961,605,231R456,788523,438R2,585,457R
1997P1,625,195344,086409,9512,379,232

Table 19.8. VOLUME OF TIMBER IMPORTS

Year ended 30 JuneHardwoodsSoftwoodsTotalLogs and poles

Source: Ministry of Forestry

 cubic metres (000)
19902025456
19911425404
1992819273
1993718253
1994823323
19951023342
19961324382
1997P1021333

Table 19.9. VOLUME OF TIMBER EXPORTS

Year ended 30 JuneSawn timberLogs and poles
From natural forestRadiata pineDouglas firOtherTotal

Source: Ministry of Forestry

 cubic metres (000)
199044427329548R2,170
1991256683306813,293
1992270384478363,793
1993387056409694,734
1994285232359214,315
1995199442281,0654,802
19961897R3119948R5,460
1997P21,01741231,0835,915

Two Native Forest Action tree-dwellers eat lunch on their platform 35m up a 600-year-old rimu tree in the Charleston forest, in the fourth week of their silent occupation of the West Coast forest. Logging in the area by a Government-owned company was at a standstill.

Table 19.10. VOLUME OF OVERSEAS TRADE IN PULP AND PAPER

Year ended 30 JuneWood pulpPaper and paperboard
NewsprintOther paper and paperboard*Total

*Products manufactured from paper and paperboard are excluded.

Source: Ministry of Forestry.

Importstonnes
199011,6358,73991,10699,845
199110,13416,09494,062110,156
199216,8506,022111,297117,318
199318,4423193,845193,848
199417,03787143,912143,999
199514,32465174,981175,046
199615,29924161,129161,153
1997P18,6901,987226,047228,034
Exportstonnes
1990560,728201,213112,482313,695
1991624,954209,158107,651316,809
1992656,088271,469116,825388,293
1993625,382285,850117,294403,144
1994628,928251,712117,029368,741
1995665,274232,418116,516348,934
1996654,326245,972121,710R367,682R
1997P667,682250,910121,914372,824

19.3 Fisheries

Fishery resources

New Zealand's Exclusive Economic Zone (EEZ), is one of the largest in the world. At 1.2 million square nautical miles, it covers an area 15 times New Zealand's land mass. 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; this is the fishable area where most fish resources occur. 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. Species include shallow water shellfish, open water migratory pelagic fish and the deepwater species which live more than a kilometre below the surface. The fisheries range from numerous, but mostly small, resources of subtropical species in the north, through moderate resources of many warm temperate species on the shelves around the main islands, to large resources of a few cool water species on the extensive plateau to the south-east and east of the country.

Much like New Zealand's human population, its diverse marine fish fauna is derived from many parts of the world, with a mix of residents, recent immigrants and seasonal visitors, and is 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 their use is sustainable. In practice, this means ensuring the fisheries are not overfished, while balancing the competing demands of various user groups.

The main method used to manage fisheries in New Zealand is a system based on controlling the levels of catch, known as the Quota Management System (QMS). Under this system, catch limits are set for each fish stock and rights to harvest fish for sale are acquired by purchasing or leasing quota. The main goals of the QMS are to set sustainable commercial catch limits and improve economic efficiency in the fishing industry.

The catch limits, known as Total Allowable Catches (TACs) and Total Allowable Commercial Catches (TACCs) are reviewed annually. The review process involves consideration of the latest fisheries research and stock assessments, and consultation with representatives from the commercial fishing industry, Maori, recreational fishing groups and environmental organisations.

The QMS provides security for participants in the fishing industry to invest in harvesting and processing capacity. There has been substantial growth in the seafood processing and marketing sectors since the introduction of the QMS. The QMS applies throughout the New Zealand EEZ for the main commercial species, and new legislation is being developed to bring all commercial fish species into the system.

In addition to the QMS, there are various regulatory controls used to manage aspects of commercial fishing. These include method and gear restrictions, closed areas, closed seasons and restrictions on fishing permits. Recreational fishing controls include daily bag limits, minimum fish sizes, method and gear restrictions, closed areas and closed seasons.

FISHERIES EXPORTS
By value

Fisheries legislation

The purpose of the Fisheries Act 1996 IS to ensure the sustainable utilisation of New Zealand's fisheries resources. Features include:

  • Explicit standards for environmental protection.

  • New processes for resolving disputes between fishers over access.

  • New rules for bringing species into the quota system.

  • Enhancement of the QMS, including improved reporting procedures.

  • Clarification of customary fishing regulations.

Ministry of Fisheries

The Ministry of Fisheries was established on 1 July 1995, and provides the following services:

  • Policy advice on sustainable utilisation.

  • Standards and specifications for all fisheries services.

  • Purchase of contestable services (including research).

  • Management and co-ordination of the TAC/TACC setting process.

  • Monitoring and audit of service delivery.

  • Delivery of non-contestable services, including enforcement and dispute resolution.

Table 19.11. TACC CHANGES FOR 1997-98

SpeciesFish stockTACC
Was (96-97)Now (97-98)

Source: Ministry of Fisheries

 tonnes
GemfishSKI 11,151.8753.0
21,300.4850.0
31,500.0300.0
7900.0300.0
GurnardGUR 7815.3678.0
RigSPO 1829.0692.0
285.572.0
8370.0310.0
Silver WarehouSWA 12,504.22,132.0
SnapperSNA 14,938.24,500.0
SNA 7160.3200.0
StargazerSTA 150.021.0
2101.038.0
51,525.01,264.0
850.022.0

Table 19.12. TOTAL ALLOWABLE COMMERCIAL CATCH, 1997-981

Fish or shellfishQuantity

1As at 1 October 1997. Excludes tuna species.

Source: Ministry of Fisheries

 tonnes
Alfonsino2,721
Barracouta34,233
Blue cod2,665
Blue moki604
Blue warehou4,512
Bluenose2,466
Elephant fish715
Gemfish2,213
Grey mullet1,086
Gurnard5,143
Hake13,997
Hapuku/bass/groper2,181
Hoki250,010
Jack mackerel60,547
John dory1,107
Ling22,111
Mixed flats6,670
Orange roughy21,330
Oreos25,654
Oysters505
Packhorse rock lobster40
Paua1,254
Red cod16,066
Rig1,888
Scallop909
School shark3,105
Silver warehou9,512
Snapper6,495
Spiny rock lobster2,865
Squid123,332
Stargazer4,972
Tarakihi5,992
Trevally3,932

TACCs

The review of Total Allowable Commercial Catches (TACs) and Total Allowable Commercial Catches (TACCs) for the 1997-98 fishing year resulted in the TACCs for several fish stocks being reduced.

Table 19.13. CATCH BY DOMESTIC AND FOREIGN FISHERS, 1994 AND 19951

 DomesticCharterForeignTotal
19941995199419951994199519941995

1Calendar year. Tonnes.

Source: New Zealand Fishing Industry Board

Finfishtonnes
Alfonsino2,6112,2925455  2,6652,347
Barracouta7,09812,48010,45810,478  17,55622,958
Blue cod1,8462,11921  1,8482,120
Blue mackerel4,4856,8111,2841,427  5,7698,237
Blue moki54254900  542549
Blue warehou9061,0111,059732  1,9651,743
Bluenose2,2442,49115020  2,3952,511
Broadbill Swordfish8810463  94107
Cardinal fish4,3324,0145736  4,3894,050
Elephant fish633715    633715
Flatfish4,7384,24812  4,7394,250
Frostfish6151372,9712,472  3,5862,609
Gemfish2,0571,865482248  2,5382,112
Ghost shark1,1531,264703923  1,8562,187
Grey mullet735782 3  735784
Gurnard3,0592,8643957  3,0992,920
Hake4502,4367,55811,824  8,00914,260
Hapuku & bass1,3261,345149193  1,4751,538
Hoki81,59382,921115,76397,739  197,356180,660
Jack mackerel6,17612,73627,30821,198  33,48533,934
John dory7708168422  854837
Kahawai5,0044,0180   5,0044,018
Ling9,54411,3948,2918,702  17,83620,096
Orange roughy31,38933,911237912  31,62634,823
Oreo dory21,72221,552596569  22,31822,121
Other fish2,13611,7094,6145,775  6,75017,485
Red cod9,53215,1681,7012,114  11,23317,282
Rig1,6241,8102114  1,6441,824
School Shark2,5682,7205245  2,6202,765
Silver warehou1,0831,2377,4815,821  8,5647,057
Skate1,272859753672  2,0251,531
Snapper6,7526,050201  6,7726,052
Southern blue whiting7076,81613,96312,706  14,67019,522
Spiny dogfish2,6552,2933,6012,365  6,2574,658
Stargazer2,6022,272537720  3,1402,992
Tarakihi4,5024,700354237  4,8564,938
Trevally3,4363,591 0  3,4363,591
White warehou2791661,4602,295  1,7382,461
  Total finfish234,262274,261211,810190,379--446,073464,640
Tuna
Albacore tuna5,2886,272356  5,3236,278
Other tuna1162088481  200289
Skipjack tuna3,1351,308210  3,1371,318
Southern bluefin462262311732637303437
  Total tuna8,5858,01436127026378,9628,321
Eels
Freshwater eels1,3161,451    1,3161,451
  Total eels1,3161,451----1,3161,451
Shellfish        
Cockles/Clams993762    993762
Oysters (dredge)5861,073    5861,073
Oysters (farmed)2,2462,872    2,2462,872
Greenshell™ mussels50,01062,519    50,01062,519
Kina854724    854724
Other shellfish1,6041,656    1,6041,656
Packhorse rock lobster619    619
Paddle crab5537    5537
Paua9811,178    9811,178
Pipi238163    238163
Scallop8,4966,208    8,4968,208
Queen scallop246    246
Scampi1,0641,029 1  1,0641,029
Spiny rock lobster2,6782,557    2,6782,557
Squid3,4787,86871,95591,431  75,43399,299
Tuatua212142    212142
  Total shellfish73,52488,81071,95591,432--145,479180,242
Grand total317,687372,536284,116282,0812637601,829654,654

Proposals to increase TACCs under adaptive management programmes were considered and approved for two fish stocks, the Auckland east and west bluenose stock (BNS 1) and the south-east South Island red gurnard stock (GUR 3). Adaptive management programmes provide for additional monitoring and analyses to improve the scientific assessment of the fish stock and estimates of sustainable yield. Twenty-one fish stocks are currently managed under these programmes.

Honorary fisheries officer and park ranger erect a multi-language shellfish sign at Piha, March 1997.

Maori fisheries

Since the passing of the Treaty of Waitangi (Fisheries Claims) Settlement Act 1992, work has continued to implement fully all the provisions of the Act. Customary Maori fishing regulations are currently undergoing the final stages of consultation, with the aim of having them introduced in 1998.

Te Ohu Kai Moana: Treaty of Waitangi Fisheries Commission

Te Ohu Kai Moana (TOKM), the Treaty of Waitangi Fisheries Commission, was set up in 1992 to replace the Maori Fisheries Commission, established in 1989 to hold fisheries assets returned to Maori by the Crown, and to arrange for their eventual distribution. In late 1992, after months of complex negotiations, an historic Deed of Settlement was signed in which the Crown agreed to fund Maori into a 50/50 joint venture with Brierley Investments Ltd to bid for Sealord Products Ltd—New Zealand's biggest fishing company. In return, Maori agreed all their current and future claims in respect of commercial fishing rights were fully satisfied and discharged.

The $175 million paid for a half share of Sealord gave Maori control of roughly a third by volume of the New Zealand fishing quota. In addition the Deed of Settlement promised Maori 20 percent of quota for new species added to the quota management system.

The Deed of Settlement also provided that in respect of all fishing rights and interests of Maori, their status changes so that they no longer give rise to rights in Maori or obligations on the Crown. The exception is commercial fishing rights and interests.

The Treaty of Waitangi (Fisheries Claims) Settlement Act made other changes in recognition of the bigger, more complex workload now facing commissioners. TOKM was given wider ranging powers than its predecessor, an increased membership of 13 commissioners and a requirement that it be clearly accountable to Maori as well as to the Crown.

TOKM's role. By law, TOKM is charged with helping Maori to get into and develop “the business and activity of fishing”. Its responsibilities include:

  • The development of a method of allocating assets to iwi, according to the provisions of the Settlement Act and the Deed of Settlement.

  • Organising annual lease rounds (to make quota available to iwi through a leasing process) until an allocation scheme is in place. Providing leases to iwi at a rate calculated below true market rates—underlining the objective of encouraging Maori into the business and activity of fishing.

  • Ensuring the widest possible iwi representation in the legislative process, particularly in relation to amendments to the Fisheries Act, Customary Fisheries regulations and eventually the new Maori Fisheries Act. TOKM has a major role to play in the development of the Maori Fisheries Act which will set out how post-settlement assets are to be distributed on the basis of proposals developed by TOKM after full consultation with Maori. The new Act will also set out requirements for the appointment, composition and powers of any body succeeding TOKM.

  • Implementation of a training and development strategy, through a Charitable Trust set up for that purpose, aimed at ensuring Maori have the skills to match their fisheries assets.

TOKM achievements 1993-97

  • $50 new Maori fishing enterprises have been established;

  • Most Iwi fishing operations are currently operating good surpluses;

  • Significant employment for Iwi members has been generated by Iwi fishing enterprises;

  • The discount lease scheme has been extremely effective: $51.4 million is the estimated gross value of discounts on lease quota prices which has been distributed as benefits to Iwi in these three years;

  • $3,660,000 has gone to promoting training and development;

  • 20 percent of Iwi now operate, own or have interests in processing facilities.

  • TOKM has played a key role in the development of regulations protecting customary fisheries.

  • Legal action by TOKM to gain access to the Foveaux Strait oysters and to speed up the transfer of species outside the quota management system was successfully resolved in an out of court settlement. In February 1997, the Government and the Commission reached an out of court agreement that Maori should have 20 percent of the oyster quota from June 1997. This is the first new species to be transferred.

Assets held by TOKM on behalf of iwi

The assets held by TOKM on behalf of iwi/Maori can be divided into two broad categories: pre-settlement assets (PRESA) and post-settlement assets (POSA) acquired as result of the Deed of Settlement and the Sealord purchase. Assets include shareholdings in a number of companies involved in the fishing and seafood industry including Moana Pacific Fisheries Ltd, and Sealord Products Ltd.

  • Pre-settlement assets (PRESA). This comprises the 10 percent quota plus cash transferred from the Crown to Maori under the old Maori Fisheries Act and shares in Moana Pacific Fisheries and cash generated from these assets.

    • Cash—$49,683,283

    • Quota—57,213 tonnes

    • Shares—a 72 percent shareholding in Moana Pacific Ltd valued at $58,432,000.

  • Post-settlement assets (POSA). A 50 percent shareholding in Nelson-based Sealord Group acquired in 1993 for $350 million. Cash and a promise of 20 percent of all new quota to be entered into the Quota Management System (QMS).

  • The value of Maori fishing assets managed by TOKM has increased from around $250 million in 1992 to $700 million in 1996.

Allocation of assets to iwi

Work on the allocation of pre-settlement assets is seen as a necessary pre-requisite to the development of a post-settlement assets model. Significant progress on PRESA allocation was made in 1996. In April the Court of Appeal determined that urban Maori should be provided for in the allocation process and that the Commission should include Urban Maori Authorities amongst parties to be consulted during the development of an allocation model. In January 1997, the Privy Council overturned this ruling, finding that the definition of “iwi" and “urban Maori" should be determined by the High Court in New Zealand. All parties agreed to stay out of court while the Commission continued to work on a proposal to allocate assets.

Once decisions are made they will be presented to a hui of iwi representatives, and will then go to the Minister of Fisheries for approval. Once the Minister has approved the model, allocations can begin. A scheme for the distribution of post-settlement assets is also to be developed and will be set out in the new Maori Fisheries Act, scheduled for introduction to Parliament following the development of the PRESA allocation model.

Aquaculture

Pacific oysters, greenshell mussels and salmon continue to be the mainstay of New Zealand's marine farming industry, and are likely to continue to be so through the late 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 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 under way.

Reseeding, or ‘enhancement', of the southern scallop fisheries by 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.

New Zealand control

Since the advent of the Quota Management System, control of New Zealand's fisheries resources has been firmly held by New Zealanders and New Zealand companies. This point has not always been obvious to those not associated with the industry, and the perception still exists that foreign vessels are catching our fish.

The New Zealand domestic fleet, particularly the deepwater fleet, has expanded considerably in recent years, and in 1996-97 domestic vessels caught 54.2 percent of the total catch. A further 44.9 percent was caught by foreign vessels on charter to New Zealand fishing companies, with the New Zealand companies controlling the further processing and marketing of the product. The catch by foreign licensed vessels was negligible, less than one percent.

The charter fleet dominates the high volume deepwater fisheries (such as hoki and southern blue whiting) and the seasonal squid fishery. But, even in these fisheries, New Zealand domestic vessels are increasing their share of the catch. This trend is due to the significant investment by the seafood industry in new vessels.

As well as increased ‘New Zealandisation’ of the catching sector, the seafood industry has continued to invest in the processing and marketing sectors.

Table 19.14. REGISTERED COMMERCIAL FISHING VESSELS1

YearForeign licensed vesselsForeign chartered vesselsDomestic vessels

1At 30 September

Source: Ministry of Fisheries

19901141882,143
19911331602210
199244792,802
1993251672,707
199432632,569
199532542,575
199622552,458
199716592,170

19.4 Seafood trade

Exports. Three difficult trading years in a row (1993 to 1995) have resulted in static export revenue results at around $1.2 billion in each of those years. New Zealand seafood exports have been hit by a combination of factors, including prolonged price weakness in international markets and continued strengthening of the New Zealand dollar against major trading currencies, particularly the US dollar. The industry target of NZ$2 billion in annual export revenues by 2000 is becoming less and less attainable. A return to average nominal growth of 6-7 percent over the next five years would result in revenue of up to $1.75 billion by 2000.

In 1995 the historic top four species, orange roughy ($154.4 million), hoki ($147.5 million), rock lobster ($113.8 million) and Greenshell™ mussels ($86.9 million), were eclipsed by squid ($159.9 million). Excellent catches and better than average trading conditions were the reason. However, it is anticipated that this will be a one-off phenomenon. Snapper ($49.8 million) dropped back from fifth to seventh, as quota cuts reduced catches and revenue, and was replaced by ling ($55.2 million). In 1995 the volume of seafood exported, 322.2 thousand tonnes, increased 11.3 percent over 1994. The value increased 5.9 percent to $1.24 billion. This was in effect a nominal average decline per tonne of 4.8 percent.

Japan ($351 million), United States ($252.1 million) and Australia ($136.7 million) remained the most important individual export markets in 1995. Total exports to European markets were $150.1 million and grew 6 percent. Exports to other Asian markets were $299.3 million and grew 14.4 percent.

Table 19.15. SEAFOOD EXPORTS

Commodity exported19911992199319941995
QuantityValueQuantityValueQuantityValueQuantityValueQuantityValue

Source: New Zealand Fishing Industry Board

 tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.
Finfish or wetfish218.0701.0227.5887.7251.7869.1208.2760.0212.9791.1
Rock lobster2.8101.82.8101.43.3120.82.9119.63.0113.8
Shellfish40.4158.462.6228.650.2198.478.5287.3106.4333.1
            Total261.2961.2292.91,217.7305.21,188.3289.61,166.9322.21,238.0

A 4.7 kg Packhorse rock lobster on display at an international conference on lobster biology and management in Queenstown.

Table 19.16. PRINCIPAL FISH EXPORTS

Species19911992199319941995
QuantityValueQuantityValueQuantityValueQuantityValueQuantityValue

Source: New Zealand Fishing Industry Board

 tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.tonnes (000)$(m) f.o.b.
Abalone1.137.91.151.20.854.20.743.31.353.2
Barracouta12.917.510.616.117.720.89.511.311.515.7
Gemfish1.411.11.614.91.313.91.213.11.313.8
Hake4.416.94.025.04.021.42.318.05.927.7
Hoki49.2156.357.2202.060.8173.144.3114.047.7130.8
Ling6.129.09.150.08.242.38.948.19.251.4
Mackerel, blue7.45.57.15.93.82.90.80.71.91.7
Mackerel, jack14.410.121.823.329.122.622.716.716.115.2
Mussels10.742.112.852.414.955.317.870.221.386.8
Orange roughy14.3138.612.1165.114.7201.112.4167.812.3151.1
Oreo dory6.224.55.520.66.923.26.524.95.220.5
Rock lobster2.8101.82.8101.13.3120.82.9119.43.0113.8
Salmon2.320.22.627.52.626.32.723.73.824.4
Scallops0.615.01.020.11.120.83.893.42.657.9
Scampi0.23.20.611.80.610.50.711.00.612.9
Snapper6.651.57.063.36.561.06.357.05.449.8
Southern blue whiting12.716.614.041.210.314.93.26.01.62.6
Squid25.247.344.780.230.952.955.0119.878.8158.6
Tuna8.916.64.214.75.410.67.929.48.535.4
Warehous5.714.36.122.66.317.36.118.85.9519.11

Table 19.17. VALUE OF FISHERIES EXPORTS TO PRINCIPAL MARKETS

Country19911992199319941995
ValuePercentage of total exportsValuePercentage of total exportsValuePercentage of total exportsValuePercentage of total exportsValuePercentage of total exports
Source: New Zealand Fishing Industry Board
 $(m) f.o.b. $(m) f.o.b. $(m) f.o.b. $(m) f.o.b. $(m) f.o.b. 
Japan290.030.2409.233.6247.120.8328.728.2351.028.4
United States253.726.4291.123.9317.226.7260.422.3252.120.4
Australia102.710.7121.810.0126.910.7131.111.2136.711.0
  Total fisheries exports961.2 1,217.7 1,188.3 1,166.9 1,238.0 

Imports. In the year to December 1995, 12,924.6 tonnes with a value of $80.1 million (CIF) of fish and fish preparations were imported to New Zealand. Major imports remain prawns, orange roughy, shrimp, sardines, salmon and tuna.

Household spending on seafood showed modest growth in 1993 with regard to actual expenditure but fell as a percentage of total food purchases. Meat also shared this trend; the gap was filled by poultry.

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 seafood 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 chief executive of the Ministry of 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 seafood industry including co-ordination of industry submissions on fisheries policy and legislation, economic research, seafood marketing and trade access, industry input to fisheries stock assessments, information services and publicity. The board advises government on sound fishing management policies by providing information, being available for consultation and through direct input to government decision-making. There is also close liaison with the Seafood Industry Training Organisation in the provision of training at all levels.

1995 saw a further increase in the proportion of the total catch from the Exclusive Economic Zone (EEZ) caught by the New Zealand-owned fleet, with 55 percent of total catches now taken by domestic New Zealand-owned vessels. Investment in large deep-water trawl and long-line vessels by New Zealand companies over the past five years is resulting in a declining use of chartered vessels in the deep-water fishery. The industry is also landing increasing quantities of the catch in New Zealand for processing, with nearly 80 percent of the total seafood catch taken in the EEZ now landed in New Zealand. The extent of further processing is dependent on prices for different product forms in international markets.

Surveyed employment in the seafood industry rose by 1.4 percent to a record level of 10,002 full-time equivalent jobs in 1995. Over the past five years employment in the industry has risen by 20.6 percent or 1,710 jobs, with 1,522 of these additional jobs in the processing sector. Over the same period, total seafood production from the EEZ has declined slightly. The growth in jobs in the processing sector is a direct result of the increasing proportion of the catch landed in New Zealand for further processing. The industry also employs significant numbers of seasonal workers unaccounted for in the above figures.

Table 19.18. FISHING INDUSTRY: STATISTICAL SUMMARY
Ocean, coastal and fishing, fish farming and fishing consulting
New Zealand Standard Industrial Classification (NZSIC) = Division 13

Statistical item1994-951995-96Percentage change
 $(million)$(million)percent
Inventories:
    Closing stocks26.536.738.5
    Opening stocks28.624.2-15.4
Income:   
    Sales of goods and services771.9768.4-0.5
    Interest, dividends etc.3.15.267.2
    Government grants and subsidies3.03.825.0
    Other income including extraordinaries6.410.562.6
    Total income784.5787.80.4
            Total income adjusted for stocks782.4800.42.3
Expenditure:
    Employment Related:
      Salaries and wages paid to employees72.184.216.8
      Redundancy and severance0.20.0-97.0
Salaries and wages to working proprietors (SW to WPs)14.117.524.3
      Levies paid to ACC5.96.916.9
      Employer contributions to superannuation schemes1.21.2-1.2
    Fringe Benefit Tax0.20.2-29.4
    Purchases and other operating expenses537.0534.2-0.5
    Indirect taxes (excl FBT)1.91.3-30.6
    Depreciation40.646.414.3
    Other expenses including extraordinaries3.22.8-12.6
            Total expenditure694.3715.43.0
Net profit before tax, extraordinaries, SW to WPs99.094.8-4.2
Net profit before tax, SW to WPs102.2102.50.3
Fixed tangible assets:
    Purchases of plant, machinery, vehicles & equipment91.5134.547.0
    Purchases of land and land improvements3.61.7-51.9
    Purchases of buildings and other construction7.09.333.2
    Total purchases of fixed tangible assets102.1145.542.6
    Sales of fixed tangible assets17.524.640.6
Balance sheet:
    Shareholders funds or owners equity349.6423.921.2
    Current liabilities187.9197.75.2
    Other liabilities183.2169.3-7.6
    Total capital and liabilities720.7790.99.7
    Fixed tangible assets371.6432.116.3
    Current assets150.6167.311.1
    Other assets198.5191.6-3.5
    Total assets720.7790.99.7
Total Income per FTE$171,105$89,076 
Net Profit per FTE$21,591$10,722 
Ratios:percent 
    Current ratio80.184.6
    Quick ratio66.066.0
    Profit margin on sales12.812.3
    Return on equity28.322.4
    Return on total assets13.712.0
    Liabilities structure48.553.6

In 1993 the seafood industry adopted a strategy seeking $2 billion in exports by the year 2000. The ensuing three years have been difficult and the $2 billion target is not longer considered attainable by 2000. Since generating a record $1.2 billion in 1992, seafood export receipts have remained static. This is due to flat international trading conditions for fish products, a significant strengthening of the New Zealand dollar and stable production. As with many other primary industries, the seafood industry is a price taker on international markets. Through further processing and increasing the production of value added and filleted products, the value of exports has been maintained in spite of the unfavourable exchange rate movements.

Fishery statistics

Statistics on fish landed and fish exports are compiled annually by the New Zealand Seafood Industry Council (SeaFic).

Statistics New Zealand produces broad economic data on the industry, through the Annual Enterprise Survey, which covers the activities of all businesses classified in Subdivision 04 of the Australian and New Zealand Standard Industrial Classification. A summary of results is given in table 19.18.

Contributors

  • 19.1 Ministry of Agriculture and Forestry; Statistics New Zealand.

  • 19.2 Ministry of Agriculture and Forestry.

  • 19.3 Ministry of Fisheries; Treaty of Waitangi Fisheries Commission.

  • 19.4 Ministry of Fisheries; New Zealand Seafood Industry Council.

Further information

Forestry

A National Exotic Forest Description. Ministry of Forestry, 1996.

Branching Out—A Career in Forestry. Ministry of Forestry, 1995.

Business Activity Statistics 1995. Statistics New Zealand.

Forestry Handbook. New Zealand Institute of Forestry, 1995.

Forestry Insights (a series of five education resource kits held by most New Zealand schools). Forestry Insights, 1992-1995.

Forestry Projects - Sources of Assistance. Ministry of Forestry, 1995

Forestry Report. Ministry of Forestry (quarterly).

Forestry Sector in New Zealand, The. Ministry of Forestry, 1993.

Forestry Sector Issues. Ministry of Forestry, 1997.

National and Regional Wood Supply Forecasts. Ministry of Forestry, 1996.

New Zealand Forestry Statistics 1995. Ministry of Forestry, 1996.

Regional Studies. Ministry of Forestry, 1994. (10 regions).

Report of the Ministry of Forestry. (Parl paper C.16).

Statistical Releases. Ministry of Forestry (series).

Fishing

Achieving sustainable fisheries. Ministry of Fisheries, 1996.

An introduction to the Fisheries Act. Ministry of Fisheries, 1996.

Changing course—Towards fisheries 2010. Ministry of Fisheries, 1996.

Economy Wide Census 1987. Department of Statistics.

New Zealand Fisheries Technical Report. NIWA.

New Zealand Journal of Marine and Freshwater Research. Royal Society of New Zealand (quarterly).

New Zealand Seafood Industry Economic Review. NZFIB.

Report of the Ministry of Fisheries (Parl paper C.20).

Report of the New Zealand Fishing Industry Board (Parl paper C.6).

Report of the Treaty of Waitangi Fisheries Commission Te Ohu Kai Moana (Parl paper C. 19).

Te Ohu Kai Moana Hui-a-Tau (Annual Meeting) Report.

Te Ohu Kai Moana Corporate Profile and Strategic Plan.

Chapter 20. Energy and minerals

Marsden B power station chimney is felled by 50kg of explosives, October 1997, as part of the power station's demolition. The 250MW Marsden B had been mothballed since it was completed as a Think Big project in 1979.

20.1 Energy

Energy contributes about 3 percent to New Zealand's gross domestic product (GDP), and directly employs about 9,000 people, or slightly over 0.5 percent of the workforce. The efficiency with which New Zealand produces and uses energy impacts directly on its international competitiveness, economic growth and the quality of the environment.

New Zealand's total primary energy supply (the amount of energy available for use in New Zealand for energy transformation and end-use) for the year ended December 1996 was 696 PJ, an increase of 4.5 percent over the previous year. Oil provides 32 percent, gas 29 percent, coal 7 percent, hydro 13 percent, geothermal 13 percent and other renewables (which include electricity generation from wind, biogas, industrial waste and wood) 5 percent.

New Zealand is self-sufficient in all energy forms apart from oil. In 1996 New Zealand was 89 percent self-sufficient in its primary energy needs and 44 percent self-sufficient in oil.

New Zealand's energy intensity (measured as energy use per dollar of GDP) is amongst the highest in the OECD, but the steady increase from 1982 to about 1992 has reversed in the last few years. Total energy consumption was 423.5 petajoules (PJ) in 1995, which is equivalent to about 3,400 litres of petrol per person. New Zealand's consumer energy (energy used by final consumers) is dominated by oil, comprising 197 PJ per year (47 percent), with electricity 113 PJ (27 percent), coal 36 PJ (9 percent), gas 36 PJ (9 percent), with renewables such as geothermal, wastes and wood making up the remainder.

Energy policy

There have been general moves in the economy since the mid-1980s to remove statutory barriers to competition, and to reduce the government's direct involvement in business activities. These have included the removal of direct government involvement in the operational aspects of energy supply and demand through the corporatisation of previously government-owned and operated energy trading departments. Energy markets have been substantially deregulated. All sectors—including gas, oil, coal and electricity—were affected.

In the late 1980s major milestones included the corporatisation of New Zealand's electricity generation and transmission and the deregulation of the petroleum industry, including the removal of price controls from diesel and petrol. Legislation passed in 1992 deregulated and reformed the electricity and gas industries, including the removal of the traditional electricity and gas franchise areas, the removal of price control on gas, and the corporatisation of the electric power boards and municipal electricity departments. More recently, New Zealand's major generator, the Electricity Corporation of New Zealand Limited or ECNZ, has been split into two State-owned enterprises and a competitive wholesale electricity market established.

The Ministry of Energy divested the generation and transmission assets of its Electricity Division to ECNZ when it was established in 1987. The Ministry of Energy itself was disestablished in 1989, its remaining policy and regulatory activities being largely transferred to the new Energy and Resources Division of the Ministry of Commerce.

The government's energy policy objective has been to ensure the continuing availability of energy services, at the lowest cost to the economy as a whole, consistent with sustainable development. This has led to competitive markets operating within an effective and stable regulatory framework set by the government.

There are a number of areas where government interventions have still been considered necessary: natural monopolies, environmental impacts, and barriers to energy efficiency uptake.

Natural monopolies. The energy sector is characterised by a number of activities that have strong natural monopoly characteristics: notable among these are electricity and gas transmission and distribution lines. There is the potential for the owners of such facilities to over-charge for their use, and to restrict access to competitors, to the detriment of consumers and the economy as a whole.

The government has introduced so called ‘light handed’ regulatory regimes which rely on Commerce Act provisions to prohibit anti-competitive actions, supported by regulations which require extensive disclosure of information on the operation of electricity and gas lines in particular. There are also legislative powers available to introduce price regulation if necessary.

Environmental impacts. The Resource Management Act is designed to ensure that the local impacts of energy production and use are avoided, remedied or mitigated. This ensures that local environmental costs are recognised in planning processes.

In addition, however, there are global impacts, for example the risk of climate change from carbon dioxide emissions resulting from the use of fossil fuels (oil, gas and coal). There has been recent debate about how best to deal with carbon dioxide emissions with considerable attention focused on ‘polluter pay’ approaches, whereby the perceived environmental costs could be incorporated in energy prices through introducing carbon taxes or emission permits. Current policy is for a low level carbon tax to be introduced in 1997 if emissions containment is not ‘on track’ to meet a year 2000 target.

Energy research and development. The government has established a process for setting long-term priorities for the allocation of monies from the Public Good Science Fund (PGSF). Priorities were first set in 1992 for the five-year period to 1997/98. This provided for an increase in energy sector research and development from $4.68 million in 1992/93 to $6.67 million in 1997/98 (an increase of 43 percent, compared to an overall PGSF increase of 14 percent), and a shift in focus from fossil fuels and traditional renewables (hydro and geothermal) to energy efficiency and non-traditional renewables.

These priorities were reviewed in 1995 and energy research and development is to increase by 61 percent to $7.8 million, compared to an aggregate PGSF increase of 28 percent. Again increased emphasis is to be given to work in the energy efficiency and non-traditional renewables areas. A further review will occur in 1998.

Table 20.1. TOTAL PRIMARY ENERGY SUPPLY

Calendar yearCoalImported oil and productsIndigenous oilGasHydroGeothermalTotalImported oil as % of total

Source: Ministry of Commerce

 Petajoule
197462.8177.58.0 54.153.6388.345.7
197559.1191.38.3 59.453.2405.847.1
197660.5156.922.0 55.250.7401.939.0
197757.7146.831.5 52.547.8421.434.8
197853.4142.326.8 55.848.7408.434.8
197947.4147.017.9 65.743.8382.638.4
198050.8148.215.7 69.047.3390.438.0
198151.4139.221.0 70.144.7395.435.2
198250.9123.732.1 65.245.4420.729.4
198356.0124.231.5 70.469.1459.427.0
198452.7116.140.8109.272.681.2495.123.4
198552.1114.231.4140.670.276.9508.922.4
198657.777.558.6168.978.880.4543.914.2
198751.491.659.4162.878.169.8534.016.9
198849.479.861.7 81.861.4536.414.9
198951.393.657.0  72.7567.116.5
199052.4112.446.9 82.688.2590.219.0
199146.8120.346.6 81.693.5613.319.6
199249.3126.646.4 75.294.3627.720.2
199354.5126.444.0 83.799.6639.619.8
199443.7157.037.2 92.194.1644.724.3
199548.2178.531.2  91.4658.127.1
199645.4183.340.8204.292.691.9695.6 

Table 20.2. TRENDS IN CONSUMER ENERGY USE

Calendar yearSolid1OilGasElectricityGeothermal2Total

1Solid fuels include wood and other renewables.

2Direct use of geothermal.

Source: Ministry of Commerce

 petajoules
19545559216NA132
19644890230NA170
197441151758NA257
198440140488330341
198535136548431340
198641141538832355
1987421405410522363
198855147529413361
198957154449712364
1990711624010011384
1991731604110212388
1992691714110013394
1993751714010514405
1994R711863710713414
1995701963611013424
1996641973611313424

Future energy scenarios

New Zealand's energy sector will continue to undergo significant change in the next 25 years as the demand for energy grows, the Maui gas field declines, and new technologies become economic.

Based on the Ministry of Commerce's supply and demand scenarios projections are that between 1995 and 2000, consumer energy will grow by 1.5 percent per year for an assumed 3 percent GDP growth. This represents a significant decline in the ratio of energy growth to GDP growth from around 1.2-to-1 in the past 25 years, to around 0.5-to-1 in the next 25 years as the New Zealand economy becomes less energy intensive.

Residential sector consumer energy is projected to grow at around 1.7 percent per year between 1995 and 2020—the industrial and commercial sector by 0.8 percent, and the transport sector by around 2.0 percent per year. Over the same period electricity consumption is projected to grow each year by around 1.8 percent, the consumer energy of coal by 0.9 percent, oil by 2.0 percent, and gas to decline by an average of around 0.5 percent. The decline in gas consumption will be affected by the draw-down of the Maui field in the early years of the next century, and the resultant closure of the petrochemicals plants.

In the baseline scenario, around 2600 MW of new electricity generating capacity is projected to become economic by 2020, as demand for electricity exceeds the economic capacity of the current system. Around 400 MW each of gas combined cycle, geothermal and coal is projected to become economic, along with around 600 MW of hydro, 450 MW of cogeneration, 200 MW of wind and 150 MW of distillate plant.

The composition of electricity generation is projected to change significantly as these new increments are installed, and when Huntly switches to coal as gas prices rise above coal prices between 2000 and 2005. Hydro's share of electricity generation is expected to decline from 74 percent in 1995 to around 55 percent in 2020, and gas's share from around 14 percent now to around 7 percent in 2020. Electricity generated from coal experiences the most rapid fuel share growth, from around 2 percent in 1995 to around 17 percent in 2020.

CO2 emissions are projected to increase by about 1.8 percent per year, with transport and electricity generation contributing most of the growth.

The following points should be considered when examining table 20.3:

Supply—the supply data is compiled from monthly returns. Solid fuel includes coal, coke, peat and wood. Figures for wood and geothermal are estimated. Approximately 80 percent of geothermal is used as an input to electric power generation. The rest is used directly as a heat source. LPG production is included in indigenous oil production.

Total primary energy supply—is the amount of energy available for use in New Zealand for energy conversion and end-use. Primary energy = indigenous production + imports - exports +/- stock change - international transport.

Table 20.3. ENERGY SUPPLY AND DEMAND BALANCE, 19961

 CoalOilGasHydroGeothermalOther renewablesElectricityTotal

1Year ended December.

Source: Ministry of Commerce

 Petajoules
Supply
Indigenous production96.299.7204.592.691.937.5-622.4
    + Imports0.2232.8-----232.9
    - Exports51.063.5-----114.4
    - Stock change-5.40.4----5.7
    - International transport-39.5-----39.5
    Total primary energy supply45.4224.1204.192.691.937.5-695.6
Transformation
Electricity generation-6.6--60.9-92.6-70.7-1.3123.1-109.1
Cogeneration-5.4--6.8--2.0-8.06.3-15.9
Liquid fuels production-2.7-17.4-----14.7
Losses and own use-2.0-8.1-5.7--6.0--10.6-32.4
    Total, transformation-14.0-5.4-90.8-92.6-78.7-9.4118.7-172.1
Non-energy use--13.8-75.7-----89.5
    Consumer energy (calculated)31.4205.037.7-13.228.1118.7434.0
Demand
Agriculture1.016.8----4.922.8
Industrial28.010.924.8-10.621.746.7142.7
Commercial5.84.25.4--0.121.537.0
Residential1.22.34.7-2.66.339.456.5
Domestic transport0.1163.21.1---0.2164.5
    Consumer energy (observed)36.1197.436.0-13.228.1112.8423.5
Discrepancies-4.77.61.7---5.910.5

A 22 metre wind turbine at Waikaretu, west of Huntly, which it is claimed produces six or seven times more electricity than other windmills, will contribute power to the national grid.

Transformation—transformation of energy from one form to another always results in conversion losses. These losses are shown as negative entries in the table. Efficiencies for electricity generation are assumed to be 34 percent for gas and coal plants and 30 percent for cogeneration. Hydro and wind are taken as being 100 percent efficient and geothermal as 10 percent.

Consumer energy (calculated) = total primary energy supply + total transformation + non-energy used (primary energy used for other purposes eg bitumen for roads, natural gas as feedstock to produce methanol and ammonia/urea).

Energy demand—consumption data is estimated from information about where and how energy is used. Transport refers to road, rail and domestic air transport. Direct use of geothermal energy for commercial consumption is included in the domestic figure.

Consumer energy (observed) = agriculture + industrial + commercial + domestic + transport.

20.2 Electricity

Fuel share. Currently, depending on demand, rainfall and lake storage conditions, around 80 percent of New Zealand's electricity demand is met by renewable resources, with hydro contributing most of this (about 72 percent in 1996) and geothermal 6 percent. Over two-thirds of hydro electricity is generated in the South Island, and all geothermal electricity is generated in the North Island. Most of the balance of electricity demand is met by generation from natural gas, 18 percent in 1996, with a small amount from coal and a small but increasing contribution from non-traditional renewables, wind and land-fill gas.

Plant types. In 1995 (prior to its break-up) the Electricity Corporation of New Zealand Limited (ECNZ) generated 92 percent of electricity used in New Zealand from its 38 power stations, ranging in generating capacity from 3 megawatts (MW) to New Zealand's largest, the 1000 MW, four-turbine Huntly power station, which can run on gas or coal. Electric power companies' relatively small generating schemes ranging in capacity from 0.3 MW to 78 MW generated a further 4 percent while the remaining 4 percent of total generation came from co-generators.

Conveyance. New Zealand is fully reticulated through a national high voltage transmission network and local low voltage distribution networks largely operated by the electric power companies. Power transmission between the North and South Island is via a high voltage direct-current (HVDC) link from the Benmore power station in the South Island to Haywards substation in the North Island. Part of this link is a submarine cable running under Cook Strait. The link allows surplus power generated in the South Island to be transmitted to the North Island where demand is greatest, but also allows transmission from north to south.

The largest electricity-using sector is industry (aluminium smelter, iron and steel works, and several pulp and paper mills and large dairy factories), followed by the household sector and commercial applications. Annual per capita end use is 34 GJ (9400 kWh).

Electricity sector developments

Transmission. In April 1994 ECNZ's transmission business was separated from ECNZ into a new State-owned enterprise, Trans Power (New Zealand) Limited, with the purpose of ensuring the independence of the transmission grid.

Distribution and retailing. The Energy Companies Act 1992 required corporatisation of the then electric power boards and municipal electricity departments of local authorities. Ownership structures are now a mixture of local authority, trust, and private ownership.

Many amalgamations and mergers have occurred particularly between neighbouring companies.

The wholesale market. The Electricity Market Company (EMCO) was established in 1993 for the purpose of developing and providing the various services required by the proposed wholesale electricity market. EMCO administers the rules which govern the New Zealand Electricity Market (NZEM). A fully functioning wholesale electricity market came into effect on 1 October 1996. The rules provide for an ex ante financial commitment market, providing the opportunity for purchasers and generators to establish a price and quantity a day ahead of actual delivery.

Table 20.4. ELECTRICITY CORPORATION OF NEW ZEALAND: Financial performance (Abridged)

Year ended 30 June199519961997

Source: Electricity Corporation of New Zealand

             $(million)
Gross income1,5191,341 R1,103
Operating expenses850744 R642
Net finance costs8811084
Profit before taxation581487377
Taxation195162113
Profit after taxation386325264
Less: Dividends (paid to the Crown)8561,416306

Table 20.5. ECNZ ELECTRICITY GENERATION

StationCommissionedOperational capacity MWEnergy generation year ended 30 June
1994199519961997

17 months to 1 February 1996.

Source: ECNZ

 GWH
Huntly1982-851,0005,7163,9544,0685,440
Te Awamutu199552--165200
            Total thermal1,0525,7163,9544,2335,640 
Arapuni1929-461726731,1301,1891,015
Aratiatia196484230439441372
Atiamuri1958-6284215386388331
Karapiro1947-4896425645631578
Maraetai1952-713606231,1141,1361,008
Ohakuri1961-62112299522544463
Rangipo1982-83120388620550298
Tokaanu1973240480963931743
Waipapa196159202327336295
Whakamaru1956100390648661572
            North Island hydro 1,4273,9256,7946,8075,675
Aviemore19682201,0251,0441,079915
Benmore1965-665402,5102,6462,7292,339
Manapouri (installed 700MW)1969-715854,8174,7004,5254,068
Ohau A19792641,2371,2181,1651,165
Ohau B19802121,0571,050980975
Ohau C1983-852121,0641,056983974
Tekapo A195125146136146145
Tekapo B1977160856551837935
Waitaki1935-36105558580574502
            South Island hydro 2,32313,27012,98113,01812,018
            Total hydro 3,75017,19519,77519,82517,693
Wellington wind turbine 0.2251111
            Total from plant to be retained by ECNZ 4,80222,91223,73024,05923,334
Station sold 7.4.95 (Arnold) -2413--
Stations sold to Contact 1.2.96 -7,5976,8014 2561-
Hydro stations to be sold 3241,0081,5131,5361,095
Station being dismantled --17-18-15-
            Total generated by ECNZ 5,12631,52432,03929,83624,429
Generation purchased  11-2,8171,673
            Total generated and purchased  31,53532,03932,65326,102

Table 20.6. ELECTRICITY GENERATION BY FUEL TYPE

Calendar yearsHydroGeoOilCoalGasBiogasSteamWoodWindTotal

Source: Ministry of Commerce

 GWh
199022,9532,09195495,335131240336-31,644
199122,6662,185233106,866151240336-32,778
199220,8822,1801881,0447,0051562403360.732,031
199323,2582,284595636,5421562403361.033,439
199425,5792,140105095,1371622403361.034,115
199527,2592,049476874,5392022433361.035,364
199625,7132,020159746,4222272423118.235,931

Table 20.7. ELECTRICITY CONSUMPTION BY SECTOR

Year ended 31 MarchResidentialCommercialIndustrialTotal consumption
ConsumptionNumber of consumersAverage price (excl. GST)ConsumptionNumber of consumersAverage price (excl. GST)ConsumptionNumber of consumersAverage price (excl. GST)

Source: Ministry of Commerce

   cents/  cents/  cents/ 
 GWh(000)KWhGWh(000)KWhGWh(000)KWhGWh
19909,8241,2758.125,64417311.7511,842995.7827,309
199110,2641,3048.245,66817411.7111,8871045.7127,819
199210,4741,3268.875,55014811.5412,5841255.8028,609
199310,1241,3339.215,39714511.4712,2651306.0727,786
199410,2561,3439.705,58014611.0413,3921325.9929,228
199510,4161,35610.245,67513910.8613,8341325.8429,925
199610,5841,37110.735,59514111.1214,3421316.3330,522
199710,9591,37711.456,10113810.9914,2001366.1231,260

20.3 Oil

Oil which includes condensate, crude oil and oil products accounted for 224 PJ (32 percent) of primary energy and 197 PJ (46 percent) of consumer energy in 1996. The consumer energy of oil includes synthetic petrol produced from natural gas.

Reserves. New Zealand's estimated remaining crude oil and condensate reserves are dominated by the Maui field, which as at December 1996 contains 66 percent of New Zealand's reserves, with Kapuni, Kupe and McKee dominating the balance.

Mr Lamont, a maritime boundaries expert, will represent New Zealand on the UN Commission on the Limits of the Continental Shelf. New Zealand's claim to extend its jurisdiction could win us further oil and mineral rights.

Production. New Zealand's production of crude oil and condensate was 91 PJ in 1996, all from on-and off-shore fields in the Taranaki region. Nearly half of total production comes from the off-shore Maui field. Two-thirds, or 46 PJ, of oil production is in the form of condensate produced from the Kapuni and Maui fields. The remaining one-third of oil production, 23 PJ, is as crude oil, produced at the McKee, Kaimiro, Waihapa and Ngatoro fields, and more recently from Maui's F Sands production field. The average daily production of crude oil and condensate is 0.188 PJ (about 30,000 barrels or 4,800,000 litres). About one-third of local production is used for refinery feedstock, and about two-thirds is exported.

Refinery. New Zealand's only oil refinery is located at Marsden Point, near Whangarei. The main feedstocks are imported crude oil (about two-thirds) and local crude oil and condensate (about one-third). The refinery produces petrol, diesel, aviation kerosene, fuel oils and bitumen.

Imports. New Zealand imports crude oil from Saudi Arabia, the United Arab Emirates and Australia. To meet demand the oil wholesalers also import refined petroleum. Imports of oil increased 16 percent from 1990 to 1995, in part due to the upturn in the economy.

Exports. New Zealand exports about two-thirds of local crude oil and condensate production. In addition, 0.6 percent of refined products is exported from New Zealand, and 19 percent is used by international transport.

Synthetic petrol. A varying amount of New Zealand's petrol demand is supplied by synthetic petrol produced from Maui gas at the Motunui synthetic petrol plant. The synthetic petrol is blended with other petrols at the refinery, exported, or sold directly on the New Zealand market.

Self-sufficiency. New Zealand's primary self-sufficiency in oil depends on both indigenous oil production and demand. Over the period 1974 to 1986 it increased dramatically from under 5 percent to over 50 percent. In 1995 with demand having increased faster than production, it was 36 percent.

Distribution. A refinery-owned pipeline transports about a third of the refinery's production to Wiri in South Auckland to supply the Auckland area. The rest of New Zealand is mostly supplied by coastal tankers supplying port depots, and then by road tankers.

End use. New Zealand's consumer energy is dominated by oil, comprising 197 PJ (46 percent) of the total consumer energy of 427 PJ. Domestic transport dominates the consumer energy use of petroleum products, with 164 PJ (over 90 percent) of oil consumption being used for transport, with 72 percent of this for road transport. Annual per capita end use of petroleum products is 53 GJ (about nine barrels or 1,430 litres).

Unleaded petrol. Unleaded regular grade petrol was introduced into New Zealand in 1987. Since then there has been a steady increase in its use with unleaded regular grade comprising about 70 percent of total petrol demand in 1996.

Table 20.8. OIL AND CONDENSATE RESERVES AND PRODUCTION

FieldReservesProduction
Ultimate RecoverableAs at 1 January 19971996
Mm3Mm3PJMm3PJ

Source: Ministry of Commerce

Kaimiro0.560.239.20.0592.15
Kapuni9.941.1940.60.2326.90
Kupe2.592.5995.4--
Maui27.9713.47471.91.78262.22
McKee7.191.4756.50.31612.05
Ngatoro0.630.4413.80.0561.77
Tariki/Ahuroa0.550.5219.10.0371.36
Waihapa/Ngaere3.640.145.50.1064.22
            Total53.0720.05711.92.58790.68

Table 20.9. GAS RESERVES

FieldReservesProduction 1996 (gross)
Ultimate RecoverableAs at 1 January 1997
Mm3PJMm3PJMm3PJ

Source: Ministry of Commerce

Kaimiro5182028511.130.91.19
Kapuni33,69788917,748468940.025.05
Kupe7,4763097,476309--
Maui108,7584,38051,5152,0754,218.4173.53
McKee4,5311922,913123224.09.04
Ngatoro1055753.911.40.59
Tariki/Ahuroa2,7441172,639112.1105.95.33
Waihapa/Ngaere75522230.727.21.22
            Total158,5845,93482,6743,1035,557.8215.95

Table 20.10. CRUDE OIL AND CONDENSATE, PRODUCTION AND TRADE

YearCrude oil and condensate
New Zealand productionImportsRefinery intakeExports

Source: Ministry of Commerce

 petajoules
198758.69104.34152.684.66
198870.66112.81170.3214.46
198979.17137.88188.4627.56
199081.55143.28188.4840.24
199185.28143.84182.5244.88
199280.36141.52182.3640.50
199384.70158.38192.2847.58
199481.51175.84202.0251.35
199568.33169.37196.2844.11
199690.68165.55189.6159.63

20.4 Gas

Reserves. New Zealand's major gas resource is the Maui offshore field which has about two-thirds of New Zealand's estimated economically recoverable gas reserves of around 2500 PJ. Kapuni and the, as yet undeveloped, Kupe field have about 12 percent each. These reserves are estimated to last until about 2014, with the Maui field possibly running out around 2006.

Production. Natural gas production is 180 PJ per year, 27 percent of total primary energy supply. Gas is produced in the Taranaki region. In 1995 natural gas production was dominated by the Maui and Kapuni fields (95 percent of total production). The McKee, Waihapa and Ngatoro fields produce the remaining 5 percent. The Kaimiro field has not produced gas since April 1995.

Distribution. It occurs only in the North Island and comprises 2,600 kms of high pressure gas transmission pipelines and low pressure distribution systems in most cities.

Petrochemicals. About half of New Zealand's gas is used for petrochemicals, in the production of chemical methanol and synthetic petrol at the Motunui synthetic petrol plant and Waitara methanol plant. Crude methanol is produced from natural gas, primarily from the Maui and Kapuni fields, and then either distilled into high (“AA”) grade methanol or made into synthetic petrol: the product mix depends on relative prices. Some Maui and Kapuni gas is used also in the production of ammonia/urea.

Other end use. Twenty-six percent of New Zealand's gas is used for electricity generation, and 22 percent is reticulated to the commercial and residential sectors. Of the 37 PJ of consumer energy reticulated in 1995, 25 PJ was used in industry, 5 PJ in the commercial sector, 5 PJ in the residential sector and 1 PJ in transport (as compressed natural gas, or CNG). Annual per capita end use of gas is 12 GJ (300 cubic metres).

Compressed Natural Gas (CNG) is supplied through a network of North Island service stations for the automotive market. The gas industry also produces liquefied petroleum gas (LPG), which is transported by sea and rail throughout New Zealand.

Table 20.11. GAS PRODUCTION AND DEMAND

Calendar yearTotal gross natural gas productionGas reinjectedLPG extractedFlaredProduction losses and own useNet natural gas productionDirect sales (est.)Reticulated sales (est)

Source: Ministry of Commerce

1990217.3127.906.012.213.59177.61140.2038.60
1991228.3122.117.082.453.65193.02151.8042.16
1992243.2325.157.691.884.30204.21164.8240.32
1993237.7024.797.981.574.41198.95158.8739.65
1994227.8428.668.141.854.77184.41142.0741.89
1995207.6719.417.611.244.72174.68132.0341.18
1996243.6227.678.942.485.43199.10154.0244.50

20.5 Coal

Resources. Coal occurs widely in New Zealand, with total in-ground coal resources estimated at about 15 billion tonnes. Of this, 8.6 billion tonnes is judged to be economically recoverable, made up of about 80 percent relatively low grade lignite, 15 percent middle grade sub-bituminous coal, and the remaining 5 percent bituminous coal. About 90 percent of the economically recoverable coal by weight, or 75 percent by energy content, is located in the South Island.

Of the economically recoverable resources, about one-third is in existing mines, while the remainder could be mined without significant investigatory work.

Production. Coal production for the year ended December 1996 was about 96 PJ, or 3.6 million tonnes, mainly sub-bituminous. Of the 44 mines operating (down from 53 in 1995) 33 were opencast and 11 underground, responsible for about 69 percent and 31 percent of total coal production respectively. Only six mines produced over 200,000 tonnes of coal, and 26 operations had an output of less than 10,000 tonnes.

Table 20.12. COAL PRODUCTION, EXPORTS AND CONSUMPTION

Calendar yearGross petajoulesTonnes (000)
Total productionExports1Total consumption2Total productionExports1Total consumption2

1Based on information obtained from Statistics New Zealand (INFOS database). Exports of coal include bituminous and lignite.

2This hybrid series includes exports, electricity generation (including cogeneration) and basic metals consumption. The difference between production and consumption is a change in stock levels.

Source: Ministry of Commerce

199063.0110.5360.602,587.6335.72,509.4
199165.6519.1266.992,684.2609.42,741.4
199273.4024.1576.902,948.5769.73,148.6
199379.2424.7176.103,098.6787.63,082.5
199476.4832.7481.282,997.61,043.63,202.5
199591.5042.7191.633,446.01,333.83,477.3
199696.2150.9098.923,610.61,589.53,698.7

Exports. The markets for premium grade New Zealand coal in the year to September 1997 were (by energy content) Japan (37 percent), Chile (22 percent), India (15 percent), China (10 percent) and Australia (5 percent).

COALFIELDS

Table 20.13. COAL FLOW SUMMARY for the year to September 1997, in PJ

ProductionExportAdjustmentsUse (observed)

Source: Ministry of Commerce

   Own use- 2.0Electricity generation (includes cogeneration)20.1
Bituminous49.5   Iron and steel15.0
Sub-bituminous45.1 Difference between calculated production available for domestic use, and observed use..-6.8Other industry11.5
Lignite4.6   Commercial4.7
     Transport, agricultural, residential2.3
Total production99.1- 36.7 + - 8.8= Total use53.6

End use. For the year to September 1997 the main end users of coal in New Zealand were electricity generation (including cogeneration) 38 percent, iron and steel 28 percent, other industry (mainly cement, lime and plaster, meat, dairy products, forestry and timber products) 21 percent, commercial 9 percent and residential 2 percent. Annual per capita end use is about 11 GJ (480 kg).

Coal sector developments. The government's interests in coal operations, the Coal Corporation of New Zealand Limited, or Coalcorp, now trades as Solid Energy. Solid Energy produces about two-thirds of New Zealand's coal from 11 mines, and has major export contracts to Japan, India and China. It also supplies about 63 percent of the local market. The remainder is supplied by private operators of a further 33 mines.

20.6 Renewables

Renewables are a major part of New Zealand's total primary energy supply, contributing 220 PJ or 32 percent. This is dominated by hydro and geothermal at around 92 PJ per year each. Wood provided the next largest renewable contribution of 32 PJ, with “wastes" 3 PJ, and under 3 PJ from biogas and wind.

Table 20.14. RENEWABLE ENERGY DATA (PJ)

 1990199119921993199419951996

1Totals and subtotals may not add up due to rounding.

2Refers to combustible renewables and waste only.

Source: Ministry of Commerce

Total primary energy supply1211.08213.30209.22222.41224.76228.76221.88
Hydro82.6381.6075.1783.7392.0898.1392.57
Geothermal/Solar etc92.6596.1697.70101.9996.0693.3191.91
Geothermal92.6596.1697.70101.9996.0593.3091.88
Solar-------
Wind--0.0020.0040.0040.0040.030
Tide, wave and ocean-------
Renewables and waste1,235.8035.5436.3536.7036.6337.3237.40
Total biomass and animal products30.9630.4431.1931.5431.3931.5631.36
Total gases from biomass1.621.881.931.932.012.472.76
Municipal waste-------
Industrial waste3.223.233.233.233.233.293.28
Total final consumption238.6938.2940.7841.6840.7741.4841.24

Electricity generation. The major use of renewable energy resources is for electricity generation. About 74 percent of New Zealand's electricity is so generated, predominantly from hydro (68 percent), and geothermal (6 percent).

Wairakei today, with the geothermal station's network of pipelines. The springs and geysers in the area have long since been destroyed by the use of the resource for electricity generation.

Direct use. Apart from electricity, 42 PJ per year or 10 percent of consumer energy is provided by the direct use of renewables. This is dominated by wood, with 28 PJ. Direct geothermal use for heating contributed 14 PJ, and wastes and biogas provided 0.5 PJ. Annual per capita direct end use of geothermal energy is 4 GJ per person, with per capita end use of biofuels, predominantly wood, estimated at 8 GJ.

In New Zealand, major hydro schemes and geothermal are the “traditional" renewable sources. Apart from the direct use of wood, other “non-traditional" renewable sources, such as biomass, micro hydro, wind and solar, at present make a very small contribution to overall supply, although they have the potential to make a greater contribution in the future.

Landfill gas is already used to produce electricity in small scale plants in Auckland and the Hutt Valley.

Wind. Wind generation from better sites at 6 to 8 cents per kWh is the non-traditional renewable resource nearest to being commercially competitive. New Zealand's first commercial wind farm in the southern Wairarapa began generating electricity in June 1996, and several energy companies in the lower half of the North Island are considering wind farms as an alternative source of electricity generation.

Solar energy for water heating is currently priced at 13 to 16 cents per kWh, and photovoltaic electricity generation at 30 to 60 cents per kWh.

20.7 Energy intensity and efficiency

Energy intensity and efficiency trends. Although New Zealand's population rose by only 17 percent between 1975 and 1995, energy consumption increased by about 65 percent in the same period. In part, this was caused by the development and expansion of a number of energy intensive industries such as aluminium smelting and the Taranaki-based petrochemicals industries. New Zealand's energy intensity (measured as energy use per dollar of GDP) is amongst the highest in the OECD, but the steady increase from 1982 to about 1992 has reversed in the last few years.

In the residential sector the five years 1991-1996 saw total energy consumed by households increase by less than 1 percent, while the population rose by over 6 percent. There was an 8 percent decline in energy use per household, and an 11 percent decline in energy use per square metre of floor area. Over the same period, the energy used by the industrial and commercial sectors increased only 4 percent and 3 percent respectively, despite a 17 percent GDP increase.

In transport, on the other hand, the five years 1991-1996 saw a 14 percent increase in overall passenger transport energy intensity. There was a 15 percent increase in energy used by the transport sector, and a 21 percent increase in energy used for passenger transport, with total passenger travel distance increased by 6 percent. Private car petrol consumption increased 4 percent per annum over the period, while diesel use grew at 21 percent per annum.

Energy efficiency. During the development of New Zealand's climate change policy in 1993/94, further emphasis was placed on improving energy efficiency as a key response. Funding for the Energy Efficiency and Conservation Authority (EECA) was increased and a number of new programmes (such as the Energy-Wise Companies campaign) were developed. Additionally EECA administers the Energy Saver Fund which helps finance energy efficiency projects in the residential sector.

Table 20.15. GOVERNMENT EXPENDITURE ON ENERGY EFFICIENCY

Year ended 30 JuneActual expenditureBudgeted 1998
19931994199519961997

1Established October 1992.

Source: EECA

 $(million)
Energy efficiency and conservation authority (EECA)1 3.95.06.15.95.1
Energy saver fund---0.21.74.0
Crown loan scheme0.41.02.92.00.81.0

Greenhouse gas emissions

The energy sector contributes around 90 percent of New Zealand's national gross human-made carbon dioxide (CO2) emissions, with industrial processes the remainder: gross CO2 emissions from energy sources and industrial processes were about 26 million tonnes in 1996.

New Zealand's emissions of 7.6 tonnes of CO2 per capita compare favourably with those of most other developed countries.

Other greenhouse gases emitted from energy sources include nitrous oxide (N2O) and methane (CH4). Energy's share of emissions of these gases is small compared with CO2: the agriculture sector is the main contributor to both gases' emissions.

20.8 Minerals

New Zealand's mineral resources are diverse. Gold, ironsand, clays, and rock aggregates are the main commodities mined.

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. 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 (see also section 16.2: Environmental and Resource Management).

This 30m-high experimental wind mast at Waimahaka, coastal Southland, will record wind speed and direction as The Power Company investigates setting up a 24-turbine wind farm, February 1997.

Metals

Iron. New Zealand has a large resource of iron ore in the black sands of the west coast beaches between Greymouth and Westport in the South Island and from Wanganui to Muriwai in the North Island. BHP 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, a source of titanium dioxide, which is used as an opacifier and a pigment in paint, paper, plastics, cloth and rubber. Investigations into the mineral sands at Barrytown and Westport have led to mining permit applications being lodged over the Barrytown Flats.

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. The majority of total production comes from three openpit hardrock mines: Martha Hill at Waihi, Golden Cross at Waitakauri in the Coromandel area and Round Hill at Macraes Flat in Otago. 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, large floating plants fed by hydraulic excavators, to one of the largest bracket ladder dredges in the world. The trend in the industry is away from small plants to those of medium and large size which have a high throughput, can mine to greater depths (30 m) and can efficiently recover the fine gold that characterises the alluvial deposits of the South Island.

Silver. Silver almost always occurs associated with gold in various proportions. 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.

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 recovered.

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. Tin is known from Stewart Island. Bauxite is present in Northland where reserves of 20 million tonnes have been identified. Molybdenite occurs widely throughout Northwest Nelson but awaits full assessment. Cinnabar, the principal ore of mercury, was historically produced in limited quantities from sinter deposits in Northland. Platinum group metals are associated with gold along Southland beaches but are not normally recovered in alluvial gold operations.

Non-metallic minerals

Aggregates. Aggregates are the product of a variety of rocks, gravels and sands used in road works and construction. Suitable rock for aggregate production is found throughout New Zealand. Aggregate production is dominated by several large companies—Firth Industries, Winstone Aggregate and Stevensons in the North Island and Fulton Hogan in the South Island—although Fulton Hogan is increasing production in the North Island. In addition, there are many small operators who supply local needs.

Clays. Clays are found throughout New Zealand and include bentonite, halloysite and kaolinite. They are used in the manufacture of sanitary ware, ceramics, bricks, tiles, pipes and pottery, and as fillers in the manufacture of paper, paint, pharmaceutical and animal health products.

New Zealand's biggest goldmine, Golden Cross near Waihi, has become a potential environmental disaster because the 4 million tonnes of toxic mine waste are stored on unstable ground.

Bentonite. Bentonite is used as a bonding agent and for drilling specialist products. It is found in substantial quantities in Hawke's Bay and 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.

Halloysite. Halloysite has been mined in Northland for more than 30 years. The clay from the New Zealand China Clay Limited mine at Matauri Bay is recognised world wide as having an excellent colour and very high brightness and translucency when fired.

Dolomite. Dolomite rock is produced near Collingwood. It is used in agriculture and home gardening and shipped to Whangarei for use in glassmaking.

Limestone. Limestone is found throughout New Zealand and is used in cement manufacture, roading, industry and agriculture. High quality limestone from Te Kuiti and Nelson is processed for export. Limestone is also used in New Zealand as a filler in the paint, glass, rubber, plastic and paper industries. Marble, a crystallised form of limestone, is mined in Nelson. It is used as a filler and in building construction.

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.

Silica sand. Northland, North Auckland and Canterbury have deposits of silica sand which are mined for use in glass manufacture, foundry moulds and the building industry.

Sulphur. Sulphur, mainly used in production of agricultural fertiliser, has been mined from Rotokawa near Taupo.

Greenstone. Nephrite, popularly known as ‘greenstone’, is present in north Westland and northern Fiordland. 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. A Treaty of Waitangi claim over greenstone is part of the Ngai Tahu settlement.

The best known occurrences of bowenite, the serpentine variety of greenstone, are in Fiordland.

Other non-metallic minerals. The following non-metallic minerals, some of which have been mined in the past, are also found in New Zealand: diatomite (industrial filtration), barite (industrial uses include glassmaking and fillers), asbestos (building material), feldspar (glassmaking, ceramics, enamels), magnesite (used in agriculture), mica (used in electronics), phosphate and sulphur (fertiliser), wollastonite (paper, asbestos substitute, ceramics, adhesives and plastics) and zeolite (animal litter).

METAL MINING AND PROSPECTING NON-METALLIC MINERALS

Mining and quarrying industry statistics

Statistics New Zealand's Censuses of Mining and Quarrying provide 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 (AES). Both the censuses and AES cover the activities of all businesses classified in Division B of the Australian and New Zealand Standard Industrial Classification (ANZSIC). Because the design of the AES is still based on the New Zealand Standard Industrial Classification (NZSIC), the ANZSIC-based estimates in Table 20.16 are probably of lower accuracy than previously released.

Coverage. Mining and quarrying includes the extraction, dressing and purifying of minerals occurring naturally: solids like coal and ores, liquids like crude petroleum, and gases like natural gas. Included are underground and surface mines, quarries and all exploration, prospecting and drilling for minerals. All supplementary activities aimed at preparing the crude materials for marketing are coded to this ANZSIC division. Excluded is the refining or smelting of minerals or ores (other than the preliminary smelting of gold). Where a business undertakes both mining activities and manufacturing activities to further process the mined material, but does not keep separate accounts for each, it is classified to manufacturing (ANZSIC division C).

Table 20.16. INDUSTRY B: MINING AUSTRALIAN AND NEW ZEALAND STANDARD INDUSTRIAL CLASSIFICATION (ANZSIC) = DIVISION B

Statistical item1994/9511995/962Percentage change

1Data is revised, but subject to additional changes while further analysis is done on the 1995/96 data.

2Data is revised, but may change when the data for 1996/97 is analysed.

..C Data is confidential.

 $(million)$(million) 
Closing stocks84.9107.826.9
Opening stocks83.988.04.9
Sales of goods and services1,791.91,783.0-0.5
Interest, dividends, donations, royalties, patent fees, insurance claims received and bad debts recovered53.450.5-5.5
Government grants and subsidies..C..C..C
Other income including extraordinaries..C..C..C
            Total income1,908.52,012.15.4
            Total income adjusted for stocks1,909.62,031.96.4
Salaries and wages paid to employees180.9207.814.9
Redundancy and severance0.11.71,273.6
Salaries and wages to working proprietors (SW to WPs)6.17.422.3
Levies paid to Accident Compensation Corporation6.17.422.8
Employer contributions to superannuation schemes4.54.0-11.3
Fringe benefit tax2.01.8-9.2
Purchases and other operating expenses1,005.3860.3-14.4
Interest, donations, grants, royalties, patent fees paid and bad debts written off115.7118.02.0
Indirect taxes (excluding fringe benefit tax)..C..C..C
Depreciation342.9345.40.7
Other expenses including extraordinaries..C..C..C
            Total expenditure1,877.71,626.6-13.4
Net profit before extraordinaries, SW to WPs138.0240.574.3
Net profit before tax, SW to WPs..C412.7..C
Purchases of plant, machinery, vehicles and equipment107,8100.3-6.9
Purchases of land and land improvements4.02.9-26.7
Purchases of buildings and other construction187.3265.541.8
Total purchases of fixed tangible assets299.1368.823.3
Sales of fixed tangible assets113.027.2-75.9
Shareholders funds or owners equity2,206.82,254.12.1
Current liabilities..C..C..C
Other liabilities..C..C..C
Total capital and liabilities5,176.95,361.43.6
Fixed tangible assets2,795.52,819.70.9
Current assets..C..C..C
Other assets..C..C..C
Total assets5,176.95,361.43.6
Ratios1
Total income per FTE$458,498$498,192 
Net profit per FTE$33,151$59,559
Current ratio..C..C
Quick ratio..C..C
Profit margin on sales7.7%13.5%
Return on equity6.3%10.7%
Return on total assets2.7%4.5%
Liabilities structure42.6%42.0%

Contributors

20.1 Ministry of Commerce; Ministry for the Environment.

20.2-20.8 Ministry of Commerce; Statistics New Zealand.

Special articles

Ministry of Commerce.

Further information

Energy

Annual Statistics in Relation to the Electric Industry in New Zealand. Ministry of Commerce.

Contact Energy Limited. Annual Report.

Electricity Corporation of New Zealand Limited. Annual Report.

Energy Data File, Ministry of Commerce.

Energy efficiency: A guide to current and emerging technologies. Centre for Advanced Engineering, University of Canterbury, 1996.

Energy Greenhouse Gas Emissions, Ministry of Commerce.

Energy Supply and Demand Scenarios to 2020. Ministry of Commerce, 1994.

Greenhouse Gas Emissions From New Zealand Energy Sources 1990-1992. Ministry of Commerce, 1994.

New and emerging renewable energy opportunities in New Zealand. EECA and Centre for Advanced Engineering, University of Canterbury, 1996.

Renewable Energy Opportunities For New Zealand. Ministry of Commerce, 1994.

Key Statistics. Statistics New Zealand (monthly).

Report of the Ministry of Commerce (Parl paper G40).

Sustainable energy: Options for New Zealand, Dai J Redshaw and Keith R Dawber. University of Otago Press, 1996.

Wave Power Generation. Ministry of Energy, 1988.

Wind Energy Resource Survey of New Zealand. New Zealand Energy Research and Development Committee, 1987.

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 Mining. New Zealand Crown Minierals, Ministry of Commerce.

Petroleum Resources of New Zealand, Resource Information Report II. Ministry of Commerce.

Report of the Ministry of Commerce (Parl paper G.40).

Resource Information Report 16, The. Ministry of Commerce.

Coal Resources of New Zealand, The, Coal Geology Report 4. Ministry of Energy, 1988.

Makara residents march on an ECNZ public ‘clinic’ at Makara, voicing opposition to the SOE's plans to build a wind power station in the area. The widespread desire to develop renewable energy resources needs to be balanced against the environmental effects on nearby residents.

Chapter 21. Manufacturing

Controlling the end of the paper manufacturing process.

21.1 Manufacturing environment

The environment in which manufacturers operate has undergone significant change over the past decade. The government's role has been redefined from direct support of industry to one of fostering a business environment in which business is responsible for creating, capturing and capitalising on opportunities.

Reform of the business environment has been underpinned by the complete removal of import licensing in 1992 and the removal of tariffs on all imported goods for which there is no local manufacture of suitable alternatives. Tariffs were initially reviewed in 1987 with the announcement of a five-step tariff reduction programme, which halved the majority of tariffs over the period 1 July 1988 to 1 July 1992. This was followed by a review in 1992, with the announcement of a further four-step reduction programme over the period 1993 to 1996, reducing most tariffs by one-third.

In December 1994 the government announced that further tariff reductions would apply from 1 July 1997 to July 2000. Under the programme, all ad valorem tariffs will reduce to three levels of either 15 percent, 10 percent, or 5 percent by 1 July 2000. It was also announced that goods with a 5 percent tariff on 1 July 1996 would become duty free from 1 July 1998.

A review of post-2000 tariff policy is being conducted, in the context of a government decision announced in the 1997 Budget that all tariffs are to reduce to zero well before 2010.

The programme of tariff reductions has been a catalyst to an open and competitive environment. It has had a dual effect on the manufacturing sector: lowering the cost of imported materials and at the same time opening up the domestic market to international competition.

Today, the state of the manufacturing sector is more reliant on the general economic conditions. In this regard, balanced monetary and fiscal policies, the maintenance of low inflation, stability of interest and exchange rate policies, and the flexibility of labour markets provide a competitive base to manufacturing and creates certainty for present and future investment decisions. Manufacturing is also dependent on the competitiveness of support industries and the services sector. The deregulation and privatisation, therefore, of the infrastructural sectors have provided substantial flow-on benefits to the manufacturing sector through the lowering of input costs and the provision of more efficient, reliable and competitive services. This is especially notable in the deregulation of the transport, energy, communications and finance sectors which has resulted in cost savings and more efficient service to the manufacturing sector and the economy generally.

Manufacturers are also now more dependent on their ability to create and seize their own initiatives, and to distinguish themselves from their competitors. Firms are therefore reliant on being innovative, enterprising and responding swiftly to market demands. To achieve this, manufacturers are encouraging quality in their operations and management, with many seeking ISO9000 certification and implementing total quality management principles to impart the quality ethic within their organisations.

Skills training and education are also important for the continuous development of manufacturers' competitiveness. The National Qualifications Framework and the introduction of Industry Training Organisations provide greater flexibility for industries to determine their own skill and training needs, and for these needs to be met by the educational framework in a timely manner. Science and technology are also important and firms will increasingly need to continue investing in individual product development and research and development. The government recognises the importance of science and technology and is committed to increased funding for manufacturing-related science to $35.9 million per year by 2001 through the Public Good Science Fund (PGSF). The objective of the PGSF is to create new technology bases on which industry can draw.

The business environment, having changed substantially, now provides a more robust and outwardly focused economy. It also now provides manufacturers with a strong framework in which to create and capitalise on the opportunities. The sector, however, will continue to be faced by the constantly changing external environment and will need to respond.

Growth issues

In recent years manufacturing has emerged from the liberalisation of imports and the economic reforms of the 1980s, to be characterised by growing confidence in the sector's domestic and international competitiveness.

Manufacturers will continue to face competitive pressures influencing their operations, and challenges will grow as tariffs are further reduced over the period 1998-2000.

The establishment of free trade across the Tasman under the Australia New Zealand Closer Economic Relations Trade Agreement (CER) in 1983 has been a catalyst to the development of an internationally competitive and export-oriented manufacturing sector. CER has also been the catalyst to an integrated trans-Tasman economy and work is continuing to expand the agreement's scope. A Trans-Tasman Mutual Recognition Agreement, which will reduce regulatory restrictions to trade, will be implemented in 1998.

As the establishment of a combined New Zealand/Australia ‘domestic’ market continues to expand, trans-Tasman manufacturers are looking to expand into the fast-growing Asian economies. In recognition of this, the New Zealand and Australian governments have commenced dialogue with members of the ASEAN Free Trade Area (AFTA) to promote AFTA/CER trade facilitation.

The November 1994 commitment (“Bogor Declaration”) by the APEC member economies to comprehensive free trade and investment by 2010 (developed economies) and by 2020 (developing economies) means that New Zealand manufacturers will ultimately be operating in a domestic market open to international competition and enjoying liberalised access opportunities to markets covered by APEC.

Manufacturers also have the opportunity to benefit from the Uruguay Round of GATT negotiations, the outcome of which will see tariffs on a range of manufactured products progressively reduced or eliminated in New Zealand's export markets. New Zealand's reciprocal commitments in the Uruguay Round (beyond the unilateral tariff reform programme) include progressive reduction and elimination of tariffs on imports of pharmaceuticals, beer, pulp, paper and printed matter.

In addition, two major issues are taking place with respect to the determination of the country of origin of traded goods which could impact on New Zealand manufacturing. The first is a three-year work programme being undertaken by the World Customs Organisation (WCO) to address the scope for non-preferential rules of origin (ROO) to be harmonised on the basis of a change in tariff heading approach. The WCO's Technical Committee will report to the World Trade Organisation committee on ROO.

At the same time, Australia and New Zealand have established a joint working group to consider the operation of ROO in the context of CER and their relationship with the wider international scene. The objective of the bilateral exercise was to identify the extent to which a change of tariff heading approach and/or supplementary rules of origin would alter the qualification of (certain) goods for preferential entry in CER. It was seen as a notional exercise only.

In 1991 the United Nations Conference on Environment and Development (UNCED) adopted a set of 27 principles of sustainable development and a guide for their implementation known as Agenda 21. This has increased the focus of the world on who is responsible for sustainable development. Subsequent analysis has indicated that New Zealand is advanced in its implementation of the Rio objectives. Agenda 21, however, has focused attention on environmental issues and there will continue to be a proliferation of environmental regulation that firms have to comply with or be forced by consumer pressure to take account of. At the same time there are also opportunities for manufacturers in marketing New Zealand's environmental advantages.

Recently, the linkage between trade and environment has come under increasing scrutiny both from environmentalists and analysts. In recognition of this, a number of international organisations have initiated analysis on mutual support between trade and the environment. The World Trade Organisation (WTO) and the Organisation for Economic Co-operation and Development (OECD) have been involved in this work. The International Standards Organisation also has recently completed work on a series of environmental standards known as ISO 14000. This will provide a benchmark for consumers and, though voluntary, could influence manufacturers' access to markets.

A variety of issues, therefore, still have the potential to impact on manufacturing and these will need to be addressed by the industry. Manufacturing, however, is in a good position to adjust to and accommodate any changes in the future.

Table 21.1. Manufacturing Sector Performance 1994-97

March yearSales nominal1Additions to fixed assets1Growth in additions to fixed assetsContribution to GDP at 1991-92 pricesReal growth of GDP contribution

1Sourced from Economic Survey of Manufacturing.

Source: Statistics New Zealand

 $(million)$(million)percent$(million)percent
199445,080.9R1,899.8R26.0R14,384R6.9R
199549,054.2R2,358.8R24.2R15,373R6.9R
199650,614.9R2,650.6R12.4R15,698R2.1R
199751,033.32,504.8-5.515,8440.9

Moulded fibre egg cartons, from 100 percent recycled fibre.

Manufacturing groups

Below is a brief description of some of the major secondary industries in New Zealand.

Food. Since the 1990s the government has taken a number of initiatives to reform the framework for food administration, currently split between two ministries and a number of other agencies and providers, in order to improve its effectiveness and transparency. One successful outcome was the Australia New Zealand Joint Food Standards Agreement, implemented on 5 July 1996, which is helping to reduce trade barriers and widen consumer choice. A joint Australia New Zealand Food Standards Code, providing compositional and labelling standards for food in both countries, is expected to be finalised by the end of 1999.

In September 1997 Cabinet directed the establishment of an officials' project team to assess options for the integrated management of food safety. The review will consider administrative as well as structural options.

Late in 1997 New Zealand accepted an offer from the Australian Government to participate in the Australian Food Regulation Review, which aims to reduce the regulatory burden on the food sector and to improve the clarity, certainty and efficiency of food regulatory arrangements. New Zealand participation in the Australian exercise involves work on procedures and processes with direct application for the New Zealand Government's own initiatives in both business cost reduction and food policy reform.

Wine. Talks have continued with the European Union to secure New Zealand the opportunity to develop wine exports to valuable European markets by providing assured access, less rigorous conditions of market entry and reduced compliance costs. New Zealand and the EU countries would protect each other's geographic indications. Although a number of complex issues have yet to be resolved, good progress has been made in securing access for New Zealand sweet dessert-style wines.

Waste tyres being shredded in Waitakere for reuse as drainage material and as playground surfaces.

Motor vehicles. The New Zealand motor vehicle industry, comprising the assembly of cars and light commercial vehicles and the manufacture of certain components, has continued to adjust to the progressively lower 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, together with the significant increase in used vehicles imported from Japan. With the closure of VANZ, the Ford-Mazda assembly joint venture, in March 1997, there remained four motor vehicle assembly companies in New Zealand: Nissan in Manukau, Toyota in Thames, Mitsubishi in Porirua, and Honda in Nelson. Together these companies produced around 39,000 passenger and light commercial vehicles in 1996, in contrast to 73,000 in 1989. Production in 1997 was expected to be fewer than 25,000.

Attempts to reach a rationalisation arrangement with Australia which would have enabled New Zealand cars to be exported to Australia were not successful.

A review of motor vehicle tariffs was undertaken in 1997 and government decisions have been announced which involve a move to zero tariffs on 1 December 2000. It is unlikely that the remaining assemblies will continue to produce in New Zealand under this tariff regime.

Although vehicle assembly is dependent on the domestic market, component manufacturing has developed significant export markets. There are around 40 component manufacturers whose production is around $400 million per year, with exports totalling around $180 million. Exports include tyres, wiring harnesses, alloy wheels, springs and windscreens. The automotive component sector employs around 4,300 people.

Textiles and apparel. Textiles and apparel were amongst the last product groups to retain import licensing (licensing was removed from textiles by 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 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 1997, apparel non-preferential tariff rates reduced from 40 percent to 26.5 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. Decisions made regarding post-1996 tariffs up to the year 2000 will see apparel tariffs reduce progressively to 15 percent, compared to the 5 percent for most other goods under the General Tariff Programme. The alternative specific tariffs for apparel will remain in place but will reduce in line with the reduction associated with ad valorem rates.

Textiles are subject to government's General Tariff Programme. This means that there were 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 post-1996 tariff reduction programme will see these tariffs reduce to a maximum rate of 10 percent by 2000.

The removal of import licensing and a progressive reduction in tariffs have seen apparel imports from all sources increase significantly in the period 1989 to 1997, from $129 million cif in 1989 to $524 million cif in the June 1997 year. This has led to considerable rationalisation within the industry, with an accompanying reduction in employment levels. Employment in the apparel, textile and footwear industries fell from 28,451 to 25,578 between February 1995 and February 1997. However, taken together these industries remain significant employers.

During the 1989 to 1997 period, export success has been achieved in the apparel sector, with exports of apparel increasing from $49 million fob in 1989 to $144 million fob in the June 1997 year. Australia is New Zealand's main export market for apparel, but efforts have been made to diversify export destinations, particularly into Asia. Joint Action Groups (JAGs) supported by Trade NZ and industry bring exporters together to develop strategies to overcome constraints to achieve export success.

Table 21.2. MANUFACTURING: GEOGRAPHIC UNITS1 AND FTE PERSONS ENGAGED2, BY SIZE GROUP AND ANZSIC GROUP
February 1997 with 1997 full coverage, economically significant enterprises3

ANZSIC groupType of manufacturingSize group by FTE engaged
0 to 56 to 910 to 4950 to 99100 or moreTotal

1Geographic units are separate operating units engaged in mainly one kind of economic activity from a single physical location.

2FTEs (Full-time equivalents) are defined as the sum of full-time persons engaged plus half the part-time persons engaged. Numbers have been rounded and sums of component items may not match totals.

3Generally, enterprises with greater than $30,000 annual GST expenses or sales, or in a GST-exempt industry.

Source: Statistics New Zealand

C211Meat and Meat Product ManufacturingGeographic units13622882363332
Full-time equivalents3601702,2701,65020,56025,030
C212Dairy Product ManufacturingGeographic units6113321924149
Full-time equivalents1301109901,3805,7008,310
C213Fruit and Vegetable ProcessingGeographic units58525411103
Full-time equivalents2001107102702,6203,910
C214Oil and Fat ManufacturingGeographic units1636-126
Full-time equivalents3025180-150380
C215Flour Mill and Cereal Food ManufacturingGeographic units164154140
Full-time equivalents4030340290140860
C216Bakery Product ManufacturingGeographic units13943581810268
Full-time equivalents4804001,5901,4601,9505,890
C217Other Food ManufacturingGeographic units337701242229582
Full-time equivalents8905802,7701,6707,32013,220
C218Beverage and Malt ManufacturingGeographic units176193887248
Full-time equivalents4601709506101,3103,510
C219Tobacco Product ManufacturingGeographic units122-27
Full-time equivalents61530-390450
C221Textile Fibre, Yarn and Woven Fabric ManufacturingGeographic units90143297152
Full-time equivalents2001208707001,1903,080
C222Textile Product ManufacturingGeographic units427547457567
Full-time equivalents1,0204301,4903801,0204,340
C223Knitting MillsGeographic units61122972111
Full-time equivalents190956704902401,680
C224Clothing ManufacturingGeographic units7968819624101,114
Full-time equivalents1,8707404,4701,7801,80010,650
C225Footwear ManufacturingGeographic units285216262
Full-time equivalents65605204003101,340
C226Leather and Leather Product ManufacturingGeographic units132143357191
Full-time equivalents3101107904001,2802,880
C231Log Sawmilling and Timber DressingGeographic units371501111815565
Full-time equivalents8303702,6501,2902,7407,870
C232Other Wood Product ManufacturingGeographic units1,03515816315101,381
Full-time equivalents2,4401,2003,0301,0102,1409,810
C233Paper and Paper Product ManufacturingGeographic units4715381525140
Full-time equivalents1701209301,0905,9008,200
C241Printing and Services to PrintingGeographic units9671522662491,418
Full-time equivalents2,3301,1805,3701,7401,47012,100
C242PublishingGeographic units58963952118786
Full-time equivalents1,1905102,1201,7604,2609,850
C243Recorded Media Manufacturing and PublishingGeographic units111---12
Full-time equivalents156---20
C251Petroleum RefiningGeographic units1-1-24
Full-time equivalents3-45-590640
C252Petroleum and Coal Product Manufacturing necGeographic units21410--35
Full-time equivalents5035250--330
C253Basic Chemical ManufacturingGeographic units1162760158226
Full-time equivalents3002001,3301,0801,0503,970
C254Other Chemical Product ManufacturingGeographic units2325190254402
Full-time equivalents5704001,9301,8209605,670
C255Rubber Product ManufacturingGeographic units51143933110
Full-time equivalents1201007802005101,720
C256Plastic Product ManufacturingGeographic units285601392514523
Full-time equivalents7104503,1001,7502,5208,520
C261Glass and Glass Product ManufacturingGeographic units1041012-4130
Full-time equivalents21075240-7401,270
C262Ceramic ManufacturingGeographic units2197142-242
Full-time equivalents40055390160-1,010
C263Cement, Lime, Plaster and Concrete Product ManufacturingGeographic units244559263400
Full-time equivalents6604501,8404903903,820
C264Non-Metallic Mineral Product Manufacturing necGeographic units641291187
Full-time equivalents1509016065270730
C271Iron and Steel ManufacturingGeographic units76152654126
Full-time equivalents1501205003002,0203,110
C272Basic Non-Ferrous Metal ManufacturingGeographic units11131117
Full-time equivalents25695951,0301,260
C273Non-Ferrous Basic Metal Product ManufacturingGeographic units5312223494
Full-time equivalents150955202301,1602,140
C274Structural Metal Product ManufacturingGeographic units527139185137871
Full-time equivalents1,4201,0603,5108601,1908,040
C275Sheet Metal Product ManufacturingGeographic units175528793326
Full-time equivalents4704001,8606504703,850
C276Fabricated Metal Product ManufacturingGeographic units1,2181251753061,554
Full-time equivalents2,3009703,5502,0309409,800
C281Motor Vehicle and Part Product ManufacturingGeographic units423788698604
Full-time equivalents1,0306101,6906502,1206,090
C282Other Transport EquipmentGeographic units58568912014778
Full-time equivalents1,0905601,9001,4104,2809,260
C283Photographic and Scientific Equipment ManufacturingGeographic units237192113281
Full-time equivalents480140390604101,480
C284Electronic Equipment ManufacturingGeographic units2432143210319
Full-time equivalents5001608301601,9903,630
C285Electrical Equipment and Appliance ManufacturingGeographic units26743751818421
Full-time equivalents6803301,5701,2404,8608,680
C286Industrial Machinery and Equipment ManufacturingGeographic units2,30527734634112,973
Full-time equivalents4,8702,1306,8902,3101,58017,790
C291Prefabricated Building ManufacturingGeographic units651121-198
Full-time equivalents18085450-130840
C292Furniture ManufacturingGeographic units1,4451511811841,799
Full-time equivalents3,0001,1703,6601,1607109,700
C294Other ManufacturingGeographic units8827478211,037
Full-time equivalents1,8506101,5901401404,320
TotalmanufacturingGeographic units15,3432,1333,35248939421,711
Full-time equivalents 34 58034,58016,85071,79035,22092,580251,010

Christchurch companies make equipment for a power station in Greece.

The companies making up the New Zealand apparel industry are diverse in terms of size, structure, and the range of garments produced. They range from cut, make and trim operations that produce finished garments on a contract basis using fabrics supplied to them, through to vertically-integrated operations which produce their own fabric, manufacture their own garments, and sell these garments in their own stores. New Zealand manufacturers produce in all major garment categories including outerwear, underwear, hosiery, nightwear, swimwear, ties, headwear and leather apparel. A number of companies have recently moved their manufacturing operations offshore to take advantage of lower labour costs.

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 1991, with the result that carpet was afforded a more gradual tariff reduction programme and one which aligned with the Australian tariff regime for carpet. During the 1993 to July 1997 period, carpet tariff rates reduced from 32 percent to 21 percent. By 2000 carpet tariffs will have reduced to 15 percent.

Tufted and woven carpet production in the June 1997 year increased by 5 percent over the previous year to 10 million square metres. Production of wool-rich carpets (80 percent or more wool content) was 9.31 million square metres or 93 percent of total production.

Recycled plastic made into mats to replace non-renewable resources—sand and gravel—for drainage systems.

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 tariff reduction programme for the period July 1993 to 1997, adults' footwear tariff rates reduced from 45 percent to 26.5 percent. Children's footwear tariff rates reduced from 33 percent to 22.5 percent over the same period. By July 2000 footwear tariffs will have reduced in four approximately even steps to 15 percent.

Considerable rationalisation of the industry has taken place since 1986 when the first significant reductions in protection occurred. Domestic production has reduced from 7.7 million pairs in 1986-87 to 2.2 million pairs in 1996-97.

The reduction in assistance has also led to a significant increase in the volume of footwear imports. In 1997 imports supplied more than 10.7 million pairs of the New Zealand footwear market compared with 7.7 million pairs in 1993 and 6.1 million pairs in 1990 (June years). Exports have increased from 623,000 pairs in 1992 to 730,000 pairs in 1997 (June years). As with apparel, Australia is the main destination for most of New Zealand's footwear exports.

Business development

The government's business development programme is aimed at encouraging New Zealand businesses to become more innovative and internationally competitive.

The programme was refocused in 1995 following an extensive review. In February 1998 the programme was again under review, with a report on this review to be considered by Cabinet in March 1998. The results of the review, including any changes to the programme, were unknown at the time of publication. The following description refers to the business development programme as it was at the time the 1988 Yearbook went to print.

The programme aims to raise the capability of small and medium enterprises (SMEs) to grow, by targeting business capabilities/skills and business information needs.

The programme is delivered by a network of 21 Business Development Boards. The boards also provide regular advice to the Minister of Business Development on significant business developments and matters 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.

The Business Development Programme has three components:

  • an information component

  • a business capability component comprising a preliminary appraisal exercise, a business training/ educative element, a grant scheme, and best-practice education and recognition initiatives including the Business Development Quality Awards

  • a regional co-operation component.

Business information. Information is provided on:

  • the overall economic and regulatory environment, highlighting the significance of particular developments and issues for SMEs

  • sources of advice and assistance—the aim being to quickly identify the appropriate sources of help and facilitate access to these so as to enhance the opportunities to improve performance and/ or obtain appropriate assistance

  • techniques to improve business skills

  • New Zealand's trading activity and the regional economy.

Business capability improvement. The preliminary business appraisal is designed to identify individual and business capability/skills and performance levels at a given point in time. Eight business capabilities are assessed including business planning, operations management, marketing, quality, product design, and research and development management. Also assessed are the organisation and human resource management, financial and information systems, and environmental management.

The training/educative component builds on the results of the appraisal using the eight capabilities above. Business Development Boards refer clients to those who can provide the necessary training appropriate to the client's particular needs.

Under the grant scheme, funding is available for activities in the areas of innovation/research and development, strategy and implementation. The grant scheme offers assistance on a dollar-for-dollar basis to a maximum grant of $50,000 for all time for any one applicant with $20,000 per applicant being available in any one June/July year. Grants are restricted to businesses employing no more than 50 staff.

ExcelleNZ package. The ExcelleNZ initiatives are promoted by the Business Development Group of the Ministry of Commerce as part of the Business Development Programme. The ExcelleNZ package currently comprises three initiatives: Total Quality Management, World Competitive Manufacturing and World Competitive Service. These initiatives, offered in New Zealand through an agreement with the Australian Government, are delivered by consultants contracted to the Ministry of Commerce.

In order to contract with the ministry for delivery of the initiatives, consultants are first screened by an assessment panel appointed from the private sector by the Minister of Business Development. Consultants approved by the panel then undertake formal workshop training before being offered a contract by the ministry for the delivery of the relevant ExcelleNZ initiative. Training workshops are held according to demand and are open to both consultants and representatives of enterprises seeking to develop skills in quality management and strategic planning.

Business Development Quality Awards. These awards are designed to foster a commitment to quality principles by New Zealand SMEs and to recognise the application of total quality management. The awards are administered by the Business Development Group of the Ministry of Commerce and are promoted annually. The Business Development Quality Awards are based on the US Malcolm Baldrige National Quality Awards and are open to all organisations.

The Business Development Quality Awards are proving to be an attractive incentive for New Zealand businesses to apply total quality management principles and to benefit from independent assessment. In the five years since their inception the awards have attracted 670 applications from private and public sector organisations.

Manufacturing statistics

The number of manufacturing geographic units (previously known as activity units), and the number of people employed in them, are included in Table 17.26 in section 17.6: Business statistics. Manufacturing is covered by ANZSIC Division C (C211 through C294 in the table). The totals are:

 19961997
Geographic units21,67921,711
FTE engaged254,255251,010

A breakdown into size groups is given in Table 21.2, and regional employment in manufacturing is shown on the maps in this chapter.

Statistics New Zealand's Quarterly Economic Survey of Manufacturing (QMS) is designed to give a representative survey estimate of economic activity for 10 groups from the Australian and New Zealand Standard Industrial Classification (ANZSIC) within the manufacturing sector. The manufacturing sector is defined under the ANZSIC as division C which encompasses the industrial groups, shown in table 21.4. For a fuller description of these groups, refer to the ANZSIC 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.

Table 21.3 has the data presented in the form of annual series for the March years of 1993 to 1997 for total manufacturing for some of the collected variables. Table 21.4 shows the sum of the four quarters for the year ended March 1997 with total manufacturing divided into the ANZSIC groups 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 (AES) 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 also undertakes census surveys which provide data for a full inter-industry study. The latest manufacturing census was in 1994-95 while the previous was published in the Economy Wide Census 1986-87.

Table 21.3. QUARTERLY SURVEY OF MANUFACTURING: ALL-INDUSTRY TOTALS

Year ended 31 MarchSales and other incomeStocks at end of yearAdditions to fixed assets*Salaries and wagesPurchases and other operating expensesHours worked by paid employees
MaterialsFinished goods

Source: Statistics New Zealand

 $(million)(000)
199341,1022,3933,3201,5076,62331,296428,724
199445,0812,4713,5381,9007,10534,640456,384
199549,0542,6473,8142,3597,57437,004477,607
199650,6142,6643,8922,6517,99538,102493,498
199751,0332,5153,7612,5058,21438,221488,889

MANUFACTURING
Employment by industry type, 1997

REGIONAL EMPLOYMENT IN MANUFACTURING 1997 - North Island
By major types of industry, in full-time equivalents

REGIONAL EMPLOYMENT IN MANUFACTURING 1997 - South Island
By major types of industry, in full-time equivalents

Table 21.4. QUARTERLY SURVEY OF MANUFACTURING, 19971

Industry groups (ANZSIC)Sales and other incomeStocks1Additions to fixed assetsSalaries and wagesPurchases and other operating expensesHours worked by paid employees
MaterialsFinished goods

1Year ended 31 March

Source: Statistics New Zealand

 $(million)(000)
Meat and dairy products10,9861997254591,2099,35967,262
Other food, beverage and tobacco7,0303786243088825,30455,799
Textile, clothing, footwear and leather2,836225332796102,02242,577
Wood and paper products5,5852884444759484,15853,672
Printing, publishing and recorded media2,57179821726871,53438,720
Petroleum, coal, chemical and associated products6,0513584132988424,49245,704
Non-metallic minerals products1,4785192772241,00912,940
Metal products.5,5763583553071,0733,96762,251
Machinery and equipment manufacturing7,3074746022781,4685,27790,356
Other manufacturing1,61410592512711,10119,610
All manufacturing51,0332,5153,7612,5058,21438,221488,889

Contributors

21 Ministry of Commerce; Statistics New Zealand; Dr Werner Friedrich, Manufacturing Systems Team, Industrial Research Ltd.

Further information

A Season of Excellence? New Zealand Institute of Economic Research, 1996.

Business Activity 1997. Statistics New Zealand, 1998.

Census of Manufacturing Statistics. Statistics New Zealand

Islands of Excellence? New Zealand Institute of Economic Research, 1993.

Key Statistics. Statistics New Zealand (monthly).

Report of the Ministry of Commerce (Parl paper G.46)

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.

The Emerging Challenges. Manufacturing Advisory Group, 1996.

Leading the Way—A Study of Best Manufacturing Practices in Australia and New Zealand. Australian Manufacturing Council, 1994.

Chapter 22. Housing and construction

Rammed earth is the construction material for this garage-workshop in Clevedon, May 1997.

22.1 Housing

The housing sector forms a vital part of New Zealand's domestic economy. A good standard of housing is as vital as any of the other factors upon which we rely, such as health and education. Housing 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 the main area of investment for many.

The total number of occupied private and non-private dwellings in New Zealand recorded in the 1996 Census was 1,283,994. Of the 1,276,332 occupied private dwellings, 864,060 were owned with or without a mortgage. This was an increase of 1.4 percent on the 1991 Census. It represents 68 percent of all occupied private dwellings in New Zealand. The number of rented dwellings (where rent paid was specified), increased from 267,348 dwellings at the 1991 Census to 292,347 dwellings at the 1996 Census, an increase of 9.4 percent. A total of 95 percent of all private dwellings had access to a telephone.

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.

In 1996, while families accounted for 74 percent of all private households, what was once the typical family (a couple with at least one dependent child) represented only 37 percent of all families.

The average number of people per household was 2.8 people at the time of the 1996 Census, unchanged from the 1991 Census. Over half of households in New Zealand usually have one or two household members, and the number of couples without any children at home continues to rise. By 1996 more than a third of families (or 37 percent) consisted of a husband and wife only (including de facto couples). One-person households constituted 20 percent of all households: at the time of the 1996 Census there were 256,569 one-person households.

Eighty-two percent of people in the 65-plus age group reside in owner-occupied private dwellings. This compares to 68 percent of those aged less than 65 years.

Building activity has increased since 1991 due to a combination of economic and demographic factors. In demographic terms, the population and the rate of household formation is expected to grow, as is the level of migration, while households are decreasing in size. These factors will create an increasing demand for accommodation, most of which is predicted to occur in the Auckland region.

House sales. There has been a decrease in the number of house sales. The provisional number of freehold open market house sales, as notified to Valuation New Zealand, for the year to December 1997 totalled 75,743 units. This is a 2,7 percent decrease on the 77,872 units recorded for the previous year.

This was the second decrease since 1994. The 1994 figure was the highest number of sales since Valuation New Zealand started recording this series in 1973. Freehold open market sales cover approximately 80 percent of all market sales, but exclude forced sales, sales between family members with a gift element, sales of leasehold, and mixed tenure properties.

Residential prices. The average sale price for houses in the year to December 1997 was $181,372 compared to $170,379 in 1996. This represents a 6.5 percent increase on the average price recorded in 1996. The sale prices are exclusive of chattels and other considerations.

The Urban House Property Price Index compiled by Valuation New Zealand 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. The indexes for the last five half-years ended in June are shown in table 22.2.

REAL COST OF HOUSING
Housing groups of CPI
compared with CPI-All groups

Access to property market information is now available 24 hours from kiosks like this one in Newtown, Wellington.

Table 22.1. RESIDENTIAL PRICES

Average sale priceDecember year
19931994199519961997P

Source: Valuation New Zealand

 $
Sections47,92355,04959,92068,78776,410
Houses125,609141,506154,758170,379181,372
Owner-occupier flats111,806126,312138,716154,077166,679

Table 22.2 shows that prices have been increasing since 1993, and in the year to June 1997 they increased throughout most localities. Prices rose 7 percent over the year to June 1997. Whangarei recorded the largest increase at 15 percent. Hamilton, Tauranga and Rotorua Districts also recorded increases of over 10 percent. By contrast, New Plymouth District, Dunedin City and Invercargill District had decreases of over 2 percent.

Table 22.2. HOUSE PRICE INDEX1,2

Locality19931994199519961997

1Base: Half-year ended December 1989 = 1000.

2Half-year ended June.

3Auckland includes North Shore City, Waitakere City, Manukau City, Papakura District and Auckland City.

4Wellington includes Porirua City, Upper Hutt City, Wellington City, Hutt City

Source: Valuation New Zealand

Whangarei District10671158122513281533
Auckland Area39691094131616131756
Hamilton City11181223132914751599
Tauranga District11031216136114381609
Rotorua District10371139127014001556
Gisborne District13091499162017201730
Napier City12531420149315171549
Hastings District13711526153315781575
New Plymouth District13141369144114811441
Wanganui District11681180118611911193
Palmerston North City11451179121312161206
Masterton District10821118112610981077
Wellington Area4947963101810731161
Nelson City12741358141614571485
Christchurch City12201281140415071620
Timaru District12731342139014251443
Dunedin City13401384144714961460
Invercargill District12861361137213751345
        Total New Zealand10811171131014781588

22.2 Housing loans

The 1997 year has seen a slowing in the rate of growth in the housing loan market compared to the strong growth reported in both 1995 and 1996. Year-on-year growth for outstanding housing loans to the household sector fell to just under 11 percent in January 1998 from annual rates which averaged between 13 to 14 percent in 1995 and 1996. Although growth has moderated, the residential mortgage market accounted for almost half of all lending to the non-bank private sector by registered banks, finance companies and building societies at the end of 1997; in 1990 the share was less than 30 percent.

Data in table 22.3 shows a record value and number of housing loans were drawn down in 1997. However, it is likely that a significant proportion of the increase in draw downs represented refinancing activity—i.e. existing borrowers taking advantage of lower fixed mortgage interest rates that became available during the year and refinancing out of higher floating mortgage interest rate contracts; and mortgage holders renewing existing fixed interest rate loans.

MORTGAGES
Registered and discharged

A house on the move across the Orowaiti bridge in Westport.

Table 22.3. HOUSING LOAN DRAWDOWNS

QuarterLife
insurance offices
M3
institutions
Total

Source: Reserve Bank of New Zealand Monthly M3 Statistical Return & Life Office Asset Quarterly Survey

 no$(m)no$(m)no$(m)
1995—
March2862447,6892,95647,9752,979
June3062652,6163,41652,9223,442
September3743367,6724,20868,0464,241
December3402769,9464,69270,2864,718
1996—
March3222667,7404,56665,0624,592
June3753655,8174,11056,1924,146
September4334449,4043,21249,8373,256
December67978 R59,9094,27760,5884,355
1997—
March521 R61 R54,244 R4,212 R54,765 R4,273 R
June435 R35 R61,267 R4,731 R61,702 R4,766R
September285 R33 R69,825 R5,358 R70,110 R5,391R
December303 R35 R71,552 R5,615 R71,885 R5,650R

Mortgage interest rates. The accompanying table and graph sets out the annual average variable (or floating) mortgage interest rate available to new borrowers for housing purposes since 1955. Ten years on from peaking at just under 20 percent in 1987, the annual average rate for 1997 was less than 10 percent. This also marked a fall from double digit annual average interest rates recorded more recently in 1995 and 1996.

Fixed rate mortgages have grown in popularity among borrowers over variable rate mortgages in recent years. An ad hoc survey of major providers of residential lending by the Reserve Bank of New Zealand showed that more than half of all housing loan portfolios were in fixed rate and capped mortgage lending in late 1997—just two years earlier the proportion was only 20 percent. The change in borrowers' preferences can be attributed to the following factors:

  • fixed rates were lower than floating rates:

  • competitive product innovations such as ‘no start up fee’ deals provided borrowers with incentives to switch products; and

  • fixed rates allow mortgage holders more certainty of repayments.

A time series of fixed mortgage interest rates is currently not available.

Rentals. The dwelling rentals component of the Consumer Price Index rose by 4.4 percent in the year to June 1997. The government has been putting into place its market rent policy which has seen Housing New Zealand rentals increase substantially to be comparable with rentals in the private sector. Housing New Zealand and local authority rentals increased by 4.4 percent in the year to June 1997, while private rentals increased by 3.6 percent over the same period.

HOUSING COSTS
Average building cost per square metre

HOME MORTGAGE RATES
New registered mortgages

Housing assistance and government housing agencies

Accommodation supplement. The accommodation supplement was introduced on 1 July 1993 and replaces the subsidised housing assistance delivered by the Housing Corporation, and the accommodation benefit from the Department of Social Welfare. 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, mortgagors or boarders. The low income threshold depends on the person's or family's circumstances.

The accommodation supplement is a cash payment administered by Income Support, which is part of the Department of Social Welfare. The supplement is capped on a regional basis and takes account of higher living costs in Auckland, Wellington, Christchurch and Hamilton. A cash assets test is also applied which is similar to the test that was used for the accommodation benefit. An abatement regime assists in targeting the supplement to households on lower incomes. As at 30 June 1997 there were 297,134 accommodation supplement recipients.

A number of transitional measures were implemented in the period prior to the introduction of the accommodation supplement. These measures were designed to give on-going assistance to Housing New Zealand Limited tenants who lost 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 allowance. Tenure protection may also assist Housing New Zealand tenants who on 1 October 1992 were living in a unit specifically modified to accommodate a disability. As at 30 June 1997 there were 7,553 current tenure protection allowances.

Housing Corporation of New Zealand—Te Kaporeihana Whare. The Housing Corporation 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. Between 1986 and mid-1992 the corporation was responsible for administering the Residential Tenancies Act. From 1 July 1992 the corporation was restructured to leave it with only responsibility for home lending functions, the principal part of which was administration of existing loans.

The Housing Corporation continues to provide housing loans for those low income households who have difficulty obtaining loans in the private sector. It also provides home improvement loans and refinancing assistance. The Low Deposit Rural Lending programme combines education about housing matters with practical assistance to improve access to finance, and facilitate home ownership in remote rural areas on the East Cape and in the Far North.

The corporation facilitates the sale of Housing New Zealand rental houses to tenants, known as the “Home Buy" programme. The corporation provides suspensory loans which are an important part of the programme, as well as advancing a significant proportion of first mortgage finance to participants.

The accompanying table (at left) shows the amount of mortgages the Housing Corporation sold to other institutions in the 1995-96 financial year. There were no sales in the 1996-97 year.

Table 22.4 shows the amount of loan activity undertaken by the Housing Corporation in the last four financial years. As outlined above, the major form of assistance is now the accommodation supplement.

Table 22.4. HOUSING CORPORATION LOAN APPROVALS AND SALES

Programme (year ending June)NumberValue
19941995199619971994199519961997

Source: Housing Corporation

  $(million)
Home loans1,3341,3923007742.025.811.43.7
Housing New Zealand
sales—HCNZ-130240142-8.915.98.9
Suspensory-343610459-2.85.33.9
Papakainga23461670.91.81.10.4
Community lending143-71.90.5-0.2
Rural lending-5369--2.94.7 
        Total1,3711,9141,21976144.739.836.621.8

Community Housing Limited. Community Housing Limited became a wholly-owned subsidiary of Housing New Zealand on 1 July 1995. On 30 August 1996 it was sold to the Housing Corporation of New Zealand.

Community Housing Limited's mission is to provide, throughout New Zealand, suitable and well-maintained accommodation and excellent service which meets the accommodation needs of community groups and individuals with disabilities.

The company rents approximately 1,000 properties to community groups who support people with physical, intellectual and psychiatric disabilities, women's refuges, emergency accommodation and support for children. The company's Disability Modifications Project facilitates the modification of houses to suit the needs of individuals with disabilities. Community Housing provides a 24-hour 0800 number so that it is always accessible to its customers.

Housing New Zealand Limited. Housing New Zealand was established under the Housing Restructuring Act 1992. It is a Crown-owned company, in which shares are held equally by the Ministers of Housing and Finance. Housing New Zealand owns and manages around 65,000 properties nationwide, which were previously administered by the Housing Corporation of New Zealand.

Many hands make light work at Pomare. Residents volunteered their time to smarten the appearance of blocks for which Housing New Zealand was seeking tenants, in return for a donation to community projects.

Housing New Zealand's principal objectives are to provide rental housing to those on low incomes and those not having their needs adequately met in the private sector, and to provide these services in a manner which meets the Crown's social objectives, enhances shareholder value, is customer service focused and attracts private sector investment. Housing New Zealand is the single largest owner of rental housing in New Zealand, accounting for around 24 percent of all national rental accommodation.

Housing New Zealand was established as part of broader government reforms introduced at the time. It competes on an equal basis with other rental housing providers, charging market rents for its properties, for which affordability assistance (Accommodation Supplement) is delivered to eligible people through Income Support. It is required, however, to rent vacant units primarily to people on low incomes, and to give priority allocation to people whose accommodation is detrimental to their health or wellbeing, or who are in emergency accommodation. Of all new tenancies in the year to 30 June 1996, 42.5 percent were to single people with children and 17.5 percent to couples with children (40 percent and 17 percent in 1996).

Housing New Zealand has four regions and 50 Neighbourhood Units (local outlets) throughout the country. Tenancy management, day-to-day property maintenance, applications, tenant transfers, Home Buy and sales functions are carried out from the units which each control between 500 to 3,500 properties.

In 1994 Housing New Zealand implemented the government's Right-to-Buy (Home Buy) scheme, designed to provide an opportunity for home ownership to low-income New Zealanders who might otherwise not have this opportunity. Through this scheme, tenants can elect to purchase the property they rent, or an alternative vacant property better suited to their needs. All properties are sold at a price determined by an independent registered valuer who the tenant is able to select from a list of approved valuers. Tenants who purchase a property through Home Buy may not be liable for some of the costs normally incurred in a property sale transaction, such as valuation and relocation expenses. In addition, a tenant may be eligible for a suspensory loan (administered independently by Housing Corporation). Depending on the property price, this is often enough to cover the deposit required by lending institutions and will cover 10 percent of the purchase price, to a maximum of $12,500. There were 466 Home Buy sales in the year to June 1997 (636 in 1996).

The Home Lease Programme was established in 1995 to assist the Crown in meeting demand for housing. Under this scheme, private owners lease their vacant properties (in areas of high demand) to Housing New Zealand for a predetermined period of time. Property owners are guaranteed a rental income from the property, less a management fee, in return for which Housing New Zealand takes full responsibility for managing the tenants. There were 866 Home Lease properties on 30 June 1997 (754 in 1996).

Table 22.5. HOUSING NEW ZEALAND ACTIVITY

Year ended 30 June19931994199519961997

1Includes Home Lease properties.

2Community Housing Ltd was sold in August 1996.

3Income of $350 a week or less (of new tenancies who stated their income).

4Including Home Buy sales.

Source: Housing New Zealand

Standard rental units70,23470,10468,97767,03165,2811
Number of allocations (new tenancies)13,33515,56714,33316,751-
Number of new tenancies for emergency and health needs.........2,7662,637
Community houses provided2652588713924-
Percentage of allocation to low income households94933913843843
Property disposals2  5152,1502,273

GOVERNMENT HOUSING
Ratio of state/private housing starts

SIZE OF NEW DWELLINGS
Average floor area

Ministry of Housing. Established on 1 July 1992, the ministry's main functions are the provision of independent advice on housing policy to government, and efficient and effective tenancy bond and dispute resolution services. The ministry, through its Tenancy Service Division, administers the Residential Tenancies Act 1986.

Tenancy Services has 21 dispute resolution offices throughout the country providing education, advice, mediation and referrals to the Tenancy Tribunal; and a Bond Centre located in Porirua for the processing of all tenancy bonds. While Tenancy Services runs the mediation service, the Tenancy Tribunal is administered by the Department for Courts.

In the year to 30 June 1997, there were 43,862 applications made to the Tenancy Tribunal. Of these 30,207 were referred to mediation, of which 30,340 were resolved at mediation. There were 10,798 applications that were not resolved or only partially resolved in mediation and which were referred to the Tenancy Tribunal. Of the total number of applications referred to mediation, 5,932 were withdrawn. The number of applications referred to the tribunal for a hearing, either directly or after an attempted mediation totalled 28,426. A total of 21,648 applications were resolved at the tribunal while the others were either withdrawn, adjourned or referred back to mediation.

22.3 Building and construction industry

Building and construction is an important part of the New Zealand economy. For the year ended 31 March 1997 there was $10.0 billion of gross fixed capital investment on building and other construction. For the previous year the equivalent figure was $9.3 billion. The number of people employed in the industry at the end of March 1996 was 111,400, 6.7 percent of those employed. In addition, tens of thousands are employed indirectly, supporting the industry in manufacturing, material supplies and transport. Over the early to mid 1990s the share of New Zealand's total production (Gross Domestic Product) contributed by the construction industry has risen steadily.

The share was 4.3 percent in the year ended 30 September 1992, and has risen to 4.9 percent in the year ended 30 September 1997. This increasing importance has existed during a period of high GDP growth of the mid 90s, making the construction industry's proportional increase even more noteworthy.

During this period of high growth, related output has increased as well. Production of ready mixed cement and sawn timber has shown steady growth through the 1990s, in line with the increased requirements of the construction industry for building materials. The volume of ready mixed cement has increased by 48 percent from 1993 to 1997, while the volume of sawn timber produced has increased by 13 percent over this period.

The most common construction systems used in New Zealand are light timber framing for housing, reinforced concrete (precast and in situ) for multi-storey 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.

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.

Construction law

Building controls are managed by the Building Industry Authority, a Crown entity established under the Building Act 1991 and responsible for writing the New Zealand Building Code. The building code specifies the essential requirements for building performance to ensure the health and safety of building users and protection of other people's property. The Building Industry Authority also writes guidance documents (known as The New Zealand Building Code Handbook and Approved Documents) which provide methods of satisfying the code. The solutions published in these documents are not mandatory, and the building industry is encouraged to develop new materials and systems as alternatives to traditional methods. Important requirements of the building code are durability, ease of access for all users and energy efficiency in buildings. Day-to-day administration of building controls is the responsibility of the territorial authorities who must confirm that building projects satisfy the code provisions.

Building consents are required for new buildings and for alterations to existing buildings. Any such work must also comply with district plans of territorial authorities prepared under the Resource Management Act 1991. For completed buildings the requirement for regular maintenance of essential systems, such as fire alarms, lifts and air conditioning, is covered by the Building Act's compliance schedule and annual building warrant of fitness provisions.

The building certifier is a new building professional created by the Building Act. By the end of the 1997 calendar year 12 building certifiers had been approved by the Building Industry Authority, situated from Auckland to Dunedin. Some are limited to approving work covered by the Approved Documents for housing, others are specialised in disciplines such as automatic sprinkler systems and lifts. The presence of building certifiers provides competition for territorial authorities and is expected to bring efficiencies in the authorities' administration of the Building Act.

The worldwide move to performance-based building codes as a means of overcoming trade barriers sees New Zealand as a leader among countries successfully implementing such reforms. The New Zealand Building Code was used extensively as the model for the revised Building Code of Australia.

An international food court under construction at the Henderson shopping centre, January 1997.

All clauses of the building code and accompanying support documents are reviewed every five years. The five-yearly review cycle ensures that the code remains current.

Safe and healthy buildings are one of the authority's goals, and work on the dangerous buildings provisions of the Building Act are a high priority, in particular earthquake-prone buildings. Other factors, like fire and insanitary conditions, also make a building dangerous and these provisions in the act are also being examined by the authority.

Adequate provision for people with disabilities is an important consideration in all new building work. Such provision has existed under the Disabled Persons and Community Welfare Act since 1975, but it is only since the building code appeared that designers and building owners have fully appreciated them, and also that the provisions are taken seriously by territorial authorities when issuing consents. The code's objective of ensuring that people with disabilities are able to enter and carry out normal activities and functions within buildings is now being accepted as a right of those disadvantaged.

The Building Industry Authority is funded by the building consent levy at the rate (since December 1995) of $0.65 for every $1,000 of building work, applicable to projects exceeding $20,000. This gave an income of about $3.3 million for the year to 30 June 1997. The authority's approved expenditure for that year was just under $2.8 million, of which approximately 40 percent was spent on education and information activities.

Building authorisations

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. Under the new building regulations effective from 1 January 1993, building authorisations are applied for under the building consents system administered by territorial authorities. Prior to this date, applications were made under the building permits system. The building consents system, however, has wider coverage than the building permits system. The additional coverage includes some government building (particularly work on education buildings) and on-site drainage and reticulation work.

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 due to changes in wage rates and material prices.

The values of building authorisations for five years to March 1997 are described by types of building in table 22.6. Consents cover alterations and additions as well as new buildings.

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 1996-97 includes 22,418 permits or authorisations to a total value of $2,927.4 million for new dwellings. This includes authorisations for 124 new government dwellings (value $13.0 million).

Some Categories of buildings used in those and other building consent tables require additional explanation. ‘Hostels and boarding houses’, 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.

BUILDING CONSENTS*
Residential consents as a percentage of all building consents, by value

CONSTRUCTION SHARE OF GDP
Value of construction as percentage of total GDP

Table 22.6. VALUE OF BUILDING CONSENTS ISSUED

Type of buildingYear ended 31 March
19931994199519961997

Source: Statistics New Zealand

 $(million)
Residential—
New dwellings1.851.32,172.12.864.12,741.92,927.37
Alterations/additions and outbuildings433.5507.6576.7619.0635.19
        Total residential buildings2,284.82,679.73,440.83,360.93,562.56
Non-residential (includes additions and alterations)
Hostels, boardinghouses17.331.011.234.516.20
Hotels, motels, etc30.837.9207.8194.0126.85
Hospitals and nursing homes71.580.764.494.3165.94
Education buildings94.5190.5231.5261.2315.86
Social, cultural, religious and recreational buildings117.9223.9250.3246.0243.58
Shops, restaurants, taverns173.0207.5314.1270.6291.26
Office and administrative280.8196.4253.1295.6381.09
Storage buildings57.761.1105.5150.6226.26
Factories and industrial145.8252.7316.3334.5422.28
Farm buildings69.190.1108.1100.798.61
Miscellaneous and multi-purpose buildings30.278.4137.6215.041.67
        Total non-residential buildings1,088.51,450.11,999.92,197.02,329.59
        Total all buildings3,373.24,129.75,440.75,558.05,892.15

NEW DWELLINGS
Number of building consents* issued

Table 22.7. LOCATION AND VALUE OF BUILDING AUTHORISATIONS 19971

 NumberRes. Value ($)Non res val ($)Tot bld val ($)
19961997199619971996199719961997

1Year ended 31 March.

Source: Statistics New Zealand

Whangarei15827518.229.827.229.648.964.3
Auckland (main) urban area6,9857,4911,047.31,090.5800.8866.42,041.82,160.8
Northern Auckland zone2,1401,869339.6324.4120.6160.7512.1542.7
Western Auckland zone1,2201,287157.8167.054.363.4236.5258.1
Central Auckland zone1,7422,154288.6306.2420.0390.4797.1785.0
Southern Auckland zone1,8832,181261.3292.8205.8251.9496.1575.0
Hamilton7681,00798.4132.780.873.8194.9224.8
Tauranga1,2701,458151.3178.740.644.8207.1235.2
Rotorua21620320.723.725.619.451.949.3
Gisborne1027311.78.312.48.527.719.6
Napier27421635.828.217.930.159.563.5
Hastings14322218.820.639.355.165.382.2
New Plymouth16313619.316.422.014.349.638.0
Wanganui80719.09.018.513.531.726.2
Palmerston North31617641.024.139.848.390.580.6
Wellington (main) urban area8941,052118.8128.5146.1172.6320.6363.2
Upper Hutt Valley zone51778.97.313.26.124.916.2
Lower Hutt Valley zone12313319.218.527.129.456.560.6
Porirua Basin zone13010819.717.510.224.634.046.2
Wellington City zone59073470.985.395.5112.4205.2240.2
Nelson37239942.545.032.952.482.5104.0
Christchurch2,3382,148268.6264.2247.5253.6563.1561.0
Timaru80699.57.915.418.427.428.5
Dunedin31425434.728.741.185.390.2126.2
Invercargill1157215.59.035.625.456.138.5
        Total22,46723,8653,127.63,264.42,590.52,850.66,371.56,789.3

Table 22.8. TYPES OF BUILDING AUTHORISATIONS 19971,2

Type of buildingType of applicantTotal
Producer enterprisesFinancial intermediariesGeneral governmentPrivate non-profit organisationsHouseholds and foreign

1Year ended 31 March.

2Includes alterations and additions.

Source: Statistics New Zealand

 $(000) 
Total dwellings691,6664204,24225,0242,841,2083,562,560
Hostels, homes, boarding houses5,445-7,3243,436-16,205
Hotels, motels, etc.123,366-8232,487168126,845
Hospitals, nursing homes46,16118580,26239,327-165,935
Education buildings13,118-286,70715,99535315,856
Social, cultural, etc.113,7231,00068,03060,832-243,584
Shops, taverns and restaurants268,67412,2355,4024,736217291,265
Offices and administration..319,42717,79537,3046,55112381,089
Warehouses223,8181.0111,107320-226,256
Factories, powerhouses, etc..371,0622,63839,2359,32715422,277
Farm buildings97,90750475958098,607
Miscellaneous buildings32,3176408,1125911041,670
            All buildings2,306,68435,974539,025168,7222,841,7455,892,150
Totals for 19961.584,28028,464462,663138,4373,344,1155,557,959

Table 22.9. BUILDING AUTHORISATIONS

Year ended 31 MarchNew dwellingsResidential buildings (including outbuildings)1All buildings1
UnitsValueFloor area

1Includes additions and alterations

Source: Statistics New Zealand

 sq m 
 no$(million)(000)$(million)
199217,6531,704.12,465.62,117.92.943.8
199317,9051,851.32,746.72,284.83,373.3
199419,3612,172.13,101.72.679.74,129.7
199523,6812,864.13,937.53,440.85,440.7
199621,2562,741.93,646.93,360.95,558.0
199722,4182,927.43,820.43,562.65,892.1

New Brighton's new pier has brought the suburb large numbers of visitors and benefited the local economy. The $4 million construction was financed half by the Christchurch City Council and half from local fundraising.

A Kaipara house using alternative energy sources is independent of the national grid.

Table 22.10. WORK PUT IN PLACE

Year ended 31 MarchDwellings
New dwellingsAlterations additions and outbuildingsSubtotal
GovernmentOther
 $(million) 
199257.91,650.5462.42,170.8
199323.61,808.1486.02,317.1
19941.42,229.2561.02,791.7
19951.92,892.0614.43,508.3
19966.83,005.0658.93,670.7
199716.43,393.4687.44,097.2
Year ended 31 MarchNon-residential buildings (including alterations and additions)Total
Hotels, boarding houses and nursing homesHospitals and industrial buildingsFactoriesCommercial buildings1Education buildingsMiscellaneous2 and multipurpose1Subtotal

1Includes shops, restaurants, taverns, offices, administrative buildings and storage buildings.

2Includes social, cultural, religious, recreational and farm buildings.

3Includes shop/offices, office/warehouses, and shop/office/warehouses.

Source: Statistics New Zealand

 $(million) 
199232.391.2171.8565.4128.3214.31,203.43,374.2
199339.6115.1167.0480.3106.8244.11,152.93.470.6
199476.3113.2288.9600.2189.8330.51,598.84,390.5
1995141.177.9358.1809.9212.0513.82,112.75.621.0
1996275.196.5400.9958.2315.9715.52,762.16,432.9
1997244.4183.9473.0753.6378.2837.72,870.86,968.0

A Green Home Assessor checking out a house.

Work put in place. Statistics New Zealand conducts quarterly surveys of building work put in place (see table 22.10). 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.

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 for nonresidential buildings, four other construction and four land improvement price indexes have been produced since the December 1989 quarter.

For the quarter ended in March 1997 the index recorded increases of 1.4 percent for residential buildings, 0.5 percent for non-residential buildings, 1.7 percent for land improvements, and decreased by 0.5 percent for other construction, from the March 1996 quarter.

Table 22.11. BUILDING AND CONSTRUCTION: STATISTICAL SUMMARY ANZSIC Division E

Statistical item1994-951995-96Percentage change

Source: Statistics New Zealand

 $(m)$(m) 
Stocks
    Closing660.2799.821.1
    Opening550.3667.121.2
Income—
    Sales of goods and services10,156.811,417.212.4
    Interest etc received46.256.021.2
    Government grants and subsidies4.22.7-35.7
    All other income52.324.9-52.3
Total sales and other income10,259.411,500.712.1
    Adjusted for change in stock values10,369.411,633.412.2
Operating expenditure—
    Salaries and wages paid to employees1,508.41,629.28.0
    Redundancy and severance4.74.5-4.3
    Salaries and wages to working proprietors (SW to WPs)476.0523.19.9
    Levies paid to ACC85.6103.721.2
    Employer contributions to superannuation schemes9.813.739.7
    Fringe benefit tax9.59.4-1.0
    Purchases and other operating expenses7,052.57,828.011.0
    Interest, bad debts, etc145.5174.620.0
    Indirect taxes (excluding FBT)43.544.83.1
    Depreciation230.5269.516.9
    All other operating expenditure25.615.2-40.6
Total operating expenditure9,586.810,611.310.7
Net profit before tax, after deducting extraordinaries and SW to WPs1,231.91.535.524.6
Net profit before tax. after deducting SW to WPs1,258.61,545.222.8
Fixed tangible assets—
    Purchases of plant, machinery, etc412.2481.416.8
    Purchases of land and land improvements16.038.2139.3
    Purchases of buildings and other construction37.668.281.3
    Total purchases of fixed tangible assets465.8587.826.2
    Sales of fixed tangible assets133.4139.94.9
Balance Sheet:
    Shareholders funds, etc1,914.41.962.92.5
    Current liabilities2,413.32,720.212.7
    Other liabilities722.41,051.845.6
    Total capital and liabilities5,050.15,734.913.6
Fixed tangible assets1,765.01,983.912.4
Current assets2,833.73,278.215.7
Other assets450.9472.04.7
Total assets5,050.15,734.913.6
    Total income per FTE$121,459$125,018 
    Net profit per FTE$14,584$16,692 
Ratios:
    Current ratio117.4%120.5% 
    Quick ratio90.1%91.1%
    Profit margin on sales12.1%13.4%
    Return on equity64.3%78.2%
    Return on total assets24.4%26.8%
    Liabilities structure37.9%34.2%

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 business classed in Division E of the Australian and New Zealand Standard Industrial Classification. A summary of results is given in table 22.11.

A Waitakere City Council bridge whose form matches its setting. Artist Virginia King, design by City Design.

Contributors

  • 22.1 Statistics New Zealand; Valuation New Zealand; Land Information New Zealand.

  • 22.2 Reserve Bank of New Zealand; Statistics New Zealand; Department of Social Welfare; Housing Corporation; Housing New Zealand; Community Housing Ltd; Ministry of Housing.

  • 22.3 Statistics New Zealand; Building Industry Authority.

Special articles

The Building Research Association of New Zealand.

Further information

Housing

Annual Report of the Building Research Association of New Zealand.

Report of the Housing Corporation (Parl paper B.13).

Annual Report of Housing New Zealand Limited.

Report of the Ministry of Housing (Parl paper B.12).

Report of the Valuation Department (Parl paper G.26).

Residential Sales Summary. Valuation New Zealand (quarterly).

Urban Property Sales Statistics. Valuation New Zealand (six-monthly).

Building and construction industry

Annual Report of the Building Industry Authority.

BUILD. Building Research Association of New Zealand (bi-monthly).

Building and Construction and Transport, Storage and Communication 1987. Statistics New Zealand (Economy Wide Census).

Building Industry Authority News. Building Industry Authority (monthly).

Building Statistics. Statistics New Zealand (annual).

Enterprise Survey. Statistics New Zealand (annual).

New Zealand Building Code Handbook and Approved Documents. Building Industry Authority (available from Standards New Zealand and Brooker's).

Chapter 23. Transport

Motat's dedicated volunteers survey progress on renovation of the historic Sunderland flying boat.

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.

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. In 1994 NZ Rail was sold to the private sector and in 1995 was renamed Tranz Rail Ltd.

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. The Land Transport Safety Authority, responsible for road and rail safety, was established in 1993 from the former land transport division of the Ministry of Transport. In 1996 Tranzfund New Zealand was formed and is responsible for funding roading and alternatives to roading, leaving Transit New Zealand as the state highway operator.

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-seven foreign airlines, including three cargo airlines, operate to New Zealand and six serve New Zealand on a code-share basis only. In addition, there are two New Zealand international scheduled airlines: Air New Zealand, and Freedom Air International, which commenced services in 1995. 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 (now the Civil Aviation Authority), 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, Christchurch and Wellington international airports have been corporatised as have several regional airports. Other changes have occurred within the aviation infrastructure, such as the creation of the state-owned enterprise, the Airways Corporation of New Zealand Limited, the standalone Civil Aviation Authority, and the independent agency, the Transport Accident Investigation Commission.

Comprehensive reforms of New Zealand's waterfront since 1988 have resulted in cost savings and efficiency improvements. Thirteen port companies were established in 1988 to take over the ownership and operation of commercial port facilities, and in 1989 waterfront labour was reformed. This reform saw the end of a government-managed labour pool system, and the introduction on the waterfront of direct employment and enterprise bargaining. In 1995, the government moved within new shipping law to allow foreign operators to enter New Zealand's coastal shipping trade and some non-Australasian-crewed ships began to enter the trans-Tasman trade.

This giant plastic motorcycle sculpture is on display in a paddock near Kerikeri.

The Annual Enterprise Survey covers the activities of all businesses classified in Division I: Transport and Storage of the Australian and New Zealand Standard Industrial Classification. Some of the survey's results are shown in table 23.1.

Table 23.1. TRANSPORT AND STORAGE: STATISTICAL SUMMARY

Statistical itemRoad transport1 1995-96Water transport2 1995-96Other transport3 1995-96

1ANZSIC Subdivision 161.

2ANZSIC Subdivision 163.

3ANZSIC Subdivision 165-167 excluding class 16501.

4..c = suppressed for reasons of respondent confidentiality.

Source: Statistics New Zealand

 $(million)
Closing stocks20.23.720.5
Opening stocks14.53.314.8
Sales of goods and services3,182.9440.82,454.6
Interest, dividends, donations, royalties, patent fees, insurance claims received and bad debts recovered17.62.337.2
Government grants and subsidies58.9..c42.9
Other income including extraordinaries39.0..c51.2
Total income3,298.4444.72,545.9
            Total income adjusted for stocks3,304.0445.02,551.6
Salaries and wages paid to employees660.798.3655.2
Redundancy and severance..c..c3.1
Salaries and wages to working proprietors (SW to WPs)112.1..c61.1
Levies paid to Accident Compensation Corporation31.23.719.3
Employer contributions to superannuation schemes2.45.318.9
Fringe Benefit Tax3.20.98.1
Purchases and other operating expenses1,621.9267.81.095.2
Interest, donations, grants, royalties and patent fees paid and bad debts written off104.87.778.7
Indirect taxes (excluding Fringe Benefit Tax)243.5..c13.0
Depreciation246.420.3145.6
Other expenses including extraordinaries6.7..c19.0
            Total expenditure3,032.7419.92,114.1
            Net profit before tax, extraordinaries, SW to WPs..351.138.3466.4
            Net profit before tax, SW to WPs383.4..c498.7
Purchases of plant, machinery, vehicles and equipment397.427.5177.5
Purchases of land, and land improvements5.40.932.2
Purchases of buildings and other construction8.61.5211.5
Total purchases of fixed tangible assets411.430.0421.2
Sales of fixed tangible assets117.52.182.6
Shareholders funds or owners equity777.6136.41,906.6
Current liabilities776.298.11,073.4
Other liabilities808.753.2703.2
Total capital and liabilities2.362.5287.73.683.1
Fixed tangible assets1,501.9167.02.403.8
Current assets663.2105.51,112.0
Other assets197.415.1167.4
Total assets2,362.5287.73,683.1
Ratios ($)
            Total income per FTE107,469233,552146,269
            Net profit per FTE11,43920,10526,798
Ratios (%)
    Current ratio85.4107.6103.6
    Quick ratio82.8103.9101.7
    Profit margin on sales11.08.719.0
    Return on equity45.128.124.5
    Return on total assets14.913.312.7
    Liabilities structure32.947.451.8

23.1 Shipping

Almost 85 percent of New Zealand exports by value, and over 99 percent by volume, are carried by sea. In the case of imports, around 75 percent by value are carried by sea and the volume is also over 99 percent. 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 are 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 to international competition and foreign-crewed ships. The trade has historically been reserved for Australian and New Zealand-crewed ships through a maritime union accord. In recent years there has been an increase in both Australasian and foreign participation in the trade.

The Maritime Transport Act 1994 introduced new law covering ship safety, maritime liability and marine environmental protection. A Maritime Safety Authority was established in August 1993. The authority is primarily funded from user charges and is responsible for maritime safety and marine pollution prevention and response functions.

The most recent employment statistics available on the transport industry, the Statistics New Zealand Annual Business Directory update of February 1997, recorded 610 full-time equivalent persons engaged in international sea transport, 1,160 in coastal water transport, and 280 in inland water transport.

Overseas lines

Conference lines handle much of New Zealand's overseas shipping. Conferences are associations between shipping companies to provide a joint service on several trade routes. Increased competition in New Zealand's international trades over recent years has seen increasing participation by independent carriers. An indication of New Zealand's established trades is set out below:

United Kingdom/Europe. The New Zealand European Shipping Association plays a major role in servicing Mediterranean and Northern European ports. P & O Nedlloyd Ltd has the largest trade, with the balance held by a number of continental carriers.

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 a number of other lines including the China Ocean Shipping Company (People's Republic of China), Tasman Asia (New Zealand), The Far Eastern Shipping Company (Soviet Union) and the New Zealand Orient Line (Singapore). Malaysia International Shipping Corporation and Pacific International Lines (Singapore) in 1996 introduced a joint service between New Zealand and South-East Asia.

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.

Trans-Tasman. The serving of the Tasman trade has changed considerably recently with a number of foreign cross traders joining existing Australasian tonnage in the trade. Union Shipping New Zealand now operates in conjunction with Australia/New Zealand while the Tasman Express Line operates with South Pacific Shipping and P & O. BHP Transport (Australia) also operates ships on the Tasman.

South Pacific. The regionally-owned Pacific Forum Line operates four vessels linking New Zealand, Australia, Fiji, Papua New Guinea, the Cook Islands, Tonga, and American and Western Samoa. Sofrana Unilines, Cook Islands National Line, W Islands Lines, NZ Pacific Container Line, Pacific Direct Line, and Blue Star Line also operate ships in New Zealand's South Pacific trade and Southern Ocean Container Line and Blue Star Line provide services as part of their North America trades. These operators cumulatively provide New Zealand with services to the Cook Islands, Fiji, Kiribati (transhipment), New Caledonia, Niue (on inducement), Papua New Guinea, the Solomon Islands, Tahiti, Tonga, Tuvalu (transhipment), 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 Tranz 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 operates four roll-on roll-off vessels on services linking Wellington, Auckland, Nelson, Lyttelton and Timaru. Strait Shipping operates a livestock carrier and a roll-on roll-off vessel between Wellington, Picton and Nelson. Auckland-based Sea-Tow operates three tugs on tramp services around the New Zealand coast.

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.

Coastal cargo is also carried by international ships transiting the New Zealand coast in the course of their international voyages.

Since late 1994, New Zealand Rail (Tranz Rail) has operated a high-speed car and passenger ferry between Wellington and Picton over the summer season. Two other high-speed ferry services across Cook Strait failed in their first season of operation, one in early 1995, the other in April 1996.

The inter-island ferries travel through the beauty of the Marlborough Sounds.

MARINE ACCIDENTS

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 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 Coastal Tankers Ltd distribute petroleum products from the Marsden Point oil refinery. Liquigas operates the LPG carrier Tarihiko.

Services to shipping

Ports. 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 six are partly privatised and further private ownership is encouraged by the Government.

Registration of ships. As at 31 December 1997 there were 3,135 ships on the New Zealand Register of Ships, with a total gross tonnage of 355,886 and net tonnage of 169,066. This compared with 3,039 ships with a gross tonnage of 344,478 and net tonnage of 166,997 in December 1996. Under the provisions of the Ship Registration Act 1992, ships not exceeding 24 metres register length are not required to have tonnages registered.

New registrations during 1997 included the barge, Ocean Bulk I and the deep sea fishing vessels, Rehua, Amaltal Atlantis, Ocean Dawn and Independent I.

Vessels removed from the New Zealand Register during 1997 included the cargo vessels, Tasman Enterprise and Union Auckland and the fishing vessel Dorada.

Table 23.2. REGISTERED VESSELS INVOLVED IN DOMESTIC AND OVERSEAS TRADE1

 Number of vesselsNet registered tonnage2Number of crew3

1Ships in overseas trade mainly engaged in trans-Tasman and Pacific Islands trading movements.

2The shipping register is not metricated and I net register ton equals 100 cubic feet (or 2.83 cubic metres) of cargo capacity.

3Crew figures are not necessarily up to date.

Source: Maritime Safety Authority

Domestic
19931231,159313
1994......
19951220,221269
19961226,048302
19971226,048302
Overseas
1993857,582147
1994........
1995969,354170
1996859,006153
1997754,711115

Seafarer qualifications. The Maritime Safety Authority is the licensing body for merchant navy personnel. Such seafarers, after qualifying sea service followed by further training and examination at approved teaching institutions, are issued with certificates of competency as master, mate, engineer or integrated rating. There are different classes of certificates of competency for foreign-going, coastal or restricted-limit ships. The foreign-going certificates, and endorsements for service on special types of ships, meet in full the requirements of the relevant United Nations' conventions and are accepted (subject to appropriate checks) for use in other countries.

The authority issues separate certificates of competency to skippers, mates, engineers and deckhands of deep-sea. coastal and inshore fishing boats. These also require sea service followed by training and examination at approved teaching institutions.

The Royal New Zealand Coastguard Federation looks after pleasure-boat mariners. The federation holds courses and conducts voluntary examinations for certificates of competency as day skipper, boat master, coastal skipper and ocean yachtmaster.

Ship safety. The New Zealand Government is a signatory to many International Maritime Organisation (IMO) and International Labour Organisation (ILO) conventions which specify safety standards for ships and health and safety standards for their crews. The Maritime Safety Authority is responsible for administering these conventions which are reflected in the Maritime Transport Act 1994. The authority inspects foreign and New Zealand ships to ensure they meet the required standards.

Marine safety services. There are 139 navigational aids owned and maintained by the Maritime Safety Authority on headlands, capes, reefs and shoals around 5,400 nautical miles (9,000 kilometres) of coastline. These aids consisted of 95 automatic lights, 39 day beacons and 5 navigational buoys. There are no staffed lighthouses in New Zealand.

The Maritime Safety Authority provides a distress and safety radio communication system for mariners. Radio frequencies dedicated to distress messages are monitored around the clock in the Very High, Medium and High Frequency bands. This system also broadcasts weather reports, warnings of maritime hazards and assists during search and rescue operations and medical emergencies at sea.

The cost of providing the navigation aids and distress and safety radio systems is met from a marine safety charge which is levied on all commercial ships (New Zealand and foreign) of eight metres and over in length. The Government also contributes, on behalf of the recreational boating sector, a share of these costs.

Wreeks. Receivers of Wreck may be appointed by the Director of Maritime Safety. They 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.

Maritime accidents. The Maritime Safety Authority investigates maritime accidents and incidents to identify their causes, analyse trends and make recommendations as to how similar occurrences can be avoided. Investigations also assess whether there has been any breach of the law.

Marine pollution. The Maritime Safety Authority is required to promote a clean marine environment and is responsible for developing and implementing New Zealand's marine oil spill response strategy. It deals with the prevention of all types of ship-sourced marine pollution and ensures that New Zealand is prepared for, and can respond to, marine oil spills.

A tiered planning and response system for dealing with oil spills has been established at the local, regional, national, and international levels. The National Oil Spill Service Centre at Te Atatu, Auckland, houses equipment which can be mobilised immediately in the event of an oil spill. This national stockpile complements equipment the authority is locating strategically in the regions.

23.2 Civil aviation

The most recent employment statistics available on the transport industry, the Statistics New Zealand Annual Business Directory update of February 1997, recorded 3,630 in scheduled international air transport, 4,780 in scheduled domestic air transport, and 550 others, giving a total of 8,970 engaged in civil aviation.

Aviation is a fundamental part of life in New Zealand. New Zealanders use aircraft like no other nation. The main airlines carried some 4,953,209 passengers on domestic services and more than 2.5 million arrived on international air carriers in the 1996-97 year. The number of aircraft on the register rose from 3,329 to 3,419 over the year, compared with 2,904 just five years ago. This gives New Zealand one of the highest ratios of aircraft to population in the world. There are more than 10,000 licensed pilots, engineers and air traffic controllers.

Since 1992 air transport flights have increased by about 9 percent a year. The number of large aircraft (above 5,700kg) has risen from 71 to 134; commuter aircraft (over 10 passengers) from 46 to 108; IFR scheduled air transport from 10 firms with 133 aircraft to 21 firms with about 210 passenger aircraft and 3 with about 10 cargo aircraft; and aerial work operators have risen from 188 to more than 270.

Control of Civil Aviation

The Civil Aviation Authority (CAA), which began in August 1992 and operates under the Civil Aviation Act 1990, is the aviation safety regulator with the prime function of promoting civil aviation safety at reasonable cost.

Specific functions include establishing safety and security standards relating to entry into and exit from the civil aviation system, monitoring adherence to safety and security standards within the civil aviation system, ensuring the regular review of the civil aviation system to promote the improvement and development of its safety and security, investigating and reviewing civil aviation accidents and incidents, providing civil aviation safety and security policy advice to the Minister of Transport, promoting safety and security in the civil aviation system through information, advice and education programmes, maintaining the New Zealand Register of Aircraft, the Civil Aviation Registry and other records and documents relating to activities within the civil aviation system, and providing search and rescue services.

The CAA also acts on behalf of the Crown in respect of the International Civil Aviation Organisation (ICAO). The CAA is also designated the Aviation Security Authority, Air Traffic Services Authority, Personnel Licensing Authority and the Meteorological Authority and meets New Zealand's ICAO obligations for aeronautical information. It also undertakes those ICAO responsibilities of a technical or safety regulatory nature associated with the ICAO Air Navigation Bureau and Technical Assistance Bureau.

The CAA is a Crown-owned entity headed by a five-member authority appointed by the Governor-General on the recommendation of the Minister of Transport. The authority reports directly to the minister. The Director of Civil Aviation (chief executive of the CAA) has a wide range of technical responsibilities, conferred on the position both directly under legislation and through delegation from the authority and the minister, and is independently responsible for exercising control over entry and exit from the civil aviation system through the granting (and withdrawal) of aviation documents under civil aviation legislation. There is a staff of about 120.

AIR ACCIDENTS
Notifiable aircraft accidents

The CAA budget in 1996-97 was $17.75 million derived from user charges, licence fees and a levy on passengers. The Domestic Passenger Levy of $2.15 per trip raises $9.56 million, and the levy of $1.00 per Departing International Passenger raises $2.58 million.

In the past year the CAA carried out the largest ever review of New Zealand's airspace involving extensive industry consultation. The intention was to provide maximum protection for main route airliner traffic while providing uncontrolled airspace for other users. The resulting changes have been well received by the industry.

The five-year rewriting of all civil aviation rules was completed this year with the outstanding 20 new rules and 10 amendments coming into force on 1 April 1997. Implementation will continue for the next two to three years.

Airways Corporation of New Zealand Limited. Airways provides air navigation services for the aviation industry within New Zealand's domestic and oceanic airspace. Established in 1987 as a state-owned enterprise, Airways was the first fully-commercialised air navigation services organisation in the world. It is now fully ISO 9001 certified.

Table 23.3. FOREIGN AIRLINE OPERATIONS—DATE OF COMMENCEMENT AND ROUTES SERVED

DateAirlineRoutes now served

1British Airways and American Airlines (on Qantas), Ansett Australia, Mandarin Airlines, Lan Chile and Japan Airlines (on Air New Zealand) and Lufthansa (on Air New Zealand for cargo and Thai Airlines for passengers) serve New Zealand on a code-share basis only. United Airlines, Singapore Airlines and Royal Tongan Airlines operate their own aircraft to New Zealand and also code-share on Air New Zealand.

2Canadian 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.

3American Airlines originally commenced services to New Zealand in 1970 but ceased operating in 1974. Services recommenced for the period February 1990-March 1992. The airline now code-shares on Qantas.

1 Apr 1961QantasSydney/Melbourne/Brisbane/Perth/Cairns-Auckland/Christchurch Wellington/Sydney-Auckland-Papeete
Melbourne-Auckland-Los Angeles
4 Apr 1963British Airways1London-Los Angeles-Auckland-Melbourne (code-shared with Qantas, Los Angeles-Auckland-Melbourne)
1 Oct 1974Air PacificSuva/Nadi-Auckland
Nadi-Wellington
Nadi-Christchurch
1 May 1976Singapore AirlinesSingapore-Auckland/Christchurch/Singapore-Sydney
Auckland-Singapore (freight)/Singapore-Sydney-Auckland-Christchurch-Singapore (freight)
25 Feb 1978Polynesian AirlinesApia-Tonga-Auckland, Apia-Tonga-Auckland-Sydney, Apia-Wellington-Melbourne
1 Jul 1980Japan Airlines1Tokyo-Auckland, Tokyo-Christchurch-Auckland Osaka-Auckland
Fukuoka-Auckland
1 Nov 1985Canadian Airlines International2Toronto/Vancouver-Honolulu-Auckland
3 Dec 1985Cathay PacificHong Kong-Auckland
20 Dec 1985Aerolineas ArgentinasBuenos Aires-Auckland-Sydney
11 Feb 1986United AirlinesLos Angeles-Auckland-Melbourne Auckland-Sydney (code share on Air New Zealand)
8 Nov 1987Air Caledonie InternationalNoumea-Auckland
5 Nov 1987Thai AirwaysBangkok-Sydney-Auckland
4 Nov 1988Garuda IndonesiaJakarta-Denpasar-Brisbane-Auckland
1 Nov 1989Air VanuatuPort Vila-Auckland
5 Dec 1989Malaysia AirlinesKuala Lumpur-Auckland
13 Jun 1990Solomon AirlinesHoniara-Nadi-Auckland
1 Jul 1991Royal Tongan AirlinesTonga-Auckland-Sydney
29 Oct 1991LufthansaFrankfurt-Los Angeles-Auckland (freight, code-shared with Air New Zealand)
Frankfurt-Bangkok-Sydney-Auckland (passenger, code-shared with Thai Airways) from late 1995.
7 Nov 1992Mandarin Airlines1Taipei-Auckland
3 Nov 1993Korean AirSeoul-Auckland
Seoul-Nadi-Auckland
Seoul-Auckland-Christchurch
7 Nov 1993EVA AirTaipei-Brisbane-Auckland, Taipei-Auckland
13 Sep 1994Polar AirLos Angeles-Honolulu-Nadi-Auckland-Sydney (freight)
1 Jul 1995Evergreen International AirlinesLos Angeles-Honolulu-Auckland-Melbourne
(freight) capacity taken up by Air New Zealand)
1 Nov 1995American Airlines3Los Angeles-Auckland-Melbourne
18 Dec 1995Ansett Australia1Brisbane/Sydney/Melbourne-Auckland/Wellington/Christchurch
5 Jul 1996Lan Chile1Santiago-Easter Island-Papeete-Auckland
27 Mar 1997Asian ExpressAuckland-Sydney (freight)

Airways provides air traffic services, including flight information to civil and military air traffic and is responsible for the planning, provision and maintenance of radar, navigational aids and communications. The air navigation facilities provided in New Zealand include electronic aids such as non-directional medium frequency beacons (NDB), Doppler very-high frequency omni-directional radio ranges (DVOR), instrument landing systems (ILS), primary surveillance radar equipment (PSR), secondary surveillance radar (SSR), distance measuring equipment (DME) and very-high frequency direction-finding equipment (VDF).

Airways aims to ensure the safe, orderly and expeditious flow of air traffic within the 34 million square kilometres of Pacific airspace assigned to New Zealand by the International Civil Aviation Organisation (ICAO).

Aircraft operators and pilots pay Airways for the services they use. These include radar control, landing charges and aeronautical charts and publications. Airways also assists search and rescue and aerodrome emergency organisations. Its technicians perform the installation and maintenance of technical facilities, including runway lighting and navigation aids, for airport companies in New Zealand and overseas.

In its first seven years of existence Airways completed a modernisation of New Zealand's entire air traffic control system, upgrading the nation's network of navigation aids and moving to the next generation of air traffic control technology—satellites.

The first air navigation services organisation in the world to install a satellite-based Oceanic Control System (OCS), Airways has received four major international awards for achievement in infrastructure and the implementation of the OCS. The new system, which can track aircraft across the Pacific, will increase airline efficiency and air traffic safety.

Airways 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 Royal New Zealand Air Force.

Specialised divisions provide a range of related aviation services. Aviation Publishing is responsible for publishing aeronautical charts and manuals on behalf of the Civil Aviation Authority, and the Airways Training Centre in Christchurch conducts regular courses in air traffic services and telecommunications for New Zealand and international students. Airways Consulting has applied New Zealand's expertise in commercialisation and the implementation of communication, navigation and surveillance systems in India and Mauritius, and in the Pacific region.

The Airways Internet address is www.airways.co.nz

Domestic air services

The deregulation of domestic aviation commenced in 1983 and was completed in 1990 with the abolition of air services licensing. New Zealand has also allowed up to 100 percent foreign ownership of domestic airlines, for example, Ansett New Zealand. Air New Zealand and Ansett New Zealand are the major domestic operators and both airlines have regional connections through the “Air New Zealand Link" and “Ansett New Zealand Regional” brandings of commuter airlines.

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 32 such agreements and has negotiated another one which is awaiting signature. It also has a non-governmental agreement with Taiwan. 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 and providing for fair and equal opportunities for New Zealand airlines. Fifteen foreign airlines and two New Zealand airlines have commenced scheduled international passenger services to and from New Zealand since the policy was introduced in 1985.

Air New Zealand operates services to six gateways in Australia (Sydney, Melbourne, Brisbane, Perth, Hobart and Cairns) and code-shares on Ansett Australia services to a number of other points. In the Pacific, Air New Zealand operates to the Cook Islands, Western Samoa, Fiji, Tonga, Tahiti, Norfolk Island and New Caledonia. Thailand, Singapore, Indonesia, Japan (Tokyo, Osaka, Nagoya and Fukuoka), Hong Kong, Taiwan and Malaysia (on a code-share basis with Ansett International Services) are served in Asia and the United Kingdom and Germany in Europe. In North America services are available to both the United States and Canada (Vancouver and Toronto) while in South America, Air New Zealand operates on a code-share service with Lan Chile. Freedom Air International offers services across the Tasman.

The Tasman route is the busiest air route into New Zealand in both the volume of passengers carried and the number of airlines operating. Ten passenger and one cargo airlines offer services between Australia and New Zealand. There were 450,132 visitor arrivals from Australia who came to New Zealand in the year to August 1997. In the same period, 601,076 New Zealanders travelled to Australia, indicating that Australia was the destination in which they expected to spend the greatest time. There were 1,601,081 foreigners who visited New Zealand in the year ended August 1997. The greatest number of visitors to New Zealand are Australians, followed by Americans, British, Japanese, Korean and Taiwanese.

The control tower at Ohakea.

In order for an airline to operate scheduled services to or from New Zealand, the company must hold a valid air operator 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 or in the case of foreign airlines the Secretary for Transport, ensures that the services operated are in accordance with the bilateral arrangements.

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, 2,495 km; and Christchurch-Hobart, 2,024 km.

Table 23.4. DISTANCES FROM AUCKLAND AIRPORT TO SELECTED OVERSEAS DESTINATIONS1

DestinationDistanceDestinationDistance

1These are airport-to-airport great circle distances in kilometres.

Adelaide3,247Perth5,400
Apia2,893Port Moresby4,126
Bangkok11,500Rarotonga3,013
Brisbane2,293San Francisco10,503
Buenos Aires15,884Santiago12,822
Hong Kong9,145Seoul12,869
Honolulu7,086Singapore8,410
Los Angeles10,480Suva2,141
Melbourne2,635Sydney2,158
Nadi2,156Taipei10,654
Norfolk Island1,091Tokyo8,837
Noumea1,859Tonga2,004
Pago Pao2,902Townsville3,359
Papeete4,093  

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. Christchurch International Airport Limited is majority-owned by the Christchurch City Council. The ownership structure is currently being reviewed.

In addition to the international airports, there are now nine 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. Corporatisation gives the airports the flexibility to make the most from changes in the market.

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.

23.3 Railways

The New Zealand railways system has been through a period of transition from a government-owned and operated organisation to a commercially responsible, privately-owned business. For more than a century, railways in New Zealand were run as a government department until, in 1982. New Zealand Railways Corporation was established as a statutory corporation with a commercial mandate. In 1986 it became a state-owned enterprise, and in October 1990 the Government established New Zealand Rail Limited as a limited liability company. During these years of transport industry deregulation New Zealand Rail's staff numbers were reduced from more than 21,000 to around 5,000. productivity improved by nearly 300 percent in the land-based workforce, and the organisation was transformed into a profitable business, a trend which has continued to the present day.

On 20 July 1993 the Government announced the sale of New Zealand Rail to a consortium comprising Wisconsin Central Transportation Corporation and Berkshire Partners and Fay, Richwhite & Company Limited. The sale was completed on 30 September 1993. In June 1996 Tranz Rail Holdings Limited was listed on the New Zealand Stock Exchange and the NASDAQ National Market in the United States of America in an initial public offering. The company continues to be profitable. The workforce is now around 2,000.

Since the sale in 1993, the New Zealand Railways Corporation has continued as a residual government body with two principal activities: to manage all known litigation, contingent issues and statutory obligations, and to manage the Rail Corridor Lease with Tranz Rail Limited and other Crown land held for operational rail purposes so as to achieve the best return to the Crown. Lease income in the year to 30 June 1997 was $1,100,000 ($887,000 in 1996).

Tranz Rail plays a key role in New Zealand's increasingly competitive transport market, operating rail, trucking and shipping services throughout its national network. Since privatisation the company has transformed itself from a line haul rail company to a multi-modal transport operation providing freight and distribution services, warehousing, and logistics management as well as passenger services.

Planned investment in Tranz Rail's infrastructure will have a major impact on the ability to increase capacity, service reliability and the efficiency of the network.

Tranz Rail is considering an investment of $545 million over the next 15 years to provide a new Interisland fleet and new North and South Island ferry terminals. The first stage of this, the replacement of the interislander ferry, the Aratika, with the Aratere, a multi-purpose roll-on roll-off rail ferry that will be in service at the end of 1998.

The company continues to look at new market opportunities including the movement of bulk milk by rail from remote catchment areas into mega dairy processing sites. A contract to move up to 1.3 million litres of milk per day for Kiwi Dairy heralds a new era in the transport of milk products.

Freight transport. Tranz Link provides freight transport by rail, road or sea; it has a road network of more than 300 owner-drivers. It also offers warehousing, distribution and logistics management services. It is Tranz Rail's largest revenue earner, generating 70 percent of the company's total business. In the 1996-97 financial year it carried 11.5 million tonnes of freight an average distance of approximately 300 kilometres.

The main Tranz Link operating business units are:

  • Bulk Freight moves bulk commodity products such as coal, steel and cement. The majority of coal is transported from the coal mines situated on the West Coast of New Zealand to the export port of Lyttelton and to BHP Glenbrook from where steel is transported to export ports and domestic markets.

  • Cargoflow transports mainly meat and dairy products in bulk containers and conventional loads and handles containerised imports.

  • Forestry manages the transportation of logs for domestic processing and export and other timber products, such as pulp and paper, supplementing its transport services with storage and container packing options.

  • Distribution is an inter-modal service which operates a nationwide network of freight terminals, utilising the owner/driver network and fleet of RoadRailers, wagons that can travel by road or rail. It also offers refrigerated transport and warehousing services.

  • Refrigeration provides specialist temperature-controlled transport and distribution services.

  • Kombi Freight provides freight forwarding companies with linehaul and delivery services, manages container repair and storage depots and AutoExpress which moves motor vehicles in custom-built rail wagons.

  • Logistics provides planning services to meet customers' total transport needs including distribution, warehousing, vanning, electronic commerce and shipping.

Passenger services. Tranz Rail operates long-distance rail passenger services and urban commuter rail services in Wellington and Auckland.

Tranz Scenic—The flagship of its eight services is undoubtedly the TranzAlpine between Christchurch and Greymouth which is renowned as one of the great train journeys of the world with its spectacular scenery of the Southern Alps. Other South Island services include the Coastal Pacific between Picton and Christchurch and the Southerner between Christchurch and Invercargill.

The North Island long distance train services are the Overlander and Northerner which travel between Auckland and Wellington in the day-time and night-time respectively, the Kaimai Express between Auckland and Tauranga, the Geyserland between Auckland and Rotorua and the Bay Express between Wellington and Napier.

The award-winning carriage refurbishment programme continued during the year. This year Tranz Scenic won the Supreme Tourist Award for its Great Train Escape travel package. In 1997 Trans Rail acquired 61 passenger carriages from Britain that will be used to upgrade the passenger fleet.

Commuter rail services—Tranz Metro operates urban commuter services in Wellington and Auckland, providing an estimated 10.6 million passenger trips a year. Wellington has traditionally been a strong rail commuter market with services linking the central city with Johnsonville, Paraparaumu, and the Hutt Valley as well as the nearby regions of the Manawatu and Wairarapa. In 1995 a carriage refurbishment programme was announced in conjunction with the Wellington Regional Council to upgrade the region's 14-year-old Ganz Mavag electric units.

In Auckland, urban passenger services were boosted by the introduction of diesel multiple units (DMUs) in 1993. Tranz Rail is currently working with the Auckland Regional Council to increase line capacity to cater for the heavy public demand for its services. 1997 initiatives include extending station platforms, possible double tracking and replacing rolling stock.

Interisland ferry services—Tranz Rail operates three conventional rail ferries on round-the-clock sailings across Cook Strait between Wellington and Picton. Arahura and Aratika are multi-purpose roll-on roll-off vessels carrying passengers, rail wagons and commercial vehicles, with on-board facilities including movie theatres, restaurants, food courts, bars, shops, study rooms and children's play areas, whilst Arahanga caters to the rail freight and commercial vehicle markets. The new ferry Aratere being built in Spain, will be ready for service in late 1998.

A seasonal fast ferry, The Lynx, operates for four months in the summer.

Timber and coal are important freight for the railway system.

The four vessels made over 5,000 crossings of Cook Strait in the year to 30 June 1997. More significantly, during that period more than one million passenger journeys were made. The three conventional ferries also carried 219,000 cars.

Operations. Operations supports Tranz Link, Tranz Scenic and Tranz Metro by providing infrastructure and support services, including freight handling, train crewing, maintaining the rail network and rolling stock, managing rail yards and designing new wagons and carriages. It also operates two ISO 9002-accredited heavy engineering workshops, Hillside in Dunedin and Hutt near Wellington, which build and upgrade freight and passenger rolling stock as well as tendering for outside business. Daily servicing of the rolling stock is carried out at 20 depots throughout the country.

Operations have begun a major upgrading of the company's wagon fleet, to develop customer-programme specific designs and high-capacity wagons. The company is progressively rebuilding its fleet of DF and DX locomotives to improve power and fuel efficiency. Remote controlled shunting and single man crewing have been successfully introduced and a programme to destress track prone to heat buckling has also been completed.

Rolling stock and structures. Tranz Rail operates a railway network extending over 3,913 kilometres. There are a number of short private railway sidings serving Tranz Link customers.

There are 2,178 bridges and viaducts to carry the railways across the many gorges, rivers, and streams in New Zealand. 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.

There are 149 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 in 1997 its ventilation system was modified so that diesel locomotives could use it. The former electric systems were decommissioned.

At 30 June 1997 Tranz Rail's track and rolling stock included 357 diesel, electric and shunting locomotives, 6,728 freight wagons, 301 passenger carriages and commuter units, three rail ferries and plant and support equipment.

Technology. Tranz Rail has invested in an electronic data interchange (EDI) system which creates an electronic link to customers, initially for the transfer of waybills and invoices, and later for wagon ordering, cargo tracking and payments. EDI allows fast, paperless transactions of information between the company and its customers.

This will complement the state-of-the-art AMICUS computer system, which combines electronic waybilling with a wagon-tracking and weighing system. Ontrac, Tranz Rail's freight tracking system, tracks individual consignments using barcode technology. This is complemented by Ontrac Direct which provides real time freight tracking data over the Internet. The address of the Tranz Rail web site is www.tranzrail.co.nz.

Environment and safety. Rail can carry higher tonnages with greater fuel efficiency, ensuring less disturbance to road travellers. For example, one log train can carry as much as 65 truck and trailer units. The urban commuter services also remove traffic congestion from the city highways and reduce carbon emissions. Tranz Rail participates in the Energy-wise Companies campaign, promoted by the Energy Efficiency and Conservation Authority which, in conjunction with the Government and energy supply authorities, aims to maximise industrial energy efficiency over the next five years.

Table 23.5. NEW ZEALAND RAIL—SUMMARY OF OPERATIONS

CategoryUnitAs at 30 June
199019931994199519961997

Source: Tranz Rail

Route—
    North Islandkm2,5782,4812,4232,4232,4232,516
    (electrified)km510510510510510510
    South Islandkm1,4921,4921,4921,49214921,584
    (electrified)km141414141414
Bridgesno2,1882,3302,3302,3302,1782,178
km64.6375.4575.4575.4575.4575.00
Tunnelsno153150150150149149
km89.6988888887.387.3
Locomotives—
    diesel/diesel-electricno259257258248181196
    electricno272727252727
Rolling stock—
    freightno10,0678,8597,8936,9496,8286,728
    passenger (incl. motorised)no256269287294256301
Passengers carried—
    long distanceno..391,000450,000443,000453,000472,000
    suburbanno..10,000,00010,100,00010,200,00010,600,00011,100,000
Total freight carried...tonnes8,295,0008,451,0009,444,0009,584,00010,305,00011,525,000

‘Operation RailSafe’ is a children's railway safety programme designed to educate school children about level crossings and the dangers of playing near railway tracks and trains. Since it was launched in 1994 more than 100,000 children have been through the programme.

Tranz Rail also supports safety in the community through its sponsorship of air ambulances based in Palmerston North, Taupo, the West Coast and Dunedin. The Tranz Rail Marine Safety Centre in Greymouth and the Tranz Rail Rescue Boat in Marlborough Sounds are also part of the safety programme.

23.4 Road transport

Capital investment in New Zealand's reading and road transport system exceeds that in all other forms of transport. There are about 91,800 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 1997, recorded 9,080 full-time equivalent persons engaged in the provision of road passenger transport, and 21,660 persons engaged in providing road freight transport.

“Slaves to the car” at a car-conscious campaign in Wellington's Midland park, October 1997. There is a determined (but not large) group of environmentalists pressing for less use of private cars, in favour of walking, biking and public 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 criterion for road transport operators.

Land transport

Under the Transit New Zealand Act 1989, Transit New Zealand was given the responsibility for developing a national land transport programme. It took over the responsibilities of the National Roads Board and Urban Transport Council, becoming the new organisation responsible representing the interests of New Zealanders in the planning and funding of the land transport system.

In 1995 there were further significant changes to reading system administration with the passing of the Transit New Zealand Amendment Act. A new Crown entity, known as Transfund New Zealand was established, functioning independently from Transit New Zealand.

Transfund New Zealand

Transfund New Zealand began operations on 1 July 1996 as a Crown entity. Its responsibilities include land transport system funding that was previously undertaken by Transit New Zealand. Its objective is to allocate road-user funds from the National Road Account to achieve a safer and more efficient reading system. This account is made up of proceeds from a portion of the Fuel Excise Tax, Road User Charges and Motor Vehicle registration funds.

Workers adjust filter cloth at a drain on the State Highway 1 bypass north of Auckland, to ensure that diverted water stays as clean as possible before flowing into local streams.

Specific roles of the organisation include:

  • Developing the National Roading Programme (NRP) which proposes activities and allocates funds for roading, passenger transport, and efficient alternatives to roading.

  • Undertaking reviews and audits of the activities of road controlling authorities, including Transit New Zealand and regional councils, with respect to roading construction and maintenance and passenger transport funded from the National Road Funds.

  • Determining funding policy for the maintenance and construction of roads managed by road controlling authorities.

  • Ensuring all activities outlined in the NRP are achieved.

Transit New Zealand

Transit New Zealand came into being on 1 October 1989 and operates as a Crown entity. It is charged with the responsibility for the management, maintenance, and further development of the state highway network and reports to the Transit New Zealand Authority. This is an independent authority, appointed by the government which operates much like a company board, directing overall policy and funding allocation.

Each year Transit New Zealand is required to prepare an annual work programme for the state highways and submit this to Transfund New Zealand for approval. This programme is competitively assessed against applications for funding submitted by the nation's 74 territorial authorities.

Through the organisation, New Zealand has become one of only three countries to adopt a formal road safety audit policy and procedure.

The roles of Transit New Zealand include:

  • Managing the state highway network.

  • Developing, in consultation with territorial local authorities, standards and guidelines for state highway management practices that are safe and cost-effective. This includes topics such as road maintenance, construction and advisory signs.

  • Providing assistance and advice, including development of standards and guidelines for safe and cost-effective practices, to local authorities as requested by Transfund.

  • Ensuring activities programmed in the National Roading Programme for state highways are achieved.

Roading

There are 74 national and provincial state highways and motorways in New Zealand, comprising 10,453 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 15,286 kilometres of urban roads and 66,137 kilometres of rural roads, making a total of 91,876 kilometres of developed roading. which includes over 15,800 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.

Canoe group Te Kai Ara Tawhito negotiate a hazard in Otahuhu which their trading ancestors never had to face, as they portage on their way from the Manukau to the Waitemata Harbour, January 1997.

Pedestrian peace returns to Pokeno's main street with the opening of a four-lane bypass on State Highway 1, which is also more efficient for traffic.

Table 23.6. FORMED ROADS AND STREETS

Nature of surfaceLocal authority roadingState highways and motorwaysTotal
Urban areasRural areas

Source: Transfund New Zealand

 kilometres
At 30 June 1995
Paved or sealed14,869.730,259.810,327.055,456.5
Metal or gravel416.035,878.0126.036,419.3
            Total, maintained roads15,285.766,137.010,453.191,875.8
At 30 June 1996
Paved or sealed14,866.830,641.810,346.755,855.3
Metal or gravel490.835,401.0117.036,008.8
            Total, maintained roads15,357.666,042.810,463.791,864.1
At 30 June 1997
Paved or sealed15,128.330,844.710,365.456,338.4
Metal or gravel444.335,062.7121.035,628.0
            Total, maintained roads15,572.665,907.410,486.491,996.4

Roading taxation is described in section 28.2, Taxation.

Table 23.7. EXPENDITURE ON STATE HIGHWAYS

Class of expenditure19931994199519961997

1Excludes motorway structures.

2Maintenance figures include the cost offload damage repairs when applicable.

Source: Transfund New Zealand

$(000)
Construction and improvement95,367110,984114,933136,170166,606
Bridges and other structures18.0612,8601,5729106,624
Maintenance, repairs, etc.2205,547223,891221,199226,051244,861
            Total308,975337,335337,704363,131418,091

Table 23.8. PUBLIC ROADING EXPENDITURE

Item1993x1994199519961997

1Previously known as the National Roads Fund.

2Includes special purpose roads.

Source: Transit New Zealand

$(000)
State highways expenditure308,975337,335337,704363,131418,091
Special purpose roads1,9902,6402,5854,240 
Local authority roading expenditure—
From Land Transport Fund1230,703241,440260,902256,726269,8532
            Total541,668581,415601,191624,097687,944

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 2.4 million vehicles are relicensed progressively throughout the year.

MOTOR VEHICLES
Numbers licensed

Licence label. A new-style label introduced in 1995 is displayed inside the vehicle's windscreen. The registration number, make, model and year of the vehicle; and month and year of the label's expiry are verified by a barcode on the label. The label also shows when the vehicle was first registered in New Zealand, whether road user charges and a Vehicle Inspection Certificate are required, and the label number and date it was printed.

Change of ownership. The procedure for changing the ownership of a vehicle has changed to put the onus on the buyer to prove their identity. The date of sale and when ownership was transferred will also be clearer. This avoids old fines being transferred with vehicle ownership and vehicles being registered in the name of children, pets or persons unknown.

The annual relicensing charges are: ordinary motorcars, $157.75, subject to transport licence fee, $181.70; motorcycles, $53.90 (60cc or less) or $141.40; rental cars, $183.25; trucks, vans and utilities (private passenger) from $157.75 to $159.25, subject to transport licence fee from $181.70 to $183.25; and tractors (non-exempt) $70.55. All figures include goods and services tax.

The various types of motor vehicles registered and licensed are itemised in the following tables.

Table 23.9. REGISTRATIONS OF NEW COMMERCIAL VEHICLES

December yearNew commercial vehicles by gross weight in kilogramsTotal commercial vehicles
2500 or less2501 to 45004501 to 90009001 to 14,50014,501 and overOmnibus and service coaches

Source: Statistics New Zealand

199211,9008,7841,30240194643925,325
199312,96910,3371,9304841,15053228,863
199413,66811,8602,2577071,45458831,940
199512,52611,69022137411,71471430,879
199610,96012,8452,6708921,7691,01231,132
19979,00597182,5498661,56681624,520

Table 23.10. LICENSED MOTOR VEHICLES

Type of vehicleAt 31 March
1994199519961997

Source: Land Transport Safety Authority

Cars1,600,4991,647,1341,635,7181,675,301
Rental cars11,35013,36414,39415,737
Heavy trucks, light trucks, vans, utes340,261355,833342,246346,489
Taxis4,0794,4585,7336,142
Buses and service coaches8,6579,1099,2489,997
Caravans, trailers374,110361,965341,841303,371
Motorcycles57,80554,39147,19638,288
Mopeds1,2561,5082,1028,425
Tractors20,17319,98918,30218,176
Trade plates D4,6675,1055,9536,383
Trade plates C592611650700
Miscellaneous7,0267,00714,95814,974
Exempt vehicles7,0407,25311,66513,133
            Total, all vehicles2,437,5152,487,7272,450,0062,457,116

Table 23.11. REGISTRATIONS OF NEW VEHICLES

December yearNew cars and station-wagons—c.c ratingCars previously registered Total overseas1New motor cycles
850 and under851 to 13001301 to 16001601 to 20002001 to 50005001 and overTotal

1Included in total.

Source: Land Transport Safety Authority

198988021,49644,06650,00018,137309134,82850,9665,796
19906831975156,43884,18118,391302159,74685,3244,897
199180610,52335,36141,60114,497178102,96647,3514,042
19925927,20930,24136,67917,17420592,11039,1462,469
19934536,67430,94338,70120,73415897,66343,8412,601
19944946,67638,93647,74429,691312123,85362,0883,337
19955795,24646,95256,03537,375469146,65680,9763,451
19965863,79956,06667,40247,829496176,178111,7643812

Not included in the above tables are new tractors (see separate table).

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.

Two truck drivers chat as a police officer checks one of their vehicles during a truck safety blitz.

Table 23.12. LICENSED VEHICLES BY POPULATION

As at 31 MarchNumber of persons in population per carNumber of persons in population per motor vehicles1

1Excluding trailers and caravans.

19902.291.77
19912.241.74
19922.211.72
19932.211.72
19942.181.69
19952.151.66
19962.201.64

Motor Vehicle Securities Register

A motor vehicle securities register is administered by the Ministry of Commerce Commercial Affairs Division under the Motor Vehicle Securities Act 1989.

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 April 1996 there were 431,298 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.

Travel to work

Table 23.13 shows how people who had a job travelled to work on the day of the 1996 Census of Population and Dwellings. The table excludes the 160,431 people who did not go to work on census day, 6 March 1996 (because they were on holiday, sick etc).

Just over 11 percent of workers did not have to actually travel to work because they worked at home. A greater proportion of women than men (12.6 percent versus 10 percent) are in this situation. Over two-thirds of men who work at home are either self-employed and without employees, or employers, whereas the proportion of women in these two categories is just over half. Women who work at home are more likely than men to be paid employees or unpaid family workers. Nearly half of those who work at home, are in the occupation group which covers agricultural, animal husbandry and forestry workers, fishers and hunters.

There has been an increase, from 8.6 percent to 11.2 percent, in the number of people working at home in the five years since the 1991 Census. This partly reflects the increased flexibility of the labour market which has allowed more non-standard working arrangements, and an increase in self-employment. The 1996 Census also shows a big increase in the number of people who are unpaid workers in a family business, the majority of whom are in the agricultural industry and who work at home.

Table 23.13. TRAVEL TO WORK, 1996 CENSUS

Means of transport1986 Male1986 Female1991 Male1991 Female1996 Male1996 Female
numberpercentnumberpercentnumberpercentnumberpercentnumberpercentnumberpercent

Source: Statistics New Zealand

Worked at home68,1997.655,7919.256,0617.749,8339.780,37010.011,73012.6
Public bus47,0345.364,35610.618,1652.529,2025.719,1102.428,5274.6
Train13,7251.59,7711.65,7210.85,0731.06,3210.86,0721.0
Drove a private car, truck, van381,93042.8307,05650.4330,4320.7293,81757.1390,06048.8368,50559.8
Drove a company car, truck or van140,46315.715,7802.6140,97319.518,6843.6148,97418.621,8133.5
Passenger in a car. truck, van or company bus56,5716.354,3158.942,2735.849,6329.642,0635.346,3747.5
Motor bike or power cycle44,5145.08,6011.425,7673.64,1850.818,1742.32,9430.5
Bicycle53,4456.025,3774.243,7196.017,2953.438,6254.812,1892.0
Walked or jogged77,3528.765,73310.850,9647.043,7258.546,0535.8464167.5
Other8,8741.02,7540.59,3511.33,4290.710,3561.35,9041.0
Not specified6,348 3,912 12,357 9,942 27,336 26,469 
            Total898,455 613,446 735,783100524,817100827,442100642,942100

Fun, but not correct procedure for biking on the street. There is considerable safety training for young cyclists during their school years.

By far the most popular way of getting to work in 1996 was by car—either driving or as a passenger. Almost 73 percent of men and just over 70 percent of women used this means of transport. The flood of Japanese cars imported into New Zealand, which has made cars more affordable, has no doubt contributed to the popularity of car transport. A greater percentage of men drove company cars, though the proportion doing so has dropped slightly since the 1991 Census, after rising sharply between the 1986 and 1991 Censuses. The proportion of women driving company cars has not changed much in the last 10 years, despite the fact that a higher proportion of women are in managerial and professional positions now than in 1986.

Use of public transport for the journey to work is low and it has continued to decline since the last census. About 5 percent of women and 3 percent of men used either a public bus or train in 1996. Only one region in the country stands out as having a high proportion of people using public transport—Wellington, where 13.4 percent used either a public bus or train to get to work. And there is no evidence that people are using their journey to work to heed the call to do more exercise. Just over 10 percent of the working population travelled to work by bicycle or walked or jogged, compared with 12.4 percent in 1991. The weather on census day could affect these figures.

The travel-to-work patterns also vary by occupation. More than three-quarters of legislators, administrators and managers, and more than three-quarters of trades workers (who are more likely to use a car in the course of their work during the day), drive a private or company car to work. At the other end of the scale, two occupation groups have significantly higher proportions who ride a bicycle or walk or jog to work. These are workers in elementary occupations, including labourers and related unskilled workers (18.3 percent), and service and sales workers (16.8 percent).

Road safety

Since 1993 road safety has been under the control of the Land Transport Safety Authority (LTSA). The LTSA is the government's chief advisor on land transport safety and suggests policy, develops stands and reviews land transport safety systems in full consultation with industry groups.

Road laws are enforced by the New Zealand Police following their merger with the Traffic Safety Service of the Ministry of Transport in 1992. In addition they investigate serious and fatal accidents: enforce the laws regarding heavy traffic, 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 and. from age 76, practical tests must be taken every second year.

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. From 1994 Vehicle Inspection Certificates (VIC) have been phased in to replace Certificate of Fitness and Warrant of Fitness stickers. From 1 September 1994 a VIC has been needed before people can relicense their vehicles. This makes it more difficult to re-register stolen vehicles and improves the safety of vehicles on the roads.

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.

All children under five must be properly restrained by an approved child restraint when travelling in cars and vans. Drivers must make sure that children between five and seven are safely restrained if there is a child restraint or seatbelt in the vehicle. If no restraint is available, children must be seated in the rear of the car. Drivers are also responsible for making sure children between eight and 14 use seatbelts when available.

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 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. New Zealand's roading network is essentially a two way, two lane system and the management of speed is therefore a critical aspect of traffic safety. 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.

Laser speed management. In 1996, Police introduced LIDAR speed measuring equipment to supplement other enforcement tools. LIDAR uses a laser beam to measure the speed of vehicles. It is particularly useful in heavy traffic and multi-lane situations, where its ability to isolate and measure individual vehicles permits targeting of speeding vehicles in the traffic stream.

Insurance. See section 8.5 Accidents and section 24.3 Insurance and superannuation.

Road safety education. Details on road safety campaigns are given in section 8.5 Accidents.

Traffic offences

Penalties are awarded by courts for driving and other offences under the Transport Act 1962 and attendant regulations. Breaches of certain laws are dealt with under an infringement system whereby a driver may pay an infringement fee within a specified time to avoid court proceedings.

There is also a system in operation whereby demerit points are automatically registered according to a fixed scale against people convicted of driving offences or people who paid certain infringement fees. The director of the Land Transport Safety Authority may suspend drivers' licences for three months where 100 or more demerit points are received within two years. Some demerit points are awarded on a graduated scale, based on the speed a driver is detected travelling at over the limit.

A police checkpoint after the food and wine festival at Devonport, Auckland, February 1997. Out of 3,924 drivers stopped at the weekend only 12 faced charges.

Table 23.14. TRAFFIC OFFENCES AND INFRINGEMENTS1

Type of offenceYear ended 30 June2Percent variation
19961997

1Includes traffic offences reported to the police but no prosecution initiated.

2This table in the 1997 Yearbook was for the year ended 31 December.

Source: New Zealand Police

Traffic offences
Drink/drive offences32,63432,104-1.62
Dangerous/reckless driving4,6864,560-2.69
Careless/inconsiderate driving/overtaking offences26,18724,050-8.16
Speeding offences (under 100 km)1,4521,190-18.04
Speeding offences (over 100 km)1,1661,116-4.29
Speeding—trailer, towing, heavy motor vehicle5242-19.23
Speeding offences—speed camera offence30838123.70
Failure to stop/give way1,3051,146-12.18
Failure to obey officer/fulfil duties8,3408,037-3.63
Vehicle licence offences1,8412,11714.99
Driving while disqualified offences12,400124100.08
Driver licence offences12,15013,1858.52
Certificate of fitness offences774766-1.03
Driver hours/log book3,4343,5092.18
Passenger/recovery/rental service vehicle offences51570136.12
Vehicle condition offences19688-55.10
Vehicle safety offences5935-40.68
Vehicle noise/loading offences7407775.00
Bicycle offences11985-28.57
Cycle helmet offences119116-2.52
Pedestrian and other offences16227469.14
Stock and vehicle bylaw offences5248-7.69
Other traffic offences374240-35.83
            Total109,065106,997-1.91
Traffic infringements
Unsafe use of vehicle13,87113,267-4.35
Speeding infringements (under 100 km)47,19455,33417.25
Speeding infringements (over 100 km)32,40737,54415.85
Speeding—trailer, towing, heavy motor vehicle1,6672,14628.73
Speeding infringements—speed camera offences374,688363,377-3.02
Failure to stop/give way22,08523,7637.60
Failure to obey office/fulfill duties7251,07448.14
Vehicle licence/overloading infringements15,10920,09432.99
Driver licence infringements107,734122,66013.85
Certificate of fitness infringements67,10479,40018.32
Seat belt and miscellaneous infringements23,81831,88133.85
Safety helmet infringements771706-8.43
Passenger/recovery/rental service vehicle infringements40945611.49
Vehicle condition infringements4,0754,3226.06
Vehicle noise/loading infringements2,0072,54326.71
Bicycle infringements2,8023,0438.60
Cycle helmet infringements8,7818,363-4.76
Pedestrian and other infringements2712761.85
Local body bylaw infringements639550.79
            Total725,581770,3446.17
            Total834,646877,3215.11

TRAFFIC CONVICTIONS
Rate per 10,000 of population

Contributors

  • 23.1 Ministry of Transport; Maritime Safety Authority.

  • 23.2 Ministry of Transport; Civil Aviation Authority; Airways Corporation of New Zealand.

  • 23.3 Tranz Rail Limited; New Zealand Railways Corporation.

  • 23.4 Ministry of Transport; Transit New Zealand; Transfund New Zealand; Autocheck; New Zealand Police; Land Transport Safety Authority.

Special articles

Transport Accident Investigation Commission: Civil Aviation Authority; Airways Corporation: Transit New Zealand; Vehicle Testing New Zealand.

Further information

Transport—general

Annual Enterprise Survey. Statistics New Zealand.

Census of Transport, Storage and Communication 1984-85. Department of Statistics.

Key Statistics. Statistics New Zealand (monthly).

Report of the Transport Accident Investigation Commission (Parl paper F.7).

Report of the Transport Committee (Parl paper 1.2B).

Report of the Ministry of Transport (Parl paper F.5).

Report of Transit New Zealand (annual).

Maritime

Shipping and Cargo Movements. Department of Statistics (annual).

Annual Report of the Maritime Safety Authority.

Maritime Accidents 1996-97. Maritime Safety Authority (annual).

Civil aviation

New Zealand Register of Aircraft. Civil Aviation Authority of New Zealand.

Annual Report of the Airways Corporation of New Zealand.

Annual Report of Air New Zealand Limited.

Annual Report of the Civil Aviation Authority.

Railways

Report of the Railways Corporation (Parl paper F.7).

Tranz Rail Holdings Ltd 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).

Report of the Road Safety Trust (Parl paper F.15).

Chapter 24. Commerce and services

The public watch share prices fall in Wellington, October 1997.

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 subsequent 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 and the Fair Trading Act 1986 are New Zealand's competition law. In general terms, they rest on the premise that the existence of open and competitive markets will ensure the efficient allocation of economic resources.

The Commerce Act prohibits anti-competitive collusive and unilateral behaviour, and mergers that 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.

The Fair Trading Act exists to ensure information for consumers is accurate. Accurate information is vital for competition. If information is false or misleading, then consumers and competitors are disadvantaged and competition is distorted.

The Fair Trading Act gives anyone, including customers, competitors and the Commerce Commission the right to take action against breaches of it.

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.

A Ministry of Consumer Affairs was established in 1986. The Consumer Guarantees Act 1993 is administered by the Ministry of Commerce.

Up-to-date summary information on distribution is provided (see table 24.1) by the Annual Enterprise Survey, which covers the activities of all businesses classified in Divisions F and G of the Australian and New Zealand Standard Industrial Classification (ANZSIC).

24.1 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.

Table 24.1. DISTRIBUTION: STATISTICAL SUMMARY (6: Wholesale and Retail Trade, Restaurants and Hotels)

Statistical itemWholesale Trade1Retail Trade2
1994/951995/961994/951995/96

1ANZSIC division F.

2ANZSIC division G.

Source: Annual Enterprise Survey 1995-96, Statistics New Zealand

 $(million)
Closing stocks6.542.67,214.13,361.63,304.1
Opening stocks6,217.06,631.33,010.13,157.1
Sales of goods and services50,618.853,449.331,312.731,722.6
Interest, dividends, donations, royalties, patent fees, insurance claims received and bad debts recovered511.3506.2126.4150.6
Government grants and subsidies2.87.413.912.6
Other income including extraordinaries485.0447.822.934.7
Total income51,618.054,410.731,476.031,920.5
            Total income adjusted for stocks51,943.654,993.531,827.532,067.6
Salaries and wages paid to employees2,724.33,042.62,670.32,857.7
Redundancy and severance21.520.66.38.4
Salaries and wages to working proprietors (SW to WPs) 686.3 448.2486.7660.3
Levies paid to Accident Compensation Corporation47.858.952.863.1
Employer contributions to superannuation schemes47.049.512.410.7
Fringe Benefit Tax66.772.121.820.3
Purchases and other operating expenses44,781.647,056.226,647.426,541.9
Interest, donations, grants, royalties, patent fees paid and bad debts written off739.5817.7285.6323.4
Indirect taxes (excluding Fringe Benefit Tax)67.879.691.2107.9
Depreciation450.9475.7378.0408.2
Other expenses including extraordinaries184.6135.831.259.8
            Total expenditure49,558.452,274.730,850.831,079.0
Net profit before tax, extraordinaries, SW to WPs2,533.02,893.51,645.21,699.8
Net profit before tax, SW to WPs2,833.43,205.51.636.91,674.8
Purchases of plant, machinery, vehicles and equipment614.7672.0473.7513.4
Purchases of land and land improvements62.270.955.037.3
Purchases of buildings and other construction113.8136.8101.1129.7
Total purchases of fixed tangible assets790.6879.8629.9680.4
Sales of fixed tangible assets221.9269.9173.2128.4
Shareholders funds or owners equity9,127.610,174.24,051.83,886.2
Current liabilities11,288.812,500.43,940.64,061.9
Other liabilities2,512.32,247.81,785.41.903.6
            Total capital and liabilities22,928.724,922.49,777.89,851.6
Fixed tangible assets3,520.03,661.22,899.22,996.7
Current assets16,355.617,631.55,462.55,471.3
Other assets3,053.03,629.61,416.11,383.7
            Total assets22,928.724,922.49,777.89,851.6
Ratios
Total income per FTE$565,031$574,740$188,721$191,091
Net profit per FTE$27,727$30,564$9,864$10,176
Current ratio144.9%141.0%138.6%134.7%
Quick ratio86.9%83.3%53.3%53.4%
Profit margin on sales5.0%5.4%5.3%5.4%
Return on equity27.8%28.4%40.6%43.7%
Return on total assets11.0%11.6%16.8%17.3%
Liabilities structure39.8%40.8%41.4%39.4%

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—Manatū Kaihokohoko

The purpose of the ministry is to promote a fair and informed marketplace by working with consumers and businesses to:

  • provide high quality advice to Government on laws, practices and policies affecting consumers;

  • promote consumers' rights to safe products in the marketplace;

  • enhance consumers' ability to function effectively and equitably in the market by providing information, education and advice;

  • ensure market transactions based on weight and measurement are accurate, fair and consistent with international standards; and

  • promote improved market practices and encourage compliance with codes, standards and laws.

The Policy Section provides advice to the government on matters affecting consumers, and promotes and participates in the review of consumer-related legislation, policies and programmes. It is involved with the making of consumer information standards under the Fair Trading Act 1986. The ministry monitors laws such as the Fair Trading, Consumer Guarantees, Motor Vehicle Dealers, and Hire Purchase Acts.

The Consumer Information Service was launched in 1997. It promotes awareness among consumers and the business sector of their rights and obligations in the marketplace through consumer education and information programmes. It has regional offices in Auckland, Wellington and Christchurch. The new service emphasises reaching out into communities, providing education and advice, and training key community groups.

The Trading Standards Service with offices in Auckland, Palmerston North, Wellington and Christchurch, works to:

  • ensure that goods are exchanged on the basis of recognised, informed and accurate weight or measure

  • uphold consumers' rights to safe products and services in the marketplace by promoting effective market practices, ensuring compliance with those practices, and investigating reports of unsafe products.

The ministry's Consumer Advice Service, with toll-free lines based in Auckland, Wellington and Christchurch to handle enquiries from consumers about their legal rights, to enable them to resolve their own complaints, was closed on 31 July 1997. In the year to 30 June 1996, it had received 49,112 requests for assistance from consumers and traders. Citizens Advice Bureaux and other community groups are being supported by the ministry to provide consumer advice.

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.

Consumers' Institute. The institute is an independent, impartial and comprehensive provider of consumer information and advice. It aims to provide effective and timely consumer advocacy. Most of the institute's activities centre on the publication and distribution of its magazines Consumer (circulation 86,000) and Consumer Home & Garden (circulation 48,000). The institute's work covers a wide range of consumer protection and information activities, including comparative tests and surveys of consumer goods and services; and research into and advice on financial, food, health, safety, welfare and environmental matters. All survey and test results are sent to named parties before publication and draft articles are checked by expert commentators.

The institute makes submissions on behalf of consumers at Parliamentary Committees and public inquiries; its representatives liaise with government, business, trade and safety organisations; and it maintains an interest in consumer education and complaints advisory work for its members.

The institute is funded by membership subscriptions and the sale of publications. No donation or sponsorship is accepted from any commercial source and no government funding is received. The institute is governed by a board elected by subscribing members.

The website address for Consumer Online is www.consumer.org.nz. This is principally a free information service which includes a product safety recall directory funded by the Emily Carpenter Consumer Charitable Trust.

The government, through EECA, is promoting energy efficiency in many ways—with this publication, it targets the business sector.

Shop trading hours

While traditionally retailers were restricted by legislation in the hours they could open their shops, such restrictions were removed by the Shop Trading Hours Act Repeal Act 1990.

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

The object of the Sale of Liquor Act 1989 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:

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.

A Liquor Review Advisory Committee was appointed last year to assist with the review of the Sale of Liquor Act 1989. The committee recently released its report which contained recommendations on a number of issues including: reducing the minimum drinking age; extending Sunday trading; changes relating to the different types of licences that can be granted; retaining the status quo in respect of the drinking hours; not incorporating a definition of host responsibility or intoxication into the act; devolving more operating power from the Liquor Licensing Authority to District Licensing Agencies; introducing a new licensing controller's certificate to replace the present certificated manager system; removing the trading privileges for licensing trusts; and changes on a number of minor technical issues. The committee made no recommendation in respect of health warnings, pending the outcome of the Australian and New Zealand Food Authority's findings. It also recommended that consideration of the Potter Report on liquor advertising should await the outcome of the triennial review being conducted by the Advertising Standards Authority Inc. in 1997. Any legislation arising from the review will be introduced during the year.

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. Applications 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.

24.2 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 1993. 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 1993. This is by far the most usual form of business operation in New Zealand.

Registered companies. A company registered under the Companies Act 1993 must have at least one shareholder. There is no limit on the number of shareholders a company can have. The distinction between private and public companies under the Companies Act 1955 no longer applies under the new Act. 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. A shareholder's liability is limited to the amount, if any, unpaid on that member's shares.

Table 24.2. COMPANY REGISTRATIONS

Year ended 30 JuneNew companies registeredCompanies dissolved or struck offCompanies on register

1Year ended 31 March.

Source: Ministry of Commerce

1990111,28912,377159,922
199110,95314,984153,275
199212,33011,144154,526
1993R14,16011,884156,925
199417,2639,711168,391
199516,24911,320170,350
199619,86313,101177,093
199723,1727,936192,224

NEW COMPANY REGISTRATIONS
Related to size of population

New companies legislation. Until 1994 New Zealand's business environment was regulated through the Companies Act 1955. It was an old piece of legislation that had been substantially amended over the years and was not only hard to follow but also, in some places, out of step with current business practice. The legislation needed to be streamlined and simplified to make it more intelligible and accessible to those who use it.

There is a category for environmental accounting in the Annual Report Awards organised by the Institute of Chartered Accountants of New Zealand. This recognises a need to be aware of the increasing importance of environmental accounting in New Zealand and overseas, the institute said.

Their award promotes the importance of issues such as wastes, energy, recycling, environmental impact assessments and environment investment appraisals.

It was noted that only a minority of companies entered in the annual awards had made any attempt at environmental disclosure.

The award was won in 1997 by Watercare Services Ltd (their report cover above).

In 1993 a new company law reform package was enacted which came into force on 1 July 1994. The package comprises 22 pieces of legislation, the principal ones being: Companies Act 1993, Companies Amendment Act 1993, Financial Reporting Act 1993 and Takeovers Act 1993.

The Companies Act 1993 requires companies to satisfy a solvency test in certain circumstances (eg before making a distribution in respect of shares). It enables companies to repurchase their shares (previously not permitted under company law) subject to safeguards. It reforms directors' duties and for the first time states them in the statute. It also reforms the remedies available to shareholders and simplifies the law about liquidating companies.

The company law reform package provided a three-year transition period when the Companies Act 1955 and the new Companies Act both existed. New companies were able to be formed only under the new act but existing ones had three years in which to re-register. This three-year period ended on 30 June 1997 with 59,311 companies re-registered (53,038 in the third year) while 70,513 companies were deemed re-registered automatically. Companies with rules governing shareholder voting rights which failed to re-register now have to adopt new constitutions to ensure shareholders' rights are maintained. About 6,660 companies remain registered under the Companies Act 1955 because they were in liquidation at 30 June 1997.

The package also separated from the Companies Act the law about receiverships and placed it in the Receiverships Act 1993.

The Takeovers Act established a Takeovers Panel to formulate and recommend a takeovers code. The act sets out the objectives of a takeovers code to encourage the efficient allocation of resources and competition for corporate control, assist in ensuring shareholders are treated fairly, promote the international competitiveness of New Zealand's capital markets, recognise that ultimately it is for shareholders to determine the merits of a takeover and maintain a proper relation between the costs of compliance with the code and the benefits from it. The panel formulated and recommended a takeovers code to Government in 1995. Government decided to defer making a decision on the proposed takeovers code until the effectiveness of new companies legislation and the Stock Exchange's new Listing Rules in protecting minority shareholders could be assessed. The Companies Amendment Act 1963 continues to apply in the absence of the panel's proposed code being adopted by Government.

The Financial Reporting Act established an Accounting Standards Review Board to approve financial reporting standards. Companies (other than exempt companies) must prepare their annual financial statements in accordance with approved financial reporting standards. Companies that are public issuers (listed companies and those seeking investment from the public) and companies with 25 percent or more of their shares held by persons living overseas must file their financial statements with the Registrar of Companies. Exempt companies (local companies with assets not exceeding $450,000 and a turnover not exceeding $1 million) must prepare their annual financial statement in accordance with regulations made under the act and are not required to file them with the Registrar of Companies.

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: Each partner is usually under a joint liability for all partnership debts. A partnership will as a rule be dissolved by the death or retirement of a partner. Partnership interests are not usually capable of being assigned or transferred. Control and management of a partnership's affairs are (subject to the partnership agreement) vested in all partners. Lastly, a partner is ostensibly an agent for the other partners, and can commit the partnership to 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 exists to bring about awareness, acceptance of, and compliance with, the Commerce and Fair Trading Acts, so that consumers and producers benefit from healthy competition.

The Commerce Act prohibits a range of anti-competitive activities called ‘restrictive trade practices’. These apply to all individuals and commercial organisations including state-owned enterprises and government departments. Restrictive trade practices include:

  • Arrangements between competitors that substantially lessen competition in a market or reduce the competitiveness of another rival.

  • Arrangements that lead to prices being fixed among competitors.

  • A company, dominant in a market, using its position to prevent competition.

  • Suppliers fixing the prices at which their goods may be resold by other businesses.

Parties planning to be involved in business practices which may be restrictive trade practices can apply to the commission for authorisation. Authorisation will be granted if the commission is satisfied that the public will ultimately benefit from the business practice, even though there is a lessening in competition.

1997 winner of the George Malcolm Award for outstanding contribution to landscape architecture is Project Phoenix, the Mount Maunganui mainstreet project.

The act prohibits the acquisition of assets of or shares in a business if the acquisition will result in a dominant position being acquired in a market or the strengthening of a dominant position in a market.

Under the act, those acquiring assets or shares can apply to the commission for clearance or authorisation. The commission will grant a clearance if it is satisfied an acquisition will not result in the acquiring or strengthening of a dominant position in a market. It will grant an authorisation if the acquisition results in the acquiring or strengthening of a dominant position in a market but there is sufficient public benefit to outweigh the detriment to competition. If granted, clearance or authorisation exempts the business practice or acquisition from the act's prohibitions and protects the business from action by the commission and private individuals.

The act gives the Minister of Commerce the power to set price controls for goods or services. Price control may be imposed only where there is limited competition in the market for particular goods or services and control is seen as necessary or desirable in the interests of users, consumers or suppliers. The last price control, over natural gas, was lifted on 1 April 1993.

Penalties for breaching the act are up to $5 million for companies and up to $500,000 for individuals.

The aim of the Fair Trading Act is to ensure customers receive accurate information about goods and services, and to promote product safety. It prohibits people in trade from engaging in “conduct that is misleading or deceptive or is likely to mislead or deceive”. It also lists and prohibits certain types of false or misleading representations about goods and services. These include false statements that goods or services:

  • are a particular price or involve particular savings;

  • are of a particular kind, standard, quality, grade or origin;

  • are of a particular style or model;

  • are endorsed by an organisation or sponsor;

  • are supplied with particular warranties or guarantees;

  • have a particular history of use;

  • have particular uses or benefits.

The act specifically prohibits certain practices which are unfair or misleading and makes it a criminal offence to engage in any of these. They include:

  • offering free gifts or prizes when supplying goods or services if those involved do not intend awarding the gift or prize;

  • “bait" advertising, such as advertising of “specials" or “loss leaders” to attract customers into a shop, eg if the advertiser does not intend to make available the goods or services for a reasonable time and in reasonable quantities;

  • demanding or accepting payment without intending to supply goods or services ordered;

  • making misleading representations about profitability, risk or other matters affecting a business run from a home;

  • use of physical force, harassment or coercion when supplying goods or services;

  • pyramid selling schemes.

The act gives the Minister of Consumer Affairs the power to make consumer information and product safety standards mandatory.

In March 1998 consumer information standards covered: country of origin labelling of clothing and footwear; care labelling for textile goods (eg drycleaning, washing, ironing instructions); and fibre content labelling of textile goods.

In March 1998 product safety standards covered: toys for children aged up to three years; bicycles; and night clothes for children from 6 months to 14 years old.

Fines for breaching the act are up to $100,000 for a company and up to $30,000 for an individual.

The Commerce Commission, with a staff of 69 at 30 June 1997, is funded mainly by a government grant from Vote Commerce ($5,757 million in 1997 and 1996). The Commission Members, at present five, are appointed by the Governor-General on the recommendation of the Minister of Commerce.

Table 24.3. COMMERCE COMMISSION SERVICES

Year ended 30 June199519967997

1Includes written and telephone complaints and enquiries.

Source: Commerce Commission

Commerce Act enforcement
Restrictive Trade Practices investigations:
    Total complaints received9661,255976
    Investigations commenced6015055
    Investigations completed556158
Business acquisitions surveillance:
    Investigations completed8399108
Fair Trading Act enforcement:
    Complaints received1,88813,717113,220
    Investigations completed717699494
    Total enforcement actions455410245

Securities Commission. Established under the Securities Act 1978, the fundamental purpose of the commission, as a Crown entity, is to facilitate capital investment in New Zealand by: promoting the efficiency of New Zealand's securities markets; enhancing the integrity of these markets; promoting the cost-effective regulation of these markets; strengthening public and institutional confidence in these markets, both in New Zealand and overseas.

To achieve this purpose the commission directs its work to promoting:

  • Good standards of disclosure.

  • Reliable and ethical procedures for effecting transactions.

  • Sound principles for market regulation.

  • Cost-effective rules of law.

  • Flexibility in development of best regulatory practice.

  • Closer relations with overseas regulators.

  • Public understanding of the law and practices of securities.

Notable events for the Securities Commission in the year ended 30 June 1997 were the enactment of law to provide for the new investment statement and to apply securities law more generally to life insurance, superannuation and unit trusts, and of law to provide new disclosure obligations for investment advisers. The government decided to hold a national referendum on retirement savings, and commenced a review of the role and functions of the commission.

The commission itself recommended extensive changes to the Securities Regulations; commenced a review of all existing exemption notices; developed new exemptions for equity warrants, group investment index funds, retirement homes and property investment schemes: promoted new and simplified procedures for disclosure of substantial holdings in listed securities; and expanded international information sharing arrangements by concluding understandings with agencies in the United States of America, Hong Kong and Chinese Taipei.

The Securities Commission is a member of the International Organisation of Securities Commissions (IOSCO) which is headquartered in Montreal. Ninety countries belong to this organisation. Most, including New Zealand, are parties to the Rio Declaration on mutual assistance in the exchange of information about securities market oversight and protection. The commission operated with a government grant of $1.9 million in the year to 30 June 1966 (same in 1996).

Serious Fraud Office—Te Tari Hara Tāwere. The Serious Fraud Office (SFO) is a specialist, inter-disciplinary department established by the Serious Fraud Office Act 1990 to facilitate the detection, investigation and expeditious prosecution of serious or complex fraud offenders. The office had a staff of 38 at 30 June 1997, composed of forensic accountants, investigators and prosecutors, and multi-disciplinary teams are used in the investigation and prosecution of cases.

For the purposes of determining whether an offence involves serious or complex fraud, the act provides that the director 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.

During the year 151 new complaints were received (122 in 1996) and 10 cases previously considered were re-opened when new information was received. The number of cases under investigation totalled 200, of which 12 resulted in prosecutions. There were 11 successful prosecutions with total value of charges of more than $15 million (7 prosecutions, total value of charges about $62 million, in 1996). In the year to June 1997 the office received government funding of $4,562 million ($4,888 million in 1996 including an additional $700,000 required by the SFO in responding to the “wine box” Commission of Inquiry).

Statutory powers: The SFO's powers are the most extensive to have been legislated for in the area of criminal investigations in New Zealand. Briefly, they require any person whose affairs are being investigated, or any other person whom the director has reason to believe may have relevant information or documents, to attend before him to answer questions and produce such documents for inspection. In the year to 30 June 1997. 732 notices were issued under these powers (626 in 1996), and 29 search warrants executed (21).

New legislation: An amendment in 1996 to the Crimes Act 1991 criminalised money laundering. The Financial Transactions Reporting Act 1996 facilitates the prevention, detection, investigation and prosecution of money laundering, and the enforcement of the Proceeds of Crime Act. Financial institutions are required to report suspicious financial transactions, and persons entering or leaving New Zealand required to declare cash in excess of a prescribed amount.

Opening ceremony for Project Pounamu, revitalising the Turangi mall (Designers: Isthmus Group Ltd and Rewi Thompson).

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 Rules 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 annual fees and charges paid by exchange members; levies paid by listed companies; and charges for information supplied.

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.

SHARE PRICE INDEX
Gross index

There were 146 New Zealand companies and 79 overseas companies listed with the exchange at 31 December 1997.

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. The elimination of transfer documents (certificates and transfer forms) is scheduled for implementation in 1998. The new arrangement, together with the introduction of simultaneous, final and irrevocable delivery versus payment in February 1997, will significantly reduce the time to settle. Currently, trades settle on an average of 2-4 days with a fixed period of 5 days for trades over NZ$100,000. The exchange introduced its code of practice requirements for the conduct and practice of individual members and member firms of the New Zealand Stock Exchange during 1996.

Market surveillance panel. The panel was established by the New Zealand Stock Exchange to administer and enforce the new Listing Rules implemented in September 1994. The panel's main function is to administer and enforce the rules and conduct investigations. Four investigations were undertaken during the year ended June 1995. The rules provide for the behaviour of listed companies on the exchange, in particular in relation to takeovers, issues of securities, disclosure of relevant information and providing for minority shareholder voting in specific instances such as acquisitions and dispositions of assets.

There has been full acceptance of the panel by companies and investors alike. This has reinforced the view that self-regulatory measures can operate to the overall benefit of market participants.

Under the Companies Act 1993 securities laws are under general review and a formal reporting regime has been announced, including the establishment of an Accounting Standard Review Board. There are new provisions for share buy-backs and takeovers. The exchange has provided a new takeover code in its listing rules to meet a market need for appropriate rules for the conduct of transactions which have the potential to change the control of the listed company. The exchange's code has all the necessary provisions for shareholders' protection; notice periods, requirements for disclosure, restrictions on defensive tactics, and provisions for compulsory acquisitions. The code provides a choice for shareholders of companies to incorporate into their constitutions the method by which changes in major shareholdings are conducted.

Insolvency

Bankruptcy. The term bankruptcy refers to the financial insolvency of individuals. The law relating to bankruptcy in New Zealand is contained predominantly 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.

Table 24.4. PERSONAL BANKRUPTCIES

Year ended 30 Junenumber

1Year ended 31 March.

Source: Ministry of Commerce

19801530
19851849
19901,900
19912,052
19922,837
19932,532
19942,312
19951,963
19962,158
19972,464

Upon application 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 adjudicated bankrupt is automatically discharged three years after adjudication, in the absence of any earlier application by the bankrupt or an objection lodged by the assignee or a creditor with the court. Where an objection to discharge is lodged, the court determines whether a discharge should be granted.

BANKRUPTCIES
Rate per 100,000 population

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.

The general bankruptcy statistics do not cover assignments and compositions, but relate only to cases dealt with by official assignees.

The Official Assignee's role under the Proceeds of Crime Act 1991 is described in chapter 10.

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 commonly 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 24.5. COMPANY INSOLVENCIES

Year ended 30 JuneCompanies
placed
under receivership
Company liquidations
Court orderVoluntary

Source: Ministry of Commerce

19907771,0334,406
19916901,0311,356
19925751,0521,182
1993286991943
19942228881,367
19952197391,593
19961747601,691
19972407271,611

24.3 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 Insurance Companies' (Ratings and Inspections) Act, which came into force in November 1994, requires fire and general insurance companies (not life insurance) to obtain, register and disclose a claims paying ability rating. (The requirement also applies to non-life business, such as disability products, of life insurance companies.) Whilst some insurers not providing property or disaster insurance can apply for an exemption, the legislation effectively introduces a form of market regulation that allows consumers to judge the financial strength of their insurers, which they have not been able to do before. The other 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.

Diversification in the finance sector.

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 $50.9 million in June 1997 ($49.5 million in 1996); and $24.5 million in June 1997 under the Life Insurance Act 1908 ($23.0 million in 1996).

Statutory reporting is required under 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 Ministry of Commerce. 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 and general insurance industries are also required to comply with all consumer protection legislation such as the Fair Trading Act 1986 and the Consumer Guarantees Act 1993.

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 1993 and comply with New Zealand company law in the same manner as other business enterprises.

The current 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 1995 the complaints procedure and review authority under the Code of Business Practices was replaced by the independent disputes mechanism provided by the Insurance and Savings Ombudsman service. This is in addition to the Fair Insurance Code and minimum solvency levels. Following the report of the Government Working Group on Improved Product and Investment Adviser Disclosure, the Investment Savings and Insurance Association (which includes insurance companies providing financial services) has issued standards for point of sale disclosure.

Insurance intermediaries. The Insurance Intermediaries Act 1994 establishes insurance brokers client accounts, limitations on how premiums received by brokers may be used and 50 days terms of credit. 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 moved away from a tied agency system with individual agents contracted to a particular life insurance company; multiple agency agreements with different companies are now common.

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 8.5, Accidents.

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 was undertaken several years ago.

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 8.6, 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.

National disaster insurance. 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 by natural disaster or war. The act was 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 (exclusive of GST) to property owners who have purchased fire insurance. Perils covered are earthquake, natural landslip, volcanic eruption, hydro-thermal activity and tsunami; cover is also provided for residential land in the case of storm or flood; and all properties are covered in the event of fire occasioned by or through any insured peril. The land cover provided is additional to the $100,000. War damage has been removed as an insured peril. The EQC has phased out cover for non-residential property and no longer provides any non-residential disaster property insurance. Premiums, for residential property, 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 a body corporate with perpetual succession, a common seal and capital of $1.5 billion. 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. The Earthquake Commission's Internet address is www.eqc.govt.nz.

Claims for the year ended 30 June 1997, totalled 974 earthquake and volcanic activity claims ($4,907,000), and 702 landslip claims ($2,289,000).

The EQC premium income (net of reinsurance) for the year to 30 June 1997 was $19,069 million, and reinsurance premium was $50,214 million.

The insurance industry

The life insurance industry in New Zealand has major importance as an investor and savings vehicle. The life insurance market is dominated by three large mutual societies (AMP, National Mutual and Colonial Mutual), New Zealand Insurance Life, Tower Retirement Investment and Prudential which between them write about 75 percent of the country's life insurance/superannuation business, measured by annual premium income in force. Statistics New Zealand's Annual Business Directory update recorded 38 life insurance enterprises as at February 1997.

The non-life insurance market is divided amongst 128 enterprises which have made deposits under the Insurance Companies' Deposits Act 1953, including life companies doing non-life business 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 ability to spread risk through the international reinsurance markets has allowed New Zealand insurers to absorb large increases in business flowing from the government's decision to remove the EQC from non-residential disaster insurance.

Statistics New Zealand's Annual Business Directory update recorded 82 health and 79 general insurance enterprises operating in New Zealand as at February 1997 (102 and 80 respectively in 1996). The New Zealand premium pool is divided approximately: 20 percent commercial fire business, 23 percent domestic fire, 36 percent motor, 8 percent general accident, 2 percent marine hull and 1 percent marine cargo. The premium pool as at 30 June 1996 was in excess of $1.45 billion for fire and general.

The Annual Business Directory update recorded 9,809 full-time equivalent persons engaged within the insurance industry as at February 1997.

The EQC premium income (net of reinsurance) for the year to 30 June 1995 was $23,055 million, down from $53,076 million in 1994. The non-life premium pool was $1,800 million not including the EQC premium or ACC levies.

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 a decrease 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 increase to compensate for the reduced government commitment to the provision of New Zealand superannuation. The appointment of a Retirement Commissioner will give a boost to public education on the need for New Zealanders to save for their own retirement (see section 7.1, Income support).

Loss prevention

The Accident Rehabilitation and Compensation Insurance Corporation (ACC) has the statutory duty to promote occupational safety and accident prevention, and this activity has had some indirect benefit to the insurance industry.

The Insurance Council of New Zealand along with the Fire Service Commission, is active in fire prevention and fire safety education. Most other activity in the field of loss prevention and accident prevention is undertaken by 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 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 Investment Savings and Insurance 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, state-owned enterprises, 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.

Winner of the Mercury Energy Efficiency Award and the IES Lighting Awards 1997, this shopping mall in Henderson, Auckland conserves energy with excellent use of natural daylight.

Government Superannuation Fund. The Government Superannuation Fund (GSF) 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 GSF was administered by a board comprising 15 members, with the Minister of Finance as statutory chairperson and representatives from various state departments and agencies.

Following passage of the Government Superannuation Fund Amendment Act 1995, from 1 October 1995 the administration was vested in the Superintendent of the fund. The Minister of Finance appointed the National Mutual Corporate Superannuation Services Ltd as manager of the schemes, for a term of seven years, from 1 March 1996. On 26 March 1997 the Minister of Finance appointed the Government Superannuation Fund Department as manager and custodian of the fund, which is the largest fund in all asset classes in New Zealand.

As at 30 June 1997 there were 39,684 contributors to the GSF and they paid $112.24 million into it during the year ending 30 June 1997. At the same time there were 45,779 beneficiaries who received $751.9 million during the period.

Total assets at 30 June 1996, amounting to $3,348.2 million, included investments in government stock of $1,704.90 million and $8,452 million in members' mortgages. The average effective interest earning rate before tax of the fund was 11.21 percent for the year.

Table 24.6. GOVERNMENT SUPERANNUATION FUND ALLOWANCES, AT 30 JUNE 1997

Qualification for allowanceNumber

Source: Government Superannuation Fund

Retired for age, length of service or medically unfit33,426
Spouses and dependents12,353
            Total allowances45,779

Table 24.7. CONTRIBUTORS TO GOVERNMENT SUPERANNUATION FUND

Branch of serviceAt 30 June 1997Percentage of total

1Includes state-owned enterprises which were formerly part of the Public Service.

Source: Government Superannuation Fund

Armed services4,95512.49
Judges1100.28
Parliamentarians490.12
Police4,03410.17
Prison officers3860.97
Public Service130,15075.97
            Total39,684100.00

Table 24.8. GOVERNMENT SUPERANNUATION FUND: SUMMARY

Year ended 30 JuneNumber of contributorsAnnual contributionsIncome from investmentsSubsidy from government trading departments and othersAnnual value of allowances1Accumulated fund at 30 June

1 Tax exempt

Source: Government Superannuation Fund

 $(000)
199357,925196,388422,703536,545580,5663,031,503
199452,554148,983149,116435,316479,0663,076,876
199548,741134,537248,408455,370587,3983,169,899
199644,458127,231129,773542,619690,5423,143,609
199739,684112,243426,406520,158644,8663,348,195

National Provident Fund. National Provident Fund (NPF) is New Zealand's largest superannuation fund and provides superannuation schemes for both employer/employee groups and 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 trust deed. These schemes were closed to new members on 1 April 1991. The board of trustees of the NPF, which is appointed by the Minister of Finance, is the trustee for each scheme.

The act also required that the board determine the most appropriate future management arrangements for NPF 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. Twelve 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 New Zealand Limited, administers the schemes. A small executive office has been maintained to assist the board with monitoring the management arrangements and to ensure that they are operating effectively and to the benefit of members.

The changeover in management arrangements has not changed NPF members' rights and benefits. Existing scheme members may remain in their schemes, and the payment of benefits by the schemes continues to be guaranteed by the Crown.

In 1993, an amendment to the National Provident Fund Restructuring Act led to a number of new provisions being incorporated into NPF schemes. Under these provisions, members may transfer from their NPF scheme to another registered superannuation scheme, including certain other NPF schemes.

Because each of the National Provident Fund schemes is now reported on separately, a financial summary of the aggregated fund is no longer applicable.

Table 24.9. INSURANCE1: STATISTICAL SUMMARY

Statistical item1994/951995/96

1ANZSIC Subdivision K74 excludes class K7412. Superannuation Funds.

2C = suppressed for reasons of respondent confidentiality

Source: Annual Enterprise Survey 1995-96, Statistics New Zealand

 $(million)
Sales of goods and services3,838.13,676.3
Interest, dividends, donations, royalties, patent fees, insurance claims received and bad debts recovered729.1790.1
Government grants and subsidies..C2..C
Other income including extraordinaries..C..C
Total income5,267.05,335.5
            Total income adjusted for stocks5,267.05,335.5
Salaries and wages paid to employees303.0321.7
Redundancy and severance5.23.5
Salaries and wages to self employed commission agents193.9200.6
Salaries and wages to working proprietors (SW to WPs)0.80.4
Levies paid to Accident Compensation Corporation3.13.6
Employer contributions to superannuation schemes20.220.3
Fringe benefit tax9.110.6
Purchases and other operating expenses3,656.73,668.1
Interest, donations, grants, royalties, patent fees paid and bad debts written off18.314.2
Indirect taxes (excluding Fringe Benefit Tax)..C..C
Depreciation44.853.6
Other expenses including extraordinaries..C..C
            Total expenditure4,933.04,581.0
Net profit before tax, extraordinaries, SW to WPs310.7..C
Net profit before tax, SW to WPs334.8754.9
Purchases of plant, machinery, vehicles and equipment60.242.7
Purchases of land and land improvements0.40.8
Purchases of buildings and other construction11.43.8
Total purchases of fixed tangible assets72.047.3
Sales of fixed tangible assets60.153.2
Shareholders funds or owners equity12,180.212,871.8
Current liabilities2,220.32,148.0
Other liabilities452.6720.3
Total capital and liabilities14,853.115,740.1
Fixed tangible assets448.7453.3
Current assets2,458.82,603.9
Other assets11,945.512,682.9
            Total assets14,853.115,740.1
Ratios$575,996$575,875
Total income per FTE$33,983..C
Net profit per FTE110.7%121.2%
Current ratio..C..C
Profit margin on sales8.1%..C
Return on equity2.6%..C
Return on total assets2.1%..C
Liabilities structure82.0%81.8%

For more information refer to Business Activity Statistics 1996.

Insurance industry statistics

The Annual Enterprise Survey covers the activities of all businesses classified in Division K of the Australian and New Zealand Standard Industrial Classification (ANZSIC), with the exception of Superannuation Funds. The data in table 24.9 is different from that published in the 1997 Yearbook which was published according to the New Zealand Standard Industrial Classification (NZSIC). Information is also available from the 1995-96 Census of Finance and Insurance, which provides updated information from the Economy Wide Census 1986/87.

Life insurance. Units mainly engaged in providing life insurance, life re-insurance and other life insurance including mortgage repayment insurance.

Health insurance. Units mainly engaged in providing insurance cover for hospital, medical, dental, pharmaceutical or funeral expenses or costs. This includes units operating employee benefit funds, welfare societies and friendly society funds not elsewhere classified.

General insurance. Units mainly engaged in providing fire insurance cover for commercial and domestic purposes and motor vehicle, marine, aviation and other accidental insurance.

Otorohanga main street hanging baskets being tended by local garden centre owner, February 1997.

24.4 Retail trade and services

Retailing embraces retail businesses, hotels and restaurants, and businesses providing household and personal services. Retail trade is one of the most important indicators of economic activity, as it constitutes a large proportion of personal expenditure on consumer goods and services.

Retail trade survey

The Statistics New Zealand retail trade survey collects data monthly on the sales of goods and services. Each quarter, the value of stocks held as at the last day of the quarter is also obtained. The sample of businesses surveyed is drawn from Statistics New Zealand's Business Frame, a comprehensive and up-to-date list of all New Zealand's economically significant enterprises businesses those with income greater than $30,000 or with more than two full-time employees.

To ensure that changes in the economy are reflected in the sample, the survey is regularly redesigned. Such a redesign occurred in May 1995. The redesign included changing to the Australian and New Zealand Standard Industrial Classification (ANZSIC) rather than the previous New Zealand Standard Industrial Classification (NZSIC). This has meant changes in the population and storetype definitions. The redesign also included improvements in the coverage of the Business Frame.

Retail sales trends

The major movements in the retail sector in the year ended March 1997 were:

  • Total actual retail sales increased by 1.9 percent to $38,543.7 million compared with $37,834.4 million in the year ended March 1996.

  • The most significant increases were recorded by hardware stores, up 10.6 percent; recreational goods outlets, up 9.1 percent; and cafes, restaurants and takeaway outlets, up 7.4 percent.

  • The largest decreases for the year ended March 1997 were recorded by footwear stores, which decreased by 9.0 percent; motor vehicle retailing outlets, down 4.5 percent; and clothing and softgoods outlets, down 4.0 percent.

Table 24.10 shows annual sales for the retail trade storetypes.

Table 24.10. ANNUAL RETAIL SALES BY STORETYPE

StoretypeActual retail sales—March year
19931994199519961997
Source: Statistics New Zealand
 $(million)
Food retailing7,143.47,305.97,757.87,877.88,253.4
Footwear249.3255.2252.9246.2224.1
Clothing and softgoods1,408.81,434.91,479.81,441.11,383.8
Furniture and floorcoverings721.7861.4997.2957.41,000.5
Appliance retailing1,030.01,202.01,347.81,367.91,324.9
Hardware696.7734.0768.2732.4810.2
Chemist926.9963.1996.71,072.61,103.0
Department1,453.41,725.71,835.41,838.71,869.6
Recreational goods1,047.31,153.81,346.21,414.01,542.5
Accommodation, hotels and liquor2,905.53,022.03,320.13,372.23,487.1
Cafes, restaurants and takeaways1,550.41,698.41,940.22,247.22,413.6
Personal and household services717.5816.5930.7963.91,019.7
Other stores1,955.92,033.22,097.82,092.02,012.3
          Subtotal21,802.023,206.125,071.225,623.326,444.6
Motor vehicle retailing5,337.95,953.76,662.87,196.46,871.7
Motor vehicle services4,195.04,395.74,653.95,014.65,227.4
          All stores—total31,334.933,555.536,387.937,834.438,543.7
Per head of population9,074.79,607.810,275.710,515.710,539.4

Regional sales

All of the six regions recorded increases in sales for the year ended March 1997 when compared to the March 1996 year. The strongest growth was recorded by the South Island excluding Canterbury, which increased by 3.9 percent, or $157.7 million. The main contributors to the increase in sales for this region were motor vehicle services, accommodation, hotels and liquor outlets, and furniture and floorcoverings stores. Sales in the North Island excluding Auckland, Waikato and Wellington increased 2.6 percent, and sales in the Wellington Regional Council area were up 2.4 percent. Table 24.11 shows the annual retail sales in the regional councils.

Table 24.11. ANNUAL SALES BY GEOGRAPHICAL REGION1

 North IslandSouth IslandTotal New Zealand
Auckland Regional CouncilWaikato Regional CouncilWellington Regional CouncilRemainder of North IslandTotal North IslandCanterbury Regional CouncilRemainder of South IslandTotal South Island

1Comparisons of retail trade regional sales should be made with caution, as shoppers from outside their regional areas also patronise the main city stores and make use of mail order services. Figures are exclusive of GST. March year.

Source: Statistics New Zealand

$(million)
19939,482.33,047.63,811.57,073.423,414.84,053.73,866.37,919.931,334.9
199410,429.73,276.03,858.47,529.325,093.54,437.14,024.98,462.033,555.5
199511,710.03,495.24,264.37,901.727,371.14,825.24,191.59,016.736,387.9
199612,604.03,596.54,485.78,153.828,840.04,913.84,080.68,994.437,834.4
199712,807.33,600.14,591.48,361.829,360.54,944.84,238.39,183.238,543.7

Seasonal adjustment

Any series has three components; trend, seasonal and irregular. To allow direct comparison between figures from different periods, seasonality and irregularity can be removed.

Seasonal adjustment aims to eliminate the impact of regular seasonal events, for example, climatic effects, (eg ice-cream sales fall in winter) or calendar effects (eg retail sales increase at Christmas). These seasonal effects occur every year and can easily mask the often smaller effects of underlying economic trends.

The trend series also has the irregular elements removed. An example of an irregular event would be an increase in the rate of GST. Trend estimates reveal the underlying direction of the movement in retail sales and are likely to indicate turning points more accurately than seasonally adjusted or actual series.

The impact of inflation can also be removed. Price indexes have been prepared to deflate retail sales figures. The principal source of the prices used in these indexes is the Consumers Price Index. The prices have been appropriately weighted and the whole index expressed in March quarter 1995 prices. This gives a series in constant March 1995 dollars that shows the real change in the volume of retail sales.

Table 24.12 summarises the actual, seasonally adjusted and constant price series for quarterly retail sales and sales per head of population.

Table 24.12. RETAIL SALES SUMMARY BY QUARTER1

 Total retail salesRetail sales per head of populationTotal value of retail stocks
ActualSeasonally adjustedSeasonally adjusted at March 1995 quarter pricesTrendActualSeasonally adjustedSeasonally adjusted at March 1995 quarter pricesActual

1All previously published figures are subject to revision when the seasonal adjustment program is run each period. Figures are exclusive of GST.

Source: Statistics New Zealand

$(million)
1995 Mar9,013.99,262.7R9,262.7R9,272.0R2,513.4R2,582.7R2,582.7R3,407.2R
        Jun9,070.99,325.4R9,297.3R9,320.3R2,541.7R2,613.0R2,605.1R3,405.7R
        Sep9,119.29,378.4R9,372.7R9,385.2R2,561.3R2,634.1R2,632.5R3,427.1R
        Dec10,145.69,394.4R9,346.6R9,531.0R2,809.5R2,601.5R2,588.2R3,625.4R
1996 Mar9,498.89,755.1R9,684.0R9,673.8R2,603.3R2,673.5R2,654.0R3,649.5R
        Jun9,442.29,686.8R9,576.8R9,708.9R2,607.0R2,674.6R2,644.2R3,665.8R
        Sep9,389.29,668.7R9,558.6R9,673.4R2,598.7R2,676.1R2,645.6R3,621.3R
        Dec10,405.09,631.6R9,516.5R9,618.7R2,830.4R2,620.0R2,588.7R3,653.8R
1997 Mar9,307.39,552.69,459.2R9,595.5R2,503.32,569.22,544.13,552.6R

RETAIL TRADE
Total sales

Internet shopping—what you see on your screen.

Table 24.13. RETAIL STOCKS BY STORETYPE1

StoretypeRetail stocks at 31 March
19931994199519961997

1Figures are exclusive of GST.

Source: Statistics New Zealand

 $(million)
Food retailing270.1293.2294.6307.1294.0
Footwear72.672.073.470.260.8
Clothing and softgoods287.0292.0309.6309.1296.7
Furniture and floorcoverings116.6133.3135.5134.1143.9
Appliance retailing169.4186.2194.5200.0195.2
Hardware160.3151.8157.8174.6160.3
Chemist109.7110.5120.1124.4126.6
Department337.7333.2349.1385.5354.1
Recreational goods213.6227.0284.9290.0313.4
Accommodation, hotels and liquor123.4123.8124.9130.9133.5
Cafes, restaurants and takeaways32.836.036.040.041.8
Personal and household services25.727.630.333.927.5
Other stores324.8325.0317.0337.2319.8
        Subtotal2,243.82,311.52,427.72,536.92,467.6
Motor vehicle retailing693.7754.3810.2912.2892.5
Motor vehicle services155.5159.1169.3200.5192.5
        All stores—total3,093.03,224.93,407.23,649.53,552.6

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.

Table 24.14. VALUE OF CREDIT CARD SALES

Calendar yearTotal advances outstanding at 31 DecemberBillings
NZ cardholders spending in New ZealandNZ cardholders spending overseasTotal1

1From 1993, total includes unallocated spending.

Source: Reserve Bank Bulletin

 $(million)
1988790.12,575.4-2,575.4
1989881.92,809.9-2,809.9
1990951.13,160.1-3,160.1
19911,027.83,446.5294.33,740.8
19921,055.73,780.2311.34,091.5
19931,129.23,118.9598.54,124.2
19941,289.53,682.9707.54,743.1
19951,481.74,063.1 R883.55,313.2R
19961,726.44,764.21,055.16,173.5
19971,897.75,269.21,228.46,901.7

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. Credit cards were first introduced in New Zealand in 1981. The use of credit cards for purchases has been steadily increasing, to reach the highest level so far recorded in the year ending December 1997.

Table 24.14 gives the annual value of sales by credit cards issued by registered banks, American Express and Diners Club.

CREDIT CARD USE
Total advances outstanding

Contributors

  • 24.1 Ministry of Commerce; Ministry of Consumer Affairs; Consumers' Institute; Department of Labour; Ministry of Justice.

  • 24.2 Ministry of Justice; Ministry of Commerce; Commerce Commission; Securities Commission; New Zealand Stock Exchange; Statistics New Zealand.

  • 24.3 Insurance Council of New Zealand; Treasury; National Provident Fund; Statistics New Zealand.

  • 24.4 Statistics New Zealand.

Special articles

Ministry of Consumer Affairs; Ministry of Commerce; Commerce Commission; Serious Fraud Office; Insurance and Savings Ombudsman.

Further information

Business Activity 1997. Statistics New Zealand.

Controls on trading

Fair Trading Act—A guide for advertisers and traders. (40p). Commerce Commission.

Report of the Department of Labour (Parl paper G.1).

Report of the Ministry of Commerce (Parl paper G.46).

Report of the Licensing Control Commission (Parl paper E.8).

Commercial framework

Current Issues in New Zealand Competition and Consumer Law. Commerce Commission (series).

Report of the Commerce Commission (Parl paper G.34).

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

Report of the Securities Commission (Parl paper E.25).

Report of the Law Commission (Parl paper E.31 f).

Report of the Serious Fraud Office (Parl paper E.40).

Insurance and superannuation

1995-96 Census of Finance and Insurance. Statistics New Zealand.

Report of the Earthquake and War Damage Commission (Parl paper B.11).

Report of the Government Superannuation Board (Parl paper B.20).

Annual Report of the Board of Trustees of the National Provident Fund.

Annual Report of the Insurance Council of New Zealand Inc.

Insurance and Savings Ombudsman Annual Report.

Retail 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.

Chapter 25. Overseas trade

Looking like a giant potato masher, this stainless steel clarifier is part of a wastewater plant made in Invercargill and destined for the United States.

25.1 Development and administration of trade

New Zealand Trade Development Board

The New Zealand Trade Development Board (Trade NZ, formerly Tradenz) was established in 1988 to foster the development and expansion of New Zealand's foreign exchange earnings.

Although largely government funded, Trade NZ has a board of directors with a predominantly private sector background. The board's role is to guide the allocation of resources invested by the government for the development of New Zealand's foreign exchange earnings. Funding (from Vote Ministry of Foreign Affairs and Trade) was $49.3 million for the year to 30 June 1997 ($49.9 million in 1996), and there was contract income of about $2 million (same). Working through an integrated global network, with offices in nine New Zealand cities and representation in almost 60 key export locations around the world, Trade NZ:

  • Builds New Zealand's commitment to exporting and encourages more companies to enter exporting.

  • Assists companies in market selection decisions, then assists them to enter chosen markets.

  • Assists existing exporters to further their international business including, where appropriate, moving beyond direct exporting into business alliances such as joint ventures.

  • Promotes opportunities for exporters to work in groups where such arrangements benefit each company.

  • Supports initiatives to improve the capability and competitiveness of New Zealand companies, including improving investment flows from domestic or foreign sources.

Services in New Zealand. Trade NZ's nine New Zealand offices are in Auckland, Hamilton, Tauranga, Napier, Palmerston North, Wellington, Nelson, Christchurch and Dunedin.

Operational staff deliver a broad range of services to export companies, or companies preparing to export. The core service is working with individual companies of all sizes through thorough and comprehensive planning and market research. Other services include facilitating networking opportunities with other exporters; referrals to sources of finance and potential investors; organising company participation in offshore missions and trade fairs; and educational seminars.

Trade NZ works with companies as groups as well as with individual exporters. Companies can often achieve better and more cost-effective export results through a collective effort on specific projects. This is particularly so for small- to medium-sized companies. To promote the concept of “co-operating to compete” Trade NZ mainly uses Joint Action Groups (JAGs) and Hard Business Networks (HBNs).

Joint Action Groups are used by Trade NZ to forge close working relationships between companies within specific export sectors. At 30 June 1997 38 JAGs were active. Participants in a JAG are committed to enhancing their individual export endeavours through joint strategic planning and a programme of market activities.

Hard Business Networks enable small groups of firms to compete as a larger business by undertaking common projects such as joint export marketing, processing, manufacturing and R&D. The development of HBNs is facilitated by independent brokers.

Services overseas. With representatives in almost 60 key export locations around the world, Trade NZ staff have in-depth local market knowledge. They can: provide market intelligence; recommend appropriate marketing strategies; identify contacts such as importers, distributors and retailers; investigate competing products and services; monitor markets; undertake market research; determine tariffs, taxes, labelling requirements and products standards; arrange visit programmes and interpreters; and support promotional and seminar work.

In the year to June 1997, 167 companies participated in 15 trade fairs and promotions at Trade NZ's initiative (358 in 32 in 1996).

Trade NZ, together with the New Zealand Tourism Board, is responsible for developing and implementing the New Zealand Way Brand campaign. Supported by New Zealand's leading exporters and tourism operators, this long-term campaign is designed to help achieved a premium positioning for New Zealand and its products and services overseas.

Internet Home Page. The Trade NZ website (address http://www.tradenz.govt.nz/) includes help for new exporters, market intelligence reports, country profiles and statistics, the latest media releases from Trade NZ, calendar of export events, and links to export resources.

Customs and excise

The New Zealand tariff is based on the international Harmonized Commodity Description and Coding System (Harmonised System). The advantages of the Harmonised System include its widespread use by other countries, among them many of New Zealand's major trading partners, its convenience for statistical purposes, and greater efficiency in administering duties at the border. An update of the international Harmonised System was implemented in 1996.

The tariff system 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 commodity that might be imported or exported. The structure of the list breaks commodities down into broad categories, which are then further refined into very specific, detailed classification of goods. Against each item the tariff indicates the appropriate duty payable on imported goods 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 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 22.5 percent. There is limited use of specific duties in the tariff. The trend of policy is in favour of ad valorem duties. Items whose manufacture is outside the scope of local industry are normally duty free.

The following extract from the tariff gives an example of an ad valorem duty:

The left hand columns give identification and statistical codes for the category and sub-category 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, cooked and preserved cherries, the standard duty is 6.5 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. There is a preferential duty of 5 percent and phasing 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.

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 28, Public sector finance, for information on customs and excise revenue.

All goods imported into New Zealand are liable for goods and services tax (GST). The tax is normally payable to the New Zealand Customs Service at the time of importation. The GST rate effective from 1 July 1989 is 12.5 percent.

Border operations

The New Zealand Customs Service border operations provide protection at the border by managing the import and export of goods and the movement of international passengers, aircraft and vessels in accord with customs, immigration, quarantine and other statutory requirements.

Customs seeks to ensure a safe and secure border within minimum intervention to legitimate trade and travel. To achieve this the Service employs risk management techniques to monitor and assess the risk of arriving and departing persons, craft and goods.

Border operations involve three main activities:

  • Checking and clearance of passengers and craft and airports and sea ports;

  • Surveillance and search for prohibited items;

  • Investigation of Customs offences and related items.

Underpinning these programmes is the collection and processing of intelligence on potential breaches of legislation the Customs Service enforces.

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 based on entries lodged with the New Zealand Customs Service by exporters and importers.

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 and 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 import values quoted in this chapter are the cif values.

Table 25.1. OVERSEAS MERCHANDISE TRADE

Year ended JuneExports1 (fob)Imports (cif)Balance of merchandise trade

1 Includes re-exports.

Source: Statistics New Zealand

 $(million)
198712,107.211,800.2307.0
198812,451.511,606.5845.0
198914,905.412,491.42,413.9
199015,163.515,770.5−607.0
199115,768.415,325.1443.3
199217,840.315,483.42,356.9
199318,971.217,332.81,638.5
199419,837.118,468.91,358.2
199520,790.4R21,260.9−470.5R
199620,545.7R21,352.5−806.7R
199721,033.221,323.6−290.4

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 total import value from the total export value for the same period. An excess of exports over imports is a ‘surplus’ normally indicated by a positive number. Conversely, a ‘deficit’ occurs when imports exceed exports and is normally indicated by a negative sign, or parentheses around the value.

In the June 1997 year, New Zealand had a balance of merchandise trade deficit of $290.4 million, compared to the $806.7 million deficit for 1996.

OVERSEAS MERCHANDISE TRADE

A huge barge slides down the Buller river with its first load of export coal, November 1997.

MAJOR COMMODITIES
Exports 1997

FLOWER EXPORTS
By variety

25.2 Exports

Exports are valued at fob (free on board) which represents the transaction price of goods and includes costs incurred in delivering the goods on board ships and aircraft at New Zealand ports of export. In this chapter the export values include re-exports which are goods imported into New Zealand and then exported later without being significantly altered. Typical re-exports are aircrafts and heavy machinery.

Exports in the June 1997 year totalled $21,033.2 million, 2.4 percent higher than the June 1996 year total of $20,545.7 million. New Zealand's two major export commodities, dairy produce and meat and edible offal, rose 15.4 percent and 2.8 percent respectively. Increases in mineral fuels, mineral oils and products of their distillation (up 48.6 percent), animal originated products (up 8.2 percent), mechanical machinery (up 3.0 percent), electrical machinery (up 4.1 percent) were offset by decreases in pulp of wood or other fibrous materials (down 25.2 percent), paper and paperboard (down 21.8 percent), fish and crustaceans (down 10.5 percent) and raw hides and skins (down 9.0 percent). Exports of aluminium and articles fell fractionally (down 0.7 percent).

Table 25.2. MAJOR COMMODITIES EXPORTED1

CommodityValue of exports2 (fob)Percentage of total exports2 (fob)
199219961997199219961997

1Year ended June.

2Includes re-exports.

Source: Statistics New Zealand

Note: Casein and caseinates are included above under the chapter for albuminoidal substances, but are shown separately in Table 25.3 and included in Table 25.4.

 $(million) 
Dairy produce; birds' eggs; natural honey; edible products of animal origin, nei2,377.32,998.13,528.613.314.616.8
Meat and edible meat offal3,002.22,655.32,730.416.812.913
Wood and articles of wood; wood charcoal976.71,531.41,565.65.57.57.4
Wool, fine or coarse animal hair; horsehair yarn and woven fabric1,179.91,115.61,042.76.65.45.0
Fish and crustaceans, molluscs and other aquatic invertebrates1,077.71,147.41,026.96.05.64.9
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof550.7855.2881.03.14.24.2
Aluminium and articles thereof695.1817.3811.53.94.03.9
Fruit and nuts, edible; peel of citrus fruit or melons554.6818.5R778.74.84.03.7
Albuminoidal substances; modified starches; glues; enzymes509.3649.6672.12.93.23.2
Raw hides and skins (other than furskins) and leather554.7728.8663.23.13.53.2
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, parts and accessories of such articles314.2532.3554.21.82.62.6
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes501.3371.4R552.02.81.82.6
Organic chemicals150.6273.8432.30.81.32.1
Paper and paperboard; articles of paper pulp, of paper or paperboard429.1528.0412.72.42.62.0
Pulp of wood or other fibrous cellulosic material, waste and scrap of paper or paperboard385.9477.1356.72.22.31.7
Animal originated products; nei285.5273.6296.01.61.31.4
Works of art; collectors' pieces and antiques312.3282.0274.01.81.41.3
Plastics and articles thereof169.9272.8272.11.01.31.3
Vegetables and certain roots and tubers; edible262.3290.3271.71.51.41.3
Iron and Steel314.6271.3271.01.81.31.3
Other nei2,936.53,655.93,639.716.517.817.3
            Total exports17,840.320,545.7R21,033.2100.0100.0100.0

Dairy produce

Exports of dairy produce amounted to $4,084.8 million in the June 1997 year, an increase of 15.4 percent over the previous June year. Dairy produce was the main export commodity in the June 1997 year with a contribution of 19.4 percent of the total export value.

Exports of milk powder, cheese, butter and associated dairy products in the June 1997 year were worth $3,515.4 million, an increase of 17.9 percent from the $2,982.2 million exported in the June 1996 year. Exports of casein and caseinates were worth $569.4 million in the June 1997 year, an increase of 2.2 percent from the $557.2 million exported in the June 1996 year.

The main dairy products exported in the June year 1997 were milk powder, cheese and butter with values of $1,671.7 million, $802.8 million and $751.9 million, respectively.

New Zealand milk powder, cheese, butter and associated dairy products are sold all over the world to a vast range of countries. The top export markets are the United Kingdom ($378.2 million), Russia ($259.1 million), Japan ($245.3 million) and Malaysia ($254.1 million). Other destinations included the Philippines ($176.8 million), Taiwan, Province of China ($162.8 million), the United States of America ($137.9 million) and Belgium ($130.9 million).

Table 25.3. DAIRY PRODUCE EXPORTS1,2

Product199219961997

1 Year ended June.

2 Includes re-exports.

Source: Statistics New Zealand

 $(million)
Milk powder, milk, cream1,182.51,408.21,654.8
Buttermilk products, yoghurt63.672.783.2
Whey and other products10.423.521.5
Butter, dairy spreads701.6860.4917.5
Cheese and curd412.1617.4838.4
Casein and caseinates443.8557.2569.4
            Total dairy produce exports2,814.03,539.34,084.8
Percentage contribution to total exports15.817.219.4

Table 25.4. DESTINATION OF DAIRY PRODUCE EXPORTS1,2

Country199219961997

1Year ended June.

2Includes re-exports.

3The figure for the year ended June 1992 is for the USSR.

Source: Statistics New Zealand

 $(million)
United States of America288.8309.8400.6
United Kingdom376.7387.8391.5
Japan286.9337.4345.6
Russia358.9145.2259.1
Malaysia203.7242.8255.4
Philippines101.1108.2180.8
Taiwan, Province of China101.2144.8165.4
Mexico155.8132.0140.7
Australia87.0140.4137.1
Belgium31.544.9130.9
Thailand60.699.0119.8
Indonesia52.086.3102.3
Saudi Arabia61.578.498.4
Brazil16.369.692.0
Sri Lanka47.982.988.4
Algeria74.425.388.4
Venezuela90.666.682.0
Peru43.090.676.6
Federal Republic of Germany75.169.372.1
Hong Kong14.592.965.9
Other countries645.4785.1791.9
            Total dairy produce exports2,814.03,539.34,084.8

DAIRY PRODUCE EXPORTS

FOREST PRODUCE EXPORTS

Meat and edible offal

In the June 1997 year, exports of meat and edible offal rose 2.8 percent to $2,730.4 million, 13.0 percent of total exports. This follows a 1.6 percent rise in the June 1995 year, showing some positive trend.

Table 25.5. MEAT AND EDIBLE OFFAL EXPORTS1,2

Product199219961997

1 Year ended June.

2 Includes re-exports.

3 Includes venison offal (1992 only).

Source: Statistics New Zealand

 $(million)
Beef1,450.81,053.7992.3
Sheep1,347.81,337.01,502.9
Venison381.23143.4136.8
Goat5.54.45.9
Offal107.8108.985.1
Other9.08.07.4
            Total meat and edible offal exports3,002.22,655.32,730.4
Percentage contribution to total exports16.812.913.0

A 5.8 percent fall in the value of beef exports (down $61.4 million) and a 21.9 percent fall in the value of offal (down $23.8 million) were offset by a 12.4 percent rise in the export of sheep meat (up $165.9 million). The United States of America received the largest amount of New Zealand's meat and edible offal exports at $569.8 million, up $48.0 million from the June 1996 year. The United Kingdom and Germany, New Zealand's next two largest single markets, rose 18.5 and 4.8 percent respectively.

Other increases were recorded for Saudi Arabia (up $16.7 million), Italy (up $10.8 million) and Indonesia (up $10.5 million). Exports to Japan and the Republic of Korea decreased by $43.6 million and $36.7 million respectively. Markets in Asia were dominated by Japan ($163.4 million), Taiwan ($68.9 million) and the Republic of Korea ($47.7 million).

Table 25.6. DESTINATION OF MEAT AND EDIBLE OFFAL EXPORTS1,2

Country1986199219961997

1Year ended June.

2Includes re-exports.

Source: Statistics New Zealand

..$(million)
United States of America539.91,067.8521.8569.8
United Kingdom299.0389.9425.7504.4
Germany48.3161.9244.1255.8
Japan109.6146.7207.0163.4
Canada92.7147.3151.7146.9
France27.5129.7129.8119.0
Belgium15.052.285.188.3
Taiwan, Province of China18.061.079.568.9
Saudi Arabia22.148.047.564.2
Korea, Republic of15.881.884.447.7
Malaysia9.220.644.147.0
Switzerland10.528.542.845.7
Netherlands7.123.837.742.5
Italy21.131.731.742.5
Hong Kong20.340.847.941.7
Greece28.857.127.235.8
Indonesia..9.523.634.1
Spain..35.920.228.6
Singapore19.229.037.827.0
Papua New Guinea14.227.625.026.7
Iran, Islamic Republic of202.5..45.1..
Other countries194.8411.5295.6330.3
            Total meat and edible offal exports1,716.63,002.22,655.32,730.4

Forestry products

Forestry products exported in the June 1997 year totalled $2,335.1 million, a decrease of $201.4 million from the June 1996 year. This decrease resulted from a 25.2 percent fall in the value of wood pulp and a 21.8 percent fall in the value of paper and paperboard, countering a 9.4 percent rise in the value of sawn wood. The largest forestry product exported was rough wood ($675.2 million).

Table 25.7. FORESTRY PRODUCTS EXPORTS1,2

Product199219961997

1Year ended June.

2Includes re-exports.

Source: Statistics New Zealand

 $(million)
Wood pulp, etc.385.9477.1356.7
Paper and paperboard429.1528.0412.7
Wood (rough)377.4669.4675.2
Wood (sawn)275.2372.4407.4
Board (fibre, veneer, plywood)219.8353.2354.1
Other104.3136.5128.8
            Total forestry products exports1,791.62,536.52,335.1
Percentage contribution to total exports10.012.311.1

New Zealand's two largest destinations for forestry products, Japan ($770.9 million) and Australia ($575 million), showed an increase of 1.7 percent and a decrease of 17.8 percent, respectively in the June 1997 year. The Republic of Korea, the third largest destination for forestry products, showed a 16.3 percent decrease to $359.1 million in the June 1997 year.

Table 25.8. DESTINATION OF FORESTRY PRODUCTS EXPORTS1,2

Country199219961997

1Year ended June.

2Includes re-exports.

Source: Statistics New Zealand

 $(million)
Australia621.2699.8575.0
Hong Kong49.480.664.3
Indonesia55.587.779.3
Japan471.5757.9770.9
Korea, Republic of195.3429.1359.1
Philippines11.949.750.6
Taiwan, Province of China113.398.289.1
United States of America27.5114.6135.3
Other countries246.1218.8211.6
            Total forestry products exports1,791.62,536.52,335.1

Fish, crustaceans and molluscs

Exports of fresh, chilled, frozen, and live fish, crustaceans and molluscs fell 10.5 percent to $1,026.9 million in the June 1997 year. Major fish commodities were orange roughy ($113.5 million), hoki ($131 million) and snapper ($43.6 million). Orange roughy and snapper exports fell 17.7 and 9.3 percent respectively, while hoki exports rose 6.2 percent. Exports of squid (included in the molluscs category) fell 44.8 percent to $73.8 million. Exports of lobsters made up 84.3 percent of total crustacean exports in the June 1997 year.

Total exports of fish, crustaceans and molluscs including prepared fish, crustaceans and molluscs fell 9.4 percent in the June 1997 year to $1,104.5 million compared to $1,219.3 million in the June 1996 year.

Exports to the People's Republic of China showed a 54.9 percent increase to $39.8 million and exports to Hong Kong (Special Administrative Region) rose 13.3 percent to $112.6 million. Exports to Taiwan, Province of China showed a 32.2 percent decrease to $44.5 million while exports to the United States of America, which have been falling since their peak in the June 1992 year, decreased 10.4 percent.

Table 25.9. FISH, CRUSTACEANS AND MOLLUSC EXPORTS1,2

Product1994199519961997

1Year ended June.

2Includes re-exports.

Source: Statistics New Zealand

 $(million)
Fresh, chilled, frozen, live, smoked, salted dried or in brine
Orange roughy184.1163.7137.9113.5
Snapper56.756.648.043.6
Hoki (excluding surimi)139.8128.2123.4131.0
Crustaceans129.0131.6136.8134.1
Molluscs210.1268.4259.8191.5
Other fish (excluding surimi)367.6356.9420.0393.8
Surimi25.812.421.519.4
            Total fresh, chilled, frozen, live, smoked, salted, dried or in brine1,113.01,117.81,147.41,026.9
Preserved and prepared
Fish32.336.825.021.3
Crustaceans and molluscs61.644.146.956.3
            Total preserved and prepared93.980.971.877.6
            Total fish, crustaceans and mollusc exports1,206.91,198.71,219.31,104.5
Percentage contribution to total exports6.15.85.95.3

Table 25.10. DESTINATION OF FISH, CRUSTACEAN AND MOLLUSC EXPORTS1,2

Country1994199519961997

1Year ended June.

2Includes re-exports.

Source: Statistics New Zealand

 $(million)
Japan344.3323.1374.3312.9
United States of America290.9268.0229.1205.4
Australia129.0139.5133.8126.4
Hong Kong98.591.899.4112.6
Korea, Republic of49.553.847.946.7
Taiwan, Province of China39.848.165.744.5
China, People's Republic of12.526.425.739.8
Other countries242.5247.9243.5216.1
            Total fish, crustaceans and molluscs exports1,206.91,198.71,219.31,104.5

SEAFOOD EXPORTS
Fresh, chilled, frozen and live

WOOL EXPORTS
By country

Five-year-old Olivia Hoogerbrug shows off ADapples bearing a corporate logo. They are produced by her parents, Gisborne orchardists, by a “shadow branding” chemical-free process.

FRUIT EXPORTS
By country

Wool, hair and yarn

Exports of wool, hair and yarn decreased 6.5 percent to $1,042.7 million in the June 1997 year, compared to the $1,115.6 million recorded in the June 1996 year. Wool, hair and yarn contributed 5.0 percent to New Zealand's total merchandise exports, compared with 5.4 percent in the June 1996 and 6.6 percent in the June 1992 year.

Table 25.11. DESTINATION OF WOOL, HAIR AND YARN EXPORTS1,2

Country199219961997

1Year ended June.

2Includes re-exports.

Source: Statistics New Zealand

 $(million)
Australia89.595.2108.0
Belgium86.743.241.9
China, People's Republic of223.9298.0217.1
Germany73.877.668.2
Hong Kong51.6104.356.7
India44.140.960.8
Italy43.937.452.8
Japan105.053.454.3
Nepal74.947.943.3
Taiwan, Province of China18.932.637.3
Turkey25.027.927.7
United Kingdom84.785.2111.6
United States of America55.150.149.5
Other countries202.8121.6113.6
            Total wool, hair and yarn exports1,179.91,115.61,042.7
Percentage contribution to total exports6.65.45.0

The People's Republic of China, New Zealand's largest destination for wool, hair and yarn exports, showed a decrease of $80.9 million. Decreases were shown for Hong Kong (Special Administrative Region) ($47.6 million), Germany ($9.5 million) and Nepal ($4.6 million). Of the top ten export destinations for wool, hair and yarn, United Kingdom, India, Italy and Australia showed increases which accounted for $26.4 million, $19.9 million, $15.4 million and $12.8 million, respectively.

Fruit and nuts

Fruits and nuts were valued at $778.7 million in the June 1997 year, 4.9 percent lower than the previous year's figure of $818.5 million. Fresh kiwifruit valued at $376.8 million was the largest commodity exported, a decrease of 7.4 percent. Fresh apples were the second largest commodity exported in the June 1997 year, valued at $338.1 million, down 0.4 percent. Braeburn was New Zealand's most popular export apple variety in the June 1997 year, valued at $121.8 million, up 0.2 percent. Royal Gala was the second largest export variety, valued at $99.6 million, down 6.7 percent.

The major country destinations for New Zealand's fruit and nuts were Japan at $111.9 million (down 1.0 percent), the United Kingdom at $85.7 million (down 12.1 percent) and the United States of America at $79.3 million (up 33.8 percent). A significant proportion of New Zealand fruit exports are sold to the European Union (EU) on consignment. Those exports sold on consignment are classified as either ‘Destination unknown EU’ or ‘Destination unknown not EU’. In the June 1997 year, $291.4 million was classified as ‘Destination unknown EU’.

Table 25.12. FRUIT AND NUT EXPORTS1,2

Product19921996R1997

1Year ended June.

2Includes re-exports.

Source: Statistics New Zealand

 $(million)
Kiwifruit456.0407.0376.8
Apples325.9339.3338.1
Berries16.016.517.6
Pears9.311.58.9
Nuts0.40.71.0
Other47.143.436.2
            Total fruit and nut exports854.6818.5778.7
Percentage contribution to total exports4.84.03.7

Table 25.13. DESTINATION OF FRUIT AND NUT EXPORTS1,2

Country199219961997

1Year ended June.

2Includes re-exports.

Source: Statistics New Zealand

 $(million)
Australia48.340.432.4
Canada9.021.916.8
Hong Kong10.335.332.5
Japan136.3113.1111.9
Singapore14.520.918.8
Taiwan, Province of China11.020.527.4
United Kingdom96.797.585.7
United States of America114.459.379.3
EU—Destination unknown342.9343.4291.4
Other countries71.266.282.4
            Total fruit and nut exports854.6818.5778.7

25.3 Imports

In this chapter, imports are valued at cif (cost, 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 for duty) are also available. This is the value used to assess customs duty and excludes insurance and freight to New Zealand. The vfd level equates approximately with the fob (free on board) value used for exports.

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 New Zealand Customs Service. The exchange rates used for the conversions are set on a two-weekly basis.

Total imports for the June 1997 year were valued at $21,323.6 million, a decrease of 0.1 percent or $28.9 million from the June 1996 year total of $21,352.5 million.

Table 25.14. MAJOR COMMODITIES IMPORTED1

CommodityValue of imports (cif)Percentage of total imports (cif)
199219961997199219961997

1Year ended June.

Source: Statistics New Zealand

 $(million)
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof2,119.13,574.33,261.713.716.715.3
Vehicles; other than railway or tramway rolling stock, and parts and accessories thereof1,515.82,755.32,700.59.812.912.7
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders1,527.62,227.92,206.39.910.410.3
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes1,093.51,291.61,439.07.16.06.7
Plastics and articles thereof682.3929.4916.04.44.44.3
Optical, photographic, cinematographic, measuring, checking, medical or surgical instruments and apparatus492.0656.1673.53.23.13.2
Paper and paperboard; articles of paper or paperboard440.9596.8636.52.82.83.0
Pharmaceutical products445.7551.0545.22.92.62.6
Inorganic chemicals; organic and inorganic compounds of precious metals; of rare earth metals, of radioactive elements and isotopes442.2409.2393.82.91.91.8
Iron and steel267.3390.6388.81.71.81.8
Iron or steel articles312.6372.5350.52.01.71.6
Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans291.6326.6334.91.91.51.6
Ships, boats and floating structures202.6117.7306.21.30.61.4
Aircraft, spacecraft and parts thereof549.6301.6305.93.51.41.4
Chemical products nes218.2265.5280.61.41.21.3
Rubber and articles thereof198.9295.0274.61.31.41.3
Organic chemicals229.6311.8271.91.51.51.3
Apparel and clothing accessories; not knitted or crocheted140.6236.22610.91.11.2
Toys, games and sports requisites; parts and accessories thereof151.4234.1252.51.01.11.2
Apparel and clothing accessories; not knitted or crocheted138.4204.6252.30.91.01.2
Other nei4,023.55,304.75,272.026.024.824.7
            Total imports15,483.421,352.521,323.6100.0100.0100.0

FRUIT EXPORTS
By variety

MAJOR COMMODITIES
Imports

VEHICLE IMPORTS
Quantity

Mechanical and electrical machinery

Machinery imports, electrical and mechanical, totalled $5,468.1 million in the June 1997 year. This is a 5.8 percent decrease from the June 1996 year figure of $5,802.2 million. The major machinery commodities imported in the June 1997 year were computer equipment ($692.5 million), line telephone apparatus ($342.4 million), parts and accessories for typewriters, calculators and automatic data processors ($250.0 million) and records, tapes, etc. ($201.5 million).

The United States of America is the largest supplier of machinery to New Zealand, supplying 26.6 percent ($1,456.1 million). Japan supplied 12.8 percent ($700.5 million) and Australia 12.0 percent ($656.9 million). In the June 1997 year machinery imports from the United States of America, Japan and Australia fell in value by 12.3 percent, 6.0 percent and 2.7 percent respectively. Other significant changes were Taiwan, Province of China (up 24.5 percent), the People's Republic of China (up 16.2 percent), Italy (down 14.5 percent) and Germany (down 10.0 percent).

Table 25.15. MAJOR SUPPLIERS OF MECHANICAL AND ELECTRICAL MACHINERY1

Country1994199519961997

1Year ended June.

Source: Statistics New Zealand

 $(million)
Australia495.9592.8675.0656.8
Canada61.557.8115.9105.7
China, People's Republic of81.8111.1127.2147.8
Germany275.3338.7391.7352.6
Italy160.7178.7224.6192.0
Japan848.9867.1745.5700.5
Malaysia94.2134.3158.0168.8
Singapore179.1231.8224.0209.9
Sweden128.8160.2161.9161.7
Taiwan, Province of China219.8265.5239.9298.6
United Kingdom317.7366.9300.1273.9
United States of America1,305.81,472.71,659.41,456.1
Other countries575.0657.6778.9743.7
            Total machinery imports4,744.45,435.35,802.25,468.1
Percentage contribution to total imports25.725.627.225.6

Vehicles

Vehicle imports decreased 2.0 percent to $2,700.5 million in the June 1997 year, a decrease of $54.8 million from the June 1996 year figure of $2,755.3 million. Passenger motor cars were the largest commodity grouping imported in the June 1997 year, totalling 172,373 vehicles and valued at $1,837 million.

Japan was the largest supplier of vehicles to New Zealand. During the June 1997 year Japan supplied 95.5 percent of the total number of used cars imported and 50.9 percent of the total number of new cars (assembled and unassembled) imported.

Table 25.16. VEHICLE IMPORTS1

Commodity19921997
$(million)Quantity$(million)Quantity

1Year ended June.

Source: Statistics New Zealand

Total car imports
Unassembled—new333.929,277285.223,336
Assembled—new380.220,391876.541,071
Assembled—used171.940,313675.3107,966
            Total cars886.089,9811,837.0172,373
Car imports from Japan
Unassembled—new293.927,016268.123,287
Assembled—new140.39,459171.79,466
Assembled—used158.539,422613.3103,076
            Total cars from Japan592.775,8971,053.1135,829

Mineral fuels

Imports of mineral fuels in the June 1997 year were valued at $1,439.0 million, an 11.4 percent increase on the June 1996 year value. Imports of crude petroleum rose 1.0 percent to $821.5 million in the June 1997 year, while imports of non-crude petroleum rose 34.7 percent to $550.8 million. Crude petroleum makes up 57.1 percent, by value, of all mineral fuel imports.

In the June 1992 year, the major suppliers of mineral fuels to New Zealand were Saudi Arabia ($497.2 million), Australia ($237.3 million) and United Arab Emirates ($183.3 million), while in the June 1997 year the major suppliers were Australia ($568.5 million), Saudi Arabia ($414.9 million) and Malaysia ($92.5 million).

Table 25.17. MINERAL FUEL IMPORTS1

Commodity199219961997

1Year ended June.

Source: Statistics New Zealand

 $(million)
Crude petroleum801.0813.8821.5
Non-crude petroleum237.5408.9550.8
Coal, coke, briquettes, etc47.360.459.1
Other7.78.57.6
            Total mineral fuel imports1,093.51,291.61,439.0
Percentage contribution to total imports7.16.06.7

Table 25.18. MINERAL FUEL SUPPLIERS1

Country199219961997

1Year ended June.

Source: Statistics New Zealand

 $(million)
Australia237.3421.1568.5
Saudi Arabia497.2315.3414.9
Malaysia-149.992.5
United Arab Emirates183.345.859.3
Indonesia16.580.354.6
Singapore22.561.952.5
Brunei Darussalam--47.3
United States of America73.251.047.2
Papua New Guinea-42.841.0
Other63.5123.561.3
            Total mineral fuel imports1,093.51,291.61,439.0

Plastics and plastic articles

New Zealand imported $916.0 million of plastic and plastic articles in the June 1997 year compared with $929.4 million in the June 1996 year. Over the last five years, imports of plastic and plastic articles have increased by 34.3 percent.

The two major suppliers of plastic and plastic articles to New Zealand are Australia ($219.8 million) and the United States of America ($214.1 million). Collectively they supply 47.4 percent of New Zealand's plastic and plastic articles imports. Other suppliers include Japan ($65.4 million) and the United Kingdom ($54.7 million).

Table 25.19. PLASTICS AND PLASTIC ARTICLES IMPORTS1

Country199219961997

1Year ended June.

Source: Statistics New Zealand

 $(million)
Australia164.5218.9219.8
Germany39.859.947.8
Japan66.664.465.4
Korea, Republic of18.944.544.9
Netherlands14.127.824.1
Taiwan, Province of China34.744.536.6
United Kingdom44.156.454.7
United States of America167.4209.9214.1
Other countries132.0202.9208.6
            Total plastics and plastic articles imports682.3929.4916.0
Percentage contribution to total imports4.44.44.3

MAJOR TRADING PARTNERS
1997

25.4 Major trading partners

In the June 1997 year, 87.5 percent of New Zealand's exports went to Asia, Australia, Europe and the former USSR and Northern America, compared with 87.5 percent in the June 1996 year and 86.0 percent in the June 1992 year. Imports from these same country groups accounted for 94.0 percent of New Zealand's total imports in the June 1997 year, compared with 94.4 percent in the June 1996 year and 91.7 percent in the June 1992 year. These four country groups remain very important for New Zealand's trade. Diversification of exports to emerging or expanding markets has been offset by declines in other markets.

Asia (including Japan) was the main country group and accounted for 37.6 percent of all New Zealand's exports in the June 1997 year, a decrease of 1.6 percent from the June 1996 year. Imports from Asia made up 29.7 percent of New Zealand's imports, an increase of 0.5 percent. The Asian financial crisis, which began in 1997, is depressing exports to the region.

Table 25.20. TRADE BY GEOGRAPHICAL REGION AND COUNTRY

CountryExports (fob)Imports (cif)
199219961997199219961997
Source: Statistics New Zealand
 $(million)
Oceania and Antarctica:
Australia
Australia3,387.94,204.94,275.73,426.74,964.05,080.1
Percentage of total exports/imports19.020.520.322.123.223.8
Australian External Territories
Christmas Island-0-0--
Cocos (Keeling) Islands---0--
Norfolk Island8.65.35.3000
            Total for Australian External Territories8.65.45.3000
Percentage of total exports/imports000000
New Zealand
New Zealand (re-imports)---77.198.0104.4
Percentage of total exports/imports---0.50.50.5
Melanesia
New Caledonia54.480.478.50.20.30.4
Papua New Guinea97.583.099.17.053.250.4
Solomon Islands14.215.115.01.20.90.9
Vanuatu11.111.912.00.10.40.1
            Total for Melanesia177.2190.4204.78.554.951.8
Percentage of total exports/imports1.00.91.00.10.30.2
Micronesia
Federated States of Micronesia0.40.30.4-0-
Guam20.58.910.2000
Kiribati4.34.84.4000
Marshall Islands3.61.03.2000
Nauru8.11.40.435.929.617.9
Northern Mariana Islands3.10.91.6000
Palau0.10.10.1---
            Total for Micronesia40.117.520.435.929.718.0
Percentage of total exports/imports0.20.10.10.20.10.1
Polynesia (excluding Hawaii)
Cook Islands41.132.228.93.02.11.3
Fiji178.5180.4188.267.049.148.7
French Polynesia100.678.679.50.51.31.4
Niue6.08.55.200.50.2
Pitcairn0.20.40.2-00
Samoa, American30.731.124.1-0.50.4
Samoa, Western88.361.549.26.66.66.1
Tokelau0.1--0-0
Tonga30.633.831.12.52.02.2
Tuvalu1.10.71.200-
Wallis and Futuna Islands4.25.64.3---
            Total for Polynesia481.4432.7411.979.762.060.3
Percentage of total exports/imports2.72.12.00.50.30.3
Antarctica
Antarctic, U.S.A.00.1-00-
Percentage of total exports/imports00-00-
            Total for Oceania and Antarctica4,095.24,850.94,917.93,627.95,208.75,314.5
Percentage of total exports/imports23.023.623.423.424.424.9
Europe and the former USSR:
The United Kingdom and Ireland
United Kingdom1,165.11,256.11,353.7938.51,152.51,133.0
Ireland16.220.418.644.173.170.8
            Total for the United Kingdom and Ireland1,181.31,276.41,372.3982.61,225.51,203.8
Percentage of total exports/imports6.66.26.56.35.75.6
Southern Europe
Albania--0.1-00
Andorra-00---
Cyprus4.84.814.30.10.10.1
Gibraltar0.30.10.20.1--
Greece76.940.151.03.77.59.0
Holy See (Vatican City State)---0.10-
Italy213.7330.8301.1351.3549.0498.2
Malta3.512.84.50.10.20.6
Portugal44.928.127.222.623.725.8
Spain98.678.6125.249.694.997.2
Bosnia-Herzegovina--0.5---
Croatia-1.73.4-0.40.3
Macedonia-0.30.2-00
Slovenia-0.30.1-3.55.7
Yugoslavia/Serbia and Montenegro0.10.70.33.30.10.3
            Total for Southern Europe442.8498.2528.1430.8679.4637.3
Percentage of total exports/imports2.52.42.52.83.23.0
Western Europe
Austria11.311.29.443.892.780.6
Belgium227.3221.9307.3105.6165.2185.9
Destination unknown—EU343.0343.5292.1---
France217.3217.5191.2270.3524.0326.5
Germany415.4503.6511.4639.31,042.9943.8
Liechtenstein00000.40.1
Luxembourg0.30.20.36.69.711.6
Monaco000.10.10.10.1
Netherlands93.0121.1114.9169.0239.6240.2
Switzerland51.269.478.7162.5212.0180.2
            Total for Western Europe1,358.71,488.61,505.41,397.12,286.61,969.2
Percentage of total exports/imports7.67.27.29.010.79.2
Northern Europe
Denmark34.750.744.876.2103.1119.8
Faeroe Islands0.30.2000-
Finland9.110.412.544.2139.4157.0
Greenland-0.1--00
Iceland0.20.90.40.31.61.9
Norway6.39.310.5102.237.1142.4
Sweden48.644.752.8187.2343.1342.7
            Total for Northern Europe99.2116.2121.0410.1624.2763.9
Percentage of total exports/imports0.60.60.62.62.93.6
Eastern Europe
Bulgaria0.41.80.50.40.20.3
Hungary1.12.31.23.33.13.9
Poland2.42.75.73.75.07.7
Romania0.20.40.61.11.72.6
Czechoslovakia2.4--7.1--
Czech Republic-2.71.8-8.07.0
Slovakia, Slovak Republic-0.10.5-0.10.5
            Total for Eastern Europe6.510.010.415.618.121.9
Percentage of total exports/imports0000.10.10.1
The former USSR and the Baltic States
Armenia--0.2---
Belarus--0.7-0.20
Estonia-0.10.8-00
Georgia----00
Kazakhstan-00-0.31.9
Kyrgyzstan--0---
Latvia-1.20.1--0
Lithuania-00.2-0.20.3
Moldova----00
Russia-177.2281.3-4.65.6
Turkmenistan----00
Ukraine-0.31.2-02.0
USSR99.5--4.1--
            Total for the former USSR and the Baltic States99.5178.8284.64.15.39.8
Percentage of total exports/imports0.60.91.4000
            Total for Europe and the former USSR3,188.03,568.13,821.83,240.34,839.14,605.8
Percentage of total exports/imports17.917.418.220.922.721.6
The Middle East and North Africa:
The Middle East
Bahrain15.716.29.61.55.48.6
Iran (Islamic Republic of)183.8143.367.118.13.84.5
Iraq0.3-----
Israel1.93.64.240.941.050.6
Jordan36.730.421.41.010.38.6
Kuwait13.227.38.8-00.2
Lebanon0.81.71.600.40.2
Oman14.011.214.19.777.40
Qatar4.83.23.40.51.82.1
Saudi Arabia205.6191.9192.2507.9335.0442.0
Syrian Arab Republic5.45.67.1-00.1
Turkey52.5156.4126.612.719.019.5
United Arab Emirates42.374.375.4183.546.360.9
Yemen21.615.113.8-0-
            Total for the Middle East598.7680.2545.3775.7540.4597.1
Percentage of total exports/imports3.43.32.652.52.8
North Africa
Algeria78.726.988.4---
Egypt29.763.462.33.63.02.3
Libyan Arab Republic4.63.83.0---
Mauritania----0-
Morocco32.137.651.424.933.368.2
Sudan1.300.1-00
Tunisia10.99.03.80.13.02.7
            Total for North Africa157.2140.7209.028.639.373.2
Percentage of total exports/imports0.90.71.00.20.20.3
            Total for the Middle East and North Africa755.9820.9754.3804.3579.7670.4
Percentage of total exports/imports4.24.03.65.22.73.1
Asia:
Southeast Asia
Brunei Darussalam6.512.913.7-047.3
Cambodia02.51.9-00.1
Indonesia232.8306.0368.987.0229.8214.6
Lao Peoples Democratic Rep.-0.20-0.10
Malaysia470.5471.1490.6151.0433.3396.2
Myanmar (formerly Burma)0.21.33.70.10.50.5
Philippines135.9220.6295.324.151.149.9
Singapore286.6301.3283.9357.2407.6357.3
Thailand177.0261.8282.6116.4164.3181.5
Vietnam7.272.457.71.015.625.7
            Total for Southeast Asia1,316.51,650.01,798.4736.71,302.41,273.0
Percentage of total exports/imports7.48.08.64.86.16.0
Northeast Asia
China, People's Republic of361.5520.0560.0354.1774.0889.2
Hong Kong362.8674.0574.7207.7202.1145.9
Japan2,715.13,302.13,137.82,375.12,884.92,846.2
Korea, Democr. People's Rep.-00000
Korea, Republic of766.61,028.0978.3242.9378.3414.0
Macau0.34.80.82.92.11.6
Mongolia--0000.2
Taiwan, Province of China430.8571.6554.2428.6525.3578.9
            Total for Northeast Asia4,637.26,100.55,805.93,611.34,766.94,876.0
Percentage of total exports/imports26.029.727.623.322.322.9
Southern Asia
Afghanistan0-00.20.20.2
Bangladesh5.721.615.26.16.96.4
Bhutan-00.5---
India97.4106.5124.158.8117.6129.9
Maldives0.34.36.500-
Nepal75.248.244.50.10.50.4
Pakistan25.121.314.640.543.442.5
Sri Lanka52.490.394.610.812.314.1
            Total for Southern Asia256.2292.2300.0116.5180.8193.5
Percentage of total exports/imports1.41.41.40.80.80.9
            Total for Asia6,209.98,042.77,904.34,464.66,250.16,342.4
Percentage of total exports/imports34.839.137.628.829.329.7
Northern America:
Northern America
Bermuda3.93.62.70.31.10.9
Canada266.4296.1312.7262.2426.4388.5
United States of America2,293.01,859.62,085.22,808.03,686.53,622.9
            Total for Northern America2,563.32,159.32,400.63,070.54,114.04,012.3
Percentage of total exports/imports14.410.511.419.819.318.8
South America, Central America and the Caribbean:
South America
Argentina88.132.763.621.319.615.9
Bolivia0.13.87.400.20.7
Brazil18.482.6106.967.087.272.8
Chile30.596.672.011.625.538.9
Colombia4.52.219.13.05.27.0
Ecuador0.91.93.153.138.643.1
Falkland Islands (Malvinas)0.1-----
French Guiana0.70.80.6--0
Guyana1.46.56.61.10.90.6
Paraguay0.10000.20
Peru43.594.380.53.51.16.1
Suriname0-0.4000
Uruguay1.06.35.50.20.50.5
Venezuela91.269.788.51.30.15.2
            Total for South America280.7397.6454.2161.9179.1190.8
Percentage of total exports/imports1.61.92.21.00.80.9
Central America
Belize1.400000
Costa Rica0.30.20.30.40.60.6
El Salvador11.015.764.10.100
Guatemala1.823.932.10.31.71.1
Honduras1.70.10.10.500.1
Mexico187.9150.0158.513.432.650.4
Nicaragua0.81.21.10.100.5
Panama10.815.416.06.600.3
            Total for Central America215.6206.6272.321.435.053.0
Percentage of total exports/imports1.21.01.30.10.20.2
The Caribbean
Anguilla----00
Antigua and Barbuda0.30.30.3-00
Aruba0.100.2---
Bahamas2.02.61.91.31.20.9
Barbados13.313.713.6000.1
Cayman Islands-0.20.10.1-0.1
Cuba79.831.337.131.30.10.2
Dominica0.200.10.1-0
Dominican Republic13.312.913.00.10.30.7
Grenada1.61.41.6---
Guadeloupe7.47.15.6---
Haiti00.10.1000
Jamaica14.319.017.95.56.08.2
Martinique5.95.55.3---
Montserrat----0-
Netherlands Antilles1.01.61.3-00.3
Puerto Rico3.32.30.620.735.042.1
St. Kitts-Nevis0.10.40.2---
St. Lucia1.12.32.4---
St. Vincent and Grenadines0.10.10.20-0
Trinidad and Tobago13.911.613.00.22.21.4
Turks and Caicos Islands0---0-
Virgin Islands, British--0.10--
Virgin Islands, United States0.60.10.10.100
            Total for the Caribbean158.6112.4114.759.445.054.2
Percentage of total exports/imports0.90.50.50.40.20.3
            Total for South America, Central America and the Caribbean654.8716.6841.3242.6259.1298.0
Percentage of total exports/imports3.73.54.01.61.21.4
Africa (excluding North Africa):
Central and West Africa
Benin-----0
Cameroon, Republic of000-0.30.1
Central African Republic----0-
Congo---0-0
Cote d'Ivoire03.20.70.10.10.1
Gabon--0.1-00
Gambia0.10.10.10-0
Ghana0.10.33.20.50.60.8
Guinea----00
Guinea—Bissau----0-
Liberia-00--0
Mali0-0000
Niger---000
Nigeria2.70.83.109.60
Sao Tome and Principe-0--0-
Senegal0.42.1--00
Sierra Leone0--00-
Togo-0.1----
Zaire000-00
            Total for Central and West Africa3.46.67.20.610.71.1
Percentage of total exports/imports00000.10
Southern and East Africa
Angola-0.10.6---
Botswana0.90.20.30.1-0
Burundi0-----
Comoros-----0
Djibouti-0----
Eritrea-00.1---
Ethiopia-00.100.10.1
Kenya0.61.92.22.02.32.5
Lesotho---000
Madagascar001.20.10.10.2
Malawi0.81.31.13.93.83.3
Mauritius32.226.427.70.70.60.8
Mozambique0.301.50-0
Namibia01.30.403.90
Reunion2.96.56.6---
Rwanda00.1--0-
Seychelles0.10.20.7000.2
Somalia----0-
South Africa27.966.775.119.774.264.1
Swaziland0.2--1.00.20
Tanzania, United Rep. of0.50.40.11.10.82.0
Uganda00.10.2-00
Zambia0.100000.3
Zimbabwe0.62.86.14.05.25.8
            Total for Southern and East Africa67.2108.2123.832.691.179.3
Percentage of total exports/imports0.40.50.60.20.40.4
            Total for Africa (excluding North Africa)70.6114.9131.033.2101.880.3
Percentage of total exports/imports0.40.60.60.20.50.4
Not Allocated:
Bunkering206.9131.5131.2---
Passengers' baggage33.7122.4115.0---
Ships' stores61.918.415.7---
            Total for not allocated302.6272.3261.9---
Percentage of total exports/imports1.71.31.2---
            Total of all exports/imports17,840.320,545.721,033.215,483.421,352.521,323.6

Middlemarch beekeeper checks organically grown comb honey to be exported overseas.

ORIGIN OF IMPORTS
Proportion of total imports coming from different countries

TRADING PARTNERS
Proportion of total exports going to different markets

Export packaging designed especially for the Japanese ice cream market, which won a New Zealand Institute of Packaging award. The 1 litre pack is the first manufactured in this country with in-mould labelling on both the lid and the bowl.

A new flower crop, the Galtonia moonbeam, which a Silverdale grower had just started exporting in February 1997.

Top ten trading partners

In the June 1997 year, New Zealand's top ten trading partners received 69.0 percent of our total exports and supplied 77.1 percent of our imports. Australia, Japan, the United States of America and the United Kingdom are New Zealand's top four trading partners. Collectively these countries received 51.6 percent of New Zealand's exports and supplied 59.5 percent of New Zealand's total imports.

Table 25.21. TOP TEN COUNTRIES FOR EXPORTS1

CountryValue of exports (fob)Percentage of total exports (fob)
19921996R199719921996R1997

1Year ended June.

2Includes bunkering, ships' stores and passengers' baggage.

Source: Statistics New Zealand

 $(million) 
Australia3,387.94,204.94,275.719.020.520.3
Japan2,715.13,302.13,137.815.216.114.9
United States of America2,293.01,859.62,085.212.99.19.9
United Kingdom1,165.11,256.11,353.76.56.16.4
Korea, Republic of766.61,028.0978.34.35.04.7
Hong Kong362.8674.0574.72.03.32.7
China, People's Republic of361.5520.0560.02.02.52.7
Taiwan, Province of China430.8571.6554.22.42.82.6
Germany415.4503.6511.42.32.52.4
Malaysia470.5471.1490.62.62.32.3
            Total12,368.714,391.014,521.669.370.069.0
All other countries25,471.66,154.76,511.530.730.031.0
            Total exports17,840.320,545.721,033.1100.0100.0100.0

Table 25.22. TOP TEN COUNTRIES FOR IMPORTS1

CountryValue of imports (cif)Percentage of total imports (cif)
199219961997199219961997

1Year ended June.

Source: Statistics New Zealand

 $(million) 
Australia3,426.74,964.05,080.122.123.223.8
United States of America2,808.03,686.53,622.918.117.317.0
Japan2,375.12,884.92,846.215.313.513.3
United Kingdom938.51,152.51,133.06.15.45.3
Germany639.31,042.9943.84.14.94.4
China, People's Republic of354.1774889.22.33.64.2
Taiwan, Province of China428.6525.3578.92.82.52.7
Italy351.3549.0498.22.32.62.3
Saudi Arabia507.9335.0442.03.31.62.1
Korea, Republic of242.9378.3414.01.61.81.9
            Total12,072.316,292.416,448.378.076.377.1
All other countries3,411.15,060.14,875.322.023.722.9
            Total imports15,483.421,352.521,323.6100.0100.0100.0

Australia

Australia is New Zealand's top trading partner, receiving 20.3 percent ($4,275.7 million) of New Zealand's total exports and supplying 23.8 percent ($5,080.1 million) of our total imports in the June 1997 year. Total trade with Australia topped $9 billion in the June 1997 year. Exports to Australia rose $70.8 million from the June 1996 year while imports rose $116.1 million.

Table 25.23. MAJOR COMMODITIES TRADED WITH AUSTRALIA1

Commodity199419951996R1997

1Year ended June.

Source: Statistics New Zealand

 $(million)
Exports
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof410.5428.3436.8473.6
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes260.5230.2218.7389.1
Wood and articles of wood; wood charcoal394.4371.5251.1252.6
Natural or cultured pearls, precious, semi-precious stones, precious metals, imitation jewellery; coin312.2303.6294.3252.5
Paper and paperboard; articles of paper or paperboard264.7279.6345.9250.1
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders190.9218.6200.7212.3
Plastics and articles thereof157.3185.4187.2186.1
Aluminium and articles thereof108.7124.0104.2137.5
Dairy produce; birds' eggs; natural honey; edible products of animal origin, nei106.7110.0133.2127.4
Aircraft, spacecraft and parts thereof17.247.735.4111.9
Other nei1,939.22,043.41,997.51,882.7
            Total exports to Australia4,162.24,342.44,204.94,275.7
Imports
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes257.5232.4421.1568.5
Vehicles; other than railway or tramway rolling stock, and parts and accessories thereof347.3465.1501.3440.3
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof264.1322.3375.1348.8
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders231.8270.5299.9308.1
Inorganic chemicals; organic and inorganic compounds of precious metals; of rare earth metals, of radioactive elements and isotopes221.8251.2264.7256.0
Paper and paperboard; articles of paper or paperboard143.7144.1165.5238.9
Plastics and articles thereof199.8227.8218.9219.8
Pharmaceutical products186.3191.5208.1208.7
Iron and steel158.7158.7166.1142.3
Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans113.8127.3125.0133.9
Other nei1,817.42,052.72,218.22,214.7
            Total imports from Australia3,942.24,443.64,964.05,080.1

TRADE WITH AUSTRALIA
Exports fob, imports vfd

The value of exports to Australia rose 1.7 percent to $4,275.7 million in the June 1997 year. The main commodities exported to Australia were mechanical machinery ($473.6 million), mineral fuels ($389.1 million), wood and articles of wood ($252.6 million), pearls and precious stones (mainly gold) ($252.5 million) and paper and paperboard ($250.1 million). Paper and paperboard, and pearls, precious stones and precious metals (mainly gold), fell 27.7 percent and 14.2 percent respectively, while mineral fuels, mechanical machinery and wood and articles of wood rose 77.9 percent, 8.4 percent and 0.6 percent respectively.

Imports from Australia rose 2.3 percent to $5,080.1 million in the June 1997 year. The main commodities imported from Australia were mineral fuels ($568.5 million), vehicles ($440.3 million), mechanical machinery ($348.8 million) and electrical machinery ($308.1 million). In the June 1997 year, imports of vehicles and mechanical machinery fell 12.2 and 7.0 percent respectively, while imports of mineral fuels and electrical machinery rose by 35.0 and 2.7 percent respectively.

Table 25.24. TRADE WITH AUSTRALIA

Year ended JuneExports(fob)Imports(cif)Balance
Source: Statistics New Zealand
 $(million)
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
19923,387.93,426.7−38.8
19933,785.63,747.338.3
19944,162.23,942.2220.0
19954,342.44,443.6−101.2
19964,204.9R4,964.0−759.1R
19974,275.75,080.1−804.4

IMPORTS FROM AUSTRALIA

EXPORTS TO AUSTRALIA

Japan

Japan is New Zealand's second largest export destination (after Australia) and the third largest supplier of imports (after Australia and the United States of America). Exports to Japan in the June 1997 year were valued at $3,137.8 million, down 5.0 percent from the June 1996 year, while imports were down 1.3 percent to $2,846.2 million.

Table 25.25. MAJOR COMMODITIES TRADED WITH JAPAN1

Commodity1994199519961997

1Year ended June.

Source: Statistics New Zealand

 $(million)
Exports
Wood and articles of wood; wood charcoal589.7659.5632.2663.2
Aluminium and articles thereof360.4485.2466.5423.6
Fish and crustaceans, molluscs and other aquatic invertebrates343.8322.2371.5305.6
Dairy produce; birds' eggs; natural honey; edible products of animal origin, nei167.5191.9228.1247.1
Organic chemicals131.4419.1148.7204.6
Meat and edible meat offal190.4194.1207.0163.4
Vegetables and certain roots and tubers; edible151.8155.0142.4133.0
Albuminoidal substances; modified starches; glues: enzymes105.1113.9131.4119.5
Fruit and nuts, edible; peel of citrus fruit or melons133.292.4113.1111.9
Pulp of wood or other fibrous cellulosic material93.1115.8124.5106.2
Other nei620.4667.5736.8659.8
            Total exports to Japan2,886.83,416.63,302.13,137.8
Imports
Vehicles; other than railway or tramway rolling stock, and parts and accessories thereof1,303.71,532.81,433.11,400.7
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof479.8499.8431.4424.1
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders369.0367.3314.1276.4
Optical, photographic, cinematographic, measuring, checking, medical or surgical instruments and apparatus137.6133.6133.8131.6
Ships, boats and floating structures3.22.335.9107.9
Iron and steel99.0124.791.095.7
Plastics and articles thereof69.883.464.465.4
Rubber and articles thereof68.067.368.761.8
Photographic or cinematographic goods46.046.139.136.3
Paper and paperboard; articles of paper or paperboard51.352.933.628.5
Other nei300.7265.7239.7217.9
            Total imports from Japan2,928.13,176.02,884.92,846.2

The decrease in exports was due primarily to a 17.7 percent decrease in fish, crustaceans and molluscs ($305.6 million), a 21.0 percent decrease in meat and edible meat offal ($163.4 million), and a 9.2 percent decrease in aluminium and articles ($423.6 million). These decreases were partially offset by increases in wood and articles of wood ($663.2 million), milk powder, cheese, butter and associated dairy products ($247.1 million) and organic chemicals ($204.6 million), which rose 4.9 percent, 8.3 percent and 37.6 percent respectively.

Imports of vehicles ($1,400.7 million), mechanical machinery ($424.1 million) and electrical machinery ($276.4 million) all fell in the June 1997 year, down 2.3 percent, 1.7 percent and 12.0 percent respectively. These decreases were partially offset by ships and boats ($107.9 million) which increased 200.8 percent.

Table 25.26. TRADE WITH JAPAN

Year ended JuneExports1 (fob)Imports (cif)Balance

1Includes re-exports

Source: Statistics New Zealand

 $(million)
19871,823.12,411.6−588.5
19882,078.22,020.957.3
19892,660.32,337.7322.5
19902,485.62,652.4−166.9
19912,611.12,337.2273.9
19922,715.12,375.1340.1
19932,759.12,652.6106.4
19942,886.82,928.1−41.3
19953,416.63,176.0240.5
19963,302.12,884.9417.2
19973,137.82,846.2291.6

The United States of America

The United States of America is New Zealand's third largest export destination and second largest import supplier. In the June 1997 year, exports increased 12.1 percent to $2,085.2 million, and imports declined 1.7 percent to $3,622.9 million.

Exports of milk powder, cheese, butter and associated dairy products, casein and caseinates, and meat and edible offal all rose in the June 1997 year, by 72.2 percent, 14.4 percent and 9.2 percent respectively, while exports of fish, crustaceans and molluscs fell by 10.3 percent. The decline in imports in the June 1997 year is largely the result of a $222.2 million decrease in mechanical machinery.

A Japanese woman pre-packing New Zealand-grown Koyo II variety carrots for the retail market.

TRADE WITH USA

Table 25.27. TRADE WITH THE UNITED STATES OF AMERICA

Year ended JuneExports (fob)Imports (cif)Balance
Source: Statistics New Zealand
 $(million)
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
19922,293.02,808.0−515.0
19932,256.63,198.8−942.2
19942,228.73,321.5−1,092.7
19952,142.04,273.7−2,131.7
19961,859.63,686.5−1,827.0
19972,085.23,622.9−1,537.7

Major commodities exported to the United States of America are primary and agricultural based. Commodities include meat and edible offal ($569.8 million), casein ($262.7 million) fish, crustacean and molluscs ($201.6 million) and milk powder, cheese, butter and associated dairy products ($137.9 million).

Major imports were mechanical machinery ($984.4 million), electrical machinery ($471.7 million), optical and medical equipment ($235.1 million) and aircraft parts ($225.5 million).

The United Kingdom

The United Kingdom has historically been one of New Zealand's largest trading partners. It was New Zealand's largest trading partner through until the late 1970s when Australia, Japan and the United States became dominant. In the June 1997 year the United Kingdom received $1,353.7 million of New Zealand's exports. Major commodities were meat and edible meat offal ($504.4 million), milk powder, cheese, butter and associated dairy products ($378.2 million) and wool ($110.4 million).

New Zealand's imports from the United Kingdom in the June 1997 year totalled $1,133.0 million, this is a 1.7 percent decrease from the previous June year. Major commodities imported were vehicles ($181.5 million), mechanical machinery ($163.5 million) and electrical machinery ($110.4 million).

APEC

On 6 November 1989 Australia hosted the first regional meeting of Asia-Pacific Economic Cooperation (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. APEC countries received 69.1 percent ($14,543.3 million) of New Zealand's total exports in the June 1997 year, compared to 69.9 percent of New Zealand's total exports in the June 1996 year. APEC countries supplied 72.0 percent ($15,351.9 million) of New Zealand's imports, up 0.6 percent from the June 1996 year.

Table 25.28. EXPORTS TO APEC COUNTRIES1

CountryValue of exports2 (fob)Percentage of total exports
19921996R199719921996R1997

1Year ended June.

2Includes re-exports.

3Includes bunkering, ships' stores and passengers' baggage.

Source: Statistics New Zealand

 $(million) 
Australia3,387.94,204.94,275.7019.020.520.3
Brunei Darussalam6.512.913.700.10.1
Canada266.4296.1312.71.51.41.5
Chile30.596.672.00.20.50.3
China, People's Republic of361.5520.0560.02.02.52.7
Hong Kong362.8674.0574.72.03.32.7
Indonesia232.8306.0368.91.31.51.8
Japan2,715.13,302.13,137.815.216.114.9
Korea, Republic of766.61,028.0978.34.35.04.7
Malaysia470.5471.1490.62.62.32.3
Mexico187.9150.0158.51.10.70.8
Papua New Guinea97.583.099.10.50.40.5
Philippines135.9220.6295.30.81.11.4
Singapore286.6301.3283.91.61.51.3
Taiwan, Province of China430.8571.6554.22.42.82.6
Thailand177.0261.8282.61.01.31.3
United States of America2,293.01,859.62,085.212.99.19.9
            Total exports to APEC countries12,209.314,359.614,543.368.469.969.1
Other countries35,631.06,186.26,489.931.630.130.9
            Total exports17,840.320,545.721,033.2100.0100.0100.0

“…a group of New Zealanders coming at you at once is more likely to succeed than getting them one at a time.”—A US supermarket shopper.This was the thinking behind the promotion of New Zealand products in 32 of the Pavilions chain of premium supermarkets in California. The group marketing initiative was co-ordinated by Trade NZ using The New Zealand Way brand.

Table 25.29. IMPORTS FROM APEC COUNTRIES1

CountryValue of imports (cif)Percentage of total imports
199219961997199219961997

1Year ended June.

Source: Statistics New Zealand

 $(million) 
Australia3,426.74,964.05,080.122.123.223.8
Brunei Darussalam-047.3-00.2
Canada262.2426.4388.51.72.01.8
Chile11.625.538.90.10.10.2
China, People's Republic of354.1774.0889.22.33.64.2
Hong Kong207.7202.1145.91.30.90.7
Indonesia87.0229.8214.60.61.11.0
Japan2,375.12,884.92,846.215.313.513.3
Korea, Republic of242.9378.3414.01.61.81.9
Malaysia151.0433.3396.21.02.01.9
Mexico13.432.650.40.10.20.2
Papua New Guinea7.053.250.400.20.2
Philippines24.151.149.90.20.20.2
Singapore357.2407.6357.32.31.91.7
Taiwan, Province of China428.6525.3578.92.82.52.7
Thailand116.4164.3181.50.80.80.9
United States of America2,808.03,686.53,622.918.117.317.0
            Total imports from APEC countries10,872.915,239.015,351.970.271.472.0
Other countries4,610.66,113.45,971.729.828.628.0
            Total imports15,483.421,352.521,323.6100.0100.0100.0

Major commodities exported to APEC countries included milk powder, cheese, butter and associated dairy products ($1,716.2 million), wood and articles of wood ($1,535.3 million), meat and edible meat offal ($1,215.6 million) and fish, crustaceans and molluscs ($883.5 million). Major commodities imported from the APEC countries included mechanical machinery ($2,288.3 million), vehicles ($2,149.4 million), electrical machinery ($1,661.8 million) and mineral fuels ($952.9 million).

Table 25.30. MAJOR COMMODITIES EXPORTED TO APEC COUNTRIES1

CommodityValue of exports2 (fob)Percentage of total exports
19921996R199719921996R1997

1Year ended June.

2Includes re-exports.

Source: Statistics New Zealand

 $(million) 
Dairy produce; birds' eggs; natural honey; edible products of animal origin, nei1,135.41,466.01,716.29.310.211.8
Wood and articles of wood; wood charcoal949.21,509.11,535.37.810.510.6
Meat and edible meat offal1,672.41,262.51,215.613.78.88.4
Fish and crustaceans, molluscs and other aquatic invertebrates927.4978.4883.57.66.86.1
Aluminium and articles thereof678.8791.5785.85.65.55.4
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof410.9703.2710.83.44.94.9
Wool, fine or coarse animal hair; horsehair yarn and woven fabric579.7663.1553.94.74.63.8
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes446.5340.6519.03.72.43.6
Albuminoidal substances; modified starches; glues; enzymes405.2484.5513.93.33.43.5
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders240.7387.6411.92.02.72.8
Organic chemicals145.5245.3400.41.21.72.8
Paper and paperboard; articles of paper or paperboard383.7481.2376.93.13.42.6
Other nei4,233.75,046.54,920.134.735.133.8
            Total exports to APEC countries12,209.314,359.614,543.3100.0100.0100.0

Table 25.31. MAJOR COMMODITIES IMPORTED FROM APEC COUNTRIES1

CommodityValue of imports (cif)Percentage of total imports
199219961997199219961997

1Year ended June.

Source: Statistics New Zealand

  $(million)    
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof1,584.82,506.22,288.314.616.414.9
Vehicles; other than railway or tramway rolling stock, and parts and accessories thereof1,341.82,203.32,149.412.314.514.0
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders1,159.31,662.81,661.810.710.910.8
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes381.9823.6952.93.55.46.2
Plastics and articles thereof503.6662.0666.24.64.34.3
Optical, photographic, cinematographic, measuring, checking, medical or surgical instruments and apparatus340.9465.4473.93.13.13.1
Paper and paperboard; articles of paper or paperboard294.9358.3416.72.72.42.7
Inorganic chemicals; organic and inorganic compounds of precious metals; of rare earth metals, of radioactive elements and isotopes389.4367.7354.73.62.42.3
Iron and steel223.4319.4307.82.12.12.0
Iron or steel articles258.0284.3261.12.41.91.7
Pharmaceutical products188.9254.8256.81.71.71.7
Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans199.0234.5242.21.81.51.6
Other nei4,006.95,096.75,320.236.933.434.7
            Total imports from APEC countries10,872.915,239.015,351.9100.0100.0100.0

Table 25.32. TRADE WITH APEC (Revised values)

Year ended JuneExports1 (fob)Percentage of total exportsImports (cif)Percentage of total importsBalance

1Includes re-exports.

Source: Statistics New Zealand

 $(million) $(million) $(million)
19877,458.261.67,964.067.5−505.7
19888,025.864.57,773.767.0252.2
198910,108.767.88,832.670.71,276.0
199010,025.666.110,729.068.0−703.4
199110,569.167.010,035.865.5533.3
199212,209.368.410,872.970.21,336.4
199312,958.168.312,207.070.4751.0
199413,827.069.713,028.370.5798.7
199514,779.471.115,313.772.0−534.3
199614,359.669.915,239.071.4−879.5
199714,543.369.115,351.972.0−808.6

European Union

The EU grew out of the desire of European governments after World War II to avoid future conflicts and to promote peaceful economic development. It was established in 1957 under the Treaty of Rome as an essentially economic grouping of six members: France, Germany, Belgium, the Netherlands, Luxembourg and Italy. There are now 15 countries in the EU, the original six plus Denmark, Spain, United Kingdom, Greece, Ireland and Portugal, and Austria, Finland and Sweden who joined the EU during the June 1995 year. Several Eastern European and Mediterranean countries are also candidates.

In the June 1997 year, the European Union received 16.2 percent ($3,413.6 million) of New Zealand's exports, while supplying 19.9 percent ($4,242.2 million) of New Zealand's imports. Major commodities exported to the EU included meat and edible offal ($1,177.7 million), milk powder, cheese, butter and associated dairy products ($549.3 million), fruit and nuts ($396.1 million) and wool, hair and yarn ($303.4 million). Major commodities imported from the EU included mechanical machinery ($892.4 million), vehicles ($542.9 million), electrical machinery ($480.7 million) and pharmaceutical products ($236.9 million).

TRADE WITH APEC COUNTRIES

TRADE WITH EU COUNTRIES

Table 25.33. EXPORTS TO EU COUNTRIES1

CountryValue of exports(fob)2Percentage of total exports
19921996R199719921996R1997

1Year ended June.

2Includes re-exports.

3Includes bunkering, ships' stores and passengers' baggage.

Source: Statistics New Zealand

 $(million) 
Austria11.311.29.40.10.10
Belgium227.3221.9307.31.31.11.5
Denmark34.750.744.80.20.20.2
Finland9.110.412.50.10.10.1
France217.3217.5191.21.21.10.9
Germany415.4503.6511.42.32.52.4
Greece76.940.151.00.40.20.2
Ireland16.220.418.60.10.10.1
Italy213.7330.8301.11.21.61.4
Luxembourg0.30.20.3000
Netherlands93.0121.1114.90.50.60.5
Portugal44.928.127.20.30.10.1
Spain98.678.6125.20.60.40.6
Sweden48.644.752.80.30.20.3
United Kingdom1,165.11,256.11,353.76.56.16.4
Destination unknown—EU343.0343.5292.11.91.71.4
            Total exports to the EU3,015.33,278.83,413.616.916.016.2
Other countries314,825.017,266.917,619.583.184.083.8
            Total exports17,840.320,545.721,033.1100.0100.0100.0

Table 25.34. IMPORTS FROM EU COUNTRIES1

CountryValue of imports(cif)Percentage of total imports
199219961997199219961997

1Year ended June.

Source: Statistics New Zealand

 $(million) 
Austria43.892.780.60.30.40.4
Belgium105.6165.2185.90.70.80.9
Denmark76.2103.1119.80.50.50.6
Finland44.2139.4157.00.30.70.7
France270.3524.0326.51.72.51.5
Germany639.31,042.9943.84.14.94.4
Greece3.77.59.0000
Ireland44.173.170.80.30.30.3
Italy351.3549.0498.22.32.62.3
Luxembourg6.69.711.6000.1
Netherlands169.0239.6240.21.11.11.1
Portugal22.623.725.80.10.10.1
Spain49.694.997.20.30.40.5
Sweden187.2343.1342.71.21.61.6
United Kingdom938.51,152.51,133.06.15.45.3
            Total imports from the EU2,951.94,560.24,242.219.121.419.9
Other countries12,531.516,792.217,081.480.978.680.1
            Total imports15,483.421,352.521,323.6100.0100.0100.0

Table 25.35. TRADE WITH EU (Revised values)

Year ended JuneExports (fob)Percentage of total exports1Imports (cif)Percentage of total importsBalance

Includes re-exports.

Source: Statistics New Zealand

 $(million) $(million) $(million)
19872,675.822.12,999.325.4−323.5
19882,634.121.22,840.024.5−205.9
19892,762.618.52,559.820.5202.8
19902,827.218.63,454.421.9−627.3
19912,780.817.63,559.323.2−778.4
19923,015.316.92,951.919.163.3
19933,056.816.13,430.119.8−373.3
19943,127.015.83,749.620.3−622.6
19953,242.815.64,342.520.4−1,099.8
19963,278.816.04,560.221.4−1,281.4
19973,413.616.24,242.219.9−828.6

Table 25.36. MAJOR COMMODITIES EXPORTED TO EU COUNTRIES1

CommodityValue of exports2 (fob)Percentage of total exports (fob)
19921996R199719921996R1997

1Year ended June.

2Includes re-exports.

Source: Statistics New Zealand

 $(million) 
Meat and edible meat offal954.31,074.61,177.731.632.834.5
Dairy produce; birds' eggs; natural honey; edible products of animal origin, nei417.8462.5549.313.914.116.1
Fruit and nuts, edible: peel of citrus fruit or melons483.6452.6396.116.013.811.6
Wool, fine or coarse animal hair; horsehair yarn and woven fabric349.4276.2303.411.68.48.9
Raw hides and skins (other than furskins) and leather152.1244.7208.85.07.56.1
Albuminoidal substances; modified starches; glues; enzymes98.2148.6138.93.34.54.1
Fish and crustaceans, molluscs and other aquatic invertebrates110.8128.1109.03.73.93.2
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders31.468.471.21.02.12.1
Aircraft, spacecraft and parts thereof9.99.762.60.30.31.8
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof60.256.856.92.01.71.7
Beverages, spirits and vinegar32.747.856.21.11.51.6
Animal originated products; nei71.952.146.32.41.61.4
Other nei242.9256.6237.28.17.86.9
            Total exports to the EU3,015.33,278.83,413.6100.0100.0100.0

Bright green cars carry the Zespri kiwifruit brand message to holiday spots in the south of France. Six Citroen deux chevaux cars visited French resorts, while twelve VW beetles toured Germany and the Netherlands. A train running between resorts on the Belgian coast was painted in the bright green Zespri colours.

Table 25.37. MAJOR COMMODITIES IMPORTED FROM EU COUNTRIES1

CommodityValue of imports (cif)Percentage of total imports (cif)
199219961997199219961997

1Year ended June.

Source: Statistics New Zealand

 $(million) 
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof475.4971.6892.416.121.321.0
Vehicles; other than railway or tramway rolling stock, and parts and accessories thereof169.2542.0542.95.711.912.8
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders333.1503.7480.711.311.011.3
Pharmaceutical products212.6240.2236.97.25.35.6
Plastics and articles thereof151.3223.4208.45.14.94.9
Paper and paperboard; articles of paper or paperboard134.3204.8192.24.54.54.5
Optical, photographic cinematographic, measuring, checking, medical or surgical instruments and apparatus127.7162.6169.54.33.64.0
Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans90.890.290.73.12.02.1
Organic chemicals71.697.883.72.42.12.0
Chemical products nes85.190.180.12.92.01.9
Iron or steel articles48.275.774.11.61.71.7
Iron and steel37.960.264.71.31.31.5
Other nei1,014.61,297.91,125.834.428.526.5
            Total imports from the EU2,951.94,560.24,242.2100.0100.0100.0

TRADE WITH ASIA
Excluding Japan

Asia (excluding Japan)

Exports to Asian countries (excluding Japan) have been steadily increasing since the June 1990 year and totalled $4,766.5 million in the June 1997 year, an increase of 0.5 percent from the June 1996 year.

Imports from Asian countries (excluding Japan) totalled $3,496.2 million in the June 1997 year, a 3.9 percent increase over the $3,365.2 million recorded for the June 1996 year.

Table 25.38. TRADE WITH ASIAN COUNTRIES excluding Japan

Year ended JuneExports1Percentage of total exportsImportsPercentage of total importsBalance

1Includes re-exports.

Source: Statistics New Zealand

 $(million) $(million) $(million)
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
19923,494.819.62,089.513.51,405.3
19933,805.220.12,430.014.01,375.2
19944,074.720.62,623.614.21,451.1
19954,573.822.03,098.214.61,475.6
19964,740.623.13,365.215.81,375.4
19974,766.522.73,496.216.41,270.3

Anmum milkpowder, premier winner of the 1988 Carter Holt Harvey Food Awards, has put the Northland Dairy Company at the forefront of food technology. They have developed a way to add iron to the milkpowder to meet the needs of pregnant and breastfeeding mothers.

25.5 Overseas cargo

Overseas cargo records all goods (by value and gross weight) loaded or unloaded at New Zealand's seaports or airports.

Overseas cargo statistics, like overseas merchandise trade statistics, are sourced from customs entries. However, there are some conceptual differences between overseas trade statistics and overseas cargo statistics.

Some items are included in overseas cargo statistics, but not in 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; and

  • returnable containers and samples.

Overseas cargo loaded at New Zealand ports weighed 20,643.7 thousand tonnes, in the June 1997 year, up 6.3 percent from the June 1996 year. The value of cargo loaded was $21,512.3 million, up 2.7 percent. Tauranga again loaded the most overseas cargo in the June 1997 year, 6,120.7 thousand tonnes (an increase of 12.1 percent), worth $2,896.9 million. Auckland loaded 36.0 percent (2,201.6 thousand tonnes) of the amount loaded at Tauranga, but valued at $5,712.0 million.

Seaports loaded 20,557.8 thousand tonnes in the June 1997 year, an increase of 6.3 percent. The largest percentage increase was recorded by Whangarei, which showed in increase of 44.4 percent in the amount of cargo loaded, with a corresponding increase in value of 60.6 percent.

Of the three major airports, only Wellington showed an increase (up 20.4 percent) in the amount of overseas cargo loaded in the June 1997 year. Both Auckland and Christchurch showed decreases, of 6.3 percent and 0.9 percent respectively. Auckland, however, showed an increase in the value of overseas cargo loaded, up 3.9 percent to $2,687.5 million.

Table 25.39. OVERSEAS CARGO LOADED AT NZ PORTS1

 Value (fob)Gross weight
19921996R199719921996R1997

1Year ended June.

Source: Statistics New Zealand

Seaports$(million)tonnes
Whangarei375,0210,9338,8870,800505,936730,496
Auckland4,102,05,379,05,712,01,510,3902,014,5782,201,618
Tauranga2,691.53,009,22,896,94,418,2895,458,1816,120,670
Taharoa23,120,114,01,118,2071,229,724891,674
Gisborne41,3100,8120,5138,944405,289440,036
New Pymouth900,5977,41,332,42,051,4332,833,4533,898,347
Napier1,143,51,290,11,191,61,226,8631,277,8141,017,491
Wanganui------
Wellington1,901.81,659,21,561,5659,286650,772665,512
            Total North Island11,178,712,646.813,167.611,994,21214,375,74615,965,844
Nelson508,3531,8589.5848,622963,543973,385
Picton5,227,718,443,261112,23656,390
Tarakohe------
Westport-0.1-1,7992,645-
Lyttelton1,363,02,021,52,270,61,210,0392,295,5582,148,764
Timaru392,0505,9373,4277,495311,123223,846
Dunedin1,369,81,204,81,023,2698,110677,672626,102
Invercargill (Bluff)716,8771,1744,1704,441592,555563,466
            Total South Island4,355.55,062.95,019,33,783,7684,955,3324,591,953
            Total Seaports15,534.117,709,718,186,915,777,98019,331,07820,557,797
Airports
Auckland1,985,52,586,22,687,564,45771,05066,599
Hamilton-0.3--44
Whenuapai0.4--22-1
Wellington156,592,4115,43,1333,2063,861
Christchurch297,4551,7513,611,00815,62015,476
Dunedin-0.80.1-354
            Total Airports2,439,93,231,43,316,778,62589,91685,946
Parcel Post10.58.28.6105-
            Total Cargo Loaded17,984,520,949,421,512,315,856,61619,421,00020,643,747

Overseas cargo unloaded totalled 11,710.5 thousand tonnes (down 0.7 percent) valued at $20,865.1 million (down 1.1 percent) for the June 1997 year. Whangarei unloaded 3,871.7 thousand tonnes valued at $951.4 million, while Auckland unloaded 2,932.5 thousand tonnes valued at $10,294,1 million. Gisborne showed the largest percentage increase in the amount of cargo unloaded (up 166.0 percent to 11.6 thousand tonnes).

Seaports unloaded 11,619.4 thousand tonnes in the June 1997 year, 99.2 percent of all overseas cargo unloaded. North Island ports unloaded 9,536.3 thousand tonnes and South Island ports 2,083.1 thousand tonnes.

1997 OVERSEAS CARGO - LOADED
By weight (thousand tonnes) and value (fob $million)

1997 OVERSEAS CARGO - UNLOADED
By weight (thousand tonnes) and value (cif $million)

Airports in New Zealand unloaded 90.9 thousand tonnes in the June 1997 year, valued at $5,241.5 million. Auckland unloaded 85.5 percent, by weight, of all cargo unloaded at airports. Wellington airport (down 3.8 percent) was the only airport to show a decrease in the amount of overseas cargo unloaded.

Table 25.40. OVERSEAS CARGO UNLOADED AT NZ PORTS1

 Value (cif)Gross weight
19921996R199719921996R1997

1Year ended June.

Source: Statistics New Zealand

Seaports$(millions)tonnes
Whangarei927,7858.5951,43,378,1263,941,5743,871,738
Auckland6,640,110,357,110,294,11,724,0172,994,979,2,932,495 
Tauranga285,3449,5440,1718,1361,250,1851,216,121
Gisborne0.43.16.42,0664,36511,611
New Plymouth271.5119.1112.0231,451288,039288,794
Napier254.0338.8290.1262,480464,740423,094
Wanganui0.1--45--
Wellington1,250.01,299.41,356.2431,006722,986792,416
            Total North Island9,629.013,425.613,450.36,747,3249,666,8679,536,268
Nelson114.2155.9156.265,18674,84158,498
Picton------
Lyttelton927.51,320.31,291.9479,084748,024832,159
Timaru94.6165.4128.462,177140,675142,730
Dunedin192.5188.5161.4124,641181,708219,138
Invercargill (Bluff)338.9463.1380.1812,437893,384830,561
            Total South Island1,667.82,293.22,117.91,543,5262,038,6312,083,087
            Total Seaports11,296.915,718.815,568.38,290,85311,705,49811,619,355
Airports
Auckland2,945.74,712.74,628.345,42776,79777,706
Hamilton--0.3--7
Wellington230.0174.6179.33,9514,7384,556
Christchurch272.1442.2433.65,7708,4748,656
Dunedin--0.1--3
            Total Airports3,447.85,329.75,241.555,14990,01190,927
Parcel Post65.85855.3348367217
            Total Cargo Unloaded14,810.521,106.420,865.18,346,34911,795,87611,710,499

25.6 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 New Zealand Customs Service.

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).

TERMS OF TRADE INDEX
Based on ratio of export prices to import prices

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.

Table 25.41. EXPORT AND IMPORT PRICES AND OVERSEAS TERMS OF TRADE INDEXES

 Export price index*Percentage change from preceding periodImport price index1Percentage change from preceding periodTerms of trade index2Percentage change from preceding period

1Year ended June 1989 (=1000).

2Base: averages of ten years ended June 1989(=1000).

Source: Statistics New Zealand

June year
19878646.8999−0.39857.2
19888882.8941−5.810749.1
1989100012.610006.211396.0
199010646.410343.411722.9
19911004−5.610441.01095−6.6
199210312.710864.01081−1.3
199311158.111294.011254.1
19941067−4.31087−3.71118−0.6
19951054−1.21076−1.01115−0.3
19961031−2.21069−0.71098−1.5
1997979−5.01026−4.01087−1.0
Quarterly
1995 Jun1014−5.41064−1.81085−3.7
         Sep10362.210821.710900.5
         Dec10501.41070−1.111172.5
1996 Mar1035−1.41069−0.11102−1.3
         Jun1007−2.71056−1.21086−1.5
         Sep10080.11036−1.911082.0
         Dec975−3.31027−0.91081−2.4
1997 Mar970−0.51020−0.71083−0.1
         Jun965−0.510210.11076−0.6
         Sep977P1.2P10472.5P1063−1.2P

Export and import price indexes

Table 25.42 provides a summary of changes in the Export Price Index, and 25.43 of the Import Price Index.

Table 25.42. EXPORT PRICE INDEXES1

 All pastoral and dairy productsTotalFish and fish preparationsFood and beveragesForestry productsNon-fuel crude materialsNon-food manufactured goodsTotal exports2
Dairy productsMeat, wool and by-products
MeatWoolTotal2AluminiumTotal2

1Year ended June 1989 (=1000).

2Includes commodities not listed.

Source: Statistics New Zealand

June year
19877579248078848851142892850856708802864
1988741874916936901962846888978812868888
1989100010001000100010001000100010001000100010001000
1990116411899491098109910331121102910278649881064
1991103911936979759951005107710008488569591004
1992110812246399821037121011569958347219461031
199312811309675105411231330125211449557269711115
1994115412356361007105212401157127710056729321067
199510551083779993999126610661226104386510041054
199611941027760945100611771078121910008039481031
199710581074680956964113410321039922703892979
Quarterly
1995 Jun1093101982395496012481020123910588779511014
         Sep1147101779094799112331063126310378769661036
         Dec12361056759953102711341099128810238259641050
1996 Mar1245101676293910181144109112189997649391035
         Jun113810287349459921191106411159467529231007
         Sep1116110671198110011157107010919447079161008
         Dec10641067699951954113710231060923655890975
1997 Mar10231077660956954112510201009917705881970
         Jun1040105364794195311131021997908745880965
         Sep1043P1037P668P932P948P1125P1017P1039P922P784P901P977P

Table 25.43. IMPORT PRICE INDEXES1

 Food and beveragesPetroleum and petroleum productsNon-fuel crude materialsNon-food manufactured goodsTotal imports3
Plastics and plastic articlesTextile yam, fabrics related productsIron and steel2Non-electrical machineryElectrical machinery and apparatusTransport equipmentTotal3

1Year ended June 1989 (= 1000).

2Excludes manufactured articles of iron and steel.

3Includes commodities not listed.

Source: Statistics New Zealand

June year
19879871223913787996736100812281026990999
198890510998788419607049681030994937941
198910001000100010001000100010001000100010001000
19901052126910148331025105210421006102710171034
19911038157010328581046999988988106410041044
19921078139210497981100107010561052122610651086
19931098146610278041100102711051107138311111129
199410541171960737102494910701114145010901087
199510381175988788103093410541037147210761076
1996104211699987691010101110301006144010671069
199710421277950690975926971958140910091026
Quarterly
1995 Jun9991167961843100294610241023146910661064
         Sep102011189948421027101910621000150210891082
         Dec10511125993789105310481015994142110701070
1996 Mar103112301007725992101010201015144110621069
         Jun1072118999771896897010231018140610471056
         Sep10521203949711990962996983142510271036
         Dec10481258958680985933971988141510121027
1997 Mar1012138294167895590096392813959961020
         Jun10521263951691969904951927139610001021
         Sep1073P1230P966P703P1006P943P982P978P1501P1035P1047P

Export and import volume indexes

Table 25.44 provides a summary of the export volume indexes, and table 25.45 of the import volume indexes. These indexes are expressed on a base of the year ended June 1989 (=1000). In tables 25.44 and 25.45 the quarterly index numbers are given as annual equivalents.

Table 25.44. EXPORT VOLUME INDEXES1

 All pastoral and dairy productsTotalFish and fish preparationsFood and beveragesForestry productsNon-fuel crude materialsNon-food manufactured goodsTotal exports2
Dairy productsMeat, wool and by-products
MeatWoolTotal2AluminiumTotal2

1Year ended June 1989 (=1000).

2Includes commodities not listed.

Source: Statistics New Zealand

June year
19871037100710761018992782979714949815923948
19881034948985928958789982879908898928945
1989100010001000100010001000100010001000100010001000
199095080677279286786791110878449731043942
1991103789976985693896010021276936102411481033
19921147101795296610391151112314751064107712971152
199311129687518759601062107216341010101114161136
1994131096993092010531188117115561049108216101246
19951396101090193410981156124117161085108117381322
19961338108376495211071260128616941054110217691343
19971779106178793312081190140718281076173119021446
Quarterly
1995 Jun12451295686107212961209149618321105109117631443
         Sep970981563807924133811491713934105917951259
         Dec14948149688279901341115016561068113118211299
1996 Mar13741233883109711541056125215991121107316141303
         Jun15141303644107613611303159518061091114618451512
         Sep14689287108171064130212911776987115718791354
         Dec198780291678611031222130119071082126119861432
1997 Mar1786120776510381217980135416171058122717161371
         Jun18761308756109214481255168320131179127820261627
         Sep1550P955P651P807P1078P1276P1322P1711P895P1229P2085P1374P

Table 25.45. IMPORT VOLUME INDEXES1

 Food and beveragesPetroleum and petroleum productsNon-fuel crude materialsNon-food manufactured goodsTotal imports3
Plastics and plastic articlesTextile yarn, fabrics related productsIron and steel2Non-electrical machineryElectrical machinery and apparatusTransport-equipmentTotal3

1Year ended June 1989 (=1000).

2Excludes manufactured articles of iron and steel.

3Includes commodities not listed.

Source: Statistics New Zealand

June year
1987844936943113211791880941723942943945
198893298610671093101220891015824904986987
198910001000100010001000100010001000100010001000
199010911194116012971074123811121164160612411221
1991109012431045121997594611711405119911941175
19921090119811701414101591910751103104611441142
199312261226118416601099116712151142103012381230
199414061391132418911165145914791219105413591361
199515351472133420201189156816731570149616101583
199615901694133219981130142218581684124616111600
199716481728133121941092154617991750132916851664
Quarterly
1995 Jun14311571128717841119149616921594162215941568
         Sep18021800127020021171142718481844110216521653
         Dec16941323146220981135136919931863136017151678
1996 Mar14791874138919271091137516851412117814851499
         Jun13861779120519661121151719081615134415931568
         Sep17901619145422251153162720131827153618271793
         Dec17421518136223961111166817961849131017271694
1997 Mar14541704121520101015142216391527115615371522
         Jun16072073129221461090146517471798131316481648
         Sep1714P1626P1359P2239P1159P1526P1985P1939P1705P1922P1857P

EXPORT VOLUME INDEX

IMPORT VOLUME INDEX

Contributors

  • 25.1 New Zealand Trade Development Board (Trade NZ); New Zealand Customs Service; Statistics New Zealand.

  • 25.1-25.6 Statistics New Zealand.

Special articles

New Zealand Customs Service; Trade NZ; Statistics New Zealand.

Further information

Export News. Trade NZ (fortnightly).

Key Statistics. Statistics New Zealand (monthly).

New Zealand Harmonised System Classification. Statistics New Zealand (1996, annual updates).

New Zealand Standard Classification by Broad Economic Categories. Department of Statistics, 1987.

New Zealand Standard Classification of Countries. Statistics New Zealand, 1995.

New Zealand Standard Trade Classification. Department of Statistics, 1988.

Report of the New Zealand Customs Service (Parl paper B.24).

Report of New Zealand Trade Development Board (Parl paper G.45).

Tariff of New Zealand. New Zealand Customs Service.

Chapter 26. Prices

Shoes are in a very competitive market.

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 25.6: Overseas trade indexes. Farming indexes can be found in chapter 18, 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.

26.1 Consumer prices

The Consumers Price Index (CPI) measures changes in the level of prices of goods and services purchased by private New Zealand households. It is the best available measure of the effect of changes in retail prices on the average household budget. Statistics New Zealand endeavours to keep the basket of goods and services for which prices are regularly surveyed, constant in quantity and quality over time, so that only ‘pure’ price movements are recorded. The CPI is possibly New Zealand's best known statistic and is used to derive measures of inflation.

Index regimen. Since 1914, when the CPI was first calculated, spending patterns have changed considerably as new goods and services appear on the market and as lifestyles and consumer tastes alter. The CPI is revised regularly (approximately every five years) to keep up to date with changing expenditure patterns. The revisions change the composition of the basket of commodities which are price surveyed, and adjust the relative emphasis given to each commodity.

The CPI was last revised in 1993. The regimen—the goods and services that are price surveyed, and their relative weights—is now divided into nine groups, 20 subgroups and approximately 319 published regimen items (excluding fresh fruit and vegetables) reflecting the range of goods and services available in New Zealand. The latest revision changed the CPI in a number of areas:

  • ‘Credit services’ was introduced as a new subgroup of the CPI. It includes mortgage interest (previously included in the home ownership subgroup), hire purchase and credit costs.

  • ‘Home ownership’ now includes the price of purchasing or building new dwellings, upkeep of existing dwellings and residential sections.

  • The treatment of fresh fruit and vegetables was changed to reflect the longer availability of fruit and vegetables once considered seasonal.

Commodity weighting. The commodity weighting pattern incorporated into the CPI is based on the average expenditures of the population as measured by Statistics New Zealand's Household Economic Survey (HES). This survey covers a large, statistically-representative sample of private households and provides comprehensive details of all their expenditures. This sample provides the weights used in the CPI for the nine groups, 20 subgroups and items. In some areas the HES data does not provide adequate information, so surveys of businesses and government organisations are also used to supplement the HES. Table 26.1 gives the weights for each group.

Table 26.1. COMMODITY GROUP WEIGHTING

GroupWeight in the CPI
Source: Statistics New Zealand
 percent
Food17.76
Housing19.50
Household operation14.92
Apparel4.50
Transportation14.58
Tobacco products and alcoholic drinks8.46
Personal and health care6.27
Recreation and education7.50
Credit services6.50

EXPENDITURE WEIGHTS
By CPI group

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.

  • Direct tax and commodities which represent savings and investment.

  • 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, eg art work, catering charges for private functions, and pets.

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. The sample of outlets is updated to reflect changes in market trends and household buying behaviour. The prices for a wide range of commodities are collected, where possible, monthly for food and quarterly for other commodities at each outlet. These are compared against the previous period's results and price changes are recorded. Prices are surveyed by specially-trained field staff in retail establishments in 15 urban areas throughout New Zealand.

In addition to pricing at outlets, Statistics New Zealand conducts a number of postal surveys. These surveys are continually being developed and adapted to meet the changing variety of goods and services available to New Zealanders. The postal surveys cover most items that are heavily weighted in the index including mortgage interest rates, rentals, sports club subscriptions, vehicle licensing and insurance, used car prices and charges for contractors such as electricians and plumbers.

Geographic coverage. Prices are surveyed in 15 urban areas: Whangarei, Auckland, Hamilton. Tauranga, Rotorua, Napier-Hastings, New Plymouth, Wanganui, Palmerston North, Wellington. Nelson, Christchurch, Timaru, Dunedin and Invercargill. Indexes are compiled for all regions and a number of combinations of regions. These indexes do not show if it is more expensive to live in one city than another, or in the North Island or the South Island. The indexes, however, can be used to show where prices of goods and services are rising or falling.

Uses of the CPI. The CPI is used for a variety of purposes including cost of living adjustments, targeted benefits, legal contracts, rental adjustments and other political, commercial and personal uses.

In addition, the Reserve Bank prepared and issued its own ‘underlying inflation’ index series— an adjustment of the CPI excluding some influences on prices such as credit services, some commodity price shocks (eg oil) and some government charges.

This series was discontinued before the release of the December 1997 quarter CPI. On 15 December 1997 the Reserve Bank signed its new Policy Targets Agreement with the government. The series being used to monitor price stability is the CPI excluding Credit Services, one of Statistics New Zealand's analytical series.

Superannuitants Price Index (SPI). This measures changes in the level of prices of goods and services purchased by private New Zealand superannuitant households. The quarterly SPI is produced in recognition of the need for more regular and specific information on the spending patterns of superannuitant households. Two sub-indexes are also published, the SPI for All Households in Rented Accommodation and the SPI for All Households Living in their Own Accommodation. At this stage, the index is published as a research index and released as part of the CPI.

The SPI for All Households for the June quarter 1997 was 1.8 percent higher than in the June 1996 quarter. The increase was dominated by a rise in the cost of housing, which was a similar factor in the 1.1 percent rise in the CPI over the same period.

From the June 1996 to the June 1997 quarter, the SPI for All Households Living in their Own Accommodation increased by 1.7 percent, while the SPI for All Households Living in Rented Accommodation increased by 2.6 percent. The increase in rental cost accounted for the difference between the two series.

Table 26.2. SUPERANNUITANTS PRICE INDEX (SPI)1

 Superannuitants Price IndexConsumers Price Index All Groups
All Superannuitant HouseholdsHouseholds
in Rented Accommodationin their Own Accommodation

1Base: December 1993 quarter (=1000)

Source: Statistics New Zealand

Quarterly
1994—December1020103610181028
1995—March1023104410211040
         June1031105210281050
         September1033106210291052
         December1038107110351058
1996 March1043108110381063
         June1052109010481071
         September1057109810521077
         December1066110710611085
1997—March1067111310621082
         June1071111810661083
         September1078112610721088

Keeping the CPI up to date and relevant—the 1998 revision

Changes recommended by the 1997 CPI Revision Advisory Committee. As part of the work on the five-yearly review of the CPI, a Revision Advisory Committee was convened by the Minister of Statistics in 1997. Its tasks were to advise on the purposes of the CPI and the methods needed to achieve an index consistent with these purposes.

The committee recommended some fundamental changes in the approach to the Consumers Price Index. It said that Statistics New Zealand should publish the following set of three measures of consumer price change:

  • an acquisition-based index excluding interest payments which would be regarded as the official CPI;

  • an actual outlays series which would include interest payments; and

  • a consumption-based series.

It recommended that these new measures be introduced when a suite of real disposable income indexes is also available for publication.

The thrust behind the committee's major recommendations was the belief that a single measure of price change such as the CPI cannot satisfactorily meet all the needs of its users. The proposed new measures of price change will each be constructed on a different conceptual basis to enable a greater variety of CPI user needs to be met.

The committee also recommended that the CPI should continue to be a price index of goods and services purchased by private New Zealand households. For example, the CPI is to continue to include home-ownership costs. The majority of the committee's recommendations confirm the essential soundness of the current CPI and the way it is calculated.

CPI and RESERVE BANK “UNDERLYING INFLATION”
Change from previous quarter

Enjoying shopping in a Christchurch supermarket.

FOOD
Change from previous quarter

HOUSING
Change from previous quarter

More detailed information on the recommendations is available in the Report of the Consumers Price Index Revision Advisory Committee (1997). Membership of the committee covered representatives of producers and consumers, employers and employees, major government policy agencies and financial markets.

Implementing the 1998 revision. Statistics New Zealand aims to introduce the revised index in the March 1999 quarter. The new base period for the index (the period which is given an index value of 1000) will be the December 1998 quarter.

Updating base weights: The base weights of the index will be updated to reflect the changing spending patterns of the New Zealand consumer. These weights indicate the relative importance of items purchased by households. The 1997-98 Household Economic Survey will provide most of the information for this. In some areas, estimates of expenditure are calculated using other information as well. This is particularly true for items that are rarely purchased (housing) or easily forgotten (sweets, newspapers, alcohol, etc).

Updating price collection methods: All the surveys which collect prices for the CPI need to be reviewed and updated on a regular basis. The review of these surveys covers both items for which prices are collected (all of which need to be checked), the sample of outlets from which the data is collected and the method by which we collect the data.

Ongoing reviews of the CPI. As well as the major revision, Statistics New Zealand has an ongoing annual review process. The role of the annual review is particularly important because of constant changes in shopping habits. For example, the outlets from which we collect prices are reviewed each year. New products may also be introduced at the annual review as well as other minor changes to other elements of the CPI.

Analysis of price movements

The following section discusses the price changes in New Zealand as measured by the CPI over the year to June 1997.

In the late 1970s the CPI recorded large annual increases. These high increases continued through most of the 1980s (except in 1984 when the CPI increased by only 4 percent). In the late 1980s the annual increase in the CPI fell to below 5 percent marking the beginning of single-digit increases. These lower increases have continued through the 1990s. In the year to June 1997 the CPI increased by 1.1 percent over the year. This follows a rise of 2.0 percent in the year to June 1996 and 4.6 in the year to June 1995. Preceding these increases were three consecutive June years in which the CPI rose by 1 percent or just over 1 percent.

Table 26.3. CONSUMERS PRICE INDEX—ALL URBAN AREAS COMBINED BY GROUP

Year ended JuneAll groups*FoodHousingHousehold operationsApparelTransport actionsTobacco and alcoholic drinksPersonal and health careRecreation and educationCredit services

Base: December 1993 quarter (=1000)

Source: Statistics New Zealand

1988824818..867855920709......
1989862865..892890906771......
19909259628909409259288627998701245
19919659939409629629639048539301297
19929769869419749799739719499601147
1993988100295298798999598610109811029
19941001100010081000994996100110031006992
1995103410081083100498610041021101710371148
1996106110141142101097610021060104010801254
199710821040118110219729931098107611101266
Quarter
1994 Mar100010031011999989989100110051010984
Jun100499310301001993997100710091019960
Sep10169971061100398710031009101310221012
Dec102810041076100399210091016101410321092
1995 Mar104010111093100398010011023101910431215
Jun105010181102100598710051035102210501273
Sep105210051121100897610041044102610621259
Dec105810141134100797710031053103410681262
1996 Mar10631014114910109719991069104410911241
Jun107110231164101697910011073105410971254
Sep10771031117110159719961087105811041299
Dec108510371179102097810021094107611021311
1997 Mar10821044118310229679931102108111121240
Jun10831048119210269729821108108711211212
Sep10881051120910329739761125108611281192

Food. The all food group increased by 2.4 percent over the year. Fruit and vegetables prices increased by 5.2 percent over the year to June 1997. Price increases for meat, fish and poultry, grocery foods and restaurant meals, and ready-to-eat foods also contributed to the overall increase of the sub-group.

The graph shows that the prices of fruit and vegetables (fresh in particular) fluctuate depending on the time of the year. The prices of fresh fruit and vegetables are given special treatment to reduce the influence of normal seasonal price fluctuations. This treatment does not completely eliminate the effects of seasonal fluctuations if shifts in seasonal patterns occur.

The table shows food prices in each of the June months for the last five years. These weighted average prices of selected items are used in the calculation of the CPI 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 as the quantity and price of any good will differ from shop to shop and over time.

Table 26.4. RETAIL PRICES OF SELECTED FOOD ITEMS

ItemUnitJune month
19931994199519961997

1Changed from 1 litre to 2 litre in December 1993.

2Changed from 440g to 425g in October 1996.

3Changed from 275g to 250g in October 1996.

Source: Statistics New Zealand

 $
Apples, eatingkg1.971.131.211.181.64
Bananaskg2.131.461.651.951.89
Orangeskg3.282.702.462.602.53
Cabbageskg0.621.181.300.820.78
Carrotskg1.010.981.221.071.26
Potatoeskg0.770.661.050.650.79
Peaches, canned425 g1.881.801.751.821.84
Peas, frozenkg2.042.021.911.952.10
Beef, blade steakkg9.889.498.517.628.23
     porterhousekg15.5615.1714.5813.5214.26
     rump steakkg11.6812.0911.3810.6111.25
     prime rib, rolledkg8.558.377.877.407.86
     mincekg7.266.805.875.365.92
Hogget, forequarter chopskg7.477.456.586.817.53
Pork loin, chopskg11.2010.3910.069.9810.36
Bacon, middle rasherskg16.6814.6514.4314.3314.26
Sausages, beefkg4.304.104.064.084.15
Salmon, canned210g3.372.482.141.841.77
Chicken, frozen no 8each7.246.946.837.076.93
Milk, plastic bottle1211.212.362.372.582.62
Butter500 g1.871.881.861.962.01
Cheese, Cheddarkg7.986.916.586.777.05
Bread, white slicedeach1.791.551.521.721.66
Cake, light fruit450 g4.023.984.064.024.01
Breakfast flake biscuitskg4.103.813.874.184.28
Flour, white1.5 kg1.781.501.511.601.71
Rice, white long grain500 g0.811.371.341.351.40
Honey, creamed500 g2.292.272.282.462.67
Coffee, instant100 g3.093.014.884.534.82
Tea bags1002.292.582.552.692.76
Margarine500 g1.821.751.791.761.76
Tomato sauce, canned600 g2.242.222.222.202.40
Spaghetti, canned2425 g 1.231.311.331.40
Sugar, white1.5 kg1.961.881.741.731.87
Lemonade1.511.721.511.451.471.52
Ice-cream, vanilla213.243.073.003.223.36
Chocolate, block3250 g 2.993.003.433.35
Hamburgereach2.382.402.412.462.55
Meat pieeach1.631.952.002.082.13

Housing. The housing group includes dwelling rents, costs of purchasing and constructing a new home, upkeep costs of a home, insurance and local authority rates. In the June 1997 year the housing group rose by 2.4 percent with increases in both dwelling rentals and home ownership costs.

Household operation. The household operation group of the CPI includes energy, household appliances, furnishings, supplies and services. This year the household operation group rose by 1.0 percent.

Apparel. The overall cost of apparel fell over the year. Falls in the prices of men's and children's clothing and footwear, and clothing fabrics were only partially offset by price increases in infants' clothing and women's clothing and footwear.

Transportation. This year, falls in the cost of buying used and new cars contributed the most to the 1.9 percent decrease in the Transportation Group. Within public transport, a large fall in prices for domestic air travel contributed to the overall decrease in transportation costs.

The overall cost associated with running a motor vehicle was higher, due to rises in the cost of vehicle insurance and parking fees. The price of petrol rose slightly over the year.

Tobacco products and alcoholic drinks. The price of tobacco products and alcoholic drinks rose by 3.3 percent during the year with the prices of cigarettes, tobacco, wine, beer, spirits and liqueurs rising. Taxes on tobacco and alcohol are adjusted annually, in line with the CPI. Tobacco tax is adjusted on 1 December while alcohol tax is adjusted on 1 June.

HOUSEHOLD OPERATION
Change from previous quarter

APPAREL
Change from previous quarter

TRANSPORT
Change from previous June quarter

TOBACCO & ALCOHOL
Annual change

PERSONAL & HEALTH CARE
Annual change

CREDIT SERVICES
Change from previous quarter

Personal and health care. Prices in the personal and health care group overall rose by 3.1 percent over the year. Health care increased by 5.3 percent due to increases in all fees charged in this subgroup, including general practitioners' fees, medical specialist fees and medical insurance fees. In comparison, prices within the personal goods and services subgroup rose by only 0.7 percent (this subgroup includes hairdressing, cosmetics, personal accessories and services etc.).

Table 26.5. CONSUMERS PRICE INDEX SUBGROUPS—ALL URBAN AREAS COMBINED

QuarterFruit and vegetablesMeat, fish and poultryGrocery foods, soft drinks and confectioneryRestaurant meals and ready-to-eat foodDwelling rentalsHome-ownershipEnergyHousehold appliances and furnishingsHousehold supplies and servicesClothingFootwear
Base: December 1993 quarter (=1000)
1992 Mar1069939983986948934916982997976985
         Jun10509389849909539389199919999861001
         Sep112395899199495593892499210029821001
         Dec108999099099595694392999310049831008
1993 Mar11609909929939649459369941003981990
         Jun100298899799797596697310029959971012
         Sep1046100299610019899899931004999993994
         Dec10001000100010001000100010001000100010001000
1994 Mar106298299710021029100610131000990990982
         Jun101896699210041086101410341004981992998
         Sep102995899810091131104110461003982986991
         Dec10719601000101411351060104910079769871015
1995 Mar1145933100410191157107510531001978978992
         Jun121992110011024117110821078996975984999
         Sep11498989971031122110931102994973972995
         Dec113091610131030123211061106990973975988
1996 Mar108090310291035125211201119981980973965
         Jun108690210431043125911381142977987980974
         Sep109991510491047127911411153965990974956
         Dec1109923105510501291114811599621001980970
1997 Mar1131931105810561302115011709611002972945
         Jun1143926106310611315115711949511007976952
         Sep1110935107210671339117312079421026979948
QuarterPublic transportPrivate transportTobacco productsAlcoholic drinksPersonal goods and servicesHealthcareStationery books. magazines and news papersLeisure and recreationEducation and childcareCredit services

Base: December 1993 quarter (=1000)

Source: Statistics New Zealand

1992 Mar103596197497694610489419749231117
         Jun104296497697695510659659828951089
         Sep100698198397596710669829858951049
         Dec98199898598697610689869928981025
1993 Mar966100599299098010429639939081014
         Jun99110099949929859989889989961028
         Sep992999100099699510029969969971023
         Dec1000100010001000100010001000100010001000
1994 Mar9709929991002999101196510021093984
         Jun101499399910101001101699510041094960
         Sep10259991000101310001025997100910951012
         Dec103610041003102199710301015101810951092
1995 Mar10129981013102710031034996102711471215
         Jun105599510181043100510391020103011511273
         Sep107898810321049100510461048103711551259
         Dec105799110361060101210551081103611551262
1996 Mar101099710861062102110661062104512681241
         Jun103499410951064103010781108103612721254
         Sep101299311031080102710871120104312741299
         Dec105599111121086103111201120103912761311
1997 Mar100998911351089103311271066104013901240
         Jun102797211361095103711351111103613961212
         Sep104196211521113104611241124104313961192

Recreation and education. The price of recreation and education services rose by 2.2 percent over the year. Education and childcare costs rose 9.7 percent this year mostly due to increased costs for tuition and examinations. Overall, leisure and recreation costs were unchanged over the year, despite falling costs for home computers and software.

Credit services. Credit services includes mortgage services, with a far lesser weighting given to credit and store cards and hire purchase. In the June 1995 year, credit services rose 32.6 percent as lending institutions raised their interest rates on residential mortgages. However, for the year to June 1996, the credit services group fell 1.5 percent, as mortgage interest rates fell. In the year to June 1997, credit services group fell by 3.3 percent due solely to a fall in mortgage interest rates. Over the same period, hire purchase costs increased and store card interest and fees showed no change.

Table 26.6. RETAIL PRICES OF SELECTED ITEMS

CommodityJune quarter
19931994199519961997
Source: Statistics New Zealand
 $
Paint, white, 4 163.6860.0859.1864.4164.70
Concrete blocks, per 100272.77274.72279.09279.57269.44
Gib-type board, per sheet17.4518.0817.8718.0317.80
Spouting/guttering, per 3 m15.7316.9418.4718.7919.43
Electric range1.325.281,361.471,340.841,408.061309.97
Plug box16.0415.4815.8015.0413.29
Television set, colour1,044.05992.99887.43705.02634.78
Electric hand drill, cordless170.53231.96222.46225.46205.98
Carpet. 100 percent wool122.19111.50116.38114.94111.65
Sheet, single29.9923.1722.4122.3322.22
Household broom18.3418.8017.9117.2816.58
Garden hose, 20 m21.7421.7121.3222.8223.63
Bleach. 1.5 12.622.602.582.582.57
Detergent, dishwashing, 900 ml.3.102.822.973.163.16
Soap powder, 1 kg4.053.904.044.264.33
Cling food wrap. 15 m1.471.471.551.461.60
Electric light bulb. 100 watt1.091.031.051.041.03
Batteries. D size, twin pack2.892.832.942.962.90
Postage, letter, standard post0.450.450.450.400.40
Public broadcasting fee110.00110.00110.00110.00110.00
Veterinary services, cat68.1666.8268.2869.3570.94
Sweatshirt, men's31.2836.5237.0436.1337.01
T-shirt, men's14.4114.2513.6514.1414.31
Trackpants, men's61.3138.5536.6835.3934.42
Socks, men's7.488.178.198.288.35
Slip, half23.7023.9822.9723.0723.84
Pantyhose, 15 denier4.404.254.264.024.04
Jeans, boy's46.9535.9933.9334.1032.16
Shorts, boy's16.2215.0815.2215.9715.43
Wool, 50 g4.544.064.014.194.05
School shoes72.6880.3177.8076.5569.33
Warrant of fitness14.4419.1820.6221.4522.90
Cigarettes, filter5.376.536.636.897.16
Whisky. 1125 ml41.7740.2139.7239.5140.38
Razor blades, cartridge, five pack5.725.615.725.946.24
Tissues, facial2.662.552.652.712.73
Toilet paper, four rolls2.822.812.822.903.12
Hairdressing, men's13.8713.3114.1214.6615.15
Hairdressing, women's30.1431.5133.6534.4435.62
Soluble aspirin, packet of 242.382.302.352.402.46
Envelopes, packet of 201.441.471.431.641.68
Newspaper0.570.580.580.680.70
Developing and printing film, 24 colour prints16.9617.8618.0417.8517.53
Audio cassette, from top 1021.1820.8320.9221.0721.18
Tennis balls, can of four19.8619.4918.7818.1318.52
Rugby club subscription, annual75.0270.2271.7073.8374.89
Tennis club subscription, annual164.51169.28150.49154.50154.85

North and South Islands

Over the year to June 1997, prices rose by 1.1 percent in the North Island. The personal and health care group (up 3.5 percent) and tobacco products and alcoholic drinks group (up 3.5 percent) had the largest increases this year while the credit services group recorded the largest fall (down 3.9 percent).

Over this period, prices rose by 1.0 percent in the South Island. Costs for housing (up 2.7 percent), tobacco products and alcoholic drinks (up 2.5 percent) and personal and health care (up 2.0 percent) recorded the highest increases. The transportation group (down 2.1 percent) and the credit services group (down 1.7 percent) were the only groups to record a fall.

Table 26.7. CONSUMERS PRICE INDEX—REGIONAL MOVEMENTS, YEAR TO 30 JUNE 1997

GroupAll centresNorth IslandSouth Island
Source: Statistics New Zealand
Food2.42.61.7
Housing2.42.32.7
Household operation1.00.91.1
Apparel0.7−1.10.3
Transportation−1.9−1.9−2.1
Tobacco and alcohol drinks3.33.52.5
Personal and health care3.13.52.0
Recreation and education2.22.22.1
Credit services−3.3−3.9−1.7
All groups1.11.11.0

CPI - REGIONAL CHANGE
Annual changes by group, 1997

CONSUMERS PRICE INDEX
International comparison

International comparisons

The following section discusses price movements in New Zealand as measured by the CPI over the year to June 1997, compared to price movements in the CPI in some other countries over the same period.

In the early 1980s New Zealand, like many other countries, experienced a rapid increase in prices of consumer goods and services. By the end of 1982 many countries had experienced some reprieve from rising prices, but New Zealanders continued to suffer large price increases until the late 1980s. It is a different situation in the 1990s, with New Zealand showing annual increases below 5 percent since 1991.

The annual percentage change in the CPI (excluding housing and credit services) for the seven countries tabled below, provides a comparison of the movement in consumer prices in the 1997 year. Over this period, the CPI increased by less than 3 percent in all countries shown.

Australia—Increases in consumer prices were recorded for alcoholic drinks, meals and take-away foods, automotive fuel, furniture and floor coverings, household supplies and services, cigarettes and tobacco, and hospital and medical services. The only significant price fall was recorded for motor vehicle costs.

Canada—Significant price increases were recorded for travel, accommodation, air transportation, tuition fees, car registration fees, insurance premiums, cigarettes, magazines and periodicals, while prices fell for recreation equipment, petrol, rental and leasing of automobiles and furniture.

United Kingdom—Overall increases in prices for the year to June 1997 were recorded for alcohol and tobacco, motoring expenditure, leisure, catering, personal goods and services, travel and household services. Food costs, and fuel and light costs were down for the year.

United States of America—Over the year to June 1997, overall price increases were recorded for other goods and services, medical care, food and beverages, entertainment, and apparel and upkeep. Although the table shows direct comparisons between the movements in price levels experienced by domestic consumers in each country, the indexes do not show how expensive it is to live in one country compared with another.

Table 26.8. INTERNATIONAL COMPARISON OF QUARTERLY CONSUMERS PRICE INDEXES EXCLUDING HOUSING AND CREDIT SERVICES

QuarterNew ZealandAustraliaCanadaJapanGermanyUnited KingdomUnited States
Source: Statistics New Zealand
1993 Mar995986988991988975983
Jun9979899901000996 R995989
Sep99999599610051002R998992
Dec1000100010001000100010001000
1994 Mar999100499310011011 R10031004
Jun1001101199010051015 R10171011
Sep100410179961001102210161020
Dec100910229981006102010211024
1995 Mar101110331012998102610301031
Jun1017104510221002103010431042
Sep101610581024997103310461045
Dec102010671024997102910521049
1996 Mar102410731030993103610581058
Jun1031108010421002104010711070
Sep10331084R1044997104410731074
Dec104010921052999104210811083
1997 Mar104111001059996105010841088
Jun1043110210641029105210941092
Sep1047      

26.2 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 price changes in the production sector of the economy. The Consumers Price Index (CPI), on the other hand, measures price changes in the household sector of the economy. The PPI has two types of index: the ‘output’ indexes measure changes in the prices received by producers, and the ‘input’ indexes measure price changes in the costs of production (excluding labour and capital costs).

Uses of the PPI. The PPI can be used in the analysis of inflationary trends, in economic forecasting and in estimating economic growth. It can be used to measure changes in production in constant dollar values. The index is also widely used to determine the increases allowable under escalation clauses in commercial contracts.

Coverage. The index is calculated quarterly from price quotes which are collected mainly by postal survey. Approximately 13,000 individual commodity items are surveyed from about 3,000 respondents. Prices are generally collected each quarter with the price on the 15th of the middle month of the quarter being measured. Prices may be obtained monthly or annually depending on the nature of the item.

The prices used to calculate the output indexes are those prevailing at the “factory door” (price received by the producer). The output indexes cover: primary products; manufactured goods: revenue from renting and leasing; provision of services; capital work undertaken by own employees; and margins on goods purchased for resale.

Excluded from the outputs indexes are: interest and dividends; royalties and patent fees; receipts from insurance claims; government cash grants and subsides; and GST and other indirect taxes.

The input indexes, which measure price changes in the cost of production, cover: materials; fuels and electricity; transport and communication; commission and contract services; rent and lease of land, buildings, vehicles and plant; business services; and insurance premiums less claims.

Excluded from the inputs indexes are: wages and salaries; capital expenditure; ACC levies and other government charges; rates; royalties, patent fees; and bad debts and donations.

Classification and calculation. The format of the PPI is based on the economic activities assigned in the Australian and New Zealand Standard Industrial Classification (ANZSIC). The indexes measuring changes in input prices are published for 24 industry groups, including several non-market industries. Output indexes are published for the 21 market-oriented industry groups.

The weightings applied to the prices collected are determined by the relative importance of commodities and businesses within the industry or industry group. Information from various economic surveys and censuses is used to determine the weightings. 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 is calculated at several different levels. An example is the Fishing and Hunting index (see diagram on next page). At the lowest level, indexes measuring commodity prices are calculated, eg Feral deer products, Noxious animal control. These commodity indexes are then combined to form sub-industry indexes such as Hunting and Trapping. The sub-industry indexes include the commodities that are predominantly produced in the industry plus non-representative output and capital accumulation. The sub-industry indexes are then combined to form published industry indexes such as Fishing and Hunting which are re-expressed to a base quarter of December 1982. The Fishing and Hunting index also forms part of the All Groups index, also re-expressed to a base quarter of December 1982.

PPI redevelopment. Currently a programme to redevelop all the industry and group indexes is under way. The entire PPI is being reviewed, using the latest available information to consider: what prices are surveyed, how the prices are surveyed, and the relative importance of the items in the indexes, and of the organisations in the survey. The work began in November 1995 and is expected to be completed in 1998.

PRODUCERS PRICE INDEX
Outputs - all market groups

Table 26.9. PRODUCERS PRICE INDEX—INPUTS1

Industry group (ANZSIC group)Quarter ended
Sep 1996Dec 1996Mar 1997Jun 1997Sep 1997Dec 1997

1Base: December quarter 1982 (= 1000). Input prices are producer's prices and include commodity taxes paid and subsidies received by the producer.

2Includes industry groups 5-13.

3Includes industry groups 1-21.

Source: Statistics New Zealand

1 Agriculture170117131728172917441755
          Sheep and beef farming169317111739174517661788
          Dairy farming173117281729171417211725
          Horticulture farming164016481649166616691675
          Cropping and other farming169417141736173217481747
          All farming170117131729173117461758
          Agricultural contracting165016651662165516621663
2 Fishing and hunting152915441549153615351558
3 Forestry and logging182818121817180818161821
4 Mining and quarrying163316411651164116531658
5 Food, beverages and tobacco16151620161116301600R1626
          Primary food processing155415701569159415421575
          Other food processing16181602158215881597R1610
6 Textiles, apparel and leather157115541541154915781556
7 Wood and wood products220921912184218121922200
8 Paper, printing and publishing179917981744173717451745
9 Chemicals, petroleum and plastics125112661283124612481249
10 Non-metallic mineral products183418321839184118521855
11 Basic metals1620160616001592160-91624
12 Machinery and metal products181717931787177117921798
13 Other manufacturing182718181816181218211826
14 Electricity, gas and water1899R1783R1787180217961801
15 Construction188218921893189819021906
16 Trade, restaurants and hotels208521002106209221112129
          Wholesale and retail trade214621622168215421742191
          Hotels, restaurants, takeaways193419421947192919551976
17 Transport and storage176417741787178017911798
          Road transport152515411544152815431552
          Other transport and storage185818661882187818881894
18 Communications162116261631163916451623
19 Insurance and financing236223682377238023972514
20 Ownership of dwellings233323352348235123742397
21 Community and personal services198619801982196919882002
22 Central government187818801883188118871895
23 Local government184518421827182418371844
24 Private non-profit services208020912096209321042118
All manufacturing groups2165316481640163516401645
All market groups3183218351835183218411850
All industry183718391840183618461855

Table 26.10. PRODUCERS PRICE INDEX—OUTPUTS1

Industry group (ANZSIC based)Quarter ended
Sep 1996Dec 1996Mar 1997Jun 1997Sep 1997Dec 1997

1Base: December quarter 1982 (=1000).

2Includes industry groups 5 to 13.

3Includes industry groups 1 to 21.

Source: Statistics New Zealand

1 Agriculture155515721575155815511570
2 Fishing and hunting211521482132212021052115
3 Forestry and logging379037643774379439894020
4 Mining and quarrying126212981333130813021305
5 Food, beverages and tobacco176617801788178817371772
          Primary food processing156015851598160415171566
          Other food processing206020552053204320612067
6 Textiles, apparel and leather155915481541154315581543
7 Wood and wood products218021702166215621582154
8 Paper, printing and publishing189418891824180618351836
9 Chemicals, petroleum and plastics140714021418142614121432
10 Non-metallic mineral products177017721775177617711775
11 Basic metals149614651503152415441563
12 Machinery and metal products197419741969196319641966
13 Other manufacturing177717741769177217641746
14 Electricity, gas and water2053 R1990R2000202620222036
15 Construction18921900R1896189419001908
16 Trade, restaurants and hotels185318591854184618551856
          Wholesale and retail trade179017961788177917861786
          Hotels, restaurants, takeaways212521352153215421722189
17 Transport and storage150015121499150715051507
          Road transport164916511654164116161616
          Other transport and storage141314301411142714351436
18 Communications145614601462145814581448
19 Insurance and financing254025262565258026292679
20 Ownership of dwellings327632763296331733723380
21 Community and personal services229222972303230623412360
All manufacturing groups2176317621760175817481759
All market groups1191419171920191919251938

26.3 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.

Wellington City Council's landfill store sells bargains usually destined for the tip at Happy Valley. This satisfies the second level of the waste management hierarchy—reuse products rather than discard them.

Table 26.11. CAPITAL GOODS PRICE INDEX1,2

Asset groupQuarter ended
Jun 1996Sep 1996Dec 1996Mar 1997Jun 1997Sep 1997

1Base: December 1989 quarter (=1000). Output prices are factory door prices, or as close to this level as it is a firm's practice to price, before addition of commodity taxes or deduction of producer commodity subsidies.

2This 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.

Source: Statistics New Zealand

Residential buildings134013411345133413371348
Non-residential buildings110011011104110711031099
Other construction112411191115111011031106
Land improvements113011311139114211371135
Transport equipment119311871186117211551150
Plant, machinery, and equipment111511131112110311031105
All groups113511331132112611211120

Contributor

  • 26.1-26.3 Statistics New Zealand.

Further information

Key Statistics. Statistics New Zealand (monthly).

Report of the Consumers Price Index Revision Advisory Committee (Parl paper G.28a, 1997).

Articles on prices in earlier Yearbooks

Retail prices in New Zealand with special reference to the Consumers' Price Index (1947-49 Yearbook, p998-1016).

Revision of Consumers Price Index 1974 (1975 Yearbook, p1039-51).

Consumers Price Index 1980 revision (1981 Yearbook, p975-81).

Short articles in the 1990 Yearbook:

Price changes over a century (p614).

[The 1912] Royal Commission on the Cost of Living (p616).

A tangle of price controls (p623).

Chapter 27. Money and banking

One of the recalled two dollar coins.

27.1 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 which 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 Amendment Act 1986 established a framework for the registration and supervision of banks. This act contained provisions enabling suitably qualified financial institutions to become ‘registered banks’. At the end of March 1998 there were 20 registered banks, 4 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, two Deputy Governors, and between four and seven non-executive 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 Treasurer;

  • 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 (MPS) 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.

Recycling in high places. A chair made out of the timbers of “Plimmer's Ark” adorns the Bank of New Zealand boardroom on the 24th floor of the BNZ Building in Wellington.

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 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.

A new approach to the supervision of registered banks was introduced on 1 January 1996. This involves a balance between Reserve Bank regulation of banks' risk positions, and enhanced market disciplines on banks through a new public disclosure regime. Under the new framework, banking supervision involves:

  • A requirement that banks hold capital of not less than 8 percent of their risk weighted exposures. This is in accord with standard international requirements.

  • A limit on the amount which a bank may lend to “connected persons” (i.e. generally a party which is able to control or significantly influence the bank).

  • A requirement for each bank to publish a public disclosure statement on a quarterly basis. The disclosure statements must contain a comprehensive range of financial information on the registered bank and the banking group of which it is part. The bank's directors are required to sign each disclosure statement. Disclosure statements are required to be available in bank branches.

The disclosure regime strengthens existing market disciplines on banks and provides a sharpened focus on the role of bank directors in overseeing the management of banking risks. The disclosure regime also provides depositors and other creditors of banks with an improved capacity to make decisions as to where they will place their money. The introduction of the disclosure regime has enabled the Reserve Bank to reduce the extent of regulation imposed on banks.

Table 27.1. 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
Crown Settlement institutions1Settlement account2Advances to Treasury
 $(million)
19931,6742,9491-1.285-1,082
19941,2542,900--850-1.176
19951,1132,889--773-1,250
19961,295 R3,178R1-682-1,249
19971,1323,610--749-1,236
As at 30 JuneDenominated in New Zealand dollars
Investment in NZ
Government securitiesOtherFixed assets and inventoriesOther assets3Total assets

1Includes securities purchased under agreements to re-sell, and one day interbank advances.

2Government bank accounts.

3Includes sundry debtors, term loans and advances to staff.

Source: Reserve Bank of New Zealand

19931,280272128,359
19941,247-70117,508
19951,519-6197,614
19961,982-6178,455R
19972,042-5968,834
  • The Reserve Bank monitors each bank on a quarterly basis, principally using the bank's public disclosure statement. It also consults regularly with the senior management of each bank.

  • The Reserve Bank has a wide range of powers available to it in the Reserve Bank of New Zealand Act to respond to a bank distress or failure situation. The powers are intended to enable the Reserve Bank to minimise damage to the financial system that could result from the financial distress or failure of a bank. The Reserve Bank does not seek to protect depositors per se or to prevent a bank from failing.

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.

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, and 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 declined between 1990 and 1995 as a result of this process (falling from a peak of 23 as at August 1990 to 15 as at July 1995). At 31 March 1998 there were 20 registered banks in New Zealand. The number of banks per capita is still relatively high by international standards, despite rationalisation. In part this reflects the open nature of the registration regime. The non-bank financial sector following deregulation is small compared with that in other countries, for example, Australia.

The New Zealand banking system is characterised by a high degree of foreign ownership, particularly Australian ownership. Around 99 percent of the assets of the New Zealand banking system are under the ownership of a foreign bank parent, with approximately 70 percent being under the ownership of an Australian bank parent. This provides a source of strength for the system, giving local banks access to capital resources and banking expertise.

The registered banks operating in New Zealand as at March 1998 are: ABN AMRO Bank NV, ANZ Banking Group (New Zealand) Ltd, ASB Bank Limited, Bank of New Zealand, Bank of Tokyo-Mitsubishi (Australia) Limited. Bankers' Trust New Zealand Ltd, Banque Indosuez New Zealand Branch, Banque Nationale de Paris, Barclays Bank PLC; BNZ Finance Limited; Citibank NA. Countrywide Banking Corporation Limited. Deutsche Bank AG, The Hong Kong and Shanghai Banking Corporation Ltd, Kookmin Bank, The National Bank of New Zealand Ltd, Primary Industry Bank of Australia Ltd, Rabobank Nederland, TSB Bank Limited, Westpac Banking Corporation.

Ten of the 20 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.

Table 27.2. LIABILITIES OF THE RESERVE BANK

As at 30 JuneDenominated in foreign currencyDenominated in New Zealand dollars
Current1Long Term2Allocations of SDRsReserve bank billsGovernment3
 $(million)
19921103,8303751,127517
19933463,9113671,056833
19942603,5463471,132264
1995723,5963341,241280
19963813,6703011,249535
19975953,5862921,236608
As at 30 JuneDenominated in New Zealand dollarsOther liabilities5Capital and reservesTotal liabilities
Settlement InstitutionsOther4Currency in circulation

1Overseas liabilities.

2Domestic liabilities.

3Includes Crown settlement account.

4Includes IMF number 1 account and staff deposits.

5Includes accounts payable.

Source: Reserve Bank of New Zealand

 $(million)
19921401,28383587,601
19933651,283324628,359
19941741,413304417,508
19953581,516294857,614
199618281,59955498,335
19971461,6651433948,566

Access to branches and services. At 31 December 1997 there were 1,094 bank branches. New Zealand still has a high ratio of branches per customer with one branch for about every 3,400 people.

Electronic banking systems enable 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 although there has been some rationalisation in the last year. There were 1,513 bank-owned ATMs in New Zealand at 31 December 1997, that is one machine for about every 2,500 people.

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 the growth of the network has since been rapid. At December 1997 there were 59,952 EFTPOS terminals in use in New Zealand at supermarkets, service stations, liquor markets and a range of other retail outlets.

Credit cards provide an increasingly popular means for people to buy goods and services without having to handle cash. There are up to 1.9 million cards on issue nationally.

Industry self-regulation. In 1992 the New Zealand Bankers' 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. A second edition of the code was issued in November 1996 following a comprehensive public review. The code is linked to an independent external complaints review process, the Banking Ombudsman scheme, which was operational from July 1992 (see separate article).

Table 27.3. LIABILITIES AND ASSETS OF M3 FINANCIAL INSTITUTIONS

ItemAs at June quarter
1994199519961997

1Includes trade creditors/debtors, accounts payable/receivable, and items in transit, timing and statistical adjustments.

2Any 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

LiabilitiesNZ$(million)
NZ dollar funding—
     NZ residents65,62272,16783,10584,837
     Non-residents8,7329,96913,13713,202
            Total, NZ$ funding74,35382,13696,24298,039
Foreign currency funding—
     NZ residents2,1491,7042,6422,927
     Non-residents10,96710,3689,15713,461
     Total13,11612,07211,80016,388
Capital and reserves6,3906,0536,3216,274
Miscellaneous13,1373,8384,6665,644
            Total liabilities96,996104,098119,028126,345
Funding from associates12,72713,56413,048 
Unused committed borrowing lines and standby facilities available to surveyed institutions4223219821.284
Assets
NZ Government securities8,6326,2402,6053,400
(includes Treasury bills) NZ currency279277283330
Claims with the Reserve Bank1,1851,2551,2451,287
NZ dollar claims—
     NZ residents78,01987,305102,484108,015
     Non-residents9598621,5682,761
            Total, NZ$ claims78,97888,166104,053110,776
Foreign currency claims
     NZ residents2,9843,0622,6803,639
     Non-residents9649941,011509
            Total3,9474,0563,6904,149
Foreign (currency) fixed assets and equity investment2591004731
Shares (in NZ companies)1,2928511,947415
Fixed assets (in NZ)1,4991,9221,9892,040
Miscellaneous19261,2313,1693,919
            Total assets96,996104,098119,028126,345
Financial claims on associates22,5841,7141,8121,894

Plumber with Eftpos mobile, February 1997.

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, deregulation has seen a marked change in the operations of many of these institutions. There are currently only two formal categories of financial institutions—registered banks and other financial institutions. These other institutions operate in a range of areas, and can provide full banking services, or a subset of such services, as they choose. Only registered banks can settle at the Reserve Bank; non-bank institutions must do so through a registered bank as an agent.

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.

Table 27.4. FINANCE1: STATISTICAL SUMMARY

Statistical item1994/95 $(m)1995/96 $(m)Percentage change

1ANZSIC Subdivision K73.

2..C = suppressed for reasons of respondent confidentiality

Source: Statistics New Zealand, Annual Enterprise Survey 1995/96

Sales of goods and services2.249.62,618.916.4
Interest, dividends, donations, royalties, patent fees, insurance claims received and bad debts recovered16,490.717,923.28.7
Government grants and subsidies1.32.588.1
Other income including extraordinaries2,646.51,896.2−28.4
Total income21,388.122,440.74.9
            Total income adjusted for stocks21,388.122,440.74.9
Salaries and wages paid to employees1,304.61,450.911.2
Redundancy and severance15.5..C2..C
Salaries and wages to self-employed commission agents1.23.0146.2
Salaries and wages to working proprietors (SW to WPs)42.124.3−42.3
Levies paid to Accident Compensation Corporation14.317.622.9
Employer contributions to superannuation schemes46.842.8−8.5
Fringe benefit tax24.220.0−17.5
Purchases and other operating expenses2,081.72,399.015.2
Interest, donations, grants, royalties, patent fees paid and bad debts written off10,196.610,359.71.6
Indirect taxes (excluding FBT)14.017.424.2
Depreciation330.7331.50.2
Other expenses including extraordinaries2,764.01,836.7−33.5
            Total expenditure16,820.116,503.0−1.9
Net profit before extraordinaries, SW to WPs4,727.55,902.624.9
Net profit before tax, SW to WPs4,610.05,962.129.3
Purchases of plant, machinery, vehicles and equipment845.8514.6−39.2
Purchases of land and land improvements11.749.0319.6
Purchases of buildings and other construction41.392.8124.7
Total purchases of fixed tangible assets898.8653.7−27.3
Sales of fixed tangible assets365.5486.133.0
Shareholders funds or owners equity66,485.545,777.8−31.1
Current liabilities104,645.191,796.4−12.3
Other liabilities72,906.160,219.8−17.4
Total capital and liabilities244,036.8197,794.0−18.9
Fixed tangible assets3,120.42,534.9−18.8
Current assets80,060.260,117.8−24.9
Other assets160,856.2135,141.3−16.0
            Total assets244,036.8197,794.0−18.9
Ratios
Total income per FTE$885,942$893,103 
Net profit per FTE$195,824$234,915 
Current ratio76.5%65.5% 
Quick ratio..C..C 
Profit margin on sales210.2%225.4% 
Return on equity7.1%12.9% 
Return on total assets1.9%3.0% 
Liabilities structure27.2%23.1% 

Banking and finance industry statistics

The Reserve Bank publishes statistics on financial sector activity in the Reserve Bank Bulletin and Financial Statistics. Economic statistics on the banking and finance industry are collected by Statistics New Zealand via the Annual Enterprise Survey (see section 17.1, Business statistics), and table 27.4 provides a summary. Detailed information has been collected on the banking and finance industry as part of the “Rest of the Economy” census (see 17.1).

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).

Members of a Green Dollar exchange trading at a market stall in Wellington. Members also use a Green Pages directory of services offered by members to exchange goods or skills. There are about 50 Green Dollar exchanges in New Zealand

27.2 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 13 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 in December 1997 was $2,033 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, 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. The government has given the Reserve Bank responsibility for keeping inflation low, between 0 and 3 percent per annum. The specifies of that objective are set out in a written contract between the Reserve Bank and the Treasurer, called the Policy Targets Agreement. A change to the Policy Targets Agreement in December 1997 means that the bank's 0 to 3 percent target is now defined as being the Consumers Price Index minus the impact of interest rates (CPIX).

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.

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 (for example 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. These in turn influence 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.

Table 27.5. MONEY SUPPLY AND CREDIT AGGREGATES

Selected aggregatesAs at 31 March
1994199519961997

1Readily available money supply.

2Broad money supply, including term deposits.

Source: Reserve Bank of New Zealand

 $(million)
Monetary
     Notes and coin held by the public1,2171,3001,3971,501
     Transaction account balances9,5479,50210,20811,060
     Less, inter-institutional transaction balances271393953
     Less, government deposits18171724
            M1110,47510,74611,54812,484
     Other funds62,21770,77179,06083,968
     Less other inter-institutional funding6,81510,47612,08810,510
     Less government deposits5461,31557084
            M3265,33269,72678,44985,858
Credit
     Gross claims—
        (a) Surveyed institutions79,91586,29999,300108,821
        (b) Other3211
            Total79,91886,30199,301108,822
Less inter-institutional claims7,8569,04010,2959,662
            Private sector credit72,06277,26189,00799,160
Marketing and stabilisation1111
Claims on government—    
     (a) Surveyed institutions7,3324,5372,6352,287
     (b) Reserve Bank1,7322,3232,1612,767
     (c) Coins in circulation160169182191
            Total9,2247,0294,9785,245
            Domestic credit81,28784,291R93,986104,406

KEY MARKET RATES
Wholesale interest rates, monthly averages

The dairy owner (and family) with his Eftpos machine, February 1997.

Government securities market

The government currently sells three types of debt instruments to meet its core financing requirements:

  • Government bonds, which are a medium-term (generally 3 to 10-year) instrument paying a fixed coupon interest rate, and aimed at the wholesale market (mainly large institutional investors). Since September 1983, government bonds have 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 bonds, which are 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. Bonds are 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 bonds of comparable maturities.)

The secondary market in government securities (where existing debt instruments are bought and sold) is largely confined to government bonds. Turnover in the market has grown significantly since 1984, with transactions usually in multiples of $1 million with settlement on a two-day basis.

The Reserve Bank Registry maintains registers of securities for government, local authorities and other public bodies and several state-owned enterprises.

At June 1997 the value of total government securities registered was $28,878 million. Of this total $28,410.9 million comprised Treasury bills and other wholesale government bonds while government retail bonds of $459.1 million were 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 the government.

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.

Table 27.6. GOVERNMENT SECURITIES ON ISSUE

 As at
September 1994March 1995September 1995March 1996September 1996March 1997September 1997
Source: Reserve Bank of New Zealand
 NZ$(million)
Ordinary government bonds, by maturity:
     Less than or equal to 1 month316.7197.4--302.8--
     More than 1 month, up to 3 months--2,065.2-2,339.6--
     More than 3 months, up to 6 months1,860.1----2,254.6-
     More than 6 months, up to 2 years2,922.45,772.45,360.15,360.14,986.62,674.02,689.1
     More than 2 years, up to 5 years7,974.27,777.86,169.17,738.15,979.29,484.010,218.9
     More than 5 years8,905.47,689.29,135.29,159.29,619.16,714.37,564.3
Treasury bills by maturity:
     Less than or equal to 3 months4,253.03,426.03,649.02,928.04,151.03,407.04,489.0
     More than 3 months, up to 6 months1,665.01,776.01,700.01,700.02,295.01,625.01,914.0
     More than 6 months1,070.01,325.01,250.01,176.01,100.01,100.01,100.0
     Unclassified368.7402.3355.0443.0241.0279.0225.0
Index linked stock39.339.339.3163.0368.1525.5685.3
Government stock coupons260.7170.7170.7170.7170.7170.7170.7
Kiwi stock-------
Kiwi Bonds529.8555.0561.2538.7430.2438.4440.5
            Total internal public debt30,165.329,131.130,454.829,376.831,983.328,672.529,496.8

Recent changes in exchange rates. After declining since late 1990, the value of the New Zealand dollar stabilised in 1992, before gradually appreciating in 1993 and early 1994. The trade-weighted index measure of the exchange rate (TWI) appreciated by around 8 percent between December 1992 and July 1994. The rise continued through 1995 and 1996 to mid 1997, before starting to fall.

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.)

Between 1990 and 1992 the ‘real exchange rate’ declined by over 15 percent, resulting in a gain in competitiveness for those sectors of the economy which compete on international markets. Since then the real exchange rate has appreciated. Movements in the real exchange rate largely reflect changes in the nominal exchange rate. When New Zealand's inflation rate was below that of our trading partners, the loss in competitiveness from the appreciation in the nominal exchange rate was not as great as would otherwise have been the case. Our lower inflation rate partly offset the impact on competitiveness of the higher TWI.

Table 27.7. FOREIGN EXCHANGE RATES1

MonthUSA mid-rate US$/NZ$1UK mid-rate Stg/NZ$1Aust. mid-rate A$/NZ$1Japan mid-rate Yen/NZ$1Germany mid-rate DM/NZ$1Exchange Rate Index2 Base June 1979 = 100

1All exchange rates from April 1991 are representative market mid-rates at 9am.

2The 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 from 1 August 1994, the weightings are US 0.2411, Stg, 0.1005, Aust 0.3486, Yen 0,2544 and DMK 0,0554. The scale factor is 6305.

Source: Reserve Bank of New Zealand Bulletin, December 1997

1996—
August0.69190.44410.873974.981.021665.5
September0.69930.44730.884077.561.066566.7
October0.70530.43200.890880.511.066467.4
November0.70910.42190.874880.641.086566.9
December0.70600.41760.887082.071.098167.5
1997—
January0.68980.42750.901383.991.128468.2
February0.69100.42510.891983.371.166267.9
March0.69530.42690.886486.381.173668.5
April0.69380.42520.887087.991.197068.9
May0.69110.42160.901380.431.172067.6
June0.67890.40780.909977.811.181966.8
July0.65070.39840.874576.931.193964.9
August0.64320.39760.871976.621.153864.5
September0.63700.39550.886277.021.121864.7
October0.62200.37260.887474.621.067063.3

EXCHANGE RATE
Trade-weighted index

Contributors

  • 27.1-27.2 Reserve Bank of New Zealand; Statistics New Zealand; New Zealand Bankers' Association.

Special articles

Reserve Bank of New Zealand, Office of the Banking Ombudsman.

Further information

Annual report of the Office of the Banking Ombudsman.

Bank facts. New Zealand Bankers' Association (updated annually).

Banking in New Zealand. New Zealand Bankers' Association (3rd edition, 1997)

Explaining currency. Reserve Bank of New Zealand.

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 B.6).

Financial Statistics. Reserve Bank of New Zealand.

Getting it right: A guide to banking. New Zealand Bankers' Association (2nd edition 1997).

Monetary Policy and the New Zealand Financial System. Reserve Bank of New Zealand (3rd edition, 1992).

Monetary Policy Statement. Reserve Bank of New Zealand (six-monthly).

New Zealand Bankers' Association Annual Review. New Zealand Bankers' Association.

Key Statistics. Statistics New Zealand (monthly).

Report of the Registrar of Friendly Societies and Credit Unions (Parl paper B.18).

Report of the Reserve Bank of New Zealand (Parl paper B.16).

Reserve Batik Bulletin. Reserve Bank of New Zealand (quarterly).

Survey of New Zealand Financial Institutions. KPMG Peat Marwick (annual).

The impact of monetary policy on exporters (1996). Reserve Bank of New Zealand.

The impact of monetary policy on people (1997). Reserve Bank of New Zealand.

This is the Reserve Bank (1997). Reserve Bank of New Zealand.

Weekly Statistical Release. Reserve Bank of New Zealand.

Your bank's disclosure statement—what's in it for you? Reserve Bank of New Zealand.

Reserve Bank home page: http://www.rbnz.govt.nz

Chapter 28. Public section finance

‘Lock up’ in the vaults of the Reserve Bank.

28.1 Central government finance

The New Zealand financial management system is concerned with public sector performance in all its forms. Each element of the system reinforces the other elements to provide a comprehensive approach to implementing the government's strategy, facilitating high-quality decision-making by management, and enabling effective scrutiny by Parliament.

The system is designed to:

  • help the government to translate its strategy into action;

  • promote informed decision-making and accountability; and

  • encourage the state sector to be responsive and efficient.

The system achieves these aims through the planning, decision-making and scrutiny processes that culminate in the passing of the Government's Budget, the incentives for managing efficiently, and the reporting and feedback processes.

The system emphasises specifying expected performance that is within the control of managers, delegating the necessary authority to achieve high-quality performance, providing incentives to perform to the levels expected and measuring that achievement in a timely and consistent manner.

The system is continuously examined and refined to meet emerging needs and to ensure that any one element of the regime is not overly burdened. It has gained general acceptance by most players within the system and is seen as a model for other countries to follow.

Lines of accountability. Cabinet Ministers are formally responsible for specifying performance requirements of the chief executives of departments. Chief executives are in turn responsible for service delivery and have the necessary managerial decision-making authority delegated to them. There are incentives to perform and requirements for performance information, as a basis for monitoring and assessment.

This scheme was implemented by two Acts of Parliament: the State Sector Act 1988 and the Public Finance Act 1989. In 1994 it was supplemented by the Fiscal Responsibility Act which specifies principles of responsible fiscal management and requires the government to be transparent about its fiscal policy objectives (see box).

Roles and responsibilities. The State Sector Act sets out the roles and responsibilities of ministers and chief executives. These are further clarified by the annual performance agreements negotiated by these parties. These agreements:

  • link to the Strategic Result Areas (SRAs) of government—the critical medium-term objectives for the public sector that contribute significantly to the government's longer-term policy goals;

  • identify Key Result Areas (KRAs)—the major contributions each department will make to the government's medium to long-term objectives in the SRAs; and

  • specify the outputs to be delivered in terms of quantity, quality and cost.

Chief executives have a five-year contract term with tenure based on performance. They are appointed and employed by the State Services Commissioner, though Cabinet may veto appointments. They are then the legal employers of the staff in their departments. This gives the chief executives powers to hire and fire, set salaries and negotiate conditions of employment.

Financial management

The Public Finance Act 1989 governs the financial management regime. It:

  • removed many administrative controls;

  • defines the appropriation process in terms of outputs;

  • makes chief executives responsible for departmental financial management; and

  • establishes departmental and Crown reporting requirements.

These provisions are all designed to clarify the accountabilities of chief executives. Centralised input controls, previously established though Treasury Instructions, and the requirement to use centralised monopoly suppliers such as accommodation, vehicles, computers, office services, etc are no longer a feature of the New Zealand government management system.

Defining performance in terms of purchase and ownership interests. In chief executives' annual performance agreements, performance distinguishes between the government's interest in the performance of a department as the owner seeking efficient use of its resources on the one hand, and on the other as the purchaser of the services being either directly to the government or to third parties. As purchasers, ministers are looking for a given quality of goods and services at the best price.

Distinguishing these perspectives clarifies expectations — clear specification of the deliverables and a full accrual-based accounting of the resources consumed in their production is therefore essential.

Setting objectives. The New Zealand system focuses on outputs, rather than inputs or outcomes. Focusing on outputs means delivery of services is more able to be attributed to chief executives than any ultimate consequences (outcomes) of that service delivery.

Ministers and others have good information about the specific services supplied by a department, and what those services cost. Also, ministers can acquire services from sources other than the specific department, or reduce the amount of services being produced. Ministers can compare the performance of departments with other agencies in the public and private sectors. This encourages departments not to adopt a short-term, mechanistic approach to output production but rather to develop and market their services by strengthening their contribution to the government's strategic objectives.

The Budget process

The Fiscal Responsibility Act 1994 requires the government to clearly formulate and report its fiscal policy objectives. Using GAAP (Generally Accepted Accounting Practice) a number of principles have been formulated to define responsible fiscal management. These are that:

  • debt should be reduced to prudent levels;

  • operating expenses should not exceed operating revenues over a reasonable period;

  • Crown net worth should be maintained at sufficient levels to counter adverse events;

  • the fiscal risks facing the government should be managed prudently; and

  • fiscal policies should be consistent with predictable stable tax rates.

As part of the budget process, the Minister of Finance must report on the government's fiscal objectives, the extent to which these objectives are consistent with the above principles and the justification for any inconsistency. These fiscal objectives are first presented to Parliament by 31 March in the Budget Policy Statement, three months before the start of the financial year. Debate on these objectives therefore takes place before the Budget itself.

Currently, the government maintains a baseline budget projecting current policies forward three years. Baseline updates occur regularly as the government determines adjustments in accordance with its strategic and fiscal objectives. Outside these budget update processes, amendments to the baseline are permitted only for:

  • fiscally neutral adjustments;

  • unavoidable or uncontrollable expenses;

  • natural disasters or civil emergencies;

  • recognition of existing liabilities; and

  • capital investments supported by business plans and a sound business case.

The Budget must be introduced to Parliament by the end of July, and the associated Appropriation Act must be passed by the end of October.

Revised economic and fiscal forecasts are published half-yearly and immediately before a general election. These fiscal forecasts must be prepared on a GAAP basis consistent with the other reports, and must include a Statement of Fiscal Risks and Contingent Liabilities which describe, and quantify if possible, all the specific and general fiscal risks associated with the forecasts.

Accrual-based appropriations. Parliament authorises expenditure of public money by ministers, departments and offices of Parliament through the appropriation process. Appropriations are made separately for:

  • expenses incurred on each class of outputs;

  • benefits or other unrequited expenses;

  • borrowing expenses;

  • other expenses;

  • capital injections;

  • the purchase or development of capital assets; and

  • repayment of debt.

This gives Parliament control over the outputs purchased from departments and others, what sized balance sheets it thinks is needed to produce those outputs, and what resources it wants transferred between different groups in the community, but which do not involve the production of outputs.

Charging for capital. A common weakness in government financial management systems is the incentive for budget maximisation and for accumulating assets of low utility. To counter this the government now charges departments for the capital they use.

Cost allocations. Focusing on outputs requires cost accounting systems which allocate costs, including the capital charge, to those outputs. Costs can then be compared with similar costs that would be incurred by other suppliers both in the public and private sectors.

These costing systems help ministers re prioritise and choose the appropriate mix of outputs to achieve the desired outcomes. These systems have also identified opportunities for improving output performance and facilitated cost recovery where there are recognisable recipients of the service or output.

Cash management. Before the start of each year, each department negotiates with the Treasury a profile of cash injections during the year. Once this cash profile is agreed, there is a system of interest rate rewards and penalties for effective cash management by departments.

The Treasury operates a central cash management system which sweeps all the departmental bank accounts each night and invests spare funds in the overnight money market.

Generally Accepted Accounting Practice (GAAP). The Public Finance Act requires that the Financial Statements for the government are prepared in accordance with the generally accepted accounting practice. The Financial Reporting Act 1993 established the Accounting Standards and Research Board, to set accounting standards which are binding on government agencies as well as private sector companies.

This approach made it possible for the entire accounting system of the government to be totally revised and upgraded over two years because the standards, conventions and software already existed as did accountants with the skills to apply them.

External reporting

The Financial Statements of the Government of New Zealand include the following key statements:

  • Statement of Financial Performance;

  • Statement of Financial Position;

  • Statement of Cash Flows; and

  • Statement of Contingent Liabilities.
    Departmental Financial Statements contain the same key statements as above but also report:

  • Statement of Objectives; and

  • Statement of Service Performance.

The publication of a balance sheet with an audit opinion attached within three months of the end of the financial year for the whole of government is a unique feature of the New Zealand financial management system.

Valuation problems are generally dealt with in conventional and pragmatic ways that provide a good estimate of net current value by using a realisable value, or a depreciated replacement cost approach.

The underlying information systems provide new and superior information to the national statistical data collection for the system of national accounts.

The balance sheet can also indicate movements in net worth caused by the relationship between capital consumption and new investment. It can provide an indicator of whether the government is running down its estate to maintain current consumption.

In a real economic sense the power of the government to tax its citizens provides a guarantee of revenue which is not available to a private sector company. This power can however be viewed as analogous to mutual or co-operative organisations that levy their members. This is not treated as an asset as members want to know the financial position of the organisation before the exercise of the power to levy. Further, it is impossible to value this “asset" with sufficient reliability and an attempt to do so would drown the other information in the balance sheet. On the liabilities side the value of future social welfare obligations is a similarly large item over which the government has significant discretion and which is very difficult to quantify.

Parliamentary scrutiny

The Parliament's scrutiny of the government's financial performance follows the budget and reporting events through the year. The following chart summarises these:

Budget and Reporting Events

The Budget documents incorporate:

  • the government's budget speech and fiscal strategy over the medium term (10 years),

  • an economic and fiscal outlook including the government's forecast financial statements,

  • the Estimates of Appropriations that ministers seek from Parliament, and

  • departmental forecast reports for each government department.

Progress against budget is reported monthly from the end of the first quarter. These reports are also prepared on a GAAP basis consistent with the forecasts and must be published within six weeks of the end of the month. The annual financial statements must be prepared and audited within three months.

Parliament and its committees scrutinise the financial management of the executive in three ways, comparing actual performance with planned performance:

  • scrutiny of the government's intentions for the current year as expressed in its budget proposals, and of its actual performance reported in the Financial Statements of the Government;

  • examination of the actual performance of departments as reported in their annual reports and financial statements and in comparison with the plans laid a year earlier;

  • examination of the performance of state-owned enterprises and other non-departmental government entities.

Table 28.1. EXPENSES

 Years ending 30 June
1997 Actual1998 DEFU1999 DEFU2000 DEFU2001 DEFU
Source: Financial Statements of the Government of New Zealand 1997, December Economic and Fiscal Update 1997 (DEFU), The Treasury
 ($ million)
Subsidies and transfer payments (see analysis below)12,01912,77613,18513,59613,870
Operating expenses (see analysis below)13,65614,89714,89614,89614,950
Personnel
Personnel expenses (excluding pension expenses)2,4362,4772,4142,4162,443
Pension expenses778722726737755
Movement in unfunded pension liability(4)155786954
Depreciation
Physical assets663700748771788
State highways6869717375
Rental and leasing costs244251249248248
Loss/(gain) on sale of assets9(4)......
Finance costs (see analysis below)3,0722,7772,6262,6602,449
Net foreign-exchange gains on liabilities(382)(524)......
Net foreign-exchange losses on assets394479......
Provision for future initiatives..1808201,6001,600
Contingency expense provision..100200200200
        Total expenses32,95335,05536,01337,26637,432
Analysis of subsidies and transfer payments
Social assistance grants
New Zealand superannuation5,1025,1405,2425,3205,383
Unemployment benefit1,3271,3981,3551,3281,285
Domestic purposes benefit1,4471,5171,5581,6391,686
Family support785900939964984
Student allowances327353385404412
Other social assistance grants2,6953,0633,3073,5343,713
Subsidies140193176170170
Other transfer payments
Official development assistance184198209223223
Other1214141414
        Total subsidies and transfer payments12,01912,77613,18513,59613,870
DEFU Analysis of operating expensesYears ending 30 June
1997 Actual1998 DEFU1999 DEFU2000 DEFU2001
Education purchases
Early childhood education251272282292301
Primary and secondary education2,7132,9523,0133,0633,096
Tertiary education and training1,4151,4461,4621,4651,461
Health purchases5,3085,7226,0346,0876,126
Science purchases312375396427429
Other operating expenses3,6574,1303,7093,5623,537
        Total operating expenses13,65614,89714,89614,89614,950
Analysis of finance costs
Interest
New Zealand dollars2,5602,3862,3052,3272,147
Foreign currencies425337298310279
Other finance costs8754232323
        Total finance costs3,0722,7772,6262,6602,449

Table 28.2. GOVERNMENT FINANCE: STATEMENT OF FINANCIAL PERFORMANCE

 Years ending 30 June
1997 Actual1998 DEFU1999 DEFU2000 DEFU2001 DEFU
Source: Financial Statements of the Government of New Zealand 1997, December Economic and Fiscal Update 1997 (DEFU), The Treasury
 $(million)
Revenue
Levied through the Crown's sovereign power
Direct taxation20,48921,63722,10223,16424,140
Direct taxation11,42711,91412,44912,75813,112
            Total taxation revenue31,91633,55134,55135,92237,252
Compulsory fees, fines, penalties and levies263265271276289
            Total revenue levied through the Crown's sovereign power32,17933,81634,82236,19837,541
Earned through the Crown's operations
Investment income1,5961,1061,2071,3131,381
Sales of goods and services664685671678682
Other operational revenue387381367358348
Unrealised losses arising from changes in the value of commercial forests(48)(7)......
            Total revenue earned through the Crown's operations2,5992,1652,2452,3492,411
            Total revenue34,77835,98137,06738,54739,952
Expenses
By functional classification
Social security and welfare12,62013,39813,68414,04414,305
Health5,6266,0126,3156,3786,417
Education5,3355,7135,8365,9275,961
Core government services1,6671,6311,6101,6351,644
Law and order1,2811,3091,3001,2951,294
Defence9461,0561,1091,0171,041
Transport and communications888910931938972
Economic and industrial services763946800802781
Primary services351418339345353
Heritage, culture and recreation277308289274267
Housing and community development4748434342
Other68294111108106
Finance costs3,0722,7772,6262,6602,449
Net foreign-exchange (gains)/losses12(45)......
Provision for future initiatives..1808201,6001,600
Contingency expense provision..100200200200
         Total expenses32,95335,05536,01337,26637,432
         Revenue less expenses1,8259261,0541,2812,520
Surplus attributable to State-owned enterprises and Crown entities9881,0341,2971,4631,618
Dividends and other distributions(905)(422)(518)(553)(603)
Net surplus attributable to state-owned enterprises and Crown entities836127799101,015
         Operating balance1,9081,5381,8332,1913,535

REVENUE AND EXPENSES
As a percentage of GDP

Table 28.3. GOVERNMENT FINANCE: STATEMENT OF CASH FLOWS

 Years ending 30 June
1997 Actual1998 DEFU1999 DEFU2000 DEFU2001 DEFU
Source: Financial Statements of the Government of New Zealand 1997, December Economic and Fiscal Update 1997 (DEFU), The Treasury
 $(million)
Cash flows from operations
Cash provided from
Direct taxation
Individuals15,25215,71615,66416,44717,311
Companies3,3473,9654,6134,8364,971
Withholding taxes1,9061,7611,7961,8221,799
Other direct taxation22111
          Total direct taxation20,50721,44422,07423,10624,082
Indirect taxation
Goods and services tax7,4558,0568,5448,8129,135
Excise duties1,8161,8401,8611,8901,911
Other indirect taxation1,9531,9512,0032,0162,027
          Total indirect taxation11,22411,84712,40812,71813,073
          Total taxation receipts31,73133,29134,48235,82437,155
Compulsory fees, fines, penalties and levies227236241249254
Other receipts
Interest, profits and dividends1,3988311,0231,1071,150
Sales of goods and services643683666673675
Other operating receipts402387359349339
          Total other receipts2,4431,9012,0482,1292,164
          Total cash from operations34,40135,42836,77138,20239,573
Cash disbursed to
Departmental outputs4,0324,2584,0283,9793,924
Other outputs12,52114,38414,03714,08014,170
Finance costs3,0902,3262,6892,7462,620
Subsidies134213179172172
Current transfers
Social assistance grants11,70712,40412,80813,18913,494
Other transfers197213225238238
Provision for future initiatives..1808201,6001,600
Contingency expenditure provision..100200200200
          Total cash disbursed to operations31,68134,07834,98636,20436,418
          Net cash flows from operations (carried forward)2,7201,3501,7851,9983,155
          Subtotal (brought forward)2,7201,3501,7851,9983,155
Cash flows from investing activities
Cash provided from Sale of physical assets183207987280
          Total cash provided Cash disbursed to183207987280
Purchase of physical assets1,0831,5241,106960912
Net (repayment)/increase of advances(659)355465341392
Net purchase/(sale) of investments(2,672)(821)(394)(275)(668)
Contingency capital provision..60220230..
          Total cash disbursed(2,248)1,1181,3971,256636
          Net cash flows from investing activities2,431(911)(1,299)(1,184)(556)
          Net cash flows from operating and investing activities5,1514394868142,599
Cash flows from financing activities
Cash provided from Issue of circulating currency6641......
          Total cash provided6641......
Cash disbursed to
Net repayment/(issue) of Government stock1,138(322)855602,291
Net repayment/(issue) of foreign-currency borrowing3,1331,088438125308
Net repayment/(issue) of other New Zealand-dollar borrowing1,096(134)(36)107(8) 
          Total cash disbursed5,3676324877922,591
Net cash flows from financing activities(5,301)(591)(487)(792)(2,591)
Net movement in cash held(150)(152)(1)228
Opening cash balance344196504971
Foreign-exchange gains on opening cash balances26......
          Closing cash balance19650497179

OPERATING BALANCE

28.2 Taxation

The tax year is from 1 April to 31 March. On 1 April 1995 the first step in restructuring the Income Tax Act 1976 and the Inland Revenue Department Act 1974 came into effect. The two acts were divided into the principal acts: the Income Tax Act 1994 and the Tax Administration Act 1994. In addition, the Taxation Review Authorities Act 1994 contains provisions from the Inland Revenue Department Act 1974.

Personal income tax

Income tax is levied under the Income Tax Act 1994 and is charged on most forms of income including business profits, employment income, royalties, interest, dividends and pensions.

The current rates of tax are:
    Income up to and including $9,50015c for every dollar
    Income from $9,500 to $34,20021.5c for every dollar
    Income over $34,20033c for every dollar
The rates of tax from 1 July 1998 are:
    Income up to and including $9,50015c for every dollar
    Income from $9,500 to $38,00019.5c for every dollar
    Income over $38,20033c for every dollar

Pay as you earn’ (PAYE) system. This system of collecting income tax, introduced in 1958, 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 (IR 12). Employees of businesses which operate computer payrolls do not need to complete a new IR 12 each year. Their employers merely use the tax code each employee used the previous year. The IR 12 becomes a tax deduction certificate when it 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 IR 5 tax return each year. The due date for the completed return to reach Inland Revenue is 7 June each year.

The Inland Revenue Department assesses salary and wage earners on their total taxable income. Any taxes already paid and rebates allowed are deducted from assessed tax. The resulting figure will be either a refund or further tax to pay.

Business, farming, 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 for paying residual income tax of $2,500 or more. ‘Residual income tax’ is basically the amount of the tax assessed, reduced by any tax deductions made from source deduction payments, tax paid overseas, tax paid by trustees etc.

Individual 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 IR 3, which must reach the Inland Revenue Department by 7 July for the majority of taxpayers. Expenses are deducted from the gross business, farming or professional 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 additional tax to pay. In some situations interest is charged or paid on the under- or overpayment of provisional tax.

Deductions from tax

Deductions for expenses. For self-employed people, expenses which are incurred in producing income or carrying on a business 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.

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 (see table 28.4).

Residential qualifications to pay income tax

New Zealand residents. New Zealand residents are liable for 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.

TAXATION PER CAPITA
Adjusted for inflation*

Southland artist with his cast glass creation at the new Inland Revenue Building in Invercargill.

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.

For tax purposes, individuals are considered to be resident in New Zealand when they fulfil one or more of the following criteria:

  • Individuals must have been in New Zealand for more than 183 days in any 12-month period.

  • Individuals who have an enduring relationship with New Zealand. This means having strong financial, personal or other such ties with New Zealand. Each case is considered on its own facts.

  • Individuals who are away 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 more than 325 days (about 11 months) in any 12-month period and during that time they do not have an enduring relationship with New Zealand.

Any part of a day in New Zealand is considered as a full day for working out residency status.

Table 28.4. REBATES: YEAR ENDED 31 MARCH 1998

RebateAmount
Source: Inland Revenue Department
Income under $9,880:This rebate is available to low income earners who are in paid work for at least 20 hours a week. The maximum rebate is $728, which would apply to someone who worked 20 hours or more each week and whose income was less than $6,241. The rebate can't be claimed for any week where fewer than 20 hours was worked.
Income under $34,200:Broadly, the maximum rebate for an assessable income of $9,500 or less is $617.50. This rebate is reduced by 6.5 cents in every dollar from $9,500 to $34,200 and 2.5 cents in every dollar over $34,200. This rebate is not available to taxpayers earning $34,200 or more.
Child care or housekeeper:This applies to working parents, or to disabled people who pay for help with child care or housekeeping. The rebate a family can claim is limited to the smaller of 33 cents for each complete dollar of payment made or $310.
Child rebate:A taxpayer who was under 15 years or under 18 years and still at school may claim this rebate. Taxpayers who turned 19 on or after 1 January 1997 also qualify. The maximum rebate is $156 for income over $1,040. For income less than $1,040, the rebate is 15 cents in the dollar of income other than interest and dividends.
Special farm, or fishing-vessel ownership accountThe rebate is 45 cents for each dollar of annual savings increase in a special farm ownership or fishing-vessel ownership account. The maximum rebate is $2,250 ($5,000 savings increase). These accounts are now closed and the rebate is for existing account holders.
Donations:The rebate is 33.3 percent of all qualifying charitable donations, with a maximum rebate of $500. The minimum qualifying charitable donation is $5.

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, up to the amount of 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, Germany, India, Indonesia, Ireland, Italy, Japan, South 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 in New Zealand 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 Assistance

Family Assistance is the term used to cover family support; Guaranteed Minimum Family Income (GMFI), Independent Family Tax Credit (IFTC) and payments are designed to help low income families with cash help. It is paid either by the New Zealand Income Support Service with a benefit if the recipient is a beneficiary or fortnightly by Inland Revenue to the main child-carer in the family.

The maximum income levels for Family Support and/or IFTC:

Number of childrenFamily supportIFTC
1$30,838$33,113
2$36,276$40,826
3$41,175$48,540
4$47,153$56,253
5$52,591$63,966
6$58,030$71,680

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 $18,307. A family with such an income will receive $281 per week in hand.

Independent Family Tax Credit. ITFC is an extra payment for families. It is a maximum payment of $682.50 for each child per year. However, it is not paid during the time that any of the following income is received:

  • income tested benefit

  • New Zealand Superannuation or veteran's pension

  • Student allowance

  • weekly compensation payments from ACC (unless received for fewer than three months).

Child Support

Providing financial support for children is part of the role of a parent even if living apart from the child or children.

Inland Revenue which is responsible for administering the Child Support Act 1991, aims to make sure that all children receive support from their absent parents.

Inland Revenue assesses and collects Child Support from people who are liable for paying (liable persons) and pays out Child Support to people caring for children (custodians). Where the custodian receives a benefit from the New Zealand Income Support Service (NZISS), Child Support collected is paid to the Crown to offset the cost of the benefit.

Most Child Support is assessed using a formula based on the liable person's taxable income from two years ago. A living allowance based on NZISS benefit rates is deducted and the resulting figure multiplied by a percentage, according to the number of children the person is liable for.

Sometimes parents have particular circumstances which the formula doesn't take into account. From July 1994, administrative reviews of formula assessments were introduced to consider such circumstances. Inland Revenue administers the review process, although the actual reviews are carried out by qualified people contracted by the agency.

Custodians not receiving an NZISS benefit can choose whether to be involved in the scheme or not. They can apply for a formula assessment or apply for the agency to administer an agreement they have made with the liable person.

The minimum Child Support payable is $520 a year.

There were approximately 171,000 paying parents and 182,000 custodians at 30 June 1997. The total amount of Child Support collected from 1 July 1996 to 30 June 1997 was $184.3 million.

New Zealand superannuation surcharge

From 1 April 1994 National Superannuation became known as New Zealand Superannuation. The superannuation surcharge is an extra tax paid on top of ordinary income tax. Everyone who receives New Zealand 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.

Reserve Bank Governor Don Brash with the grower president of the local Kiwifruit Growers' Association, Pukekohe, August 1997.

During the 1997-98 year single superannuitants can receive up to $198 per week before tax ($10,296) per year of other income without having to pay any surcharge. Married superannuitants can each receive up to $148.50 per week before tax ($7,722 per year) of other income before paying any surcharge. (Note: New Zealand Super surcharge was abolished from 1 April 1998. Superannuitants will no longer have to pay surcharge on their other income from that date).

Student loans

The Student Loans scheme started on 1 January 1992. The scheme is jointly administered by the Ministry of Education and the Inland Revenue Department.

At the end of each academic year loans are transferred to the Inland Revenue Department, which is then responsible for assessing and collecting loan repayments until the loan is repaid.

The interest rate and repayment threshold and rate are reviewed annually and are effective from 1 April to 31 March.

The 1997-98 and 1998-99 rates are:

 1997-981998-99
Interest8.2%8.0%
Repayment threshold$14,560 pa$14,716 pa
Repayment rate10%10%

Student Loan borrowers are required to file an annual tax return, regardless of the level of income they receive, until their loan is fully repaid.

Borrowers who are earning over the repayment threshold and who are on salary and wages have their loan repayments deducted at source, along with their ordinary PAYE deductions. Employers then pay these deductions to Inland Revenue monthly or twice monthly along with their PAYE deductions.

Repayments from borrowers not on salary and wages are made direct to the Inland Revenue in the same manner as provisional tax payments are made. Borrowers can also make voluntary repayments to Inland Revenue for any amount at any time to reduce their loan balance.

As at 30 June 1997, there were 189,325 student loan accounts with Inland Revenue with a total value of $1.6 billion ($1.2 billion at 30 June 1996). The total value of repayments collected by Inland Revenue since the scheme began in 1992 was just over $251.2 million. $144.4 million had been collected via employer deductions through the PAYE system with the balance coming directly from the borrower.

Accident compensation premiums

The Inland Revenue Department collects earner and employer premiums and pays them to the Accident Rehabilitation and Compensation Insurance Corporation.

The earner premium covers the cost of non-work-related injuries but not motor vehicle-related injuries. All earners (employees and self-employed people) must pay the earner premium. This premium is a set percentage of the earner's income. For employees, the premium is deducted from their salaries of 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. 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. Self-employed people calculate their premiums in their end-of-year tax returns and pay the premium out of their self-employed income.

The total amount of accident compensation premiums collected up to 30 June 1997 was $284 million for employees, $1,188 million for employers and $351 million for self-employed people ($244 million, $1,055 million and $282 million in 1996).

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 21.5 percent (from 1 July 1998, 19.5 percent) for interest.

Certain recipients of interest or dividends (such as charitable/non-profit organisations, sports clubs and others) may claim exemption from RWT. The leaflet RWT on Investments, available from Inland Revenue offices, has more information on RWT.

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.

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, and it thus avoids the double payment of tax (i.e. by the company and the shareholders) 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

Under this legislation certain business expenditure on food, beverages, recreation and related transport and accommodation is only 50 percent deductible.

However, there are a number of exceptions to the entertainment expenses regime where these types of expenses are fully deductible. For example, the following business costs are fully deductible:

  • Meals while travelling on business.

  • Meals provided at a conference of at least four hours' duration (not including meal breaks).

  • Incidental entertainment at functions open to the public and at trade displays.
    Only the following types of entertainment expenses are limited to 50 percent deductibility:

  • The costs of running and maintaining: corporate boxes and similar exclusive venues; holiday accommodation; and pleasure crafts such as yachts.

  • The costs of food and beverages provided or consumed either at any of the places mentioned above, or: on a taxpayer's business premises for a business lunch, party or similar function; off the taxpayer's business premises, for example, for a business lunch with clients.

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 1997 was $336,050 million ($327,112 million in 1996).

Company taxation

Company taxation is also levied under the Income Tax Act, 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 that individuals are entitled to.

  • The rate of tax is different.

Company taxation collected in the year ended 30 June 1997 was $3,232.4 million ($3,967.2 million in 1996).

Companies

A company resident in New Zealand is assessable on all income, whether derived in New Zealand or elsewhere. A company is a New Zealand resident if any of the following apply:

  • It is incorporated in New Zealand.

  • It has its head office in New Zealand.

  • It has its centre of management in New Zealand.

  • Control of the company by its directors is exercised in New Zealand.

Resident companies pay tax on their income at the flat rate of 33 cents in the dollar.

Special types of companies. There are various types of companies that have specific methods of assessment. Some are: life insurance companies, mining companies and overseas contractors.

Non-resident companies. A company not resident in New Zealand is only liable for tax on income derived from New Zealand. Non-resident companies are taxed at 33 cents in the dollar.

Dividends, interest and royalties paid to a non-resident company are subject to withholding tax, at a rate specified in the double taxation agreement with the country within which the company is resident. Generally this is the final liability.

Goods and services tax

Goods and services tax (GST) is a tax charged at 12.5 percent on taxable supplies provided in New Zealand by a registered person in the course of a taxable activity. GST was introduced in 1986 at a rate of 10 percent, increased to 12.5 percent in 1989.

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 October 1997, there were 485,820 registered persons in New Zealand.

The total GST collected up to 30 June 1997 was $5,580 million, not including GST collected by New Zealand Customs ($5,092 million in 1996).

Business Tax Information Service

Small businesses make up a significant percentage of Inland Revenue's business customers and many of these small businesses, particularly the new ones, have difficulty understanding their tax obligations. To remedy this problem, Inland Revenue 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 record keeping, GST and employer taxes such as PAYE, fringe benefit tax and employer premium.

The Business Tax Information Service comprises 36 officers in Inland Revenue offices nationwide who are available to talk to business operators about their tax obligations. The service is free and available on request. The business person can meet the Business Tax Information Officer either at Inland Revenue's offices or at their own premises.

For the year up to the end of June 1997, Inland Revenue's Business Tax Information Officers advised 16,976 small business operators.

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. Profits on sale of other property may be subject to income tax (in terms of section CD1 and Section DJ13 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, land developer or subdivider.

  • Makes a profit which is primarily due to rezoning or likely rezoning or similar occurrence.

  • Develops or subdivides the property within 10 years of purchase.

  • Develops or 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.) This is where the sale is not taxable under one of the other categories.

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.

CUSTOMS AND EXCISE RECEIPTS
As a percentage of total Consolidated Account taxation*

Following are the rates of duty for transactions:

Table 28.5. 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 rental 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 total stamp duty collected in the year up to 30 June 1997 was $112.5 million ($112.6 million in 1996).

Excise duty

The Customs and Excise Act 1996 provides for the imposition of excise duty on alcoholic beverages, tobacco products, super and regular grade petroleum, liquefied petroleum gas (LPG) and compressed natural gas (CNG) when compressed by a natural gas fuelling facility for use as a motor vehicle fuel.

Similarly excise equivalent duty is levied on the same goods if imported into New Zealand.

The relevant provisions are contained in Part VII of the Customs and Excise Act 1996 and the Third Schedule to the act.

The excise regime is dependent on the licensing of the areas within which excisable goods may be manufactured or stored and within which Customs powers may be exercised. These areas are called Customs controlled areas and such areas may be licensed for the purpose of:

  • the manufacture of excisable goods (breweries, wineries, tobacco manufacturing plants, distilleries, petrol refineries, etc.,) or

  • the deposit, keeping or securing of imported goods, without payment of duty on the goods, pending the export of those goods (ships' provedores) or

  • the storage by or for—

    1. The manufacturer; or

    2. The first owner of the goods, being the holder of a wine maker's licence under the Wine Makers Act 1981,—

  • of wine manufactured in New Zealand, where the wine cannot be physically accommodated within the manufacturing area in which it was manufactured (off-site storage of wine) or

  • the storage of imported goods or goods manufactured in a manufacturing area, of a kind that are subject to duty, and on which such duty has not been paid, pending the sale of those goods to—

    1. Persons departing to or arriving from a country outside New Zealand; or

    2. Persons exercising an entitlement to the supply of goods free of duty under the act, or any other act.

These premises are usually duty free shops.

The liability for excise duty arises at the time of removal of the excisable product from the place of manufacture or, in the case of wine, from the off-site storage area, other than to an export warehouse or to another Customs controlled area for further manufacture.

The liability for excise equivalent duty is triggered by the importation of goods.

Payment of excise duty incurred on alcoholic beverages is due for payment on the last working day of the month following the month in which the liability was triggered. Excise duty on tobacco products and fuels is payable within 15 working days of the calendar month in which the goods were removed from the Customs controlled area. Excise equivalent duty is payable in accordance with the Customs deferred payment system or prior to the delivery of the goods from Customs control. The rates of excise duty and excise equivalent duty are contained in Part A and Part B of the Third Schedule to the Customs Act 1966.

The legislation provides the discretionary authority for government to apply increases to the rates of excise and excise equivalent duties on alcoholic beverages and tobacco products in accordance with the movement in the Consumers Price Index. Adjustments may be made annually to the alcoholic beverages rates of duty on 1 June of any year and the rates of duty on tobacco products may be made on 1 December in any year. Excise equivalent duty rates are similarly adjusted.

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 cog 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 IPG, 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 $38,777 million net during the year ended 30 June 1997.

Taxation review authorities

The Taxation Review Authorities Act 1994 provides for the establishment of one or more taxation review authorities. There are three authorities. Each consists of one person who is either a District Court judge, a barrister or a solicitor of the High Court of no fewer than seven years practice, 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.

Tax revenue

Table 28.6. DIRECT TAXATION

 Years ending 30 June
1997 Actual1998 DEFU1999 DEFU2000 DEFU2001 DEFU
Source: Financial Statements of the Government of New Zealand 1997, December Economic and Fiscal Update 1997 (DEFU). The Treasury
 $(million)
Income tax
Individuals
Source deductions12,26412,67012,61913,32913,927
Other persons3,3823,4253,4353,4953,777
Refunds(658)(680)(705)(705)(730)
Fringe benefit tax336340354367376
          Total individuals15,32415,75515,70316,48617,350
Companies3,2334,1154,5964,8564,991
Withholding taxes
Residents' interest income1,0019621,0541,0791,044
Non-residents' income824669681692703
Residents' dividend income3537393939
Foreign-source dividends7297281112
          Total withholding taxes1,9321,7651,8021,8211,798
          Total income tax20,48921,63522,10123,16324,139
Other direct taxation
Estate and gift duties...2111
          Total other direct taxation..2111
          Total direct taxation20,48921,63722,10223,16424,140

Table 28.7. INDIRECT TAXATION

 Years ending 30 June
1997 Actual1998 DEFU1999 DEFU2000 DEFU2001 DEFU
Source: Financial Statements of the Government of New Zealand 1997. Economic and Fiscal Update December 1997, The Treasury
 $(million)
Goods and services tax
Gross goods and services tax12,23712,57813,30013,76314,256
Refunds(4,512)(4,482)(4,716)(4,911)(5,081)
          Total goods and services tax7,7258,0968,5848,8529,175
Excise duties
Petroleum fuels692739761782799
Tobacco products666675669671671
Alcoholic beverages438428433438442
          Total excise duties1,7961,8421,8631,8911,912
Other indirect taxation
Customs duty909917916899872
Road user charges426470479497519
Motor vehicle fees155160162164164
Stamp, cheque and credit card duties183197205212221
Gaming duties129135142148154
Energy resources levies10497989595
          Total other indirect taxation1,9061,9762,0022,0152,025
          Total indirect taxation11,42711,91412,44912,75813,112

Table 28.8. COMPARISON OF PUBLIC ACCOUNT TAXATION AND NATIONAL DISPOSABLE INCOME

Year endedNational disposable income1Public account taxation
Total2Percentage of national disposable income

1 National Disposable Income is calculated on a year ended 31 March.

2 From 1992 accounts prepared on an accrual basis.

Source: Statistics New Zealand

 $(million)percent
31 March—
198639,12514,235.936.4
198647,74517,408.136.5
198853,37421,528.140.3
198957,58022,863.939.7
199060,07926,198.143.6
199161,60425,797.641.9
199261,08623,901.039.1
199364,20025,812.040.2
199469,40027,705.039.9
199573,38730,21341.2
199677,15932,23341.8
199779,58031,91640.1

Table 28.9. GOVERNMENT FINANCE: STATEMENT OF FINANCIAL POSITION1

 As at 30 June
1997 Actual1998 DEFU1999 DEFU2000 DEFU2001 DEFU

1Assets and liabilities are no longer separated into current and non-current, as they were in previous Yearbooks.

Source: Financial Statements of the Government of New Zealand 1997, December Economic and Fiscal Update 1997 (DEFU). The Treasury

 ($million)
Assets
Cash and bank balances19650497179
Marketable securities and deposits7,5817,5917,0076,6416,079
Advances2,8713,4213,9674.4094,914
Receivables5,0915,1815,2425,3185,393
Inventories295289297295252
State-owned enterprises and Crown entities18,48318,77019,76420,76621,676
Other investments214214214214213
Physical assets14,50214,98115,08914,84914,522
Commercial forests505488480480480
State highways8.2108.3378.4908,6668,864
Intangible assets2014777
Contingency capital provision..60280510510 
          Total assets57,96859,39660,88662,22662,989
Liabilities
Payables and provisions4,4574,2614,3634,2454,020
Currency issued1,7411,7821,7821.7821.782
Borrowings35,97235,80435,28134,47931,878
Pension liabilities8,3288,4838,5618.6308,684
          Total liabilities50,49850,33049,98749,13646,364
          Total assets less total liabilities7,4709,06610,89913,09016,625
Crown balance
Accumulated operating balance4682.0603.8936.0849,619
Revaluation reserve7,0027.0067.0067.0067.006
        Crown balance7,4709,06610,89913,09016,625

28.3 Assets and liabilities

Public Debt: Debt management

During 1988, as part of the reform of the government's financial management, the New Zealand Debt Management Office (NZDMO) was formed to improve the management of risk associated with the government's fixed income portfolio, which comprises liabilities in both the New Zealand and overseas markets and some liquidity assets. The categories of risk managed are interest rate, currency, liquidity, credit and operational risk.

In 1988, NZDMO introduced reforms of the public sector's cash management involving centralisation of surplus cash funds for investment and cash management purposes, and decentralisation to departments of the responsibility for payments and other banking operations.

The separation of the government's financial management from monetary policy enables NZDMO to focus on defining a low-risk net liability portfolio for the government and implementing it in cost-effective manner.

Before March 1985, successive governments had borrowed under a fixed exchange rate regime to finance the balance of payments deficit. Since the adoption of a freely floating exchange-rate regime, the government has borrowed externally only to rebuild the nation's external reserves and to meet refinancing needs.

Since the sale process began in 1987 the government has used the proceeds of asset sales largely to repay maturing foreign currency debt. Since 1993/94 the government has also been running a surplus on its operating balance and has used these surpluses to pay down foreign currency debt. In September 1996 New Zealand reached zero net foreign currency public debt.

Under existing legislation, amounts payable in respect of principal and interest on New Zealand securities are a charge upon the public revenues of New Zealand, payable under permanent appropriation. All of the indebtedness of New Zealand is otherwise unsecured.

Debt record

New Zealand has always paid, when due. the full amount of principal, interest and amortisation requirements upon its external and internal debt, including guaranteed debt.

Quantifiable contingent liabilities of the government, including the Reserve Bank of New Zealand, state-owned enterprises and Crown entities, amounted to approximately $4,495 million, as at 30 June 1997 ($4,987 million in 1996).

The government's medium-term fiscal policy with regard to debt management is that it should reduce public debt-to-GDP ratios by continuing to run operating surpluses.

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 28.10. 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 Zealand31,7343 March—23 December 1993
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 assets206,0546 July 1990–30 July 1993
Telecom Corporation4,250,00012 September 1990
Forestry cutting rights1,027,05524 July—26 October 1990
Export Guarantee Limited19,7813 October 1990–24 June 1993
Housing Corporation mortgages2,175,92825 November 1991–23 September 1996
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 Limited328,19130 September 1993
Wrightson Rights3,44925 November 1993
Fletcher Challenge shares418,05925 November—23 December 1993
GCS Limited46,99118 November 1994
Waikato Regional Airport Limited2,12529 March 1996
Maori Development Corporation20,93017 June 1996
The Radio Company Limited89,00010 July 1996
Forestry Corporation of New Zealand1,600,00027 September 1996
Works and Development Services108,0008 November 1996

Table 28.11. STATEMENT OF BORROWINGS

 Movements during the year ended 30 June 1997
As at I July 1996Increases/additionsDecreases/ disposals/repaymentsForeign exchange contractsCurrency realignmentUnamortised premiums/discountsAs at 30 June 1995
Source: Financial Statements of the Government of New Zealand 1997. December Economic and Fiscal Update 1997 (DEFU), The Treasury
 $(million)
Outstanding Debt
New Zealand-dollar debt
Government stock21,2222,060(3,175)--(15)20,092
Treasury bills6.948-(674)--376.311
Loans and foreign-exchange contracts98237(366)(2)-21672
Reserve Bank bills1,249-(16)--31,236
Earthquake Commission deposits79516----811
Retail stock551457(505)---503
          Total New Zealand-dollar debt31,7472,570(4,736)(2)-4629,625
Foreign currency-debt
United States dollars5,1102,411(3,783)(581)(106)(75)2,976
Japanese yen2.542228(1,121)186(192)(65)1,578
European and other currencies 2,1011,806(2,302)393(209)4
1,793       
          Total foreign currency debt9,7534,445(7,206)(2)(507)(136)6,347
          Total outstanding debt41,5007,015(11,942)(4)(507)(90)35,972
Less
Financial assets
Marketable securities and deposits
New Zealand dollars77868---2848
United States dollars3,129382(630)233(126)263,014
Japanese yen2,69813(672)(315)15(5)1,734
European and other currencies2,45790(486)79(161)61,985
          Total marketable securities and deposits9,062553(1,788)(3)(272)297,581
          Advances and cash..3,8011,012(1,748)-2-3,067
          Total financial assets12,8631,565(3,536)(3)(270)2910,648
          Net public debt28,6375,450(8,406)(1)(237)(119)25,324

Table 28.12. TYPE OF PUBLIC DEBT

Outstanding at 30 JuneForeign currency debtDomestic currency debtTotal debt
AmountPercentage of total debtAmountPercentage of total debtAmountPercentage increase on previous year

1December Economic and Fiscal Update (DEFU), December 1997.

Source: The Treasury

 $(million) $(million) $(million) 
199020,58646.423,76153.644,34711.6
199120,49146.623,44453.443,936(0.9)
199220,72744.026,37856.047,1057.2
199319,86641.827,61258.247,4780.8
199416,86436.329,56563.746,429(2.2)
199513,04529.631,05170.444,096(5.0)
19969,75323.531,74776.541,500(5.9)
19976,34717.629,62582.435,972(13.3)
199815.74016.030,06484.035,804(0.5)
199915,26514.930,01685.135,281(1.5)
200015,14014.929,33985.134,479(2.3)
200114,83215.227,04684.831,878(7.5)

Table 28.13. GROSS INDEBTEDNESS OF CENTRAL GOVERNMENT

As at 31 MarchAmountPer head of population
Source: Statistics New Zealand
 $(million)$
198632,0029,776,44
198742,47212,933,77
198839,06811,780.60
198939,72111,933.96
As at 30 June
199044,34713,204.26
199143,93612,936.58
199247,10513,795.98
199347,47813,565.14
199446,42913,166.12
199544,09612,062.92
199641,50011,173.64
199735,9729,564.22

Table 28.14. MATURITY PROFILE AS AT 30 JUNE 1997

 1997/98 $m1998/99 $m1999/2000 $m2000/01 $m2001/02 $m2002/03-2006/07 $m2007/08 and after $mTotal book value $m
Source: Financial Statements of the Government of New Zealand for the year ended 30 June 1997, The Treasury
Outstanding debt
New Zealand dollar debt
Government stock1,8542,5843,1312,7062,9256,35853420,092
Treasury bills6,311----- 6,311
Loans and foreign exchange contract39820103269764672
Reserve Bank bills 1,236 -----
1,236        
Earthquake Commission        
deposits811------811
Retail stock427431617---503
Total New Zealand-dollar debt11,0372,6473,2502,7252,9946,43453829,625
Foreign-currency debt
United States dollars1,59952916--5802522,976
Japanese yen569128--497311731,578
European and other currencies461355217229290203381,793
Total foreign-currency debt2,6291,0122332297871,0943636,347
Total outstanding debt13,6663,6593,4832,9543,7817,52890135,972
Marketable securities and deposits
New Zealand dollars848------848
United States dollars1.8599324821355232353,014
Japanese yen9768(27)832543681,734
European and other currencies1,080226108116281482791.985
Total marketable securities and deposits4,7633273291453881,1075227,581

PUBLIC DEBT
As a percentage of GDP

28.4 Local government finance

Since November 1989 local authorities have undergone substantial change. The number of authorities has been reduced to 86 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 table 28.15.

Table 28.15. LOCAL AUTHORITY STATISTICS—NON-TRADING ACTIVITIES1

Year Ended 30 June1994 Actual1995R Actual1996 Provisional

1Coverage: all activities of local authorities not classified as trading activities, eg government administration, provision of water supply, roading, parks and reserves, town planning and regulation.

Source: Statistics New Zealand

 $(million)
Operating income
Rates (including water values)1,637.91.717.71,769.0
Petroleum tax34.836.133.1
Grants, subsidies and levies300.5326.6322.3
Fees and fines114.4134.7149.9
Sales and other income564.3557.5622.7
Investment income202.8232.3245.9
          Total current receipts2,854.73,004.93,142.9
Operating expenditure
Employee costs813.4828.1833.4
Interest192.7174.9171.3
Depreciation367.2355.0348.0
Purchases and other expenditure1,471.81.572.01,724.0
          Total operating expenditure2,845.1,930.03,076.7
Surplus before extraordinary items9.674.966.2
Net gains from extraordinary transactions196.7351.5313.7
Surplus after extraordinary items206.3426.4379.9
Additions to fixed assets579.8772.5796.0
Disposal of fixed assets135.0148.8129.0

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.

Definitions

Rates. All forms of rates including penalties and grants in lieu. Includes water rates, but excludes rates collected on behalf of other local authorities. Water sold by meter and connection fees is excluded.

Grants, subsidies and levies. Includes grants, subsidies and levies from central government, other local authorities and organisations. Grants treated as equity contributions are excluded.

Petroleum tax. Total tax received for use by all authorities.

Fees and fines. Includes items such as parking fines, building consents, dog registration, etc. Admission and parking charges are excluded from this category as they are treated as a sale of goods and services.

Investment income. This predominantly consists of income from interest and dividends.

Sales and other income. Includes trading receipts such as admission charges, water sold by meter and other miscellaneous operating income. Excluded are any sales of goods and services charges within the authority.

Employee expenses. Gross earnings during the accounting year of all paid employees in the authority. Included are such items as overtime, sick and holiday pay, benefit allowances, value of free supplies, sales commission paid to own employees, and severance and redundancy payments. Levies paid to the Accident Rehabilitation Compensation and Insurance Corporation and employer contributions to superannuation, pension and welfare schemes are also included in this category.

Interest. Interest paid on public debt and other liabilities.

Depreciation. Depreciation on fixed assets including infrastructural and restricted assets, buildings, mobile equipment, other plant, machinery and office equipment.

Purchases and other expenses. Includes rent, insurance, fuel, postage, repairs and maintenance, contracts for services and overhead charges from the separate council trading enterprises are also included. Excluded are purchases of goods and services charges within the authority, and contract payments for capital works. Other expenses includes grants and donations to other organisations, bad debts and income tax. Also excludes loan repayments, purchases of fixed assets or contract payments for the construction and development of fixed or community assets.

Gains from extraordinary transactions. Includes gains on items outside the normal course of local authority business such as the sales of assets above or below book value, gains or losses on revaluation of capital assets, and gains or losses on extraordinary exchange transactions. Also includes any surplus transferred from the trading division of local authorities that do not fall within the coverage of this survey.

Fixed assets. The purchase and sale of fixed assets during the financial year including the purchase and sale of new and second hand operational, infrastructural and restricted assets and including capital work done by own employees. Excludes expenditure on intangible assets such as goodwill, and land and buildings held for resale.

Contributors

  • 28.1 The Treasury.

  • 28.2 Inland Revenue Department; New Zealand Customs; Ministry of Transport; The Treasury.

  • 28.3 The Treasury.

  • 28.4 Statistics New Zealand.

Special articles

The Treasury.

Further information

Annual Financial Statements of the Government of New Zealand (B.I HY)

Budget Policy Statement (Parl paper B.I)

Budget Speech and Fiscal Strategy Report (Parl paper B.2)

Departmental Forecast Report of the Treasury (Parl paper B.27 FR.96)

Economic and Fiscal Outlook and Budget Tables (Parl paper B.3)

Economic and Fiscal Update (Parl paper B.6)

Estimates of Appropriations (Parl paper B.5)

Financial Statements of the Government of New Zealand. The Treasury (eight times a year)

Fiscal Responsibility Act 1994—an explanation. The Treasury

Fiscal Results for the Government of New Zealand. The Treasury (six times a year)

GST Guide (booklet) Inland Revenue Department 1994

Half-yearly Financial Statements of the Government of New Zealand (B.10)

Key Statistics. Statistics New Zealand (monthly)

Local Authority Statistics, Non-trading Activities. Statistics New Zealand (annual)

Putting It Together The Treasury 1996

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

Report of the Local Authorities Loans Board (Parl paper B.17)

Report of the Residual Health Management Unit (Parl paper E. 56)

Report of the Treasury (Parl paper B.27)

Retiring Allowances and Redundancy Payments (booklet) Inland Revenue Department, 1994

Road User Charges (booklet) Land Safety Transport Authority 1994

Superannuitants and Surcharge (booklet). Inland Revenue Department 1995

Supplementary Estimates of Appropriations (Parl paper B.7)

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 Rehabilitation and Compensation Insurance 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.

Consumers Price Index.

See Indexes.

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, individuals, or through New Zealand organisations acting as their nominee. They have been included in New Zealand's overseas debt statistics from 31 December 1992.

Economically significant enterprise.

An enterprise which meets at least one of the following criteria: has greater than $30,000 annual GST expenses or sales; has more than two full-time equivalent paid employees; is in a GST-exempt industry except residential property leasing and rental; is part of a group of enterprises; is a new GST registration that is compulsory, special or forced (this means the business is expected to exceed the $30,000 boundary.); is registered for GST and is involved in agriculture or forestry.

Employer contributions.

Payments by employers to superannuation, pension and welfare schemes, and accident compensation levies.

Employment, Status in.

A respondent's employment status within the labour force. This applies to persons in full and part-time employment. Employment status categories are: paid employee; self-employed and without employees; employer; and unpaid family worker.

Enterprise.

A business or service entity operating in New Zealand 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 actual reproductive performance of a population. Often measured in terms of the number of live births per 1,000 women aged between 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.

Full-time equivalents.

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 when the data is output and is taken as at or on the nearest payday to 28 February during the census year.

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 Invisibles (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, volumes 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 excise duties, 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).

Invisibles

(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 and unemployed persons seeking full-time work. The part-time labour force comprises persons working 1 to 29 hours per week and 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.

Nominal industry. A large proportion of the income of banks and financial institutions consists of an excess of interest and other property income over payments, rather than from direct charges for services. As NZSNA records this income in the income and outlay accounts rather than as an item of gross output in the production account, operating surplus would be negative. To overcome this a service charge is imputed, equal to net interest and other property income. Conceptual problems of how to allocate the charge to the users of services provided by financial institutions (such as whether to allocate on the basis of the number or value of loan transactions) are overcome by creating a nominal industry which pays the total charge. The nominal industry has no gross output and makes a negative contribution to GDP. Its negative operating surplus counteracts the increased operating surplus of all other industries which are not recorded as paying any of the imputed bank service charge, (see section 17.2: National accounts)

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.

Owner occupied dwellings

(in National Accounts). In the national accounts, all housing used for shelter, whether owned or rented, is treated in a consistent manner, namely as though they were all rented. Consequently, all expenditure associated with the purchase, alteration and maintenance of owner-occupied dwellings is excluded from household consumption expenditure. Included are imputed rental payments which the owners as “occupiers” are deemed to pay to themselves in their capacity as “landlords”, i.e. they are viewed as renting their houses to themselves. This is the value recorded in the item imputed rent of owner-occupied dwellings. By adopting this treatment, key aggregates such as GDP do not vary with changes in home ownership (a useful attribute for comparisons across time and between countries).

Paid employees.

See persons engaged.

Part-time.

Persons working less than 30 hours a week.

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 institutional 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.

The expenditure of 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.

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.

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, exports.

Similarly, specific services and industries should be looked for in listings under general headings, such as business censuses or national accounts.

In most cases New Zealand has been abbreviated to NZ to save space.

The number besides the entry eg 8.5, refers to Section 8.5 in Chapter 8.

The entries in the Special Articles 1998 index are also included in the main index.

A

abortion and abortion rate. 8.3 abuse of children, 7.1
ACC (Accident Rehabilitation and Compensation Insurance Corporation), 8.5, 24.3, 28.2
access radio, 11.1
Accident Compensation premiums, 28.2
Accident Rehabilitation and Compensation Insurance Corporation (ACC), 8.5
accidents (see also ACC), 8.5
air, 23.2
at home, 8.5
fatal, from falls, poisoning and other causes, 8.5
hospital patients treated for, 8.4
infant mortality, 8.5
marine, 23.1
motor vehicle, 8.5
prevention of, see safety
statistics, 8.5
traffic, 8.5
water, 8.5
accommodation supplement, 7.1. 22.2
accommodation, tourist, 13.2
accrual accounting. 28.1
ACRI (Association of Crown Research Institutes), 15.1
Action TV, 11.1
acts and regulations passed (1986-96), 3.2
Acts of Parliament, 3.2, 10.1
on-line, 3.2
adoption, 7.2
adult adoption information, 7.2
adult education, see continuing education
Advertising Agencies' Association, 11.1
Advertising Standards Authority, 11.1
advertising. 11.1
aerial topdressing see topdressing
African countries, relations with, 4.1
age
at death, 5.3
by ethnic group, 5.4
by sex/gender, 5.4
deaths from external causes, 8.5
deaths of pre-school children, 8.5
distribution, of population, 5.4
of hospital inpatients discharged, 8.4
of motor accident deaths and casualties, 8.5
of new mothers, 5.3
of prison inmates, 10.3
Pacific Island distribution, 6.5
structure, Maori, 5.4
Agenda of UNCED, 16.2.21
AgResearch, 15.1
Agricultural Production Account, 18.1
agricultural costs, farm expenses price index, 18.1, 18.6
exports (various), 18.3, 18.4, 18.5, 18.6. 18.7,25.2
land, 18.1
agricultural production see also dairy products, meat and meat products, wool
crops, 18.7
indicators of, 18.1
marketing, of products, 18.3, 18.4, 18.5, 18.6, 18.7
Agriculture Facts, 18.1
Agriculture, Ministry of, 3.3, 18.1
Agriculture Production Survey, 18.2, 18.7
agriculture, agricultural expenditure, 18.1
aspects of, 18.1
beekeeping, 18.6
cattle, 18.1, 18.2
costs of, 18.1
crops, 18.7
current situation and trends, 18.1
dairy farming, 18.1, 18.2, 18.5
deer farming, 18.1, 18.2, 18.3
deer velvet, 15.2
exports, 18.1, 18.2
farm employees, 18.1
flower exports, 18.7, 25.2
goat farming, 18.1, 18.2
international policies, 18.1
livestock, 18.2
numbers and types of farms, 18.1
pastoral, 18.2
pig farming, 18.1, 18.2, 18.6
policies, international, 18.1
poultry, 18.6
production indicators, 18.1
quarantine, 18.1
research, 15.1
sheep, and sheep farming, 18.1, 18.2, 18.3, 18.4
topdressing, 18.1, 23.2
venison exports, 18.3
aid to developing countries, 4.1
AIDS (acquired immune deficiency syndrome), 8.3
air force (Royal NZ Air Force), 4.4
navigation systems, international award, 23.2
quality, 16.2
transport, see aviation
aircraft navigation, Oceanic Control System, 23.2
accidents, 23.2
airline services, international, 23, 23.2
airports, 23, 23.2
cargo at, 25.5
Airways Corporation of New Zealand Ltd. 23.2
overseas use of OCS (Oceanic Control System). 23.2
ALAC (Alcohol Advisory Council), 8.3
alcohol see also wine
consumption, 8.3
excise on, 28.2
impairment of drivers, 23.4
legal aspects of consumption, 24.1
mental health facilities patients. 8.4
sale of, 24.1
Alexander Turnbull Library, 12.4
allowances, income support, 7.1
amenities, of dwellings, 6.1
amphibia and reptiles, 1.4
animals and plants, 1.4
animals, farm, see livestock
anniversary day holidays, provincial, 14.5
Antarctica New Zealand, 15.2
Antarctica, Defence Force support in, 4.4
environment, 16.3
international co-operation, 15.2
NZ scientific research in, 15.2
ozone hole over, 1.3
Ross Dependency, 4.3
Antarctic science, 15.2
anthems, national, 3.1, 3.5
antiquities, protection of, 12.2
annual economic indicators, 17.5
ANZAC exchanges, 4.1
ANZAC frigates, 4.4
ANZSIC (Australian New Zealand Standard Industrial Classification), 21 24.4
ANZUS (Australia, New Zealand and United States) Treaty, 4.1
APEC (Asia/Pacific Economic Co-operation), 4.1
Bogor Declaration, 21
countries, trade with, 25.4
educational links, 9.3
customs links, 25.1
apiaries, 18.6
apparel, cost of, 26.1
expenditure on, 6.1
exports of, 21
industry, 21
apples and pears, exports, 18.7, 25.2
production, 18.7
appliances, in households, 6.1
aquaculture, 19.3
archaeological sites, protection of, 12.2
archives, national, 12.2
area of NZ, 1.1, 16.2
armed forces see Defence Force, NZ
armed offenders squads, police, 10.4
army (NZ Army), 4.4
arrivals, in country see also immigration, 5.3
art galleries and museums, 12.2
art, 12.2, 12.3
artificial aids, benefits for, 8.2
arts and cultural activities, 12.1
grants to, 12.1
national collections, 12.2
research, 12.1
special funding, 12.1
Arts Assembly, NZ. 13.1
Arts Council of New Zealand Toi Aotearoa see Creative New Zealand, 12.1
asbestos, 8.3
ASEAN (Association of South-East Asian Nations), 4.1, 4.4
Free Trade Area, 21
dialogue partner with, 4.1
Asia 2000 Foundation, 4.1
business grants programme, 25.4
culture and sport grants programme, 12.1
education programme, 9.2
media and culture grants programme, 11.4
NZ-Asian culture, 12.1
NZ culture to Asia, 12.3
research with Asia, 15.1
Asia, defence assistance, 4.4
Asian countries, relations with, 4.1, 25.4
Asian Development Bank, 4.2 Assignee, Official, 10.3,24.2
assistance to developing countries, 4.1
astronomy. Carter Observatory, 15.1
ASYCUDA (Automated System for Customs Data), NZ Customs involvement in. 25.1
ATM (automated teller machines), 27.1 Audit Office, 3.3
Auditor-General, Controller and, 3.3
Australia New Zealand and United States Treaty (ANZUS), 4.1,4.4
Australia New Zealand Closer Economic Relations Trade Agreement (CER), 4.1,21
Australia
ANZAC frigates, 4.4
ANZSIC (Australian and NZ Standard Industrial Classification), 21, 24.4
as defence partner (CDR), 4.1,4.4
Australia and New Zealand Food Authority. Code & Council, 8.3,21
benefit reciprocity, 7.1
CER with, 4.1, 21
double taxation agreement, 4.1
exports to, 25.4
immigration status of Australians, 4.1
JAS-ANZ, standards accreditation, 15.2
Maori in Australia. 5.4
NZers living in Australia, 5.4
NZers visiting, 13.2
NZLIA links with ALIA (Australian Library and Information Association), 12.4
Parliamentary Select Committee exchanges. 3.2
pharmacists' reciprocity, 8.2
relations with, 4.1
RNZAF at Nowra, 4.4
social security agreements, 4.1. 7.1
teacher registration links, 9.1
trade with, 25.4
trans-Tasman food standards, 21
trans-Tasman Mutual Recognition Agreement, 21
author's fund, 12.4
Autocheck, 23.4
aviation, civil
accidents, 23.2
aerial work, 23.2
airlines, 23, 23.2
airports, 23, 23.2
distances to overseas destinations, 23.2
domestic, 23, 23.2
international, 23.2
licensing and control of, 23.2

B

balance of payments (NZ transactions with the rest of the world), 17.3. 17.5
Ballet, Royal NZ, 12.3
bankruptcies, 24.2
Banking Ombudsman. 27.1
banks and banking, 27.1
ATM, 27.1
EFTPOS in NZ, 27.1
finance institutions, 27.1
foreign ownership of, 27.1
public disclosure, 27.1
registered banks, 27.1
Reserve Bank of NZ, 27.1
self-regulation, 27.1
statistics, 27.1
beef, 18.3 beekeeping, 18.6
bees and beekeeping, 18.6
Beijing, Platform for Action implementation, 6.3
BellSouth NZ. 11.2
benefits and pensions (see also family assistance, superannuation), 7.1
accident compensation. 8.5
accommodation, and supplement. 7,1. 22.2
artificial aids, 8.1
child care subsidy. 7.1
current rates, 7.1
dental, 7.1
disability allowance, 7.1
domestic purposes, 7.1
expenditure on, 7.1
family assistance/support. 7.1
funeral grant, 7.1
handicapped child, 7.1
independent youth, 7.1
invalids, 7.1
job search allowance, 7.1
maternity. 8.2
number of, 7.1
NZ superannuation, 7.1
orphans & unsupported child, 7.1
pharmaceutical, 8.2
reciprocity agreements, 7.1
sickness, 7.1
special needs grant, 7.1
special, 7.1
training incentive, 7.1
training, 7.1
transition to work, 7.1
transitional retirement, 7.1
unemployment, 7.1
veterans pension, 7.1
war pensions, 7.1
widows, 7.1
bestsellers 1997, 12.4
betting and gaming, 13.1
Casino Control Authority, 13.1
NZ history, 13.1
NZ Lotteries Commission, 13.1
sports, 13.1
Totalisator Agency Board, 13.1
“Beyond Dependency” conference, 7.2
bilateral assistance, 4.1
bilateral relationships (MFAT), 4.1
Bill of Rights Act 1990, NZ, 3.2, 6.3
Bills, passing of in Parliament, 3.2
biodiversity, 1.4, 4.2, 16.3
Bio-Gro organic products, 25.4
birth, country of, 6.3
Births, Deaths and Marriages Registry, 5.3
births and birth rates (see also childbirth), 5.3
average age of new mothers. 5.3
Maori. 5.3, 6.4
outside marriage, 5.3
registration of, 5.3
summary (1855-1995), 5.3
Bogor Declaration of APEC, 21
bookmaking, 13.1
books and libraries, 12.4
author's fund. 12.4
Books in Homes scheme, 12.4
imports of, 25.3
legal deposit, 12.4
publishing, 12.4
Society of Authors, 12.4
border operations (Customs Service), 25.1, 25.4
BRANZ (Building Research Association of NZ), 22.3
breastfeeding, 8.3
Broadcasting Commission (NZ On Air), 11.1
Standards Authority, 11.1
broadcasting, 11.1
archives, Radio New Zealand's Sound Archives, 11.1
Maori Broadcasting Funding Agency (Te Mangai Paho), 11.1
Maori broadcasting, 11.1
policy, 11.1
public broadcasting fee. 11.1
radio, 11.1
standards, 11.1
television, 11.1
Budget process and dates, 28.1
Building Industry Authority, 22.3
Research Association of NZ (BRANZ), 22.3
building and construction (see also housing), 22.3
authorisations, 22.3
Code, NZ, 22.3
consents, 22.3
energy and environment issues, 22.3
price indexes, 22.3
research, 22.3
work put in place, 22.3
buildings
construction law, 22.3
historic, 12.2
bursaries, for tertiary study, 9.2
buses, 23.4
Business Directory (Statistics New Zealand), 17.6
business development, 21
activity in national accounts, 17.2
information, 21
statistics, 17.6
butter, 18.5, 25.2

C

CAB (Citizens Advice Bureaux), 7.2
Cabinet, 3.2
Department of the Prime Minister and, 3.2
cable television, 11.1
cadets (NZ Cadet forces), 4.4
Campbell Island, 1.1
cancer, deaths from, 8.3
carillon, National War Memorial, 3.3
Canada, TEC (Trade and Economic Co-operation Agreement) with, 4.1
cancer, deaths from, 8.3
Cannons Creek Fanau Centre, 7.2, 9.2
Capital Goods Price Index, 26.3
capital finance (national accounts), 17.2
gains, tax on, 28.2
care and protection notifications, 7.2
Career Service rapuara, 9.1, 14.3
career planning, 14.3
cargo
air, 25.5
handled at ports, 25.5
overseas, 25.5
carpet industry, 21
cars, 6.1,21,23.4
cost of running, 23.4
ex-overseas and imported, 21, 23.4
imported, registrations, 23.4
Carter Observatory, 15.1
cartoons, NZ, collecting, 12.4
cartoons, 2.2. 3.2, 3.4, 8.4. 9.1.9.3. 12.4. 16.2, 18.2, 24.2
casein and caseinates, 18.5, 25.2
Casino Control Authority, 13.1
casinos, 13.1
cattle, 18.1, 18.2
caves, depth and length, 1.1
Cawthron Institute, 15.1
CCMAU (Crown Company Monitoring Advisory Unit), 3.3,8.1, 15.1
cellular phones, 11.2
censorship, 10.3, 12.1
film, 12.1
Census of Population and Dwellings 1996
ethnic origins, 5.4, 6.3
households and dwellings, 6.1
incomes, 14.4
labour force, 14.1
Maori population, 5.4
on the Web, 5.1
Pacific Island Polynesian population, 5.4
population 1858-1996,5.1
Post Enumeration Survey, 5.4
religious affiliations, 6.3
results on Internet, 5.1
total population, 5.1
travel to work, 23.4
centenarians, Queen's telegrams to, 3.3
central government finance
accrual accounting, 28.1
appropriation process, 28.1
borrowing, 28.3
expenditure, 28.1
fiscal responsibility, management and policy, 28.1
lines of accountability, 28.1
operating balance, 17.6, 28.1
public debt, 17.6.28.3
roles and responsibilities, 28.1
revenue see taxation
securities on issue, 27.2
statement of financial position, 28.2
CER (Australia New Zealand Closer Economic Relations Trade Agreement), 4.1, 21
cereals, 18.7
Certificate of Fitness see Vehicle Inspection Certificate (VIC)
cervical screening programme, 8.3
Chamber Music New Zealand, 12.3
Chatham Islands, 1.1, 1.5,3.4
Chatham Islands (Rekohu) and Moriori, 6.4
cheese, 18.5, 25.2
CHEs see Crown health enterprises
chicken consumption, 18.3
production, 18.6
Child, UN Convention on the Rights of, 6.2
child abuse, 6.3, 7.2
care subsidy, 7.1
support, 6.2,7.1.28.2
childbirth
births and birth rate, 5.3
infant mortality, 8.3
maternal deaths, 8.3
maternity services, 8.3
parental leave, 14.5
childcare and pre-school education see education, kohanga reo
centres and playgroups, 9.2
Children, Office of the Commissioner for, 6.3
Young Persons and their Families Service, 7.2
Children and Young Persons Courts, see Youth Justice Service, 7.2
Children's Health Camps, 8.3
children
abuse of, 6.3, 7.2
adoption, 7.2
care and protection services, 7.2
community services card, 8.2
custody and guardianship, 7.2
day care for, 9.2, 9.4
deaths, accidents and violence, 8.5
education of see education
family group conferences, 7.2
health of, 8.3
in care of Department of Social Welfare, 7.2
overseas, educated by Correspondence School, 9.2
preschool, violent and accidental deaths, 8.5
UN Convention on Rights, 6.3
vaccinations & immunisations, 8.2, 8.3
youth justice services, 7.2
China, People's Republic of, relations and trade with, 4.1, 25.4
chiropractors, 8.1
choirs, 12.3
Choral Federation, NZ, 12.3
Christian radio, 11.1
chronology 1997,2.1
cl300-1996, 2.2
of major economic reforms, 17.1
churches see religious affiliation
Churchill Memorial Trust fellowships, 4.2
cinema see film cinema attendance, 12.2
cities and city councils (see also urban areas), 3.4
population of, 5.2
Citizens
Advice Bureaux (CAB), 7.2
Initiated Referenda, 3.2
Initiated Referenda petitions, 1997, 3.2
citizenship, 6.3
applications granted, 6.3
Civil Aviation Authority, 23.2
civil aviation, see aviation, civil
defence, 8.6
jurisdiction of courts, 10.1
claims process, Maori land, 6.4
under Treaty, 6.4
CLANZ see Community Learning Aotearoa New Zealand
‘clean and green’ image, 16.2
CLEAR Communications Ltd, 11.2
Clerk of the House of Representatives, 3.2
of Writs, 3.3
climate, 1.3, 16.2, 20.1
change, 4.2, special debate on, 3.2
extremes, 1.3
map, 1.3
Closer Defence Relations (CDR) with Australia, 4.1,4.4
Economic Relations (CER) with Australia, 4.1, 21
coal, 20.1,20.5,20.8
production, consumption, exports, 20.5
resources, 20.5
coastal shipping, 23.1
coat of arms, ii, 3.3, 3.5
coins and coinage, 27.2
colleges of education, 9.1, 9.2, 9.3
Commerce Commission, 24, 24.2
1997 highlights, 24.2
Commerce, Ministry of, 3.3, 11.1, 11.4, 15.2.20.1.21
Commission on Sustainable Development (CSD), UN, 16.2,
Commissioner
for Children, 6.3
for the Environment, Parliamentary, 3.3
Privacy, 3.3
Retirement, 7.1
States Services, 3.3
Commissions of inquiry, 3.2
‘Winebox,’ 3.2
Royal, 3.2
Commonwealth, 4.1, 4.2
Parliamentary Association (CPA), 3.2
Youth Programme, 13.1
communicable disease control, 8.3
Communications Division (Ministry of Commerce), 11.1, 11.4
Minister of, 11.1
communications, international comparison, 11.2
Community Employment Group, 14.3
Funding Agency, 7.2, 14.9
Housing Limited, 22.2
Learning Aotearoa New Zealand, 9.3
Probation Service (Department of Corrections), 10.3
Services Card, 7.1, 8.2
Support Groups, 10.4
Taskforce, 14.3
community boards, 3.4
education programmes, 9.3
fitness and leisure, 13.1
law centres, 10.1
playgroups, 9.2
programme (sentence), 10.3
programmes, funded by NZCFA, 7.2
service (sentence), 10.3
services card, 7.1, 8.2
services Maori, 6.4
welfare, funding, 7.2
community-based sentencing, 10.3
companies, 24.2
insolvencies, 24.2
liquidation, 24.2
overseas origin, 24.2
practices of, 24.2
registration, 24.2
statistics, 24.2
takeovers, 24.2
taxation of, 28.2
comparisons, international see international comparisons compensation for criminal injuries, 10.2
accident, 8.5
Complaints Review Tribunal (human rights, race relations, privacy), 6.3, 10.1
condoms, 8.2
conferences, 13.2
Congress, Maori, 6.4
Conservation Authority, New Zealand, 16.3
Department of, 3.3, 16.1, 16.2, 16.3
boards, 16.3
Conservation Corps, 14.3
conservation of natural resources (see also environment)
forests, 19.1
legislative reform, 16.2
of cultural property, 12.2
of water and soil, 16.2
Consolidated Accounts of the Nation, 17.2
constitution, 3.1
recent reform, 3.1
construction, see building and construction
Consumer Affairs, Ministry of, 24.1
Consumer Guarantees Act 1993, 24.1
consumer protection, 24, 24.1
Consumers' Institute, 24.1
Consumers Price Index (CPI), 17.5, 26.1, Glossary
1998 revision, 26.1
all groups, 26.1
all groups, all urban areas combined, 26.1
commodity weighting, 26.1
expenditure weighting, 26.1
geographic coverage and published series, 26.1
geographical variation, 26.1
groups, 26.1
index regimen, 26.1, Glossary
international comparison, 26.1
North and South Islands, 26.1
price movements, 26.1
price surveys, 26.1
selected items, 26.1
contaminated sites, 16.2
continuing education, 9.3
Controller and Auditor-General, 3.3
convictions
drug offences, 10.2
non-traffic offences, 10.2
offences against the person, 10.2
property offences, 10.2
traffic offences, 10.2
violent offences, 10.2
Cook Islands, relationship with, 4.1
Cook Strait rail ferry service, 23.1, 23.3
copyright, 12.1
licensing, 12.1
corporations, government, see State-owned enterprises
Corrections, Department of, 3.3, 10.3
corrections system, 10.3
census of prison inmates, 10.3
collection of fines, 10.3
community-based sentencing, 10.3
Community Probation Service, 10.3
detention, 10.3
Psychological Service, 10.3
Public Prisons Service, 10.3
corrective training, 10.3
Correspondence School, 9.2, 9.3
corruption, 24.4
cost of living, (see also Consumers Price Index, retail prices), 26.1
cot death see sudden infant death syndrome
Council for Educational Research, NZ, 9.1
country of birth, 6.3
Court of Appeal, 10.1, 10.2
courts (see also tribunals), 10.1
civil jurisdiction of, 10.1
Department for, 3.3
District, 10.1, 10.2
Employment, 10.1, 14.5
Environment, 10.1
Family, 7.2, 10.1
High, 10.1, 10.2
legal aid, 10.1
Maori Land and Appellate, 10.1, 16.1
Youth, 10.1, 10.4
CPI see Consumers Price Index, 26.1
Creative New Zealand (Arts Council of NZ Toi Aotearoa). 12.1
Creative Explorer (CD-ROM), 12.1
credit cards, 24.4, 27.1
services, in CPI, 26.1
crime, 10.2
compensation for injuries, 10.3
new offences, 10.2
prevention, 10.3
proceeds of, 10.3
reported offences, 10.2
criminal justice, 10.2
proceedings, 10.2
CRIs (Crown Research Institutes), 15.1
Crop and Food Research, Institute for, 15.1
crops, 18.7
fruit, 18.7
grains, 18.7
seeds, 18.7
Crown Company Monitoring Advisory Unit (CCMAU), 3.3,8.1, 15.1
entities, 28.1
complaints about, 3.3
executives' remuneration, 8.1
health enterprises (CHEs), 8.1, 28.1
complaints about, 3.3
executives' remuneration, 8.1
Law Office, 3.3, 10.1
Minerals Act 1991, 16.2, 20.8
reporting entity, 28.1
Research Institutes (CRIs), 15.1
solicitors, 10.1
Crown-owned entities, 3.3, 28.1
lands, 16.1
CSD (Commission on Sustainable Development), UN, 16.2
Cultural Affairs, Ministry of, 3.3, 12.1
cultural sites, protection of, 12.2
statistics, NZ framework for, 12.1
currency, 27.2
counterfeit notes, 27.1
curriculum, national, for schools, 9.2
NZ curriculum framework, 9.2
Customs, New Zealand, 3.3, 23.2, 25.1
customs tariff and revenue, 25.1, 28.2
cycling
leisure, 13.1
to work, 23.4
CYPFS (Children, Young Persons and their Families Service), 7.2

D

Dairy Board, NZ, 18.5
dairy farming and products, 18.5
butter, 18.5
casein, 18.5
cheese, 18.5
exports, 18.5, 25.2
marketing of, 18.5
milk and milk products, 18.5
prices, 18.5
production index, 18.1
dance, 12.3
data communications, 11.4
daycare, 9.2, 9.4
daylight saving, 7.5
de facto relationships, 5.3, 6.2
de-mining assistance, 4.4
deaf community and NZ sign language, 6.3
deaths and death rates, 5.3, 5.5, 9.3
accidental, 8.5
of children, 8.5
infants, 8.3
rate (summary, 1901-95), 5.3
deaths, drowning, 8.5
falls, poisoning and other external causes, 8.5
fire, 8.6
from cancer, 8.3
from volcanoes, 1.2
infant, 8.3
major causes, 8.3
maternal, 8.3
registration of, 5.3
road motor accidents, 8.5
summary (1901-95), 5.3
debt
overseas, 17.4, 28.3
private, see credit, mortgages
public, 28.3
deer farming, 18.1, 18.2, 18.3
velvet, 15.2, 25.2
Defence Force, NZ, 3.3, 4.4
overseas activities, (map), 4.4
New Zealand Army, 4.4
overseas, 4.2, 4.4
community assistance, 4.4
New Zealand Army, 4.4
overseas, 4.2, 4.4
energy management, 4.4
Royal New Zealand Air Force, 4.4
Royal New Zealand Navy, 4.4
strength of, 4.4
Defence, Ministry of, 3.3, 4.4
The shape of New Zealand's defence 1997, 4.4
defence, 4.4
agreements, 4.4
ANZUS, 4.4
community assistance, 4.4
disaster relief, 4.4
exercises, 4.4
expenditure, 4.4
forces overseas, 4.4
international relationships, 4.4
locations in NZ (map), 4.4
personnel, 4.4
policy, 4.4
degrees awarded, 9.3
demography, see population
Dental Council, 8.1
dental
services, 8.2, 8.3
technicians, 8.1
fluoridation, 8.3
health, 8.3
School Dental Service, 8.3
dentists, 8.1
Department for Courts, 3.3, 10.1
Department of Conservation, 3.3, 16.1, 16.3
international involvement with biodiversity, 16.3
Births, Deaths & Marriages Registry, 5.3
Dictionary of NZ Biography, 3.3
Ethnic Affairs Service, 6.3
National identity, 3.3
Link Centres, 3.3
Visits and Ceremonial Office, 3.3
Information New Zealand and Terralink Ltd
Corrections, 3.3, 10.3
Births, Deaths & Marriages Registry, 5.3
Dictionary of NZ Biography, 3.3
Ethnic Affairs Service, 6.3
National identity, 3.3
Link Centres, 3.3
Visits and Ceremonial Office, 3.3
Information New Zealand and Terralink Ltd
Internal Affairs, 3.3
Births, Deaths & Marriages Registry, 5.3
Dictionary of NZ Biography, 3.3
Ethnic Affairs Service, 6.3
National identity, 3.3
Link Centres, 3.3
Visits and Ceremonial Office, 3.3
Information New Zealand and Terralink Ltd
Labour, 3.3, 8.7, 14.1, 14.2
Information New Zealand and Terralink Ltd
Prime Minister and Cabinet, 3.3
Information New Zealand and Terralink Ltd
Social Welfare, 3.3, 7.1
Information New Zealand and Terralink Ltd
Statistics (Statistics New Zealand), 3.3
Information New Zealand and Terralink Ltd
Survey and Land Information (DOSLI) now Land
Information New Zealand and Terralink Ltd
departments, government (see also State sector)
chief executives of, 3.3
remuneration of, 3.3
expenditure by, 28.1
functions of, 3.3
departures, from country, 5.4
deportation, 6.3
Depression of the 1930s, 17.1
design, industrial, 15.2
developing countries, relations with, 4.1
Dictionary of NZ Biography, 3.3
dietitians, 8.1
diplomatic representatives overseas, 4.1
Directory of Official Information, 3.3
disability allowance, 7.1
support, 8.3
survey, 8.3
Disability Survey, 8.3
disabled persons
assistance and services for, 7.1, 7.2
benefits for, see benefits and pensions
disaster relief, help in South Pacific, 4.4
discharges, industrial, 21
diseases
AIDS, 8.3
communicable, control of, 8.3
occupational, 8.7
treated in public hospitals, 8.4
displaced persons, see refugees
Disputes Tribunals, 10.1
dissolution of marriage, 6.3
distance e 10.1
dissolution of marriage, 6.3
distance education, 9.2, 9.3
District Courts, 10.1, 10.2
district planning, 16.2
divorce, 6.2
doctors, 8.1
dogs, police, 10.4
domestic purposes benefit see benefits
trade and services see retail trade and services
DOSLI see Department of Survey and Land Information (former)
double taxation agreements, 4.1, 28.2
drinking, legal aspects of, 23.4, 24.1
drivers' licences, 23.4
driving offences, 10.2, 23.4
drownings, 8.5
drugs and medicines, control of, 8.3
drug seizures, 10.4
drug testing in sport, 13.1
convictions for offences, 10.2
legal, control of, 8.3
misuse of, 8.3
offences involving, 10.2
testing in sport, 13.1
dwellings (see also households, housing), 6.1
landlords of, 6.1
Maori see Maori population
number and type, 6.1
occupants in, 6.1
Pacific Island see Pacific Island population
size of new, 22.2
tenure of, 6.1
types of, 6.1

E

EAB (External Assessments Bureau), 4.5
Early Childhood Development Unit, 9.1
earnings, 14.4, 17.6
Earthquake Commission, 8.6, 24.3
earthquakes, 1.2
reported from USA and UK, 1.2
in 1997, 1.2
Economic Research, New Zealand Institute of, 15.2
economic indicators, annual, 17.5
Economy Wide Census, 17.6
economy, 17.1-17.6
1930s Depression, 17.1
historical essay, 17.1
major reforms since 1984, 17.1
Education and Training Support Agency (ETSA), 9.1, 14.3
Ministry of, 3.3, 9.1,9.4
Review Office (ERO), 3.3,9.1
education (see also examinations, schools, students, universities), 9.1-9.4
additional teaching resources, 9.2
funding, 9.1
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
administration of, 9.1
funding, 9.1
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
advisory services, 9.2
funding, 9.1
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
agencies, 9.1
funding, 9.1
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
assessment of students, 9.2
funding, 9.1
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
continuing education, 9.3
funding, 9.1
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
curriculum, 9.2
funding, 9.1
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
distance, 9.3
funding, 9.1
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
early childhood, 9.2
funding, 9.1
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
Education Development Initiative (EDI), 9.2
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
expenditure on, 9.1, 9.4
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
health, 8.3
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
information studies and teacher librarians, 9.2
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
information technology in, 11.4
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
international comparisons, 9.1, 9.3
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
international students, 9.2
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
internationalisation of, 9.3
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
Koe Ako a e Kakai Pasifika, Pacific Islands Plan, 9.4
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
Maori language, 9.1, 9.2, 9.4
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
Maori, 9.1,9.2, 9.4
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
national qualifications framework, 9.2
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
national secondary qualifications, 9.2
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
numbers of institutions, 9.2
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
Pacific Island people's, 9.4
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
polytechnics, 9.1,9.2,9.3
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
post-compulsory, 9.3
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
preschool, 9.1,9.2, 9.4
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
primary schools, 9.2
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
private training establishments, 9.4
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
public expenditure on, 9.1
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
REAPs, 9.2
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
Review Office, 3.3, 9.1
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
rural,9.2, 9.4
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
Service Centres, 9.1
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
Skill New Zealand, 9.4
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
special education, 9.1, 9.2
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
student support, 9.1, 9.3
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
teacher trainees, 9.3
training, 9.3
resources, 9.2
chief executives' remuneration, 9.3
teaching position numbers, 9.3
resources, 9.2
chief executives' remuneration, 9.3
technical, 9.3
chief executives' remuneration, 9.3
tertiary, funding of, 9.1
chief executives' remuneration, 9.3
universities, 9.3
wananga, 9.2, 9.3
educational comparisons, OECD, 9.1
Educational Research, NZ Council for, 9.1
EECA see Energy Efficiency and Conservation Authority
EEO see Equal Employment Opportunities
EEZ (Exclusive Economic Zone), 19.3
Efficiency Strategy, Energy, 20.7
EFTPOS in NZ, 27.1
EFTS (Equivalent Full-Time Student) system, 9.1
Egg Producers Federation, 18.6
eggs, 18.6
El Nino and southern oscillation, 1.3
elections, Clerk Writs of, 3.3
electoral boundaries (& maps), 3.2
local government, 3.4
Parliamentary, 3.2
results, 3.2
studies, 3.2
voting, 3.2
electoral boundaries (& maps), 3.2
enrolment centre, 11.3
referendums, 3.2
reform, MMP, 3.2
electorates, parliamentary
listed, 45th Parliament, 3.2
Māori, 3.2
maps, 3.2
new, 3.2
Electricity Corporation of New Zealand, 20.2
electricity, 20.1, 20.2
ECNZ, Contact Energy, 20.2
consumption of, 20.2
generation of, 20.2
prices, international comparison, 20.2
embassies overseas, 4.1
emergency benefits, 7.1
emigration, 5.3
Employment Contracts Act 1991, 14.5
Court, 10.1, 14.5
Service, New Zealand, 14.3
Tribunal, 10.1, 14.3
employment (see also labour force, labour relations, occupations, unemployment)
and human rights see Human Rights Commission
and training programmes, 14.3
assistance, 14.3
by ANZSIC, 17.6
by region, 17.6
ethnic, 14.1
farm, 18.1
in manufacturing, 21
NZ Employment Service, 14.3
OECD comparisons, 14.3
of women, 14.1
recorded by Business Directory, 17.6
status, 14.1
surveys of, 14.1
temporary workers, visas for, 6.4
training for, Maori, 14.3
employment-related training, education and, 14.3
endangered species, 1.4
Energy Efficiency and Conservation Authority (EECA), 20.7
energy, 20.1-20.8
and mineral production, 20.8
coal, 20.1,20.5
electricity, 20.1,20.2
gas, 20.1,20.4
geothermal, 20.1,20.6
oil, 20.1, 20.3
renewable, 20.6
consumption, 20.1
coal, 20.1,20.5
electricity, 20.1,20.2
gas, 20.1,20.4
geothermal, 20.1,20.6
oil, 20.1, 20.3
renewable, 20.6
demand and supply, 20.1
coal, 20.1,20.5
electricity, 20.1,20.2
gas, 20.1,20.4
geothermal, 20.1,20.6
oil, 20.1, 20.3
renewable, 20.6
efficiency, 20.7
coal, 20.1,20.5
electricity, 20.1,20.2
gas, 20.1,20.4
geothermal, 20.1,20.6
oil, 20.1, 20.3
renewable, 20.6
environmental impacts of, 20.1, 20.8
coal, 20.1,20.5
electricity, 20.1,20.2
gas, 20.1,20.4
geothermal, 20.1,20.6
oil, 20.1, 20.3
renewable, 20.6
forms of,
coal, 20.1,20.5
electricity, 20.1,20.2
gas, 20.1,20.4
geothermal, 20.1,20.6
oil, 20.1, 20.3
renewable, 20.6
fossil, 20.3, 20.4, 20.5
geothermal, 20.1, 20.6
policy, 20.1
primary, 20.1
renewable, 20.6
research projects 1997, 20.1
review of energy research, 20.1
supply, 20.1
wind, 20.6
energy management, Defence Force, 4.4
engineering industry, 21
Enterprise Allowance, 14.3
Survey, annual, 17.6
entertainment expenses, 28.2
Environment Court, 10.1
Environment 2010 Strategy, 16.2
Ministry for the, 3.3, 16.2
Parliamentary Commissioner for the, 3.3
environment (see also conservation of natural resources, planning), 16.2
and mineral exploitation, 16.2, 20.8
Antarctic, 16.3
air quality, 16.2
biodiversity, 4.2, 16.3
Bio-Grow organic products, 25.4
global issues, 16.2
MFAT and, 4.2
railways, 23.3
recycling, 16.2
Regional Councils, 16.2
Resource Management Act 1991, 16.2
sustainable management, 16.2
tourism and, 13.2
trade and, 4.2
Environmental Choice NZ, 15.2, 24.4
Risk Management Authority (ERMA), 16.2
Science and Research, Institute of (ESR), 15.1
environmental
accounts, 3.3, 24.2
public participation, 16.2
directorates (in Ministry), 16.3
public participation, 16.2
health, 8.3
public participation, 16.2
issues, global, 16.2
public participation, 16.2
planning, 16.2
public participation, 16.2
Epitaph (TV Series), 11.1
Equal Employment Opportunities (EEO) Trust, 6.3, 14.5
Opportunities Tribunal (now Complaints Review Tribunal), 10.1
equal employment opportunities (EEO), 3.3, 6.3, 14.5 pay, 14.5
ERO (Education Review Office), 3.3, 9.1
erosion, control of, 16.2
ESR (Institute of Environmental Science and Research), 15.1
Ethnic Affairs Service (Department of Internal Affairs), 8.3
ethnic councils, 6.3
ethnic groups in NZ, 5.4, 6.3
ages of, 6.3, 6.5
distribution of, 6.5
ethnic minorities, race relations, 6.3
ethnicity of population, 6.3
1996 Census, 5.4, 5.5
Māori, see Māori population
Pacific Island Polynesians, see Pacific Island population
see also race relations, Treaty of Waitangi
EU (European Union) relations with, 25.4
European countries, benefit reciprocity with some, 7.1
relations with, 4.1, 25.4
European Union (EU) trade with, 25.4
events, chronology of
in 1997, 2.2
in NZ history, 2.2
ex-nuptial births see births outside marriage, 5.3
ex-overseas cars, registration of, 23.4
examinations, 9.2, 9.3
ExcelleNZ business development, 21
exchange rates, 27.2
excise duties, 25.1, 28.2
Exclusive Economic Zone (EEZ), 4.4, 19.3
Executive Council, 3.2
exotic forests see planted production forests
expenditures, of households, 6.1
Export Price Index, 25.6
Volume Index, 25.6
export team, Māori, 25.4
exports, 17.1, 25.2
agricultural (various), 18.3-18.5, 25.2
agricultural, see agricultural marketing, of products
awards, 25.3
coal, 20.5
dairy produce, 18.5, 25.2
deer velvet, 25.2
Export Price Index, 25.6
Export Volume Index, 25.6
fish, crustaceans and molluscs, 19.4, 25.2
flowers, 18.7, 25.2
forestry products, 19.2, 25.2
fruit and nuts, 25.2
global overview 1997, 25.4
ironsand, 20.8
major commodities exported, 25.2
meat and edible offal, 25.2
seafood, 19.4, 25.2
success stories, 25
Terms of Trade Index, 25.6
various commodities, 25.2
venison, 18.3
wool, 25.2
External Assessments Bureau (EAB), 4.5
external migration, 5.3
transactions account of the national economy, 17.2

F

factories (see also manufacturing enterprises, occupational safety and health), 2.1
fair trading legislation, 24.1, 24.2
families (see also households), 5.3
Family
Courts, 10.1
Planning Association, 8.3
Service Centres, 7.2
family assistance (see also benefits), 7.1, 28.2
childcare subsidy, 7.1
60 years of, 8.3
daycare, 9.2
60 years of, 8.3
group conferences, 7.2
60 years of, 8.3
health, 8.3
60 years of, 8.3
law, 6.2, 7.2, 10.1
60 years of, 8.3
planning, 8.3
60 years of, 8.3
size, 5.3
support (see also benefits), 7.1, 28.2
violence unit, 7.2
Fanau Centre, Cannons Creek, 7.2
FAO (UN Food and Agricultural Organisation), 4.2, 18.1
MAF involvement in, 18.1
farm employment, 18.1
Farm Expenses Price Index, 18.1
farming
chicken and egg, 18.1
international, 18.1
see agriculture, livestock
venison, 18.3
farmland, sales of, 16.1
use of, 18.1
farms, numbers and types, 18.1
fauna, see vegetation and wildlife
FCCC see UNFCCC
feature films, 12.4
feed, animal, manufacture of, 18.6
stock, 18.7
Fellows of the Royal Society of New Zealand see FRSNZ
ferries, inter-island, 23.1
fertiliser (see also topdressing), 18.1
fertility & population change, 5.3, 5.5
FIBV (International Federation of Stock Exchanges), NZ
Stock Exchange membership of, 24.2
figures and surveys, fisheries, 19.4
Fiji, relations with, 4.1, 25.4
Film and Literature Board of Review, 12.2
film, 12.1, 12.2
film
censorship, 12.1
chronology of NZ feature films (1914-97), 12.4
NZ Film Archive, 12.2
NZ Film Commission, 12.3
films and video recordings, 12.4
classification and censorship of, 10.3, 12.1
financial institutions, 27.1
fines, collection of, 10.3
fingerprints, 10.4
Fire Service, NZ, 8.6
fire and general insurance, 24.3
deaths from, 8.6
fighting and prevention in State lands, 16.3
protection, 8.6
safety, 8.6
firearms review (Sir Thomas Thorp), 10.3
first flag of NZ, ii, 3.5
fiscal responsibility of government 28.1
Fish and Game Councils, 16.3
fish
catch, 19.3
exports, 19.4, 25.2
processing and marketing, 19.4
species, 19.3
stocks, assessment of, 19.3
fisheries
aquaculture, 19.3
control of resources, 19.3
history of management, 19.3
legislation, 19.3
management past and present, 19.3
Ministry of, 3.3, 19.3
protection, 4.4
research, 15.1, 19.3
stock assessment, 19.3
TACC (Total Allowable Commercial Catch), 19.3
Te Ohu Kai Moana (Treaty of Waitangi Fisheries Commission), 19.3
fishing
by foreign vessels, 19.3
Fish and Game councils, 16.3
foreign, 19.3
Industry Board, 19.4
Fish and Game councils, 16.3
foreign, 19.3
management, Māori, 19.3
Fish and Game councils, 16.3
foreign, 19.3
recreational, 13.1
Fish and Game councils, 16.3
foreign, 19.3
research, 15.1
foreign, 19.3
vessels, 19.3
foreign, 19.3
fitness and leisure, funding for, 13.1
Five Power Defence Arrangements, 4.4
flag, first New Zealand, ii, 3.5
NZ, 3.5
floods, 1.3
flora, see vegetation and wildlife
flowers, exports, 18.7, 25.2
fluoridation, 8.3
Food and Agricultural Organisation (FAO), 4.2, 18.1
food
Australia and New Zealand food standards, 21
banks, 7.2
CPI, 26.1
expenditure on, 6.1
exports, 25.2, 25.4
prices, world-wide, 26.1
safety and quality, 8.3
sector, manufacturing, 21
standards, 8.3
footwear industry, 21
Foreign Affairs and Trade, Ministry of, 3.3, 4.1, 9.3, 16.2
foreign aid, 4.1
currency credit ratings, 28.3
exchange market, 27.2
currency debt, 28.3
exchange market, 27.2
policy, 4.1
signals intelligence, GCSB, 4.5
trade see overseas trade
Forest and Bird Protection Society, Royal, 16.2
forest funds, 16.3
parks, 16.3
forest product exports, 19.2, 25.2
forest products, see timber and forest products
Forest Research Institute, 15.1, 19.2
Forestry Corporation Ltd, New Zealand, (former), 19.1
Forestry, Ministry of, 3.3, 19.2
forestry
and logging, 19.1, 19.2
employment in, 19.1
exports, 19.2, 25.2
private, 19.1
products, see timber and forest products
research into, 15.1
state, 19.1
training in, 19.1
forests, 1.5, 19.1
conservation and protection, 16.3
foreign ownership, 19.1
indigenous, 19.1, 19.2
ownership of, 19.1
planted production, 19.1, 19.2
planting of, 19.1
sale of state assets, 19.1
Foundation for Research, Science and Technology (FORST), 15.1
Framework Convention on Climate Change, UN, see UNFCCC
Fraud Office, Serious, 3.3, 24.2
fraud, international, 24.2
freight see cargo
Fringe Benefit Tax, 28.2
FRSNZ (Fellows of the Royal Society of NZ), 15.1
fruit
export, 25.3
production, 18.7
fuels
coal, 20.5
gas, 20.3, 20.4
oil, 20.1, 20.3, 20.5
full-time labour force and work, 14.1
funeral grant, 7.1

G

GAAP (Generally Accepted Accounting Practice), 28.1
galleries, art, 12.2
gambling, 13.1
problem, 13.1
gaming, 13.1
major activities, 13.1
gas, 20.3, 20.4
production, consumption, 20.4
GATT (see also WTO), 4.2, 15.2, 16.2, 18.1
GCSB (Government Communications Security Bureau), 4.5
GDP see gross domestic product
gender analysis framework, Ministry of Women's Affairs, 6.3
gender see sex
General Agreement on Tariffs and Trade (GATT) (see also WTO), 4.2, 15.2, 16.2, 18.1
Assembly see Parliament
general elections, 3.2
geographical features, 1.1
glaciers, 1.1
lakes, 1.1
mountains, 1.1
rivers, 1.1
geography, 1.1
Geological and Nuclear Sciences, Institute of, 15.1
geology (see also minerals and mineral products), 1.2
geothermal power, 20.5
geriatric hospitals, 8.3
glaciers, 1.1
global environmental issues. NZ involvement, 16.2
warming, 16.2, 20.7
glossary of statistical terms, Glossary
GNI see gross national income
goat farming, 18.3
going green, 21
gold, 20.8
Goods and Services Tax (GST), 25.1, 28.2
government departments (see also State Sector),
audits of, 3.3
complaints about, 3.3
descriptions of, 3.3
expenditure by, 28.1
heads of, 3.3
Official Information Act, 3.3
securities market, 27.2
government finance, see central government finance
government fiscal responsibility, 28.1
government stock and securities, 28.3
Government, Executive, 3.2
Communications Security Bureau (GCSB), 4.5
Superannuation Fund, 3.3, 24.3
Governor-General, 3.1, 3.2
Governors see Vice-Regal representative
graduates, tertiary, 9.3
grain, 18.7
grape growing and wine production, 18.7
Green Homes, 22.3
Prescriptions, 8.3, 13.1
greenhouse gases, 16.2, 20.7
greenstone, 20.8
greyhound racing, 13.1
gross domestic product (GDP), 17.2
in constant prices, 17.2
fixed capital formation, 17.2
national income (GNI), 17.2
GST (Goods and Services Tax), 25.1, 28.2
guaranteed minimum family income, 28.2,
guardianship, 6.2

H

Hakituatahi o Aotearoa, Te, first flag of NZ, ii, 3.5
handicapped child allowance, 7.1
persons, see disabled persons
harbours, see ports
Harmonised System, 25.1
hazardous substances, 4.2, 16.2
hazards, volcanic, 1.2
Health and Disability Commissioner, 8.4
Health Funding Authority, 8.1
Health, Information Service, 8.3, 8.4,
Ministry of, 3.3, 8.1, 8.2, 8.3
Research Council, 8.1, 15.1
Sponsorship Council, 8.3
Healthy Lifestyles (He Oranga Poutama), 13.1
health (see also hospitals), 8.1, 8.5
AIDS, 8.3
expenditure on, 8.1
alcohol consumption, 8.3
expenditure on, 8.1
and causes of death, 8.3
expenditure on, 8.1
subsidies, 8.2
expenditure on, 8.1
Children's Health Camps, 8.3
children's, 8.3
Community Services Card, 8.2
dental, 8.1, 8.2, 8.3
disability support, 8.3
disability, 8.3, 8.4
environmental, 8.3
expenditure, 8.1, 8.2
family, 8.3
High Use Health Card, 8.2
inspection, 8.3
insurance, 24.3
Māori see Māori health
medical benefits, 8.2
mental, 8.3, 8.4
occupational, 8.7
professionals, 8.1
promotion, 8.3
public, 8.3
research, 8.1
sector reforms, 8.1
service structure, 8.1
statistics, 8.3
subsidies, 8.2
voluntary sector, 8.3
women's, 8.3
workforce information, 8.3
heart transplants, 8.4
heritage, historical and cultural, 12.2
preserving, 3.3
HES (Household Economic Survey), 6.1
High Court, 10.1, 10.2
Higher Salaries Commission, 3.2, 10.1
Higher School Certificate, 9.2
High Use Health Card, 8.2
highways, 23.4
Hillary Commission for Sport, Fitness and Leisure, 13.1
hire purchase, 24.4
historic places, 12.2
reserves, 12.2, 16.3
Historical Branch, Department of Internal Affairs, 3.3
history, NZ, 2.1, 2.2
Hocken Library, 12.4
holidays, 14.5
home appliances, 6.1
births, 8.3
daycare, 9.2
nursing and home help, 8.2
ownership, 6.1, 22.1
homeseekers lending, 22.2
homicide, 8.5, 10.2
honey, 18.6
honours and appointments, 2.1, 3.1
Order of Merit, 3.1
Order of New Zealand, 3.1
system, NZ, 3.1
horse racing, 13.1
horses, Kaimanawa, 16.3
Horticulture and Food Research, Institute of, 15.1
horticulture (see also crops), 18, 18.1, 18.7
exports, 18.7, 25.2
flower exports, 18.7, 25.2
hospitals, 8.4
administration, 8.4
charges, 8.2
diseases and conditions treated, 8.4
geriatric, 8.3
injury and accident patients, 8.4
inpatients discharged, 8.4
length of stay, 8.4
mental health facilities, 8.4
patients treated, 8.4
public, 8.4
hotels and restaurants, 24.1, 24.4
hours of work, 14.1
House of Representatives, see Parliament
Household Economic Survey see HES
Labour Force Survey, 14.1
household sector in national accounts, 17.2
spending in national accounts, 17.2
households, 6.1
amenities of, 6.1
composition and size of, 6.1
culture, spending on, 12.1
income and expenditure, 6.1
Māori and Pacific Island, 6.1
operation, CPI, 22.2
transport, 6.1
Housing Corporation of NZ, 22.2
Ministry of, 3.3, 22.2
New Zealand Limited, 22.2
housing (see also buildings, dwellings)
assistance, 22.2
community programmes, 22.2
construction, 22.3
costs of, 22.1, 22.2
expenditure on, 6.1
government agencies, 22.2
home ownership, 6.1, 22.1
House Price Index, 22.1
loans for, 22.2
Māori, 6.1
market, 22.1
size of new dwellings, 22.2
standard house, 22.1
Pacific Island Polynesians, 6.1
rental, 22.2
Human Development Index, 6.1
Human Rights Act 1993, 3.2
Commission, 6.3
human rights, 6.3
and UN, 4.2
overseas, 4.2
promotion of equal employment opportunities, 3.3, 6.3, 14.5
hunting and shooting, 13.1
hydro-electric power, 20.1, 20.2

I

IBRD (World Bank), 4.2
ICAO (International Civil Aviation Organisation), 23.2
IEA (International Energy Agency), 4.3
illness, disability and, 7.1
ILO (International Labour Organisation), 23.1
NZ membership of, 14.5
IMF (International Monetary Fund), 17.3, 17.5
immigration, 5.3, 6.3
country of birth, 6.3
from Asia, 5.3
from Pacific, 5.3
immunisation, 8.3
IMO (International Marine Organisation), 23.1
Import Price Index, 25.5
Volume Index, 25.5
imported cars, 25.3
registration, 23.4 imports, 17.1, 25.3
Import Price Index, 25.5
Import Volume Index, 25.5
major commodities imported, 25.3
mechanical and electrical machinery, 25.3
mineral fuels, 25.3
plastic and plastic articles, 25.3
Terms of Trade Index, 25.6
vehicles, 25.3
imprisonment, see prisons and prison inmates
imputation credits, 28.2
Income Support Service, NZ, 7.1
income support, 7.1
Income Survey, 14.4
income tax,
companies, 28.2
personal, 28.2
revenue from, 28.2
incomes, 14.4
earnings, 14.4
gender differences, 14.4
of households, 6.1
Incorporated Societies, 24.1
indemnification for touring exhibitions, 12.1
Independent Broadcasting Association, 11.1
indexes, explained, Glossary
indexes, listed
Capital Goods Price Index, 26.3
Consumers Price Index, 26.1
Export Price Index, 25.6
Export Volume Index, 25.6
Farm Expenses Price Index, 18.1
House Price Index, 22.1
Import Price Index, 25.6
Import Volume Index, 25.6
Labour Cost Index, 14.4
Prevailing Weekly Wage Rates Index (discontinued), 14.4
Producers Price Index, 26.2
Real Wage Rate, 14.4
Share Price Index, 24.2
Terms of Trade Index, 25.6
indigenous biodiversity, 16.3
flora and fauna claim, 6.4
Industrial Research, Institute of, 15.1
industrial accidents, 8.5
design, 15.2
relations see labour relations
safety, see occupational safety
structure of labour force, 14.1
Industry Labelling Body (films and videos), 12.2
Training Organisations (ITOs), 14.3, 19.1
industry, see manufacturing industry
infant mortality, 8.3
inflation, see Consumers Price Index
information technology, 11.4
education, 11.4
industry, 11.4
Internet, 11.4
National Library, 12.4
policy, 11.4
information, matching, 3.3
privacy of, 3.3
injuries, compensation for criminal, 10.2
hospital patients treated for, 8.4
road motor accidents, 8.5
rugby, preventing, 13.1
sports, claims for, 13.1
Inland Revenue Department (see also taxes and taxation), 3.3, 28.2
insolvency, 24.2
Instant Kiwi, Daily Keno, Lotto (gambling), 13.1
Institute of Economic Research, NZ, 15.1
Institute of Environmental Science and Research, 15.1
Geological and Nuclear Sciences, 15.1
Institute of International Affairs, 4.1
Insurance and Savings Ombudsman, 24.3
Insurance Council of NZ, 24.3
insurance, (see also superannuation), 24.3
ACC, 24.3
accident, 8.5
earthquake damage, 24.3
fire and general, 24.3
intermediaries, 24.3
life, 24.3
medical, 24.3
natural disaster, 8.6, 24.3
Ombudsman, 24.3
overseas involvement in, 24.3
regulation, 24.3
statistics, 24.3
Integrated Digital Network (ISDN), 11.2
Intellectual Property Office of NZ, 15.2
Intelligence and Security, Inspector-General of, 4.5
inter-industry studies, 17.2
inter-island ferry services, 23.1, 23.3
Inter-Parliamentary Union (IPU), 3.2
NZ MPs in, 3.2
inter-Parliamentary relations 1997, 3.2
interest rates, see monetary policy, mortgages
interest, tax on, 28.2
Internal Affairs, Department of, 3.3, 5.3, 6.3
internal migration, 5.2
International Accreditation NZ (IANZ), 15.2
Bank for Reconstruction and Development (IBRD), 4.2
Civil Aviation Organisation (ICAO), 23.2
Commission of Jurists (ICJ), 10.1
Development Association (IDA), 4.2
Federation of Stock Exchanges (FIBV), NZ Stock Exchange membership, 24.2
Finance Corporation (IFC), 4.2
Labour Organisation (ILO), 23.1
Marine Organisation (IMO), 23.1
Monetary Fund (IMF), 17.3, 17.5
Organisation for Standardisation (ISO), 15.2, 21
Organisation of Securities Commissions (IOSCO), 24.2
Whaling Commission (IWC), 16.2
international agricultural policies and farming, NZ's relationship with, 18.1
affairs, understanding, 4.1
abortion rates, 8.3
census undercount, 5.4
communications, 11.2
consumer prices and CPI, 26.1
debt to GDP, 28.3
defence expenditure, 4.4
education, 9.2
electricity prices, 20.2
employment, 14.3
farming, 18.1
Human Development Index, 6.1
infant mortality, 8.3
life expectancy (historical), 5.3
motor accident death rates, 8.5
newspaper sales, 11.1
OECD, 9.1, 14.3
overseas aid, 4.1
personnel in r & d, 15.1
postal prices, 11.3
press freedom, 11.1
residential telephone charges, 11.2
standards of living, 6.1
unemployment, 14.3
urbanisation, 5.1
airline services, 23.2
abortion rates, 8.3
census undercount, 5.4
communications, 11.2
consumer prices and CPI, 26.1
debt to GDP, 28.3
defence expenditure, 4.4
education, 9.2
electricity prices, 20.2
employment, 14.3
farming, 18.1
Human Development Index, 6.1
infant mortality, 8.3
life expectancy (historical), 5.3
motor accident death rates, 8.5
newspaper sales, 11.1
OECD, 9.1, 14.3
overseas aid, 4.1
personnel in r & d, 15.1
postal prices, 11.3
press freedom, 11.1
residential telephone charges, 11.2
standards of living, 6.1
unemployment, 14.3
urbanisation, 5.1
comparisons
abortion rates, 8.3
census undercount, 5.4
communications, 11.2
consumer prices and CPI, 26.1
debt to GDP, 28.3
defence expenditure, 4.4
education, 9.2
electricity prices, 20.2
employment, 14.3
farming, 18.1
Human Development Index, 6.1
infant mortality, 8.3
life expectancy (historical), 5.3
motor accident death rates, 8.5
newspaper sales, 11.1
OECD, 9.1, 14.3
overseas aid, 4.1
personnel in r & d, 15.1
postal prices, 11.3
press freedom, 11.1
residential telephone charges, 11.2
standards of living, 6.1
unemployment, 14.3
urbanisation, 5.1
credit rating agencies, 28.3
defence relationships, 4.4
education (Ministry of Education), 9.3
farming, 18.1
fraud, Serious Fraud Office action against, 24.2
investment position, NZ's, 17.5
money-laundering, inter-departmental group against, 24.2
organisations, participation in, 4.2
relations (Chapter 4), 4.1
trade, 25.4
Internet, 11.4, 28.1
addresses, government departments, 3.3
census results on, 5.1
earthquake information by, 1.2
shopping in NZ, 24.4
Treasury on, 28.1
Interpol, NZ links with, 10.4
introduced plants and animals, 1.4
invalids benefit see benefits
IOSCO (International Organisation of Securities Commissions), 24.2
iron (see also steel making), 20.8
ISDN (Integrated Digital Network), 11.2
islands, outlying, 1.1
ISO (International Organisation for Standardisation), 15.2, 21
ITOs (Industry Training Organisations), 14.3
Forestry, 19.1
IWC (International Whaling Commission), 16.2
iwi locations (map) and developments, 6.4
publications, 9.1
Māori Congress, 6.4
Treaty settlements, 6.4

J

Japan, relations with, 4.1, 25.4
student and youth exchanges with, 9.2
Job Plus, 14.3
job protection (parental leave), 14.5
search allowance, 7.1
Job Search, Student, 14.2
Journal, School, 9.1
judges and judiciary, 10.1
Jurists, International Commission of (ICJ), NZ connection, 10.1
jury service, 10.1
justice
convictions, 10.2
criminal, 10.2
Ministry of, 3.3
sentencing, 10.2
system of, see courts, law
Justices of the Peace, 10.1

K

kai o te moana kaupapa tiakina, nga, 19.3
Kaimanawa horses, 16.3
Kaitiaki Māori, te, (Māori Trustee), 16.1
kakapo recovery plan, 1.4
Kermadec Islands, 1.1
kindergartens, 9.2, 9.4
kiwifruit, exports, 25.2
production, 18.7
Kiwinet (National Library information network), 12.4
kohanga reo, 6.4, 9.2, 9.4
Korea, relations with, 4.1, 25.4
Korowai Aroha Aotearoa, Te, 6.2
kura kaupapa Māori, 9.2, 9.4

L

labelling, environmental, 15.2
laboratory technologists, medical, 8.1
Labour Cost Index (LCI), 14.4
Labour Day, 14.5
Labour, Department of, 3.3, 8.7, 14.1, 14.2
labour force (see also employment, unemployment), 14.1
definition of, 14.1
employment status, 14.1
full-time, 14.1
hours of work, 14.1
Household Labour Force Survey, 14.1
industrial structure, 14.1
market, international organisations, 14.5
occupational structure, 14.1
OECD comparisons, 14.3
part-time, 14.1
participation rates, 14.1
Quarterly Employment Survey, 14.1, 14.4
survey of, 14.1
women in, 14.1
labour market organisations, 14.5
labour relations, (see also unions, work stoppages), 14.5
bargaining arrangements, 14.5
disputes, 10.1
holidays, 14.5
hours of work, 14.5
minimum entitlements and wages, 14.5
personal grievances and disputes, 14.5
public and annual holidays, 14.5
rights and obligations, 14.5
specialist courts and tribunals, 10.1, 14.1
strikes and lockouts, 14.5
lakes, area of, 1.1
lamb, 18.1, 18.2, 18.3
Land Corporation Ltd, 16.1
Information NZ (LINZ), 16.1
Transport Fund, 23.4, 28.2
Transport Safety Authority, 8.5, 23.4
Valuation Tribunal, 16.1
land
agricultural, 15.1, 16.2, 18.1
Land Legislation Manual, 16.1
area, total, 1.1, 16.2
Land Legislation Manual, 16.1
controls on acquisition, 16.1
Land Legislation Manual, 16.1
Crown, 16.1
Land Legislation Manual, 16.1
leasehold, 16.1
Land Legislation Manual, 16.1
local authority rating, 16.1
Land Legislation Manual, 16.1
Māori Trustee, 16.1
Land Legislation Manual, 16.1
Māori, 16.1
Land Legislation Manual, 16.1
Queen's Chain 16.1
recreational, 16.3
registration of ownership, 16.1
rural, sales of, 16.1
surveys of, 16.1
transfers of, 16.1
use of, 16.2, 18.1
valuation of, 16.1
Landcare Research NZ Ltd, 15.1
landlords, 6.1
landmines, 4.4
language, Māori see reo Māori
Latin America and Caribbean countries, relations with, 4.1
latitude and longitude, 1.1
Law Commission, 10.1
laws, 3.2
sources of, 10.1
lay observers, 10.1
Legal Services Board, 10.1
sources of, 10.1
lay observers, 10.1
lead-free petrol, 20.3
Learning Media Limited, 9.1
leasehold land, 16.1
leave
for employees, 14.5
annual, special, parental, 14.5
Legal Services Act 1991, 10.1
Services Board, 10.1
legal aid, 10.1
deposit (of books), 12.4
system, 10.1
tender, 27.2
legislation, 3.2
leisure activities, outdoor, 13.1
industry, 13.1
Liable Parent Contribution Scheme, 28.2
libraries and books, 12.4
libraries
Alexander Turnbull, 12.4
information online, 12.4
Oral History Centre, 12.4
library education, 12.4
information online, 12.4
Oral History Centre, 12.4
library history, 12.4
information online, 12.4
Oral History Centre, 12.4
National Library of NZ, 3.3, 12.4
information online, 12.4
Oral History Centre, 12.4
NZ Library and Information Association, 12.4
public and educational, 12.4
teacher librarians, 9.2
Turnbull Library, 12.4
Library and Information Association, NZ (NZLIA), 12.4
licensing
liquor, 24.1
motor vehicle, 23.4
poll, 3.2
life expectancy, 5.3, 5.5
at birth, 1880-1996, 5.3
1960 to 1992, 6.4
international comparisons, 5.3, 6.2
Māori, 6.4
life insurance, 24.3
lighthouses, 23.1
limit setting, fisheries, 19.3
Limited Service Volunteer scheme (defence), 4.4
Link Centres, 3.3
LINZ (Land Information NZ), 16.1
liquidation, of companies, 24.2
liquor licensing, 24.1
liquor see alcohol
literature, 12.1, 12.4
livestock, 18.1, 18.2
cattle, 18.1, 18.2
deer farming, 18.1, 18.2
distribution of, 18.2
goat farming, 18.1, 18.2
health services for, 18.1
pigs, 18.1, 18.3, 18.6
poultry, 18.6
quarantine of, 18.1
sheep, and sheep farming, 18.1, 18.2, 18.3, 18.4
local authorities (see also local government), maps, 3.4
population of, 5.2
rating and valuation, 16.1, 28.4
roading, 23.4
statistics, 28.4
Local Government Commission, 3.4
local government, 3.4
Auckland Regional Services Trust, 3.4
boundaries, 3.4
community boards, 3.4
elections and membership, 3.4
finance, 28.4
legislation, 3.4
organisation, 3.4
rating, 16.1
regional councils, 3.4
regions, population of, 5.2
remuneration of members, 3.4
reorganisation, 3.4
special purpose local authorities, 3.4
territorial authorities, 3.4
unitary authorities, 3.4
women in, 3.4
lockouts, 14.5
lotteries and lotto, 12.1, 13.1
Lotteries Commission, NZ, 13.1
Lottery Grants Board, NZ, 13.1
lottery profits, allocation, 13.1
Lotto, Instant Kiwi, Daily Keno (gambling), 13.1

M

M3 Financial Institutions, 27.1
magazines, 11.1
mail services, 11.3
major trading partners, 25.4
Malaghan Institute, 8.1
management, fisheries, (Nga kai o te moana kaupapa tiakina), 19.3
Mangai Paho, Te, Māori broadcasting, 11.1
manufacturing industry, 21
assistance to, 21
enterprises, 21
groups, 21
growth issues, 21
quarterly survey of, 21
regional employment in (maps), 21
sectors, 21
statistics, 21
Māori (see also Māori education, Māori health, Māori population, Treaty of Waitangi)
arts board of Creative NZ, Te Waka Toi, 12.1
kokiri centres, 6.4
Te Ohu Kai Moana, 19.3
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
assets, 6.4
kokiri centres, 6.4
Te Ohu Kai Moana, 19.3
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
broadcasting, Te Mangai Paho, 11.1
kokiri centres, 6.4
Te Ohu Kai Moana, 19.3
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
community services, 6.2, 6.4
kokiri centres, 6.4
Te Ohu Kai Moana, 19.3
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
Congress, 6.4
kokiri centres, 6.4
Te Ohu Kai Moana, 19.3
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
Council, New Zealand, 6.4
kokiri centres, 6.4
Te Ohu Kai Moana, 19.3
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
descent, 5.4
kokiri centres, 6.4
Te Ohu Kai Moana, 19.3
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
Development, Ministry of (Te Puni Kōkiri), 3.3, 6.4, 16.1
kokiri centres, 6.4
Te Ohu Kai Moana, 19.3
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
dwellings, 6.1
kokiri centres, 6.4
Te Ohu Kai Moana, 19.3
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
education see Māori education
kokiri centres, 6.4
Te Ohu Kai Moana, 19.3
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
electorates, 3.2
kokiri centres, 6.4
Te Ohu Kai Moana, 19.3
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
employment and training of, 14.3
kokiri centres, 6.4
Te Ohu Kai Moana, 19.3
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
export team, Te Roopu Hinonga Māori, 25.4
Te Ohu Kai Moana, 19.3
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
fisheries, 19.3
Te Ohu Kai Moana, 19.3
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
geographical distribution, 6.4
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
health see Māori health
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
Heritage Council, 12.2
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
housing, 6.1
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
iwi (map), 6.4
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
justice, 16.1
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
kohanga reo, 6.4, 9.2, 9.4
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
kōkiri centres, 6.4
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
kura kaupapa, 6.4, 9.1, 9.2, 9.4
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
Land and Māori Appellate Court, 10.1, 16.1
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
Land Legislation Manual, 16.1
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
land claims process, 6.4
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
land, 16.1
Te kaitiaki Māori (Māori Trustee), 16.1
publications, 9.1
radio, 6.4, 11.1
research, 9.1
Language Commission, 6.4
publications, 9.1
radio, 6.4, 11.1
research, 9.1
language see reo
publications, 9.1
radio, 6.4, 11.1
research, 9.1
Option, 3.2
radio, 6.4, 11.1
research, 9.1
population see Māori population
radio, 6.4, 11.1
research, 9.1
newspapers and magazines, 11.1
radio, 6.4, 11.1
research, 9.1
prison inmates, 10.3
radio, 6.4, 11.1
research, 9.1
reo (language), 6.4, 9.2, 11.1
radio, 6.4, 11.1
research, 9.1
Te Mangai Paho (broadcasting), 11.1
Te Ohu Kai Moana (Treaty of Waitangi Fisheries Commission), 19.3
Te Puni Kōkiri, 3.3, 6.4, 16.1
tourism, 13.2
training and employment assistance, 14.3
tribal (iwi) locations (map) and developments, 6.4
Trustee, 16.1
Whakatohea settlement, 6.4
wardens, 6.4
Women's Welfare League, 6.4
women, 6.4
Māori education, 9.1, 9.2, 9.3, 9.4
early childhood education, 9.2
kohanga reo, 6.4, 9.2, 9.4
kura kaupapa, 6.4, 9.1, 9.2, 9.4
Māori Education Trust, 9.1
research, 9.1
secondary school leavers, 9.2
students in education, 9.4
tertiary education, 9.3, 9.4
unit of Education Review Office (ERO), 9.1
wananga, 9.2, 9.3, 9.4
Māori health, 8.3
children's health, 8.3
infant mortality, 8.3
life expectancy, 5.3, 6.4
Māori Women's Welfare League, 6.4
mental health, 8.3
Māori population
age distribution, 5.4
age and sex/gender of, 5.4, 6.4, 8.3
birth and death rates of, 5.3, 6.4, 8.3
changes, 5.3, 6.4
ex-nuptial births, 5.3
fertility, 5.3, 5.4
geographical distribution, 6.4
households and dwellings, 6.1
infant mortality, 8.3
life expectancy, 5.3, 6.4
mapping, 16.1
marine
accidents, 23.1
parks and reserves, 16.3
pollution, 16.2, 23.1
safety services, 23.1
wildlife, 16.3
marital status, 6.2
de facto relationships, 6.2
Maritime Safety Authority, 23.1
marketing authorities for agricultural products,
apples and pears, 18.7
dairy products, 18.5
kiwifruit, 18.7
meat, 18.3
marriage and marriages, 6.2
marriage, age at, 5.3, 6.2
celebrants, 5.3, 6.2
dissolution, 6.2
legislation, 6.2
rate of, 5.3, 6.2
same sex, 6.2
marriages, registration of, 5.3
same sex, 6.2
Marsden Fund, 15.1
mass media, 11.1
maternal deaths, 8.3
maternity benefits, 8.2
leave, 14.5
MCI (Monetary Conditions Index), 27.1
meat and meat products, 18.3
beef, 18.3
chicken, 18.6
consumption, 18.3
exports, 18.3, 25.2
pigmeats, 18.6
prices, 18.3, 25.2
NZ Meat Producers Board, 18.3
processing, 18.3
sheepmeats, 18.3
veal, 18.3
venison, 18.3
media, 11.1
advertising, 11.1
and culture programme, Asia 2000, 4.1
broadcasting, 11.1
magazines, 11.1
newspapers, 11.1
Press Council, 11.1
press freedom, NZ in international ranking, 11.1
radio, 11.1
television, 11.1
Medical Council, 8.1
Research Council, 8.1
Warning Systems, 8.3
medical insurance, 24.3
laboratory technologists, 8.1
practitioners, 8.1
radiation technologists, 8.1
medicines and drugs, control of, 8.2
Members of Parliament, 3.2
listed, 3.2
salaries and allowances, 3.2
Memorial Trust, Winston Churchill, 4.2
Mental Health Commission, 8.3
Foundation, 8.4
mental health facilities, 8.4
merchandise imports, controlling, 25.3
merchant banks, 27.1
merchant navy qualifications, 23.1
seamen, 4.4
metals, 20.8
gold, 20.8
industry, 20.8
iron, 20.8
meteorology, see climate
MFAT (Ministry of Foreign Affairs and Trade) see Ministry of Foreign Affairs
and the environment, 4.2
Middle East, relations with, 4.1, 25.4
midwives, 8.1
migration
and immigration, 5.3, 6.3, 6.5
external, 5.3
internal, 5.2
military museums, 4.4
military pensions, 7.1
milk and milk products (see also dairy products), 18.5
mineral exploitation, 16.2, 20.8
fuels, imports and supplies, 20.1, 20.3, 20.8
minerals and mineral products (see also mining), 20.8
coal, 20.5
metallic, 20.8
non-metallic, 20.8
resources and production, 20.8
minimum wage, 14.5
mining (see also minerals and mineral products),
and quarrying statistics, 20.8
laws on, 16.2
Ministers of the Crown
list of, 3.2
salaries and allowances of, 3.2
Ministry for the Environment, 3.3, 16.2
Ministry of Agriculture and Forestry (MAF), 3.3, 16.2, 18.1, 18.6
Civil Defence, 8.6
Commerce, 3.3, 11.1, 11.4, 15.2, 16.2, 20.3, 21
Consumer Affairs, 24, 24.1
Cultural Affairs, 3.3, 12.1
Defence, 3.3, 4.4
Education, 3.3, 9.1
Fisheries, 3.3, 16.2, 19.3
Foreign Affairs and Trade (MFAT), overseas posts (map), 3.3, 4.1, 4.2
Forestry, 3.3, 19.1, 19.2
Health, 3.3, 8.1-8.4
Housing, 3.3, 22.2
Justice, 3.3
Māori Development (Te Puni Kokiri), 3.3, 6.4, 16.1
Pacific Island Affairs, 3.3, 6.5
Research, Science and Technology, 3.3, 15.1
Transport, 3.3, 23
Women's Affairs, 3.3, 6.3
Youth Affairs, 3.3, 6.3, 13.1, 14.3
MMP referendum and voting, 3.2
Monetary Conditions Index (MCI), 27.1
monetary policy, 17.6, 27.2
money, 27.2
monopolies, 24.2
Moriori and Rekohu (Chatham Islands), 6.4
mortality (see also deaths and death rates), 5.3
mortgages, 22.2
Housing Corporation, 22.2
interest rates of, 22.2
motor vehicle industry, 21
Motor Vehicles Securities Register, 23.4
motor vehicles, 23.4
inspection, 23.4
insurance, 8.5
registration and licensing, 23.4
motorcycles, registration, 23.4
mountain biking, 13.1
mountaineering and tramping, 13.1
mountains, height of, 1.1
movable public holidays, 14.5
MPs, after 1996 election, 3.2
salaries and allowances, 3.2
travel overseas, 3.2
women, 3.2, 55-6
multilateral affairs (MFAT), 4.1
assistance, 4.1
murder, 8.5, 10.2
Museum of New Zealand Te Papa Tongarewa, 12.2
museums and art galleries, 12.2
military, 4.4
music, 12.1, 12.3

N

NACEW (National Advisory Council on the Employment of Women), 14.1
narcotics, see drugs
National Accounts, NZ System of (NZSNA), 17.2
Advisory Committee on Health and Disability (National Health Committee), 8.1
online information, 12.4
Trustees of, 12.4
Advisory Council on the Employment of Women (NACEW), 14.1
online information, 12.4
Trustees of, 12.4
Archives, 12.2
online information, 12.4
Trustees of, 12.4
Cervical Screening Programme (NCSP), 8.3
online information, 12.4
Trustees of, 12.4
Council of Women (NCW), 6.3
online information, 12.4
Trustees of, 12.4
economy, (history), 17.1
online information, 12.4
Trustees of, 12.4
Drug Intelligence Bureau, 10.4
online information, 12.4
Trustees of, 12.4
Fish and Game Council, 16.3
online information, 12.4
Trustees of, 12.4
Health Committee, 8.1
online information, 12.4
Trustees of, 12.4
Health Index, 8.3
online information, 12.4
Trustees of, 12.4
Institute of Atmosphere and Water Research (NIWA), 15.1
online information, 12.4
Trustees of, 12.4
Library of NZ, 3.3, 12.4
online information, 12.4
Trustees of, 12.4
Minimum Dataset (health), 8.3
Parole Board, 10.3
Provident Fund, 3.3, 24.3
War Memorial, carillon, 3.3
national anthems, 3.5
collection of art and culture, 12.2
disposable income, 17.2
emblems and anthems, 3.5
income and outlay, 17.2
parks (see also forest parks, reserves), and map, 16.3
planning, environmental, 16.2
native plants and animals, 1.4
natural disaster insurance, 8.6
gas, 20.1, 20.4
increase of population, 5.1, 5.3
nature reserves, 16.3
nautical charts for NZ and South Pacific, 4.4
navigational aids, 23.1, 23.2
navy (Royal NZ Navy), 4.4
neighbourhood law offices, 10.1
New Zealand, overseas posts, 4.1, 4.2
newspapers and magazines, 11.1
Niue, migration from, 6.5
relationship with, 4.1
NIWA (National Institute of Atmosphere and Water Research), 15.1
non-profit organisations, Incorporated Societies Act, 24.1
non-resident companies, taxation on, 28.2
North Island population of, 5.2
nuclear science, 15.1
nurses, 8.1
Nursing Council of NZ, 8.1
NZ AIDS Foundation, 8.3
NZ Antarctic Institute, 15.2
NZ Antarctic Programme, 15.2, 16.3
NZ Apple and Pear Marketing Board, 18.7
NZ Army, 4.4
NZ Arts Assembly, 13.1
NZ Australia Closer Economic Relations Trade Agreement (CER), 4.7, 21
NZ Bankers' Association, 27.1
NZ Bibliographic Network (NZBN), 12.4
NZ Cadet Forces, 4.4
NZ Cartoon Archive, 12.4
NZ Children and Young Persons Service (NZCYPS), 7.2
NZ Choral Federation, 12.3
NZ Community Funding Agency, 7.2
NZ Conservation Authority, 16.3
NZ Council for Educational Research (NZCER), 9.1
NZ Council of Social Services, 7.2
NZ Council of Trade Unions, 14.5
NZ Customs Service, 3.3, 23.2, 25.1
NZ Dairy Board, 18.5
NZ Debt Management Office (NZDMO), 28.3
NZ Defence Force, 3.3, 4.4
NZ Drama School, 12.3
NZ Employers' Federation, 14.5
NZ Employment Service, 14.3
NZ Film Archive, 12.2
NZ Film Commission, 12.3
NZ Fire Service, 8.6
NZ Fire Service Commission, 8.6
NZ Fish and Game Council, 16.3
NZ Fishing Industry Board (now Seafood Industry Council), 19.4
NZ Forestry Corporation Ltd (until 1995), 19.1
NZ Government stock and securities, 27.1, 27.2, 28.3, 28.4
NZ Government, the, 3.2
NZ Health Information Service, 8.3
NZ Historic Places Trust, 12.2, 16.3
NZ Household Economic Survey (HES), 6.1
NZ Income Support Service, 7.1, 22.2, 28.2
NZ Institute of Economic Research (NZIER), 15.2
NZ Institute of International Affairs, 4.1
NZ Kiwifruit Marketing Board, 18.7
NZ Library and Information Association (NZLIA), 12.4
NZ Lotteries Commission, 13.1
NZ Lottery Grants Board, 13.1
NZ Māori Council, 6.4
NZ Meat Producers Board, 18.3
NZ Olympic Committee (NZOC), 13.1
NZ On Air (Broadcasting Commission), 11.1
NZ Patent Office, 15.2
NZ Police, 3.3, 10.4, 23.4
overseas officers and Interpol, 10.4
NZ Pork Industry Board, 18.6
NZ Post Ltd, 11.3
NZ Press Council, 11.2
NZ Qualifications Authority, 9.1, 9.3
NZ Railways see Tranz Rail, 23.3
NZ School of Dance, 12.3
NZ Sign Language (NZSL), 6.3, 9.3
NZ Sports Drug Agency, 13.1
NZ Sports Foundation, 13.1
NZ Standard Time, 1.5
NZ Stock Exchange, 24.2
NZ superannuation, 7.1, 28.2
portability, 7.1
NZ Symphony Orchestra, 12.3
NZ System of National Accounts (NZSNA), 17.2
NZ territories, 4.3
NZ Tourism Board, 13.1
NZ Trade Development Board (Tradenz), (map), 4.1, 13.2
NZ Water Safety Council, 8.5
NZ Workers' Educational Association (WEA), 9.3
NZCER (New Zealand Council of Educational Research), 9.1
NZIER (NZ Institute of Economic Research), 15.2
NZLIA (NZ Library and Information Association), 12.4
NZODA (NZ Official Development Assistance), 4.1
NZQA (NZ Qualifications Authority), 9.1, 9.3
NZSL (New Zealand Sign Language), 6.3, 9.3
NZSNA (New Zealand System of National Accounts), 17.2

O

obituaries 1997 (individual names not indexed), 2.1
Observatory, Carter, 15.1
occupational disease notifications, 8.7
overuse syndrome (OOS), 8.7
safety and health, 8.7
Service (OSH), Department of Labour, 8.7
structure of labour force, 14.1
therapists, 8.2
occupations, 14.1, 17.6
Oceanic Control System (OCS), for aircraft navigation, 23.2
OECD (Organisation for Economic Co-operation and Development), 4.2, 9.3, 21
agricultural directorate, NZ involvement in, 18.1
education comparisons, 9.1
comparisons, 9.1, 14.4
trade and environment, 16.2
labour and unemployment information, 14.5
labour force comparisons, 14.4
offences, criminal, 10.2
Office of Film and Literature Classification, 10.3, 12.1
Office of Treaty Settlements, 3.3, 6.4
Official Development Assistance (ODA), 4.1
Official Information Act, 3.3
Official Information, Directory of, 3.3
visitors from overseas, 3.3
oil and gas reserves, 20.3, 20.4
oil, 20.1, 20.3, 20.5
imported, 20.1
older people, health services for, 8.3
Olympic Games, NZ at, 13.1
Ombudsman
Banking, 27.1
Insurance and Savings, 24.3
Ombudsmen, 3.3
complaints to, 3.3
ONZ (order of NZ), 3.1
OOS (occupational overuse syndrome), 8.7
Open Polytechnic of New Zealand, The (TOPNZ), 9.3
open space protection, Queen Elizabeth II National Trust, 16.1
operating balance (government), 17.6, 28.1
optometrists and opticians, 8.1
Oral History Centre, National Library, 12.4
Oranga Poutama, He (healthy lifestyles), 13.1
Order of Merit, NZ, 3.1
Order of NZ (ONZ), 3.1
overseas honorary member, 3.1
Organisation for Economic Co-operation and Development see OECD
orphans benefit see benefits
OSH (Occupational Safety & Health) Service, 8.7
outdoor leisure, 13.1
outlying islands, 1.1
overseas, 4.1
aid, 4.1
banks, 27.1
land, 16.1
radio and TV, 11.1
railways, 23.3
telecommunications, 11.2
balance of merchandise trade, 25.1
exports, 25.2
global overview, 25.4
imports, 25.3
indexes, 25.6
major trading partners, 25.4
overseas cargo, 25.5
overseas trade indexes, 25.6
applications for patents, trade marks and designs, 15.2
banks, 27.1
land, 16.1
radio and TV, 11.1
railways, 23.3
telecommunications, 11.2
balance of merchandise trade, 25.1
exports, 25.2
global overview, 25.4
imports, 25.3
indexes, 25.6
major trading partners, 25.4
overseas cargo, 25.5
overseas trade indexes, 25.6
assistance, 4.1
banks, 27.1
land, 16.1
radio and TV, 11.1
railways, 23.3
telecommunications, 11.2
balance of merchandise trade, 25.1
exports, 25.2
global overview, 25.4
imports, 25.3
indexes, 25.6
major trading partners, 25.4
overseas cargo, 25.5
overseas trade indexes, 25.6
balance of payments, 17.3
banks, 27.1
land, 16.1
radio and TV, 11.1
railways, 23.3
telecommunications, 11.2
balance of merchandise trade, 25.1
exports, 25.2
global overview, 25.4
imports, 25.3
indexes, 25.6
major trading partners, 25.4
overseas cargo, 25.5
overseas trade indexes, 25.6
cargo loaded and unloaded, 25.5
banks, 27.1
land, 16.1
radio and TV, 11.1
railways, 23.3
telecommunications, 11.2
balance of merchandise trade, 25.1
exports, 25.2
global overview, 25.4
imports, 25.3
indexes, 25.6
major trading partners, 25.4
overseas cargo, 25.5
overseas trade indexes, 25.6
companies, 24.2
banks, 27.1
land, 16.1
radio and TV, 11.1
railways, 23.3
telecommunications, 11.2
balance of merchandise trade, 25.1
exports, 25.2
global overview, 25.4
imports, 25.3
indexes, 25.6
major trading partners, 25.4
overseas cargo, 25.5
overseas trade indexes, 25.6
country of birth, 6.3
banks, 27.1
land, 16.1
radio and TV, 11.1
railways, 23.3
telecommunications, 11.2
balance of merchandise trade, 25.1
exports, 25.2
global overview, 25.4
imports, 25.3
indexes, 25.6
major trading partners, 25.4
overseas cargo, 25.5
overseas trade indexes, 25.6
debt (outstanding liabilities of NZ to the rest of the world), 17.4, 28.3
banks, 27.1
land, 16.1
radio and TV, 11.1
railways, 23.3
telecommunications, 11.2
balance of merchandise trade, 25.1
exports, 25.2
global overview, 25.4
imports, 25.3
indexes, 25.6
major trading partners, 25.4
overseas cargo, 25.5
overseas trade indexes, 25.6
emergency and disaster relief, 4.1
banks, 27.1
land, 16.1
radio and TV, 11.1
railways, 23.3
telecommunications, 11.2
balance of merchandise trade, 25.1
exports, 25.2
global overview, 25.4
imports, 25.3
indexes, 25.6
major trading partners, 25.4
overseas cargo, 25.5
overseas trade indexes, 25.6
exchange transactions, 27.2
banks, 27.1
land, 16.1
radio and TV, 11.1
railways, 23.3
telecommunications, 11.2
balance of merchandise trade, 25.1
exports, 25.2
global overview, 25.4
imports, 25.3
indexes, 25.6
major trading partners, 25.4
overseas cargo, 25.5
overseas trade indexes, 25.6
honorary member of ONZ, 3.1
banks, 27.1
land, 16.1
radio and TV, 11.1
railways, 23.3
telecommunications, 11.2
balance of merchandise trade, 25.1
exports, 25.2
global overview, 25.4
imports, 25.3
indexes, 25.6
major trading partners, 25.4
overseas cargo, 25.5
overseas trade indexes, 25.6
operators in coastal shipping, 23.1
banks, 27.1
land, 16.1
radio and TV, 11.1
railways, 23.3
telecommunications, 11.2
balance of merchandise trade, 25.1
exports, 25.2
global overview, 25.4
imports, 25.3
indexes, 25.6
major trading partners, 25.4
overseas cargo, 25.5
overseas trade indexes, 25.6
operators of airlines, 23.3
banks, 27.1
land, 16.1
radio and TV, 11.1
railways, 23.3
telecommunications, 11.2
balance of merchandise trade, 25.1
exports, 25.2
global overview, 25.4
imports, 25.3
indexes, 25.6
major trading partners, 25.4
overseas cargo, 25.5
overseas trade indexes, 25.6
ownership of,
banks, 27.1
land, 16.1
radio and TV, 11.1
railways, 23.3
telecommunications, 11.2
balance of merchandise trade, 25.1
exports, 25.2
global overview, 25.4
imports, 25.3
indexes, 25.6
major trading partners, 25.4
overseas cargo, 25.5
overseas trade indexes, 25.6
postal services, NZ Post, 11.3
balance of merchandise trade, 25.1
exports, 25.2
global overview, 25.4
imports, 25.3
indexes, 25.6
major trading partners, 25.4
overseas cargo, 25.5
overseas trade indexes, 25.6
representation (map), 4.1
balance of merchandise trade, 25.1
exports, 25.2
global overview, 25.4
imports, 25.3
indexes, 25.6
major trading partners, 25.4
overseas cargo, 25.5
overseas trade indexes, 25.6
shipping services, 23.1
balance of merchandise trade, 25.1
exports, 25.2
global overview, 25.4
imports, 25.3
indexes, 25.6
major trading partners, 25.4
overseas cargo, 25.5
overseas trade indexes, 25.6
students, 9.2
balance of merchandise trade, 25.1
exports, 25.2
global overview, 25.4
imports, 25.3
indexes, 25.6
major trading partners, 25.4
overseas cargo, 25.5
overseas trade indexes, 25.6
trade (Chapter 25) (see also exports, imports, shipping), 25.1-25.6
balance of merchandise trade, 25.1
exports, 25.2
global overview, 25.4
imports, 25.3
indexes, 25.6
major trading partners, 25.4
overseas cargo, 25.5
overseas trade indexes, 25.6
visitors, 13.1, 23.2
ozone depletion in 1997, 1.3
depletion, Montreal Protocol, 16.3

P

PACDAC (Public Advisory Committee on Disarmament and Arms Control), 4.1
Pacific countries, relations with, 4.1
Pacific Development and Conservation Trust, 4.3
Pacific Forum Line, 4.1
Pacific Island Affairs, Ministry of, 3.3, 6.5
Pacific Island
Anau Ako Pasifika project, 9.2, 9.3
publishing in, 9.4
age distribution of, 5.4, 6.5
employment and training, 14.3
geographical distribution, 6.5
households & dwellings, 6.1
Western Samoan immigration quota, 6.3
arts development (Creative NZ), 12.1
publishing in, 9.4
age distribution of, 5.4, 6.5
employment and training, 14.3
geographical distribution, 6.5
households & dwellings, 6.1
Western Samoan immigration quota, 6.3
Business Development Trust, 6.5
publishing in, 9.4
age distribution of, 5.4, 6.5
employment and training, 14.3
geographical distribution, 6.5
households & dwellings, 6.1
Western Samoan immigration quota, 6.3
dwellings, 6.1
publishing in, 9.4
age distribution of, 5.4, 6.5
employment and training, 14.3
geographical distribution, 6.5
households & dwellings, 6.1
Western Samoan immigration quota, 6.3
education, 9.3, 9.4
publishing in, 9.4
age distribution of, 5.4, 6.5
employment and training, 14.3
geographical distribution, 6.5
households & dwellings, 6.1
Western Samoan immigration quota, 6.3
immigration, 6.5
publishing in, 9.4
age distribution of, 5.4, 6.5
employment and training, 14.3
geographical distribution, 6.5
households & dwellings, 6.1
Western Samoan immigration quota, 6.3
Industrial Development Scheme (PIIDS), 4.1
publishing in, 9.4
age distribution of, 5.4, 6.5
employment and training, 14.3
geographical distribution, 6.5
households & dwellings, 6.1
Western Samoan immigration quota, 6.3
language groups, 9.2
publishing in, 9.4
age distribution of, 5.4, 6.5
employment and training, 14.3
geographical distribution, 6.5
households & dwellings, 6.1
Western Samoan immigration quota, 6.3
Polynesian Education Foundation, (PIPEF), 9.4
age distribution of, 5.4, 6.5
employment and training, 14.3
geographical distribution, 6.5
households & dwellings, 6.1
Western Samoan immigration quota, 6.3
population, 5.4, 6.5
age distribution of, 5.4, 6.5
employment and training, 14.3
geographical distribution, 6.5
households & dwellings, 6.1
Western Samoan immigration quota, 6.3
secondary school leavers, 9.2
packaging and the environment, 21
PADET (Peace and Disarmament Trust), 4.1
PAFT (Parents As First Teachers), 9.2
paper, imports, 25.3
production, 19.2
research, 15.1
parental leave, 14.5
Parents as First Teachers, 9.2
parks (see also reserves)
forest, 16.3
marine, 16.3
national, 16.3
Parliament see also elections, 3.1, 3.2
Parliament
elections to, 3.2
House of Representatives, 3.2
inter-Parliamentary relations, 3.2
legislative procedures, 3.2
members of, 3.2
MMP in, 3.2
opposition, 3.2
Parliamentary Service, 3.2
political parties in, 3.2
proceedings, 3.2
salaries and allowances, 3.2
select committees, 3.2
sessions of, 3.2
Speaker, 3.2
Standing Orders, 3.2
women in, 3.2
Parliamentary Commissioner for the Environment, 3.3
complaints to, 3.3
Parliamentary Counsel Office, 3.2
Service, 3.2
Parliamentary delegations visit NZ, 3.2
Library, 12.4
scrutiny of Budget, 28.1
Select Committees exchange with Australia, 3.2
Service, 3.2
parole (sentence), 10.3
part-time labour force and work, 14.1
parties, political, 3.2
partnerships, business, 24.2
party expenditure (1996 election), 3.2
passports, and visas for entry, 6.3
Patent Co-operation Treaty (PCT) for international patenting, 15.2
patents and trade marks, 15.2
paternity leave, 14.5
patients, hospital, 8.4
PAYE (pay as you earn) income tax, 28.2
peacekeeping, commitments overseas map, 4.2, 4.4
PEN (Society of Authors), 12.4
penal institutions see prisons, 10.3
pensions, benefits and, (see also benefits & pensions, superannuation), 7.1
performing arts, 12.3
perinatal mortality, 8.3
periodic detention (sentence), 10.3
petrol, lead-free, 20.3
petroleum
consumption, 20.3
imports and refining, 20.3, 25.3
processing and distribution, 20.3
prospecting, 20.3
PGSF (Public Good Science Fund) 15.1
PHARMAC, 8.2
condoms, 8.3
pharmaceutical benefits, 8.2
pharmacists, 8.1
physical activity, 8.3, 13.1
physiotherapists, 8.1
pigs, 18.1, 18.3, 18.6
farming Code of Practice, 18.6
Pinus radiata, 19.1, 19.2
pipfruit, 18.7
Planning Tribunal (former), 10.1
planning
authorisations for building, 22.3
district, 16.2
environmental, 16.2
national, 16.2
regional, 16.2
resource consents, 16.2
plant variety, biodiversity, 16.3
rights, 18.7
planted production forests, 19.1, 19.2
plants, see vegetation and wildlife
plate tectonics, 1.2
Platform for Action, Beijing, implementation of, 6.3
Playcentres, 9.2
playgroups and childcare centres, 9.2
Plunket Society, 8.3
podiatrists, 8.1
poisoning, deaths from, 8.5
Police Complaints Authority, 10.4
Police, NZ, 3.3, 10.4
Police Museum, 10.4
police
armed offenders squads, 10.4
dogs, 10.4
Infringement Bureau, 10.4, 23.4
numbers, 10.4
operations, 10.4
overseas officers and Interpol, 10.4
Youth Aid, 10.4
political parties, 3.2
votes for, 3.2
pollution
air, 16.2
water, 16.2, 23.1
Polynesians see Pacific Island population
Polytechnic, Open, 9.3
polytechnics, 9.1, 9.2, 9.3
population (see also Census of Population and Dwellings), 5.1-5.5
age at marriage, 6.2
age distribution, 5.4
age of, 5.4
censuses 1858-1996, 5.1
change, 5.3
cities, 5.2
composition of, 5.4
country of birth, 6.3
ethnic groups in, 5.4, 5.5
ethnicity of, 6.3
future, 5.5
fertility of, 5.3, 5.5
geographical distribution, 5.2
growth, 5.1, 5.3
life expectancy, 5.3
Māori, see Māori population
marital status, 6.2
migration changes, 5.3
natural increase & fertility, 5.3
North and South Islands, 5.2
NZers in Australia, 5.3
local government areas, 5.2
Pacific Island age distribution, 6.5
Pacific Island geographical distribution, 6.5
projections and future issues, 5.5
regional councils, 5.2
religious affiliation, 6.3
see also Māori population, Pacific Island population sex/gender of, 5.4
territorial authorities, 5.2
urban areas, 5.2
urban-rural & drift, 5.2
ports, 23.1, 25.5
postage stamps, 1997 issues, 11.3
health stamps, 8.3
postal services, 11.3
cost, speed, volumes, 11.3
Post Enumeration Survey of 1996 census, 5.4
poultry and eggs, 18.6
PPI (Producers Price Index), 26.2
PPPs, 17.1
pre-school education see education, early childhood
kohanga reo, 9.2, 9.4
Premier House, Wellington, 3.3
Premiers and Prime Ministers, 3.2
Press Council, 11.1
press freedom, NZ in international ranking 1997, 11.1
Prevailing Weekly Wage Rates Index (discontinued), 14.4
preventative detention (sentence), 10.3
price indexes
Capital Goods Price Index, 26.3
Consumers Price Index, 26.1
Export Prices Index, 25.6
Farm Expenses Price Index, 18.1
House Price Index, 22.1
Import Prices Index, 25.6
Producers Price Index, 26.2
Real Wage Rate Index, 14.4
Terms of Trade Index, 25.6
prices
exports and imports, 25.6
housing, 22.1
international comparison, CPI, 26.1
retail, 26.1
shopping, 26.1
transport, 26.1
primary schools, 9.2
Prime Minister and Cabinet, Department of the, 3.3
Prime Minister, 3.2
salary and allowances, 3.2
Prime Ministers and Premiers (1856-1997), 3.2
prisons and prison inmates, 10.3
age and ethnicity, 10.3
classification and treatment, 10.3
sex/gender, 10.3
classification and treatment, 10.3
major offences, 10.3
classification and treatment, 10.3
number, 10.3
classification and treatment, 10.3
offending history, 10.3
classification and treatment, 10.3
parole system, 10.3
classification and treatment, 10.3
sentence length, 10.3
classification and treatment, 10.3
institutions, 10.3
traffic offenders, 10.2
Prisons Service, Public, 10.3
Privacy Act 1993, 3.3
Privacy Commissioner, 3.3
complaints to, 3.3
privacy of information, 3.3
private schools, 9.2
Privy Council, Judicial Committee of the, 10.1
probation (supervision), 10.3
proceeds of crime, 10.3
Producers Price Index (PPI), 26.2
calculating an index, 26.2
Protected Natural Areas Programme, 16.3
Provident Fund, National, 3.3
provinces, 3.4
psychiatric hospitals, 8.4
patients and diagnoses, 8.4
Psychological Service (Department of Corrections), 10.3
psychologists, 8.1
Public Good Science Fund (PGSF), 15.1
Prisons Service (Department of Corrections), 10.3
Trust Office, The, 3.3
public accounts, 28.1
public broadcasting fee, 11.1
public debt, 28.3
maturity of, 28.3
per capita, 28.3
securities on issue, 27.2, 28.3
transactions, 28.3
public health, 8.3
public holidays, 14.5
public lands (see also forest parks, reserves)
Crown land, 16.1
national parks, 16.3
Queen Elizabeth II National Trust, 16.1
radio, 11.1
walkways, 13.1
public service (see also government departments, state sector)
gender ratio, 3.3
senior staff remuneration, 3.3
staff employed, 3.3
publishing
books, 12.4
in Māori, 9.1
in Pacific Islands languages, 9.4
local, 12.4
newspapers and magazines, 11.1
pulp and paper, imports, 25.3
production, 19.2
research, 15.1
Puni Kōkiri, Te, 3.3, 6.4, 16.1

Q

Qualifications Authority, NZ, 9.1, 9.3
quarantine, 18.1, 19.2
quarries and quarrying, see mining
Quarterly Economic Survey of Manufacturing, 21
Employment Survey, 14.1, 14.4
Survey of Retail Trade, 24.4
Queen's Chain, 16.1
Queen's messages to centenarians, 3.3
Queen Elizabeth II National Trust, 16.1
open space protection, 16.1
Quest Database (careers), 14.3
quota management, fish, 19.3

R

Race Relations Conciliator, 6.3
race relations in 1997, 6.3
complaints, 6.3
racing, betting, 13.1
horse and greyhound, 13.1
taxation, 28.2
radiation
protection, 8.3
technologists, medical, 8.2
radio, 11.1
Christian, 11.1
frequency allocation, 11.
private broadcasters, 11.1
Radio Broadcasters Association (RBA), 11.1
Radio Network, 11.1
Radio New Zealand, 11.1
Sound Archives, 11.1
radiocommunications, 11.1
radiographers, 8.2
railways, 23.3
construction and engineering, 23.3
environment and safety, 23.3
freight, 23.3
overseas ownership of, 23.3
passenger services, 23.3
technology, 23.3
Tranz Rail, 23.3
rainfall 1997, 1.3
records, 1.3
Raoul Island, 1.1
rapuara, The Careers Service, 9.1, 14.3
rates, local authority, 28.4
real wage rates, 14.4
REAPs (Rural Education Activities Programme), 9.2
receivership for companies, 24.2
Recording Industry Association of New Zealand (RIANZ), 12.3
recreation and sport, 13.1
Hillary Commission for Sport, Fitness and Leisure, 13.1
participation in, 13.1
recreation reserves, 16.3
referendum, Clerk of Writs, 3.3
first postal, 3.3
reform,
economic, in NZ, 17.1
electoral, MMP, 3.2
of health sector, 8.1
of national economy, 17.1
of State sector, 3.3
Refuge, Women's, 7.2
refugees, 5.4, 6.3
regional affairs (MFAT), 4.1
regional councils, 3.4
Māori population, 6.4
migration between, 5.2
Pacific Island population, 6.5
population of, 5.2
Regional Fish and Game Councils, 16.3
regional health authorities (RHAs), 8.1, 8.2
regional planning, environmental, 16.2
regional television, 11.1
registration of, banks, 27.1
ex-overseas cars, 23.4
motor vehicles, 23.4
motorcycles, 23.4
taxis, trucks, 23.4
tractors, 23.4
rehabilitation, after accidents, 8.5
Relationship Services, 6.2
religious affiliation of population, 6.3
renewable energy, 20.6
rental housing, 22.2
reo Māori, te
Māori Language Commission, 6.4
publications in, 9.1
speakers of, 6.4
reparation for crime, 10.2
Representation Commission, 3.2
reproduction rates, 5.3, 5.4, 5.5
research associations, 15.1
research
agricultural, 15.1
Antarctic, 4.3, 15.2
arts, 12.1
building, 22.3
dental, 8.3
economic, 15.1
educational, 9.1
energy, 20.1
environmental, 15.1
expenditure, 15.1
fisheries, 15.1, 19.3, 19.4
forestry, 15.1
geological and nuclear, 15.1
health, 8.1
horticultural and food, 15.1
industrial, 15.1
medical, 8.1
personnel, international comparison, 15.1
scientific, 15.1
water and atmospheric, 15.1
wool, 18.4
Research, Science and Technology, Foundation for (FORST), 15.1
Ministry of (MoRST), 3.3, 15.1
Reserve Bank of New Zealand, 27.1
assets and liabilities, 27.1
reserves
land, 16.3
marine, 16.3
Residential Tenancies Tribunal, 10.1
Residual Health Management Unit, 8.1, 28.1
resource conservation, see conservation of natural resources
resource management, and Resource Management Act, 16.2, 20.8
restaurants and hotels, 24.1, 24.4
restrictive trade practices, 24.2
retail prices, 26.1
retail trade and services, 24.4
credit sales, 24.4
monthly survey, 24.4
on-line grocery shopping, 24.4
shop trading hours, 24.1
statistics, 24.4
Retirement Commissioner, 7.1
retirement, NZ superannuation, 7.1
transitional benefit see benefits
RHAs see regional health enterprises
Rights of the Child, UN Convention on the, 6.3
Rio Declaration, UNCED, 16.2
rivers (see also hydro-electric power), 1.1, 16.2
control of, 16.2
length of, 1.1
Road Safety Trust, 23.4
roads, 23.4
accidents, 8.5
expenditure on, 23.4
maintenance, 23.4
safety, 8.3, 8.5, 23.4
speed limits, 23.4
taxes for, 28.2
user charges, 23.4
Transit New Zealand, 23.4
robots in NZ, 21
rock types, 1.2
Roopu Hinonga Māori, Te (Māori export team), 25.4
Roopu Wahine Māori Toko I Te Ora, Te, (Māori Women's Welfare League), 6.4
Ross Dependency, 1.1, 4.2, 4.3
Royal Commissions, 3.2
Forest and Bird Protection Society, 16.2
Fellows of, 15.1
1997 awards, 15.1
New Zealand Navy (RNZN), 4.4
Fellows of, 15.1
1997 awards, 15.1
NZ Air Force (RNZAF), 4.4
Fellows of, 15.1
1997 awards, 15.1
NZ Ballet, 12.3
Fellows of, 15.1
1997 awards, 15.1
Society of NZ, 15.1
Fellows of, 15.1
1997 awards, 15.1
Ruapehu eruptions 1995-1997, 1.2, 1.3
rugby
injuries, prevention of, 13.1
rural education activities programmes (REAPs), 9.2
rural population, 5.2
Russia, relations with, 4.1, 25.4

S

safety, 23.4
fire, 8.6
marine, 23.1
occupational, 8.1
road, 8.3, 8.5, 23.4
water, 8.5
salaries, see wages
same sex marriages, 6.2
sanctuary, whale, 16.2
satellite links
telephone 11.2
scenic reserves, 16.3
School Certificate, 9.2
School Dental Service, 8.3
School Journal, The, 9.1
schools (see also education, students, teachers and teaching)
boarding, 9.1, 9.2
boards of trustees, 9.1
compulsory schooling, 9.2
curriculum, 9.2
funding, 9.1
home-based schooling, 9.2
in health camps, 8.3
independent, 9.2
integrated, 9.2
kura kaupapa, 9.2
leaver qualifications, 9.2
library service, 12.4
primary, 9.2
private, 9.2
property management, 9.1
secondary, 9.2
State, 9.2
student numbers, 9.2
teacher-pupil ratios, 9.2
terms and 4-year term, 9.2
The Correspondence School, 9.2, 9.3
science and scientific services (see also research), 15.1
awards, 15.1
Antarctic, 15.2
Carter Observatory, 15.1
funding, 15.1
policy, 15.1
promotion, 15.1
reserves, 16.3
seafood exports, 19.4, 25.2
imports, 19.4
trade, 19.4
seaports, 23.1, 25.5
search and rescue (SAR), 4.4
police-controlled, 10.4
seatbelts in vehicles, 23.4
secondary schools, 9.2
Securities Commission, 24.2
securities, government, 27.2
Security Intelligence Service (SIS), 4.5
seismic networks, 1.2
seismicity, 1.2
select committees, 45th Parliament, 3.2
senior citizens, health services, 8.3
unit and Minister, 7.2
sentencing
community-based, 10.3
for non-traffic offences, 10.2
preventive detention, 10.3
traffic offences, 10.2
Serious Fraud Office, 3.3, 24.2
international fraud, 24.2
sex/gender
college of education students, 9.3
hospital inpatients discharges, 8.4
of prison inmates, 10.3
polytech students, 9.3
population censuses 1858-1996, 5.4
secondary school leavers, 9.2
university enrolments and degrees awarded, 9.3
university staff, 9.3
university students, 9.3
share market, 24.2
price index, 24.2
sheep, and sheep farming, 18.1, 18.2, 18.3, 18.4
sheepmeats, 18.3
shipping (see also cargo, ports) 23.1
bulk, 23.1
coastal, 23.1, 25.5
ferries, 23.1, 23.3
fishing vessels, 19.3
inter-island, 23.1
overseas, 23.1
register of, 23.1
services to, 23.1
shipwrecks, 23.1
shooting and hunting, 13.1
shop trading hours, 24.1
sickness benefit see benefits
sign language, NZ, 6.3
SIS (Security Intelligence Service), 4.5
Sixth Form Certificate, 9.2
ski competitions, international, in NZ, 13.1
skiing, 13.1
Skill Enhancement, 14.3
New Zealand, 9.3, 14.3
Pathways, 14.3
SKY television, 11.1
Small Business Tax Information Service, 28.2
Smokefree campaigns, 8.3
smoking, tobacco, 8.3
snowfalls in 1997, 1.3
Social Policy Agency, Department of Social Welfare, 7.2
Social Welfare, Department of, 3.3, 7.1
social security, overseas reciprocal agreements, 7.1
social services, 7.2
Citizens Advice Bureaux (CAB), 7.2
social welfare, 7.1
benefits see benefits and pensions
child support, 7.1, 28.2
expenditure, 7.1
income support, 7.1
supplementary payments, 7.1
Society of Authors (PEN), 12.4
SOI see Southern Oscillation Index
soil conservation, 16.2
types, 1.2
Solicitor-General, 10.1
sound archives, Radio New Zealand, 11.1
South Island, population of, 5.2
South Pacific
Commission, 4.1
countries, relations with, 4.1, 4.3, 25.4
Environment Programme (SPREP), 4.1, 4.2, 16.2
Forum, 4.1
nautical charts, 4.4
Regional Trade and Economic Co-operation Agreement (SPARTECA), 4.1
Southern Ocean Whale Sanctuary, 16.2
Southern Oscillation and Southern Oscillation Index (SOI), and El Niño 1997, 1.3
sovereigns of NZ, 3.1
SPARTECA (South Pacific Regional Trade and Economic Co-operation Agreement), 4.1
Speaker of the House of Representatives, 3.2
Specialist Education Services, 9.1
Special Tactics Group (police), 10.4
special education, 9.1, 9.2
needs grant, 7.1
purpose local authorities, 3.4
species, endangered, 1.4
native and introduced, 1.4
speed limits, 23.4
Sport, Fitness and Leisure, Hillary Commission for, 13.1
sport, 13.1
1997 highlights, 13.1
Olympic & Commonwealth Games Association, 13.1
brief history, NZ in, 13.1
ACC claims for injuries, 13.1
Olympic & Commonwealth Games Association, 13.1
brief history, NZ in, 13.1
betting, 13.1
Olympic & Commonwealth Games Association, 13.1
brief history, NZ in, 13.1
development, 13.1
Olympic & Commonwealth Games Association, 13.1
brief history, NZ in, 13.1
drug testing, 13.2
Olympic & Commonwealth Games Association, 13.1
brief history, NZ in, 13.1
fitness & leisure, funding for, 13.1
Olympic & Commonwealth Games Association, 13.1
brief history, NZ in, 13.1
funding for, 13.1
Olympic & Commonwealth Games Association, 13.1
brief history, NZ in, 13.1
involvement overseas, 13.1
Olympic & Commonwealth Games Association, 13.1
brief history, NZ in, 13.1
NZ Olympic Committee Inc. (NZOC) formerly NZ
Olympic & Commonwealth Games Association, 13.1
brief history, NZ in, 13.1
NZ Olympic Golds, 13.1
brief history, NZ in, 13.1
NZ Sports Foundation, 13.1
brief history, NZ in, 13.1
Olympic Games, 13.1
brief history, NZ in, 13.1
participation in, 13.1
preventing rugby injuries, 13.1
top 10 (men & women), 13.1
SPREP (South Pacific Regional Environment Programme), 4.1, 4.2, 16.2
stamp duty, 28.2
stamps, postage, 8.3, 11.3
standard of living (international indicators), 6.1
Standards Council, 15.2
New Zealand, 15.2
Standing Orders of the House of Representatives, 3.2
STAR (Secondary Tertiary Alignment Resource), 14.3
state forests, forest parks, 16.3
plantation forests, 19.1
State of New Zealand's environment, 16.1
State sector (see also government departments, State-owned enterprises, central government finance), 3.3
Crown Company Monitoring Advisory Unit (CCMAU), 3.3, 8.1, 15.1
reform of, 3.3
staff remuneration, 3.3
State Services Commissioner, 3.3
State-owned enterprises, 3.3, 28.1, 28.3
sales of, 28.3
transfer of land to, 16.1
Statistics New Zealand, 3.3
Statutes, 3.1, 3.2, 10.1
Stewart Island, 1.1
stillbirths see perinatal mortality
Stock Exchange, 24.2
market surveillance panel, 24.2
stocks, increase in, 17.2
storms, cyclones, 1.3
strikes, 14.5
student exchange with Japan, 9.2
Student Job Search, 14.2
student loans, 9.3, 28.2
students,
colleges of education, 9.2
Māori, 9.1, 9.2, 9.4
numbers, 9.2, 9.4
overseas, 9.2
part-time, 9.2
primary school, 9.2
support for, 9.1, 9.3
technical, 9.3
university, 9.3
Study Right, 9.1
suburban amenity values, preservation of, 3.3
sudden infant death syndrome (SIDS), 8.3
sulphur, 20.8
sunshine 1997 see also weather, 1.3
records, 1.3
Superannuation Fund, Government, 3.3
superannuation, 24.3
Government Superannuation Fund, 3.3, 24.3
National Provident Fund, 3.3, 24.3
New Zealand, 7.1
NZ superannuation surcharge, 28.2
record, 7.1
Superannuitants Price Index (SPI), 26.1
supervision (sentence), 10.3
surcharge on NZ superannuation, 28.2
Survey and Land Information, Department of, see Land Information NZ, 3.3, 16.1
surveying
hydrographic, 4.4
infrastructure, 16.1
land, 16.1
Survey Board of New Zealand, 16.1
sustainable development, 4.2
Symphony Orchestra, NZ, 12.3

T

TAB (Totalisator Agency Board), 13.1
tariff (customs), 25.1
Taskforce Green, 14.3
Tasman, crossing the, 13.2
Taxation Review Authorities, 28.2
taxes and taxation (see also customs), 28.2
child support, 28.2
company tax, 28.2
deductions, 28.2
double, agreements on, 28.2
excise duties, 25.1, 28.2
Family Assistance, 28.2
Fringe Benefit Tax, 28.2
goods and services (GST), 25.1, 28.2
on interest and dividends, 28.2
on non-resident companies, 28.2
on property, 28.2
per capita, 28.2
personal income tax, 28.2
racing taxation, 28.2
retirement tax and superannuation surcharge, 28.2
revenue from, 28.2
review authorities, 28.2
roads taxation, 28.2
stamp duty, 28.2
student loans, 28.2
taxis, trucks, 23.4
Te Hakituatahi o Aotearoa, ii, 3.5
Te Korowai Aroha, 6.2
Te Kura Toi Whakaari o Aotearoa, 12.3
Te Mangai Paho (Māori Broadcasting Funding Agency), 11.1
Te Papa (Museum of New Zealand), 12.2
Te Puni Kōkiri, 6.4
Te Reo Māori, 6.4
teacher exchanges, 9.3
Teacher Registration Board, 9.1
teachers and teaching, continuing education, 9.3
registration of, 9.1
training and trainees, 9.3
teachers colleges see colleges of education
TEC (Trade and Economic Co-operation Agreement) with Canada, 4.1
technical education, 9.3
Technology New Zealand (funding scheme), 15.1
Telarc New Zealand, 15.2
Telecom Corporation of NZ, 11.2
Telecommunications Users Association of NZ Inc. (TUANZ), 11.4
telecommunications, 11.2
telegrams, 11.3
telephone services, 11.2
residential charges, international comparison, 11.2
Television New Zealand, 11.1
television, 11.1
cable, 11.1
local content, 11.1
overseas ownership of, and overseas programmes, 11.1
regional, 11.1
sets in households, 6.1
top 20 programmes in 1997, 11.1
temperatures 1997 see also weather, 1.3
Tenancy Tribunal, 22.2
terms of trade index, 25.6
Terralink NZ Ltd, 16.1
territorial authorities, 3.4
council members, 3.4
finances, 28.4
population of, 5.2
territories, NZ
Ross Dependency, 1.1, 4.3,
Tokelau, 1.1, 4.3
textiles (see also wool), 21
The Correspondence School, 9.2, 9.3
timber and forest products, 19.2
exports of, 19.2, 25.2
imports of, 19.2
pulp and paper, 19.2
roundwood, sawn timber, 19.2
timber preservation, 19.2
time zone, NZ and Chathams, 1.5
Tiriti o Waitangi, Te, (Treaty of Waitangi), 3.1, 6.3, 6.4, 16.1
Office of Treaty Settlements, 6.4
Whakatohea settlement, 6.4
tobacco consumption, 8.3
Tokelau, 1.1, 4.3
TOP (Training Opportunities Programme), 14.3
topdressing, 18.1, 23.2
Totalisator Agency Board (TAB), 13.1
Tourism Board, NZ, 13.2
and Sport, Office of, 13.2
tourism, 13.2
accommodation, 13.2
and the environment, 13.2
attractions, 13.2
conferences, 13.2
events, 13.2
impacts (social, environmental), 13.2
international, 13.2
inward visitor numbers, 13.2
Māori, 13.2
NZers travelling overseas, 13.2
organisations, 13.2
promotion, 13.2
transport, 13.2
visitor expenditure, 13.2
visitor residences, 13.2
town milk supply, 18.5
town planning, 16.2
tractors, registration, 23.4
Trackside TV, 11.1
Trade Development Board (Trade NZ), NZ, 25.1, 25.4
Trade Standards Service, 24.1
trade
domestic see retail trade
export, global overview 1997, 25.4
external see overseas trade
retail, 24.4
marks, 15.2
practices, 24.1
representatives overseas, 4.1, 25.1
routes, maritime, 23.1
training, 9.3
unions, 14.5
Trade NZ (NZ Trade Development Board), 25.1, 25.4
overseas posts (map), 4.1
trading banks, see registered banks
controls on, 24.1
legislation, 27.1
trading partners, major, 25.4
traditional sites, protection of, 12.2
Police Infringement Bureau, 23.4
traffic
accidents, 8.5
convictions and sentencing, 10.2
speed, 23.4
offences, 10.2, 10.3, 23.4
convictions and sentencing, 10.2
speed, 23.4
training benefit, 7.1
for employment, 14.3
training, vocational, 9.1
tramping and mountaineering, 13.1
Transfund New Zealand, 23.4
Transit New Zealand, 23.4
transitional retirement benefit see benefits
Transport Accident Investigation Commission, 23
Ministry of, 3.3, 23
transport (see also Land Transport Safety Authority), 23.3
air, 23.2
CPI, 26.1
household, 6.1
rail, 23.3
reform of industry, 23
road, 23.4
school, 9.1
sea, 23.1
services environmental impact, 23.1
tourist, 13.2
travel to work, 23.4
use by tourists, 13.2
Tranz Rail, 23.3
travel overseas by NZers, 13.2
to work (1996 Census), 23.4
Treasury, The, 3.3, 28.1
treaties
defence agreements, 4.4
trade agreements, 4.1, 4.2, 16.2, 18.1, 21
Treaty of Waitangi (Tiriti o Waitangi), 3.1, 6.3, 6.4, 16.1
Office of Treaty Settlements, 6.4
Whakatohea settlement, 6.4
Treaty Settlements, Office of, 6.4
tribunals
Complaints Review, 10.1
Disputes, 10.1
Employment, 10.1
Land Valuation, 16.2
Planning, 10.1
Residential Tenancies, 10.1
Waitangi, 6.4, 10.1
Trustees of the National Library, 12.4
TUANZ (Telecommunications Users Association of NZ), 11.4
Turnbull Library, 12.4
TV3, 11.1
TWI (TradeWeighted Index), 27.2

U

UN (United Nations), 4.2
UN Commission for Sustainable Development (CSD), 16.2
Commission for the Environment and Development (UNCED), 16.2
Convention on Discrimination Against Women (CEDAW), NZer on committee, 4.2, 6.3
Convention on the Rights of the Child, 6.3
Decade for World's Indigenous People, 4.2
Framework Convention on Climate Change (UNFCCC), 16.2
peacekeeping operations, 4.4
World Conference on Women, Beijing, 6.3
UNCED (UN Commission for the Environment and Development), Rio Declaration, Agenda 21, 16.2, 21
understanding international affairs, 4.1
unemployment (see also labour force)
unemployment benefit see benefits
changes in and rate of, 14.2, 17.6
duration, 14.2
ethnicity and age of, 14.2
OECD comparisons, 14.3
school qualifications and, 14.2
UNESCO (UN Educational, Scientific and Cultural Organisation), 4.2, 9.3
UNFCC (UN Framework Convention on Climate Change), 16.2
union membership, 14.5
unions, of employers, 14.5
of workers, 14.5
unitary authorities, 3.4
United Kingdom, trade with, 25.4
United Nations (UN), 4.1, 4.2
United Nations (UN) specialised agencies, see also FAO, ILO, IMO, UNCTAD, UNESCO, WHO, WIPO, 4.2, 4.4
United Nations Education, Scientific and Cultural Organisation (UNESCO), 4.2
United Nations, NZ contribution to, 4.2
membership of, 4.2, 4.4
NZ commitment to peacekeeping forces, map, 4.1, 4.2, 4.4
United States, relations with, 4.1, 25.4
Universal Postal Union (UPU), NZ membership, 11.3
universities, 9.1, 9.3
continuing education, 9.3
degrees awarded, 9.3
enrolments, 9.3
entrance exams, 9.2
scholarships and bursaries to, 9.2
science research, 15.1
staff numbers, 9.2, 9.3
students, 9.2
unpaid work, 14.1
unsupported child benefit see benefits
urban areas (see also cities and city councils), 5.2
population of, 5.2
urbanisation, worldwide, 5.2
USA, foreign currency credit ratings of NZ, 20.3

V

vaccinations, 8.2, 8.3
Valuation New Zealand, 3.3, 16.1, 22.1
valuation of land, 16.1
Valuers Registration Board, 16.1
VASS (Voluntary Agencies Support Scheme), 4.1
vegetables, 18.7, 25.4
vegetation and wildlife, 1.4
Vehicle Inspection Certificates (VIC), 23.4
Vehicle Testing NZ Ltd, 23.4
velvet, deer, 25.2
venison exports, 18.3
veterans pension see benefits
Vice-Regal representatives, 3.1
Victim Support, 10.2
victims, national survey, 10.1
video recordings, classification and censorship of, 10.3, 12.2
violent offences, convictions for, 10.2
visas and passports for entry to NZ, 6.3
Visits and Ceremonial office, 3.3
vital statistics (see also births and birth rates, deaths and death rates, marriage)
summary (1885-1997), 5.3
viticulture, 18.7
vocational qualifications, 9.3
Vogel House, Lower Hutt, 3.3
volcanic hazards, 1.2
volcanoes, eruptions since 1846, 1.2
Ruapehu in 1995-1997, 1.2
Taupo Zone, 1.2
volume indexes of overseas trade, 25.5
voluntary welfare organisations, 8.3
Volunteer Service Abroad (VSA), 4.1
volunteers abroad (VSA) (in Africa, Asia, the Pacific), 4.1
voting, see elections
VSA (Volunteer Service Abroad), 4.1

W

wages, 14.4
indexes, 14.4
minimum rates, 14.5
Waikato River, 16.2
Waitangi National Trust Board, 16.3
Tribunal, 6.4, 10.1
claims process, 6.4
Treaty of see Treaty of Waitangi
walking and walkways, 13.1
wananga, 9.2, 9.3
war graves and memorials, care of, 3.3
pensions and allowances see benefits, 7.1
wardens, Māori, 6.4
Warrant of Fitness see Vehicle Inspection Certificate (VIC)
waste and management of, 3.4, 16.2
water, accidents, 8.5
pollution, 16.2, 23.1
fluoridation of, 8.3
resources, 16.2
fluoridation of, 8.3
quality, 16.2
fluoridation of, 8.3
supply, 16.2
fluoridation of, 8.3
water and soil management, 16.2
WCO (World Customs Organisation), 21, 25.1
WEA (New Zealand Workers Educational Association), 9.3
weather 1997, 1.3
floods, storms, 1.3
rainfall records, 1.3
snow and hail, 1.3
southern oscillation and El Niño, 1.3
sunshine, temperatures, 1.3
weights and measures, 24.1, last page
welfare organisations, voluntary, 8.3
Whakatohea settlement, 6.4
Whale Sanctuary, Southern Ocean, 16.3
Whaling, International Commission (IWC), NZ involvement, 4.2, 16.3
wheat, 18.7
WHO (World Health Organisation), 4.2
widows benefit see benefits
wildlife, 1.4
reserves, 16.3
wind, 1.3
for energy, 20.6
wine
exports, 25.4
production, 18.7
Winebox Inquiry, 3.2, 24.2
Winston Churchill Memorial Trust fellowships, 4.2
WIPO (World Intellectual Property Organisation), 15.2
Women, National Council of, 6.3
women
childcare survey, 6.3
Convention on Discrimination Against, 6.3
4th United Nations World Conference on, 6.3
health of, 8.3
in local government, 3.4
in politics, 3.2
in the labour force, 14.1
in the public service, 6.3
income, 6.3
Māori Women's Welfare League, 6.4
Ministry of Women's Affairs, 3.3, 6.3
MPs, 3.2
numbers, 5.4
ratio in population, 5.4
rights issues, 6.3
sporting highlights 1997, 13.1
time use survey, 6.3
training and employment, 14.3
Women's Affairs, Ministry of, 3.3, 6.3
Refuge, 7.2
Welfare League, Māori, 6.4
wood, see timber and forest products
wool, 18.4
exports, 18.4, 25.2
markets, 18.4
prices, 18.4
production, 18.4
research (WRONZ), 18.4
Wools of New Zealand, 18.4
work
full-time and part-time, 14.1
stoppages, 14.5
unremunerated, 14.1
working conditions (see also occupational safety and health), 14.5
hours, 14.5
World Bank, 4.2
Conference on Women, Beijing, 6.3, 14.1
Health Organisation (WHO), 4.2
Intellectual Property Organisation (WIPO), 15.2
Trade Organisation (WTO), 4.2, 18.1, 21
world heritage areas, 16.3
World's Indigenous People, UN Decade for, 4.2
wrecks, 23.1
WRONZ (Wool Research Organisation of NZ), 18.4
WTO (World Trade Organisation), 4.2, 18.1, 21
MAF involvement in, 18.1

Y

Youth Affairs, Ministry of, 3.3, 6.3, 13.1, 14.3
Aid (Police), 10.4
Court, 10.1
Education Service, police, 10.4
Parliament, 3.2, 6.3
Programme, Commonwealth, 13.1
Service Corps, 14.3
youth benefit, independent, 7.1
justice residences, 7.2
justice services (CYPFS), 7.2
programmes, see community welfare services rights issues, 6.3
travel and exchange with Japan, 9.2

Z

Zespri, 18.7

Special articles 1998

The items in this index are also included in the main index

A

abortion, 8.3
AIDS, 8.3
Antarctic
science, 15.2
environment, 16.3

B

biodiversity, 1.4, 16.3
buildings, environment issues, 22.3

C

cartoons, NZ, collecting, 12.4
Census on the Web, 5.1
cinema attendance, 12.2
citizens initiated referenda petitions, 1997, 3.2
climate change, special debate on, 3.2
Community Boards, 3.4
corruption, 24.4

D

Disability Survey, 8.3
discharges, industrial, 21

E

ethnicity (1996 census), 5.5
electorates, new, 3.2
endangered species, 1.4
energy
efficiency, 20.6
environmental impacts of, 20.8
Environment Court, 10.1
environment
tourism and, 13.2
impacts of energy, 20.8
MFAT and, 4.2
packaging and, 21
transport and, 23.1
Environmental Risk Management Authority, 16.2
environmental labelling, 24.4
Epitaph (TV series), 11.1

F

film, chronology of features, 12.4
fines, collection of, 10.3
firearms review (Sir Thomas Thorp), 10.3
food banks, 7.2
Forest and Bird Society, Royal, 16.2
fruit, environmentally-safe, 18.7

G

gaming, major activities, 13.1
going green, 21
greenhouse gases, 16.2
Green Home scheme, 22.3

H

heart transplants, 8.4
Human Development Index, 6.1

I

Income Survey, 14.4
indigenous flora and fauna claim, 6.4
Internet shopping in NZ, 24.4

J

Justices of the Peace, 10.1

K

Kaimanawa horses, 16.3

M

Māori descent, 5.4
Māori Option, 3.2
merchant seamen, 4.4
MFAT and the environment, 4.2
Monetary Conditions Index (MCI), 27.1

O

organic products export, 25.4

P

Pacific Development and Conservation Trust, 4.3
packaging and the environment, 21
Parliamentary Counsel Office, 3.2
party expenditure (1996 election), 3.2
press freedom 1997, 11.1
provinces, 3.4
puzzle exports, 25.4

Q

Queen's messages to centenarians, 3.3

R

race relations in 1997, 6.3
referendum, first postal, 3.3
refugees, 6.3
Residual Health Management Unit, 28.1
robots in NZ, 21

S

same sex marriage, 6.2
Society of Authors (PEN), 12.4
Speakers of the House of Representatives, 3.2
sport
1997 highlights, 13.1
betting, 13.1
NZ Olympic golds, 13.1
suburban amenity values, preservation of, 3.3
superannuation record, 7.1

T

transport, environmental impact of, 23.1

U

union membership, 14.5

V

victims, national survey, 10.1
Visits and Ceremonial Office, 3.3

W

waste, 3.4, 16.2
water quality, 16.2
Women's Refuge, 7.2

Appendix A. Weights and measures

All the statistics in this volume are in metric (SI) units, except for ship tonnages (not cargo).

Metric To ImperialMetric Multiples
Length
     1 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.)
= 1.09 yards (yds)
1 kilometre (km)= 1,000 metres (m)
     1 kilometre (km)= 0.62 miles 
Area
     1 square metre (m2)= 10.76 square feet
(sq. ft)
1 hectare (ha)= 10,000 square metres (m2)
 = 1.20 square yards
(sq. yd)
1 square kilometre
(km2)
= 100 hectares (ha)
     1 hectare (ha)= 2.47 acres
     1 square kilometre
(km2)
= 247 acres
 = 0.39 square miles
Volume and capacity
     1 cubic centimetre
(cm3)
= 0.06 cubic inches
(cu. in.)
1 cubic metre (m3)= 10,000,000 cubic
centimetres (cc)
     1 cubic metre (m3)= 35.31 cubic feet
(cu. ft)
1 litre (1)= 1,000 millilitres (ml)
 = 1.31 cubic yards
(cu. yds)
1 millilitre (ml)= 1 cubic centimetre (cc)
     1 litre (1)= 1.76 pints1 cubic metre (m3)= 1,000 litres (1)
 = 0.22 gallons
Mass (weight)
     1 gram (g)= 0.04 ounces (oz)
     1 kilogram (kg)= 2.20 pounds (lb)1 kilogram (kg)= 1,000 grams (g)
     1 tonne (t)= 2,204.62 pounds (lb)1 tonne (t)= 1,000 kilograms (kg)
 = 0.98 tons
Velocity
     1 kilometre per hour
(km.h)
= 0.62 miles per hour (mph)
Pressure
     1 kilopascal (kPa)= 0.15 pounds per
square inch (psi)
1 megapascal (MPa)= 1,000 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 hour (kWh)= 3.6 megajoules (MJ)
  1 gigajoule (GJ)= 1,000 megajoules (MJ)
  1 terajoule (TJ)= 1,000 gigajoules (W)
  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)